ZURICH— Zurich Insurance Group AG, an insurance giant that remains without a permanent chief executive, saw its shares fall sharply on Wednesday after it said that its largest unit has continued to suffer losses.
The Zurich-based firm said it expects to report about $275 million in losses as a result of recent storms in the U.K. and Ireland, pushing its beleaguered general insurance unit to an operating loss for the fourth quarter of last year.
Its shares were down by around 7.4% midmorning Wednesday. Switzerland’s SMI Index was down 2.7%.
Zurich Insurance, which is expected to report financial results on Feb. 11, said the expected losses are based on preliminary estimates of damage inflicted by the heavy rainfall and flooding that hit parts of North England, Scotland, and Ireland late last year. “The final cost remains uncertain,” the company said.
The expected fourth-quarter operating loss for the company’s general insurance unit, Zurich Insurance’s biggest business, comes after the same unit posted a $183 millionoperating loss in the third quarter. Overall, Zurich Insurance reported a 79% decline in net profit for the period. Source
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