The diluted earnings per share for Zurich Insurance in H1 2020 were CHF7.63 ($8.39), which is 40% less than CHF13.67 ($15.04) made in H1 2019
Zurich Insurance reports H1 2020 net income of $1.18bn.(Credit: Zurich)
Zurich Insurance Group has reported a 42% decline in its net income attributable to shareholders at $1.18bn for the first six months of 2020 (H1 2020) compared to $2bn made in the same period last year.
The diluted earnings per share for the Swiss insurance group in H1 2020 were CHF7.63 ($8.39), which is 40% less than CHF13.67 ($15.04) made in H1 2019.
The business operating profit (BOP) of the insurance group was down by 40% to $1.7bn in H1 2020 compared to $2.81bn reported in H1 2019. The insurance major attributed the reduction in BOP to Covid-19 impact of $686m among other factors.
Zurich Insurance said that the H1 2020 result was also affected by higher catastrophe-related claims, which were related primarily to weather events and civil unrest.
In the property and Casualty (P&C) unit, the BOP for H1 2020 came down by 55% to $751m compared to $1.65bn reported for the first six months of 2019. The insurer attributed the decline mainly on $484m of Covid-19 related impacts along with $234m of higher catastrophe claims caused by weather events across Europe and North America and civil unrest in the US.
There was a 2% drop in P&C gross written premiums and policy fees for the reported period at $18.93bn compared to $18.55bn in H1 2019.
In the life insurance business, the BOP for H1 2020 was down by 20% at $559m compared to $701m in the same period in the year before, which was mainly driven by $123m of Covid-19 related items.
The life gross written premiums, policy fees and insurance deposit declined by 28% to $13bn in H1 2020 compared to $18.1bn in H1 2019.
Zurich Insurance Group CEO comments on H1 2020 results
Zurich Insurance Group CEO Mario Greco said: “The first half of 2020 has been an unprecedented period with unforeseeable events ranging from a global pandemic and recession, to civil unrest and a higher rate of natural catastrophes. In this context, our priority has been to focus on our customers, colleagues and the communities in which we operate.
“We delivered on our commitments to our customers and provided a wide range of additional support and financial relief such as premium rebates and payment holidays.”