Zurich Insurance posts higher operating profit, does not expect tariff hit

By Paolo Laudani

(Reuters) -Zurich Insurance reported a 6% rise in its first-half operating profit on Thursday as individuals and businesses continued to spend on insurance policies amid concerns over severe weather-related catastrophes.

Shares in Zurich Insurance have underperformed peers this year due to the Swiss group's high exposure to the United States and the weakened U.S. dollar, analysts have said.

Higher inflation in the U.S. risks leaving the company exposed to a hike in claims costs in its operations in the country while a weaker dollar pushes up the cost of its dividends, which are paid in Swiss francs.

In a post-earnings call with journalists, CEO Mario Greco said that while he was "confused" by U.S. tariff announcements, he did not see an impact on the insurer's business.

Shares of Zurich Insurance were up 2% in pre-market trade as of 0606 GMT.

Europe's third-largest insurer by market capitalisation said its operating profit was $4.2 billion in the first six months of 2025, slightly above analysts' average estimate of $4.14 billion provided by the company.

At its core property and casualty (P&C) business, which accounts for roughly a half of the company's earnings, operating profit grew 9% year-on-year, beating analysts' expectations.

North America is Zurich Insurance's single largest market, responsible for more than half of the P&C segment's operating earnings.

Chief Financial Officer Claudia Cordioli said in the call that should inflation go up again, insurance prices would adapt.

"There will be also more investments ... in the U.S. as a result of (tariffs), which is beneficial for us as a construction underwriter," she added.

(Reporting by Paolo Laudani in Gdansk; Editing by Matt Scuffham and Milla Nissi-Prussak)