"Record Business Operating Profit and Net Income", Too, Reported
for the First Three Total Quarters Ending September 30, 2006.
Zurich Financial Services reports that its Third Quarter total net profit in 2006 is triple the amount of its Third Quarter Quarter net profit in 2005. This information is gleaned from but not stated out loud in Zurich's seven-page single-spaced press release earlier this week. Here is a link to it: Zurich Financial Services Press Release, "Strong Operating Performance Fuels Excellent Nine Month Results for Zurich Financial Services", dated November 16, 2006.
This press release notes that caution is advised: "This communication must not be acted on or relied on by persons who are not relevant persons." It advises, further, that Business Operating Profit is way up due in part to "relatively low levels of natural catastrophes". Contributing factors are many including that Underwriting Profit is up, and so is investment income. Underwriting Profit for "general insurance" at Zurich for the Third Quarter of this year is $1,100,000,000.00 or One Billion, One Hundred Million U.S. Dollars. That is a "Profit" total, not gross Premiums, which would have to be more than that amount of course. This Profit compares with an Underwriting loss, says Zurich, for the corresponding period in 2005, of $176,000,000.00 or One Hundred, Seventy-Six Million U.S. Dollars.
Zurich's North America Commercial operations in particular increased Property Insurance Premiums "in catastrophe prone regions," with Liability Insurance Premiums declining in those areas. However, if all politics is local, as they say, then perhaps all Insurance Premiums are global. Premium results reported by Zurich for its Global Corporate Division reflect "strong increases in US catastrophe prone exposures," which are offset by decreased Premiums for US Liability Insurance and by decreased Premiums for United Kingdom Liability and Property Insurance, Zurich notes.
CatClaims from U.S. Hurricanes struck Zurich's results one year ago at this time, whereas it appears that Zurich's General Insurance Division Premiums this year generated increasing Premiums for the first time in years. Some of these results are briefly analyzed (subscription required) by Gorian Mijuk, "Zurich Financial Net More Than Doubles" (Wall Street Journal Friday, November 17, 2006, page C4, col. 6)(subscription required).
REMINDER: THE CONTENTS OF THIS BLOG DO NOT MAKE AN ATTORNEY-CLIENT RELATIONSHIP. ALWAYS CONSULT THE CASES AND LAWS OF EACH PARTICULAR JURISDICTION AND AN ATTORNEY IN AND FAMILIAR WITH THE PARTICULAR INSURANCE ISSUE, THE JURISDICTION AND ITS LAWS, WHENEVER YOU TRY TO ADDRESS OR RESOLVE ANY LEGAL QUESTION.
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