Zurich 'fitter, faster and more resilient'; posts historic results in challenging times
Zurich Insurance Group posted a strong rebound in profit for the first half of 2021, driven by an underlying improvement across all businesses and reduced claims from COVID-19, which more than offset higher levels of natural catastrophe and weather-related claims.
The insurer's half-year 2021 net profit increased 86 percent to $2.2 billion, compared with $1.18 billion in the prior-year period.
Its property and casualty gross written premiums grew by 16 percent to $22.03 billion in the first half of 2021, compared with $18.93 billion in H1 2020, with strong growth achieved in both commercial insurance and retail business.
The growth was supported by significant rate increases in the group’s commercial business across all regions. Zurich expects these trends to continue through the second half of the year.
The P&C combined ratio came in at 93.9 percent, the lowest in more than 20 years and six percentage points below the prior-year period, despite higher-than-normal catastrophe and weather-related claims.
Zurich said all regions contributed to the combined ratio improvement, driven by an underlying improvement in underwriting profitability, as higher prices feed into the results, as well as a favorable net impact from COVID-19 compared with the adverse impact recorded in the prior-year period.
The group achieved price increases of about 8 percent in the first half, with most regions seeing a higher level of increases compared with the previous year.
Commenting on the results, Zurich's group chief executive officer Mario Greco (pictured), said: “We achieved outstanding results in the first six months of 2021 with profits back to the levels of 2019, when we reported our best first half in a decade. This is a remarkable achievement considering the elevated natural catastrophe losses in the period and the ongoing public health crisis.
"Our first-half performance is the result of the focused execution of our strategy, with contributions from all parts of the business. Our combined ratio in property and casualty insurance, now at its lowest in more than 20 years, is testament to the improvements made to underwriting since 2016."
Greco concluded: "As economies emerge from the COVID-19 pandemic, Zurich is fitter, faster and more resilient than ever. Our work in the last five years to simplify and strengthen the business, combined with the continuing upturn in commercial insurance pricing, positions us well. I have great confidence in the strength of our business and the skills of our employees to maintain this momentum and deliver on our targets.”
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