Zurich profit slides 75%
Zurich Financial Services has reported a 75% slump in first-quarter profit of $US362 million ($480 million), driven largely by a $US1 billion ($1.3 billion) writedown in group investments.
The result was well down on the $US1.43 billion ($1.9 billion) profit Zurich earned during the opening quarter last year.
General insurance gross written premium declined 12% to $US9.8 billion ($13 billion) during the quarter, against $US11.2 billion ($13 billion) in the prior equivalent period. The combined ratio deteriorated more than one percentage point to 95.8%.
Business operating profit from general insurance operations declined 25% to $US889 million ($1.2 billion).
Net realised investment losses and impairments of $US1 billion included $500 million ($664 million) in equity writedowns, as overall net investment income declined 62% to $US816 million ($1.1 billion).
CEO James Schiro says the company is strategically placed to ride out the worst of the downturn.
“Though we anticipate 2009 to remain challenging, I am pleased with our ability to maintain our strong solvency ratio and add to shareholders’ surplus while capitalising on market opportunities.”
The result was well down on the $US1.43 billion ($1.9 billion) profit Zurich earned during the opening quarter last year.
General insurance gross written premium declined 12% to $US9.8 billion ($13 billion) during the quarter, against $US11.2 billion ($13 billion) in the prior equivalent period. The combined ratio deteriorated more than one percentage point to 95.8%.
Business operating profit from general insurance operations declined 25% to $US889 million ($1.2 billion).
Net realised investment losses and impairments of $US1 billion included $500 million ($664 million) in equity writedowns, as overall net investment income declined 62% to $US816 million ($1.1 billion).
CEO James Schiro says the company is strategically placed to ride out the worst of the downturn.
“Though we anticipate 2009 to remain challenging, I am pleased with our ability to maintain our strong solvency ratio and add to shareholders’ surplus while capitalising on market opportunities.”