ZURICH Reuters) – Zurich Insurance Group said on Wednesday its third-quarter operating profit will be hit by a $550 million pretax charge as the company strengthens claims provisions for its German businesses and writes off some deferred costs to acquire new business.
“Zurich’s leadership is disappointed with this significant financial adjustment and has taken the necessary steps including engaging external experts to validate the remediation actions being taken in Germany,” the insurer said. The estimated after tax write-down is $390 million.
The Swiss insurer said its other businesses continue to deliver as expected and that it was progressing well towards its strategic targets.
Full earnings for the quarter are due on Nov. 15.
(Reporting by Katharina Bart; Editing by David Holmes)