Zurich, utile primo semestre 2024 record a 4 miliardi di dollari (+7%); Greco: "eccellente performance"

Nel primo semestre del 2024, Zurich ha segnato un record registrando un utile a 4 miliardi di dollari (+7%), rendimento del capitale proprio BOPAT ROE pari al 25,0%, il più alto di sempre. L'utile netto attribuibile agli azionisti è salito del a 3,0 miliardi di dollari (21%). Il BOP del ramo Danni, pari a 2,2 miliardi di dollari, è aumentato del 3% su base omogenea, con un combined ratio del 93,6%. I rendimenti del ramo Danni commercial si mantengono molto interessanti, con un combined ratio del 91,4% e un combined ratio del 96,4% per i rami Retail. Il BOP del ramo Vita ha raggiunto il livello record di 1,0 miliardi di dollari, grazie alla forte crescita in Europa. Posizione patrimoniale molto solida, con un coefficiente Swiss Solvency Test pari al 232%.

Le parole di Mario Greco, Group Chief Executive Officer

“Sono molto soddisfatto di questi risultati, che riflettono un'eccellente performance in tutti i nostri business. Ciò ci consentirà di continuare a garantire forti rendimenti ai nostri azionisti. Le condizioni di mercato sono rimaste più favorevoli del previsto e oggi osserviamo molte opportunità per far crescere il nostro business in modo redditizio.”

Zurich, i risultati del primo semestre 2024

The P&C business delivered a strong BOP of USD 2.2 billion, up 3% in local currency. This was underpinned by increased insurance revenue and improved investment results, while EMEA and North America experienced higher weather and catastrophe losses. Overall, insurance revenue increased by 6% on a like-for-like1 basis, reflecting the Group's continued focus on profitable growth. Natural catastrophe losses totaled 2.4% compared to 1.8% in the first half of 2023. Zurich’s market-leading Commercial Insurance business maintained its high level of profitability with a combined ratio of 91.4% including catastrophe losses of 3.0 percentage points, delivering an exceptional BOP contribution of USD 1.8 billion. The U.S. mid-market and accident & health businesses continued to show strong top-line growth.

In Retail, gross written premiums grew 10% over last year with continued rate increases and strong new business sales in EMEA, greater travel business in Asia Pacific, and higher property, affinities, and motor sales in Latin America. The combined ratio of 96.4% increased 0.6 percentage points compared with the first half of 2023, reflecting higher weather and catastrophe losses. Compared with the second half of 2023, it has improved by 7.3 percentage points, following lower catastrophe losses, underwriting actions and rate increases.

Zurich's Life business reported a record performance, achieving the highest ever BOP for a first half-year, up 12% to USD 1 billion, with a strong contribution from EMEA. This performance benefited from a higher contractual service margin (CSM), increased assets under management and growth in short-term protection. New business premiums4 grew by 5% on a like-for-like1 basis driven by strong sales in unit-linked, primarily through Zurich’s bank distribution partners, and higher sales of protection products in Japan and the UK.

Farmers reported the highest ever BOP of USD 1.1 billion for the first six months, a 12% increase compared with the prior-year period. Farmers Management Services’ (FMS) BOP was up 10%, driven by continued premium growth at the Farmers Exchanges, 2 as well as a higher margin year-on-year. The combined ratio of 95.2% for the first half of the year was 16.4 percentage points lower than prior year, driven by the earn-through of higher premium rates and lower expenses, and despite significant catastrophe losses. Farmers Re compared favorably to the prior year reflecting the improved underwriting at the Farmers Exchanges. The Farmers Exchanges surplus ratio was 34.5% following the maturing of a tranche of surplus notes in May 2024.

P&C business operating profit (BOP) of USD 2,224 million was 1% lower than in the previous year in U.S. dollars, but up 3% in local currencies. The higher insurance revenue and a strong investment result were partially offset by a higher combined ratio, which increased 0.7 percentage points year over year to 93.6%, mainly driven by catastrophe losses. The Group continues to maintain a cautious approach to reserving while implementing actions to address the profitability of the retail business.

Gross written premiums grew 3% in U.S. dollars and on a like-for-like1 basis, but growth was impacted by less favorable commodity prices in the U.S. crop business. Excluding crop, gross written premiums increased 6%. Insurance revenue rose 6% in U.S. dollars and on a like-for-like1 basis, benefiting from the earn-through of growth in gross written premiums. The Group achieved price increases of 5% in the first half of the year which is in line with Q1-24.

In Commercial Insurance, gross written premiums remained stable with an overall rate increase of 5% compared to the prior year. Gross written premiums declined 2% in North America, driven by declining crop insurance volumes. In EMEA, gross written premiums increased 7%. The combined ratio of 91.4% for the first half of the year increased 0.3 percentage points year over year, including 0.5 percentage points of higher catastrophe losses, partially offset by more favorable prior year development.

