Zurich’s global general insurance business suffered a 23% slump in profits to $US2.7 billion ($2.69 billion) for the year ending December 31.

Global general insurance gross written premium (GWP) was $US33 billion ($32.9 billion), down 3% on the previous 12 months. 

Global CEO Martin Senn says the decrease was due to the higher number of catastrophe-related claims during the year.

“Rate increases and targeted underwriting actions implemented in previous periods contributed to improvements in the underlying loss ratio,” he said.

“These improvements were more than offset by the higher level of event and weather-related losses.

“These included the earthquake in Chile for which estimated pre-tax losses were revised downwards to $US175 million ($174.5 million) and the floods in Australia, with estimated pre-tax losses for 2010 of $US100 million ($99.7 million).”

Major catastrophe claims for the year were $US870 million ($867.3 million), up from $552 million ($550.4 million) in the previous financial year.

The global economic slowdown has also resulted in lower volumes of premium renewals.

The Australian business is included in Zurich’s Asia-Pacific Mature Markets division, which reported GWP of $US1.2 billion ($1.19 billion) compared to $1 billion ($997 million) in 2009.

Profits in the insurer’s global life business were flat at $US1.4 billion ($1.39 billion), but GWP was up 6% to $US27.6 billion ($27.5 billion).

Overall Zurich reported a 13% drop in operating profit to $US4.9 billon ($4.88 billion) on gross revenues of $US67.7 billion ($67.5 billion), down 3% on 2009.