Zurich Insurance's spending cuts are bearing fruit. Shareholders are reaping the gain.
The Swiss insurer's business operating profit climbed 20 percent to $4.6 billion, Zurich said in a statement on Thursday. The company is on track to hit its cost-cutting target for this year, it said.
Primarily investors are benefiting from the improvement: Zurich is proposing a dividend of 19 francs per share, which is 1 franc more than in 2017. CEO Mario Greco wants to save $1.5 billion over three years. Besides more favorable damage claims versus premiums, the cost cuts were the main factor in the profit rise last year.
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The insurer also said it will propose two new board directors – Michael Halbherr and Barry Stowe – at its annual meeting in April. Halbheer is a tech entrepreneur who sold his firm to Nokia 13 years ago. Since then, he is an investor and adviser for tech start-ups.
Stowe led the North American arm of Prudential until year-end. At the British insurer, Stowe worked with Tidjane Thiam, who ran Prudential until leaving for the top job at Credit Suisse four years ago.
