Zurich Financial Services

An impressive net income result masked a tough year for both the group’s non-life and life businesses

The Swiss based Zurich Financial Services group increased its net income by an impressive 29% from US$2.0bn in 2003 to nearly $2.6bn in 2004. However, the result, which was almost entirely due to investment income and a reduction in tax charges, masked a tough year for both the group’s general insurance business (which faced hurricane and tsunami costs of $762mn and net strengthening of reserves of $2.1bn) and its radically restructured life business where net income was down 24% (mainly as a result of the disposal of life subsidiaries during the previous year) in 2004.