Zurich says its first-half group business operating profit matched record levels of a year ago as strong top-line growth became a more significant driver. 

Business operating profit was little changed at $US3.7 billion ($5.7 billion), with the year-earlier figure restated for accounting changes, while net income rose 6% to $US2.49 billion ($3.83 billion). 

Property and casualty (P&C) gross written premium increased 10%, adjusting for currency moves, to $US24.56 billion ($37.8 billion), while the combined operating ratio deteriorated 1.3 percentage points to 92.9% as the group maintained a cautious approach to reserving to minimise volatility. 

Commercial rates increased 7%, with gains of 9% in North America driven by property acceleration. Retail profitability improved compared with the second six months of last year in response to pricing actions taken then and additional rate increases of 4% in the first half. 

In the Asia Pacific region, the combined operating ratio deteriorated 3 percentage points to 93.4% driven by higher commission expenses and less favourable prior year development. 

The group life business operating profit rose 11% to $US939 million ($1.45 billion), with new business premiums up 13% to $US8.2 billion ($12.6 billion), while the Farmers operating profit rose 1% to $US993 million ($1.5 billion). 

First half business operating profit after tax return on equity was 22.9%. 

“Zurich has made a strong start to the new financial cycle,” Group CEO Mario Greco said. “We’ve achieved a return on equity that’s among the highest in the industry, while minimising volatility, maintaining a strong balance sheet and taking advantage of the growth opportunities available to us.”  

Mr Greco says the group has high expectations for its performance and targets set for 2023-25 are its “most ambitious yet”.