Investring.com -- Zurich Insurance Group (SIX:ZURN) reported strong first half results with record operating profits and a strong trajectory toward exceeding its 2025 targets. Despite this, concerns about increased natural catastrophe losses have put a damper on the company's share performance.
At 5:51 am (0951 GMT), Zurich Insurance was trading 2.9% lower at CHF 451.60.
Natural catastrophe losses totaled 2.4% compared to 1.8% in the first half of 2023.
Zurich's group business operating profit (BOP) reached $4.0 billion, a 7% increase from the previous year and the highest ever recorded. The return on equity (BOPAT ROE) hit a record 25.0%, while net income attributable to shareholders surged 21% to USD 3.0 billion.
This performance was driven by results across all key segments: Property & Casualty (P&C), Life, and Farmers.
Zurich's P&C segment reported a BOP of USD 2.2 billion, up 3% on a like-for-like basis, with a combined ratio of 93.6%.
The commercial P&C sector maintained its high profitability, boasting a combined ratio of 91.4%, while retail P&C improved from the latter half of 2023 despite significant weather-related impacts.
The Life business achieved a record BOP of USD 1.0 billion, fueled by strong growth in Europe and increased new business premiums. This segment benefited from higher assets under management and favorable claims experiences.
Farmers also reached new heights, with its BOP climbing to USD 1.1 billion, a 12% increase from the previous year. Despite catastrophe losses, the Farmers Exchanges' combined ratio improved significantly to 95.2%.