- Record Group Business Operating Profit: Achieved $4.2 billion, up 6% YoY, with core ROE of 26.3%.
- Property & Casualty Outperformance: All-time high BOP of $2.4 billion (9% YoY growth) and combined ratio of 92.4%.
- Specialty Business Strength: Generated $4.9 billion in GWP with an accident year combined ratio of 86.5%.
- Life Segment Growth: Maintained $1 billion BOP, 4% YoY growth, and 14% increase in gross written premiums.
- Financial Targets Reinforced: Core ROE exceeds 23%, cash remittances >$19 billion cumulatively, and 9%+ CAGR in core EPS.
Segment Performance
In Retail Property & Casualty, the company saw a notable progression with a 2.4 percentage point improvement to a combined ratio of 94.1%, supported by rate momentum and underlying improvements to the motor and property portfolios. The company's specialty business generated $4.9 billion of gross written premiums at a highly profitable 86.5% accident year combined ratio. In Life, the company sustained last year's record BOP of $1 billion, with a 4% year-over-year growth on an underlying basis. Gross written premiums were up 14%, and new business premiums were up 20% on a like-for-like basis. Farmers delivered its strongest half-year ever, with BOP up 4% to $1.2 billion, and a combined ratio of 90.5%.
Guidance and Strategy
The company's financial targets remain unchanged, with a compounded annual growth rate of over 9% in core EPS from the 2024 baseline of $40.1 per share, a core ROE in excess of 23%, and cash remittances exceeding $19 billion cumulatively. Mario Greco, CEO, stated that the company feels "very safe and confident" about this year's dividend, and they have even more cash than their target for '27. He reiterated that they've delivered an outstanding performance in the first half of the year, with a record operating profit and core return on equity, supported by strong progression in all geographic and business segments.
Valuation
Zurich Insurance Group's strong financial performance is reflected in its valuation metrics. The company trades at a P/E Ratio of 17.61, a P/B Ratio of 4.02, and a Dividend Yield of 3.95%. The ROE of 23.45% and ROIC of 13.32% suggest that the company is generating strong returns for its shareholders. With a Net Debt / EBITDA of 0.16, the company's balance sheet remains healthy. At current prices, the market appears to be pricing in a strong performance from the company, but the dividend yield and free cash flow yield of 7.16% suggest that investors may still find value in the stock.