Zurich Insurance Group reports quarterly earnings
Zurich Insurance Group reports quarterly earnings | Insurance Business New Zealand
Insurance News
Zurich Insurance Group reports quarterly earnings
All sources of P&C insurance revenue enjoy improved numbers
Insurance News
By
Terry Gangcuangco
Zurich Insurance Group has published its financial results for the first quarter of 2024, pointing to what group chief financial officer Claudia Cordioli believes is the strength of the insurer’s diversified business.
Here’s how Zurich performed in the three months ended March 31:
Metric
Q1 2024
Q1 2023
Property & casualty gross written premium
US$12.62 billion
US$11.97 billion
P&C insurance revenue
US$10.25 billion
US$9.41 billion
Life insurance revenue (short-term insurance contracts)
US$680 million
US$529 million
Life fee revenue (investment contracts)
US$173 million
US$151 million
Farmers Exchanges GWP
US$7.08 billion
US$6.65 billion
Of the P&C insurance revenue, US$4.43 billion came from Europe, Middle East, and Africa; US$4.60 billion from North America; US$860 million, Asia-Pacific; and US$768 million from Latin America. All sources posted increases from the same quarter in 2023.
Zurich reported: “In P&C, the group has seen strong growth in both the commercial and retail businesses. Insurance revenue grew 8% in commercial insurance and 10% in retail. In commercial, rates improved across all regions with an average of 5%. North America was a key contributor with overall rate increases of 8%, including commercial auto where rates increased by 14%.
“Retail had a highly successful start to the year, continuing to see strong, broad-based growth, with 5% rate increases. Growth was additionally supported by higher customer retention in all regions. Top-line growth was underpinned by a 7% rate increase in motor. The rate increases come alongside targeted underwriting, claims, and expense initiatives designed to continue improving profitability.”
Meanwhile Cordioli noted: “Ongoing growth in both our P&C and life portfolios, combined with improved margins in retail P&C, confirms the strength of our diversified business model. Farmers continues to show impressive results with Farmers Management Services reaching 6% growth in underlying fee income, well on track to meet or exceed the guidance of mid-single digit growth for the year.”
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