Zurich Insurance Group AG

For the first 9 months of 2025, Property & Casualty gross written premiums were $38.9 billion, up 8% year on year, and Zurich said the combined ratio improved by approximately 2 points. Retail gross written premium was up 16% year on year and 7% on a like-for-like basis, with motor combined ratio better by almost 5 points and broader German retail more than 11 points lower. Farmers Exchanges gross written premiums rose 5% to $22.6 billion, while Life gross written premiums increased 11% to $26.8 billion and fee revenues increased 17%; new business margin was 6%, up from 5.7% in the first half, and new business CSM was $879 million. Zurich estimated its SST ratio at 257% as of September 30. No formal next-quarter or full-year numeric guidance was given, but management said it entered the final quarter focused on executing its 2027 financial ambitions and reiterated the Farmers mid- to high single-digit growth ambition.

Mario Greco framed the quarter as evidence that Zurich’s diversified model is working, emphasizing stronger underwriting quality, better margins, and growth in middle market and specialty lines. He said the company is moving more of its portfolio toward those areas, where returns are structurally stronger, and highlighted the creation of a dedicated global specialty unit in London. On Farmers, he said the business is now generating organic growth for the first time in over a decade and that Zurich is comfortable keeping the exchanges’ surplus high to support growth.

Claudia Cordioli said Zurich delivered “another outstanding performance” with strong revenue momentum, profitability and returns. She pointed to P&C GWP of $38.9 billion, Farmers GWP of $22.6 billion, Life GWP of $26.8 billion, and an SST ratio of 257%, noting the balance sheet was supported by profit generation and positive market performance, partly offset by dividend accrual and subordinated debt redemption in October. She also said the company is seeing visible improvement in loss ratios and frequency trends, with the cost of hiring underwriting talent already visible in the expense ratio and expected to benefit the OE ratio next year.

Analysts focused on Farmers pricing, the use of its 50.9% surplus ratio, and whether the combined ratio improvement is sustainable. Management said Farmers is still seeing positive rate development in homeowners and auto, and that growth is the first priority for surplus; they also suggested quota share could come down over time, but no disclosure would be made yet. Questions also covered commercial pricing, credit exposure, and cat losses; Zurich said it has limited private credit exposure, sees positive commercial rates overall, and that lower catastrophe experience helped underwriting, though management stressed the combined ratio improvement also reflects better attritional performance and portfolio actions. On capital, management said a potential German Life transaction could help the SST ratio more than cash, which is why they are not planning a large buyback around it.