Zurich Financial seeks CEO, confirms losses
Zurich Financial Services has confirmed nearly $400 million in losses and says it has yet to replace the embattled chief executive, Rolf Hüppi.
At a news conference in Zurich on Thursday, Hüppi – who is also chairman – said a nominating committee looking to find his replacement as CEO was not also seeking to replace him as chairman.
“The nominating committee is now very busy looking for a new CEO. It has no time for other things,” he said.
“I will serve as chairman of the board as long as the board wants me to,” he added.
Avoiding conflicts
Hüppi said he had stepped down from the nominating committee to avoid any possible conflicts of interest.
Zurich on Thursday confirmed the preliminary figures it announced ten days ago, which showed a group loss of $387 million (SFr651 million), mainly as a result of claims relating to the terrorist attacks in the United States on September 11.
Hüppi, who has been under fire for holding the dual mandate of chairman and CEO, described 2001 as “horrendous” for both the group and the insurance industry in general.
Share price
The Zurich share price tumbled by about 60 per cent last year. It fell slightly during Thursday trading to SFr363 in the early afternoon.
Hüppi, who has also been criticised for being autocratic and for using company aircraft privately, said 2001 had been a year of transition during which Zurich had become more focused by selling off underperforming or loss-making businesses.
In 2001, Zurich completed a $5 billion divestment programme, which helped it to reduce by more than $1 billion its debt, built up in an aggressive drive by Hüppi, who gave the Zurich Insurance company its global size.
However, poor financial markets during the year pushed shareholders equity down $2.9 billion to $17.7 billion.
The group did not repeat its 2002 expectations, set out in December, but said its outlook for the year remained cautious.
Hüppi said he expected premium growth to be about ten per cent, with Zurich having a strong portfolio and well positioned to take advantage of favourable conditions.
“But we remain cautious in light of the current uncertain risk and economic environment,” he commented.
by Robert Brookes
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