Zurich Insurance Group full year 2025 results investor and media presentation/Group financial performance

Slide 24: Diversified business growing consistently at highly attractive margins

Group BOP by region (USDm)

Region	FY24	FY25	Chg (USDm)	Chg (%)
EMEA	3,062	3,604	+542	+18%
North America	2,370	2,673	+303	+13%
Farmers	2,286	2,387	+101	+4%
Asia Pacific	586	633	+47	+8%
Latin America	580	637	+57	+10%
Other (incl. Group Functions & Operations, Non-Core, Group Reinsurance)	−1,133	−1,078	+55	—
Total	7,751	8,856	+1,105	+14%

Group BOP by business (USDm)

Segment	FY-24	FY-25	Change
P&C	4,204	5,129	+22%
Life	2,235	2,288	+2%
Farmers	2,286	2,387	+4%
Group Functions and Operations	−870	−900	—
Non-Core Businesses	−104	−48	—
Total	7,751	8,856	+14%

Growth was +14% in local currencies on both a regional and business basis.

~*~

Slide 25: Commentary – Group business operating profit

Group business operating profit (BOP) was at a record level of USD 8.9bn, with 14% growth in local currencies.

EMEA BOP increased by 18% driven by strong performance both in P&C and Life. P&C BOP benefited from strong topline growth, a notable Retail recovery, and an improved investment result. Life BOP benefited from a strong underlying performance which offset the non-repeat of USD 154m favorable one-offs in the prior year.

North America BOP was 13% above prior year mainly due to solid growth and a strong underwriting performance in P&C.

Asia Pacific BOP was 8% above prior year mainly driven by Life.

Latin America BOP increased 10% driven by Life.

By business, P&C BOP increased 22% on a reported basis and in local currencies compared with the prior year period driven by higher insurance revenues primarily driven by a strong Retail performance as well as a lower combined ratio due to improved pricing sophistication and risk selection as well as higher earned premium rates.

Life BOP of USD 2.3bn exceeded the previous year record level. Both the insurance service result and fee result improved year on year, benefiting from a record-high CSM, short-term insurance revenue growth, and higher assets under management.

Farmers delivered record BOP of USD 2.4bn, with FMS benefiting from underlying growth at the Farmers Exchanges and a stable MGEP margin. Farmers Re result driven by improved underwriting at the Exchanges.

Higher Group Functions and Operations operating cost compared to the prior-year, driven by unfavorable FX.

The Group's Non-Core Businesses reported a lower operating loss, driven by favorable year-on-year loss development and the absence of the prior year's reinsurance loss.

~*~

Slide 26: Record net income attributable to shareholders of USD 6.8bn

BOP to NIAS walk – FY-25 (USDm)

Item	FY-25	FY-24
BOP	8,856	—
Net impact of capital gains/losses	+1,058	+390
Restructuring costs	−299	—
Other adjustments	−419	—
Net gains/(losses) on disposal	−7	—
Income taxes	−2,610	—
Non-controlling interests	−403	—
NIAS attributable to shareholders	6,798	5,814
Effective tax rate	26.6%	—

Net impact of capital gains/losses – FY-25 breakdown (USDm)

Component	Amount
Mark-to-market (FVTPL securities and real estate)	+1,887
Net realized capital losses	−226
Impairments, FX and other	−603
Net impact of capital gains/(losses)	+1,058

~*~

Slide 27: Commentary – Net income attributable to shareholders

Net impact of capital gains/losses was USD 1.1bn favorable for the full year, with positive mark-to-market performance of assets partially offset by capital losses and policyholder sharing.

The net mark-to-market of assets was USD 1.9bn favorable, driven mostly by favorable capital markets. The full year net realized capital losses were USD 0.2bn, predominantly from fixed income portfolios as unrealized losses crystallized upon sale. Impact from impairments, FX and other was USD 0.6bn adverse, consisting mostly of policyholder participation in capital gains and losses and to a lesser extent from FX losses.

Restructuring costs totaled USD 0.3bn for the full year, in line with the prior-year.

Other adjustments of USD 0.4bn include amortization of intangibles from business combinations, certain non-claims related litigation cost, charitable contributions and smaller non-BOP items. Current year includes TravelGuard integration costs.

No material net gains/(losses) on disposals.

Note: Securities classified as Fair Value through Profit and Loss (FVTPL) for IFRS reporting purposes. Net impact of capital gains/losses and impairments on Group investments and unit-linked investments, net of change in liabilities for investment contracts and other funds as well as re-/insurance finance income/expenses.