Financial Results
Zurich beats operating profit forecast led by P&C arm - Business Insurance
Zurich Insurance beat market expectations for annual operating earnings on Thursday, fueled by a better-than-expected performance in its property and casualty business, responsible for more than half of its gains.
Europe’s second-largest insurer by market capitalization reported an operating profit of $8.86 billion, above analysts’ median estimate of $8.76 billion, according to a company-provided poll.
The P&C unit, Zurich’s core business that led the broad-based consensus beat, reported an operating profit of $5.13 billion, benefiting from higher insurance revenue and an improved combined ratio of 92.6%.
However, the company’s shares fell slightly in early trading, with analyst Roland Pfaender from Oddo Bhf saying the P&C insurance expense ratio was higher than expected.
The Swiss insurer is on track to achieve or even exceed its 2027 targets, CEO Mario Greco said in a statement. It is aiming for a core return on equity of more than 23% between 2025 and 2027 and for cumulative cash generation exceeding $19 billion in the same period.
Zurich Insurance said it would propose a dividend of 30 Swiss francs ($39) per share, in line with analysts’ expectations.
News
TD Cowen: AI jitters overshadow otherwise solid Q4 P&C earnings
The latest US property and casualty (P&C) earnings season produced another broadly better-than-expected quarter, but market sentiment moved in the opposite direction, according to a research note from TD Cowen.
Across the sector, the median fourth-quarter 2025 EPS beat versus consensus was about 5%, with stocks initially rising a median 2% on the day of the results. Over the course of earnings season, however, shares drifted roughly 2% lower as concerns about artificial intelligence (AI)-driven broker disintermediation became a key focus for investors.
Those concerns intensified in early February, when AI-powered insurance tools began to be deployed more widely. Insurify’s launch of an insurance-focused ChatGPT app, approved by OpenAI and described as a digital “super-agent,” was followed by a sharp sell-off in listed brokers, with Willis Towers Watson, Aon and Arthur J. Gallagher each falling around 8% to 11% in a single session.
AI in Insurance
Travelers Launches Industry-Leading Agentic AI Claim Assistant Developed with OpenAI
The Travelers Companies, Inc. (NYSE: TRV) today announced the launch of AI Claim Assistant, an industry-leading solution developed using OpenAI model capabilities and APIs.
The fully agentic intelligent voice service uses advanced language and speech recognition technologies to handle customer claim calls. This capability is initially being used with customers who are calling to file an auto damage claim and will expand to additional lines of business and a broader set of claim interactions over time. The launch reflects Travelers’ commitment to disciplined innovation and its strategy of combining advanced analytics, AI and human expertise to deliver superior customer outcomes through a more efficient process.
“The technology behind our AI Claim Assistant is remarkably dynamic and responsive, and early customer feedback has been overwhelmingly positive,” said Nick Seminara, Executive Vice President and Chief Claim Officer at Travelers. “This innovative service provides our customers with a claim filing experience that’s convenient, efficient and effective.”
OpenAI stood out for its rigor, reliability and enterprise-grade security. Travelers selected OpenAI’s models and Realtime API after extensive testing and benchmarking to ensure the strongest possible technology at scale.
“Travelers has built one of the most sophisticated agentic voice implementations capable of consulting, advising and supporting customers through the full complexity of a claim conversation,” said Olivier Godement, Head of Platform Product at OpenAI. “We’re thrilled to support Travelers as they expand their platform and services with AI-powered experiences like these.”
Travelers’ AI Claim Assistant provides the same natural, friendly and comprehensive service customers expect from a live agent – guiding them from consultation through claim submission. The assistant can provide relevant policy information, answer related questions and help customers make an informed decision about filing a claim. The assistant also customizes notifications to keep customers updated throughout the process, then seamlessly transitions them to a digital experience where they can upload photos, initiate appraisals, schedule repairs, reserve rental cars and manage other essential tasks.
