Zurich Insurance has today reported a 20% fall in 2020 operating profit, as claims related to the Covid-19 pandemic and higher losses from natural catastrophes bit into earnings.
Business operating profit fell to $4.24 billion, Europe's fifth-largest insurer said, while net profit of $3.834 billion exceeded the $2.93 billion average expectation in the company's own poll of 21 analysts.
Zurich proposed an unchanged dividend of 20 Swiss francs per share.
Insurers, such as Zurich, have faced hefty claims from event cancellation and business interruption due to government lockdowns to curb the spread of Covid-19 infection.
A strong hurricane season in the United States also put further pressure on earnings in the second half of the year.
It has been looking to higher premiums to help cushion the impact.
Zurich today said it had seen a return to growth in the second half, as premiums in the commercial business which make up around two-thirds of its property & casualty (P&C) business had risen, and was now well positioned to benefit this year.
"Our business performed well, with strong growth in commercial insurance," Zurich's chief executive Mario Greco said in a statement.
"Our results confirm the strength of our business, the agility of our people and the timeliness of our digital strategy," he added.
Covid-19 related P&C claims, net of reinsurance and related reductions in claim frequency, came in at $450m for the full year, as flagged during the first half.
Catastrophe losses, meanwhile, were $588m higher than in 2019.
