Zurich Asia Pacific delivers solid half-year performance with strong growth in premiums

SINGAPORE, August 10, 2023 – Zurich in Asia Pacific today announces strong half-year results for the period ended June 2023.

Financial and operating highlights:

• Strong trading performance with Property and Casualty (P&C) top-line growth of 15% and Life and Savings up 43% on half-year 2022 (both on a like-for-like basis)
• Solid business operating profit (BOP) of USD 250 million delivered in the first half of 2023, tracking above 50% of the full-year 2022 BOP result
• More than 375,350 net new retail customers added in first half, achieving over 80% of the region’s full-year 2022 delivery
• Customer satisfaction, as measured by net promotor score, has trended up from the end of 2022, driven by ongoing acceleration of digital capabilities and continued transformation in the customer experience

APAC Property & Casualty:

• On a like-for-like basis, Commercial premium grew 11% and Retail premium grew 17%, fueled by strong development in Australia and Indonesia
• Combined ratio of 93.4%, a marginal deterioration from FY22, reflecting additional claims and commission costs

APAC Life & Savings:

• New Business Premiums (PVNBP) grew substantially at 43% (like-for-like)
• Life markets drive new business margin through targeted portfolio actions, with strong contribution from product and channel innovation in Japan and solid momentum in the development of Group insurance in Australia

Commenting on the results, Tulsi Naidu, Asia Pacific CEO for Zurich Insurance Group said: “Zurich in Asia Pacific has delivered an excellent trading performance in the first half of 2023, achieving double-digit premium growth, and contributing strongly to Zurich’s overall global premium development. This solid delivery is a product of disciplined execution against a proven and robust strategy.”

Zurich’s P&C business in Asia Pacific achieved strong premium growth in the first six months of 2023 – up 15% (like-for-like). This was driven by high volumes in the retail motor and travel lines and continued momentum in the Commercial business. On customer experience, the business continues to enhance its onboarding and claims proposition by expanding the use of fast-track applications and claims, to speed-up policy issuance and payments for motor, personal accident and property customers. This has driven increased levels of customer retention and supported growth in the region’s customer base, with more than 375,350 customers added in the first half of 2023 – achieving over 80% of the region’s full-year 2022 delivery.

The regional Life business saw significant growth in Present Value New Business Premium (PVNBP) at 43% (like-for-like), reflecting the strength of Zurich’s retail protection products and strong efforts of the team to broaden and bolster our distribution channels. In Japan, the Life business delivered a standout performance, driven by strong product innovation and an increased focus on broadening distribution, which has resulted in the business’ PVNBP growing 300% (like-for-like) on the prior year. In Australia, the business benefited from a deepened focus on group insurance, leveraging expertise and capability across the wider Group entreprise and securing a partnership with Brighter Super to serve around 250,000 superannuation members.

“Over the last few years, we have consistently focused on enhancing our propositions, technical capabilities and digital services to deliver exceptional experiences for customers, partners and brokers. We are now seeing this emphasis translating into progress on key strategic measures.” Tulsi Naidu, Asia Pacific CEO for Zurich Insurance Group, continued.

In the first half of 2023, Zurich’s regional business continued to enhance its digital partnerships proposition with the introduction of Zurich Edge. Focused on bringing a fresh and modernized perspective to digitally-embedded insurance, Zurich Edge combines deep insurance expertise with a tailored, customer and partner-centric approach to proposition development. Going beyond the traditional realm of protection, solutions are delivered using an cutting-edge suite of technology to ensure seamless integration, deliver best-in-class customer experience, and allow for a data-driven approach to partnership optimization.

Last month also saw Zurich bolster its Asia Pacific Commercial Insurance team with key leadership roles appointed to accelerate the growth and development of the regional business and drive expansion in key Asian markets.