Zurich Life has hailed its results for the first six months of 2008 as "strong", despite toughening market conditions that saw growth in its life insurance new business slip 12 per cent.
The company, which is part of Zurich Financial Services Group, added new business in life insurance, although at a slower rate than before, with new business of €92.4 million down 12 per cent compared to the same period of 2007.
However, the statement from Zurich Life, formerly known as Eagle Star Life, was upbeat, saying that the firm had managed to outperform the market, raking in new business in annual and single premium pensions, and PRSAs.
Annual premium pensions brought in €47.4 million in new business, an 11 per cent rise on the same period a year earlier, while single premium pensions remained static at €249.9 million, but managed to hold its own against the marlet decline of 41 per cent.
PRSA business rose 14 per cent, giving the company a claimed 28 per cent share of the market. This compares to compared to a market decline of 6 per cent.
"We have significantly outperformed our competitors in the first half of 2008 in an increasingly difficult economic and market environment," chief executive Michael Brennan said.
Earlier today Zurich Financial Services reported first-half net profit of $2.68 billion, in line with analysts' forecasts, and said it remained well on track to achieve its efficiency targets.
So far, Europe's fourth largest insurance group has managed to weather difficult financial markets as well as competitive insurance markets, where prices are dropping.
Net profit compared with 12 analysts' average forecast of $2.620 billion.
"Particularly in view of today's market challenges, top and bottom-line results underscore the group's ability to executive on its stated strategy of profitable growth and operational transformation across all business segments," Zurich said.
Gross written premiums and policy fees rose 8 per cent to $20.6 billion.
Zurich said it was on track to cut costs $800 million each year up to 2010, the latest step in Chief Executive James Schiro's efficiency programme after he brought the group back to profitability from heavy losses in the early 2000s.
The combined ratio - which measures costs and claims as a percentage of premium income - improved 0.3 per cent to 96.2 per cent.
The group's annualised return on equity (ROE) reached 19.5 per cent.
Additional reporting: Reuters