Switzerland's largest insurer recorded its biggest half-year profit in a decade – boosted by the Covid-19 crisis.
The Zurich-based firm's net profit surged 86 percent to $2.2 billion – the strongest in ten years, as CEO Mario Greco noted in a statement on Thursday. This came against the backdrop of higher losses from natural catastrophes as well as the ongoing pandemic.
The insurer managed to win 600,000 new clients during the crisis, it said. Its combined ratio in property and casualty insurance also hit a record of 93.9 percent, which represents the lowest level in more than 20 years. The operating result in this business more than doubled, to $1.6 billion.
Three-Year Targets On Track
Zurich benefited from an unusual side effect of the pandemic: due to restrictions on movement, groups, and activities, its policyholders filed fewer damage claims. This more than offset the higher claims due to natural catastrophe and weather.
Operating profit at its smaller life insurance business climbed 44 percent, while its U.S.-based Farmers Exchange business rose 16 percent. The Swiss insurer said it is on track to reach its 2022 targets, which include paying out more than $11.5 billion to shareholders.
