Zurich Insurance Group Ltd · SIX:ZURN

Zurich Insurance — H1 2025 Earnings Presentation

60 slides from Zurich Insurance's earnings presentation, Aug 7, 2025

  1. Slide 1: Driving execution

    Driving execution Half year results 2025 August 7, 2025 Investor and media presentation Zurich Insurance Group © Zurich

  2. Slide 2: Content

    Content Use symbols to navigate through the document Key highlights Financial performance Other important information Group Group Disclaimer P&C P&C Dividend policy Life Life 2023-2025 targets Farmers Farmers Customer KPIs Solvency Other segments Investment details Outlook Solvency and balance sheet

  3. Slide 3: Key messages

    Key messages Successful start to 2025- Outstanding quality of underwriting results, driving HY-25 to a record BOP of USD 4.2bn, up 6% 2027 cycle P&C: a record top- and P&C BOP of USD 2.4bn up 9%. Superior risk selection improved the combined ratio to 92.4%. Gross bottom-line written premiums of USD

  4. Slide 4: Strong start in the 2025-2027 cycle

    Group Strong start in the 2025-2027 cycle Core ROE (%)1 Cash remittances Core EPS growth (%)2 SST (%)3 (USDbn) 255% 26.3% >19 51.9 >23% 40.1 ≥160% H2 19.8 H1 20.3 21.7 HY-25 Target FY-25e Target 2024 2025 2027 target HY-25e Target 2025-2027 2025-2027 baseline (>9% CAGR) 2023-2025 1 Business operatin

  5. Slide 5: Driven by strong momentum across all businesses

    Group Driven by strong momentum across all businesses GWP (USDbn)1 BOP (USDbn) NIAS (USDbn) 7% CAGR 11% CAGR 5% CAGR 45.4 4.2 3.0 3.1 4.0 40.9 41.6 3.7 1.2 2.5 1.0 1.1 18.2 16.3 16.3 1.0 0.9 1.0 27.1 2.2 2.2 2.4 24.6 25.3 -0.5 -0.4 -0.4 HY-23 HY-24 HY-25 HY-23 HY-24 HY-25 HY-23 HY-24 HY-25 P&C Life

  6. Slide 6: Continuous improvement in P&C combined ratio across both segments

    P&C Continuous improvement in P&C combined ratio across both segments P&C – Group (%) P&C – Commercial (%) P&C – Retail (%) -1.2ppts -0.9ppts -2.4ppts 93.6% 92.4% 91.4% 90.5% 96.4% 94.1% -1.9ppts -1.0ppts -3.3ppts HY-24 HY-25 HY-24 HY-25 HY-24 HY-25 Combined ratio x ∆ AY undiscounted loss ratio excl

  7. Slide 7: Commercial P&C with disciplined growth, Retail supported by stronger rates

    P&C Commercial P&C with disciplined growth, Retail supported by stronger rates P&C GWP growth by driver – Commercial (USDm)1 P&C GWP growth by driver – Retail (USDm)2 +3% +15% 14,834 10,175 216 42 14,452 123 963 65 8,865 282 HY-24 Rate change Exposure change Net new business HY-25 HY-24 Rate change

  8. Slide 8: Middle Market with continued underlying growth maintaining strong profitability

    P&C - Commercial Middle Market with continued underlying growth maintaining strong profitability Middle Market GWP (USDm) Middle Market rate change (%) Middle Market combined ratio (%) Like-for-like HY-24 4,039 growth HY-25 U.S. Middle Market 49 +8% -4.3ppts U.S. Middle Market +8% 91.6% 87.3% U.S. M

  9. Slide 9: Growing preferred Specialty lines at attractive underwriting margins

    P&C - Commercial Growing preferred Specialty lines at attractive underwriting margins GWP and combined ratio (USDbn, %) Specialties portfolio (%) Accident & Health 87.1% 85.1% 85.3% 6% Credit & Surety Construction 11% 7% CAGR & Engineering 31% FY-24 GWP USD 4.8 4.9 9.4bn 21% Fin. Lines 4.3 14% 4% En

