This article first appeared on GuruFocus .
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BOP (Business Operating Profit):Up 14% to USD 8.9 billion.
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Core EPS:Increased by 13%.
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Net Income:Record level of USD 6.8 billion.
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Core ROE:Reached 26.9%.
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P&C Gross Written Premiums:Exceeded USD 50 billion for the first time.
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P&C BOP:Exceeded USD 5 billion for the first time.
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Life BOP:Underlying increase of 10%.
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Farmers Combined Ratio:84.6%.
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Cash Remittances:USD 7.4 billion.
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Proposed Dividend:CHF 30, up more than 7% from the prior year.
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P&C Combined Ratio:92.6%, with BOP up by 22%.
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Commercial Insurance Combined Ratio:Improved by 1.2 percentage points to 91%.
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Retail P&C BOP:Increased by 50% year-over-year.
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Retail Gross Written Premium Growth:16% increase in US dollars, 7% on a like-for-like basis.
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Life BOP:All-time high of USD 2.3 billion.
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Protection Gross Written Premium:5% increase year-on-year on a like-for-like basis.
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New Business Premiums in CSM Perimeter:Grew by 14% on a like-for-like basis to USD 19.5 billion.
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Farmers Gross Written Premium Growth:4% growth.
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Farmers Policy Count:Grew organically for the first time in over 10 years.
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Release Date: February 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Zurich Insurance Group AG ( ZFSVF ) reported a record BOP of USD 8.9 billion, up 14%, and core EPS increased by 13%.
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The company achieved a record net income attributable to shareholders of USD 6.8 billion and a core ROE of 26.9%.
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P&C gross written premiums exceeded USD 50 billion for the first time, with BOP surpassing USD 5 billion.
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Farmers segment showed strong performance with a combined ratio of less than 85% and policy count growth for the first time in over 10 years.
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The proposed dividend increased by more than 7% to CHF 30, marking the eighth increase in 10 years, supported by a payout ratio of 76%.
Negative Points
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Concerns were raised about the AI risk to Farmers, with discussions on potential disintermediation in the insurance sector.
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The pricing improvement of 2% for the full year and 3% over nine months was questioned as not being strong enough.
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Specialty lines faced some pressure, with the AY CoR showing a slight deterioration despite improvements in construction.
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The retail non-motor segment's performance was questioned, with a need for further improvement in returns.
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The expense ratio increased from 28.6% to 29.9%, partly due to acquisition impacts, raising concerns about underlying cost management.
Q & A Highlights
Q: Can you elaborate on the AI risk to Farmers and the impact of pricing improvements? A: Mario Greco, CEO, explained that the AI risk is not significant for Farmers as it operates in a multichannel distribution system. AI has actually made the agency force more efficient, reducing operating costs by 20% and allowing for more effective customer outreach. Pricing improvements are supported by better risk selection and customer loyalty, which reduces the need for higher charges. (Mario Greco, CEO; Claudia Cordioli, CFO)
Q: What is the outlook for the specialty lines, particularly in construction? A: Mario Greco stated that the specialty lines, especially construction, are not under pressure. The apparent increase in combined ratio is due to a heavier construction portfolio, which is in high demand. The business remains stable and profitable, with significant growth opportunities in construction and infrastructure. (Mario Greco, CEO)
Q: How is the mid-market segment performing, and are you still on track to meet the $10 billion GWP target? A: Despite program cancellations, the mid-market segment is growing near double digits, and Zurich remains confident in reaching the $10 billion GWP target. Recent investments in underwriters are starting to show positive results, with growth in the US in the low teens. (Mario Greco, CEO; Claudia Cordioli, CFO)
Q: Can you discuss the cash remittances and the potential for future optimization? A: The $7.4 billion remittances were higher than expected due to optimizing reinsurance structures and UK pension business cash repatriation. Zurich plans to continue optimizing liquidity, aiming to exceed the $19 billion target over the planned period. (Claudia Cordioli, CFO)
Q: What is the outlook for the Life business, given the strong CSM growth? A: Mario Greco mentioned that Zurich is conservative in its outlook, aiming for mid-single-digit growth. The company prefers to exceed expectations, as it has consistently done in the Life segment. (Mario Greco, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
