Zurich Insurance Group posted a business operating profit of US$8.9 billion for 2025, a 14% increase from the prior year, as record results across its segments reinforced the Swiss insurer's position ahead of a proposed mega-merger.
Net income attributable to Zurich shareholders reached US$6.8 billion, up 17%, while core return on equity rose to 26.9%.
The results land as Zurich pursues what would be one of the largest insurance deals in recent years – a proposed takeover of Beazley valued at approximately £8 billion. The two sides reached an agreement in principle earlier this month, under which Beazley shareholders would receive up to 1,335 pence per share, comprising 1,310 pence in cash plus up to 25 pence in permitted dividends.
The deal followed months of negotiations. Zurich first approached Beazley in June 2025, and the current agreement represented the Swiss group's sixth bid after earlier offers were rebuffed, according to financial data provider Invezz. The offer represents a 62.8% premium to Beazley's closing price on January 16.
Chief executive Mario Greco (pictured above) has described Beazley as "a very complementary business to ours," pointing to the London-based firm's Lloyd's platform and cyber insurance expertise.
GlobalData research estimated the global cyber insurance market grew to US$22.2 billion in 2025 and could nearly double to US$35.4 billion by 2030 – underscoring the strategic logic behind Zurich's pursuit.
The Takeover Panel has granted an extension pushing the firm-offer deadline to March 4, with regulatory approvals still required from the PRA and FCA.
Zurich's P&C segment recorded a BOP of US$5.1 billion, a 22% increase, with the combined ratio improving 1.6 percentage points to 92.6%. Commercial insurance BOP rose 12%, partly reflecting a below-average natural catastrophe season, while retail BOP surged 50% on 16% premium growth.
The life segment posted a BOP of US$2.3 billion, with the contractual service margin reaching a record US$13.8 billion. The Farmers Exchanges recorded a net increase in policy counts of more than 150,000 - the first such rise in over a decade.
Zurich proposed a dividend of CHF 30 per share, a 7% increase. "I am extremely proud to see all our businesses contributing to these record results," Greco said.
Separately, Zurich confirmed in January that it is preparing to launch its first Lloyd's of London syndicate, with operations potentially beginning in April.
Greco said the syndicate would allow Zurich to access private capital, noting it offers "deals on the Lloyd's platform where you access private capital, which is different from capital offered by the reinsurance companies."