  10. Slide 10: North America successfully executing management actions to further improve motor profitability

    P&C - Commercial North America successfully executing management actions to further improve motor profitability Motor actions gaining traction, with positive impact on North America Motor – Combined ratio (%) underwriting results Exited mono-line auto program business in -21.3ppts the U.S. 120.6% 99

  11. Slide 11: Retail P&C: accelerated profitable growth supported by improving motor results in EMEA

    P&C - Retail Retail P&C: accelerated profitable growth supported by improving motor results in EMEA P&C Retail BOP (USDm) EMEA Retail Motor – Combined Retail Motor combined ratio ratio (%) improvements (%) +44% -6.9ppts 101.6% 723 94.7% Germany -13.5ppts 502 Switzerland -3.6ppts Italy +3.6ppts HY-24

  12. Slide 12: NatCat: Earnings volatility addressed through risk selection and exposure management

    P&C NatCat: Earnings volatility addressed through sophisticated risk selection and exposure management Reduced catastrophe exposure against a backdrop Reduced market share of Cat losses over time of inflation and increased modelling scope Indexed (FY-21 = 100) 2% 120 North 1% America 115 0% 110 FY-2

  13. Slide 13: P&C investment result with lower realized gains compared to the prior year

    P&C – Investment result P&C investment result with lower realized gains compared to the prior year Investment result in BOP (USDm) Investment income yield of Group investments (%)1 3.7% 3.8% -18% HY-24 HY-25 797 653 152 36 Book yield2 3.5% 3.8% Reinvestment yield2 5.0% 4.7% 1,233 1,276 Insurance fin

  14. Slide 14: Life: Profitable growth drives underlying BOP increase of 4% and highest ever CSM

    Life Life: Profitable growth drives underlying BOP increase of 4% and highest ever CSM GWP (USDm) CSM (USDm) BOP (USDm) +12% +14% -2% 18,233 13,332 1,048 1,031 16,287 11,657 55 992 +4% HY-24 HY-25 FY-24 HY-25 HY-24 HY-25 Non-completion of back book disposal August 7, 2025 Half year results 2025 14 ©

  15. Slide 15: Life Protection GWP up 3% like-for-like with margin expansion

    Life Life Protection GWP up 3% like-for-like with margin expansion and growth initiatives underway Life Protection GWP (USDm) BOP contribution (USDm)2 Growing in key markets… +3% Selected to insure 700K members of Like-for-like1 Australia’s 2nd largest superannuation fund3 -1% +3% Growth to >10% ret

  16. Slide 16: Highest ever Life CSM, up 14% in the first half supported by FX

    Life Highest ever Life CSM, up 14% in the first half supported by FX CSM walk (USDm) HY-25 line of business split (USDm) +14% +17% 1,345 13,332 13,332 572 759 572 409 5% 11,657 109 11,415 22% 20% -759 28% Of which expected return1 of ~USD 270m 28% 44% Underlying CSM accretion2 ~USD 80m 67% 52% 34% F

  17. Slide 17: Farmers Exchanges increasing policy count; Agency Brokerages enhancing acquisition

    Farmers Exchanges1 Farmers Exchanges1 increasing policy count; Agency Brokerages enhancing customer acquisition and retention GWP (USDm) Farmers Exchanges1: PIF2 month- Agency Brokerages3: PIF month- on-month change (thousand) on-month change (thousand) +5% 15,014 17 14 14,257 11 11 8 12 8 0 4 8 -11

  18. Slide 18: Farmers Exchanges' outstanding underwriting result drives strong surplus ratio

    Farmers Exchanges1 Farmers Exchanges’1 outstanding underwriting result, despite California wildfires, drives strong surplus ratio Combined ratio2 (%) Surplus ratio (%) 111.6% HY-25 17.5% 45.7% 95.4% 95.2% 5.7% 87.8% 90.5% 34-38% 15.1% 6.0% Target range 14.7% 94.1% 89.7% 80.1% 81.8% 75.8% H1-23 H2-23

