Asia Pacific GWP bucked the trend, declining 1% to $US789 million ($1.01 billion) on a like-for-like currency basis compared with the previous year.
Lower sales in travel insurance due to COVID-19 restrictions were only partially offset by growth in Japan and Malaysia. Zurich’s operating profit took a hit last year, in part driven by losses incurred at its Australia-based travel business Cover-More.
In Life, lower sales in Australia and Japan led to a fall in Asia Pacific annual premium equivalent sales of 9% in the first quarter. The decline in Australia was due to repricing actions to improve margins, Zurich says.
Group CFO George Quinn says the insurer took “full advantage of the hard pricing conditions in the commercial business to deliver strong growth and further improvements in the underlying underwriting performance of the P&C business.”
Overall P&C GWP growth was supported by higher premium rates, which were above the level in the prior-year period in all regions and driven by commercial insurance. North American crop insurance business contributed about 3 percentage points to growth as a result of higher prices for agricultural commodities.
“The group has made a strong start to the year and remained on track with its strategy and financial plans in the first quarter,” Mr Quinn said. “These trends, together with our very strong balance sheet, allow us to look forward to the remainder of the year with great confidence.”
Natural catastrophe and weather-related claims are expected to add around one percentage point to the usual level of natural catastrophe losses in the combined ratio for the full year, driven by winter storm Uri in the US which hit Texas.
Zurich added around 300,000 retail customers in the quarter and Mr Quinn says in Life, mortality rates have been improving steadily as lockdown and the vaccine rollouts reduce the spread of CVOVID, especially in US and UK.
Zurich maintained its estimate of $US450million ($578.16 million) COVID-related fallout on the P&C business.
Via Insurance News
