Zurich Insurance Reports $8.9 Billion Operating Profit and Beazley Acquisition

Zurich Insurance Group has reported a robust financial performance, announcing an increase in its group operating profit to $8.9 billion for the year, surpassing the analyst consensus of $8.8 billion. The company also noted a 17% rise in net income to $6.8 billion from the previous year. This positive financial update follows Zurich’s proposed £8 billion ($11 billion) acquisition of Beazley Plc, which has received preliminary approval from Beazley’s board. The merger aims to consolidate Zurich's global position in specialty insurance, leveraging Beazley’s operations within Lloyd’s of London.

Group CEO Mario Greco confidently shared the board's full support for the acquisition in an interview, highlighting positive shareholder feedback. Within specific segments, Zurich's property and casualty division achieved a significant 22% year-over-year increase, resulting in an operating profit of $5.1 billion. This growth was driven by enhanced revenue and a better combined ratio of 92.6%. Additionally, Zurich’s U.S.-centric Farmers division reported an operating profit of $2.4 billion, aligning with forecasts.

Despite these gains, Zurich’s share value experienced a 1.2% dip in early trading to 561 Swiss francs. Analysts attribute this to mixed results in the non-life segments, with a Jefferies report identifying lower catastrophe losses and favorable weather conditions as contributors to the reduced non-life margins. On the Beazley acquisition front, Zurich has reaffirmed its strategic goals, with a deadline for a definitive offer set for March 4. In corporate governance, Zurich Insurance has nominated Mary Forrest, a former Munich Re AG executive, for its board, as Christoph Franz prepares to step down after 12 years.