Zurich UK reports strong full-year financial results

Zurich UK today reports its full-year results for the period ended 31 December 2021.

Financial and operating highlights

• Strong trading performance with both Property and Casualty (P&C) and Life top line growing 13% and 4% compared to 2020.
• UK full-year business operating profit of £470 million, up from £111 million in 2020, which was impacted by Covid-related claims.
• Customer satisfaction levels (as measured by our transactional net promoter score) ahead five points on 2020, accelerated by ongoing digital transformation.
• A total of £2 billion paid in claims across all UK business areas. 

Tim Bailey, CEO of Zurich UK said:

“We achieved strong results in 2021, with an acceleration in revenue growth returning profits to pre-pandemic levels. This performance has been driven by disciplined execution and a relentless focus on our customers. Last year, we paid out £2 billion in claims and achieved further improvements in customer satisfaction. Thanks to the hard work of our employees, we remain firmly on track to achieve our growth ambitions. We will continue to build on this progress in 2022, as we help our customers navigate the recovery and manage their evolving risks.”

Property and Casualty

• Gross written premium (GWP) is up 13% to £3,110 million from £2,742 million in 2020.
• Combined ratio (COR) has improved to 86.5% from 97.8%, reflecting underwriting discipline and strong execution of our strategy, supported by benign weather and catastrophe claims experience.
• Business operating profit (BOP) of £371 million is up from £68 million reported in 2020 which was impacted by Covid-related claims.

Property and Casualty business operating profit of £371 million was significantly higher than the £68 million reported in the previous year. This was driven by strong execution of our strategy, with improvements in underwriting and the customer experience, and non-repeating Covid-related claims.  Gross Written Premium of £3,110 million increased 13%, supported by strong new business, high retention, and new Retail distribution deals.

Commenting on the P&C results, Tim Bailey said:

“Our P&C business delivered a strong trading performance, with double-digit growth across all segments. This result reflects the success of our work in recent years to simplify and strengthen the business. We are now seeing the rewards of underwriting improvements, new digital capabilities and a transformation in the customer experience. Fewer catastrophic losses and relatively benign weather further improved the result.”

Life

• Life protection annual premium equivalent (APE) of £133 million is up 4% from £128 million in 2020.
• Life protection new business value (NBV) improved significantly to £66 million from £37 million in 2020, reflecting improving margins across our Retail and Zurich Corporate Risk businesses.
• Business operating profit of £99 million, up from £44 million reported in 2020.

Life full-year BOP was up 127% compared with the prior year. Life APE also grew, with sales standing up well despite the economic slowdown. NBV is significantly up from prior year benefiting from improving margins across our Retail and Zurich Corporate Risk businesses.

Commenting on the Life results, Tim Bailey said:

“Our Life business has continued to grow, delivering a solid performance over the full year, despite the ongoing economic and claims impact of the pandemic. This result is testament to the strength and breadth of our proposition, and commitment to improving the customer experience. As we emerge from the pandemic, our growing range of protection products and market-leading digital platform, position us well to meet the needs of increasingly health-conscious consumers.”