Zurich Insurance Group AG

Zurich reported 9M 2025 Property & Casualty gross written premiums of $38.9 billion, up 8% year over year. Retail GWP rose 16% year over year and 7% on a like-for-like basis, while the combined ratio improved by approximately 2 points year over year; motor was better by almost 5 points and German retail by more than 11 points. Farmers Exchanges gross written premiums increased 5% to $22.6 billion, with 103,000 new policies added in the last 6 months, and the surplus ratio reached 50.9%. Life gross written premiums rose 11% to $26.8 billion, fee revenues increased 17%, new business margin was 6% versus 5.7% in H1, and new business CSM was $879 million. Zurich estimated its SST ratio at 257% as of September 30. Management did not provide formal next-quarter or full-year financial guidance on this Q&A-only call, but said it entered Q4 with strong financial resilience and is focused on executing against its 2027 financial ambitions.

Mario Greco emphasized that Zurich is improving profitability while continuing to grow, especially by shifting the portfolio toward middle market and specialty lines. He said the company’s construction and infrastructure business is a global leadership area, with expertise across hundreds of specialized underwriters and engineers, and highlighted growth in data center-related projects. On Farmers, he said the combined ratio is improving “irrespective” of the benign cat season and that the exchange is now running in the mid-90s, which supports growth without stressing surplus.

Claudia Cordioli framed the quarter as another “outstanding performance” with strong revenue momentum and high profitability, pointing to record P&C GWP of $38.9 billion, Farmers GWP of $22.6 billion, Life GWP of $26.8 billion, and SST of 257%. She said North America commercial rates are up 1.5% on average, Europe is slightly negative, and mid-market rates are up 3% overall and 4% in North America. On capital and allocation, she said 40% of the asset portfolio is in sovereigns and cash, only 5% of strategic asset allocation is in private credit, and the company remains comfortable with its credit exposure; she also said any German life transaction would likely help SST more than cash, which is one reason Zurich is not planning a large share buyback.

Analysts focused on Farmers pricing, the use of its 50.9% surplus ratio, commercial pricing detail, credit exposure, and whether lower cat losses were creating a temporary tailwind. Management said Farmers rates are still showing positive development in homeowners and auto, and surplus will primarily be used for growth, with quota share potentially declining over time. On commercial pricing, Zurich said rate trends vary by line: property is softer, while liability, motor, specialty, and workers’ comp remain positive or firm; it also said frequency trends are improving year to date. On credit, management said there is no meaningful exposure to the troubled names cited and that the portfolio is high quality, largely investment grade.