Global insurer Zurich has seen its property and casualty (P&C) gross written premiums (GWP) soar by 8% in the first-quarter of 2022, because the service proclaims an anticipated immaterial exposure to Russia’s invasion of Ukraine.
P&C GWP rose from $11 billion in Q1 2021 to greater than $11.9 billion in Q1 2022, with development in all geographies together with 17% in each North America and Latin America.
The insurer says that development in P&C premiums was supported by increased premiums charges, pushed by the sturdy efficiency in quite a few areas, notably the UK, Germany, and Switzerland. In industrial insurance coverage, premium charges rose by 8%, and by 2% in retail insurance coverage.
Despite ongoing inflationary pressures, Zurich nonetheless expects charges to exceed lost-cost development effectively into 2023.
“The positive operating trends in the first quarter, together with the Group’s very strong balance sheet, give us confidence that we will successfully conclude the current strategic cycle later this year,” mentioned George Quinn, Group Chief Financial Officer (CFO).
Within P&C and in addition its funding portfolio, Zurich has direct exposure to Russia and Ukraine, however has mentioned as we speak that it expects the affect to be immaterial.
“The war in Ukraine and the humanitarian crisis that it has triggered are almost beyond comprehension,” mentioned Quinn. “The Group and the Zurich Foundation have provided financial and logistical support. We are especially proud of our colleagues who have opened their homes to families fleeing the war. 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. In fact, the Group has made a strong start to the year and expects to exceed all financial targets for 2022.”
In the insurer’s life operation, new enterprise annual premium equal (APE) elevated by 14% on a like-for-like foundation, with development coming from increased gross sales in capital environment friendly financial savings and safety merchandise.
The new enterprise margin fell from 31.8% in Q1 2021 to 25.7% in Q1 2022, though Zurich says that that is nonetheless enticing, and in addition displays the affect of a much less favorable product combine inside the agency’s most well-liked traces of enterprise, and financial variances in Asia Pacific and Latin America.
The COVID-19 pandemic continued to have an effect on Zurich in Q1 2022, though to a a lot lesser extent than the earlier 12 months.
In the first-quarter of 2022, Zurich’s life enterprise recorded $11 million of COVID-19 associated claims, pushed largely by Asia Pacific and Latin America. This compares with COVID-19 associated claims of $195 million in the complete 12 months 2021.
Finally, inside farmers exchanges, that are owned by their policyholders, GWP elevated by 29% in Q1 2022 to virtually $6.9 billion. Zurich attributes the expansion to a contribution of $900 million from the unit of MetLife acquired in Q2 2021, $400 million of upper volumes of business rideshare enterprise, and continued enchancment in most enterprise traces.