Financial basis

Zurich Insurance sees $550 million impacted by Hurricane Ian, on track to beat targets

ZURICH/LONDON, Nov 10 (Reuters) – Zurich Insurance Group (ZURN.S) expects a net impact of $550 million before tax from Hurricane Ian, it said on Thursday, even if it remains on track to exceed its 2020-2022 financial targets, helped by increases in contribution rates.

Insurers face potential losses of up to $60 billion from Hurricane Ian, which tore through Florida and the Carolinas in September in what could be the second-largest natural disaster in US history. United.

Climate change contributes to the increase in losses of insurers in the event of natural disasters.

Europe’s fifth-largest insurer said it saw its overall catastrophe loss ratio for the first nine months about two percentage points above long-term trends.

Zurich is hosting an Investor Day next week where it will set its 2023-2025 goals.

“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 in a commercial statement, pointing to “robust premium increases in the whole group”.

Zurich reported that property and casualty insurance premiums rose 8% to $33.5 billion in the first nine months, a gain of 13% on a like-for-like basis.

The insurer said the annual premium equivalent (APE) of new life insurance business fell 6% but rose 2% on a like-for-like basis that takes into account currency movements, acquisitions and disposals.

Zurich’s Swiss Solvency Test (SST) capital ratio was estimated at 252% as of September 30, down from 212% a year ago, a sign of greater capital strength.

Reporting by Michael Shields in Zurich and Carolyn Cohn in London, Editing by Miranda Murray

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