Zurich Insurance Group full year 2025 results investor and media presentation/Investment result and reinsurance

Investment result and reinsurance

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Slide 36: P&C investment income continues to benefit from book yield expansion

P&C investment result in BOP (USDm)

Component	FY-24	FY-25	Change
Investment income	2,503	2,635	+5%
Realized capital gains/losses	269	211	−22%
Re-/Insurance finance expenses (incl. unwind of discount)	−1,233	−1,338	+8%
Total investment result	1,539	1,508	−2%

Investment yields (%)

Metric	FY-24	FY-25
Investment income yield of Group investments	3.8%	3.9%
Book yield (debt securities)	3.6%	3.9%
Reinvestment yield (debt securities)	5.0%	4.5%
Insurance finance expense (% of liabilities for incurred claims)	2.8%	2.8%

Notes:

• Net of investment expenses. Investment income yield calculated based on average Group Investments (accounting view) during the period on an annual basis.
• Book yield calculated as weighted-average portfolio yield of debt securities during the period on an annual basis. Reinvestment yield calculated as a weighted-average trade yield of purchased debt securities with maturity >90 days during the period on an annual basis.

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Slide 37: Commentary – P&C investment result

Net investment result decreased 2% compared to the previous year as higher investment income was more than offset by lower realized capital gains and the increase of the unwind of discount.

Investment income was up 5% (USD 132m) compared to the prior-year period, driven by improved investment yields.

Realized capital gains in BOP of USD 211m were driven by an appreciation of the market value of the hedge fund portfolio in 2025 compared to USD 269m in the prior year period.

Insurance finance expenses of USD 1,338m increased 8% compared to the previous year due to an increase of the unwind of discount.

The book yield for debt securities rose to 3.9% while reinvestment rates on debt securities decreased to 4.5%.

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Slide 38: Reinsurance program protecting our balance sheet

The Group's catastrophe reinsurance program comprises the following layers:

Group catastrophe reinsurance protection (USDm)

Layer	Coverage/Limit	Attachment	Notes
Europe all perils	505	463	EUR 390m in excess of EUR 425m (EUR/USD 1.18795)
U.S. all perils	650	550
Rest of world all perils	200	300
Global cat treaty	400	400
Global top cat	400	850
Global aggregate cat treaty	215	—	Occurrence deductible USD 50m; placed USD 380m of USD 400m limit (5% co-participation)
North America earthquake swap	400	—

The total program provides USD 1,200m of protection each for Europe all perils, U.S. all perils, and Rest of world all perils when combining regional treaties with the Global cat treaty and Global top cat layers.

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Slide 39: Commentary – P&C reinsurance

Effective January 1, the Group renewed the Global Aggregate Cat treaty with an increased capacity (95% vs 87.5%) with risk adjusted stable prices.

The Global Top Cat XL was renewed including an added cyber coverage with a risk adjusted reduction in renewal pricing, reflecting reinsurers' strong confidence in the portfolio.

Other treaties such as the Global Surety XOL or U.S. Liability Quota Share have been renewed without major changes at fairly stable conditions and favorable pricing.

Overall, the Group sees stable renewal conditions and favorable pricing.