Zurich/2026/Q1 earnings press release: Difference between revisions

 

* P&C revenues accelerated due to AI driving data center construction demand and broadening Middle Market growth ^{p. 1}.

* Life Protection grew ahead of 2027 targets ^{p. 1}.

* Estimated Swiss Solvency Test (SST) ratio was '''265%''' as of March 31, 2026 (footnote: Estimated Swiss Solvency Test (SST) ratio as of March 31, 2026, calculated based on the Group’s internal model approved by the Swiss Financial Market Supervisory Authority FINMA. The SST ratio as of December 31 has to be filed with FINMA by end of April in the subsequent year and is subject to review by FINMA.), indicating an excellent capital position ^{p. 1}.

* All businesses started the year strongly, with growth accelerating across targeted business lines and customer segments, including Specialty, Middle Market, and Life Protection ^{p. 1}.

* The company is well-positioned to navigate the uncertain environment and meet or exceed 2027 targets ^{p. 1}.

 

=== Select financial highlights (unaudited) ===

** Commercial rate levels are in line with H2 2025, with attractive margins in many Specialty lines and Middle Market ^{p. 2}.

** Property and E&S rates remain softer ^{p. 2}.

** Retail rate increases remained stable YoY, contributing to margin expansion ^{p. 2}.

** Motor was the leading growth contributor, driven by higher new business volumes and average rate increases of '''8%''' ^{p. 2}.

** Life GWP '''+5%''' in U.S. dollars, primarily driven by the Protection business ^{p. 2}.

** Protection premiums '''+9%''' LFL, reflecting strong performances across EMEA, Latin America, and Asia Pacific ^{p. 2}.

* Farmers Management Services underlying fee income '''+4%''' in Q1, supported by growth at Farmers Exchanges and brokerage entities ^{p. 2}.

* Farmers Exchanges GWP '''+4%''', supported by an increase in new business ^{p. 2}.

=== Middle East exposure and broader geopolitical environment ===

 

* Zurich continues to focus on supporting customers amidst heightened geopolitical and macroeconomic uncertainty ^{p. 2}.

 

* All figures are in USD millions for the three months ended March 31, 2026, unless otherwise stated ^{p. 3}.

 

{| class="wikitable" style="width:100%"

! style="text-align:left" | USD m

! style="text-align:right; width:9em" | Rate change, in% Expected trend

|-

| style="text-align:right" | Stable

|}

 

Footnote(s):

 

 

{| class="wikitable" style="width:100%"

! style="text-align:left" | USD m

! style="text-align:right; width:6em" | Change LFL

! style="text-align:right; width:6em" | Change USD

| style="text-align:right" | 23%

|}

 

* Change LFL: Like-for-like comparisons represent the change in local currencies and after adjusting for acquisitions, disposals, methodological changes, any reclassifications and for the impact of large captive arrangements which were booked with one quarter lag in 2025.

 

* P&C GWP '''+8%''' LFL ('''+17%''' reported) in Q1 ^{p. 3}.

** Retail rates '''+5%''' ^{p. 3}.

** Commercial rates '''-1%''' ^{p. 3}.

** Commercial growth driven by strong Middle Market performance, particularly in Germany, Benelux, and Spain ^{p. 3}.

** Retail growth led by sustained momentum in motor across all countries ^{p. 3}.

** Disciplined underwriting and focus on portfolio quality within U.S. Programs and E&S ^{p. 3}.

* Latin America GWP '''+20%''' LFL, benefiting from strong sales in all segments ^{p. 3}.

 

== Life ==

* All figures are in USD millions for the three months ended March 31, 2026, unless otherwise stated ^{p. 4}.

 

{| class="wikitable" style="width:100%"

! style="text-align:left" | USD m

|-

| style="text-align:left" | Life

| style="text-align:right" | (24%)

|}

 

 

{| class="wikitable" style="width:100%"

! style="text-align:left" | USD m

! style="text-align:right; width:6em" | 1Q26

! style="text-align:right; width:6em" | 1Q25

! style="text-align:right; width:6em" | Change USD

|-

| style="text-align:right" | 21%

|}

 

** Growth was broad-based ^{p. 4}.

** EMEA '''+8%''' on strong sales across most major markets, particularly the UK, Italy, Ireland, and Spain ^{p. 4}.

** Latin America '''+18%''', supported by higher sales across the region, notably in Brazil and Mexico ^{p. 4}.

** Asia Pacific '''+4%''', benefiting from continued momentum ^{p. 4}.

** Primarily reflects product mix and prior year's volumes of a retail savings product in Spain ^{p. 4}.

** Unit-linked gross premiums² of '''USD 5.3bn''' '''+3%''' in U.S. dollar and '''-5%''' LFL ^{p. 4}.

** Savings gross premiums² of '''USD 1.2bn''' were lower YoY, reflecting exceptionally high retail savings volumes in Spain in the prior-year period ^{p. 4}.

