Zurich: shares slightly up after 'solid' first-half results
(CercleFinance.com) - Swiss insurer Zurich Insurance Group posted a 19% rise in first-half net profit, slightly ahead of analysts' expectations despite "challenging market conditions.
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Net income after tax attributable to shareholders (NIAS) increased to 1.8 billion dollars in the first six months of the year, from 1.5 billion dollars in the same period of 2017, reflecting a lower tax rate following reforms in the US.
Business operating profit (BOP) for the six months ended 30 June came in at 2.4 billion dollars, up 12% over the previous year, helped by reduced expenses in the property and casualty (P&C) business, the group said.
The P&C business saw its combined ratio improve by two percentage points to 97.5% in the past quarter, thanks to a better current accident year loss ratio and lower administration expenses.
The performance also benefited from more favourable exchange rates and the absence of charges, Zurich added.
"A solid result, but perhaps not enough to drive outperformance from here," analysts at UBS reacted this morning.
Investors seemed to share this view: Zurich shares were up just 0.5% on the SIX Swiss Exchange on Thursday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
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Net income after tax attributable to shareholders (NIAS) increased to 1.8 billion dollars in the first six months of the year, from 1.5 billion dollars in the same period of 2017, reflecting a lower tax rate following reforms in the US.
Business operating profit (BOP) for the six months ended 30 June came in at 2.4 billion dollars, up 12% over the previous year, helped by reduced expenses in the property and casualty (P&C) business, the group said.
The P&C business saw its combined ratio improve by two percentage points to 97.5% in the past quarter, thanks to a better current accident year loss ratio and lower administration expenses.
The performance also benefited from more favourable exchange rates and the absence of charges, Zurich added.
"A solid result, but perhaps not enough to drive outperformance from here," analysts at UBS reacted this morning.
Investors seemed to share this view: Zurich shares were up just 0.5% on the SIX Swiss Exchange on Thursday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.