  19. Slide 19: Farmers Management Services and Farmers Re driving positive momentum

    Farmers Management Services (FMS) & Farmers Re Farmers Management Services and Farmers Re driving positive momentum FMS BOP (USDm) Farmers Re BOP (USDm) 7.0% 7.0% +3% 1,026 1,061 24 30 +15% 93 1,002 1,031 81 HY-24 HY-25 HY-24 HY-25 FMS ex-Agency bokerages Agency Brokerage BOP contribution % MGEP mar

  20. Slide 20: Very strong capital position with SST ratio at 255%

    Solvency Very strong capital position with SST ratio at 255% 253% -12% 255% -3% 1% 19% -4% -8% FX SST ratio (%)1 +3% Interest rates, RE +1% Equity markets +0% Credit spreads FY-24 Assumption and Management Market Economic profit / Capital actions2 HY-25e model changes actions and other business grow

  21. Slide 21: Durable growth at industry-leading levels of return

    2025 Outlook Durable growth at industry-leading levels of return • Insurance revenue expected to grow by mid-single digit percentage year-on-year Property & Casualty • Unchanged guidance for PYD (1-2%), losses from natural catastrophes (2.5-3.0%), and projected insurance finance expenses (+USD 0.2bn

  22. Slide 22: Financial performance

    Financial performance 22 © Zurich

  23. Slide 23: A diversified business delivering durable growth at highly attractive profitability

    Group – Business operating profit A diversified business delivering durable growth at highly attractive levels of profitability BOP by region (USDm) BOP by business (USDm) +7% +7% In local currencies In local currencies +6% +6% 4,227 4,227 3,988 3,988 10 346 297 302 260 1,154 1,115 1,115 1,154 1,031

  24. Slide 24: Commentary

    Group – Business operating profit Commentary • Group business operating profit (BOP) was at a record level of • By business, P&C BOP increased 9% on a reported basis and USD 4.2bn, with 7% growth in local currencies. 10% in local currencies compared with the prior year period driven by higher insura

  25. Slide 25: Record first half net income attributable to shareholders of USD 3.1bn

    Group – Net income attributable to shareholders Record first half net income attributable to shareholders of USD 3.1bn BOP to NIAS walk (USDm) Net impact of capital gains / losses (USDbn)1 26.3% Effective tax rate 174 312 -95 Mark-to-market -164 -1 (FVTPL securities and 484 real estate) 216 Net real

  26. Slide 26: Commentary

    Group – Net income attributable to shareholders Commentary • Net impact of capital gains / losses was USD 0.2bn favorable for • Restructuring costs totaled USD 0.1bn for the first six months, the half year, with positive mark-to-market performance of assets1 slightly below the prior-year. partially

  27. Slide 27: Profitable growth supported by positive rate changes

    P&C – Top-line Profitable growth supported by positive rate changes HY-25 top-line development GWP like-for-like growth Insurance revenue Insurance revenue GWP (USDm) Rate change (%)2 Rate change outlook (%)1 (USDm) like-for-like growth (%)1 EMEA 12,009 6% 3% Moderating 9,801 7% North America 12,446

  28. Slide 28: Commentary

    P&C – Top-line Commentary • Insurance revenue rose 5% on a like-for-like basis driven by the • In North America, gross written premiums increased 3% on a like- earn-through of growth in gross written premiums. for-like basis. Underlying strong growth was offset by a planned reduction of program busi

  29. Slide 29: P&C BOP up 9% driven by a strong performance in EMEA

    P&C – BOP components P&C BOP up 9% driven by a strong performance in EMEA BOP by segment (USDm) BOP by component (USDm) +10% +10% In local currencies In local currencies +9% 2,429 2,429 2,224 124 2,224 180 122 -144 145 364 -14 1,204 1,863 2,227 1,236 1,039 781 797 313 653 373 -60 -118 -436 -451 HY-2

