Zurich Insurance Group AG reported record earnings for 2025, strengthening Chief Executive Officer Mario Greco’s position as he pursues an £8 billion acquisition of UK specialty insurer Beazley Plc.

Group operating profit rose to $8.9 billion for the year, surpassing the $8.8 billion consensus analyst estimate. Net income increased 17% year-on-year to $6.8 billion, according to the company’s statement.

Beazley bid gains momentum

Earlier this month, Zurich made an £8 billion ($11 billion) bid for Beazley, an offer that has received tentative approval from the UK insurer’s board. If completed, the deal would create a major global specialty insurance platform and expand Zurich’s footprint within the Lloyd’s of London market, where Beazley has a strong presence.

“I have complete support from my board to execute and complete this deal,” Greco said in an interview with Bloomberg Television. He added that shareholder reaction to the proposed acquisition has been “super positive.”

Zurich has already acquired a 1.5% stake in Beazley. Earlier this week, both companies agreed to extend the deadline for Zurich to make a formal offer until March 4. Greco also indicated that a decision on launching a new Lloyd’s syndicate would be postponed until the outcome of the Beazley bid is clear.

Strong performance in core divisions

Zurich’s property and casualty (P&C) division delivered operating profit of $5.1 billion, up 22% from the prior year. The improvement was driven by higher revenues and a stronger combined ratio of 92.6%, reflecting underwriting discipline and lower claims volatility.

The US-focused Farmers division generated $2.4 billion in operating profit, broadly in line with market expectations.

Despite the headline profit beat, Zurich shares opened 1.2% lower at 561 Swiss francs in early trading in Zurich. Analysts noted that part of the outperformance in non-life insurance lines was supported by relatively benign catastrophe losses and favourable weather conditions, particularly in crop insurance.

Board changes

Separately, Zurich proposed the election of Mary Forrest, a former executive at Munich Re AG, to its board at the next shareholder meeting on April 8. Christoph Franz will step down after 12 years on the board.

With record profits and shareholder backing, Zurich enters 2026 in a position of financial strength as it seeks to expand further into specialty insurance through the proposed Beazley acquisition.