Zurich reports USD4.7 billion profit

Zurich Insurance Group (Zurich) reported a business operating profit (BOP) of USD4.7 billion and net income attributable to shareholders of USD4 billion for the year ended December 31, 2013.

“We delivered a solid operating profit in all core businesses, with good growth in priority General Insurance and Global Life markets, and Farmers focusing on implementing its new consumer strategy, while at the same time delivering resilient margins,” said chief executive officer Martin Senn.

"Zurich's solid results and strong cash generation have given our Board the confidence to propose a dividend of CHF 17 per share, reflecting the continued strength and stability of our business."

The combined ratio benefited from fewer severe catastrophes compared with 2012 as well as cost efficiencies, while the underlying loss ratio for General Insurance improved in the full year of 2013 through disciplined underwriting. These improvements were partly offset by an increase in both large and weather-related losses while investment income declined compared with 2012.

Global Life BOP continued to increase in Latin America, which however, was more than offset by reductions in North America, Europe, Asia-Pacific and Middle East (APME). The Non-Core Businesses recorded a BOP of USD73 million compared with USD129 million in 2012.

The Group preserved a strong capital position with shareholders' equity of USD32.5 billion.