Zurich benefits from ‘highly attractive’ market
Rates continue to respond well to loss-cost trends
Zurich Insurance says that commercial P&C returns remain “highly attractive” despite market flattening, and in some cases softening, across a range of lines.
The group reported business operating profit (BOP) up 7% to a record $3.99bn for the first six months of this year. The firm also delivered its highest-ever return on equity of 25%. Net income attributable to shareholders rose 21% to $3.03bn.
P&C BOP of $2.22bn is up 3% on a like-for-like basis, with a combined ratio of 93.6%. Commercial P&C delivered an excellent combined ratio of 91.4% while retail chalked up a combined ratio at 96.4%.
“The market environment for commercial P&C remains highly attractive, with rates responding well to loss-cost trends. Retail and SME P&C results show improvement over the second half of 2023, despite significant weather events. This was driven by strong rate increases, supported by improved customer satisfaction and retention,” said the group.
CEO Mario Greco added that he is pleased with the “excellent” results across all of Zurich’s businesses. “Market conditions have remained more favourable than anticipated and we observe today many opportunities to profitably grow the business,” he said.
In commercial insurance, gross written premiums remained stable, with an overall rate increase of 5% compared to the prior year first half.
Commercial gross written premiums declined 2% in North America, driven by falling crop insurance volumes. Gross written premiums increased 7% in EMEA.
The commercial operation’s combined ratio of 91.4% for H1 2024 increased 0.3 percentage points year over year, including 0.5 percentage points from higher catastrophe losses, partially offset by more favourable prior-year development, reported Zurich.
