Zurich has released its financial results for the first nine months of 2024, reporting a “robust performance” as gross written premiums (GWP) for its P&C segment rose 4% and insurance revenue was up 6% with rate increases of 5% year-on-year.
The Group also highlighted that in the first nine months of the year it has seen natural catastrophe losses with a combined ratio impact of 3.4%, compared to 3.1% in the prior year period.
An estimated pre-tax loss of $160 million is also included in the third quarter due to Hurricane Helene. Initial estimates for the fourth quarter suggest a pre-tax loss of less than $200 million attributable to Hurricane Milton.
For the first 9 months of 2024, the insurer’s P&C segment GWP increased to $36,128 million, which compares to the $34,592 million reported in the same period last year.
Growth was supported by higher premium rates in P&C in line with the first half of the year which was driven by a 5% rate change in retail while commercial insurance experienced a 4% increase in rates.
In EMEA, GWP was up 8% on a like-for-like basis compared to the prior year. In the case of Asia Pacific, GWP was 9% higher and Latin America saw a 14% increase.
GWP in North America remained stable year-over-year, with a 4% rise in Q3. Lower crop volumes due to unfavourable commodity prices offset underlying growth. Excluding crop, GWP rose 3% in the first nine months, driven by all other business lines.
P&C insurance revenue was up to $33,256 million in the first nine months of 2024 compared to the $31,423 million reported in the same period the year prior. In EMEA insurance revenue was up 7%, in North America 3% and in Latin America 9%, while Asia Pacific saw a 11% increase.
In Commercial Insurance, GWP was up 2% in US dollars, despite less favourable commodity prices affecting the US crop insurance business. Excluding crop insurance, GWP grew 5%, while rates increased 4% compared to the prior year.
Gross written premiums for Retail increased 10% in US dollars, which was supported by rate changes of 5% in the first nine months of the year.
In Life, the Group continued to strongly grow revenues and new business, with new business premiums increased 6% on a like-for-like basis and 4% in U.S. dollar terms, to $12,610 million from the $12,166 million reported in the same period last year.
This increase was driven by strong sales in the unit-linked segment, primarily through Zurich’s bank distribution partners and higher sales of protection products, most notably in Japan and the UK.
Farmers Management Services has experienced ongoing growth, achieving a 6% rise in underlying fee income during the first nine months. This growth was driven by the Farmers Exchanges and the brokerage entities Zurich acquired from the Farmers Exchanges in December 2023.
The Farmers Exchanges saw a 4% rise in GWP in the first nine months, to $21,530 million, supported by continued positive rate adjustments and higher new business growth.
The combined ratio for the period was 93.5%. The surplus ratio was 37.7% at September 30, 2024, a 4.1 percentage points increase since the start of the year, mainly due to profitable underwriting results, which is a testament to the impact of the business transformation at Farmers over the last year.
Farmers Management Services underlying fee income grew 6%, while Farmers Re insurance revenue was up 26% compared to the prior-year period, driven by higher gross earned premiums at the Farmers Exchanges and an increase in participation rate in the Farmers Exchanges.
Claudia Cordioli, Group Chief Financial Officer, stated: “Our nine-month results confirm the continued strong momentum across all of Zurich’s businesses.
“In P&C, margins in Commercial Insurance continue to be favourable, and performance in Retail is improving. 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.”
