Swiss insurer Zurich Financial Services today reported a 10% rise in 2011 net profit to $3.8 billion (€2.9 billion) despite a year marked by natural catastrophes.
ZFS ended 2011 in the black although it suffered a 46% drop in fourth quarter net profit to $557m compared to $1 billion in the same period in 2010.
The insurer had previously described 2011 as the worst catastrophe year since 2005, when Hurricane Katrina devastated New Orleans. Earthquakes hit Japan and New Zealand, there was severe flooding in Thailand and hurricanes rolled into the US.
In its key general insurance division, gross premiums and policy fees rose 5% to $34.6 billion, the company said, but the unit's operating profit dropped 15% to $2.3 billion.
"The sustained focus on profitability has continued to produce strong improvements in the underlying loss ratio but these improvements were more than offset by the exceptional frequency and overall severity of catastrophe and significant weather-related events loss events," ZFS said.
Chief executive Martin Senn said the company had delivered good results, highlighting acquisitions in Latin America and Malaysia where the economic growth outlook "remains positive."
The board will propose an unchanged dividend of 17 Swiss francs per share next month, along with a name change to Zurich Insurance Group.
