Zurich’s profits take a tumble in Q3
Zurich Insurance Group posted a solid set of third quarter results despite its profits dropping 16 percent.
Its profits fell to $928 million in the third quarter of 2014, compared with $1.1 billion in the third quarter of 2013. However, in the first nine months profits grew 3 percent to $3 billion. Its combined ratio improved 2 percent to 96.6 percent.
Zurich’s general insurance division saw business operating profit rise 12 percent to $2.4 billion, driven by an improved underwriting results and partially offset by a lower level of prior year reserve releases.
Its gross written premiums for the nine months to September 30 were 1 percent higher at $28.4 billion compared with the same period of 2013.
Zurich said that general insurance continues to undertake targeted re-underwriting and rate actions on portfolios where returns are not achieving hurdle rates, while investing in growth where there are better opportunities for profit.
“Overall, this is a solid set of results. While we continue to make progress, we recognize the environment is getting tougher, underlining the need for us to remain focused on our strategic approach. We continue to optimise our portfolio, taking action on underpriced risks, and to prioritise investment in the markets and customer segments where we see the most attractive returns. Our very strong financial position gives us the capacity and flexibility to manage in a challenging environment," said chief financial officer George Quinn.
