(Reuters) – Zurich Insurance Group Ltd. does not expect to have any major exposure to the failure of supply chain finance firm Greensill Capital Pty Ltd., the insurer's CFO said on Wednesday after reporting solid results in the first quarter
Greensill Capital lent money to companies by buying its invoices at a discount but it collapsed in March 2021 after one of its main insurance companies refused to renew its protection.
Among the investors burned in the extensive fallout were clients from Switzerland. the banking giant Credit Suisse Group AG, the steel magnate Sanjeev Gupta & # 39 ;s GFG Alliance and about 26 German cities.
Zurich, a major player in the commercial credit insurance market, is one of several insurance companies that are unsecured creditors of Greensill's UK operations, according to administrator Grant Thornton's report published last week.
"We do not expect any material exposure as a result of the Greensill insolvency," Zurich CFO George Quinn told a media conference, adding that it was "difficult to control impossible to comment on customer relationships."
Some of Greensill's assets were backed by insurance, and Grant Thornton said investors may be able to recover certain funds through claims.
Europe's The fifth largest insurance company noted an increase in written premiums on real estate and accidents by 9% on a corresponding basis during the quarter and 1
Berenberg's analysts had expected a 5% increase in premium income.
Premier interest rates rose 7%. Zurich and other insurers have benefited from higher interest rates across the board after suffering pandemic – related losses last year.
Zurich's new life insurance value increased by 21% on a similar basis, driven by a favorable business mix, while its annual premium equivalent sales decreased by 4%.
Zurich said it experienced more natural disasters than usual during the first quarter, including the winter storm Uri that swept across the central and southern United States in mid-February.
Zurich also said that some of its markets in EMEA and Latin America, such as the United States, suffered higher mortality in the first quarter due to COVID-19.
Zurich's shares changed slightly at 0712 GMT. Catalog