Zurich profits fall 33% in Q1 as it suffers $517m nat cat loss
Zurich Financial Services Group (Zurich) today reported a 33% drop in business operating profit of $849m (Q1 2010: $1.3bn) and a 32% drop in net income after tax of USD $637m (q1 2010: $935m) for the three months ended March 31, 2011.
"In a quarter marked by natural catastrophes, Zurich again delivered a solid underlying operating performance," said chief executive officer Martin Senn.
Results were impacted by the significant catastrophe events in the Asia-Pacific region during the first three months of the year. Aggregate losses of $517m were recorded for the five natural disasters in Australia, New Zealand and Japan.
The slow economic recovery in the US and much of Europe also impacted results, Zurich added.
"Our alliance in Latin America with Banco Santander, which we announced in February, will enable us to access millions of new customers in Brazil, Mexico, Chile, Argentina and Uruguay," Mr Senn continued.
Zurich also announced today the signing of a Memorandum of Understanding with Deutsche Bank to extend an existing exclusive distribution agreement for life and general insurance products in Germany for a further 10 years until 31 December 2022.
Zurich and Deutsche Bank intend to complete definitive agreements during 2011.
"This extension of our existing distribution agreement with Deutsche Bank reaffirms Zurich's position as a leading bank distribution partner," Mr Senn concluded.
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