Zurich Car Insurance Claims
Zurich American Insurance Company is a subsidiary of Zurich Financial Services AG, an internationally renowned insurance-based financial services group, headquartered in Zurich, Switzerland. This company is a major provider of casualty and commercial property insurance in the US and Canada and deals with businesses ranging from medium sized to huge international conglomerates. The company offers insurance coverage for general liability, workers’ compensation, inland marine, umbrella and commercial auto, as well as claims management and risk consulting services.
The Farmers Insurance Group, managed by Zurich, is the third largest casualty and personal property insurance company in the US. This company operates via a network of exclusive and independent agents in 41 states of the US.
Zurich North America is based in Chicago. It is North America’s third largest casualty and commercial property insurance provider for small, medium and large commercial and corporate clients. Zurich Services Corporation provides risk engineering services in the USA.
Other U.S. companies in the Zurich stable include Zurich Holding Company of America, Inc in Illinois, Centre Group Holdings in New York, Zurich Direct Underwriters (formerly known as the Universal Underwriters Group) in Kansas, Farmers New World Life Insurance Company in Washington and Kemper Investors Life Insurance Co, also in Washington.
History of Zurich Financial Services AG
Zurich Financial Services AG began in 1872 as a subsidiary of Schweiz Marine Insurance Company. Three years later, the company was renamed Zurich Marine and Accident Insurance. In 1894, its name was changed again to Zurich General Accident and Liability Insurance.
When Zurich came to America in 1912, it was the first foreign insurance company to begin operations in the USA. This company acquired many international companies over a period of time and, in 1988, purchased the American insurance company, Farmers Group Inc, for $18.6 billion.
Financial History of Zurich Financial Services AG
Zurich’s main areas of activity are in Europe and North America. It is the 2nd largest commercial general liability and the 4th largest commercial casualty and property insurance company in North America.
In 2005, Zurich North America’s gross written premiums amounted to $12.5 billion.
Zurich Financial Services Group reported healthy financial results for the six months ended June 30, 2010, especially for its holdings in Farmers and Global Life. Its business operating profit was $2.3 billion, net income $1.6 billion, total volume $34.9 billion and shareholders’ equity $28 billion.
A M Best Co, the international insurance ratings agency, rates Zurich as A (excellent).
Legal Concerns for Zurich
The Zurich group of companies has been the subject of various legal suits.
- Zurich Financial Services was involved in a bid rigging and price fixing suit in 2006. The insurance services company settled in the amount of $171 million which was paid to nine American states.
- A settlement of $122 million was repaid to commercial policyholders as refunds in a class action suit filed in New Jersey.
- In another case, the states of New York, Illinois and Connecticut filed suit against Zurich Financial Services for improper finite reinsurance deals and bid rigging. This suit was settled when Zurich paid $153 million in penalties and restitution and agreed to certain reforms within its business operations and procedures.
- Zurich Capital Markets paid a settlement of $16.8 million to the United States Securities and Exchange Commission in 2007 for assisting certain hedge funds to disguise their identities when they traded in mutual fund shares.
