Zurich posts best P&C combined ratio in 15 years, profits up 36% in 2021

Zurich Insurance Group’s property/casualty (P&C) business achieved the lowest combined ratio in 15 years and double digit top-line growth in what the company claims to be one of the best results in its history.

In the financial year 2021, growth was achieved in all business segments, with commercial insurance in particular benefiting from disciplined underwriting, higher prices and an increase in new business. Additionally, reduced claims from COVID-19 drove underlying improvement across all segments and more than offset higher levels of natural catastrophe and weather-related claims..

Net profit for the full year 2021 increased 36% to $5.2 billion - the highest since 2007 - compared with $3.8 billion in the prior-year period.

P&C combined ratio at 94.3% was at the lowest level in the past 15 years. Gross written premiums (GWP) grew 11% to reach $40 billion, with growth in both retail and SME and commercial insurance across all regions.

Group chief executive officer Mario Greco (pictured) said: “ Zurich has delivered the strongest performance in a long time, demonstrating the strength of our franchise, the quality and commitment of our people, and the benefits of repositioning the business in recent years.

“The P&C business achieved the best combined ratio in 15 years and double digit top-line growth. Higher risk-adjusted prices and continued measured progress towards our growth ambitions took P&C gross written premiums to more than $40 billion for the first time.

“The extreme weather events of 2021 again highlight the pressing need to take collective action to address climate change.”

Commenting on the outlook, he said: “I am optimistic about Zurich’s momentum, the skills and enthusiasm of our people and the opportunities that lie ahead of us. I have every confidence we will meet or exceed our 2022 targets.”

The company also announced that its board of directors will propose the election of Peter Maurer at Zurich’s Annual General Meeting on April 6, 2022. Maurer has served as president of the International Committee of the Red Cross (ICRC) for the past 10 years.

Maurer will assume his role on Zurich’s board as of October 1, 2022, after having stepped down from his position at the ICRC.

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