Zurich Insurance Group has reported net income of $5.8bn attributable to shareholders after tax in 2024, a 34% increase from $4.3bn in 2023.
The company’s business operating profit (BOP) also increased, reaching $7.7bn in 2024, a 5% increase from $7.3bn in 2023.
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The Life BOP stood at $2.2bn, an increase of 8%, while property & casualty (P&C) BOP reached $4.2bn, also up by 8%.
In terms of premiums, life segment gross premiums rose by 3% to $33bn and P&C gross written premium and policy fees climbed by 5% to $46bn.
The growth in the life segment was driven by Europe, the Middle East and Africa, which saw strong performance in fee businesses, growth in the contractual service margin (CSM) and a higher investment result.
The P&C segment’s growth was attributed to stronger insurance revenue, a lower combined ratio and a higher investment result.
Zurich’s commercial insurance business delivered a strong BOP of $3.4bn, while the retail business increased its BOP to $1bn, up by $618m, or 171%.
The company proposed a dividend of SFr28 per share, reflecting an 8% increase.
Diluted earnings per share also increased by 32%, reaching SFr35.33 from SFr26.71 in 2023.
The Farmers Exchanges, part of Zurich, have communicated initial estimates indicating an expected net pre-tax loss of $600m resulting from the California wildfires and a nearly $250m reinstatement premium payment.
For Zurich, the pre-tax impact of this event, including Farmers Re, is estimated at $200m.
Looking ahead, Zurich expects compound annual growth in core earnings per share to exceed 9% in 2025–27 compared with a baseline of $40.1, a core return on equity of more than 23% in 2027.
Zurich Group CEO Mario Greco said: “All our businesses delivered an outstanding performance in 2024. We continue to experience positive rate momentum in our commercial business and a healthy pricing environment in retail, positioning us strongly at the start of the new cycle for which we have already set our most ambitious targets yet. This reinforces our ability to execute and deliver on our plans and our commitment to create consistent long-term value for all our stakeholders.”
Furthermore, Zurich North America has established a new specialties business unit by integrating its construction, surety and financial lines businesses and also consolidating its customer and distribution management function.
This move aligns with Zurich Insurance’s three-year business plan, unveiled during Zurich Investor Day in November 2024.
