Zurich Insurance has reported an increase in earnings for 2025, propelled by growth across all business segments.

The Swiss insurer’s net income attributable to shareholders after tax was $6.8bn for the year, a 17% increase from $5.8bn in 2024.

Its business operating profit (BOP) climbed 14%, reaching an all-time high of $8.9bn.

The results follow the announcement earlier this month that Zurich Insurance Group and Beazley have reached an agreement in principle on the financial terms of a proposed $10.8bn (£8bn) acquisition, which would see Zurich purchase all outstanding Beazley shares for cash.

Zurich’s property and casualty (P&C) arm recorded a BOP of more than $5bn for the first time, an increase of 22%. The combined ratio improved to 92.6%.

Insurance revenue increased 8% to $48.2bn, while gross written premiums (GWP) stood at $50.4bn. Rate rises averaged 2%, driven by retail and selected commercial lines.

In the Life division, BOP stood at $2.3bn, surpassing last year’s figures.

Both insurance service and fee results were higher year-on-year, supported by increased contractual service margin and short-term insurance revenue growth.

Life BOP rose by 2%, with underlying growth at 10% compared to the prior year, with $154m in one-off items.

Commercial Insurance’s BOP reached $3.8bn, up 12%, attributed to portfolio management and growth in the Middle Market and specialty areas, combined with limited natural catastrophe impacts.

Retail business operating profit rose by half to $1.5bn, reflecting premium growth of 16%, stricter pricing, risk selection improvements, and higher premium rates, particularly from EMEA operations.

The Farmers Exchanges posted a net policy count increase of more than 150,000, the first such rise in over ten years, with GWP up 4%.

The combined ratio was recorded at 84.6%, with a surplus ratio of 52.9% at the end of the year. Farmers achieved its highest-ever BOP at $2.4bn.

Mary Forrest has been nominated for election to Zurich’s Board of Directors, and Jasmin Staiblin is set to become vice-chair, taking over from Christoph Franz.

Zurich Insurance CEO Mario Greco said: “I am extremely proud to see all our businesses contributing to these record results, which indicate that we are well on track to achieve or even exceed our 2027 targets, and position us well to capture future growth opportunities.

“I would like to thank all our customers who have continued to reward us with their strengthened loyalty and my colleagues who contributed to achieving this outstanding performance.”