Combined ratio improves 2.7 points to 97%
Zurich’s UK general insurance business made an operating profit of $256m (£163m) in 2011, up 28% on the $200m it made in 2010.
The combined ratio improved 2.7 percentage points to 97% (2010: 99.7%). A big driver of the combined ratio improvement was a 3.9 percentage-point drop in the loss ratio to 69.2%.
The UK general insurance net underwriting result improved sharply to $79m in 2011 from just $9m in 2010.
The improvements follow Zurich’s efforts to re-price business in the UK, particularly motor. The company’s more selective underwriting can be seen in the 1.6% reduction in gross written premiums and policy fees to $2.76bn (2010: $2.80bn).
Despite the improvements in the UK, Zurich’s group-wide general insurance result deteriorated in 2011. The general insurance operating profit dropped 15% to $2.3bn (2010: $2.7bn), while the combined ratio increased 0.9 points to 98.8% (2010: 97.9%).
Zurich attributed the drop to the large number of global weather-related catastrophes in 2011, which resulted in a $1bn claims bill for the insurer.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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