Zurich Insurance Reports Strong Growth But Faces Natural Losses
10 months ago

Zurich Insurance's top line strengthened across all three businesses in the first nine months of 2024 while its combined ratio edged up on natural catastrophe losses, as detailed in a trading update on Thursday. Gross written premiums across the Swiss group's property and casualty division jumped to $36.13 billion in the nine months ended Sept.

30 from $34.59 billion a year ago. The 4% like-for-like increase was attributed to increasing rates in commercial insurance and retail. Consequently, property and casualty insurance revenue climbed to $33.26 billion from $31.42 billion. As the P&C business remained robust, the life and farmers businesses also maintained their upside momentum, said the company. Like-for-like insurance revenue from short-term contracts and fee revenue from investment contracts in the life business expanded by 12% and 10% to $2.1 billion and $517 million, respectively.

New business premiums gained 6% to $12.61 billion on the back of unit-linked and particularly strong protection sales in Japan, the UK, and Latin America. Across the farmers management services division, underlying fee income grew 6% on a reported basis to $2.9 billion thanks to growth at the farmers exchanges and the brokerage entities Zurich Insurance acquired from the exchanges in December 2023. At the same time, the multi-line insurer's combined ratio increased to 3.4% from 3.1% on natural catastrophe losses.

After clocking an estimated pre-tax loss for Hurricane Helene of $160 million in the third quarter, Zurich Insurance pegs preliminary pre-tax losses attributable to Hurricane Milton under $200 million for the final three months of 2024. "We are on track to exceed all current targets and look forward to presenting the new plan for the next 3 years at our Investor Day on November 21," said Group Chief Financial Officer Claudia Cordioli. The stock lost marginally in late morning trade..

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