Zurich Insurance Group posted an improved set of results for the first half of 2014 as the company reaped the rewards of streamlining its organisational structure and its delivery on other strategic changes at the company.
The company made a net profit of $2.1 billion for the period, a 14 percent increase compared with the same period the year before. Its operating profit for the period was $2.6 billion, 15 percent more than the year before.
Its gross written premiums and policy fees for the period was stable at $19.9 billion, a 1 percent increase compared with the $19.7 billion it wrote the year before. Its combined ratio was 96.1 percent, an improvement of 2 percentage points.
“I am pleased to report a good set of results for the first half. We have seen clear progress on the execution of our strategy and delivery against our targets,” said Martin Senn, chief executive of Zurich. “While still early in our three year plan, we are on track for our 2014 to 2016 targets.
“We have made good progress against each of our three strategic cornerstones. Much of the groundwork for future investment in priority markets, like introducing better customer segmentation, has been completed.
“We have also made progress in the businesses that we are managing for value, including the sale of the Russian retail business and exit from Zurich-branded aggregator distribution in the UK. And we are pleased to note further positive trends at the Farmers Exchanges, with improved customer satisfaction and agent retention. Finally, our strong cash generation reflects the continued stability of our business and we project that full-year cash remittances will be in excess of $3.5 billion dollars, ahead of 2013.”
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Zurich, Europe, Second Quarter 2014 Results, Martin Senn