Mr. Schiro also cautioned that the industry cannot assume that some of the favorable factors it has seen will last, particularly on the property side where rates have been dipping.

The Zurich, Switzerland-based insurer's business operating income also rose for the quarter, up 21 percent to reach $942 million compared with the 2003 first quarter. The company attributed the improved earnings to a number of factors, including its cost-cutting initiatives, fewer large claims and a lack of large one-off charges during the quarter.

Zurich's latest earnings report shows a continuing turnaround for the once-beleaguered company. In February, the insurer reported $2.12 billion in net profit for full-year 2003?in contrast to a record $3.36 billion loss it reported during 2002 caused by restructuring provisions and falling investment income.

For its latest quarterly results, Zurich posted $11.1 billion in gross written premiums in its general insurance (property-and-casualty) business, a 14 percent rise from one year ago. The combined ratio also improved to 96.9, down 1.2 points from the corresponding period in 2003.

The net income for the general insurance unit, which accounted for more than three-fourths of premiums during the first quarter, reached $458 million, up 42 percent compared to one year ago.

On the life-insurance side, Zurich also saw an improvement in net results, posting $223 million in profit?compared with a loss of $23 million a year earlier?despite a 14 percent drop in gross written premiums and policy fees to $3.1 billion.

On the investment front, Zurich reported $1.7 billion in investment income for the first quarter, down slightly from a year earlier because of divestment of some life-insurance operations during the second half of 2003, the company said.

In its Farmers Management Services unit, Zurich earned $177 million in net income, while business operating profit rose to $276 million. These results were helped by higher premiums at the Los Angeles-based Farmers P&C Group Companies, which Zurich manages but does not own, the company said.

Commenting on the results, Mr. Schiro said the improving numbers reflect Zurich's "ability to manage our businesses to profitability."

"We remain committed to disciplined underwriting in line with sound pricing and a tight grip on cost and expenses," Mr. Schiro said.

Zurich Financial Services is an insurance-based financial services provider with key markets in North America and Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland, and has offices in more than 50 countries and employs some 62,000 people.