Swiss insurer Zurich Financial Services (ZFS) announced second quarter net profit rose 88 per cent to $1.3 billion, boosted by the sale of a stake in a Chinese insurance company.
“I am particularly pleased with the second quarter results as our second quarter business operating profit reveals excellent underwriting performance from general insurance where we continue to see further improvements in the underlying loss ratio,” ZFS chief executive officer Martin Senn said.
For the six months to June, the combined first and second quarter net profit came to $2.0 billion, above analyst forecasts for $1.8 billion.
Natural disasters hit earnings, the company said, with tornados in the US costing it around $200 million and an earthquake in New Zealand $80 million.
“Net capital gains on investments and impairments amounted to $561 million,” a statement said, adding this “included negative asset re-valuations, impairments, and active gain realizations in equities.”
Of this sum, “$441 million were due to the previously reported sale of shares in Zurich’s stake in New China Life Insurance Co., Ltd. reducing the Groups participation to 15 per cent from 20 per cent.”
Zurich, Aug 11, 2011 (AFP)
