Zurich and AC Q3 results

Zurich Financial Services reported solid general insurance underwriting results in the first nine months of 2004, despite the impact of the most severe hurricane season in more than a century.

Its UK, Ireland and Southern Africa region and Continental Europe reported improvements in their combined ratios of 2.8 points and 3.4 points, respectively, with improvements in business operating profits and net income. The segment's net income declined marginally from around £660m to £645.3m, while business operating profit decreased by 2.3% to £806.9m.

James Schiro, chief executive officer of Zurich, said: "Going forward, we affirm our intention to maintain an underwriting profit and achieve our group profitability target of 12% business operating profit return on equity after tax over the insurance cycle."

Allianz Cornhill also reported strong third-quarter results. Gross general insurance premiums increased by 1.8% to £1354.8m compared to 2003. The general business group combined ratio at the quarter end stood at 95.2%, down 0.8%.

Andrew Torrance, chief executive of Allianz Cornhill, said: "Our determination to underwrite risks professionally and price for profit is a major contributory factor to our performance this year."

Its commercial lines business saw a 4.8% rise to £800.7m, while combined ratio at the end stood at 94.8%. Personal lines business was down 2.3% to £554.0m and combined ratio of 95.7%.