Zurich Reports Good Results for the First Half of 2022; We Believe Shares Are Fairly Valued

Zurich’s property and casualty division has reported a 13% rise in gross premiums written, balanced across both commercial and retail. While that growth has been aided by the strength of the USD, at constant currency the growth is still in the high single digits. This growth has been supported by higher premium rates in the commercial insurance market. This is a dynamic that Zurich expects to continue into 2023. The higher volume and better pricing have flowed straight down to profit as the USD 2.1 billion operating result, a rise of 32%, has also been aided by the strong underwriting standards. The 91.9% combined ratio is purely loss ratio improvement-driven. While unfavorable claims experience in the United Kingdom was offset within EMEA, the North America combined ratio improved by 7.3 percentage points, showing how far that commercial market has traveled, and is a stellar result from the division.