Zurich P&C revenue hits $10.25bn in Q1 as GWP swell 9%

Zurich Insurance Group has reported that Q1 2024 P&C insurance revenue was up 12% on a like-for-like basis to $10.25 billion, driven by strong commercial and retail growth.

In commercial, rates improved across all regions with an average of 5%. Zurich noted that its North American line was a key contributor, with overall rate increases of 8%, including commercial auto where rates increased by 14%. Retail also had a highly successful start to the year, continuing to see strong, broad-based growth, with 5% rate increases.

“The rate increases come alongside targeted underwriting, claims and expense initiatives designed to continue improving profitability,” Zurich added.

Meanwhile, opening quarter 2024 gross written premiums (GWP) in the P&C segment were $12.62 billion, up 9% from last year’s figure of $11.97 billion.

In Europe, the Middle East and Africa (EMEA), GWP increased 7% on a like-for-like basis, reportedly driven by a strong performance from Germany, Switzerland, the UK, Spain, and Italy in retail and commercial insurance.

At the same time, GWP in North America declined by 1% compared with the previous year. Zurich explained that growth across all lines of business was supported by an 8% rate change, mainly driven by property and auto lines.

However, this was offset by a 15% reduction in crop volumes, which, after years of commodity price appreciation, experienced less favourable developments more recently.

In Asia Pacific, GWP increased 12% on a like-for-like basis compared with the previous year, driven by the retail business, partly due to higher motor business sales and to a lesser extent by a favourable commercial insurance performance across the region.

Finally, Latin America saw an increase of 80% in GWP on a like-for-like basis. Excluding Argentina, which was impacted by inflation and currency depreciation, GWP went up by 11% on a like-for-like basis, benefiting from retail motor growth in Brazil and Mexico, higher property business sales in Mexico, as well as a strong commercial insurance performance from Brazil.

Zurich also disclosed natural catastrophe losses with a combined ratio impact of 1.6%, compared to 1.8% in the prior year period.

As for Zurich’s Life segment, the firm said it continues to grow in protection and unit-linked, driving strong revenue growth in short-term insurance and fee business and a higher new business margin.

Claudia Cordioli, Group Chief Financial Officer, commented, “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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