Zurich’s property and casualty business posted higher earnings in the first quarter, lifted by rate increases across its commercial and retail operations.

Insurance revenue grew 5% to $US10.78 billion ($16.82 billion), and gross written premium also improved 5% to $US13.32 billion ($20.79 billion). 

The “robust” growth was “supported by higher premium rates of 4% in P&C, which was driven by a 5% rate change in retail while commercial insurance experienced a 3% increase”, the insurer says. 

In the Asia-Pacific market, which includes Australia, insurance revenue increased 14% to $US982 million ($1.53 billion) and GWP rose 13% to $US1.03 billion ($1.6 billion). 

Zurich says natural catastrophe losses had a combined operating ratio impact of 3.2%, compared with 1.6% a year earlier.

“The increase was mainly driven by the losses from the California wildfires in January, which were in line with the previously disclosed estimate.”

In February, the insurer estimated a $US200 million ($312 million) impact from the fires.