In Retail, gross written premiums increased 10% supported by rate changes of 5% during the first six month of the year. EMEA showed strong top-line growth of 9% due to further rate strengthening driven by an 8% increase in motor rates and overall net new business. Zurich remains committed to its goal of strengthening customer loyalty and establishing its position as the insurer of choice. Over the past six years, the Group has consistently improved its transactional net promoter score (TNPS), a measure of customer satisfaction. That strong momentum has continued into the first half of 2024 with a 3 percentage points increase. The customer retention rate is up by 2 percentage points despite rate increases. This contributed to record growth in the Group’s Retail customer base with 1.9 million net new customers. Zurich continues to secure opportunities for future Retail growth. As part of these efforts, the Group successfully closed its acquisition of a 70% stake in India’s Kotak Mahindra General Insurance, and has announced the agreement to acquire AIG’s global personal travel insurance and assistance business.

Life BOP was up 12% to USD 1,048 million, an all-time high for the first half. Growth was primarily driven by EMEA, which benefited from higher fees, investment result, favorable experience in Switzerland, the UK and Italy, and a non-recurring benefit of approximately USD 50 million related to the non-completion of the disposal of a legacy Life back book in Germany. BOP also increased in Asia Pacific driven by a higher contractual service margin (CSM) and more favorable claims experience.

Life insurance new business premiums4 increased 3% in U.S. dollar terms and 5% on a like-for-like1 basis to USD 8,510 million, driven by Zurich’s preferred lines of protection and unit-linked.

Protection new business premiums increased 18% year-on-year on a like-for-like1 basis to USD 3,074 million, driven by growth in EMEA and Asia Pacific, most notably in the UK and in Japan. Insurance revenues for short- term protection products increased 12% on a like-for-like1 basis driven by strong sales in Latin America.

Unit-linked new business premiums increased 23% year-on-year on a like-for-like1 basis to USD 4,599 million. Bank distribution was a key driver of growth, particularly in Latin America, through the joint venture with Banco Santander, and in EMEA through the joint venture with Banco Sabadell and distribution agreement with Deutsche Bank. Fee revenue generated by investment contracts, which are mainly written in EMEA, grew 9% driven by higher assets under management resulting from favorable market movements and net inflows.

Growth in protection and unit-linked more than offset lower new business premiums in savings, which saw exceptional sales volumes in Spain in the prior-year period.

The Farmers Exchanges, which are owned by their policyholders, reported gross written premiums 5% higher than the prior year driven by continued pricing actions. Gross earned premiums increased by 6% over the same period.

The Farmers Exchanges combined ratio of 95.2% was 16.4 percentage points lower than the prior year driven by the earn-through of higher premium rates and lower expenses, and despite significant catastrophe losses. The continued strong focus on pricing led to an earned rate impact of 18% for the period.

The surplus ratio improved by 0.9 percentage points to 34.5%, with organic surplus growth partially offset by a tranche of surplus notes which matured in May 2024.

Farmers BOP rose 12% compared with the prior-year period. The Farmers Management Services (FMS) result was supported by higher gross earned premium base of the Farmers Exchanges2, increased margin and lower operating expenses. Farmers Re compared favorably to the prior year following improved underwriting at the Farmers Exchanges2 and a higher participation rate of 10.0% compared with 8.5%. This was partially offset by lower BOP from Farmers Life reflecting the completion of the reinsurance agreement to cede its in-force individual life portfolio to Resolution Life in August 2023.

Capital position: as of June 30, 2024, Zurich’s Swiss Solvency Test (SST) ratio is estimated at 232%3 and remains well in excess of the Group’s target level of at least 160%. This compares with 234% as of January 1, 2024.

Financial highlights (unaudited): The following table presents the summarized consolidated results of the Group for the six months ended June 30, 2024, and June 30, 2023, and the financial position as of June 30, 2024, and June 30, 2023, respectively. All amounts are shown in U.S. dollars and rounded to the nearest million unless otherwise stated, with the consequence that the rounded amounts may not add up to the rounded total in all cases. All ratios and variances are calculated using the underlying amounts rather than the rounded amounts. This document shouldn't be read in conjunction with other financial reports published by Zurich Insurance Group on zurich.com. In addition to the figures stated in accordance with International Financial Reporting Standards (IFRS), the Group uses business operating profit (BOP), new business measures and other performance indicators to enhance the understanding of its results. Details of these measures are set out in the separately published Glossary. These should be viewed as complementary to, and not as substitutes for the IFRS figures.