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Zurich first half dented by storms, floods

Weather-related losses have cut a swathe though Zurich’s first-half results, but the Swiss insurer still managed a respectable 12% rise in operating profit.

Zurich’s general insurance arm, which accounts for more than half of the group’s revenue, posted a meagre 3% rise in operating profit for the first six months of 2007 after winter storm Kyrill and the UK floods wiped $US566 million ($724 million) from earnings.

General insurance posted a profit of $US1.8 billion ($2.3 billion) for the first half as part of Zurich’s $US3.3 billion ($4.2 billion) total operating profit.

Growth in Zurich’s life insurance arm propped up the group’s earnings, with new business value up 51% to $US319 million ($408 million). Life operating profit was up 25% to $US721 million ($924 million).

“These excellent results reflect our ability to successfully leverage a strong balance sheet through disciplined underwriting, targeted growth and operational efficiency, particularly given the current global financial environment,” CEO James Schiro said.