Zurich UK returns to pre-pandemic level with £450m operating profit

Zurich UK has returned to its pre-pandemic level with a business operating profit of £450m for the year ending 31 December 2021, according to its year-end financial results, published today (10 February 2022).

This was up from £111m in 2020 – a year that was heavily impacted by Covid-related claims. Overall, Zurich UK paid £2bn in claims across all UK business areas over the last year.

Meanwhile, gross written premium (GWP) was up by 13% in 2021 to reach £3.1bn - the insurer attributed this figure to strong new business levels, high retention and new retail business deals.

This compares to GWP of £2.7bn in 2020.

Tim Bailey, Zurich UK’s chief executive, said: “We achieved strong results in 2021, with an acceleration in revenue growth returning profits to pre-pandemic levels.

“This performance has been driven by disciplined execution and a relentless focus on our customers. Last year, we paid out £2bn in claims and achieved further improvements in customer satisfaction.

“Thanks to the hard work of our employees, we remain firmly on track to achieve our growth ambitions. We will continue to build on this progress in 2022, as we help our customers navigate the [Covid-19] recovery and manage their evolving risks.”

Double-digit growth

The insurer’s property and casualty (P&C) top line grew by 13% in 2021 compared with 2020.

Its P&C operating profit was £371m, up from £68m in 2020, which was again impacted by Covid-related claims.

Zurich UK’s combined operating ratio (COR) also saw an improvement to stand at 86.5% for last year, versus 97.8% in 2020.

This reflects the insurer’s underwriting discipline and the strong execution of its strategy, supported by benign weather and less catastrophe claims, Zurich UK reported.

Bailey continued: “Our P&C business delivered a strong trading performance, with double-digit growth across all segments.

“This result reflects the success of our work in recent years to simplify and strengthen the business. We are now seeing the rewards of underwriting improvements, new digital capabilities and a transformation in the customer experience. Fewer catastrophic losses and relatively benign weather further improved the result.”

The insurer’s net promoter score was up five points compared with 2020, with customer satisfaction improved thanks to its ongoing digital transformation.