Zurich reports BOP of USD4.6 bn

Zurich Insurance Group has reported a business operating profit (BOP) of USD4.6 billion and net income attributable to shareholders of USD3.9 billion for the year ended December 31, 2014.

Chief executive officer Martin Senn said: “While we made good progress last year in executing the strategy we set out in December 2013, we cannot be satisfied with our 2014 earnings. In General Insurance, we continue to make good progress in improving our accident year combined ratio, although the results show that we have still much to do in our turnaround businesses, and in driving further improvement across the book. In Global Life, we see good momentum in our priority life markets, and expect to start seeing the benefits of in-force management initiatives coming through in our earnings over the next two years. At Farmers, the positive story continues, with two consecutive quarters of growth and a continuation of positive trends in all key metrics.”

General Insurance (GI) gross written premiums increased in local currency terms led by the Group’s priority markets. GI made good progress in improving the portfolio, with an improved current year underwriting result offset by lower releases on reserves established in prior years.

Global Life (GL) delivered strong growth in the priority markets of the US and UK retail, bank distribution and corporate life & pensions. BOP was broadly flat compared with the prior year.