Group operating profit rose to $8.9 billion in the year, the company said, beating the $8.8 billion consensus analyst estimate. Net income jumped 17% from a year earlier to $6.8 billion, according to a statement on Thursday.
Earlier this month the Swiss insurer made an 拢8 billion ($11 billion) bid to buy Beazley Plc, an offer that’s won the tentative approval of the UK insurer’s board. The deal would create a global leader in specialty insurance and would also leverage Beazley’s Lloyd’s of London presence.
“I have complete support from my board to execute and complete this deal,” Greco said in an interview with Bloomberg Television’s Tom Mackenzie. “When we went public on our intention to make an offer for Beazley, we wanted to hear our shareholders’ reaction. And that has been super positive.”
Zurich Insurance’s key property and casualty unit rose by 22% from the same period a year earlier, with $5.1 billion in operating profit. The unit benefited from higher revenue and an improved combined ratio of 92.6%.
The US-focused Farmers arm saw $2.4 billion in operating profit, in line with estimates.
Zurich shares opened lower on Thursday, with analysts pointing to mixed underlying results in non-life insurance lines. Shares traded 1.2% lower at 561 Swiss francs at 9:29 a.m. in Zurich.
Good Weather
“The non-life beat is relatively low quality, with margins benefiting from lower catastrophe losses and good weather affecting crop insurance,” analysts at Jefferies wrote in a note.
The Swiss insurer has said the Beazley transaction would be in line with the strategic priorities indicated at its Nov. 18 investor day and has already acquired 1.5% of the company’s shares.
On Monday, Beazley and Zurich Insurance Group agreed to extend the deadline for Zurich to make a firm intention for the firm to March 4, according to a statement. A decision on launching of a Lloyd’s of London syndicate will be held off until the Beazley bid outcome is clear, Greco said Thursday.
Read More: Beazley Agrees to Zurich’s Sweetened 拢8 Billion Takeover Bid
Zurich Insurance also said it proposed the election of former Munich Re AG executive Mary Forrest to its board at the next shareholders meeting on April 8. Christoph Franz is stepping down after 12 years on the board.
Photograph: Banners fly outside a Zurich Insurance Group AG building in Zurich. Photo credit: Alessandro Della Bella/Bloomberg
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