Zurich Insurance Stock: Record Profits Drive Share Price Higher

Zurich Insurance Group has reported exceptional financial results for 2024, with operating profit surging to $7.75 billion, marking a 5% increase from the previous year. The company's net profit demonstrated even more impressive growth, climbing by one-third to reach a historic peak of $5.81 billion. This outstanding performance, which significantly exceeded analyst expectations, has prompted the insurer to raise its dividend by 2 francs to 28 francs per share. The robust financial outcomes were driven by multiple factors, including increased rates in property insurance, heightened demand for pension products, and strong investment returns. The company's adjusted return on equity rose to an impressive 24.7%, while maintaining its strategic objectives for 2025-2027, including plans for adjusted earnings per share growth exceeding 9% annually.

Market Response and Operational Excellence

The Swiss stock market responded positively to these results, with Zurich's shares rising by 1.92% to 574.60 francs, outperforming the broader market's downward trend. The insurer demonstrated strong performance across all business segments, including non-life, life, and Farmers divisions. Natural catastrophe claims remained manageable at 3.7%, showing a 20-basis-point improvement over expectations, while premium increases were successfully implemented across regions, with EMEA seeing 4% growth and North America achieving 5% growth. The combined ratio stood at a healthy 94.9%, contributing to the general insurance division's operating profit of $1.98 billion.