Zurich Insurance Net capital gains on investments 2012

Best Insurance stock - Zurich Insurance Net capital gains on investments 2012 : Zurich Insurance Group AG, Switzerland’s biggest insurer, said fourth-quarter profit rose 82 percent after higher capital gains on investments.

Net income increased to $983 million from $540 million a year earlier, the Zurich-based company said today in a statement. That beat the $521.1 million average estimate of 13 analysts surveyed by Bloomberg. Business operating profit fell to $540 million from $983 million in the year-earlier quarter.


Zurich Insurance will keep its dividend unchanged at an 11- year high of 17 Swiss francs ($18.52) a share, after increasing the payout to that level in 2010. Net capital gains on debt and equity investments were $1.04 billion in the fourth quarter compared with a loss of $78 million in the year-earlier period.

“Results were better than expected, but only on the bottom line, which was clearly due to higher realized capital gains,” said Daniel Bischof, a Zurich-based analyst with Helvea. “For me the operating profit is more important, and there they were rather disappointing because of the general insurance business.”

Net capital gains on investments totaled $2.2 billion in 2012, driven by sales of debt and equity securities.

“We continue to execute our proven strategy, growing our business in emerging markets while delivering a resilient performance in mature markets,” Chief Executive Officer Martin Senn said in the statement today. “This strong underlying profitability ensures we remain well positioned to continue to deliver for our customers, employees and shareholders in 2013.”(source http://www.bloomberg.com )

Zurich Insurance stock performance 2013

Best insurance stocks today - Zurich Insurance stock performance 2013 ; Zurich Insurance Group AG (ZURN), Switzerland’s biggest insurer, said it is making “good progress” to achieving targets for 2013 and expects to pay an “attractive” dividend.

The company, which is holding an investor day in Zurich, has cut costs by $200 million as it targets expense reductions in “mature markets” of $500 million by the end of next year, the insurer said today in an e-mailed statement.

Chief Executive Officer Martin Senn said he’s confident that Zurich Insurance’s cash flows and capital position will allow an “attractive and sustainable dividend.” The insurer may raise the dividend for 2012 to 17.50 francs ($18.85), according to data compiled by Bloomberg, after leaving the 2011 payout unchanged at an 11-year high of 17 francs a share.

The statement “should provide the market with reassurance on the high dividend paying capacity,” said Stefan Schuermann, a Zurich-based analyst with Vontobel Holding AG who has a hold rating on the stock.

The stock rose 1.8 percent to 234.90 francs as of 9:45 a.m. in Zurich trading, giving the company a market value of 34.8 billion francs. Zurich Insurance has increased 11 percent this year, lagging behind the Bloomberg Europe 500 Insurance Index (BEINSUR)’s 28 percent gain.

While the insurer is targeting a business operating profit after tax return on equity of 16 percent in the long term, Zurich Insurance reiterated today that in the current environment, a goal of 2 percentage points below that is more realistic.

Zurich Insurance reported a 62 percent decline in third- quarter profit earlier this month following a $550 million write-off at its German general insurance business.

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