Zurich announces USD 5.2 billion business operating profit and USD 3.0 billion net income for 2008

Zurich, February 5, 2009 – Zurich Financial Services Group (Zurich) announced today a net income¹ after tax of USD 3 billion for 2008 as well as a CHF 11.00 gross dividend proposal. While the heightened financial pressures of the latter half of the year led to annual and quarterly reductions in net income and business operating profit, the Group’s disciplined approach to operational and risk management issues generated resilient operating results across its core business segments as well as a positive investment return. Furthermore, the Group’s business operating profit post-tax return on equity continued to remain above its mid-term target of 16%.

“These results illustrate the quality of our business model and the value of our risk and investment management strategies, particularly in view of the rapidly deteriorating global economic environment,” remarked Zurich's Chief Executive Officer James J. Schiro. “Looking forward, we do not see significant improvements in the economic environment in the near term, but our strong balance sheet, operational capabilities and well-balanced portfolio of businesses position us well to continue executing on our strategy.”

Performance highlights2 include:

    * Business operating profit (BOP) of USD 5.2 billion, a decrease of 23%. BOP return on equity (ROE)3 after tax of 16.8%
    * Net income of USD 3.0 billion, a decrease of 47 %. ROE of 12.1%
    * General Insurance gross written premiums and policy fees of USD 37.2 billion, up 4% or 2% in local currencies, and a combined ratio of 98.1%
    * Global Life new business value4, after tax, up 3% to USD 753 million, with new business margin, after tax (as % of APE), of 23.1% and APE up 11% or 10% in local currencies
    * Farmers Management Services’ management fees and other related revenues up 8% to USD 2.5 billion
    * Shareholders’ equity of USD 22.1 billion, a decrease of 24%
    * Diluted earnings per share of CHF 23.35, down 50%
 

¹ Attributable to shareholders.
² All comparisons refer to the full year 2007 unless stated otherwise.
³ ROE calculated on common shareholders’ equity. See the Financial Supplement and the Financial Review on the Investor Relations page of our Web site www.zurich.com for further information on shareholders’ and common shareholders’ equity.
⁴ Calculated on the European Embedded Value basis.

Download full press release (PDF):
Zurich announces USD 5.2 billion business operating profit and USD 3.0 billion net income for 2008