Swiss-based global insurer Zurich Financial Services has reported strong results for 2004 with a net income of $US2.59 billion – a rise of 29% over 2003. The improved return comes despite an unexpectedly high $US1.1 billion in reserve charges in the fourth quarter.

The reserves boost – mainly due to extraordinary catastrophes like four large US hurricanes and the Asian tsunami – resulted in Standard & Poor’s placing Zurich’s “A+” on creditwatch with negative implications.

CEO James Schiro says the 29% increase in net income reflects Zurich’s “well diversified portfolio and the strong underlying profitability of our businesses”.

He says operations in general insurance were strong in all regions, with excellent underwriting results in particular in Europe, the UK and other international businesses.

“I am particularly pleased with the ongoing improvements of our life insurance operations,” he added. He had reason to be pleased – the life business profit rose 17% to $US873 million.