Zurich Insurance Group has reported an increase in revenue and capital strength for the first quarter of 2025.
The company announced that its property and casualty (P&C) insurance division recorded a 5% rise in gross written premiums, supported by a 4% increase in rates and improvements in both commercial and retail margins.
The commercial insurance segment reported a 2% increase in gross written premiums in US dollars, with rates up 3% compared to the same period last year.
Growth was seen in specialties and middle market, which the company previously identified as priority areas at its 2024 Investor Day. Zurich North America contributed to the improvement with portfolio management actions that resulted in enhanced underwriting margins.
Group chief financial officer Claudia Cordioli (pictured above) noted that the company had started the year with revenue growth supported by a strong capital position and expanding margins.
The latest quarterly figures follow Zurich’s record financial results for the full year 2024. The company reported a business operating profit of US$7.8 billion, a 5% rise from the previous year, and a 34% increase in net income attributable to shareholders to US$5.8 billion.
The core return on equity reached 24.6%, while adjusted earnings per share rose 10% to US$42.2. The company’s Swiss Solvency Test ratio strengthened to 252%. Zurich proposed an 8% dividend increase to CHF28 per share, continuing a trend of shareholder returns that have exceeded CHF 28 billion over the past eight years.
The first quarter 2025 SST ratio of 256% represents a further strengthening from the 2024 position.
The Retail segment also reported a rise in gross written premiums of 11% in US dollars. Rate changes of 5% in the first quarter, coupled with pricing adjustments in motor and property lines, along with the integration of AIG’s global personal travel insurance and assistance business, supported the increase. Underwriting margins continued to improve.
Zurich’s Life insurance business delivered an 18% increase in gross premiums, driven by demand for unit-linked products and strong sales of a capital-efficient savings product in Spain. The protection business maintained growth, and the newly consolidated global life protection unit is expected to continue this trend through the 2025 to 2027 cycle.
Farmers management services posted a 3% increase in underlying fee income, which was supported by growth at Farmers Exchanges and related brokerage entities. Brokerage fee service revenues rose 34% in the first quarter.
The Farmers exchanges business also grew gross written premiums by 5%, supported by a rise in new business and higher customer retention. Its surplus ratio reached 42.6% as of 31 March 2025, well above the target range of 34% to 38%.
Zurich’s Swiss Solvency Test ratio stood at an estimated 256% at the end of the quarter, reflecting resilience amid market volatility. The group experienced natural catastrophe losses impacting the combined ratio by 3.2%, compared to 1.6% in the same period last year. Losses were largely due to January’s California wildfires and aligned with the company’s prior estimates.
“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,” Cordioli said.
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