Zurich’s UK division decision to ramp up motor rates helps pull underwriting back into profit
Global insurance group Zurich’s UK general insurance division made a business operating profit of $200m for the full year of 2010, down 13% on the $229m it made in 2009.
Zurich’s UK general insurance gross written premiums fell 12% to $2.8bn in 2010 from $3.2bn in 2009.
However, the division’s underwriting performance improved in a year when it hiked up private motor rates around 20%.
It made a net underwriting profit of $9m in 2010 compared with a net underwriting loss of 2m the previous year. Zurich’s UK general insurance combined ratio improved to a profitable 99.7% from an almost breakeven 100.1%.
Globally, Zurich’s general insurance business’s operating profit fell 23% to $2.7bn from $3.5bn. The global combined ratio deteriorated by 1.1 points to 97.9% from 96.8%.
The company attributed the profitability slump to an above-average frequency of loss events, such as earthquakes and weather-related losses, as well as lower investment income.
Zurich puts its pre-tax losses from the Chilean earthquake at $175m and from Australian flooding at $100m.
Global general insurance premiums fell 3% to $33.1bn from $34.2bn.
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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