Zurich Financials 2005 profits soar by 30%

Zurich Financial Services profits for 2005 increased by 30% to reach a net income of $3.2 billion (27.11 Swiss francs per share), as compared to a net income of $2.47 billion (20.83 Swiss francs) in 2004, according to the Switzerland-based insurer.
This profit increase is a result of a small reserve the Company set aside and from gains it achieved in its life business.
In addition, Zurich Financial reports an increase in its dividend to 7 francs from 4 francs in 2004.
The Company anticipated that its profit would rise by approximately 21%, reaching $2.98 billion francs for the year ended Dec. 31, 2005, according to Bloomberg News through their survey of five analysts.
The Company’s CEO James Schiro plans to reserve $500 million throughout 2006 and repeat this in 2007. The dollars saved will stem from cost cuts and improved risk and claims management. During his first three years as CEO, Schiro cut 5,000 jobs and sold $1.3 billion of assets.