Zurich Insurance Group shares slump by 5%

Zurich Insurance Group shares slumped yesterday after reporting a profit that missed analyst estimates on a decline in earnings from general insurance. The Swiss firm is considering a bid for the UK’s RSA Insurance Group.

The shares dropped 5% to 283.3 Swiss francs, the biggest loss since April 7 and wiping 2.2bn francs (€2.06bn) off the firm’s market value. Net income in the second quarter unexpectedly fell to $840m (€768m) from $848m a year earlier, Switzerland’s largest insurer said yesterday.

“The profitability of our general insurance business was adversely affected by large losses, particularly within global corporate and the UK, and a higher expense ratio,” chief executive Martin Senn said.