Zurich Insurance Group reported some record numbers during the first half: business operating profit (BOP) was up 6% to a record US$4.2 billion and core return on equity hit a best-ever number of 26.3%.
What is the reason for Zurich’s strong performance and is there a danger that softening rates could hit the company’s bottom line in the coming quarters?
Group Chief Executive Officer Mario Greco attributes the insurer’s “outstanding performance,” in part, to its ongoing re-underwriting and re-pricing efforts, while maintaining underwriting discipline, as well as its continuing focus on business from small-and-medium-sized enterprises (SME), the middle market, and specialty lines.
And he’s not concerned about the softening market, as long as underwriting discipline is maintained. “We’re growing in Mid-Market and Specialties where the rates and the profitability is even higher than in the rest of the market, so we’re very confident that we will continue w…