Zurich - Zurich Insurance Group AG reported a six-percent decline in first-quarter business operating profit, hampered by a strong dollar and rock-bottom interest rates that flattened investment returns.
Europe's fifth biggest insurer, like its rivals, has been struggling with low interest rates and weak economic growth in its very mature and saturated home market.
The underwriter's net investment return remained at 1 percent, while gross written premiums at its largest business, general insurance, fell 5 percent to $10.1 billion, but rose 5 percent on a local currency basis.
The Swiss franc, in which the Zurich-based company writes its policies, has lost nearly 8 percent since the start of the year against the dollar, in which it reports.
Zurich Insurance's combined ratio deteriorated to 96.7 percent as a result, compared with 95.9 percent during the three months to March 31 a year earlier.
A ratio below 100 percent means an insurer earns more in premiums than it pays out in claims.
Reuters