Zurich has second best first half

15 August 2022

Zurich has reported a 25% jump in first-half operating profit to $US3.39 billion ($4.76 billion) – a result only beaten by its $US3.55 billion ($4.99 billion) record first-half in 2008 – while its property & casualty (P&C) business had its best ever combined ratio, improving 2 percentage points to 91.9%.

P&C gross written premiums rose 13% to $US23.8 billion ($33.43 billion) in the first half while operating profit rose 32% to $US2.06 billion ($2.9 billion), driven by 8% top-line growth.

Price increases were around 6% in the first half, led by commercial insurance where the rate was around 9%, with the rise “remaining at a largely stable level and above claims cost inflation,” Zurich said.

Life operating profit rose 13% to $US903 million ($1.27 billion) as covid-related losses dropped by more than $US100 million ($140.43 million).

Group CEO Mario Greco says the insurer is on track to beat all its targets.

“In property & casualty, we continued to see the benefits of consistent disciplined proactive portfolio management,” Mr Greco said.

“Growth continued to be supported by significant rate increases in the group’s commercial business across all regions, with these trends expected to continue into 2023.”

Natural catastrophe and weather claims were slightly above expectations but significantly lower than in the prior year, and Asia Pacific experienced a strong rebound in the travel insurance business – though Life operating profit in the region fell 6% as the spread of the covid Omicron variant led to an increased amount of hospitalisation claims in Japan.

Zurich also announced a 1.8 billion Swiss francs ($2.68 billion) share buyback.