Zurich improves P&C performance in H1

Zurich Insurance Group’s property & casualty (P&C) operations benefitted from an improved underwriting performance in the first half of 2018.

The P&C business’ operating profit for the first half of 2018 grew 11 percent year on year to $1.1 billion. Increases in EMEA and North America were partially offset by decreases in Latin America and Asia Pacific, with the decrease in these latter markets largely due to favourable one-off items in the prior year.

The combined ratio improved to 97.5 percent in the first six months from 99.5 percent in the same period a year ago.

The improved result reflects a combination of better underlying performance, lower expenses as a result of the group’s cost reductions and the absence of charges related to the change in the Ogden discount rate in the UK in 2017, the company explained. Following the payment of a large majority of claims associated with hurricanes Harvey, Irma and Maria, the results also included a release of reserves.

P&C gross written premiums and policy fees grew 3 percent year on year to $18.54 billion in the first six months of 2018. Operating profit in P&C improved 11 percent year on year to $1.14 billion over the period.

The life business grew gross written premiums by 18 percent year on year to $16.96 billion in the first six months. Operating profit in the segment improved 17 percent year on year to $760 million.

“I’m extremely pleased with our continued progress,” said CEO Mario Greco. “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.

“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,” Greco added.

Overall, the group increased net income by 19 percent year on year to $1.79 billion in the first six months of 2018.

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