Zurich chief expects strong profit recovery | company financing

(Reuters) Zurich Insurance (ZURN 376.50 + 0.21%) The group expects a strong recovery in the current year. “Business is coming back strong, both in terms of growth and profitability,” CEO Mario Greco said Wednesday at the Reuters event “The Future of Insurance USA.” In property and casualty insurance, there have been no new claims in connection with the coronavirus pandemic. In life insurance, some claims are found in the United States and South America, but they are highly manageable.

According to Greco, Zurich has consistently declined the sale of closed-end life insurance portfolios. “I think this should be understood as a normal and continuous effort on our part to improve capital.” Once the life insurance book for new clients is closed and processed, it is important to weigh the profits that can be made by continuing to face potential capital dilution.

According to informed sources, Zurich intends to sell portfolios of life insurance policies in Italy and Germany. “When the financially reasonable opportunity arises to conduct these transactions, we will do so,” Greco said. “Not necessarily just in these two countries.” Zurich has carried out a number of such transactions in recent years, for example in the USA, Great Britain or Spain.

And with a view to the acquisitions, the Italian reaffirmed the position of the group. “Our strategy is not based on acquisitions,” the manager said. However, Zurich has the means to take advantage of the opportunity that presents itself. Greco rejected another large acquisition within a year. At the end of last year, the group bought the American property and casualty insurance company MetLife with Farmers Exchanges.