ZURICH, May 14 (Reuters) - The new Chief Executive of Zurich Financial Services, Europe's third largest insurer, said on Tuesday that he would not give financial markets new earnings guidance in the near future. "I would not expect earnings guidance any time soon," James Schiro told Reuters in a telephone interview. He declined to comment when asked whether there would be no news until the first-half report due in early September.
He added the firm, which made a loss in 2001 and whose outgoing CEO Rolf Hueppi earlier this year had to scrap a 10-15 percent profit growth target, would tread a more cautious path on telling markets about future earnings trends.
"In the environment today...of so many fragile external factors, it is difficult to provide earnings guidance. More and more companies are retreating from providing guidance and we ought to be in the lead of that retreat," he said.
"You do not make good management decisions when you are managing towards a public earnings guidance," he added.
Schiro acknowledged that Zurich did not have a good record of providing earnings guidance, implying that his precedessor had been too bullish on the outlook for Zurich.
Hueppi is exiting as CEO and chairman, bowing to analyst and investor sniping over his autocratic rule, a plunge in 2001 profit, strategic bungling, ill-fated Internet projects and for privately using Zurich corporate aircraft.
Commenting on the announcement relating to Rotherham's bid for promotion, club Chairman, Mike Yarlett, said:
Unexpected reserve additions, a drop in investment earnings, write-downs on investments and large insurance losses tied to last September's World Trade Center collapse hit Zurich profit in a year when Hueppi had to warn on earnings four times.
(C) Reuters Limited 2002.
Sources: REUTERS NEWS SERVICE , REUTERS NEWS SERVICE - WESTERN EUROPE , REUTERS NEWS SERVICE 14/05/2002
