Zurich Insurance Group (ZURN) Q2 2025 earnings summary

Executive summary

• Delivered record business operating profit of USD 4.2 billion, up 6% year-over-year, with all segments showing positive progression.

• Net income attributable to shareholders reached USD 3.1 billion, reflecting higher operating earnings and a 26.3% core ROE, the highest in a decade.

• All-time high Contractual Service Margin (CSM) in Life at USD 13.3 billion, with underlying growth and margin expansion.

• Financial resilience underscored by an SST ratio of 255% and strong cash conversion, supporting durable returns.

• Shareholders' equity stood at USD 24.7 billion, down 3% from year-end 2024, after dividend payments.

Financial highlights

• Group operating profit reached USD 4.2 billion, up 6% year-over-year; P&C BOP up 9% to USD 2.4 billion; Life BOP at USD 1.0 billion; Farmers BOP up 4% to USD 1.2 billion.

• Combined ratio for P&C improved by 1.2 points to 92.4%; commercial insurance combined ratio at 90.5%; specialty at 86.5%; retail at 94.1%.

• Gross written premiums for P&C up 7% to USD 27.1 billion; Life GWP up 14% to USD 18.2 billion; specialty business generated USD 4.9 billion in GWP.

• Net investment result on Group investments fell 10% to USD 3.0 billion; net investment return at 1.9%.

• Basic earnings per share: USD 21.49 (up from USD 20.98 year-over-year).

Outlook and guidance

• Targeting over 9% CAGR in core EPS from a 2024 baseline of USD 40.1 per share through 2027.

• Core ROE expected to remain above 23%; cumulative cash remittances to exceed USD 19 billion.

• Insurance revenue in P&C expected to grow mid-single digit year-over-year; Life BOP to remain in line with FY-24 record level.

• Farmers Exchanges GWP expected to grow mid- to high-single digit percentage; FMS MGEP margin at 7.0%.

• No material impact anticipated from BEPS Pillar II tax changes; ongoing monitoring of regulatory developments.