Zurich Financial Services has released its results for the first nine months of 2006, reporting a 44% rise in net income to $3.3bn, with a return on equity for the period of 19.4%. The group's business operating profit rose some 50% to $4.3bn.
In its general insurance operations, Zurich recorded a combined ratio of 94.8%, an improvement of 6.1% year-on-year. GWP rose marginally to $26.3bn, up 3% on 2005. However, the group did announce a major strengthening of UK asbestos reserves, which rose by $500m in the third quarter.
“Our focus on operational excellence continues to generate profitable growth,” remarked Zurich's chief executive James Schiro. “General Insurance's disciplined portfolio management approach achieved excellent underwriting results, Global Life's new business grew by double digits while increasing its margins, and the Farmers Exchanges demonstrated market-beating growth. Together, these results generated record business operating profit and net income, demonstrating the strength of our diversified portfolio.”
The group appears to be well on track to exceed its initial target of $500m of after tax operational improvements for 2006, as part of “The Zurich Way” programme. Zurich stated in its results that as it develops its new three-year plan, it expects to achieve some $2bn in after tax improvements between 2007 and 2009, with $700m allotted for 2007.
