Zurich Insurance Group (ZURN) Q4 2024 earnings summary

Executive summary

• Achieved record business operating profit (BOP) of USD 7.8 billion, up 5–6% year-over-year, surpassing 2023–2025 targets, with strong delivery across all segments.

• Core ROE rose to 24.6%, up 1.6 percentage points from 2023, reflecting efficient capital allocation.

• Cash remittances reached USD 7.1 billion, up 34% year-over-year, supporting an 8% dividend increase to CHF 28 per share.

• All business segments delivered strong results, with P&C and Life at all-time high BOP and Farmers maintaining robust profitability.

• 2025–2027 targets raised, aiming for Core EPS CAGR above 9%, Core ROE above 23%, and cumulative cash remittances over USD 19 billion.

Financial highlights

• Net income attributable to shareholders was USD 5.8 billion, up 34% year-over-year, with favorable mark-to-market asset performance.

• P&C gross written premiums rose 5–6% year-over-year to USD 46.6 billion, with a combined ratio improved to 94.2%.

• Life BOP grew 8–9% to USD 2.2 billion, with gross and new business premiums up 3–5%, driven by protection and unit-linked products.

• Farmers BOP stable at USD 2.3 billion; Farmers Exchanges combined ratio improved to 91.4%, surplus ratio up to 42.4%.

• SST ratio closed 2024 at 252%, up from 234% in 2023, indicating strong capitalization.

Outlook and guidance

• Targeting over 9% CAGR in Core EPS to 2027 from a 2024 base of USD 40.1 per share.

• Aiming for Core ROE above 23% and cumulative cash remittances exceeding USD 19 billion by 2027.

• Life BOP guidance for next year is flat at USD 2.2 billion, with potential upside.

• P&C insurance revenue and Farmers Exchanges GWP expected to grow mid-single digit percentage in 2025.

• Group Functions and Operations net expenses expected at USD 800–870 million; effective tax rate 25–27%.