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Hurricanes hit Zurich profits
13.11.08
Zurich Financial, the world's fifth-largest insurer, saw operating profits fall 15% to $4.2 billion (£2.81 billion) in the first nine months, amid a double hit by hurricanes and the financial markets slump.
Zurich said it lost a net $1.8 billion on its group investments, with $1.1 billion of that directly due to writedowns on debt instruments issued by Lehman Brothers, Washington Mutual and Sigma Finance Corporation.
Catastrophe losses due to hurricanes Gustav and Ike cost $595 million. But chief executive James Schiro said results were good in the circumstances.
"I am particularly pleased in our ability to deliver continued profits and maintain our high solvency ratio," he said.
Zurich said it had not taken advantage of new accounting rules, which would have let it reclassify some illiquid investments and avoid big writedowns.
