Profits slump 79 per cent at global insurer
Global insurance company
Zurich has reported a huge slump in its third quarter net profits, down 79 per cent. Analysts were expecting poor results with $222 million predicted but the actual figure fell even further at $207 million from $966 million a year earlier. Gross written premiums and fees fell to $12.3 billion, down $0.6 billion from a year earlier while investment yield was 1.1 per cent compared to 1.5 per cent in Q3 2014. Combined ratio was 108.9 per cent for
Zurich’s general insurance business. Earlier this year
Zurich abandoned its plan to takeover RSA Group due to its heavy losses from the Chinese port explosions in Tianjin.
Insurers reassure travelers in wake of Indonesian volcanic eruption
The eruption of Mount Rinjani on the Indonesian island of Lombok has led to media speculation that travelers may be left out of pocket by their insurance companies. Many insurance firms have been quick to reassure customers that that is not the case as long as they were covered before the eruption happened. The media reports suggested that insurers would link Tuesday’s eruption with a previous one in July at Mount Raung and therefore deem it to be a foreseen risk, invalidating claims. Insurers have said that the latest eruption would only be considered foreseen once the eruption was in the media.
Marsh acquires North Dakota agency
A family owned insurance agency in North Dakota has been acquired by Marsh & McLennan Agency. Dawson Insurance Agency which was founded 98 years ago will continue to operate under its own name, providing insurance and benefits in North Dakota and Minnesota. Existing management Tom Dawson and Dan Armbrust will continue to lead the firm. No financial details of the transaction have been disclosed.
Egypt deemed security risk following Russian plane crash
Egyptian authorities are working hard to boost security for holidaymakers on speculation that it was a bomb that brought down the Russian aircraft flying from Sharm el-Sheikh. US and UK intelligence sources believe that terrorists may have been responsible for the death of 224 people on board the Metrojet Airbus 321 at the weekend. Egypt says it does not believe that Islamic State was involved while Russia says it is too soon to know. The British Foreign Office has suspended all flights to and from Sharm el-Sheikh and is working with Egyptian officials to help strengthen security.
