Zurich Financial Services
From Wikipedia, the free encyclopedia
| Zurich Financial Services | |
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| Type | Public |
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| Founded | 1872 |
| Headquarters | Zurich, Switzerland |
| Key people | James J Schiro, Chief Executive Officer (Global Operations) |
| Industry | Financial Services |
| Products | General Insurance, Life Insurance, Specialty Products, Pensions and Investments |
| Revenue | $46.8 billion (2005) |
| Employees | Approx. 55,000 worldwide |
| Slogan | Because change happenz |
| Website | www.zurich.com |
Zurich Financial Services Group is a major financial services group based in Zurich, Switzerland.
Contents |
[edit] History
1872 Zurich Insurance Company was founded under the name Versicherungs-Verein in Zurich. On May 1 1873, the Versicherungs-Verein opened for business, initially to provide reinsurance for Schweiz Insurance.
1875 Zurich entered the field of accident insurance. The company was renamed Transport-&Unfall-Versicherungs-Actiengesellschaft "Zürich". By 1894, Zurich had received licenses to conduct business in Austria, Prussia, Denmark, Sweden, Norway, the bulk of German states, France, Belgium, Holland, Spain, Poland, Russia, Italy, Luxembourg and Liechtenstein.
1894 As a result of switching from marine insurance to accident and liability insurance, Zurich changed its name to "Zürich" Allgemeine Unfall-&Haftpflicht-Versicherungs-Aktiengesellschaft.
1912 Due to legal developments in the field of workers compensation, Zurich ventured into North America, starting its activities in the U.S. Federal States of New York, Illinois, New Jersey, and Massachusetts.
1915 Zurich acquired Hispania Compañia General de Seguros based in Barcelona, Spain.
1922 Zurich established a branch in Great Britain, followed a year later by Canada.
1938 Zurich established a reinsurance company, Turegum.
1950 Zurich purchased a participation in the Companhia de Seguros Metrõpole S.A. in Lisbon.
1955 The former "Zürich" Allgemeine Unfall-&Haftpflicht-Versicherungs-Aktiengesellschaft was renamed "Zürich" Versicherungs-Gesellschaft.
1955-1976 Multiple acquisitions took place, including of Commonwealth General Assurance Corporation of Sydney, Iguazù Compañia de Seguros S.A. of Buenos Aires, Empire Fire and Marine Insurance Company of Nebraska, Fidelity and Deposit Company of Maryland, Universal Underwriters of Kansas City, Anglo Americana de Seguros Gerais of Sao Paulo, Minerva Group of Italy, Centre Reinsurance Holding of Bermuda, La Chilena Consolidada and Seguros de Vida of Chile, and Seguros Chapultepec of Mexico.
1990 ZIM (Zurich Investment Management) was founded in Switzerland as an asset management partner for retirement funds and institutional investors.
1996 Zurich acquired over 80 percent of Kemper Corporation, with two life insurance subsidiaries and 97 percent of Kemper Financial Services.
1997 Zurich acquired a majority interest in Scudder, Stevens & Clark, New York. Subsequently, the Kemper activities are merged into Scudder to form Scudder Kemper Investments.
1998 The Zurich Financial Services Group was created from the merger with the financial services business of UK-based B.A.T Industries p.l.c. Through a dual holding structure, Zurich Financial Services was owned 57% by Swiss-quoted Zurich Allied AG, representing the former shareholders of Zurich Insurance Company, and 43% by London-listed Allied Zurich p.l.c., the de-merged financial services interests of B.A.T Industries p.l.c.
2000 The structure was simplified and unified under a single Swiss holding company. Allied Zurich and Zurich Allied shares were replaced by shares of the newly incorporated Zurich Financial Services, with a primary listing in Zurich (ticker symbol: ZURN) and a secondary listing in London (ticker symbol: ZURN.L).
2002 Zurich takes on a clear strategic direction by sharpening its focus as an insurance-based financial service provider.
2003 Zurich recorded a return to profitability announcing that it is on track with its ambitious goals and records a significant net income of USD 2.1 billion after a loss of USD 3.4 billion in 2002. The business operating profit rose by 93% to USD 2.3 billion. The turnaround is completed.
2004 Zurich stays on course with a net income of USD 2.5 billion and a business operating profit of USD 3.1 billion, up 36% from 2003.
2005 Zurich reports a 30% increase of net income amounting to USD 3.2 billion. Also business operating profit is up 32% to USD 3.9 billion. Zurich introduces its new brand campaign «Because change happenz» which focuses on how Zurich helps its customers finding new solutions in a constantly changing world.
[edit] Global operations
[edit] North America
The US consumer market is served primarily by Farmers Insurance [1], the third largest personal lines property & casualty insurance group in America. Founded in 1928, the Farmers Exchanges and their subsidiaries, which are Zurich managed but not Zurich owned, operate in 41 states through a network of 17,000 exclusive agents and 1,100 independent agents.
The Chicago-based Zurich North America Commercial [2] is the third largest provider of commercial property-casualty insurance in North America, serving small business, mid-size markets and large corporate customers. In 2005, Zurich North America Commercial produced gross written premiums of USD 12.5 billion.
[edit] Europe
In Europe, Zurich's key markets are the United Kingdom, Germany, Switzerland, Italy and Spain.
[edit] International
Zurich's International Businesses division includes operations in Latin America, Asia Pacific and Southern Africa.
[edit] Scale
Today Zurich has offices in more than 50 countries and employs about 55,000 people worldwide. In 2005, Zurich increased its business operating profit (BOP) by 32% to USD 3,947 million.
[edit] Criticism
Zurich Financial Services settled a $171 million case relating to bid-rigging and price fixing. [1] "Businesses shopping for commercial insurance were deceived into believing they were getting the best deals available," said Abbott. "The whole anti-competitive scheme was an intentional smoke screen by several insurance players to artificially inflate premiums and pay improper commissions to those who brokered the deals." The states included in the settlement were Texas, California, Florida, Hawaii, Maryland, Massachusetts, Oregon, Pennsylvania and West Virginia. Zurich is also required to pay about $122 million [2] in refunds to commercial policyholders in a New Jersey class action lawsuit [3] settlement.
Zurich Financial Services settled a bid-rigging and improper "finite reinsurance" transactions probe. [4] Zurich Financial agreed to pay 153 million in restitution and penalties and agreed to a series of reforms. Zurich apologized and acknowledged that "certain of its employees violated both acceptable business practices and Zurich's own standards of conduct by engaging in improper bidding practices and the ‘finite reinsurance’ transactions described in the Assurance of Discontinuance." The states included in the settlement were New York, Connecticut and Illinois.
[edit] See also
[edit] References
- ^ Zurich, 9 States Settle Bid-Rigging Case for $171 Million : "Texas and eight other states have reached a $171 million settlement with Zurich American Insurance Co. relating to bid-rigging and price-fixing in the commercial insurance market."
- ^ Zurich American Implements Reforms, Pays Consumers Millions
- ^ Insurance Brokerage Antitrust Litigation Zurich Settlement : "This website provides general information on the Zurich class action settlement ."
- ^ Zurich Settles Bid-Rigging Probe : "Attorney General Eliot Spitzer and State Insurance Department Superintendent Howard Mills today announced an agreement with one of the world’s largest insurance companies to resolve allegations of bid-rigging and improper "finite reinsurance" transactions.."
[edit] External links
- Company website
