Zurich Insurance tops profit view, lifts target for life insurance unit

By Paolo Laudani

Aug 6 (Reuters) - Zurich Insurance reported a half-year operating profit above market expectations on Thursday, aided by growth in its Specialty, Life and Farmers insurance products, and lifted its guidance for the life insurance unit.

Europe's second-largest insurer by market capitalisation said its operating profit was $4.8 billion in the first six months of 2026, above analysts' average estimate of $4.66 billion in a company-provided consensus.

The guidance hike for the life insurance business was the key positive of the report, analysts from RBC Capital Markets said in a note to investors.

Zurich now expects the unit's operating profit to grow by at least 10% this year, having previously guided for mid-single-digit percentage growth.

The group's shares were seen 1.5% higher in pre-market indications.

As the largest European insurer so far to report quarterly results, Zurich's figures are scrutinized ahead of Allianz's and Generali's earnings, set to be published on Friday and later on Thursday, respectively.

Vontobel analysts noted Zurich is ahead of its 2027 financial target, but market focus remains on the integration of Beazley, whose shareholders approved the Swiss group's £8.1 billion ($10.9 billion) all-cash takeover in April.

"The retention of Beazley's underwriters is key to a successful and accretive outcome, with completion confirmed to be in the second half of 2026," Vontobel wrote.

Zurich launched a three-year plan in November 2024 that targeted average annual growth of more than 9% in core earnings per share, among other things.

It posted an operating profit of $2.8 billion for its core property and casualty insurance business, above a consensus forecast of $2.73 billion, thanks to its strong underwriting performance and investment result.

($1 = 0.7431 pounds)

(Reporting by Paolo Laudani; editing by Milla Nissi-Prussak)