Zurich Insurance sees impact from Hurricanes Helene, Milton to touch below $360 million
LONDON (Reuters) – Zurich Insurance Group posted on Thursday a rise in its 9-month premium revenue and said that its exposure to Hurricanes Helene and Milton, which recently wreaked havoc in the United States, would be under $360 million.
Zurich, Europe’s fifth-largest insurer, said its third-quarter results included an estimated pre-tax loss for Hurricane Helene of $160 million. It expects preliminary fourth-quarter pre-tax losses due to Hurricane Milton to touch below $200 million.
Analysts expect up to $55 billion in insured losses from the two major calamities.
Gross written premiums at Zurich’s property and casualty business rose 4% in the first nine months of 2024 to $36.13 billion, up from $34.59 billion a year earlier, due to increasing rates in its commercial insurance and retail segments. Rates rose 5%.
Insurance premiums have been rising in the past few years in response to inflation and to losses from the COVID-19 pandemic, wars and natural catastrophes.
However, global commercial insurance rates fell 1% in the third quarter, the first quarterly decline in seven years, according to broker Marsh.
Zurich’s life insurance new business premium rose 6% on a like-for-like basis that adjusts for currency movements, acquisitions and disposals.
Zurich will present fresh three-year financial targets on Nov. 21, one year ahead of schedule, after the insurer reiterated on Thursday that it was on track to exceed all its current targets.
“Our nine-month results confirm the continued strong momentum across all of Zurich’s businesses,” Chief Financial Officer Claudia Cordioli said in a trading statement.
Zurich’s Swiss Solvency Test ratio, a key measure of its capital strength, came in at 224%, against a forecast of 220%, according to a company-compiled consensus poll.
(Reporting by Carolyn Cohn and Bartosz Dabrowski; Editing by Rachel More and Sherry Jacob-Phillips)
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