Zurich Insurance Group saw increased commercial lines insurance sales and a modest impact from COVID-19 related claims for the first nine months of the year, according to its third quarter report.
Growth was supported by higher premium rates, which continued to improve in the third quarter. The global company said all regions saw increases in premium rates driven by commercial insurance. Notably, commercial insurance premium rates increased by 18% in North America and 15% in Europe, the Middle East and Africa (EMEA) in the third quarter.
“Over the third quarter, the Group continued to successfully manage the unprecedented challenges of COVID-19, a global recession and a record number of hurricanes making landfall in the United States,” said Group Chief Financial Officer George Quinn.
In EMEA, Zurich’s gross written premiums increased 7% compared with last year. Growth was driven by commercial insurance, most notably in Germany, Switzerland and the UK. Retail insurance was up modestly year-on-year following improved third-quarter growth.
North America grew 4% compared with the previous year, with the growth driven mainly by rate increases.
In Asia Pacific, gross written premiums decreased 11%, with growth in Japan offset by a reduction in travel insurance across the region. Gross written premiums declined 7% in Latin America, with measures to prevent the spread of COVID-19 and reduced economic activity impacting sales in the mass consumer business.
Property & Casualty claims related to COVID-19 remained unchanged at approximately USD 450 million as at September 30, 2020. Quinn said the company does not expect COVID-19 claims to have a material impact going forward.
The third quarter brought an active Atlantic storm season with hurricanes Hanna, Isaias, Laura and Sally making landfall in the United States. Together with other weather events in both North America and EMEA, Zurich said losses from natural catastrophes are expected to be around 2 percentage points higher than normal over the second half of the year.
The Farmers Exchanges, which are owned by their policyholders, reported a 3% reduction in gross written premiums in the first nine months. This was driven primarily by USD 311 million of COVID-19 related premium refunds and the downward revision of premiums relating to lower volumes of commercial rideshare business due to the COVID-19 outbreak.
The Farmers Exchanges surplus decreased over the first nine months of the year to USD 5.8 billion, with the surplus ratio declining to 40.5%. The insurers said this reflects the reduction of the all lines quota share reinsurance treaty from 29% to 26% effective December 31, 2019.
In the first nine months, new life insurance sales decreased 8%, which the insurer attributed to a combination of government-imposed restrictions related to the COVID-19 outbreak and expected reductions in several markets from exceptional levels in 2019.
Topics Trends Claims Pricing Trends COVID-19
Was this article valuable?
Here are more articles you may enjoy.
The Battle Over J&J’s Bankruptcy Plan to End Talc Lawsuits 
Homebuilders Cut on ‘Sluggish’ Housing Market, Florida Woes 
US P/C Underwriting Results: Two Years in a Row Over $20 Billion in the Red 
What Happened to Reinsurance ‘Class of 2023’? Hard Market Defies Age-Old Patterns. 
