Geneva - Zurich Financial Services announced on Thursday that its profit in the first quarter dropped to 362 million dollars, a decrease of 75 per cent compared to the same period last year.

The company said the recession was impacting its business volume and reduced its income from investments.

"We have shown continual quarter-on-quarter improvement since the financial crisis began," said James Schiro, the insurer's CEO.

Switzerland's largest insurer said realized losses and impairments reached 1 billion dollars, driven in part by equity write-downs.

ZFS said it had a capital surplus with a solvency position of 157 per cent.

The Swiss company last month agreed to buy American Insurance Group's car insurance unit in the United States for 1.9 billion dollars.

ZSF reported a 3 billion dollar profit in 2008, which was a 47 per cent decline compared to the previous full-year result. (dpa)