Zurich surges but probe casts cloud

SOLID insurance underwriting business propelled Zurich Financial Services' net income up by 35% at to $1.9bn (£1.03bn) in the first nine months of the year.

The growth came despite the impact of the most severe hurricane season for more than a century. Operating profit for the period rose 65% to $2.52bn over last year, net of a $525m charge for hurricanes.

Today's results were in line with expectations but were overshadowed by revelations that Zurich, which used to trade as Allied Dunbar in the UK, has been told by US authorities to provide 'information regarding non- traditional products'.

The request comes from the Securities and Exchange Commission and the office of New York Attorney General Eliot Spitzer, who is leading a probe into conflicts of interest between brokers and underwriters.

It follows confirmation from Zurich that two former employees have admitted 'misdemeanor violation of New York anti-trust law'.

The pair worked in Zurich's excess casualty unit in the specialities business of its North America commercial division.