Zurich Insurance Group First-Quarter Net Income $607 Million -- Update
May 11 2017 - 5:12AM
Dow Jones News
By Brian Blackstone
ZURICH--Zurich Insurance Group AG (ZURN.EB) said its profit fell
in the first quarter compared with a year earlier due to a change
in how claims are calculated in the U.K., but added that an
improved economic outlook could help the company's prospects for
the rest of the year.
The Swiss insurer said net income fell to $607 million in the
first quarter from $875 million a year earlier.
Business operating profit was $928 million last quarter, down
13% on the year. However, this was affected by a change in the way
the U.K. calculates personal injury and accident claims. The
change, known as the Ogden rate, resulted in a hit to first-quarter
operating profit of $289 million.
Excluding that effect, business operating profit was $1.2
billion, up 14% from one year earlier.
"Underwriting performance is improving and we have delivered
another absolute reduction in expenses," said Chief Financial
Officer George Quinn.
Analysts at Vontobel said the first-quarter results signal "a
solid start to the year" after the one-off effect of the Ogden
rate. Zurich shares were down 0.8% at 0826 GMT.
"The stronger economic environment is also delivering a better
than expected investment performance and, given the cautious
position that we took last year, could positively influence the
rest of this year," Mr. Quinn added.
Write to Brian Blackstone at brian.blackstone@wsj.com
(END) Dow Jones Newswires
May 11, 2017 04:57 ET (08:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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