Credit Crunch

07/08/2009   Zurich first-half profits dip 53%

ZURICH, Switzerland—Profits at Zurich Financial Services Group declined 53% to $1.25 billion for the first half of the year as economic pressures and flat insurance prices dampened results.

Gross written premiums for general insurance amounted to $18.25 billion for the first six months, an 11% decline from the 2008 period.

Premium volume was largely flat on general insurance business in Europe, the Zurich, Switzerland-based insurer said in a Wednesday statement. Growth and a better rate environment in North American commercial businesses helped partially offset weaker results elsewhere, the insurer said.

Investments contributed $2.44 billion to the insurer’s first-half profits, a 39% drop from the first six months of last year.

Chief Executive Officer James J. Schiro said Zurich is operating from a position of strength.

"I am proud of how we have proactively managed our way through this global economic downturn, strengthening our financial position while capitalizing on opportunities," Mr. Schiro said in the statement.