New business in Life added USD 265 million of contractual service margin, premiums were up 23% on a like-for-like basis. Farmers Exchanges GWP went down by 3%, impacted by the commercial rideshare business, partially offset by strong improvement in pricing, according to the Group's press release.
GWP in P&C rose 10% compared with the prior-year period on a like-for-like basis, adjusting for currency movements. They rose 6% in U.S. dollar terms, reflecting the stronger U.S. dollar against major currencies.
"The Group has made a strong start to the new financial cycle. We saw robust growth in Property & Casualty (P&C), with a double-digit increase in premiums in North America, mainly driven by rate increases. Underlying commercial insurance margins have continued to improve but we are being cautious about recognizing the full benefit as we gain familiarity with the new accounting standard. Retail markets are seeing higher prices on renewal and margins will improve over the course of the year as earned rates start to exceed loss cost trends. Our Life business has seen strong growth in new business volume, while in the short term, business mix has reduced margins. The Farmers Exchanges saw underlying growth while focusing on improving the underwriting result. We have also announced two further back book transactions, which mark an important step in our commitment to reduce volatility and improve the quality of returns. These transactions also create the potential to deliver returns at even higher levels in the future. These are our first financial results under IFRS 17. I would like to thank all my colleagues for their hard work to reach this milestone. We have had a strong start to the year and our new financial cycle, and we remain focused on executing our strategy", said Group Chief Financial Officer George Quinn.
Click here to read the Zurich first quarter 2023 results under IFRS 17.