Zurich posts 3% increase in 2008 Q1 results

Zurich Financial Services Group reported a 2008 Q1 net income of US$1.4 billion, an increase of 3% over its 2007 Q1 results.

The general insurance unit of the company saw a 10% increase in gross written premiums and policy fees — from US$10.2 billion to US$11.2 billion for the quarter — “reflecting both organic growth, as well as increased premium volumes through bolt-on acquisitions, mainly in Europe,”the company reported in a release.

The unit’s combined ratio increased 1.3 points, from 93.3% to 94.6%, and its reported loss ratio remained relatively flat, moving from 69.4% in 2007 Q1 to 69.9% in 2008 Q1.

In its North American commercial operations, the combined ratio increased from 91.9% to 95.8%. The company cites “the application of enhanced segmentation techniques and the proactive targeting of profitable lines of business” for the company’s success in managing market conditions.

“In the face of today’s market challenges, I am proud of our ability to stay focused on our strategy and drive such strong results,” remarked Zurich CEO James J. Schiro. “Going forward, I am confident we will continue to execute on our dual focus of profitable growth and operational transformation, turning these challenging times into opportunities for the creation of long-term shareholder value.”