On Thursday, Zurich kicked off the earnings season for Swiss insurers. The 2024 financial results are impressive:

-Operating profit (BOP) increased by 5 percent to $7,75 billion
-Net profit surged by one-third to a record $5,81 billion, exceeding analysts’ expectations
-Adjusted return on equity stood at 24,6 percent
-Zurich received net inflows totaling $7,1 billion

All business segments contributed to this success. The property and casualty insurance segment posted an operating profit of $4,204 billion, marking an 8 percent increase compared to the previous year. In the corporate insurance sector, gross premiums grew by 2 percent, with a premium rate increase of 4 percent.

The retail insurance segment saw an 11 percent increase in gross premiums. The combined ratio, a key metric in the insurance industry, improved by 3,4 percentage points to 96,5 percent, primarily due to lower catastrophe-related losses.

Farmers Is Gaining Momentum Again

The operating profit in life insurance rose by 8 percent to $2,2 billion, reaching a record high.

Even the company’s former troubled division is now performing well: Farmers Exchanges, owned by its policyholders, saw a 4 percent increase in gross premiums, total gross premiums grew by 5 percent.
As in previous years, shareholders can rejoice: the dividend is set to increase by 8 percent, reaching CHF 28 per share.

Wildfires in California: First Cost Estimates

During its earnings presentation on Thursday, Zurich also provided a first estimate of the financial impact of the devastating wildfires in California. Given that Farmers Exchanges has a strong presence in California, Zurich is significantly affected.

According to current estimates, Farmers expects a pre-tax net loss of approximately $600 million due to the wildfires, as well as $250 million in premium payments to restore its reinsurance program. However, Zurich emphasized that Farmers' strong capital base and earnings power will allow it to weather this event and continue expanding its business. The projected loss is within analysts' expectations.

For Zurich itself, the wildfire-related losses are expected to amount to approximately $200 million pre-tax, including the impact on Farmers Re.

Zurich Sees Positive Momentum

Looking ahead to 2025, CEO Mario Greco remains optimistic:
«We continue to see positive premium rate dynamics in the corporate insurance business and a healthy pricing environment in the retail insurance sector. This positions us well at the start of the new cycle, for which we have set our most ambitious targets yet. This underscores both our ability to successfully execute our plans and our commitment to creating consistent, long-term value for all stakeholders.»

Zurich is aiming for more than 9 percent annual growth in adjusted earnings per share between 2025–2027, an adjusted return on equity exceeding 23 percent in 2027, cumulative cash inflows of over $19 billion over the three-year cycle.

For comparison, in the previous cycle (2023–2025), Zurich targeted: 8 percent annual earnings growth, more than 20 percent return on equity in 2025, cumulative inflows exceeding $13,5 billion.

Surprising Nomination

It was widely expected that Zurich would provide updates on the future of CEO Mario Greco. However, no mention of this was found in the report. Instead, Zurich surprised the market with the nomination of former Swiss National Bank (SNB) Chairman Thomas Jordan to its Board of Directors. The company stated that his appointment was based on his outstanding career at the SNB. Jordan served as President of the SNB Governing Board from 2012 to 2024, having previously been its Vice President.

Zurich’s Annual General Meeting is scheduled for April 9, 2025.