Zurich sets aside €256m for losses

Dublin: Zurich Financial Services has set aside €256 million more to meet potential losses arising from its commercial property loans in Ireland and Britain.

It said the group has carried out a further review of its property development loan books.

The extra money will be included in its financial results for the second quarter of this year.

The company found after its review that it had to increase provisions for its British loans by €194m as the value of loan redemptions fell.

Zurich also increased its provisions in Ireland by €62m – bringing the total provisions on the Irish portfolio to half of the original value of the loans.

The insurer had halted new lending for commercial property developments in Ireland and significantly cut back loans in Britain over 2009.