Zurich Financial Services has made a spectacular return to profit, exceeding analysts’ forecasts by as much as $300 million to post a first-half profit of $1.07 billion. It was a huge turnaround for CEO James Schiro, who took up the position in May last year. The group made a $5.2 billion full-year loss last year as the European investment market crumbled.

Mr Schiro said he is confident of breaking $1 billion for the full-year, although he intends to continue with his cost-cutting and assets disposal program. His plan to raise as much as $1.5 billion has reportedly been exceeded already.

The only bad news was the $711 million loss recorded by Centre, Zurich’s special unit dealing in complex insurance arrangements for major companies and even other insurers. Mr Schiro said Zurich would strengthen Centre’s reserves by about $700 million.