On February 20, Zurich Insurance announced a slightly better-than-expected annual operating profit, navigating through the aftermath of climate disasters and conflicts. The company plans to nominate as a board member, who led the Swiss National Bank for 12 years until stepping down last September.
The fifth-largest insurer in Europe reported an operating profit of $7.8 billion for 2024, slightly surpassing the analysts' consensus of $7.7 billion. According to Jefferies analysts, this close alignment with the consensus indicates the company's growing reliability.
Addressing the impact of California fires on its Farmers business with an estimated pre-tax impact of $200 million, CEO Mario Greco emphasized the company's limited exposure to commercial businesses in California, not private homes.
Zurich foresees a compound annual growth rate exceeding 9% in core earnings per share from 2025 to 2027, aligning with its three-year plan. The company's dividend policy, reflected in a proposed increased dividend of 28 Swiss francs ($31.02) per share, leaves no room for annual buybacks, as affirmed by Greco.
The company reported a slightly increasing combined ratio of 94.2% in its core property and casualty business, meeting analysts' expectations. Additionally, CFO Claudia Cordioli noted that persistently higher interest rates in the U.S., Zurich's primary market, are viewed as an advantage for the company.