Higher premiums are slowly bringing the European insurance market back to profitability. Zurich Financial Services has reported a $1.9 billion profit for the first nine months of 2003, compared with a $3.8 billion loss in the corresponding period last year. CEO James Schiro says the group is now looking forward to “sustainable and profitable growth”, and attributes the turnaround to improved claims and expense management, as well as higher-performing premiums and a modest recovery in global equity markets.

Dutch giant ING – the third-largest European insurer – saw its three-quarters profit rise 22.8% to $1.5 billion. Like Zurich, ING has been concentrating over the past year on boosting its capital base and cutting costs. It has slashed more than 2000 jobs in the past year.

Allianz reported a January-September profit of $691.4 million – an impressive return to profitability following its $1.59 billion loss in the corresponding period last year.