Zurich Insurance on track as premiums grow in first quarter

(Sharecast News) - Zurich Insurance reported higher first-quarter premiums on Wednesday, led by growth in its property and casualty business, and said it remained on track to meet or exceed its 2027 targets despite geopolitical uncertainty.

The Swiss insurer said gross written premiums in property and casualty, its largest division, rose 18% year on year to $15.56bn.

On a like-for-like basis, premiums increased 8%, supported by growth across the business, currency movements, the timing of large contracts and higher demand linked to investment in data centres.

Reuters said Zurich benefited from the rapid expansion of data centres, as companies continue to invest heavily in artificial intelligence infrastructure.

Life gross written premiums rose 5% to $9.85bn, although they fell 5% on a like-for-like basis.

Zurich said the decline reflected a reduction in low-margin savings business.

At Farmers Exchanges, the policyholder-owned interinsurance exchanges in California with which Zurich has contracts, gross written premiums rose 4% to $7.72bn.

"Thanks to our strong capital position, we are well positioned to navigate the current uncertain environment and stay on track to meet or exceed our 2027 targets," said chief financial officer Claudia Cordioli.

Zurich was targeting a core return on equity of more than 23% between 2025 and 2027, and cumulative cash generation of more than $19bn over the same period.

The company said it expected no material impact on its performance from the Middle East conflict, given its limited exposure.

The insurer also said it was still reviewing options for its German life insurance portfolio, including a possible sale.

"This is a book that we've been looking to sell over the last few years because of the interest rate tail risk that it poses," Cordioli told analysts.

She added that Zurich had been in talks with potential buyers but had not ruled out keeping the business, as balance-sheet risks had declined.

At 1137 CEST (1037 BST), shares in Zurich Insurance Group were up 3.11% in Zurich at CHF 557.80.

Reporting by Josh White for Sharecast.com.