SingaporeFebruary 22, 2024

Zurich in Asia Pacific reports strong growth and record customer satisfaction levels

Zurich Asia Pacific today reports its full-year results for the period ended 31 December 2023. Continued focus and execution on customer-led strategy drives revenue and earnings growth.

Strong trading performance for Life and Savings with new business premiums (PVNBP) growing to USD 2,939 million, up 44% on a like-for-like basis from 2022
Property & Casualty topline sees double-digit growth with Gross Written Premiums (GWP) up 11% like-for-like from 2022 to USD 3,612 million
Asia Pacific business operating profit (BOP) of USD 565 million (actual FX), up USD 88m or 18% from 2022
Customer satisfaction at a record high and customer base up 7% to 11.7 million customers

Tulsi Naidu, APAC CEO, Zurich Insurance Group said: “We delivered very strong financial and operational results in 2023 with broad based progress across our markets in the Asia Pacific region. This solid performance is the result of focused execution in each of our markets and the product of ongoing actions to strengthen our platform across the region. We will continue to build on this progress in 2024, further leveraging and embedding new technology to deliver exceptional customer service and drive greater value for our partners.”

Zurich’s Asia Pacific Life business saw significant double-digit growth in 2023 with full-year BOP up 88% (actual FX) compared to the prior year. Life premiums (PVNBP) grew significantly to USD 2,939 million, higher than 2022 by 44% (like-for-like). This was driven by significantly higher sales in Japan, which rebounded from a low level in the prior year, and in Australia, which benefited from increased volumes of corporate business.

The P&C business delivered strong topline growth in 2023 with Gross Written Premiums of USD 3,612 million, up 11% (like-for-like), driven by increasing volumes in the retail travel and motor lines and continued new business momentum in the Commercial segment. These results were supported by an excellent performance in the personal and mid-market sectors in Australia; increased focus on the launch of Takaful motor products in Malaysia; digital delivery of retail products in Hong Kong; and a favorable result for Commercial Insurance Asia.

Throughout 2023, Zurich in Asia Pacific continued to advance its customer-focused strategy, leveraging insights and analytics to improve customer experience. This is reflected in the highest ever customer satisfaction rates1 for Zurich in the region across all its retail markets. These improvements, together with demand through partnership distribution channels, supported further growth in the number of retail customers by more than 760,000 to 11.7 million.

Technology is playing a critical role in improving the customer experience and positioning Zurich as an insurer of choice in the region. Through an increased focus on leveraging data analytics to drive optimization and greater adoption of artificial intelligence (AI) technology, Zurich has been able to further simplify and streamline customer transactions, delivering greater automation, significantly speeding up policy application and claims processing times, and meeting demands for more personalized propositions.

Last year, Zurich in the region made a significant investment in its digital partnership business through the launch of Zurich Edge. With its open architecture full-stack platform and access to Zurich’s global API exchange, Zurich Edge enables seamless journeys, personalized experiences, and leverages advanced analytics to optimize customer engagement – all within a partners’ ecosystem. The flagship digital-first approach to insurance delivers progressive protection solutions to customers, where and when they need it the most, allowing partners to further drive engagement and build competitive advantage.

Expected to close in the first half of this year, Zurich also announced a strategic alliance with Kotak Mahindra Bank Limited (“Kotak Mahindra Bank”), India’s third largest private sector bank by market capitalization, through the proposed acquisition of a majority stake in Kotak Mahindra General Insurance Company Limited (“Kotak General Insurance”). Through this transaction, Zurich enters one of the most attractive and fastest growing insurance markets globally and will represent the largest foreign insurer investment in the Indian insurance sector since the regulatory changes allowing majority foreign ownership came into effect in 2021.

Contact
Bhavna Hemlani
Email: bhavna.hemlani@hk.zurich.com

¹As measured by transactional net promotor score

Zurich Insurance Group (Zurich) is a leading multi-line insurer serving people and businesses in more than 200 countries and territories. Founded 150 years ago, Zurich is transforming insurance. In addition to providing insurance protection, Zurich is increasingly offering prevention services such as those that promote wellbeing and enhance climate resilience.

Reflecting its purpose to ‘create a brighter future together,’ Zurich aspires to be one of the most responsible and impactful businesses in the world. It is targeting net-zero emissions by 2050 and has the highest-possible ESG rating from MSCI. In 2020, Zurich launched the Zurich Forest project to support reforestation and biodiversity restoration in Brazil.

The Group has about 60,000 employees and is headquartered in Zurich, Switzerland. Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at www.zurich.com.

Disclaimer and cautionary statement

Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the Group). Forward-looking statements include statements regarding the Group’s targeted profit, return on equity targets, expenses, pricing conditions, dividend policy and underwriting and claims results, as well as statements regarding the Group’s understanding of general economic, financial and insurance market conditions and expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and plans and objectives of Zurich Insurance Group Ltd or the Group to differ materially from those expressed or implied in the forward-looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in key markets; (ii) the risk of a global economic downturn, in the financial services industries in particular; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity experience; (vii) policy renewal and lapse rates; (viii) increased litigation activity and regulatory actions; and (ix) changes in laws and regulations and in the policies of regulators may have a direct bearing on the results of operations of Zurich Insurance Group Ltd and its Group and on whether the targets will be achieved. Specifically in relation with the COVID-19 related statements, such statements were made on the basis of circumstances prevailing at a certain time and on the basis of specific terms and conditions (in particular applicable exclusions) of insurance policies as written and interpreted by the Group and may be subject to regulatory, legislative, governmental and litigation- related developments affecting the extent of potential losses covered by a member of the Group or potentially exposing the Group to additional losses if terms or conditions are retroactively amended by way of legislative or regulatory action. Zurich Insurance Group Ltd undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

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