ZURICH: Zurich Insurance Group swung to a profit in the 4th quarter as an overhaul under chief executive Mario Greco gained traction and losses weren’t repeated.
According to details, Switzerland’s biggest insurer posted net income of $685 million (€641 million) compared to a loss of $424 million a year earlier on restructuring costs and claims from storms in Ireland and Britain, the Zurich-based company said on Thursday in a statement.
“It was a turbulent year,” Greco said. “Markets were tough. We made lots of changes but results came out very strong. They give us optimism for ‘17 and the next years.”
Greco is stepping up cost cuts and selling some businesses as ultra-low interest rates chip away at investment income and below-average catastrophe claims keep prices under tap. The company said it eliminated $300 million in annual costs in 2016.
The shares fell 1.4 per cent to 280 francs (€263) in early Zurich trading, while the Bloomberg 500 Europe Insurance Index was up 0.4 per cent.
