Zurich reports a business operating profit of USD 2.2 billion for first half of 2016

On August 11, 2016, Zurich Insurance Group reported a business operating profit (BOP) for the first six months ended June 30, 2016 of USD 2.2 billion, down 2% from the prior year period. Net income attributable to shareholders (NIAS) of USD 1.6 billion was down 22% due to a lower level of realized capital gains, restructuring charges related to the Group’s turnaround plans and a higher effective tax rate.

Despite a 2% decrease of BOP from the prior year period, we have made significant progress over the last six months, with consistent improvement in our underlying performance in the second quarter. Our General Insurance performance improvement continues; combined ratio for 2016 first half improves to 98.4% from 103.6% for full-year 2015.

Both Global Life and Farmers have continued the positive momentum of previous quarters. The capital position is resilient and cash remittances for the three years to end-2016 are still on track to exceed USD 10 billion. We are confident that by continuing our improvement actions, we will be able to deliver satisfactory returns to our shareholders in 2016 and in the following years.

In June, the Group announced that it will adopt a simpler organization and management structure to make the company more agile and accountable while bringing management closer to customers.