Zurich Insurance on Track to Beat Targets as it Pursues Beazley — Update

By Elena Vardon

Zurich Insurance is on course to meet or surpass its midterm targets after delivering record annual earnings as it pursues a takeover of U.K. specialist insurer Beazley.

The Swiss group has been courting the London-listed company since last June. Earlier this month, the parties reached an agreement in principle after Zurich put forward a sweetened offer valuing Beazley at around 8 billion pounds ($10.79 billion). Under U.K. takeover rules, Zurich has been granted an extension until March 4 to make a firm offer or drop the bid.

The insurance giant plans to use the tie-up to create a global specialist platform with around $15 billion in gross written premiums, capitalizing on Beazley's presence in the Lloyd's of London marketplace. The transaction is expected to be accretive to 2027 targets and would be funded through a mix of cash, debt and an equity placing.

"We are well on track to achieve or even exceed our 2027 targets, and position us well to capture future growth opportunities," Chief Executive Mario Greco said.

The group's 2025-2027 targets include core earnings per share growth of more than 9% a year, a core return on equity of more than 23% and cumulative cash remittances--the money that business units submit to the group--exceeding $19 billion.

For 2025, Zurich reported a 14% increase in its business operating profit--a closely watched metric that reflects core earnings--to $8.86 billion, ahead of consensus estimates.

Growth was recorded across all business units, but was particularly driven by its largest division, property-and-casualty, which saw a 22% surge in operating profit. The unit's combined operating ratio was helped by low natural catastrophe losses and reached 92.6%, while its gross written premiums came in above the $50 billion threshold for the first time.

The group also reported rising operating profit at its life insurance and farmers divisions. Net profit for the year came in 17% higher at $6.80 billion, beating consensus expectations.

Zurich's Swiss solvency test ratio--a measurement of capital strength--stood at 259% as of Dec. 31, marking an improvement from 253% a year prior. The board proposed a dividend of 30 Swiss francs ($38.80) per share, a 7% lift.

Write to Elena Vardon at elena.vardon@wsj.com

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February 19, 2026 05:01 ET (10:01 GMT)