Zurich Insurance Group Sees Growth Amid Catastrophic Losses

LONDON (Reuters) – Zurich Insurance Group (OTC:ZFSVF) announced on Thursday an increase in its 9-month premium revenue, with anticipated losses from Hurricanes Helene and Milton under $360 million.

Europe's fifth-largest insurer reported an estimated pre-tax loss of $160 million due to Hurricane Helene, with further preliminary losses expected for Hurricane Milton under $200 million. Analysts predict insured losses could reach up to $55 billion from these storms.

Gross written premiums in Zurich's property and casualty division rose 4% to $36.13 billion, up from $34.59 billion in the previous year, driven by a 5% increase in rates for both commercial and retail insurance segments. Rising insurance premiums in recent years have been prompted by inflation, COVID-19 pandemic losses, wars, and natural disasters.

Contrasting this trend, global commercial insurance rates saw a 1% decline in the third quarter, marking the first quarterly drop in seven years according to broker Marsh.

Additionally, Zurich's life insurance new business premiums rose by 6%, adjusted for currency fluctuations, acquisitions, and disposals.

The insurer is set to announce updated three-year financial targets on November 21, ahead of schedule, and reiterated its confidence in exceeding current targets. Chief Financial Officer Claudia Cordioli stated, "Our nine-month results confirm the continued strong momentum across all of Zurich's businesses."

Zurich's Swiss Solvency Test ratio, a critical indicator of capital strength, was reported at 224%, surpassing the forecast of 220% based on company data.