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Zurich Insurance Posts Record First-Half Operating Profit

Company on Track to Beat 2025 Targets

Zurich Insurance reported a record first-half operating profit on Thursday and said it was on track to beat its 2025 targets.

The Swiss insurer posted a profit of CHF 4.2 billion ($4.3 billion) in the first six months of the year, up 14% from the same period last year. The company's net income rose 12% to CHF 3.6 billion. Zurich Insurance said the strong results were driven by a combination of factors, including strong underwriting performance, investment gains, and a favorable claims environment.

The company's combined ratio, a measure of underwriting profitability, improved to 96.6% from 97.5% in the first half of 2022. Zurich Insurance said the improvement was due to lower claims frequency and severity in its property and casualty business.

Zurich Insurance also benefited from strong investment gains in the first half of the year. The company's investment portfolio generated a return of 5.7%, which was above its target of 4%. The company said the gains were driven by a strong performance in its fixed income and private equity investments.

The favorable claims environment also contributed to Zurich Insurance's strong results. The company said it had experienced lower-than-expected claims in its property and casualty business. This was due, in part, to the mild winter in Europe and the lack of major natural catastrophes.

Zurich Insurance said it was on track to beat its 2025 targets. The company is targeting an annualized return on equity of 12% to 14% and a combined ratio of 93% to 95% by 2025. The company said it was confident in its ability to achieve these targets, given its strong financial performance and its focus on operational efficiency.