Swiss insurance group Zurich Financial Services said today that its net profit had declined by 24% in the first nine months of the year despite a sharp revival in its third quarter fortunes.
Nine month net profit reached $2.2 billion (€1.5 billion), after third quarter net income soared to $909m, a near six-fold increase year-on-year.
Zurich described its results as 'solid' after the fourth consecutive quarterly improvement since its profits slumped a year ago with the collapse in financial markets.
Zurich Life says outperforming Irish markets
Zurich Life in Ireland also announced a strong set of new business results as the firm said it outperformed an overall decline in the market. It said its share of the Irish market grew to 16% in the nine month period.
Its pensions single premium business was up 25% to €505.6m, compared to a market decline fo 11%.
Zurich Life also saw continued strength in pension market share, especially in the PRSA market and it now holds a 44% share of this market.
New business in the individual protection sector rose by 14% to 15.2m compared to the same time last year, while new business APE was down 5% at €136.6m. However, the APE market overall saw a decline of 35% in the nine month period.
'All the indications point to another challenging year ahead, but I am confident that our strengths position us well to continue to outperform,' commented CEO Zurich Life Anthony Brennan.
'The financial strength and commitment of our parent company to Ireland continues to be a major factor in our success. Financial strength is a key decided factor when employers decide who to trust to manage their pension scheme,' he added.
The parent company said that operating profit for what it described as a 'discrete third quarter' grew 138% year-on-year to $1.5 billion, boosting nine month operating profit to $4.1 billion, just down 3%.
Chief financial officer Dieter Wemmer said that the group had recorded good growth in several sectors. The results were also buoyed by the lack of seasonal hurricane damage in the US or other major catastrophes, he added.
Gross life insurance premiums grew by 16% to $17.4 billion in the nine month period, partly through acquisitions in Spain, while the US Farmers insurance branch boosted revenues by 8% to $1.97 billion.
The group also recorded the greater part of its improved nine month investment results in the third quarter as financial markets surged.
