Zurich reports record operating profit and return on equity

Zurich - Zurich Insurance Group (Zurich) delivered a record set of financial results, driven by high-quality underwriting and strong momentum across all business lines. 

The P&C business delivered a BOP of US$2.4 billion, up 9%, a historic high at this stage of the year. Insurance revenue and gross written premiums increased 7%, reflecting the Group's resolute focus on high-quality, profitable growth. The combined ratio improved by 1.2 percentage points to 92.4%, driven by stronger underlying performances across commercial and retail insurance. Within the combined ratio, natural catastrophe losses totaled 1.8% compared to 2.4% in the first half of 2024, reflecting the Group’s sophisticated risk selection and exposure management.

Mario Greco, Group Chief Executive Officer says: "I am proud of these outstanding results, which reinforce the strength of our underwriting discipline and operational execution. This performance underscores our ability to effectively manage our diversified portfolio, strong capital position, and high cash conversion to deliver continued industry-leading value to our shareholders, even in a volatile market environment.

"P&C posted profitable growth, supported by favorable pricing trends, focused management actions and superior risk selection. The Life business maintained last year’s record performance, with continued premium expansion and rising demand for protection solutions. Farmers Exchanges reported excellent underwriting results and increased its policy count for the first time in more than a decade".  

Zurich’s market-leading Commercial Insurance business further improved its profitability with a combined ratio of 90.5% compared to 91.4% in the prior year period, delivering a strong BOP of US$1.8 billion. Zurich continues to optimize its portfolio, seizing opportunities to drive profitability, including growing in preferred segments and lines of business such as Middle Market and Specialties. The Middle Market segment saw continued underlying growth maintaining strong profitability, while Specialties is growing at an attractive underwriting margin. Enhancements in the North American motor business led to a 21.3 percentage points improvement in the combined ratio to 99.3% compared to 120.6% the prior year period, bringing the business back to profitability. 

Retail recorded a marked improvement with a combined ratio of 94.1%, a 2.4 percentage points improvement over the prior period, reflecting positive pricing momentum and successful management actions on the portfolio. Strong improvements in the Europe, Middle East and Africa (EMEA) motor portfolio resulted in a combined ratio of 94.7%, an improvement of 6.9 percentage points compared to 101.6% in the prior year period.

Zurich’s Life business sustained the prior year record high level BOP of US$1.0 billion, up 4% on an underlying basis, excluding a prior year non-recurring benefit of US$55 million. Contractual service margin (CSM), which reflects unearned profit, reached an all-time high with more than US$13 billion. Impressive growth in both new business and gross premiums4 of 20% and 14% respectively, on a like-for-like1 basis, was driven by strength in unit-linked and capital efficient savings. Life Protection1 grew 3%, gaining strong traction under the new Global Life Protection unit, which is expected to further accelerate growth in the 2025-2027 cycle. 

Farmers Exchanges achieved 5% year-over-year GWP growth, capitalizing on a supportive rate environment, improved retention, and a return to policy count growth in the second quarter. A stand-out underwriting result, despite the impact of the Los Angeles wildfires, brought the surplus ratio to 45.7%, up 3.3 percentage points since the year-end of 2024, laying the foundation for future mid to high single digit growth. Moody’s Ratings affirmed Farmers Insurance Group’s credit rating and changed the outlook from stable to positive on June 23, 2025, based on its enhanced profitability, reduced exposure to catastrophes and improved capitalization.

Farmers reported a new record BOP of US$1.2 billion for the first half of the year, up 4% against the prior year period. Farmers Management Services (FMS) BOP rose 3%, driven by sustained premium growth at the Farmers Exchanges2 and rising contributions from the Agency Brokerages. Farmers Re also delivered higher BOP, underscoring the outstanding underwriting performance at the Farmers Exchanges.

P&C business operating profit (BOP) of US$2,429 million was 9% higher than in the previous year driven by higher insurance revenue and a stronger technical result. The combined ratio improved by 1.2 percentage points year on year to 92.4%, driven by a strong recovery in the Retail business and further margin improvement in Commercial Insurance. Within the combined ratio, natural catastrophe losses totaled 1.8% compared to 2.4% in the first half of 2024.  Gross written premiums (GWP) grew 7% in U.S. dollars and 5% on a like-for-like1 basis adjusting for currency movements and prior year’s completed acquisitions of the AIG global personal travel insurance and assistance business as well as the Zurich Kotak General Insurance business. All geographies contributed positively towards topline growth on a like-for-like1 basis. The Group achieved price increases of 3% in the first half of the year.

In Commercial Insurance, GWP increased 3% compared to the prior year, with an overall rate increase of 2%. In North America, GWP increased 3% in line with rate increases, where pricing remains supportive to write profitable business. In EMEA, GWP increased 4%, driven by further growth in the property, specialties and motor portfolios. Middle market growth was strong in preferred segments in North America and EMEA, supported by resilient rate momentum and underlying exposure growth. This was offset by the effect of planned management actions in certain U.S. program businesses. The combined ratio of 90.5% for the first half of the year improved 0.9 percentage points year on year, driven by a 1.7 percentage points improvement of the loss ratio.

In Retail, GWP increased 15% supported by rate changes of 5% during the first six months of the year. EMEA showed strong top-line growth of 10%, of which two-thirds were driven by Germany, Switzerland and the United Kingdom. Growth across the region was due to continuous strong rates supported by an 8% increase in motor rates and overall net new business. Asia Pacific grew by 17% driven by strong performances in the motor, specialties and property businesses across the region. The combined ratio of 94.1% for the first half of the year improved by 2.4 percentage points year on year with a lower loss ratio due to strong improvements in the motor and property portfolios.