Zurich’s SST ratio rises to 201% driven by subordinated debt placement

Written by Adam Cadle

12/05/2021

Zurich’s Swiss Solvency Test (SST) ratio rose by 19 percentage points over Q1 2021 to 201%, driven by favourable market conditions and the successful placement of US$1.75bn of subordinated debt.

The acquisition of the MetLife P&C business and the early redemption of a hybrid debt instrument partially offset the increase. The latest figure remains well in excess of the group’s 160% target level.

Gross written premiums in property & casualty (P&C) for the first three months rose 9% compared with the previous year.

In the first quarter, life new business annual premium equivalent (APE) decreased 4% on a like-for-like basis, adjusting for currency movements, acquisition and disposals. The decline reflects the lower sales in corporate life and pensions and annuity products, while unit-linked business showed strong growth momentum.

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