Zurich chief says inflation threat to insurance margins easing
Zurich’s chief executive predicts that the damage inflation has wrought on its underwriting margins has peaked, despite the insurance group missing analyst expectations as the cost of motor claims soared.
Zurich, one of Europe’s biggest insurance groups, released full-year results on Thursday, reporting a flat combined ratio — claims and expenses as a proportion of premiums — for its property and casualty business at 94.3 per cent. Analysts had expected a slight improvement.
Speaking to the Financial Times, Zurich boss Mario Greco identified the rising cost of claims in its US and European retail insurance businesses, including its domestic market in Switzerland, driven by increasing costs for car parts and other items. A better performance for its commercial business softened the blow.
This story originally appeared on: Financial Times - Author:Ian Smith
