Swiss giant Zurich shows £276m loss

EMBATTLED Zurich Financial Services boss Rolf Huppi played his cards close to his chest as the Swiss financial giant confirmed that it has fallen into the red. By international accounting standards, Zurich lost $387m (£276.4m).

Huppi is to stand down as chief executive for health reasons, but will stay on as executive chairman. Yet he refused to reveal who his successor as chief executive will be or when an announcement will be made.

The job is known to be coveted by Sandy Leitch, head of the British arm of Zurich, but others in the race - should the job go to an internal candidate - include Zurich's two chief operating officers Peter Eckert and James Schiro.

Europe's third largest insurer confirmed preliminary figures issued 10 days ago. Zurich, Huppi said, 'remains cautious' in 'uncertain risk environment and economic conditions'.

Failure to mention Huppi's successor put fresh pressure on the distressed stock, now 80% off its peak. Huppi is under fire for his autocratic management style, something investors and managers could live with in the good times, and his making private use of Zurich's corporate planes.