  30. Slide 30: Commentary

    P&C – BOP components Commentary • P&C BOP was USD 2,429m, 9% higher than in the previous year • The impact of fee result, other result, policyholder tax and non- driven by higher insurance revenue and a lower combined ratio controlling interests decreased USD 14m compared to the prior mainly driven

  31. Slide 31: P&C with strong underlying profitability, combined ratio improving in Commercial and Retail

    P&C – Combined ratio by segment and customer unit P&C with strong underlying profitability, nominal combined ratio improving in both Commercial and Retail AY combined ratio (CR) excl. catastrophes by region (%) AY CR excl. catastrophes by customer unit (%)1 -2.3ppts +0.6ppts -0.6ppts -2.1ppts +0.5pp

  32. Slide 32: Commentary

    P&C – Combined ratio by segment and customer unit Commentary • In EMEA, the accident year combined ratio ex-catastrophes • In Latin America, the accident year combined ratio ex- improved 2.3 percentage points compared to prior year with a catastrophes improved 0.6 percentage points compared to the b

  33. Slide 33: Combined ratio improvement driven by improved attritional loss ratio

    P&C – Combined ratio details Combined ratio improvement driven by improved attritional loss ratio, partially offset by higher mix-driven commissions P&C combined ratio walk (%) 93.6% 92.4% -1.9% -0.1% 0.2% -0.2% 1.0% -0.6% 0.5% HY-24 Undiscounted Cat Discount PYD Commissions Premium tax Other insura

  34. Slide 34: Commentary

    P&C – Combined ratio details Commentary • P&C combined ratio of 92.4% decreased 1.2 percentage points • Prior year development of 1.8% remained within the indicated compared to the prior year period as a 2.3 percentage point 1-2% range. All regions experienced favorable development in decrease of th

  35. Slide 35: Reinsurance program protecting our balance sheet

    P&C – Reinsurance Reinsurance program protecting our balance sheet Group catastrophe reinsurance protection (USDm) 215 400 400 400 1,200 1,200 1,200 400 550 446 850 650 300 486 200 Europe all perils1 U.S. all perils Rest of world all perils Global aggregate cat treaty2 North America earthquake swap

  36. Slide 36: Life gross premiums up 14% like-for-like, driven by unit-linked and capital efficient savings

    Life – Gross premiums Life gross premiums1 up 14% like-for-like, with growth driven by unit-linked and capital efficient savings Gross premiums by line of business (USDbn)1 Gross premiums by region (USDbn)1,2 +14% 18.2 16.3 +17% +5% 12.6 10.2 10.6 9.9 +3% +98% -3% +24% 4.8 4.7 +45% 4.1 3.3 3.5 1.7 1

  37. Slide 37: Commentary

    Life – Gross premiums Commentary • In HY-25, Life gross premiums grew 14% on a like-for-like basis • In EMEA Gross premiums were up 17% on a like-for-like basis compared to the prior year, driven by unit-linked and capital benefiting from strong growth in protection across the region, and efficient

  38. Slide 38: New business CSM grew 6% like-for-like

    Life – New business and revenues New business CSM grew 6% like-for-like CSM generating businesses1 Businesses without CSM1 PVNBP (USDm)2 Like-for-like NB CSM (USDm)2 Like-for-like Revenues (USDm) Like-for-like change (%)3 change (%)3 change (%)3 Short term protection: Protection 3,056 (2%) 385 2% 1,

  39. Slide 39: Commentary

    Life – New business and revenues Commentary • In HY-25 the Group saw strong growth in Life new business. • Insurance revenues for short term life insurance, which is mainly Long term insurance contracts earn profits over time mainly related to the protection business in Latin America, grew 11% on a

