In This Article:
-
Group Profit: $7.8 billion, up 5% year over year.
-
Core ROE: 24.6%, an increase of 1.6 percentage points from 2023.
-
Cash Remittances: $7.1 billion.
-
Dividend Proposal: Increase of 8% to CHF28.
-
Life BOP: Grew 9% like for like to $2.2 billion.
-
Life Gross Premiums: Grew 4% like for like.
-
New Business Premiums: Grew 5% like for like.
-
Property and Casualty Gross Premiums: Up 5% like for like.
-
Property and Casualty BOP: Up 8% to $4.2 billion.
-
Combined Ratio: 94.2%.
-
Farmers BOP: $2.3 billion.
-
Farmers Combined Ratio: 91.4%, down from 103.3% in 2023.
-
SST Ratio: 252% at the end of 2024.
-
Core EPS Base for 2024: $40.1 per share.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Zurich Insurance Group AG (ZFSVF) reported a record group profit of $7.8 billion, up 5% year over year, indicating strong business momentum.
-
The company achieved a core return on equity (ROE) of 24.6%, an increase of 1.6 percentage points from 2023, showcasing efficient capital allocation.
-
Cash remittances were healthy at $7.1 billion, reflecting high cash conversion and dynamic capital management.
-
Life business operating profit grew 9% like-for-like to a record $2.2 billion, driven by growth in protection and unit-linked products.
-
The property and casualty business saw gross premiums up 5% on a like-for-like basis, with a strong combined ratio of 94.2% and business operating profit up 8% to $4.2 billion.
Negative Points
-
The financial impact of the California wildfires on Zurich Insurance is estimated at $200 million, highlighting exposure to natural disasters.
-
Farmers' business saw a decline of 8% in 2024, with ongoing challenges in customer retention and policy losses.
-
The company's capital position, while strong, did not lead to additional capital returns to shareholders, as management prioritized growth opportunities.
-
The middle market segment showed slower growth, with only 2.5% growth, indicating potential challenges in achieving future growth targets.
-
The crop business had a combined ratio above 100% in 2024, reflecting ongoing adjustments and cancellations in the portfolio.
Q & A Highlights
Q: Can you provide a timeline for Farmers' return to growth, especially after the LA wildfires? A: Claudia Cordioli, Group CFO, explained that Farmers experienced an 8% decline in 2024, with a significant decrease in customer loss in the second half of the year. The team is focused on returning to growth, expected in the second half of 2025. Post-wildfire, Farmers is well-equipped to grow in California and other states.