Allianz, Axa, Chubb and Zurich Insurance Group – although not all consolidating their activities under the same prudential regime (Swiss Solvency Test for Zurich Insurance, Solvency II for Allianz, Axa as for Chubb European Group SE, the company active in the EU of the group of American origin) – the main international insurers nevertheless display almost similar interim results; all record an increase in activity, a comfortable level of solvency (i.e. their capacity to meet their commitments to policyholders), combined ratios below 100% which, below this limit, indicate the profitability of the insurer’s property and casualty activity or even of the CSMs (Contractual Service Margin) of good condition.
Rising turnover figures
Zurich Insurance Group’s insurance revenues amount to $28.736 billion in H1 2024 (vs. $26.971 billion in H1 2023, +6.5%). An increase of 6% for the P&C branch and 3% in life. “The results are driven by continued strong performance in P&C, record BOP (operating profit) of 7% to $4 billion in H1 2024 (vs. $3.7 billion), and excellent growth at Farmers (the group’s subsidiary operating in the United States) with revenue of $14.257 billion (+5% vs. H1 2023), the report states. The results of individuals and SMEs in damages are improving, in particular as a result of price increases.
For Allianz, turnover increased by 6.4% to €91 billion (vs. €85.6 billion in the same period in 2023). The P&C activity issued gross premiums amounting to €44.8 billion (+7.3% vs. H1 2023 at €41.7 billion). As for life/health insurance, it increased by 5.5% to €42.7 billion in H1 2024 (vs. €40.4 billion in H1 2023). “These results in property and casualty insurance were complemented by performances in our life, health and asset management segments,” says Oliver Bäte, CEO of Allianz.
For its part, Axa is posting a 7% increase in revenue for H1 2024 to €59.9 billion (€55.7 billion). The property and casualty business is posting revenue of €32.5 billion (+7% vs. H1 2023 at €30.4 billion). As for life/health insurance, it is up 7% to €26.5 billion (vs. €24.5 billion). “This growth is explained by the increase in the volume of customers and premiums. This dynamic is also driven by Axa XL Re (+10%) as well as personal insurance in Germany and the United Kingdom,” announces Frédéric de Courtois, deputy general manager of the group. “We benefit from cash-flow important in foresight and health”, he adds.
Finally, the growth prize goes to Chubb, with gross written premiums in H1 2024 amounting to $30.916 billion (vs. $27.884 billion in H1 2023, +11%). This increase is the result of a combination of pricing strategies, with an increase in P&C insurance prices that helped offset significant costs related to natural catastrophes and geographic expansion (in mid-2023, Chubb acquired a majority stake in the Chinese group Huatai). The group also has the best combined ratio of the four insurers, at 86.4% (vs. 85.8% in H1 2023).
Combined ratios in green
For Zurich Insurance Group, the combined ratio (CR) of property and casualty insurance is 93.6% in H1 2024 (+0.7 points vs. H1 2023). That of Allianz shows a solid rate of 92.7% (vs. 92%). The CR of the Axa group, for its part, improves, going from 90.9% to 90.2%.
Very soft cushions
For Zurich Insurance Group, the solvency ratio is estimated at 232% (252% in H1 2023). This decrease is explained by the implementation of a share buyback program launched in 2024 and reaching $1.3 billion. The group has also reserved part of its profits to ensure the distribution of dividends in April 2024. For Allianz, the solvency ratio stands at 206% (stable vs. H1 2023). Axa follows the same trajectory with a ratio of 227% (stable vs. H1 2023).
The new arrival CSM
Integrated into the life insurance performance indicators since September 2023, the CSM (contractual service margin) is key within the framework of the recent international accounting standard applicable to insurers IFRS 17. Indeed, the indicator makes it possible to represent the expected profit from newly issued life contracts. Thus, Zurich Insurance Group displays a CSM of $11.415 billion in H1 2024 (vs. $11.526 billion in H1 2023, -1%).
The Axa group report also indicates a slight decrease in the CSM. “The contractual service margin stood at €33.6 billion, down €0.4 billion compared to December 31, 2023, due to the negative impact of reinsurance treaties on the life insurance portfolios of Axa France and Axa Life Europe (-€0.6 billion), partially offset by the impact linked to the agreement ending the sale of a life portfolio at Axa Germany (+€0.2 billion)”, indicates the group’s press release.
Conversely, Allianz’s CSM increases from €53.2 billion in the first quarter of 2023 to €53.6 billion in H1 2024 (+1.3%).
