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Zurich profit plummets

Zurich Financial Services has reported a 90% drop in profit for the third quarter due to the financial crisis and an expensive US hurricane season.

Net profit for the quarter fell to $US154 million ($234 million) from nearly $US1.55 billion ($2.35 billion) in the corresponding period last year.

Claims from Hurricanes Gustav and Ike took out another $US595 million ($903 million) during the period.

In the general insurance division, business operating profit for the first nine months declined 7% to $US2.6 billion ($3.95 billion), largely driven by increased losses from large and mid-sized claims, and the impact of lower premium rates.

Zurich’s combined ratio overall also increased by 1.9 percentage points to 98.7% for the first nine months, with Hurricanes Gustav and Ike accounting for 2.4 points.

Zurich’s results were more positive in the policies written for the first nine months. Gross written premium rose 7% to $US29.2 billion ($44.5 billion).

The company attributes this growth to “successfully exploiting organic growth opportunities within attractive market segments” and “through the integration of recent acquisitions”.  

CEO James Schiro says Zurich will see “an improving general insurance environment and continued opportunities across all our businesses” in the future.