(by Ameli Berksman)

Zurich Financial Services (ZFS) expects up to $150 million losses in net reinsurance caused by the second largest hurricane to hit U.S. in recent years Charley. Even expected costs did not decrease investors’ interest for it.

The group increased its return in equity market, its measure rose to 16.8 per cent in 2004 from 12.1 per cent for the entire 2003.

Net income boosted to $1.45 billion for the first half compared with $752 million in 2003. It has even exceeded analysts’ forecast of $1.38 billion. Business operating profit lifted 47 per cent to $1.9 billion. Earnings per share have risen 78 per cent to SFr12.67. Thursday morning trade showed shares to be up nearly 3 per cent at SFr180.50.

Group’s Life Insurance unit has also been improved from a drop in administrative expenses. Its net income rose 3 per cent to $393 million meanwhile gross written premiums and policy fees dropped 10 per cent due to the sale or exclusion on non-core businesses.