Zurich Insurance profit ticks up in "outstanding" first half

Zurich Insurance Group AG on Thursday reported top and bottom-line growth for its first half year.

The Zurich-headquartered insurer reported post-tax net income of USD3.28 billion for the six months ended June 30, up 1.9% from USD3.22 billion the prior year.

Attributable net income rose 1.3% to USD3.07 billion, and the business operating profit increased 6.0% to USD4.23 billion. Also, Zurich Insurance's core return on equity grew to 26.3% from 25.2%.

Core earnings per share rose 6.8% to USD21.68 from USD20.30, while basic and diluted EPS rose in USD but decreased in CHF. Basic EPS decreased 0.7% to CHF18.51, about USD22.97, and diluted EPS decreased 0.7% to CHF18.37.

The company's insurance revenue rose 4.3% to USD29.97 billion from USD28.74 billion. The insurance service result increased 13% to USD3.52 billion.

Zurich Insurance's Property & Casualty business saw gross written premium & policy fees rise 7%, or 5% like for like, to USD27.14 billion from USD25.34 billion.

P&C's combined ratio improved to 92.4% from 93.6%, "driven by a strong recovery in the Retail business and further margin improvement in Commercial Insurance", and its business operating profit rose 9% or 10% LFL to "an all-time high" of USD2.43 billion.

Meanwhile, the Life business "sustained the previous year’s record level" of a USD1.03 billion BOP, down 1.6% on-year in USD but up 2% on an LFL basis. Finally, the Farmers BOP rose 3.5% to USD1.15 billion, "the strongest half-year BOP ever".

"I am proud of these outstanding results, which reinforce the strength of our underwriting discipline and operational execution," commented Chief Executive Officer Mario Greco. "This performance underscores our ability to effectively manage our diversified portfolio, strong capital position, and high cash conversion to deliver continued industry-leading value to our shareholders, even in a volatile market environment.

"P&C posted profitable growth, supported by favourable pricing trends, focused management actions and superior risk selection. The Life business maintained last year’s record performance, with continued premium expansion and rising demand for protection solutions. Farmers Exchanges reported excellent underwriting results and increased its policy count for the first time in more than a decade."