By Elena Vardon

Zurich Insurance confirmed its targets after a rise in premiums for the first quarter on growth across all of its business lines.

The Swiss insurer on Thursday said gross written premiums for its property and casualty branch rose 5% to $13.315 billion over the three months ended March 31, supported by rate increases, profitability in its commercial line and better retail margins. Revenue in what is its core division rose to $10.78 billion from $10.25 billion.

"With our geographically diversified business, outstanding track record and robust balance sheet, I am confident that we will continue to deliver on our targets despite the volatile environment," Finance Chief Claudia Cordioli said. The insurer operates across Europe, Asia and the Americas and counts the U.S. as one of its key markets.

Zurich has guided for a core return on equity of more than 23% in the period to 2027 and aims to generate more than $19 billion in cumulative cash remittances.

At its life-insurance division, the group reported an 18% increase in gross written premiums to $9.36 billion which was driven by several offerings across its European markets, such as retail savings in Spain, unit-linked products in Italy and protection products in Switzerland and offset weakness in its smaller Asia Pacific life business, it said.

At Farmers Exchanges, the policyholder-owned inter-insurance exchanges in California that have contracts with Zurich, new business and higher retention lifted gross written premiums by 5% to $7.40 billion, it added.

The group was exposed to the wildfires in southern California at the start of the year primarily through some of its commercial business in the state and financial arrangements with Farmers Exchanges. Zurich confirmed that it still estimates a $200 million pretax hit from the fires. The event also contributed to the increase in its natural-catastrophe combined ratio to 3.2% for the first quarter from 1.6% a year prior. Aside from January's fires, the quarter was unusually benign in terms of weather and catastrophe losses, Cordioli said in a call with journalists.

Zurich's Swiss solvency test ratio--a measurement of capital strength--stood at 256% at the end of the quarter compared with a 250% average estimate taken from a company-compiled consensus. The insurer is monitoring this metric closely. "The ratio has proved to be extremely resilient throughout April," Cordioli added.

While some analysts described the print as solid, others pointed to a relatively underwhelming set of results. Shares edged down in European morning trading.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

May 08, 2025 05:45 ET (09:45 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.