Zurich H1 profit hits record $4.8bn; adds $1bn data centre cover

Commercial insurance operating profit rose 12% to $2 billion on gross written premiums of $18.3 billion, with a combined ratio of 91.2%. Segment pricing declined 1%, dragged by property. Nat cat losses cost 1.8 percentage points, half a point less than a year earlier.

US commercial premiums climbed 5%, led by crop and captive business and partly offset by lower volumes in large property and US Programs. International commercial business grew 7%; Australia and Canada led, with Germany also contributing. Middle market premiums rose 7% to $4.4 billion, with contributions from every region.

Zurich said commercial rates stayed broadly stable, with margins still attractive after several years of cumulative increases. Property rates remain under pressure, especially for large accounts in North America and the UK. Casualty lines keep posting positive rate change on claims trends. In cyber, rate reductions moderated after several quarters of decline; Zurich called that an early sign of stabilisation. AI-related developments are raising risk awareness.

Retail operating profit rose 14% to $825 million, with gross written premiums up 8% to $11.5 billion and average rate increases of 4%. The combined ratio improved to 94%, helped by customer loyalty and stronger Motor and SME results.

Life Profit Rises 23% to $1.3 Billion

Life operating profit grew 23% to $1.3 billion, the first time it has crossed that level, and Zurich expects at least 10% growth for 2026. Gross written premiums were broadly stable at $19.5 billion, with protection premiums up double digits to $5.9 billion.

Farmers operating profit rose 2% to $1.2 billion on record fee income at Farmers Management Services. Gross written premiums at Farmers Exchanges grew 4% to $15.6 billion, with a combined ratio of 82.4%.

Mario Greco, Zurich's group chief executive, said growth is accelerating in segments with the strongest demand and attractive margins, including specialty, middle market, SMEs and life. The insurer's ability to select growth opportunities within its portfolio should sustain that performance over time, he said.