Zurich Insurance's Profit Drops
August 11 2016 - 3:20AM
Dow Jones News
ZURICH—Zurich Insurance Group AG's second-quarter net profit
fell 12% from the same period last year on lower capital gains and
restructuring charges.
The Zurich-based company said net profit fell to $739 million in
the three months to end-June from $840 million in the same period
last year. Analysts had expected a net profit of $673 million for
the period.
Total business volumes, a measure of gross written premiums,
policy fees and other items, rose 7% compared with the year-ago
quarter, to $18.47 billion, Zurich Insurance said.
The company said its total return on investments in the period
was 2%, compared with a negative return of 2.5% in the same quarter
last year.
In March, former Assicurazioni Generali SpA Chief Executive
Mario Greco assumed the chief executive role at Zurich Insurance
after a difficult period for the Swiss insurer under Mr. Greco's
predecessor, Martin Senn.
Mr. Greco, who earlier had been a Zurich Insurance executive,
has pledged to restore "the credibility of the company."
Zurich Insurance's largest business, general insurance, which
the company has sought to revamp, posted a 1% fall in gross written
premiums and policy fees in the first half of the year compared
with the same period last year, to $18.5 billion, the company said
Thursday.
The general insurance business reported a 3% gain in business
operating profit in the first half, compared with the same period
last year, while its combined ratio remained relatively flat at
98.4%. The combined ratio is a measure of how much is paid on
claims and costs for each dollar earned. A ratio of less than 100%
means that an insurance company's underwriting business is
profitable.
Write to John Letzing at john.letzing@wsj.com
(END) Dow Jones Newswires
August 11, 2016 03:05 ET (07:05 GMT)
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