Zurich returns to health at double

ZURICH Financial Services' first-half net profits almost doubled over the previous year as the Swiss insurance giant continued its recovery under chief executive James J Schiro.

High premiums and more profitable underwriting in Zurich's general insurance arm bolstered the group, which has taken the axe to its cost base since Schiro joined two years ago.

Zurich said it had also benefited from a low number of claims and the absence of large catastrophes.

Hurricane Charley will, however, inflict losses of $150m (£82m).

Schiro said: 'Zurich's recovery continues. Success-is coming from the sharp focus on core businesses, financial discipline, and sound underwriting.'

Net profit for the six months to 30 June surged by 93% to $1.4bn on gross written premiums of $20.6bn.

The combined ratio, an insurer's margin, improved from 98.8% to 96.7%.

HURRICANE Charley is only expected to hit Swiss Re for claims of up to a pre-tax $200m, the reinsurance group said today. The company said the storm bill did not change its outlook for this year's results.