Zurich confident to exceed all 2022 targets; claims ‘immaterial’ exposure to war
Swiss insurer Zurich Insurance Group made a strong start to the year with a 8% jump in its property/casualty premiums, thanks to growth in commercial insurance and further improvement in pricing driving an expansion in margins. The carrier claimed “immaterial” direct exposure to Russia and Ukraine through its P&C operations and investment portfolio.
Gross written premiums P&C in the first quarter of 2022 rose 8%, with growth of 12% on a like-for-like basis, to $12 billion compared with the previous year. It was driven by growth in all geographies, especially in North America where the premiums grew by 17%, boosted by the group’s crop insurance franchise and rate increases of 9%.
Life new business annual premium equivalent (APE) increased 14% on a like-for-like basis, and the Farmers Exchanges reported an increase of 29%.
Zurich’s group chief financial officer George Quinn (pictured) said he is “confident” to exceed all financial targets for 2022 given the positive operating trends in the first quarter and its “very strong” balance sheet.
“We saw a rise in premiums across the Group, most notably in our North American Property & Casualty business, where crop insurance and rate increases drove double-digit top-line growth.
“Despite inflationary pressures, we expect rates to exceed loss-cost trend well into 2023,” he said.
Commenting on the group’s exposure to the war in Ukraine, Quinn said: “The war in Ukraine and the humanitarian crisis that it has triggered are almost beyond comprehension. Although the effects of the war are expected to lead to significant losses for the insurance industry, we do not expect insurance claims to be significant for the Group.”
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