Zurich Insurance issued a Jan. 20 profit warning for its general insurance business unit, projecting a $100 million business operating loss by Q4. Not long after the announcement, the Swiss company’s shares fell by more than 9%—
Zurich hitting its lowest point since November 2012.
The company identifies the numerous recent claims from storms and floods in Britain and Ireland as catalysts for the loss.
Bernstein research analysts predict that there is a 60 to 70% chance that Zurich would cut its 2015 dividend following the large loss in shares.
A report published by Reuters suggested that Zurich needs to focus more on its general insurance business unit (arguably the company’s biggest source of revenue) if it hopes to turn things around for the better.
Times have been rough for Zurich, which has been without a CEO since Martin Senn resigned late 2015. Earlier that year, the company took a $275 million loss in relation to a series of explosions in Tianjin, forcing Zurich to abandon its $7.92 billion bid for UK-based insurer RSA.
