This figure represents a ‘robust performance given market conditions’, says the insurer

Insurer Zurich UK’s property and casualty (P&C) business has posted a combined operating ratio (COR) of 95.5% for 2022 in its full year results, released today (9 February 2022).

This represented an increase on 2021’s figure of 86.5%.

Across last year, the firm’s P&C gross written premium (GWP) also rose by 19% to £3,695m – up from £3,110 the previous year.

A rise in COR accompanied a fall in business operating profit for P&C, which saw the firm report a figure of £226m for 2022 compared to £371m in 2021.

Zurich UK said falling business operating profit was due primarily to the impact of “large losses, claims inflation and the very strong prior year result”.

It added: “Our combined ratio for 2022 reflects robust performance given the market conditions.”

Challenging operating environment

Tim Bailey, Zurich UK’s chief executive, 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.”

He added: “Despite the impact of inflationary pressures, our P&C business has continued to perform well – achieving strong top line growth across all areas with a solid combined ratio.”

Zurich’s performance in the P&C line was achieved with the help of strong new business, good retention and pricing discipline, said the insurer.

Commenting on its outlook for 2023, the insurer said it expected P&C commercial insurance margins to expand while rates continued to moderate throughout the year.

It added: “Retail and SME P&C is expected to start to see improving results as the impact of price increases takes effect and claims inflation moderates.”