Zurich Insurance achieves record profits as Beazley deal advances

Staff Correspondent: Zurich Insurance Group AG announced record-breaking financial results for 2025, bolstering its position as it moves forward with a potential £8 billion acquisition of UK specialist insurer Beazley Plc.

The Swiss insurer reported a business operating profit of $8.9 billion for the year, marking a 14% increase from 2024 and surpassing analyst estimates of $8.8 billion.  Net income attributable to shareholders rose 17% to $6.8 billion, with a core return on equity reaching 26.9%.  These figures reflect strong performance across all segments, including a 22% jump in operating profit for the property and casualty unit to $5.1 billion, supported by higher revenue and an improved combined ratio of 92.6%.

Gross written premiums in the property and casualty segment exceeded $50 billion for the first time, up 5% on a like-for-like basis.  The life insurance division saw a 5% increase in gross written premiums, accelerating to 7% in the second half.  Zurich proposed a 7% dividend hike to CHF 30 per share and reported $7.4 billion in cash remittances, providing flexibility for strategic moves.

CEO Mario Greco highlighted the results as a tailwind for growth, stating, “We have delivered record results across all our businesses.”  The company is on track to meet or exceed its 2025-2027 targets, including core earnings per share growth over 9% annually, core return on equity above 23%, and cumulative cash generation exceeding $19 billion.

Amid these achievements, Zurich is pursuing the acquisition of Beazley, a London-based specialty insurer known for cyber and professional liability coverage. Earlier this month, Zurich extended an £8 billion ($11 billion) cash offer at 1,335 pence per share, which has received tentative board approval from Beazley.  The deal, if completed, would rank among the largest in recent insurance history and enhance Zurich’s presence in specialty lines.

This follows Beazley’s rejection of prior bids, including a higher £13.15 per share offer last June valuing it at £8.4 billion.  Recent agreements in principle on financial terms signal progress, with a decision expected by March 4 under takeover rules.  Analysts note Zurich’s strong capital position, with a Swiss Solvency Test ratio of 259%, supports the transaction without straining finances.

The acquisition aligns with Zurich’s history of strategic buys, such as the 2024 purchase of AIG’s travel insurance for $600 million and MetLife’s US operations in 2021 for $3.94 billion.  If finalized, it could dilute short-term earnings but drive long-term synergies in distribution and product offerings.

Zurich’s shares dipped slightly post-announcement due to deal uncertainty, but the robust results underscore resilience in a challenging market.