24
company pRoFILE ZuRIch IntERnatIonaL LIFE
undER thE spotLIght
The Zurich Financial Services Group, of which Zurich International Life
is an integral part, prides itself on a unique business model which sets
it apart from its offshore competitors
Zurich International Solutions
(‘ZIS’) is the hub for
many of the international
life insurance operations of
the longestablished Swiss
composite insurer Zurich
Financial Services Group
(Zurich). ZIS comprises:
n Zurich International Life
(ZIL), the Isle of Manbased
business
n Zurich International
Solutions Europe (ZISE),
the Dublinbased EU
PauL QuIrk, CEO, ZurICh InTErnaTIOnaL LIFE
how long have you been CEO?
I joined ZIL as CEO in 2007.
What is your career background?
Prior to joining Zurich I was managing director
at Friends Provident International. I originally
qualified as an actuary and have worked for a number of insurance
companies over the past 27 years in a variety of roles.
What do you see as the key issues facing the offshore life industry
over the next two to three years?
We need to continually ensure that our client solutions remain
appropriate in an increasingly regulated and complex world.
What have you set as the strategic direction of the firm?
To be the leading offshore provider in our chosen markets and to
increase our revenue through a strategy of profitable sustainable
growth in these markets over the next three years.
What are the key challenges facing you now?
The financial turmoil has damaged the confidence of investors and
above all presented challenges to intermediaries when advising their
customers. We must continue to think beyond product and work
with intermediaries to ensure our solutions meet the customer’s
real needs – transparency and certainty – in this uncertain world.
What makes your brand and company unique/special?
Our financial strength, our local presence (we have nine branches
worldwide) and our global network. We are a risk-adverse Swiss
insurance company.
how would you describe your company culture?
Every one of us is accountable for our own actions. We are
responsible for acting in ways consistent with our basic values of
integrity, customer centricity, sustainability, teamwork and excellence.
Daring to be different
crossborder company
n The international corporate
protection elements
of Zurich Life Insurance
Company (ZLIC).
For more than 25 years
these firms have been central
to the development of
a business model that is
very different to its offshore
competitors. It more closely
resembles a series of largely
independent businesses
focused on the needs of
specific regions, rather than
taking a single approach to
multiple markets, supported
by core services provided
by the global headquarters
on the Isle of Man.
Perhaps more than any
other offshore life office,
ZIS represents the clearest
evidence of evolution in
the offshore sector. Like
many of its contemporaries,
it started out life transacting
business on a wholly
crossborder basis, but this
has proved to be only the
startpoint rather than the
destination.
In 2008 ZIS was responsible
for delivering $478m
APE of new business which
represented 14% of the
total for Global Life, the
business segment of Zurich
to which ZIS belongs. At
the end of the year, ZIS
had funds under management
in excess of £4bn.
l Breaking the mould
ZIL, the main company
within ZIS, was originally
established as Eagle Star
International Life (ESIL) in
1982. It was the first life
company to be established
under the Isle of Man
Exempt Insurance Act of
1981, which paved the way
for the significant growth
in the offshore life sector,
with many of the household
names of today entering
the market during the
’80s and early ’90s.
In the ’80s, ESIL was one
of the fastest growing of
sales growth ’04 – ’08
the new offshore life offices
and spread its interests
to the Middle East, Asia
Pacific, Latin America and
parts of Europe. This bold
‘frontiersman’ approach led
to the development of
much of the infrastructure
that still exists in the various
subsidaries.
l Farewell to fly-drive
ZIL’s origins are firmly
rooted in the classic ‘fly
drive’ business model that
supports independent distributors
in, quite literally,
every part of the world.
But the firm was quicker
than most to spot the limitations
of flydrive in terms
of both the level of market
penetration that it is possible
to achieve and the
increasing levels of regulation
that were already evident
in markets like Hong
Kong by the late ’80s.
Creating subsidiary
companies and branches
was certainly costly in
terms of the establishment
and maintenance of a
regional infrastructure, but
this transition at an early
stage in the company’s
development ensured a
high proportion of wholly
regulated business and a
more robust basis for the
development of the business.
The ‘frontier’
approach of the early years
also proved to be impor
INTERNATIONAL ADVISER [www.international-adviser.com] AuguST 2009
£m
180
150
120
90
60
30
Single Premium
Regular Premium
0
’04 ’05 ’06
Source: Acuity, Zurich International Life
’07
’08
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