This figure represents a ‘robust performance given market conditions’, says the insurer
Insurer Zurich UK’s property and casualty (P&C) business has posted a combined operating ratio (COR) of 95.5% for 2022 in its full year results, released today (9 February 2022).
This represented an increase on 2021’s figure of 86.5%.
Across last year, the firm’s P&C gross written premium (GWP) also rose by 19% to £3,695m – up from £3,110 the previous year.
A rise in COR accompanied a fall in business operating profit for P&C, which saw the firm report a figure of £226m for 2022 compared to £371m in 2021.
Zurich UK said falling business operating profit was due primarily to the impact of “large losses, claims inflation and the very strong prior year result”.
It added: “Our combined ratio for 2022 reflects robust performance given the market conditions.”
Challenging operating environment
Tim Bailey, Zurich UK’s chief executive, said: “In challenging market conditions, we have delivered double digit revenue growth and record levels of customer and broker satisfaction.
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“These results demonstrate the resilience of our business and balance in our portfolio.”
He added: “Despite the impact of inflationary pressures, our P&C business has continued to perform well – achieving strong top line growth across all areas with a solid combined ratio.”
Zurich’s performance in the P&C line was achieved with the help of strong new business, good retention and pricing discipline, said the insurer.
Commenting on its outlook for 2023, the insurer said it expected P&C commercial insurance margins to expand while rates continued to moderate throughout the year.
It added: “Retail and SME P&C is expected to start to see improving results as the impact of price increases takes effect and claims inflation moderates.”
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