Swiss insurer Zurich Financial Services AG said Thursday its second-quarter earnings rose 8 percent, suffering from payouts due to the June floods in Britain, AP reported. Net profit in the second quarter rose to US$1.3 billion (¤960 million) from US$1.2 billion in the year-earlier period. First-half profit rose 33 percent to US$2.7 billion (¤2 billion) from US$2 billion last year, but were hit by claims totaling US$566 million for payments relating to winter storm Kyrill in Europe and floods in Britain during June. Zurich Financial's gross written premiums and policy fees increased by 3 percent to US$19 billion (¤14.2 billion) in the April-June period, with a combined ratio of 96.5 percent from 94.5 percent the year before, an increase it blamed on the effects of recent storms and floods in Britain. A level below 100 percent means the business is profitable. Chief Executive James J. Schiro said the results reflected a disciplined approach to its insurance business and successful cost-cutting efforts. «I'm confident about our future, and I'm confident about the remainder of 2007 and our ability to move forward ... and continue to deliver value for our shareholders,» he said during a telephone conference. Shiro added that the company's investment returns were on solid foundations «based upon a portfolio with limited exposure in the subprime issues that are facing so many today.» Shares in Zurich Financial fell 1.7 percent to 319.75 Swiss francs (US$262.39, ¤195.47).
