Zurich’s net investment result contributes 22% less to total revenue

Written by Adam Cadle

13/08/2020

Zurich’s net investment result on group investments, which includes net investment income, realised net capital gains, and losses and impairments, contributed $2.8bn to the group’s total revenues for the first half year of 2020, down 22% on the prior-year period.

The insurer’s net return on group investments was 1.4%.

First-half 2020 business operating profit (BOP) was $1.7bn, a decline of 40% compared with $2.8bn in the first half of 2019. The underlying business performance was broadly in line with the previous year’s, with the decline largely due to an overall COVID-19 related impact of $686m and the pandemic’s impact on financial markets leading to less favourable performance of the group’s investments, in particular in hedge funds.

Zurich’s capital position remains strong with the Z-ECM ratio estimated at 102% at 30 June 2020 and the Swiss Solvency Test ratio at 185%.

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