Media Release
May 8, 2025
Ad hoc announcement pursuant to Art. 53 of the Listing Rules
Zurich starts new cycle with solid growth and strong capitalization
- Property & Casualty (P&C) insurance revenue and gross written premiums rise 5% supported by rate increases of 4%, strong profitability in Commercial and improved Retail margins.
- Life continues profitable growth, with gross premiums1rising by 18%, driven by unit-linked, capital efficient savings and protection products.
- Farmers Management Services grows as Farmers Exchanges2GWP increases 5%. Strong underlying performance supports Farmers Exchanges2surplus ratio improvement to 42.6%, including California wildfires impact.
- Capital strength with Swiss Solvency Test (SST) ratio estimated at 256%3as of March 31, 2025, and demonstrating continued resilience to recent market volatilities.
Zurich Insurance Group (Zurich) performed well in the first quarter of the year and had a strong start into the new 2025-2027 financial cycle, with key focus areas like Specialties, Middle Market, Life Protection and Farmers contributing to durable top-line growth.
Our businesses started the year positively, delivering revenue growth, underpinned by a strong capital position and expanding margins. With our geographically diversified business, outstanding track record and robust balance sheet, I am confident that we will continue to deliver on our targets despite the volatile environment.
Claudia Cordioli, Group Chief Financial Officer
Select financial highlights (unaudited)
In USD billions, for the three months ended March 31, 2025
P&C GWP | Life GWP1 | Farmers Exchanges2GWP |
13.3 | 9.4 | 7.4 |
2024: 12.6 | 2024: 7.9 | 2024: 7.1 |
Change in USD: 5% | Change in USD: 18% | Change: 5% |
Continued top-line growth in all segments
Zurich's P&C business saw robust growth with a 5% rise in gross written premiums, against a strong prior year comparison, underscoring the company's sustainable and consistent performance.
In Commercial Insurance, gross written premiums grew 2% in U.S. dollars, accompanied by a 3% increase in rates compared to the prior year. Growth was achieved in Specialties and Middle Market, two key strategic focus areas for the Group as highlighted at the 2024 Investor Day. In Zurich North America, the quality of growth, supported by portfolio management actions, translated into an improved underwriting margin.
In Retail, gross written premiums rose 11% in U.S. dollars, supported by rate changes of 5% in the first three months of the year. Pricing in motor and property as well as the acquired AIG global personal travel insurance and assistance business all contributed to top-line growth while underwriting margins continued to expand.
Zurich's Life insurance business further built on its strong momentum with significant top-line growth in the first quarter of this year. Gross premiums1rose 18%, mainly driven by unit-linked as well as strong sales of a new capital efficient savings product in Spain. The protection business delivered continued growth, and the new consolidated Global Life Protection unit is expected to further augment growth through the 2025-2027 cycle.
Farmers Management Services continues to grow, with a 3% increase in underlying fee income4in the first three months, supported by growth at the Farmers Exchanges2and the brokerage entities. The Brokerages' Fee service revenues were up 34% in the first quarter.
The Farmers Exchanges2grew gross written premiums by 5% in the first three months, supported by a strong increase in new business and higher retention. The excellent surplus ratio of 42.6% per March 31, 2025, is supported by an outstanding underlying underwriting performance and remains well above the target range of 34% to 38%.
Against a backdrop of elevated macroeconomic uncertainty and episodic volatility, Zurich remains firmly focused on disciplined execution, optimized risk pricing and value-enhancing long-term capital
allocation. Zurich's broad business diversification gives it a strong foundation to deliver on the long-term plan.
Natural catastrophes
In the first three months of the year, the Group has seen natural catastrophe losses with a combined ratio impact of 3.2%, compared to 1.6% in the prior year period. The increase was mainly driven by the losses from the California wildfires in January, which were in line with the previously disclosed estimate.
Commentary
Property & Casualty
In USD millions, for the three months ended March 31, 2025, unless otherwise stated
Gross written premiums (GWP) Rate change, in %2025 | 2024 | Change6in USD | Change5,6like-for-like | 2025 | Expected trend | |
Property & Casualty | 13,315 | 12,623 | 5% | 5% | 4% | Moderating |
Europe, Middle East and Africa (EMEA) | 6,844 | 6,560 | 4% | 7% | 3% | Moderating |
North America | 5,192 | 4,800 | 8% | 1% | 6% | Moderating |
Asia Pacific | 1,032 | 916 | 13% | 6% | 3% | Stable |
Latin America | 827 | 910 | (9%) | 6% | 2% | Stable |
2025 | 2024 | Change in USD | Change5like-for-like | |
Property & Casualty | 10,779 | 10,250 | 5% | 6% |
Europe, Middle East and Africa (EMEA) | 4,647 | 4,431 | 5% | 8% |
North America | 4,810 | 4,604 | 4% | 2% |
Asia Pacific | 982 | 860 | 14% | 10% |
Latin America | 770 | 768 | 0% | 17% |
Gross written premiums (GWP) in P&C rose 5% compared with the prior-year period on a like-for-like5basis, adjusting for currency movements and prior year's completed acquisitions of the AIG global personal travel insurance and assistance business as well as the Kotak Mahindra General Insurance business, which now operates under the brand Zurich Kotak General Insurance. In U.S. dollar terms, gross written premiums increased 5%.
Growth was supported by higher premium rates of 4% in P&C, which was driven by a 5% rate change in Retail while Commercial Insurance experienced a 3% increase in rates.
