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Zurich annual profit falls 47%

Zurich Financial Services has reported a 47% fall in annual net profit to $US3 billion ($4.5 billion), well down on the 2007 net profit of $US5.7 billion ($8.4 billion).

Gross written premium among general insurance lines increased 4% to $US37.2 billion ($55 billion), but the combined ratio worsened more than two percentage points to 98.1%.

Investment earnings of $US5.8 billion ($8.6 billion) put a drag on the bottom line, compared to prior year earnings of $US10 billion ($15 billion).

Zurich CEO James Schiro claims the insurer maintains sound risk and investment strategies when faced with a deteriorating global economy.

“We do not see significant improvements in the economic environment in the near term, but our strong balance sheet, operational capabilities and well balanced portfolio of businesses positions us well to continue executing our strategy,” he said.