Zurich Insurance willing to give up some of its operations

The Day of Judgment has arrived for Zurich Insurance. After having suffered a rise in the number of car accidents in USA and having affected by the most important man-made disaster in the history of mankind, (the explosion of warehouses containing flammable products in Tianjin harbor in China), the Swiss insurer is posting a third quarter 2015 in the red with losses of 183 million USD. The fourth quarter is also likely to report negative results of 100 million USD.

Zurich has, therefore, given up the idea of acquiring British RSA Insurance. On the contrary, the Swiss group is now considering the prospect of ceding its non life insurance activities in some countries in order to offset its loss-making entities.

According to one survey, Zurich has posted the poorest performance over the last two years at the level of member insurance companies in STOXX Europe 600 index. The group has a very high combined ratio in comparison with its direct competitors. The loss-making portfolio accounts for 15.7% of the non life insurance premiums over the first three quarters of 2015, with a combined ratio of 143%, compared to 94% for the remainder of the portfolio.