Zurich Insurance Group (ZURN) Q4 2024 earnings summary

Executive summary

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

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

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

• Net income attributable to shareholders was USD 5.8 billion, up 34% year-over-year.

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

Financial highlights

• P&C gross written premiums rose 5% year-over-year to USD 46.6 billion, with 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%.

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

• Core EPS grew at 8% CAGR to USD 40.1; adjusted EPS rose 10% to USD 42.2.

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

Outlook and guidance

• Targeting >9% CAGR in core EPS to 2027 from a 2024 base of USD 40.1/share.

• Aiming for core ROE above 23% and cumulative cash remittances exceeding USD 19 billion over the next three years.

• Expects mid-single digit growth in P&C insurance revenue and Life BOP to remain at record 2024 levels.

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

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