Zurich Insurance Group reported a record operating profit for the first half of 2025, led by improved underwriting results and performance across its property & casualty, life, and farmers business segments.
The P&C division generated an operating profit of US$2.4 billion, up 9% compared to the same period in 2024. Gross written premiums and insurance revenue rose 7%, with the combined ratio improving by 1.2 percentage points to 92.4%. Natural catastrophe losses accounted for 1.8% of the combined ratio, compared to 2.4% in H1 2024.
Commercial Insurance recorded a combined ratio of 90.5%, down from 91.4% the previous year, and contributed US$1.8 billion in operating profit. The segment reported growth in the middle market and specialties lines. Middle market maintained profitability while specialties expanded with what Zurich described as an attractive underwriting margin.
In North America, the motor business posted a 21.3 percentage point improvement in its combined ratio, reaching 99.3%, after reporting 120.6% in the previous period.
The retail segment achieved a combined ratio of 94.1%, a 2.4 percentage point improvement from the prior year, attributed to pricing changes and portfolio actions. In the EMEA region, the motor portfolio showed a 6.9 percentage point improvement in its combined ratio to 94.7%.
Zurich’s Life business posted an operating profit of US$1.0 billion, flat compared to the prior year’s record but reflecting 4% underlying growth when excluding a US$55 million non-recurring item from 2024. The contractual service margin exceeded US$13 billion.
On a like-for-like basis, new business and gross premiums increased by 20% and 14%, respectively, supported by growth in unit-linked and capital-efficient savings products. Life protection grew 3%, supported by Zurich’s new global life protection unit.
Farmers Exchanges recorded 5% growth in gross written premiums year over year, supported by a favourable rate environment, improved policyholder retention, and a return to policy count growth in the second quarter.
The Exchanges also reported a 34% year-over-year increase in brokerage fee income during the first quarter of 2025, attributed to new business momentum and increased distribution activity.
“I am proud of these outstanding results, which reinforce the strength of our underwriting discipline and operational execution. This performance underscores our ability to effectively manage our diversified portfolio, strong capital position, and high cash conversion to deliver continued industry-leading value to our shareholders, even in a volatile market environment,” CEO Mario Greco (pictured above) said.
Comparisons with H1 2024 provide further context to the current performance. Last year’s interim results had already shown strong internal growth and resilient asset management despite economic headwinds.
The P&C business had also delivered steady margins, while Farmers was beginning to recover from prior losses. The consistency between periods underscores the firm’s longer-term financial positioning and operational trends.
During the latest period, Farmers Exchanges faced exposure to wildfire events in California, which resulted in pre-tax losses of approximately US$600 million. The company also reported reinstatement premiums of around US$250 million related to these events.
Zurich’s own exposure, including through Farmers Re, was estimated at approximately US$200 million. These figures reflect the scale of catastrophe-linked risk, even as the Exchanges reported broader improvements in profitability.
In the first quarter of 2025, Zurich’s P&C division reported a 5% increase in gross written premiums, supported by rate hikes of 4% and higher margins. These gains were part of a broader trend that continued into the first half of the year. The company’s Swiss Solvency Test (SST) ratio also rose to 256%, reflecting capital strength and regulatory coverage well above required thresholds.
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