Zurich plans share buyback as premiums rise

(Reuters) — Zurich Insurance Group said Thursday it plans a share buyback after property/casualty premiums rose 9% in the first nine months to $34.6 billion due to strong growth in commercial and retail insurance.

Zurich completed a 1.8 billion Swiss franc ($2 billion) buyback program in June.

Insurers have held onto profits in recent years in the face of the COVID-19 pandemic, war in Ukraine and natural catastrophes by raising premium rates and cutting back on riskier business.

Europe’s fifth-largest insurer is confident it will be able to finish the year strongly and achieve its financial targets for 2023–2025, Chief Financial Officer George Quinn said in a statement.

KBW analysts estimated that Zurich could offer a share buyback of $1 billion to 1.5 billion.

Mr. Quinn said on a media call that Zurich did not suffer major losses from floods in Europe this year, adding that the insurer has been “significantly reducing catastrophe exposure” across its business.

Vontobel analysts said Zurich’s results should be “taken positively,” reiterating their “hold” rating on the stock.