Farmers estimates $600 million loss from California wildfires

Zurich reported a record-breaking business operating profit (BOP) of $7.8 billion, with return on equity (ROE) at 24.6% and cash remittances of $7.1 billion. The insurer also announced an 8% increase in its dividend to CHF 28 per share.

Key Highlights:

• Adjusted earnings per share (EPS) rose 10% to $42.2, while net income jumped 34% to $5.8 billion.
• Property & Casualty BOP grew 8% to $4.2 billion, with an improved combined ratio of 94.2%.
• Life BOP hit $2.2 billion, driven by unit-linked and protection products.
• Farmers BOP reached $2.3 billion, supported by a 91.4% combined ratio—a 12-point improvement.

California Wildfires Impact

The Farmers Exchanges, which operate in California, anticipate a $600 million pre-tax loss from the 2025 wildfires, plus a $250 million reinstatement premium. Zurich estimates a $200 million pre-tax impact, including Farmers Re.

Looking Ahead

Zurich targets 9%+ annual EPS growth over the next three years, with cumulative cash remittances exceeding $19 billion by 2027.

The insurer also announced the nomination of Thomas Jordan—former Chairman of the Swiss National Bank—to its Board of Directors.