Following a review of its general insurance business in Germany, Zurich has announced that it is strengthening its claims provisions, primarily in the long-tail liability lines.
At the same time, the group intends to write-off a portion of its deferred acquisition costs.
At current estimates, these adjustments total around $550 million before tax and $390 million after tax.
Zurich says its leadership is disappointed with the significant financial adjustment needed and has engaged external experts to validate remedial actions being taken in Germany.
The group’s financial results for the first nine months 2012 are due out on 15th November 2012.