record first-half profitability in non-life insurance

Swiss insurer Zurich Insurance reported record profitability in its non-life insurance business in the first half of the year on Thursday, driven by business insurance contracts and agricultural crop coverage.

Its combined ratio, the reference indicator for assessing the profitability of insurers, stood at 91.9%, the best level “never reached“, indicates the Swiss insurer in a press release.

Context of agricultural crisis and drop in Covid mortality

Fewer Covid-19 claims helped offset higher-than-expected costs for natural disasters, but lower than in the first half of 2021, he said.

Its non-life insurance premiums climbed 13% in local currencies, and 8% when converted into dollars, to nearly 23.8 billion dollars, due in particular to demand for insurance products for harvests while the prices of agricultural raw materials have risen sharply since the invasion of Ukraine. Its life insurance activities also benefited from the decline in mortality linked to Covid-19 in Europe. Compensation costs for the Europe Middle East and Africa zone were limited to 26 million dollars, against 137 million in the first half of last year.

For the first half, the insurer reported a 25% jump in its operating profit, to nearly 3.4 billion dollars, its best level since 2008. Its net profit meanwhile expanded by 1% to 2.2 billion dollars, despite the tremors in the financial markets, he underlined. The group said to themselves,right wayto exceed its three-year objectives which run until the end of the year. For the period from 2020 to 2022, the insurer had set itself the objective of increasing its earnings per share by at least 5% per year.

He must take stock of the objectives for the next three years during a day for investors in November.

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