Zurich Insurance beats operating profit expectations, led by property and casualty arm

[ZURICH] Zurich Insurance beat market expectations for annual operating earnings on Thursday (Feb 19), fuelled by a better-than-expected performance in its property and casualty business, responsible for more than half of its gains.

Europe’s second-largest insurer by market capitalisation reported an operating profit of US$8.9 billion across its businesses, above analysts’ median estimate of US$8.8 billion, based on a poll provided by the company.

The property and casualty unit, Zurich’s core business that led the broad-based consensus beat, reported an operating profit of US$5.1 billion, benefitting from higher insurance revenue and an improved combined ratio of 92.6 per cent.

Its other main branches, life insurance and farmers’ divisions, reported operating profits of 0.6 per cent and 1.4 per cent, respectively, above analysts’ expectations.

The Swiss insurer is on track to achieve or even exceed its 2027 targets, chief executive officer Mario Greco said.

The company said in 2024 it was aiming for a core return on equity of more than 23 per cent between 2025 and 2027, and for cumulative cash generation exceeding US$19 billion in the same period.

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Zurich Insurance said it would propose a dividend of 30 Swiss francs a share, in line with analysts’ expectations. REUTERS