"The Group continues to be on track to exceed its strategic and financial targets for the 2020-2022 cycle," said Group Chief Financial Officer George Quinn. "We saw robust premium increases across the Group, most notably in our North American Property & Casualty business, where rate increases drove double-digit top-line growth. We expect margin trends in our commercial insurance business to be positive into 2023. The Life business continues to experience positive operating trends which are offset by the effects of the strong U.S. dollar and weaker financial markets. Farmers is demonstrating strong, rate-driven growth. Our capital position is excellent and the strong delivery through this strategic cycle positions us well as we look forward to setting out our plans for the next three-year cycle at our upcoming Investor Day".
Key highlights of Q3 figures include:
Property & Casualty premiums grew strongly in 9M2022, with rate increases in commercial insurance continuing to drive an expansion in margins. It's worth noting that the third quarter saw elevated natural catastrophe losses driven mainly by Hurricane Ian making landfall in the U.S for which, based on current estimates, the Group has recognized a net impact of USD 550 million on a pre-tax basis. The higher frequency and severity of natural catastrophe events in recent years underlines the importance of the steps the Group is taking to actively manage its exposure to these events.
In Life, new business volumes grew by 2% on a like-for-like basis, while new business value was 11% lower, driven by a combination of modelling and assumption updates and higher interest rates. New business margin remained attractive at 26.5% in the first nine months, down from 30.4% in the previous year.
GWP at the Farmers Exchanges were up 11%, benefiting from the inclusion of the acquired MetLife business and increased pricing.
Read the full release on Zurich's Q3 results on the Group's website.