Commercial rate hikes drive Q1 growth for Zurich
Zurich posted 9% growth in P&C gross written premiums on an adjusted basis to €11bn for Q1 2021, up 14% in US dollars, boosted by its commercial insurance account and rate increases averaging 7% higher.
Group CFO George Quinn said Zurich has taken “full advantage of the hard pricing conditions” in commercial insurance to improve the underwriting performance of its P&C business. Mr Quinn said the group’s first-quarter results “allow us to look forward to the remainder of the year with great confidence”.
Zurich said “elevated” nat cat and weather losses during the first quarter, mainly from winter storm Uri in the US, would be likely to add one percentage point above usual levels of nat cat losses in the combined ratio for full-year 2021.
Higher premium rates were reported across all Zurich’s operating regions in the first quarter, with Europe, the Middle East and Africa pushing through rate increases of 11% in commercial insurance, following a 5% hike in Q1 2020. Europe’s gross premiums were up 5% on an adjusted basis, or 16% in US dollar terms, to €6.2bn following strong growth in commercial business in Germany, Switzerland and the UK.
Zurich’s North America account reported rate increases of 14% in Q1 2021 to mark the fifth consecutive quarter of double-digit rate hikes in the region. Gross premiums increased 16% for the quarter to €3.9bn, with crop insurance accounting for more than half the growth, Zurich said.
