Zurich reports 2006 profit of US$4.5 billion

Zurich Financial Services Group reported a net income of US$4.5 billion, an increase of 41% for the year 2006.
General insurance gross written premiums and policy fees earned US$34.2 billion, with a combined operating ratio of 94.2%, an improvement of 6.6% over 2005.
The underlying result increased by US$1.9 billion, or 1.1%, after excluding the effects of the extreme catastrophes in 2005 and prior-years reserve movements in both years, says a Zurich statement.
“In addition, through the use of refined market segmentation techniques and strict catastrophe accumulation management the Group considerably improved the quality of its book of business,” says a Zurich release.
“I am delighted with Zurich’s performance,” James J. Schiro, CEO of Zurich, said in a statement.
“The results highlight our ability to generate strong underlying earnings growth across our well-balanced and diversified book of business while maintaining financial strength and operational discipline.”
In 2006, Zurich invested approximately US$250 million in bolstering its technology, knowledge enhancing and distribution capabilities, with the expectation of direct benefits in 2007.
“Furthermore, a number of significant growth initiatives under the Zurich Way concentrate on increasing the efficiency of distribution channels, adopting a rigorous approach to product development and better understanding and responding to customer needs.”