Zurich Financial Services Group (Zurich) reported today its 26th straight quarter of profitability and its third consecutive quarter-on-quarter profit increase since the financial crisis started in the latter half of 2008.
Business operating profit for the discrete second quarter was USD 1.5 billion, a 41% increase over the previous quarter, while net income1 was USD 892 million, a 147% increase over the previous quarter.
“I am proud of how we have proactively managed our way through this global economic downturn, strengthening our financial position while capitalizing on opportunities,” remarked Zurich’s Chief Executive Officer James J. Schiro. “These results demonstrate our ability to generate consistently strong profitability, and underscore our confidence that we will enter the recovery period from a position of strength.”
Half-year performance highlights2 include:
- Business operating profit (BOP) of USD 2.6 billion, a decrease of 28% from the first six months of 2008. Annualized BOP ROE3 after tax of 16.6%
- Net income of USD 1.3 billion, a decrease of 53% from the first six months of 2008. Annualized return on equity (ROE) of 10.8%
- General Insurance gross written premiums and policy fees of USD 18.2 billion, down 11% or 2% in local currencies, and a basically unchanged combined ratio of 96.2%
- Global Life new business value4, after tax, of USD 332 million, down 3% but up 9% in local currencies. New business margin, after tax (as % of APE), of 21.0%, with APE up 3% or 19% in local currencies
- Farmers Management Services’ management fees and other related revenues up 4% to USD 1.2 billion
- Shareholders’ equity of USD 25.2 billion, an increase of 14% over year end
“We are particularly pleased with our ability to increase shareholders’ equity and strengthen our solvency ratio despite the challenging market conditions,” said Zurich’s Chief Financial Officer Dieter Wemmer.
The company is well on track to meet its operational improvement target under The Zurich Way initiatives of USD 900 million after tax as well as its expense saving target of USD 400 million for the current year. In addition, the company continued to broaden its product range and distribution capabilities organically as well as through entry into new market segments and the ongoing successful integration process of its recent acquisitions completed in Europe, the U.S. and emerging markets.
The full report is available here