In Europe, Middle East and Africa (EMEA), GWP were up 7% on a like-for-like5basis. Growth in excess of rates was driven by a strong performance from all countries across the region, both in retail and commercial insurance.
GWP in North America increased 1% on a like-for-like5basis compared with the previous year as underlying growth was offset by planned management actions to improve portfolio mix and profitability.
In Asia Pacific, GWP were 6% higher on a like-for-like5basis compared with the previous year driven mostly by higher retail sales across the region.
Latin America saw an increase of 6% in GWP on a like-for-like5basis, benefiting from strong growth in the commercial space primarily in Argentina, Brazil, and Mexico.
Life
In USD millions, for the three months ended March 31, 2025, unless otherwise stated
Gross premiums and deposits (GWP)1 Present value of new business premiums (PVNBP)2025 | 2024 | Change6in USD | Change5,6like-for- like | 2025 | 2024 | Change6in USD | Change5,6like-for- like | |
Life | 9,364 | 7,944 | 18% | 23% | 5,079 | 3,996 | 27% | 35% |
Europe, Middle East and Africa (EMEA) | 6,675 | 5,351 | 25% | 25% | 3,221 | 2,293 | 40% | 44% |
North America | 398 | 180 | 121% | 177% | 244 | 95 | 156% | 156% |
Asia Pacific | 681 | 673 | 1% | 4% | 560 | 717 | (22%) | (20%) |
Latin America | 1,680 | 1,840 | (9%) | 7% | 1,060 | 900 | 18% | 39% |
2025 | 2024 | Change6in USD | Change5,6like-for- like | |
New business CSM | 275 | 264 | 4% | 8% |
New business margin | 5.4% | 6.6% | (1.2pts) | (1.3pts) |
Short-term insurance contracts: Insurance revenue | 688 | 680 | 1% | 15% |
Investment contracts: Fee revenue | 177 | 173 | 2% | 5% |
In Life, gross premiums and deposits (GWP)1and new business premiums (PVNBP) increased 23% and 35% respectively on a like-for-like5basis, with growth driven by capital efficient savings and protection products. In
U.S. dollar terms, GWP1and new business premiums increased 18% and 27% respectively, with growth in local currencies partially offset by U.S. dollar appreciation against major currencies.
GWP1for unit-linked and investment contracts increased by 20% on a like-for-like5basis to USD 5.2 billion, with strong growth in EMEA, North America and Latin America through the joint venture with Banco Santander.
Protection GWP1of USD 2.6 billion were 5% higher year on year on a like-for-like basis5mainly driven by growth in EMEA and captive employee benefit solutions. Savings and annuities GWP1of USD 1.6 billion were 84% higher year on year on a like-for-like5basis driven by the successful launch of a capital efficient retail savings product in Spain through the joint venture with Banco Sabadell.
New business premiums saw strong growth in the first quarter. In EMEA, new business premiums increased 44% on a like-for-like5basis driven by growth in retail savings in Spain, unit-linked in Italy and protection products in Switzerland. North America saw new business premiums more than double year on year driven by unit-linked sales. In Asia Pacific, new business premiums were 20% lower than in the prior year period on year on a like-for-like5basis reflecting repricing actions in Japan and timing of group scheme renewals in Australia. In Latin America, growth was driven by unit-linked sales through the joint venture with Banco Santander.
New business written in the first three months added USD 275 million to the contractual service margin (CSM), 8% more than in the prior year period, on a like-for-like5basis. The impact of lower new business margin, which was driven by geographical business mix, was more than compensated by a strong increase in new business premiums.
Short-term insurance contracts, predominantly related to the Latin America protection business, generated USD 688 million of insurance revenue in the first quarter, with a 15% growth in local currencies largely offset by the effect of U.S. dollar appreciation.
Fee revenue generated by investment contracts, which are mainly written in EMEA, grew 5% on a like-for-like5basis benefiting from higher assets under management.
Farmers
In USD millions, for the three months ended March 31, 2025, unless otherwise stated
2025 | 2024 Change6 in USD | |
Farmers Exchanges2 | ||
Gross written premiums (GWP) | 7,400 | 7,077 5% |
Gross earned premiums (GEP) | 7,016 | 6,888 2% |
Surplus ratio7 | 42.6% | 42.4% 0.2pts |
The Farmers Exchanges,2which are owned by their policyholders, reported a 5% increase in gross written premiums in the first three months, supported by increased new business and higher retention. Gross earned premiums were up 2% over the same period.
The Farmers Exchanges2maintained a surplus ratio of 42.6% as per March 31, 2025, well above the target range and higher than December 31, 2024.
2025 | 2024 Change6 in USD | |
Farmers | ||
Farmers Management Services management fees and other related revenues4 | 981 | 948 3% |
Farmers Re insurance revenue | 291 | 475 (39%) |
Farmers Management Services underlying fee income4grew 3% compared to the prior-year period, driven by the increase in gross earned premiums at the Farmers Exchanges2and supported by the brokerage entities.
Farmers Re insurance revenue decreased 39% compared to the same period last year, due to a lower reinsurance participation rate and an earnings-neutral reclassification of certain insurance expenses, which reduced insurance revenue. Effective December 31, 2024, the participation rate in the Farmers Exchanges2All Lines Quota Share was reduced from 10.0% to 8.0%.
Capital position
As of March 31, 2025, Zurich's Swiss Solvency Test (SST) ratio remains very strong at 256%3, which compares to 253% as of December 31, 2024.
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Disclaimer
Zurich Insurance Group AG published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 04:46 UTC.
