Global insurer returns to profit
Zurich Insurance returned to profit in the first quarter of 2016 following a $424 million net loss at the end of last year. The firm posted net profit of $874 million as its general insurance business gained. Reuters analysts were expecting $707 million. However, the result is 28 per cent lower than Q1 in 2015.
Zurich’s general insurance business has been in focus for the firm due to underperformance but in a statement chief financial officer George Quinn was optimistic that it has turned a corner:
"While it is still early in the process, these results show that the measures we put in place to improve the performance of our general insurance business are taking effect.”
The GI unit’s combined ratio improved to 97.7 per cent.
Report highlights potential weakness in London re(insurance) market
Casualty claims reserves for business written during 2015 could be weaker than previous years in the London (re)insurance market.
A review of the market by PwC suggests that the strength of casualty claims reserves set for business written during 2015 is 3 per cent weaker than prior years of underwriting and that (re)insurers are counter-intuitively assuming that new Casualty business written during 2015 is, in aggregate, 2 per cent more profitable than renewed business.
“History has shown that the adequacy of reserves for Casualty business has always posed a risk to the London Market. Our exercise confirms that Casualty reserves on the most recent underwriting year are more vulnerable to adverse run-offs in the future than they have been in the recent past - particularly in a market segment that is only breaking even,” said PwC’s actuarial leader in London, Jerome Kirk.
Manulife, employees raise $200k for Fort McMurray relief
Insurance professionals at Manulife have raised $50,000 for the Fort McMurray fire relief fund, a sum which has been matched by the Canadian insurer.
In addition, Manulife has donated $100,000 to the relief efforts, doubling its initial contribution.
“Manulife employees have given generously to help their fellow Canadians in a time of great need,” said Marianne Harrison, President and Chief Executive Officer, Manulife Canada. “The work to rebuild Fort McMurray and the lives of its citizens will require patience, understanding and flexibility.”