This streamlined service accelerates claim initiation while allowing Claim professionals to focus on resolutions. Customers can speak with a live specialist at any point. Call center employees are being trained and repositioned to more strategic roles in a deliberate upskilling program that Travelers plans to continue as technology evolves.
Zywave Unveils Winter 2026 Release to Help Brokers Win More Deals Faster
Zywave, a leading provider of insurance technology solutions, today debuted its Winter 2026 Release, announcing that the industry’s first insurance-specialized AI agents are rolling out to more than 35 innovative early adopters across a wide range of insurance organizations. In addition, new platform enhancements will help insurance agencies and brokers transform how they work and achieve unprecedented levels of revenue growth and productivity.
With Zywave Agentic AI, we’re enabling our clients to strip away the noise, so the best insurance professionals can spend more time where it matters most: in front of customers. Share
Zywave helps insurance organizations drive organic growth and efficiency in a complex market. As brokers face flat growth, talent shortages, and rising risks from technology and litigation, Zywave transforms generalists into specialists with integrated data, analytics, content, and AI tools. Its AI agents unify prospecting, content creation, and client engagement, freeing producers to focus on customers instead of systems.
“With Zywave, I can now have the AI portion running quietly behind the scenes — automating outreach, qualifying responses, and keeping our pipeline active — while I focus my time on the conversations that really matter,” said Chris Whitney, Partner, Sterling Benefits. “This means I can personally engage with warm leads at the same time the system is nurturing new ones. That balance of automation and human connection has made our sales process far more efficient.”
Research
The latest edition of the LexisNexis® Insurance Demand Meter
We’re pleased to share the latest edition of the LexisNexis® Insurance Demand Meter, our quarterly analysis of U.S. consumer auto insurance shopping trends.
In this edition, we look back on Q4 and explore how:
- Activity showed no signs of slowing down, with U.S. auto insurance policy shopping rising to 6.9%, and new business growth increasing to 7.1%.
- The 66+ aged cohort continued to outpace younger shoppers when it came to growth rate, outperforming them for a 12th consecutive quarter.
- The direct channel continued to dominate shopping activity, and the exclusive agent channel posted positive growth over the previous quarter, a first in 2025.
Announcements
Leadership, Modernization, Resilience: NAIC 2026 Strategic Priorities
Reflecting an evolving insurance marketplace and risk landscape, the National Association of Insurance Commissioners' (NAIC) Members have adopted proactive and forward-looking strategic priorities for 2026.
"At the NAIC, a deep bench of 56 Members representing each U.S. state and five territories brings expert skills, backgrounds, and perspectives to today's challenges and opportunities," said NAIC President and Virginia Insurance Commissioner Scott A. White. "For more than 150 years, our state-based system has led amid change. Our 2026 strategic priorities continue that tradition, reinforced, as always, by our fundamental commitment to working together to regulate the insurance industry and protect consumers."
Enhancing Capital and Investment Frameworks: In a changing marketplace and investment environment, state insurance regulators seek to help ensure providers keep their promises to policyholders. As it moves to finalize, adopt, and guide the implementation of a new investment/capital regime that will enhance regulatory oversight, the NAIC will work to ensure the proposed reforms are well-vetted, balanced, feasible, and harmonized among the states.
Enhancing Data Architecture, Predictive Analysis, and Market Analysis: In 2026, the NAIC will work to deepen its capabilities as a data aggregator, analytics provider, and early warning monitor, supporting more proactive regulatory oversight, risk identification, peer review, and policy insight. MORE
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Aquiline to sell Relation Insurance Services to BayPine
Aquiline Capital Partners has agreed to sell US broker Relation Insurance Services to private investment firm BayPine, marking another exit in Aquiline’s insurance distribution and risk strategy. The firms announced that they have entered into a definitive agreement for the transaction.
Chicago-based Relation is one of the largest independent insurance brokerages in the United States, providing risk management and employee benefits consulting nationwide.
