Zurich UK reports strong growth and record customer satisfaction levels despite challenging market conditions

Financial and operating highlights

• Strong Property and Casualty (P&C) trading performance with top line growth of 19%
• Customer and distributor satisfaction - as measured by transactional net promoter score - at a record high
• UK Business Operating Profit of £403 million, down from £470m in 2021, with a Combined Ratio of 95.5%
• Continued support for customers and communities with over £2.1 billion paid in claims and more than £2.3 million donated by Zurich Community Trust to charities throughout the UK

Tim Bailey, CEO of Zurich UK, said:

“In challenging market conditions, we have delivered double-digit revenue growth and record levels of customer and broker satisfaction. These results demonstrate the resilience of our business and balance in our portfolio.

“Despite the impact of inflationary pressures, our P&C business has continued to perform well, achieving strong top line growth across all areas and a solid combined ratio. We have also delivered a positive result in our Life business, with both top and bottom-line growth.

“This performance is testament to the outstanding efforts of our team, our quality products and our focus on creating exceptional experiences for customers and brokers.

“In 2023, we will continue to look for ways to stand out for our customers, distributors, and communities, while retaining our focus on making Zurich the best place to work for the widest range of people.”

Property and Casualty

• Gross written premium (GWP) up 19% to £3,695 million from £3,110 million in 2021
• Combined ratio (COR) of 95.5% vs 86.5% in 2021
• Business operating profit (BOP) of £226 million vs £371 million in 2021

In our P&C business, we achieved top line growth in all areas, helped by strong new business, good retention and our pricing discipline. Business Operating Profit was lower than last year primarily due to the impact of large losses, claims inflation and the very strong prior year result. Our Combined Ratio for 2022 reflects robust performance given the market conditions.

Life

• Life protection annual premium equivalent (APE) of £134 million up slightly from £133 million in 2021
• Life protection new business value (NBV) improved significantly to £79 million from £66million in 2021
• Business operating profit of £177 million, up from £99 million reported in 2021.

In our Life business, we have seen growth in New Business Value, reflecting the strength of our Retail Protection and Zurich Corporate Risk propositions. The favourable Business Operating Profit reflects the quality of our overall Life portfolio, helped by favourable claims experience and improving margins as we deliver on our strategy.