Major insurer
Zurich issued its second profit warning in four months on Wednesday, saying it expects aggregate losses of approximately US$275m for 2015, driven by sizeable flood and storm related claims through its general insurance operation in the UK.
The Swiss company said that as a result of the adverse natural catastrophe experience and the high level of large current accident year claims, it now expects the General Insurance business to report a business operating loss of approximately US$100m for the fourth quarter of 2015. Shares in the company took a battering on the back of the news.
Zurich has been having a tough time of it lately. In 2015, heavy losses from the Tianjin port explosion in China prompted the company to abandon a proposed takeover bid for RSA UK. A knock on effect was the departure of CEO Martin Senn last month, leaving the company without a helmsman.
Current speculation doing the rounds puts
Generali chief Mario Greco in the frame for the role.
Zurich said that it has accelerated a number of steps in its efficiency program, with an aim of exceeding the previously communicated cost savings target for 2016 of US$300mn. This should result in charges of around US$475m in the fourth quarter, primarily within General Insurance. The Group also anticipates incurring a one-time impairment charge attributable to the write-off of its German Life business goodwill of approximately US$230m. These charges will be recorded outside of fourth quarter Business Operating Profit.
