Zurich, November 7, 2024
Zurich Reports Strong Top-Line Growth Across All Segments, Driven by Resilient Market Performance
Zurich Insurance Group has reported robust financial results for the first nine months of 2024, reflecting significant growth across its Property & Casualty (P&C), Life, and Farmers segments. This strong performance is highlighted by a 6% increase in P&C insurance revenue and a 4% rise in gross written premiums, underpinned by a rate increase of 5%. The Life segment has also demonstrated impressive growth, particularly in unit-linked and protection products, with strong sales momentum in Japan, the UK, and Latin America. Farmers Management Services (FMS) reported a 6% rise in underlying fee income, buoyed by the expansion of its brokerage business.
Group Chief Financial Officer Claudia Cordioli emphasized the continued strength across Zurich’s business units, noting, “Our nine-month results confirm the sustained momentum across Zurich’s operations. The favorable commercial insurance margins and improving retail performance keep us on track to exceed our current targets.”
Property & Casualty (P&C) Insurance: Growth Sustained Through Strategic Rate Adjustments
Zurich’s P&C division, a core segment for the group, recorded a 6% year-over-year increase in insurance revenue, while gross written premiums (GWP) rose by 4%. This growth was particularly pronounced in EMEA, where premiums grew 8% on a like-for-like basis, reflecting strong retail and commercial insurance sales. In North America, the P&C business saw a stable performance, overcoming challenges in the crop insurance segment.
Across Asia Pacific and Latin America, Zurich achieved notable gains. The Asia Pacific region reported a 9% increase in GWP, with travel and retail insurance driving sales, while Latin America posted a 14% increase, supported by commercial and retail insurance, especially in Brazil and Mexico.
Life Insurance: A Surge in Unit-Linked and Protection Sales
The Life segment recorded a 4% rise in new business premiums in USD terms, and a 6% increase on a like-for-like basis, with unit-linked and protection products up by 23% and 11%, respectively. Zurich’s bank distribution partners and high protection sales in Japan, the UK, and Latin America have been pivotal to this growth. Notably, new business premiums in Latin America surged by 23%, driven by favorable economic conditions and lower discount rates.
Farmers Segment: Steady Growth Through Increased Fee Income and Brokerage Expansion
Farmers Management Services posted a 6% growth in underlying fee income, attributed to strong premium growth within the Farmers Exchanges. The Farmers Exchanges, which saw a 4% increase in GWP, benefitted from positive rate adjustments, pushing the surplus ratio up by 4.1 percentage points to 37.7%. Additionally, Farmers Re insurance revenue saw an impressive 26% rise, supported by the elevated participation rate in the Farmers Exchanges’ All Lines Quota Share arrangement.
Capital Strength and Financial Stability
Zurich’s capital position remains solid, with a Swiss Solvency Test (SST) ratio estimated at 224% as of September 30, 2024. This strong solvency ratio, well above Zurich’s target level of 160%, reflects prudent capital management despite slight decreases due to market fluctuations.
Outlook and Strategic Initiatives
Zurich’s strong performance this year places it in a favorable position ahead of its Investor Day on November 21, where the Group plans to reveal its roadmap for the next three years. Zurich’s leadership continues to prioritize sustainable growth and innovation across all markets.
Zurich Insurance Group’s consistent revenue growth and strategic market positioning underscore its resilience and adaptability in a challenging insurance landscape. With robust performances across all segments, Zurich is well-positioned to continue this momentum as it looks toward future strategic goals and sustainable growth initiatives.
Venkat