Swiss insurer Zurich Financial Services said Thursday its net profit fell 24 percent, slightly lower than expected, over the past nine months to 2.2 billion dollars (1.5 billion euros).
Zurich’s Chief Executive Officer James J. Schiro comments: “In this period of ongoing economic uncertainty, our focus remains on maintaining our strong balance sheet, driving operational excellence and delivering sustained profitable growth,”. “By effectively balancing these levers, we have generated excellent quarterly results and ensured that Zurich is well positioned for the future under any economic scenario.”
Nine-month performance highlights2 include:
- Business operating profit (BOP) of USD 4.1 billion, down 3% but an increase of 2% as measured in local currencies, with all core operating segments improving on a local currency basis. Annualized BOP ROE3 after tax of 16.9%
- Net income of USD 2.2 billion, a decrease of 24%. Annualized return on equity (ROE) of 11.6%
- General Insurance gross written premiums and policy fees of USD 26.3 billion, down 10% or 3% in local currencies, and an improved combined ratio of 96.9%
- Global Life new business value4, after tax, of USD 520 million, up 2% or 11% in local currencies. New business margin, after tax (as % of APE), of 21.8%, with APE up 5% or 17% in local currencies
- Farmers Management Services’ management fees and other related revenues up 8% to USD 2.0 billion, with business operating profit also up 8% to USD 992 million
- Shareholders’ equity of USD 28.5 billion, an increase of 29% over year end 2008, boosting the Group’s solvency position to 209%.
The Group continued to exploit emerging opportunities, expanding its product range and distribution capabilities organically as well as through the ongoing successful integration of its recent acquisitions completed in Europe, the U.S. and emerging markets. Furthermore, Zurich continued to transform its operating platforms in ways that improve the effectiveness and efficiency of its business. 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 additional expense saving target of USD 400 million for the current year.
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