  40. Slide 40: BOP >USD 1.0bn, broadly in line with record high HY-24

    Life – Business operating profit BOP >USD 1.0bn, broadly in line with record high HY-24 BOP by driver (USDm) BOP by region (USDm) Δ Y-o-Y Δ Y-o-Y (USDm, %) (USDm, %) Long-term insurance: 844 +26 (+3%) EMEA 666 -58 (-8%) Profit release1 Short-term insurance: 288 +33 (+13%) Technical result Latin Amer

  41. Slide 41: Commentary

    Life – Business operating profit Commentary • In the first half the Life business generated BOP of USD 1,031m, • In EMEA, BOP declined 8% year on year. While insurance margin broadly in line with the record set in the prior year which included and fee result improved, overall BOP was lower than in t

  42. Slide 42: FMS and Farmers Re BOP driven by Farmers Exchanges premium growth

    Farmers Management Services (FMS) & Farmers Re FMS and Farmers Re BOP driven by Farmers Exchanges¹ premium growth and outstanding underwriting results Farmers BOP (USDm) Commentary +4% • Farmers Management Services (FMS) BOP increased 3% 1,154 1,115 compared to the prior year, driven by the higher g

  43. Slide 43: Group Functions and Operations in line with FY-25 guidance; Non-Core favorable

    Group Functions and Operations & Non-Core Businesses Group Functions and Operations in line with FY-25 guidance; Non-Core Businesses with favorable experience Group Functions and Operations BOP (USDm) Non-Core Businesses BOP (USDm) 10 -144 -40 -175 -4 -7 -210 -216 -358 -397 HY-24 HY-25 HY-24 HY-25 H

  44. Slide 44: Commentary

    Group Functions and Operations & Non-Core Businesses Commentary • Group Functions and Operations reported net expenses of USD 397 million, trending in line with the full year guidance of USD 800-850m. • The Group’s Non-Core Businesses reported an operating profit of USD 10m, compared to a loss of US

  45. Slide 45: Shareholders' equity reduction driven by annual dividend payment

    Balance sheet and capital structure Shareholders’ equity reduction driven by annual dividend payment in the first half of the year Shareholders’ equity (USDm) Capital structure (%)1 8% 8% -3% 17% 19% 3,065 4% 4% 25,472 390 684 166 24,725 19% 21% -4,665 -387 52% 49% FY-24 NIAS Dividend Currency Net T

  46. Slide 46: Commentary

    Balance sheet and capital structure Commentary • Shareholders’ equity declined by USD 0.7bn compared to year end • As a result, the proportion of debt in the IFRS based capital 2024, primarily driven by the payment of the Group annual dividend structure increased to 26.6%, up from 24.8% in FY-24, an

  47. Slide 47: Low average debt cost and balanced maturity profile

    Debt Low average debt cost and balanced maturity profile Debt (USDbn) and average debt cost (%) Balanced refinancing needs (USDbn)1 14.5 2.8 12.9 Average debt 0.3 FY-24 FY-25e 2.4 cost (%) 2.1 Subordinated 4.1% 4.1% 0.6 10.1 0.2 1.8 8.9 Senior 1.8% 1.8% 0.8 1.2 1.3 2.5 Total 3.2% 3.4% 0.4 1.9 0.6 1.

  48. Slide 48: Very strong capital position, SST ratio well in excess of the 160% floor

    Solvency Very strong capital position, SST ratio well in excess of the 160% floor Group Swiss Solvency Test (%)1 Q1-25 SST sensitivities impact (ppts)2 300% 267% 253% 255% Interest rate +50bps +13ppts 234% 216% 221% 222% 204% 212% Interest rate -50bps -14ppts 200% 182% Equities +20% +7ppts ≥160% Equ

  49. Slide 49: Well diversified capital base by business segment

    Solvency Well diversified capital base by business segment HY-25 Available Financial Resources (USDbn) HY-25 Risk Capital Split (%)2 2% Market risk Shareholders’ equity 24.7 5% 7% Premium and reserve risk 4% Dividend Accrual -2.5 Business risk Share buyback accrual 0.0 56% Natural catastrophe risk 2

