Zurich Financial suffers as weather disasters weigh

City A.M. Reporter
SWISS insurer Zurich Financial Services reported a 51 per cent drop in second-quarter net profits to $707m (£445m) yesterday as earnings were hit by payouts for weather-related losses and the earthquake in Chile.

This compares with a profit of $1.43bn during the same period last year by the firm led by Martin Senn.

The Zurich-based company says investment income fell and it took in less insurance premiums than during the second quarter of 2009. Premiums and policy fees fell five per cent to $10.67bn during the quarter.

Zurich said results also suffered because of provisions worth over $330m it has made for commercial property development loans in Britain and Ireland.

Shares closed down 4.3 per cent at 238.90 Swiss francs (£143.6) on the Zurich exchange.