Zurich heading for fourth quarter net loss – Moody’s<\/p>\n
Ratings agency says loss will hit group\u2019s key financial ratios<\/p>\n
Zurich is heading for a fourth quarter net loss that will negatively affect the group\u2019s earnings coverage and its capital and financial leverage, according to ratings agency Moody\u2019s.<\/p>\n
The Swiss-based insurer last week issued a profits warning that its fourth quarter general insurance business will show an operating loss of about $100m, hit by the winter storm losses.<\/p>\n
It said the fourth quarter will also see some $475m restructuring costs and a $230m goodwill write off.<\/p>\n
That fourth quarter GI loss follows a third quarter operating loss of $183m hit by the Tianjin explosions in China.<\/p>\n
Zurich GI operating profit<\/p>\n
But Moody\u2019s said that, even adjusting for these losses, the GI result has been deteriorating for several quarters.<\/p>\n
Moody\u2019s said it expects the fourth quarter loss to result in a group net profit of about $2bn for the full year 2015, pushing down earnings coverage to about six times in 2015 from 9.4 in 2014.<\/p>\n
Moody\u2019s said that Zurich\u2019s current acquisition plans could increase the group\u2019s leverage which, with no improvement in profitability, "would negatively pressure the group\u2019s credit and ratings".<\/p>\n
Source: Moody’s<\/p>\n","protected":false},"excerpt":{"rendered":"
Zurich heading for fourth quarter net loss – Moody’s Ratings agency says loss will hit group\u2019s key financial ratios Zurich…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-335","post","type-post","status-publish","format-standard","hentry","category-financial-news"],"_links":{"self":[{"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=335"}],"version-history":[{"count":0,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/335\/revisions"}],"wp:attachment":[{"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sure2insure.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}