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Zurich Insurance Q1 P&C Premiums Up; Sees $750 Mln COVID-19 Claims In FY20

Zurich Insurance Group AG (ZURVY) on Thursday reported that its first-quarter gross written premiums in Property & Casualty or P&C increased 5 percent to $9.68 billion from last year's $9.18 billion, with growth tempered by adverse currency developments in Latin America.

On a like-for-like basis, P&C gross written premiums grew 7 percent driven by growth from EMEA and North America.

P&C claims from COVID-19 of $280 million has been recognized in the first quarter.

Life annual premium equivalent or APE was $958 million, down 19 percent on a reported basis and down 10 percent on a like-for-like basis from the prior year.

Farmers Exchanges gross written premiums dropped 1 percent from last year to $5.14 billion.

Going ahead, the company expects P&C claims from COVID-19 to be in region of $750 million for 2020.

Further, developments in financial markets and ongoing weaker economic activity also would have an adverse impact on both revenues and earnings through the remainder of the year.

Group Chief Financial Officer George Quinn said, "The impact of claims related to the COVID-19 outbreak and the sharp falls in financial markets in the latter part of the first quarter are expected to remain a 2020 earnings event. Group solvency remains strong and together with the diversity of our business and our conservative balance sheet, I am confident that the Group is well placed to manage the current challenges."

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