Zurich, October 17, 2012 – Zurich Insurance Group (Zurich) announced today that as the result of a review of its General Insurance business in Germany, including an in-depth claims file review, the Group will strengthen its claims provisions, primarily in the long-tail liability lines, and write-off a portion of its deferred acquisition costs. The current estimate of these financial adjustments totals approximately USD 550 million (before tax) and will be included in Zurich’s business operating profit (BOP) for its nine months, ended September 30, 2012. The estimated after tax amount is approximately USD 390 million.
Zurich’s leadership is disappointed with this significant financial adjustment and has taken the necessary steps including engaging external experts to validate the remediation actions being taken in Germany. The other businesses continue to deliver as expected through the third quarter of 2012 and Zurich continues to progress well towards its strategic targets.
The financial results of Zurich for the first nine months 2012 are due to be released on November 15.