Zurich Insurance has reported 12% increase in group operating profit and credited growth in its life business for more than offsetting restructuring costs of $70m (£54m, $60.3m).
The international insurer said its life business had benefited from a favourable exchange rate and from cost cutting in the first six months of 2018.
The main highlight of the firm’s interim report were:
- Life operating profits up 17% over the period to $760m, and up 12% on a like-for-like basis;
- Annual premium equivalent income grew 11% to $2.2bn on a like-for-like basis, and
- New business value (NBV) expanded one point to 26.4% ($522m). NBV increased 2% on a like-for-like basis.
Zurich’s life business in EMEA
In the first six months of 2018 the Swiss group’ acquired Blue Insurance in Europe and disposed of its UK workplace savings business.
The insurer said all regions contributed to growth in Europe, Middle East and Africa (EMEA) with performances in Switzerland, Spain and Italy a highlight.
It identified cost savings and portfolio growth for the uplift.
Zurich’s life performance in Latin America
The insurer also sketched out a “strengthened position” in Latin America with portfolio growth and improved margins in corporate protection.
During the first half of 2018 the group acquired QBE’s Latin American business and the individual and group life business of EuroAmerica in Chile.
Zurich also expanded Cover-More operations by acquiring Travel Ace and Universal Assistance in Latin America.
However, Zurich acknowledged annual premium equivalent declined slightly in the region.
Zurich’s Asia and North America life business
Organic growth in Asia were undermined by unfavourable financial markets and “weaker technical results”.
The inclusion of the integration costs of OnePath Life in Australia further contributed to a slight decline in the region.
Although no further details were provided, Zurich said its North American life insurance business also declined slightly over the first half of 2018.
Zurich faces challenging markets
Group chief executive Mario Greco said the business showed “resilience” despite challenging market conditions and was on course to meet targets.
Greco added: “In the first six months of this year, we strengthened market share in Latin America and Australia and established a powerful global platform in the highly dynamic and promising travel assistance business.
“In addition, we bolstered our innovation capabilities through technology platforms like Zurich Insurance Mobile Solutions and launched a series of new digital solutions for customers.”
