Zurich Insurance Group AG is showering shareholders with a bigger dividend after smashing its FY25 profit record at $8.9 billion, a 14% jump from 2024. The Swiss insurer's board is hiking the annual payout by CHF 30 per share, a 7% increase, pending shareholder approval at the upcoming AGM. This move underscores the insurer's robust financial health, driven by a sharp rebound in property and casualty underwriting and strong performance across all three core business segments. Core return on equity surged to 26.9%, comfortably above its 2025-2027 target of greater than 23%. Property and casualty operating profit alone climbed 22% to $5.1 billion, fueled by premiums exceeding $50 billion for the first time and a combined ratio of 92.6% indicating profitability.

Natural catastrophe losses were exceptionally low at 1.2% of premiums, well below guidance. Farmers Exchanges, Zurich's California-based interinsurance exchange, reported record $29.6 billion in gross written premiums. Life business operating profit also rose, supported by a record contractual service margin. Cash remittances totaled $7.4 billion, reflecting strong cash generation. The company's estimated Swiss Solvency Test ratio stood at a healthy 259%.