Zurich exceeds targets with strong 2019 results driven by P&C book

Swiss insurer Zurich Insurance Group has reported a 16 percent increase in its 2019 operating profit and has proposed raising its dividend to Sfr20 per share as the company said it is benefiting from an improved business mix, reduced volatility and enhanced profitability.

Its operating profit increased by 16 percent to reach $5.3 billion in 2019 while it posted a net profit pf $4.1 billion last year, a 12 percent improvement on 2018.

Its gross P&C premiums were $34.1 billion, up 2 percent from $33.5 billion in 2018, and the P&C combined ratio was 96.4 percent, a 1.4 percent improvement on the previous year’s figure of 97.8 percent. Life insurance gross premiums were $33.4 billion, the same figure as in 2018.

On the P&C side, the company said the results demonstrate further strong year-on-year progress with the operating profit up 38 percent. This was driven by an improved underwriting performance and higher investment results, which more than compensated for a challenging year in the North American crop business, the company said.

It added that, in 2020, Zurich expects to deliver further improvement in underwriting performance as the benefits of changes to the business mix, together with improved pricing and lower expenses continue to contribute to the group’s results.

Group chief executive officer Mario Greco said: “Today’s results confirm that we have successfully executed our plans over the last three years. It was an amazing journey, during which we significantly strengthened the business, organically and through transactions, reduced P&L volatility and improved customer services. This is also reflected in a further proposed increase of our dividend to SFr20 per share, the third increase in a row.

“Today, we feel proud of these results and we are aware of our strengths: we are a simpler, more agile and more efficient company with a compelling strategic vision which will continue guiding us for the next phase of our journey. Very importantly, both customer and employee satisfaction have been rising through the last years. With this we are well positioned to meet the ambitious new targets we set ourselves for the next three years. We look forward with real confidence and excitement as we continue our strategic journey.

“We remain committed to supporting our customers, employees and communities in facing challenges such as climate change and work security, and will continue to play a leading role in building a more sustainable future.”

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