14th August 2022

Zurich reports 25% rise in first-half operating profit, on track to beat all targets

Highlights are:
-Group business operating profit(BOP) rises to $3,393m, the highest since 2008
-Property and Casualty(P&C) BOP up 32% to $ 2,055m with record-low combined ratio of 91.9
-Life BOP rises 13% to $903m
-More than 850,000 net new retail customers added in first half
-Net income attributable to shareholders up 1% to $2,204m, despite adverse effects from financial markets
Very strong capital position with Swiss Solvency Test (SST) ratio at 262%
-Special share buyback of approximately CHF1.8bn to offset expected earnings dilution from German life back book transaction
Group ceo Mario Greco comments “We are on track to beat all our targets for the second successive three-year cycle. This is particularly remarkable because the last three years have brought unprecedented and unexpected challenges. These results show our agility and our commitment to deliver results, no matter what happens in the markets.
Over the last six years, we have changed our culture and built capabilities to transform Zurich into a leaner and more agile business. This has steered us through the difficult conditions of the past three years. Since 2016, we have set about changing the structure of our organisation. We have refocused our commercial business and strengthened technical expertise. We have changed the portfolios to reduce their volatility and we consolidated major market positions. We have raised customer and employee satisfaction by using data to make better decisions and provide better experiences. We have created a diverse and highly qualified leadership team and we have become one of the most sustainable insurers.
Our first-half 2022 results show the solidity of our business and the value of our mid-term transformation. The P&C business reported its best ever combined ratio, with continued robust top-line growth. Our Life business also continued to produce excellent results with one of the strongest ever performances for operating profit despite the adverse impact of capital markets and headwinds from currency movements. The planned sale of life and pension back books in Italy and Germany will further reduce the capital intensity of our business and will increase our flexibility.
As we prepare to present our plans for the next three years at our Investor Day in November, I am confident that we are well placed to further lead the transformation of the industry and continue to reward our shareholders well.
I would like to thank all our employees and our distribution partners for their great effort. The second successful achievement of all our three-year targets is absolutely to their credit.”

Zurich Trends(621 articles)

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