Zurich Financial Services will book a $325 million first-quarter charge to cover the cost of settling allegations of bid-rigging and other broker compensation wrongdoing with 12 states.
The company last week announced additional settlement agreements with New York, Connecticut and Illinois state officials that will see it pay $153 million for restitution to excess casualty policyholders, as well as penalties.
The agreement prohibits Zurich from paying contingent commissions on excess U.S. casualty business through 2008 and establishes a mechanism whereby the company would stop paying contingency fees on other lines of business if 65 percent of the U.S. market for a particular line of business is not paying such commissions.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
