Zurich Insurance Group has announced a robust performance for the first half of the year, surpassing market expectations with substantial gains in profit. The company’s operating profit reached $4 billion, exceeding the consensus estimate of $3.8 billion. Additionally, net income surged by 21% to $3 billion compared to the same period last year.
Chief Executive Officer Mario Greco highlighted that the favorable market conditions have presented numerous opportunities for profitable growth. “Market conditions have remained more favorable than anticipated, and we observe today many opportunities to profitably grow the business,” Greco stated.
In particular, Zurich’s life insurance division reported a record operating profit of $1 billion, marking a 12% increase driven primarily by growth in Europe. The property and casualty (P&C) segment also showed positive results, with a 3% increase in operating profit to $2.22 billion. This division achieved a combined ratio of 93.6%, reflecting its efficient operations.
Key financial figures for Zurich Insurance include:
Swiss Solvency Test Ratio: 232%
P&C Insurance Revenue: $21.45 billion
Farmers Operating Profit: $1.12 billion
Farmers Gross Written Premiums: $14.26 billion
In addition to its strong financial performance, Zurich has been active in expanding its global footprint. Earlier this year, the company announced its intention to acquire American International Group’s global travel insurance business for $600 million. This acquisition is expected to be finalized by the end of 2024. Furthermore, Zurich has taken a significant step into the Indian market by purchasing a majority stake in Kotak General Insurance Company Ltd., making it the first foreign insurer to enter India following recent regulatory relaxations.