Zurich profits despite hurricanes, tsunami
Switzerland-based insurance giant Zurich Financial Services has reported a 29 per cent increase in net income for 2004 despite the impact of “extraordinary catastrophes” like Hurricane Charley in the United States and the Asian tsunami disaster.
According to Zurich, last year marked the end of an unprecedented two year disaster-free period.
Thanks to four hurricanes, including Charley, hitting the US and the Caribbean in August and the Boxing day tsunami disaster, Zurich had to recognize claims net of reinsurance and taxes of US$585 million.
Zurich chief executive James Schiro pinned the group’s resilience in the face of the catastrophes on solid underwriting results, particularly in Continental Europe and the United Kingdom, profitability of its life businesses and strong investment markets.
A spokesperson for Zurich Australia said that although Zurich does not have as large a presence in South East Asia as it does in the United States and Europe, the Asian tsunami still impacted on the group because it insures many US and European based companies with branches in tsunami-affected areas. He added that none of these companies would have been insured by the group’s Australian operations, with the brunt of the fallout from the tsunami being borne by the group’s European operations.
The spokesperson could not disclose any specific financial performance figures for Zurich Australia, stating that it was not company policy to do so.
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