Is investment guru Warren Buffet planning to add Zurich Financial Services to his extensive insurance and reinsurance holdings? The signs are pretty good that he might do just that.

A large parcel of more than 7.6 million Zurich shares – about 5% of the group’s stock – changed hands last week, with dealers immediately linking the buy with Mr Buffett’s recent comment that insurers are “on my radar screen”.

Mr Buffett told Swiss newspaper Finanz und Wirtschaft he’s confident Berkshire Hathaway can conclude several large takeovers soon.

Zurich CEO James Schiro has declined to comment, telling reporters after the group’s AGM last week that a rise in claims and only modest premium growth has not stopped a record first-quarter profit of $US1.7 billion ($2.06 billion).

Net income rose 71% to $US1.4 billion ($1.7 billion) in the three months to March, with strong growth in Zurich’s general insurance markets, particularly Europe, fuelling the company’s result.

Written premiums increased 4% to $US10.2 billion ($12.4 billion), but claims and other expenses sapped $US4.8 billion ($5.83 billion) from Zurich’s coffers – up $US200,000 ($234,000).

Zurich’s European general insurance business was the star performer, achieving a 31% rise in first-quarter profit to $US479 million ($582 million) despite absorbing a $US152 million ($184 million) hit from the winter storm Kyrill.