(Bloomberg) – Zurich Insurance Group AG fell in Zurichtrading after posting a quarterly profit supported by one-timegains as Chief Executive Officer Mario Greco pressesahead with an overhaul of Switzerland's largest insurer.

Net income for the three months through December amounted to$685 million compared with a loss of $424 million a yearearlier due to restructuring costs and claims from storms inBritain and Ireland, the Zurich-based company said Thursday in astatement.

Greco is stepping up cost cuts as ultra-low interest rates chipaway at investment income and below-average catastrophe claims keepprices for property and casualty insurance on hold. The companysaid it eliminated $300 million in annual spending in 2016.

“We remain skeptical about Zurich's turnaround plans,” ThomasSeidl, an analyst at Bernstein in London, said in a note toclients. “The track record of past cost-cutting exercises is notstrong and the people involved have not changed that much.”

The shares fell as much as 2 percent, the most since November,to 278.10 francs at 10:37 a.m., while the Bloomberg 500 EuropeInsurance Index was up 0.1 percent.

Full-year net income rose 74 percent to $3.2 billion, matchingthe average of 10 analyst estimates compiled by Bloomberg. As lastyear, Zurich proposed a dividend of 17 Swiss francs.

'Turbulent year'

“It was a turbulent year,” Greco said in an interview withBloomberg Television. “Markets were tough. We made lots of changes,but results came out very strong. They give us optimism for '17 andthe next years.”

General insurance recorded an operating profit of $611 million,after a loss of $120 million a year ago. The global corporate unit,under restructuring for more than a year, “has not yet achieved asatisfactory level of profitability, and the focus remains onfurther improvement in the portfolio,” Zurich said.

Related: Zurich creates commercial insurance unit in wideroverhaul

The combined ratio in general insurance was 98.5 percent for thequarter. A measure of more than 100 means the unit is paying outmore in claims and costs than it's collecting in premiums. Zurichsaid in prepared remarks the combined ratio would improve this yearas the company continues cutting costs.

The unit benefited from $34 million in proceeds from a sale ofGerman real estate and $13 million of “favorable” foreign exchangemovements, said Barclays Plc analyst Claudia Gaspari, adding thatthe expense ratio came in higher than expected.

“We downgraded Zurich to sell last month due to concerns aboutits premium valuation, which isn't justified in view of itsconstrained growth prospects,” said Nick Holmes, a Societe Generaleanalyst.

Hurricane claims

Zurich paid out $47 million to cover claims on damages caused by Hurricane Matthew,Chief Financial Officer George Quinn told reporters in Zurich.

Operating profit at the global life unit rose 4.3 percent to$312 million as higher profit in the Asia Pacific region and fromLatin America offset a decline in Europe, the Middle East andAfrica.

“Once again, headwinds mean insurers need to cut more costs— and faster — to stand still,” Gaspari said.

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