Zurich Insurance Group has reported 2% growth in property & casualty (P&C) gross written premiums for the first nine months of 2019, with further rate acceleration in the third quarter.
Adjusting for currency movements, acquisitions and disposals, this translated to 7% on a like-for-like basis, with growth coming from all regions.
The insurer said it expects the development to have a positive effect on its net earned premiums in the coming year.
North America in particular saw strong levels of rate increases compared to the previous year, with rates up 7% in Q3, as well as improved terms and conditions.
In Europe, Middle East and Africa (EMEA), P&C gross written premiums increased 6% on a like-for-like basis, helped by growth in Swiss and UK commercial business. Italy, Spain and a number of smaller European retail markets also contributed to the growth in the region.
North America premiums grew by 4%, while Asia Pacific was up 12% (14% on a like-for-like basis) and Latin America 8% (21% on a like-for-like basis), driven by Brazil, Chile and Argentina.
After very moderate claims related to natural catastrophes and weather in the first half of the year, Zurich reported that activity in the third quarter was more in line with historical levels.
Zurich’s Life business performed less well this year, with annual premium equivalent (APE) down 11% to $3.2 billion, or down 6% on a like-for-like basis.
New business value in the Life segment was $728 million, down 1% on $732 million last year, but up 5% on a like-for-like basis.
In EMEA and Latin America, APE decreased by 2% and 20%, respectively, on a like-for-like basis compared to the same period in 2018, when both regions benefited from large one-off contracts.
APE increased by 86% in North America, with growth driven by higher volumes of protection business, and by 5% in Asia Pacific, with continued growth of the retail protection business across the region.
“We are pleased with the development of the Group year to date with continued progress against both our strategic and financial plans, including additional distribution agreements. We expect to exceed all of the targets that we set in 2016,” said Group Chief Financial Officer George Quinn.
“In P&C pricing continues to increase, supporting growth and continued improvement in the portfolio, while in the Life business we are well positioned to face the challenge of low interest rates,” Quinn explained. “The Farmers Exchanges2 continue to deliver steady growth and execution against their strategy.”
He concluded: “The strong achievements of the past three years position us well for the next stage of our development, on which we will provide more information at our upcoming investor day.”
