At the end of the 4th quarter of 2015 the Zurich Insurance Group AG’s department in the field of general insurance has recorded an operating loss of about $ 100 million, in particular due to the high cost of coverage for damage from hurricanes in the United Kingdom and Ireland, according to preliminary data of the insurer.
Payments to cover the damage caused by hurricanes that have caused torrential rains and severe flooding in several regions in the north of England and also in Scotland and Ireland, will be approximately $ 275 million, the company said.
The Zurich Insurance’s department in the area of general insurance, providing services to property insurance and accident insurance, has recorded an operating loss for the second quarter in a row. In July-September last year, its loss was $ 183 million.
The company also announced that it intends to speed up the implementation of the cost reduction program.
As the insurer expects, the savings on expenditures in 2016 will exceed the target of $ 300 million. This, however, will require one-time spending amounting $ 475 million, mainly in the division of general insurance, which will be reflected in the financial statements for the 4th quarter.
"Despite the fact that the results of the general insurance division in the last quarter were disappointing, the performance in other areas is likely to meet expectations," - said in a press release Zurich Insurance.
Zurich Insurance Group was founded in 1872; it is managed from the headquarters in Zurich. The Group has a global network of its own units and offices in North America, Europe, Asia-Pacific, Latin America and other markets. There are about 60 thousand employees in 170 countries.