* New business written in the first three months contributed '''USD 348m''' to the contractual service margin (CSM), '''+18%''' LFL ^{p. 4}.

* All figures are in USD millions for the three months ended March 31, 2026, unless otherwise stated ^{p. 5}.

 

{| class="wikitable" style="width:100%"

! style="text-align:left" | USD m

! style="text-align:right; width:6em" | 1Q26

| style="text-align:right" | 3.5pts

|}

 

* Farmers Exchanges: Zurich Insurance Group has no ownership interest in the Farmers Exchanges. Farmers Group, Inc., a wholly owned subsidiary of the Group, and certain of its subsidiaries, provide certain non-claims and ancillary services to the Farmers Exchanges as their attorney-in-fact and receive fees for their services.

* Surplus ratio: Surplus ratio as of March 31, 2026, and December 31, 2025, respectively.

 

* Policy count increased by '''84k''' in Q1, supported by double-digit percentage growth in new business ^{p. 5}.

* Gross earned premiums '''+4%''' over the same period, reflecting the earn-through of GWP growth ^{p. 5}.

* Farmers Exchanges surplus ratio '''+3.5pts''' in Q1, with organic surplus generation driven by underwriting performance ^{p. 5}.

 

{| class="wikitable" style="width:100%"

! style="text-align:left" | USD m

! style="text-align:right; width:6em" | 1Q26

| style="text-align:right" | (22%)

|}

 

* Change USD: Parentheses around numbers represent an adverse variance.

 

* Zurich's Swiss Solvency Test (SST) ratio was '''265%''' as of March 31, 2026, compared to '''259%''' as of December 31, 2025 ^{p. 5}.

 

== Additional information ==

=== Q&A session for media ===

 

 

=== Q&A session for analysts and investors ===

 

* Media may listen in ^{p. 6}.

* Zurich Insurance Group (Zurich) is a leading global multi-line insurer founded over 150 years ago ^{p. 6}.

* Serves over '''82 million''' customers in more than '''200''' countries and territories ^{p. 6}.

* Since 2020, the Zurich Forest project has supported reforestation and biodiversity restoration in Brazil's Atlantic Forest ^{p. 6}.

* The Group has over '''65,000''' employees and is headquartered in Zurich, Switzerland ^{p. 6}.

=== Disclaimer and cautionary statement ===

 

* Zurich Insurance Group Ltd undertakes no obligation to publicly update or revise forward-looking statements ^{p. 7}.

* 'Farmers Exchanges' refers to Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange, and their subsidiaries/affiliates ^{p. 7}.

* Neither Farmers Group, Inc., nor its parent companies (Zurich Insurance Company Ltd and Zurich Insurance Group Ltd) have any ownership interest in the Farmers Exchanges ^{p. 7}.

* Financial information about Farmers Exchanges is proprietary but provided to support understanding of Farmers Group, Inc. and Farmers Reinsurance Company performance ^{p. 7}.

* Persons requiring advice should consult an independent adviser ^{p. 7}.

* This communication does not constitute an offer or invitation for the sale or purchase of securities in any jurisdiction ^{p. 7}.

 

=== Contact ===

* Address: Mythenquai 2, 8002 Zurich, Switzerland ^{p. 7}.

* Website: www.zurich.com ^{p. 7}.

 

=== Media Relations ===

* '''CSM''': Contractual Service Margin

* '''EMEA''': Europe, Middle East and Africa

* '''GEP''': Gross Earned Premiums

* '''GWP''': Gross Written Premiums

* '''LFL''': Like-for-Like

* '''PVNBP''': Present Value of New Business Premiums

* '''SMI''': Swiss Market Index

* '''SST''': Swiss Solvency Test