By John Letzing
ZURICH--Zurich Insurance Group AG (ZURN.VX) on Thursday reported
a 7% decline in profit for the first quarter, citing a "challenging
economic environment."
However, Chief Executive Martin Senn said in a statement the
insurance giant remains "on track to deliver our 2013 targets."
Zurich said operating profit from general insurance, the
company's biggest business, fell 6% to $807 million in the period.
The company cited "persistent lower yields and less favorable
development of reserves established in prior years."
The general insurance business posted a 2% increase in gross
written premiums and policy fees, to $10.69 billion.
Zurich's business of selling life and pension products saw
operating profit increase 6% to $308 million, thanks to lower
expenses and contributions from Zurich Santander.
Overall, Zurich said net profit fell to $1.06 billion compared
to $1.14 billion in the same period last year. Business operating
profit was down slightly at $1.35 billion.
Analysts had expected a net profit of $1.16 billion.
Zurich posted a return on common shareholders' equity of 12.3%,
compared to 14.4% in the period last year.
Write to John Letzing at john.letzing@wsj.com
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