Global insurer Zurich Financial Services has published the results of a comprehensive review of its life and general insurance operations, with CEO James Schiro saying the aim is to raise profits and increase growth. The “realignment” marks the second phase of the recovery process Zurich has been working on for the past year.

New initiatives which have now been decided on include a new business model to improve the efficiency of the life insurance business and across-the-board integration of business and service capabilities, with improved processing and delivery systems.

Mr Schiro wants greater profitability to achieve a 12% return on equity, and a re-rating of Zurich to AA in the medium term. The Zurich review has identified four “target market segments” in its general insurance operations. They are:

• The global corporate customer business, which offers cover for international and large domestic risks;
• The consolidation of Zurich’s UK and European operations in personal and commercial lines;
• The US personal lines business will be restructured to capitalise on the strong Farmers brand, which Zurich manages but does not own; and
• US small business – the largest market in the US.

“After having delivered on our promise in 2003, I am confident that we have improved the processes and financial discipline and are creating a culture that will allow us to grow profitably in the future,” Mr Schiro said.

His indication that he wants to retain the group’s US commercial business and its international business and his move away from a focus on selling off operations may provide some comfort to Zurich Australia managers, who have been fending off takeover rumours almost continuously for the past year.