Profit fall of 40% in Q1 after GI sales and profits tumble
Zurich announced Q1 profits down 40% but said GI prices were rising 4% in the UK and more than 5% in the US.
Financial Highlights (2008 Q1 in brackets)
- Business operating profit $1,061m ($1,764m) down 40%
- Net income attributable to shareholders $362m ($1,427m) down 75%
- General Insurance gross written premiums and policy fees $9,814m ($11,191) down 12%
- Global Life gross written premiums, policy fees and insurance deposits $5,529m ($5,397m) up 2%
- Farmers Management Services management fees and other related revenues $623m ($589m) up 6%
- General Insurance business operating profit $889m ($1,189m) down 25%
- General Insurance combined ratio 95.8% (94.6%)
- Global Life business operating profit $222m ($340m) down 35%
- Farmers business operating profit $324m ($331m) down 2%
- Group investments average invested assets $176,692m (£196,165m) down 10%
Chief executive James Schiro said: “We have shown continual quarter on quarter improvement since the financial crisis began, and remain confident in our strategy despite the ongoing financial turmoil. Though we anticipate 2009 to remain challenging, I am pleased with our ability to maintain our strong solvency ratio and add to shareholders’ surplus while capitalising on market opportunities that emerge.”
Zurich said GI GWP and policy fees overall decreased by 3% in local currencies but renewal prices rose by more than 5% in the US and 4% in the UK.
