Zurich achieved significant premium growth in 2021
March 30, 2022 – Last year, Zurich recorded premium increases in both property-casualty and life insurance in Austria. High levels of storm damage in particular led to a poorer underwriting result, which was more than compensated for by a better financial result.
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- Zurich CEO
Andrea Stürmer (Image: Zurich)
to die Zurich Insurance Ltd I “closed well” the events of 2021, which were characterized by the pandemic and severe storms.
The company is therefore “confident about the future,” writes CEO Andrea Stürmer in the foreword to the annual report.
The customer base was expanded and progress was made in sustainability. There was profitable growth in customers and premiums in direct sales (“Zurich Connect”).
In addition, the Vienna locations were merged last year and the new offices in the 19th district were occupied.
premium increases
In property-casualty insurance, direct premium income increased by 3.3 percent to EUR 559.7 million. They would have developed below the market growth of 4.6 percent. The increase in the motor vehicle business was 2.8 percent and in the non-motor vehicle business 3.6 percent.
Life insurance recorded premium growth of 5.4 percent to EUR 136.7 million (direct). Classic life insurance accounted for 69.1 million euros and unit-linked life insurance for 67.6 million euros. This growth was well above the market level of 0.6 percent.
The premium growth in life insurance came primarily from an increase in regular premiums in unit-linked life insurance and single premiums.
According to the company in the annual report, the development in life insurance is in line with the strategy of achieving growth in unit-linked life insurance and company pension schemes.
storms and major damage
Several violent storm events in northern Austria and major claims in the fire line led to an increase in total claims expenditure in property-casualty insurance by 11 percent to EUR 398.1 million in 2021.
Earnings retained were reduced by 190.8 million euros, which means an increase of 19.6 percent compared to 2020. The net claims ratio increased by 9.9 percentage points to 74.7 percent. The number of claims reported rose by 2.9 percent to 180,936.
In life insurance, the accrued insurance benefits fell by 1.8 percent to EUR 151.0 million. Higher maturity payments were incurred, but this was overcompensated by significantly higher surrender payments.
Better financial result brings higher pre-tax profit
The claims development in the property/casualty development has resulted in a damaging combined ratio (net, after reinsurance levy) from 93.3 percent in 2020 to 102.1 percent now. The underwriting profit fell by 7.1 million euros to 1.4 million.
Life insurance continued to report a negative underwriting result (including investment income from technical business) of EUR -0.6 million (previously: EUR -0.9 million).
The net financial result, on the other hand, improved significantly: it rose by 11.5 million euros to 52.9 million euros. The main reasons for this were price gains from the sale of investments, higher income from investments and higher distributions from investment funds.
The result from ordinary activities thus improved by 9.8 percent to EUR 20.8 million. After 2020 capitalization of deferred taxes and a tax credit resulted in income, believe that income taxes in 2021 will be 7.2 million euros.
Outlook: focus on sustainability
One focus in the current year is on the topic of sustainability: the plan is to expand unit-linked life insurance to include a managed ESG portfolio, and for investments, the CO2 intensity of the securities portfolio is to be reduced by 25 percent by 2024 compared to 2019.
The long-term goal is for unit-linked life insurance in new business to consist entirely of sustainable investments, so the company states in its annual report.
In property/casualty insurance, the focus this year is on fully implementing the range of motor vehicles in the new IT landscape; for non-automotive products, preparations should be made so that implementation can start in the following year.
identification number |
2021 |
+/– |
---|---|---|
Gross premiums written (direct) |
559.7 |
541.7 |
costs for insurance claims |
190.8 |
159.5 |
pay for the insurance company |
70.0 |
70.1 |
Net combined ratio |
102.1% |
93.3% |
Underwriting result |
0.8 |
7.5 |
net financial result |
52.9 |
41.4 |
Profit of common business operation |
20.8 |
19.0 |
net income |
13.6 |
20.7 |
investment portfolio |
1,667.7 |
1,707.7 |
Equity per year end |
86.5 |
93.8 |
To download
the Annual Report 2021 can be downloaded from the Zurich website.