Profit falls at Zurich as new chief named
SWISS insurance company Zurich Financial Services has announced the appointment of Martin Senn as chief executive, after revealing first-half profits had fallen 53 per cent compared with last year.
Senn, who is currently Zurich’s acting chief investment officer, will succeed James Schiro, who will retire on 31 December. “Martin is an engaging, thoughtful and results-oriented leader who is ideally suited to build on and further develop Zurich’s successful strategy,” said group chairman Manfred Gentz.
The announcement came just hours after the company revealed that first-half net profit had fallen to $1.3bn (£780m), down 53 per cent from the equivalent period in 2008.
General insurance gross written premiums were down 11 per cent to $18.2bn, although the fall was just two per cent at constant exchange rates. Shareholders’ equity was up 14 per cent to $25.2bn, compared to $22.1bn at the end of 2008.
“I am proud of how we have… managed our way through this global economic downturn, strengthening our financial position while capitalising on opportunities,” said Schiro.
“These results demonstrate our ability to generate consistently strong profitability, and underscore our confidence that we will enter the recovery period from a position of strength,” he added.
Schiro also said that the group was looking at making further acquisitions to add to the 17 the company has made since the end of 2006.
Zurich recently bought American International Group’s (AIG) car insurance unit for $2bn, which has helped it remain profitable.
The company also said yesterday that it was on course to achieve its target of $1.3bn in efficiency and expense savings.