Zurich Insurance Group’s (Zurich) global life
business operating profit (BOP) fell by $69m to $293m in Q1 2012 –
or by 19% in US dollar terms compared to the same period in
2011.
Zurich said BOP benefited from fee income
growth and an improved risk margin. However, these benefits were
offset by the reduction in interest rates, which impacted the
investment margin.
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The provider said the lower level of profit in
Q1 2012 also reflected a reduction in the impact of deferred policy
acquisition costs and front-end fees, while Q1 2011 included a
benefit of $35m from non-recurring special operating items.
GWP rise
Zurich’s global life gross written premiums
(GWP) policy fees and insurance deposits rose by $1bn to $ 7.4bn or
by 16% in US dollar terms compared to Q1 2011.
The insurance group said the Santander
acquired insurance businesses as well as higher volumes of single
premium corporate savings and private banking client solutions
products resulted in the rise in global life (GWP) policy fees and
insurance deposits.
In a statement, Zurich said its global life
segment continues to make progress in its strategic objectives of
increasing geographic diversification outside Europe both
organically and through acquisitions.
It added that it is also making progress in
shifting the product mix from the traditional savings business
towards protection and unit-linked business and leveraging its
global strength in corporate life and pensions.
