Zurich reports 2012 profit of $4.1 billion

Global insurer Zurich has posted a business operating profit of $4.1 billion and a net income (after tax, attributable to shareholders) of $3.9 billion for 2012, though its last quarter of the year wasn’t as strong as 2011.

For the fourth quarter of the year, Zurich reported a profit of $569 million, down from $985 million in the same quarter of 2011. All figures are in U.S. currency.

“We delivered a solid performance in 2012, a year characterized by ongoing economic challenges,” the company’s CEO Martin Senn commented in a statement on the year-end results.

“The integration of our acquired insurance businesses in Latin America and Malaysia is progressing well and contributing meaningfully to growth as evidenced in the strong contribution to profitability from these areas,” he noted. “In addition, during 2012, we expanded our bank distribution agreements through alliances in the Middle East, Italy, Spain and Indonesia.”

The underlying loss ratio for its General Insurance business was 61.4% at year end. Gross written premiums and policy fees for General Insurance reached approximately $35.6 billion for the year, with its profit of nearly $2.1 billion down 7% over the previous year. The segment’s combined ratio for 2012 was 98.4%.

“The overall performance was impacted by above average levels of catastrophe, large and weather-related losses, including Storm Sandy as well as the previously announced financial adjustments in Germany,” Zurich’s statement noted.

“We continue to execute our proven strategy, growing our business in emerging markets while delivering a resilient performance in mature markets,” Senn said, adding that the company is well-positioned to continue its profitability in 2013.