Zurich Insurance sees Q4 loss in general insurance

[ZURICH] Zurich Insurance Group AG expects its biggest unit to record a second straight quarterly loss after estimating it will pay out US$275 million to cover damage claims from storms in the UK and Ireland.

The general insurance unit is expected to post an operating loss of about US$100 million for the last three months of 2015, the company said in a statement Tuesday. It reported a loss of $183 million in the third quarter.

Zurich also said it would speed up its cost-cutting program and wants to exceed its 2016 target of US$300 million in savings. This will cause charges of around US$475 million in the fourth quarter, primarily within general insurance, the statement said.

Zurich will provide more information on the unit's performance and expectations for the group's 2016 results when it reports earnings on Feb 11, the company said. The insurer is seeking a new chief executive officer to succeed Martin Senn, who stepped down in December.

BLOOMBERG