# Zurich Insurance H1 operating profit leaps 60% as COVID impact wanes Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-12 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Zurich Insurance Group's First-Half Business Operating Meta Description: Zurich Insurance Group's first-half business operating profit surged to $2.71 billion, beating market expectations. CEO expects a strong rebound in profits URL: https://financedigest.com/zurich-insurance-h1-operating-profit-leaps-60-as-covid-impact-waneshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-12t053240z1lynxmpeh7b06frtroptp3zurich-ins-group-results-1736838026066-compressed.jpg) ZURICH (Reuters) – Zurich Insurance Group’s first-half business operating profit jumped 60% to $2.71 billion as strong underlying earnings and a reduced impact from COVID-19 more than compensated for higher losses from extreme weather events, it said on Thursday. The market had expected first-half business operating profit of $2.52 billion, according to a company-compiled consensus. Chief Executive Mario Greco had told Reuters in June that Europe’s fifth-largest insurer expected a “strong rebound” in profits in 2021. Net income attributable to shareholders rose 86% to $2.19 billion thanks to the operating [profit boost and higher](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit") levels of realised capital gains. Its Swiss Solvency Test (SST) ratio of 206% showed strong capitalisation, it said, adding it remained on [track to achieve 2022 targets](https://www.financedigest.com/electric-car-maker-lucid-on-track-for-2022-2023-output-targets-ceo-says.html "Electric car maker Lucid on track for 2022, 2023 output targets, CEO says"). We achieved outstanding results in the first six months of 2021 with profits back to the levels of 2019, when we [reported our best first half](https://www.financedigest.com/european-governments-spend-half-a-trillion-euros-on-energy-crisis-report-2.html "European governments spend half a trillion euros on energy crisis – report") in a decade. This is a remarkable achievement considering the elevated natural [catastrophe losses](https://www.financedigest.com/flood-most-damaging-peril-of-2016-causing-nearly-one-third-of-210bn-global-economic-losses-according-to-aon-catastrophe-report.html "Flood most damaging peril of 2016, causing nearly one-third of 0bn global economic losses – according to Aon catastrophe report") in the period and the ongoing public health crisis,” Greco said in a statement. It took a $73 [million hit to operating profit](https://www.financedigest.com/hellofresh-sees-2023-core-profit-of-460-540-million-euros.html "HelloFresh sees 2023 core profit of 460-540 million euros") from COVID-19, down from $686 million in the first half of 2020. Higher mortality-related claims in [life insurance](https://www.financedigest.com/types-of-life-insurance.html "Types of Life Insurance") offset a net favourable impact in property and casualty, where reduced claims frequency associated with COVID-19 restrictions more than compensated for COVID-19 related claims, it said. Property and casualty premiums grew 12% on a like-for-like basis, with strong growth in both [commercial insurance and retail](https://www.financedigest.com/iveco-to-transfer-nordic-retail-and-commercial-operations-to-hedin.html "Iveco to transfer Nordic retail and commercial operations to Hedin") business, it said. It saw “significant rate [increases” in commercial business](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") across all regions, “with these trends expected to continue through the second half of the year. [(Reporting by Michael Shields](https://www.financedigest.com/asia-pacific-region-to-lead-the-global-static-shielding-bags-market-fact-mr-report.html "Asia Pacific Region to Lead the Global Static Shielding Bags Market: Fact.MR Report"), editing by Kirsti Knolle, John Revill and Kim Coghill) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---