Zurich Financial Services (ZFS) reported gross written premiums of $20.6bn for the 2004 half year, up 6% on the first half of 2003, while the combined ratio improved slightly from 98.8% in 2003 to 96.7% for 2004.
Gross written premiums and policy fees for the group rose slightly from $25.9bn in 2003, to $26.4bn for 2004.
The insurer reported a net income of $1,4bn for the group in the first half of 2004 compared to $752m in the same period in 2003.
Zurich said its strong results were supported by a “significant improvement” in the general insurance underwriting result.
ZFS said a mixture of rate drove the growth in its general insurance operations and volume increases as well as favourable exchange rate movements.
Net reserves for losses and loss adjustment expenses increased by 4.1% to $38.5bn for general insurance, with prior year reserve strengthening amounting to $656m.
Diluted earnings per share increased from SF7.12 for the first half of 2003 to SF12.67 for the first half of 2004.
ZFS placed its exposure to Hurricane Charley at approximately $150m, net of reinsurance.
Zurich Financial Services chief executive James Schiro, said: “Zurich's recovery continues. Success is coming from the sharp focus on core businesses, financial discipline and sound underwriting.
“While the group exceeded its targeted return on equity, it also further strengthened its balance sheet. Zurich is positioned to leverage its global capacity in order to continue to benefit from attractive markets.
“The markets we are operating in continue to be fragile. We knew that the benign environment we have seen in the last 18 months, which was characterized by the absence of large catastrophes and low claim frequencies, would not continue forever.
“Now hurricane Charley has reminded us of this point rather painfully.”
Schiro added: “Our commitment to operational and financial discipline is unwavering. We are not prepared to chase prices down below a technically sound level. On the contrary, we will consistently aim for underwriting profitability over growth.”
