Zurich UK’s earnings grew 14% year-on-year and general insurance profits surged by almost a quarter in the first half of this year, the insurer revealed in its H1 results this morning.
In its general insurance arm, gross written premium (GWP) came in at £1,202 million compared to £1,215 million for the same period last year, while combined ratio for the period stands at 95.5%, up from 99.2%.
Zurich’s UK chief executive Tulsi Naidu said the firm had delivered strong first half figures in the UK, with an all-round improvement in the underlying performance of the business.
“General insurance profits are up 24% on last year, or 162% including the unusual impact in 2017 of the personal injury discount rate,” Naidu said.
While the insurer saw a number of large and catastrophic claims from global natural disasters and severe UK winter weather in the first half of the year, Naidu said these were offset by underwriting discipline and a diverse book of business thanks to growth in the UK mid-market and SME segments.
“Our approach to customer and broker relationships is also paying dividends, as is our focus on technical excellence and strong operational management in claims. All of these have contributed to a much improved combined ratio and a strong general insurance result,” she said.
The life business saw 3% growth in business operating profit to £66.6 million, with life annualised premium equivalent and new business value up 31% and 13% respectively.
“Across the business as a whole, our strategic transformation moves forward at pace. We have taken major steps to simplify our business and are investing heavily in digital, with a particular emphasis on priority areas including life protection, high net worth and SME, which have required modernisation,” Naidu said.
“Our revised distribution approach is showing very pleasing results with strong new business wins in both life and general insurance. We are also continuing to invest in our brand, recently launching a national advertising campaign highlighting our track record of paying 99% of insurance claims.”
