Zurich premium growth flat in Q1 as focus turns to profit
Zurich Insurance Group saw P&C first-quarter premiums climb to $9.33bn from $8.92bn, up 5% in US dollars but down 1% on a like-for-like basis in local currencies. The firm said it is focused on profitability and on course to meet its 2019 targets, which include cost savings of $1.5bn following a restructuring of the group’s global corporate business.
In US dollar terms, Zurich’s largest region – EMEA – recorded 9% growth in P&C premiums for the first quarter of 2018 to $5.33bn, although in local currency terms premiums fell by 2%. Zurich said growth in its commercial business in Switzerland offset reductions in Germany and the UK.
North American business saw premiums down 5% to $3.11bn, which Zurich said was a direct result of actions to improve profitability. Zurich said rate increases that began in the fourth quarter of 2017 have continued into the first quarter of 2018 and stand at about 2% higher.
Reductions in the North America account largely offset growth in the smaller Asia-Pacific and Latin America markets. Asia-Pacific P&C business recorded a 15% increase in gross premiums to $628m, up 10% in local currency, which Zurich attributed to new premium from underwriting more travel business in Australia. In Latin America, premiums were up 11%, and in local currency terms 14%, to $684m after growth in Brazilian and Mexican retail business.
“The group continues to make good progress toward our 2017 to 2019 targets and remains strongly capitalised after returning around $3.8bn to shareholders year-to-date through the increased dividend and the previously announced anti-dilution measures,” said group CFO George Quinn.
“In P&C we remain focused on profitability, while our life business continues to perform strongly and the Farmers Exchanges are seeing good momentum in key customer metrics and underlying profitability,” Mr Quinn added.
