Zurich Insurance Reports Strong Annual Operating Profit, Proposes Thomas Jordan to Board
Zurich Insurance Group AG (ZURN.SW) announced its yearly financial results, surpassing analysts' expectations. The insurer reported an operating profit of $7.8 billion for 2024, slightly exceeding the consensus estimate of $7.7 billion.
CEO Mario Greco highlighted the impact of recent California wildfires, estimating a pre-tax impact of $200 million on the company's Farmers business. However, Greco clarified that Zurich does not directly insure private homes in California, limiting its exposure to commercial entities.
In line with its three-year plan, Zurich anticipates a compound annual growth in core earnings per share of over 9% from 2025 to 2027. The company also proposed an increased dividend of 28 Swiss francs per share.
Zurich's core property and casualty business saw a rising combined ratio of 94.2%, meeting analysts' projections. This ratio indicates that the insurer earned more from premiums than it paid in claims.
Regarding interest rates in the United States, CFO Claudia Cordioli stated that higher interest rates are generally beneficial for the company.