Zurich’s 2006 profit increases 41%

Zurich Financial Services Group reported a US$4.5-billion profit in 2006, an increase of 41% over the company’s 2005 results.

Zurich’s combined operating ratio of 94.2% represented a 6.6% improvement over 2005.

General insurance gross written premiums and policy fees earned US$34.2 billion, and the underlying result increased by US$1.9 billion, or 1.1%, after excluding the effects of the extreme catastrophes in 2005 and prior-years reserve movements in both years, says a Zurich statement.

“In addition, through the use of refined market segmentation techniques and strict catastrophe accumulation management, the group considerably improved the quality of its book of business,” the company said in a statement.

“I am delighted with Zurich’s performance,” said Zurich CEO James J. Schiro. “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.”

In 2006, Zurich invested approximately US$250 million in bolstering its technology, knowledge enhancing and distribution capabilities, with the expectation of direct benefits in 2007.

“Furthermore, a number of significant growth initiatives under the Zurich Way concentrate on increasing the efficiency of distribution channels, adopting a rigorous approach to product development and better understanding and responding to customer needs.”