Zurich reports business operating profit of USD 2.9 billion in 2015

On 11 February 2016, Zurich Insurance Group announced its 2015 annual results. Overall business operating profit (BOP) was USD 2.9 billion, a decrease of 37 percent from 2014, reflecting weaker results from the General Insurance business. Net income attributable to shareholders decreased by USD 2.1 billion, or 53 percent, to USD 1.8 billion, primarily due to the decrease in business operating profit and lower net gains on investments.

General Insurance was affected by a substantial increase in the costs of large and catastrophe losses, particularly in the second half of the year. Global Life achieved a strong result, while maintaining its focus on priority markets and extracting value from in-force business. Farmers continued its positive momentum from premium growth, though Farmers Re incurred higher losses.

To address the disappointing results of General Insurance business, Zurich has taken measures to reduce earnings volatility, such as re-underwriting or exiting underperforming portfolios. As the global economic outlook remains challenging, Zurich has accelerated a program to increase efficiencies, and aim to exceed the previously communicated cost savings target for 2016 of USD 300 million.