Zurich Insurance 1st Half Profit Rose on Lower Covid-19 Claims

   By Ed Frankl

Zurich Insurance Group AG said Thursday that first-half net profit rose 86% as a reduced impact from Covid-19 offset higher losses from extreme weather events.

Net profit for the six months to the end of June increased to $2.19 billion from $1.18 billion, while business operating profit jumped 60% to $2.71 billion, the Swiss insurance giant said.

Growth was driven by an underlying improvement across all business areas amid reduced pandemic-related claims, compensating for higher levels of natural catastrophe and weather-related claims, the company said.

This year's extreme weather included winter storms in the southern U.S. and recent flooding in South East Asia and Europe, it said.

Life new business annual premium equivalent rose 14% to $1.91 billion, Zurich said. This key industry metric, known as APE, measures new business growth.

Property & casualty gross written premiums and policy fees were $22.03 billion in the half, up from $18.94 billion a year earlier.

Zurich said profits were back to pre-pandemic levels of 2019, and it remains on track to achieve 2022 targets.

"Our work in the last five years to simplify and strengthen the business, combined with the continuing upturn in commercial insurance pricing, positions us well," Chief Executive Mario Greco said.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

August 12, 2021 01:24 ET (05:24 GMT)

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