Founded in 2007, the company operates more than 90 offices and employs roughly 1,400 people. It serves over 230,000 clients across commercial property and casualty, employee benefits, personal lines, private client services, retirement solutions, and wealth management. Under CEO Tim Hall, Relation has grown to work with more than 1,000 insurance markets nationwide.
Since Aquiline’s initial investment in 2019, Relation has completed more than 100 acquisitions and expanded its specialty capabilities across sectors, including construction, transportation, agriculture, healthcare, manufacturing, hospitality, entertainment, and real estate. The company also pursued a targeted broker-recruitment strategy and broadened its product offering, while focusing on integration and customer experience, the firms said.
Commentary/Opinion
Carriers raise the home protection bar: What agents should know
Today, risk management and home protection matter more than ever before as climate disasters and other factors increase property damage.Home insurance agents have always served as risk advisors in some form or fashion. Today, however, risk management and home protection matter more than ever before. The reason behind this? Insurers are placing a great deal of emphasis on how well a home or property is protected.
Not only does this affect whether an individual qualifies for coverage, it also impacts how much they pay, and what type of market they can access. According to Diane Delaney, executive director Private Risk Management Association (PRMA), carriers are paying close attention to nearly every aspect of a home.
“Roof age and construction, impact-rated windows and doors, interior system upgrades and overall storm preparedness are all top of mind,” said Delaney.
Home protection: Acting on risks
“In a challenging market, strong mitigation is the homeowner’s best tool to secure better options and more stable pricing,” said Delaney.
It’s no surprise that today’s homeowners aren’t just aware of risk. Many are already taking action. In fact, PRMA's 2025 Private Client Insight Survey shows that almost half of respondents in high-risk states have already invested in upgrades like fire-resistant materials or stronger roofs.
“That tells us the risk environment and insurance consequences tied to it aren't theoretical anymore. People are spending money to stay insurable,” explained Delaney.
Predict & Prevent
Why Prevention Is the New Protection |
Rather than inferring exposure solely from historical outcomes, commercial auto underwriters can now access leading indicators of attentiveness, distraction, and behavioral discipline.
70% of vehicle collisions are caused by inattention, including distraction, cell phone usage, and fatigue. Most of this risk develops silently, unseen by fleet managers and insurers alike, only potentially becoming visible once it has resulted in a claim.
That reality exposes a growing structural weakness in commercial motor insurance. If the majority of collision risk forms upstream of loss, underwriting frameworks built primarily on historical claims data are, by definition, incomplete. In a market grappling with rising severity, social inflation, and earnings volatility, this gap is no longer theoretical. It is material.
The industry's next competitive advantage will come from seeing risk earlier and acting on it before loss occurs.
RISK BEGINS LONG BEFORE FIRST NOTICE OF LOSS
For decades, underwriting has relied on lagging indicators such as loss runs, experience modifiers, and aggregated exposure metrics. These tools remain necessary, but they describe outcomes rather than causes. In commercial auto, collisions are rarely random events. They are typically preceded by identifiable behavioral patterns interacting with vehicle dynamics and environmental conditions.
Until recently, those precursors were largely inaccessible to insurers. Risk could be priced after the fact, but not meaningfully influenced in advance. CONTINUES
Daniel Grimwood-Bird is head of insurance at Nauto
Fraud
AI, Data and the Next Phase of Insurance Fraud Defense
Repair estimates, medical records, invoices and damage photos can be created with inexpensive, at-home AI setups and open-source models, allowing bad actors to develop compelling images and documents without any identifiable watermark or digital fingerprint.
Recent cases of AI-generated voice impersonation used to authorize fraudulent wire transfers, along with the rise of synthetic identity and falsified medical documentation, underscore a broader trend: fraud is no longer constrained by effort or scale. What once required organized networks can now be executed by individuals with standard tools.
For insurers, this marks a dangerous turning point in a long-running competition with fraudsters, one in which the advantage is shifting faster than many organizations realize.MORE
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Brandon Nuttall is Chief Digital & AI Officer at Xceedance, a global provider of insurance-focused consulting, technology, operations, and data solutions
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