NU Online News Service, Feb. 11, 8:57 a.m. EST
Catastrophes ate into Zurich Financial Services Group's earnings, as the company reported net income decreased 13 percent from the prior year.
The Zurich, Switzerland-based insurer reported net income of $3.4 billion, a decrease of $529 million from the previous year.
The company said the results were affected by "an above-average frequency of significant loss events, exceeding last year's total incurred losses from such events by over $600 million."
In a statement, Martin Senn, Zurich's chief executive officer, said the company's diversified portfolio generated strong cash flows and allowed Zurich to perform well "in a challenging environment."
The company announced a six percent increase in its dividend payment of Swiss Franc 17 ($17.53) per share.
Among some of the company's highlights:
• General insurance operating profit declined 23 percent, or $790 million, to $2.7 billion. Gross written premiums were down three percent, or $1.1 billion, to $33 billion. The decrease was the result of an increase in frequency in loss events and lower investment income. Chile earthquake losses are estimated at $175 million, and floods in Australia accounted for $100 million. The combined ratio rose 1.1 points to 97.9.
• Farmers Management Services, which Zurich manages but does not own, grew its operating profit by eight percent, or $132 million, to $1.7 billion for the year. The results were helped by contributions from auto insurer 21st Century, which the company acquired from American International Group in 2009.
• Global life produced a profit of $1.4 billion, up one percent or $3 million. Gross written premiums rose six percent, or $1.6 billion, to $27 billion.
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