Zurich makes $3.4bn loss

Zurich makes $3.4bn loss

Schiro says the firm will return to profit this year

The insurer Zurich Financial made a $3.4bn (£2.1bn) loss last year.

And the company said it was cutting its dividend to 1 Swiss franc from 8 Swiss francs a year ago.

Like other insurers, Zurich has been hit by the falling value of its large share portfolios and by unexpectedly high claims.

Chief executive Jim Schiro said that weak stock markets were hurting its life business.

But he said an 18 month restructuring drive, which began last September, was gathering pace.

On track

And he added that there was no need for any further job cuts on top of the 4,500 already announced.

In a conference call Mr Schiro said that the insurer was on track for a return to profit in 2003.

And he said that he saw no need now to raise extra capital after the firm raised $2.5bn last year with a rights issue.

Zurich Financial's brands in the UK include Eagle Star and Allied Dunbar.