Half Year 2024 Zurich Insurance Group AG Earnings Call Transcript
Key Points
- Zurich Insurance Group AG (ZFSVF) achieved a record Business Operating Profit (BOP) of $4 billion in the first half of 2024, driven by strong results in property and casualty, life, and farmers segments.
- The company reported a BOP return on equity (ROE) of 25%, indicating highly attractive returns on capital.
- Property and casualty insurance revenue grew by 7% in the first half, with particularly strong growth in retail.
- The life segment reported an all-time high BOP of $1 billion for the first half, with short-term protection revenues increasing by 25% year on year.
- Zurich Insurance Group AG (ZFSVF) completed the acquisition of 70% of Kotak General Insurance in India and announced an agreement to purchase AIG's personal travel insurance business, enhancing its global market position.
- The retail property and casualty segment reported a higher combined ratio of 96.4%, driven by elevated weather events and persistent inflationary trends in motor insurance.
- The company's performance in Germany was notably weaker, with a combined ratio above 100% due to increased claim frequency and weather events.
- Despite improvements, the Farmers segment faced significant catastrophe losses, impacting the combined ratio.
- The commercial motor segment continues to face challenges, with the need for further rate increases and portfolio adjustments.
- Zurich Insurance Group AG (ZFSVF) faces ongoing challenges in managing weather-related losses, with North America experiencing a higher cat loss ratio compared to the previous year.
Good afternoon, everybody, and welcome to Zurich Insurance Group's half year 2024 results Q&A call. On the call today is our Group CEO, Mario Greco; and our Group CFO, Claudia Cordioli.
Before I hand over to Mario for some introductory remarks, just a reminder for Q&A, if you could keep it to two questions that would be much appreciated. Mario?
Thank you, Jon. Good afternoon, everybody. Thank you for joining us today. I'm here, as Jon said, with Claudia Cordioli, our group CFO. Before Claudia and I answer your questions, I wanted to provide you with a few remarks on our results.
We have achieved excellent results in the first half of the year, a performance, which positioned us well to exceed all of our targets for the '23 to '25 cycle. We remain on track to achieve compound EPS growth in excess of 10%, for the planned period as we
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