Zurich Insurance 1st Half Net Profit Climbs Slightly; To Launch CHF1.8 Billion Share Buyback
11 August 2022 - 3:48PM
Dow Jones News
By Ed Frankl
Zurich Insurance Group AG said Thursday that first-half net
profit rose slightly, missing expectations, but that operating
profit jumped as it dealt with turbulent markets and said it would
launch a 1.8 billion Swiss franc ($1.91 billion) share buyback.
The Swiss insurer reported net profit of $2.20 billion in the
six months to the end of June, up slightly from $2.19 billion in
the same period last year.
However, its closely watched business operating profit measure
climbed 25% to $3.39 billion in the quarter, its highest since
2008, driven by an underlying improvement across all businesses,
Zurich said.
That compares with expectations of net profit of $2.48 billion
and BOP of $3.28 billion.
The improvement in BOP was largely offset by adverse effects
from financial markets, hitting the net profit figure, it said.
The strength of the U.S. dollar versus other currencies was also
a headwind, Zurich said.
Meanwhile, natural-catastrophe claims were above expected
levels, while Covid-19 impacts continue to decline.
The company said it would launch a special share-buyback program
of around CHF1.8 billion in the coming months to offset dilution
from the June sale of its German life back book.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
August 11, 2022 01:33 ET (05:33 GMT)
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