Zurich Financial Services has reported record profits and income for 2006, due primarily to the strength of its general insurance segment, robust growth in global life and a solid expansion at Farmers Management Services.
“I am delighted with Zurich's performance. The results highlight our ability to generate strong underlying earnings growth across our well-balanced and diversified book of business while maintaining financial strength and operational discipline,” said James Schiro, Zurich chief executive. “Reflecting our confidence in the sustainability of the group's operating performance, Zurich's Board of Directors has recommended a significant increase of the return to shareholders.”
Zurich reported net income for the twelve months of $4.5bn, an increase of 41%, with a return on equity of 19.0%
Business operating profit was $5.9bn, an increase of 48%, with an operating profit ROE after tax of 18.1%
General Insurance gross written premiums and policy fees hit $34.2bn, an increase of 2%, with a combined ratio of 94.2%, an improvement of 6.6%.
Shareholders' equity rose 18% to $26.5bn, while diluted earnings per share increased 43% to $31.1.
Schiro added: “The proposed dividend positions the Group among the top tier of its peer group. We commit to further create shareholder value by continuing to realize efficiency gains and investing in selective profitable growth opportunities through organic and inorganic means.”
