Zurich Insurance Group (ZURN) Q3 2024 earnings summary

Executive summary

• Strong volume and top-line growth across all business lines, with P&C gross written premiums (GWP) up 4% year-over-year, supported by rate increases.

• Retail and SME P&C GWP grew 10% with improved margins despite significant weather events, especially in EMEA.

• Life segment delivered 6% growth in new business premiums at stable margins, driven by unit-linked and protection sales, with notable growth in Japan, UK, and Latin America.

• Farmers Management Services achieved 6% growth in management fee revenues, with Farmers Exchanges GWP up 4% and gross earned premium up 5% over nine months.

• Very strong capital position with Swiss Solvency Test (SST) ratio at 224% as of September 30, 2024.

Financial highlights

• P&C gross written premiums rose 4% year-over-year on a like-for-like basis; insurance revenue up 6%.

• Life new business premiums increased 6% like-for-like, with new business contractual service margin up 6%.

• Farmers Exchanges GWP up 4%, gross earned premiums up 5%, and surplus ratio improved by 4.1 percentage points to 37.7%.

• Farmers Management Services management fees and other revenues up 6% year-over-year.

• Farmers Re insurance revenue up 26% year-over-year, driven by higher earned premiums and increased quota share participation.

Outlook and guidance

• On track to exceed all current targets, with a new three-year plan to be presented at Investor Day on November 21, 2024.

• Expect further retail motor rate increases in Germany and Switzerland during the January renewal period.

• Commercial insurance continues to see positive rate momentum, especially in auto and liability lines.

• Property rate increases have moderated but may pick up post-hurricane season, depending on reinsurance market dynamics.

• Retail performance is improving, and commercial insurance margins remain favorable.