Zurich Insurance has said there is more to do in terms of improving efficiency in its business although the group is on track to meet key financial targets it has set for 2014-2016.

Europe’s fifth biggest insurer said it was growing operating earnings and had made substantial progress this year towards its goal of achieving an operating profit after tax return on equity (ROE) of 12-14 per cent. The ratio was 11.8 per cent in the first nine months of this year.

Last year, Zurich lowered its ROE target from the previous 16 per cent, reflecting the impact of low interest rates, which have eaten away at investment returns.

The insurer said it still needed to make more progress on improving operating efficiency across the business, reducing its loss-ratios in its general insurance arm. It aims to achieve quarterly operating profit of at least $350 million in its Global Life business by the start of 2016.

Zurich is set to hold an investor day with a focus on its farmers business and its North America commercial business, which together account for more than 40 per cent of the insurer’s earnings.

Reuters