Zurich Posts Upbeat Half Yearly Results; Profits Up, Cost Savings Paying Off

Insurance giant Zurich has just posted its latest financials, with a healthy increase in operating profits and a round of cost savings also showing a good impact on the bottom line. There was a strong performance on life insurance too, which may be slightly unfashionable, but for many consumers remains an essential purchase. Here’s the press info;

  • Business operating profit (BOP) up 12% to USD 2.4 billion and first half net income after tax attributable to shareholders up 19% to USD 1.8 billion
  • Well positioned to deliver on 2017 to 2019 financial targets with approximately USD 900 million in cost savings achieved, a BOPAT ROE of 12.3%, an estimated Zurich Economic Capital Model (Z-ECM) ratio of 134%1 and cash remittance levels on track to achieve in excess of USD 9.5 billion target
  • Property & Casualty (P&C) combined ratio improved by two percentage points to 97.5% with improved current accident year loss ratio and lower administration expenses
  • Strong Life performance with BOP up 17% from portfolio growth, reduced costs and favorable foreign exchange developments; like-for-like growth in APE of 11%, with one percentage point expansion in new business margin to 26.4%
  • Farmers Exchanges2 achieved a 6.6 percentage point combined ratio improvement while growing its continuing operations gross written premiums by 4.7%

Group Chief Executive Officer Mario Greco said: “I’m extremely pleased with our continued progress. Our businesses are showing great resilience and improved profitability despite challenging market conditions. At the midpoint of our three-year plan, we stand well on track to achieve all indicated targets by the end of 2019. And we are progressing fast in the implementation of the strategy we launched in November 2016.”

Mr. Greco added: “In the first six months of this year, we strengthened market share in Latin America and Australia and established a powerful global platform in the highly dynamic and promising travel assistance business. In addition, we bolstered our innovation capabilities through technology platforms like Zurich Insurance Mobile Solutions and launched a series of new digital solutions for customers.”

Mr. Greco concluded: “Zurich today is a motivated team of skilled professionals serving over 70 million customers worldwide. We are proud of all we have accomplished, and with the support of a strong brand we will continue to drive new ways to create value for our customers.”

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