Profit up at Zurich Insurance in first nine months

Zurich Insurance Group has reported a business operating profit of $3.8 billion, for the nine months ended Sept. 30, up 7% over the same period last year.

Net income attributable to shareholders also rose 3% to $3 billion for the first nine months. All figures are in U.S. dollars.

For the third quarter of the year, the insurer reported a BOP of $1.2 billion, down 6% compared with prior year quarter. Net income attributable to shareholders for the quarter was $928 million, down 16% over the same period of 2013.

The combined ratio for the first nine months was 96.6%, an improvement of 1.2 percentage points compared with 2013.

“Overall, this is a solid set of results,” chief financial officer George Quinn said in a statement Thursday.

“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,” he noted.

“We continue to optimize our portfolio, taking action on underpriced risks, and to prioritize 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.”

In General Insurance, BOP was $2.4 billion, 12% higher than in the prior year period, due to an improved underwriting result. Gross written premiums for the first nine months were 1% higher at $28.4 billion, compared with the same period of 2013.

“The accident year loss ratio improved 1.8 percentage points compared with the prior year reflecting the benefit of improved underlying loss experience across most of General Insurance as well as reduced levels of catastrophes, weather-related and large industrial losses compared with the same period in 2013,” the insurer noted.

“These improvements have been partially offset by a lower level of prior year reserve releases.”

The Global Life segment recorded a BOP of $965 million, slightly below the prior year period. Gross written premiums, policy fees and insurance deposits increased by to $21.3 billion, or by 9%.

For its Farmers business, BOP increased slightly to %1.2 billion from the prior year.