Dynamic Wealth Management Headlines: Zurich Financial Services profits up 20% in first half

http://dynamicwealthmanagement-data.com/2011/08/dynamic-wealth-management-headlines-zurich-financial-services-profits-up-20-in-first-half/

ZURICH—Zurich Financial Services Ltd.’s profit climbed to $1.97 billion during the six months ended June 30, an increase of 20% compared with the same period of 2010, the Swiss insurer reported Thursday.

Although Zurich suffered catastrophe-related losses during the first six months of this year, it benefited from a gain of $441 million before tax on the sale of shares in Beijing-based New China Life Insurance Co. Ltd. Zurich said it reduced its stake in the Beijing-based life insurer to 15% from 20% in February.

Zurich’s gross written general insurance premiums and policy fees rose 5% to $18.88 billion during the first six months of 2011, compared with the same period last year. In its global life unit, premiums and policy fees gained 1% year over year to $13.11 billion in the first half. Meanwhile Zurich’s Farmers Management Services unit saw revenues fall 2% year over year to $1.34 billion between January and June.

Catastrophe losses

During the first three months of the year, earthquakes in Japan and New Zealand and weather events in Australia resulted in losses for Zurich’s general insurance unit totaling more than $500 million. In the second quarter, events in the U.S. such as multiple tornadoes and hail storms led to losses of $200 million, while aftershocks from the New Zealand earthquake also contributed another $80 million of hits. The general insurance unit’s combined ratio worsened to 99.3% in the first half from 98% during the same period 2010.

But Zurich’s combined ratio improved by 1.6% to 95.3% in the second quarter compared with the same period in 2010.

“We continue to focus on our pricing and portfolio discipline,” Zurich CEO Martin Senn said in a statement Thursday.

Zurich’s net investment result on group investments rose to $4.22 billion in the first half, up 6% from the same period last year. During the first half of 2010, Zurich’s profit had slipped after losses related to global weather and the Chile earthquake.