Zurich Insurance Group breaks down first-quarter numbers

Zurich Insurance Group breaks down first-quarter numbers | Insurance Business Canada

Insurance News

Zurich Insurance Group breaks down first-quarter numbers

Results the first using new accounting standard

Insurance News

By
Terry Gangcuangco

Results season continues with the turn of Zurich Insurance Group to give the lowdown on its quarterly performance.

According to Zurich’s earnings report for the three months ended March 31, here are the numbers, which are the insurer’s first financial results under IFRS (International Financial Reporting Standards) 17:

Metric

Q1 2023

Q1 2022

Property & casualty insurance revenue

US$9.41 billion

US$8.77 billion

P&C gross written premium

US$11.97 billion

US$11.31 billion

Life present value of new business premium

US$4.16 billion

US$3.56 billion

Farmers Exchanges GWP

US$6.65 billion

US$6.88 billion

Of the P&C GWP, US$5.99 billion came from Europe, Middle East, and Africa; US$4.86 billion, North America; US$885 million, Asia-Pacific; and US$780 million, Latin America. All regions posted growth, as well as in terms of insurance revenue.

Under the life business, meanwhile, only North America suffered a decline (41%) in present value of new business premiums.

“The group has made a strong start to the new financial cycle,” Zurich’s group chief financial officer George Quinn said. “We saw robust growth in property & casualty, with a double-digit increase in premiums in North America, mainly driven by rate increases.

“Underlying commercial insurance margins have continued to improve, but we are being cautious about recognizing the full benefit as we gain familiarity with the new accounting standard. Retail markets are seeing higher prices on renewal, and margins will improve over the course of the year as earned rates start to exceed loss cost trends.”

The CFO added that the life business saw strong growth in new business volume while Farmers Exchanges posted underlying growth.

“We have also announced two further back book transactions, which mark an important step in our commitment to reduce volatility and improve the quality of returns,” Quinn went on to say. “These transactions also create the potential to deliver returns at even higher levels in the future.”

Meanwhile, as of March 31, Zurich’s Swiss Solvency Test ratio is estimated at 258%, which is well in excess of the group’s ≥160% target level.

What do you think of Zurich’s financial results? Share your thoughts in the comments below.