Zurich Insurance Group AG projects pre-tax losses of $200 million stemming from the California wildfires that occurred in January. This estimate includes the impact on its Farmers business. Despite this, the company reported a 5% increase in profit for the year 2024.
The group's operating profit saw a rise to $7.75 billion for the year, surpassing the consensus analyst estimate of $7.64 billion. Net income also increased significantly, up 34% from the previous year to reach $5.81 billion. Following these financial results, shares of Zurich Insurance rose by as much as 3.2%.
CEO Mario Greco noted that the $200 million impact from the wildfires is "definitely not too much." He clarified that Zurich itself does not insure private homes in California; this is handled by Farmers. Zurich's exposure in California is limited to some commercial businesses, and the company manages the Farmers business, earning fees from it. An earlier estimate from the CFO had placed wildfire costs at around $150 million.
Zurich also reported strong performance in other areas, with Property & Casualty (P&C) gross written premiums rising 8% on a like-for-like basis, driven by 9% growth in Commercial Insurance. Life protection premiums increased 9% on a like-for-like basis, and Farmers Exchanges' gross written premiums were up 4%, supported by a policy count increase.
