Zurich Insurance Posts Record Profit, CEO Bullish on AI
Zurich Insurance Group reported record profits of $8.9 billion for 2025, beating forecasts. The company's property and casualty division surpassed $50 billion in gross written premiums for the first time. In a subsequent call, CEO Mario Greco stated he does not believe AI will lead to an overall reduction in jobs.
- The record profit represents a 14% increase in business operating profit year-over-year. Net income attributable to shareholders saw a 17% rise to $6.8 billion. - Growth in the Property and Casualty (P&C) division was driven by an 8% increase in gross written premiums, with the commercial business growing 4% and the retail business growing 7% on a like-for-like basis. - The company has proposed a 7% dividend increase to 30 Swiss francs ($38.80) per share. - This strong performance puts Zurich on track to meet or exceed its ambitious 2025-2027 financial targets, which include achieving a core return on equity of more than 23% and a compound annual growth rate in earnings per share of over 9%. - In late 2025, Zurich launched the "Zurich AI Lab" in collaboration with the University of St. Gallen and ETH Zurich to pioneer new AI-driven insurance solutions and transform its business model. - The company already has 541 AI solutions in place or in development, leveraging generative AI at scale across all its markets to enhance performance. - The Farmers Exchanges, for which Zurich's subsidiary provides services, reported their strongest ever business operating profit of $2.4 billion and saw a net increase in policy counts of over 150,000 for the first time in a decade. - Performance in the Asia Pacific region was also a highlight, delivering a record business operating profit of $633 million, an 8% year-over-year increase, with gross written premiums reaching $7.5 billion.
