Zurich Insurance said natural catastrophe losses in its property/casualty unit rose in the third quarter, driven by storms across Germany, Italy and Switzerland. The loss ratio for the first nine months reached 3.2%, up from 1.4% the previous year, as hailstorms and heavy rain led to increased claims on property, vehicles and infrastructure. An earthquake in Colombia also contributed to the higher figure.
The company noted that pricing trends in property and casualty are moderating, with slower premium increases across the sector. Gross written premiums in the unit climbed 7% to $42.1 billion, but slower rate rises in large-property business weighed on commercial insurance. The life business saw a 3% increase in gross written premiums, while Farmers Exchanges rose 4% in dollar terms. Analysts at Jefferies commented that rate changes remain positive, though momentum is slowing in some segments.
Zurich completed its $11 billion purchase of Beazley in October, aiming to become the largest specialty insurer with $15 billion in gross written premiums. The firm said it has seen little turnover among Beazley underwriters, with retention supported by bonuses and new opportunities. Zurich will update investors on Beazley integration on 17 November.