  50. Slide 50: Disclaimer and cautionary statement

    Disclaimer and cautionary statement Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the Group). Fo

  51. Slide 51: Other important information

    Other important information 51 © Zurich

  52. Slide 52: We are focused on continuing to reward our shareholders

    Group – Dividend policy We are focused on continuing to reward our shareholders Dividend policy1 Dividend per share (CHF) NIAS payout ratio of ~75% 28 26 24 22 20 20 19 Dividend increases based on sustainable 17 18 earnings growth Minimum target of prior year level FY-16 FY-17 FY-18 FY-19 FY-20 FY-2

  53. Slide 53: HY-25 results confirm strong momentum toward exceeding the 2023-25 targets

    2023-25 targets HY-25 results confirm strong momentum toward exceeding the 2023–25 targets Core ROE (%)1 Cash remittances EPS growth (USD)2 SST (%)3 (USDbn) 26.3% 255% 40.2 40.4 >20% FY-25e >13.5 ≥160% FY-24 7.1 21.3 FY-23 4.8 HY-25 Target Cumulative Target FY-24 vs FY-25e Target HY-25e Target 2023-

  54. Slide 54: Update on customer satisfaction and brand consideration

    Customer KPIs Update on customer satisfaction and brand consideration tNPS1 HY1-25 vs. FY-24 Brand consideration ranking4 13% 13% 13% Global2 +2.6pts 21% 20% 20% 27% 27% 21% 33% 33% EMEA +0.4pts 33% 40% 33% Asia Pacific +3.6pts 60% 57% 53% 53% 47% Latin America +9.4 pts 40% 40% Farmers Exchanges3 +6

  55. Slide 55: Well diversified and stable investment portfolio

    Investments Well diversified and stable investment portfolio HY-25 Group investments (%)1 HY-25 asset quality (%) HY-25 non-financial credit (%) USD 58bn USD 76bn 5% 5% Other 2% 4% 0% 0% 4% 5% 9% 4% 18% Consumer 17% non-cyclical 8% 33% 3% 7% 30% Utility 2% 6% USD USD Consumer cyclical 175bn 49% 25bn

  56. Slide 56: Credit and private debt exposure

    Investments Credit and private debt exposure HY-25 rating of credit and private debt securities (%) USD 25.3bn USD 19.9bn USD 12.3bn USD 5.8bn USD 3.8bn USD 8.9bn 1% 3% 1% 13% 8% 9% 33% 6% 28% 36% 19% 48% 53% 33% 53% 82% 71% 32% 11% 2% 10% 19% 18% 1% 6% 1% Non-financial credit Financial credit Munic

  57. Slide 57: Calculation of like-for-like growth

    Alternative performance measures Calculation of like-for-like growth Like-for-like growth HY-24 (USDm) HY-25 (USDm) Like-for-like Business KPI Rep M&A/Other Adj Rep FX M&A/Other1 Adj1 (%) P&C GWP 25,342 - 25,342 27,144 143 (743) 26,544 5% P&C Insurance revenue 21,446 - 21,446 23,014 80 (553) 22,541

  58. Slide 58: Other information

    Other information 58 © Zurich

  59. Slide 59: For further information

    For further information Call us Visit or follow us Investor Relations and Rating Agency Management • Mitchell Todd +41 76 340 71 55 • Francesco Bonsante +41 44 628 00 68 • Samuel Han +41 44 625 32 57 • Johannes Herholdt +41 44 625 25 53 Investor Relations website • Michèle Matlock +41 79 740 39 30 F

  60. Slide 60: Thank you

    Thank you Upcoming events • November 6, 2025 – Update for the nine months ended September 30, 2025 • November 18, 2025 – Investor Update ©©Zurich Zurich

Zurich Insurance Group — H1 2025 Earnings Presentation on 6ix