The global market conditions and ongoing competition in the insurance industry have affected the financial results of Zurich Insurance Group Ltd (ADR) (OTCMKTS:ZURVY). As per the reports, ZURVY reported $4.6 billion profit in the previous year, 1% down on YOY basis.
Insights On The Financial Results:
Even though the YOY business operating profit didn’t change that much, but the 4Q2014 BOP was significantly down. While ZURVY announced $1.1 billion profit in 4Q2013, it came down to $812 million in 4Q2014. The situation remained the same in the case of Net income after tax attributable to shareholders as well. The NIAS for 2014 was $3.9 billion as compared to $4.02 billion for 2013.
While announcing the results, Martin Senn, CEO of Zurich Insurance Group Ltd (ADR) (OTCMKTS:ZURVY) stated that the company made a significant growth over the past 12 months, but the financial results for the same period were not satisfactory at all.
ZURVY has made decent growth in the general insurance field by improving accident year combined ratio, but the financial results represent that a lot more is to be done. The demand of Global Life has continuously improved over the past few years; hence, ZURVY expects to achieve market leading position in this field within the next two years. The company looks forward to implementing various in-force management initiatives to take its performance in Global Life on newer heights.
The combined ratio of the company for the past year was 97.3%, overall 0.7 points more than the 2013. Even though the growth was not that much, but surely created the base for the future. In order to expand its operational efficiency in the Asian region, ZURVY has decided to appoint Cecilia Reyes as the new Regional Chairman of Asia Pacific operations. The management of ZURVY believes that the cash position of the company is strong and will continuously improve in the coming months.