Zurich reports US$1.4 billion profit in Q1

Zurich Financial Services Group reported a net income of US$1.4 billion, an increase of 3% in its 2008 Q1 earnings over 2007 Q1.
The general insurance unit of the company saw a 10% increase in gross written premiums and policy fees, from US$10.2 billion to US$11.2 billion for the quarter, “reflecting both organic growth, as well as increased premium volumes through bolt-on acquisitions, mainly in Europe,” the company reported in a release.
The unit’s combined ratio increased 1.3 points to 94.6% from 93.3%, and its reported loss ratio remained relatively flat, moving from 69.4% in 2007 Q1 to 69.9% in 2008 Q1.
The general insurance’s global corporate sector reported a combined ratio of 97.5%, marking an increase from 2007 Q1’s 92.8%.
In its North American commercial operations, the combined ratio increased from 91.9% to 95.8%. The company cites “the application of enhanced segmentation techniques and the proactive targeting of profitable lines of business” in the company’s success in managing market conditions.
“In the face of today’s market challenges, I am proud of our ability to stay focused on our strategy and drive such strong results,” remarked James J. Schiro, CEO, Zurich. “Going forward, I am confident we will continue to execute on our dual focus of profitable growth and operational transformation, turning these challenging times into opportunities for the creation of long-term shareholder value.”