Zurich Insurance Group today reported a business operating profit of $1.4 billion and net income after tax of $1.1 billion for the three months ended March 31, 2012.
"The execution of our strategy continues to be on track. Our acquisitions and alliances have allowed us to deepen our position in several key markets. Last month, we signed a 10 year exclusive distribution agreement to be the provider of wealth insurance products to HSBC clients in the United Arab Emirates, Bahrain and Qatar. In Singapore, we now hold the license to access all of our target segments for life insurance products, while in Malaysia, we have completed the renaming of MAA to the Zurich brand combining the strong local heritage and market position with global insurance expertise. And in Latin America, we already see the positive impact of the insurance businesses acquired from Santander," said Chief Executive Officer Martin Senn.
The Group remains focused on delivering its targets. The underlying loss ratio of General Insurance improved 3.2 percentage points to 62.3% in the first three months of 2012. The business segment showed a strong business operating profit (BOP) also benefiting from the absence of major catastrophes compared with the first three months of last year.
Global Life continued to show strong organic growth of new business value (NBV) in Latin America (before any contribution from Santander) and in April added a key exclusive distribution agreement with HSBC in the Middle East.
Farmers showed strong profit growth in the management services company, while weather-related events led to reduced profit from the reinsurance operations.
The non-core businesses recorded improved profitability, mainly resulting from profits in run-off life insurance portfolios.
The Group maintains a strong capital position with equity increasing to USD 31.8 billion after deducting the 2011 dividend accrual totaling USD 2.8 billion, and solvency is within target AA range.