Feb 20 (Reuters) - Zurich Insurance reported

slightly higher-than-expected annual operating profit on

Thursday, as insurers ride out the impact of climate disasters

and wars.

Europe's fifth-largest insurer said its operating profit was

$7.8 billion for the year ended December 31, just ahead of

analysts' estimate of $7.7 billion in a company-provided

consensus.

It said that the fires in California, which destroyed

thousands of homes and killed dozens of people, heightening

concerns for insurers, are estimated to have a pre-tax impact of

$200 million including its farmers business.

As anticipated in a three-year plan in November, the company

expects compound annual growth in core earnings per share to

exceed 9% between 2025 and 2027.

Zurich Insurance proposed an increased dividend of 28 Swiss

francs ($31.02) per share.

It posted rising combined ratio in its core property and

casualty business (P&C), which came in line with analysts'

expectations of 94.2%. A ratio below 100 signifies the insurer

earned more from premiums than it paid out in claims.

($1 = 0.9025 Swiss francs)