Zurich’s First-Quarter P/C Revenue Rises on Higher Premiums

Zurich Insurance Group AG said revenue from property and casualty insurance rose 12% in the first quarter on a like-for-like basis, helped by higher premiums.

Gross written premiums in the business rose 9% from a year earlier, as Asia and Latin America made up for a small decline in North America, the insurer said in a statement Thursday. Zurich’s life insurance new business premiums declined.

Zurich, which closed out last year with its highest return on equity on record, confirmed it will start a buyback program announced in February in the next few weeks. German rival Allianz SE on Wednesday reported a 6.8% increase in operating profit amid inflows at its bond manager Pacific Investment Management Co.

Other key figures:

• Swiss solvency test ratio 232%
• P&C insurance revenue $10.3 billion
• Farmers gross written premiums $7.08 billion
• Farmers management services fees up 6%

Earlier this year, the Swiss firm’s plan to offload its $20-billion Zurich Life Legacy back book in Germany to Viridium Holding fell through after the insurance consolidator pulled out of the deal as a result of issues relating to Viridium’s ownership structure.

Zurich had said in January it was committed to finding a solution for the portfolio, which administers around 700,000 life insurance policies in Germany, and would continue to explore options.