Zurich has released its Q3 results, saying that gross written premiums in its property and casualty segment were up 8%, compared to the same period in 2021.
The firm said in a statement that gross written premiums in property and casualty for the first nine months rose 13% compared with the previous year on a like-for-like basis, adjusting for currency movements. The 8% rise, it said, reflected the strengthening of the US dollar against major currencies.
George Quinn, group chief financial officer of Zurich, said: “The Group continues to be on track to exceed its strategic and financial targets for the 2020-2022 cycle. We saw robust premium increases across the Group, most notably in our North American Property & Casualty business, where rate increases drove double-digit top-line growth. We expect margin trends in our commercial insurance business to be positive into 2023.”
He added: “The life business continues to experience positive operating trends which are offset by the effects of the strong US dollar and weaker financial markets. Farmers is demonstrating strong, rate-driven growth. Our capital position is excellent and the strong delivery through this strategic cycle positions us well as we look forward to setting out our plans for the next three-year cycle at our upcoming Investor Day.”
Gross written premiums in property and casualty for the first nine months rose 13% compared with the previous year on a like-for-like basis, adjusting for currency movements. They rose 8% in US dollar terms, reflecting the strengthening of the U.S. dollar against major currencies.
In Europe, the Middle East, and Africa (EMEA), gross written premiums increased 10% on a like-for-like basis. Growth was driven by a strong performance across the region, most notably in the UK, Switzerland, and Germany. Premium rates increased 9% in commercial insurance and 3% in retail insurance.
North America grew 14% on a like-for-like basis compared with the previous year, with crop insurance contributing almost 40% of the growth. North America’s strong performance continues to benefit from rate increases, which have been developing better than expected since the beginning of the year and which remain above loss cost trends.
In Asia Pacific, gross written premiums increased 19% on a like-for-like basis compared with the previous year. Higher retail sales and a rebounding travel insurance business in Australia drove strong growth across the region.
In Latin America, gross written premiums increased 22% on a like-for-like basis, benefiting from strong growth in both retail and commercial insurance across the region.
The third quarter saw elevated natural catastrophe losses driven mainly by Hurricane Ian making landfall in the U.S for which, based on current estimates, the Group has recognized a net impact of $550m on a pre-tax basis. Given this, the Group’s catastrophe loss ratio for the first nine months of 2022 is estimated to be about 2 percentage points above long-term trends. The higher frequency and severity of natural catastrophe events in recent years underlines the importance of the steps the Group is taking to actively manage its exposure to these events.
