California home insurance costs likely to continue rising for years to come  May 9th 2025

Zurich Insurance property and casualty revenue rises, affirms targets | Reuters

Zurich Insurance (ZURN.S), opens new tab reported higher first-quarter revenue and gross written premiums at its core property and casualty (P&C) business on Thursday, maintaining its targets despite instability in the crucial U.S. market.

Europe's third-largest insurer by market capitalisation said in a statement that rate increases of 4%, strong profitability in commercial and improved retail margins supported growth.

Oddo and Vontobel analysts said the results were solid but the latter noted that some investors might be concerned about the company's exposure to the United States and the dollar's weakness following President Donald Trump's often confusing rollout of tariffs.

Chief Financial Officer Claudia Cordioli told reporters on a call after the results that "there's no indication whatsoever" the turmoil in U.S. markets will lead the insurer to step back from its targets.

"We have a significant presence in the U.S., but so do we in Europe, in Asia... The fact that we are translating business written in Europe or in Asia into dollars is actually a positive on our earnings because obviously that's translating into a higher income in U.S. dollar," she said.

The United States is Zurich Insurance's single largest market, accounting for more than 40% of the P&C business. Late last year, the insurer said it was aiming for a core return on equity of more than 25% between 2025 and 2027 and for cumulative cash generation of above $19 billion.

It posted P&C insurance revenue of $10.7 billion in the first quarter, above last year's $10.2 billion, while gross written premiums in the branch grew 5% year-on-year.

Liberty Mutual Insurance Reports First Quarter Results

Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $1.025 billion for the three months ended March 31, 2025, versus income of $1.535 billion for the same periods in 2024.

"For the first quarter, we reported net income attributable to LMHC of $1.0 billion, reflecting improvement in our underlying combined ratio and strong investment results," said Tim Sweeney, Liberty Mutual Chairman & Chief Executive Officer. "Continued discipline in our underwriting resulted in a notable 6.5-point improvement in the underlying combined ratio, achieving an 81.9% for the first quarter. Despite elevated catastrophe losses, driven by the devastating California wildfires, our total combined ratio including these losses and prior year development was 96.6%. Furthermore, our investment results in the quarter were excellent, benefiting from higher reinvestment rates and favorable private equity valuations, contributing $1.3 billion of investment income. Overall, we are very pleased with our performance this quarter as we continue to pursue profitable growth and progress toward our 95% combined ratio goal at the end of 2025."

Root Builds on First Profitable Year With Reversal of Q1 Loss to Start 2025

Root Inc. reported first quarter net income of $18.2 million to build off results of 2024—its first profitable year

The net profit for the first three months of 2025 is compared to a net loss of $6.2 million for Q1 2024 and a loss of nearly $41 million in Q1 2023.

The Columbus, Ohio-based parent company of Root Insurance said it grew Q1 gross premiums written 24% year-over-year to about $411 million while maintaining underwriting discipline. The quarter’s combined ratio was 95.6 compared to 102 a year ago.

“While the macroeconomic environment has become more uncertain over the past several months, it nevertheless provides another opportunity to showcase our technological prowess,” said Alex Timm, co-founder and CEO of the insurtech, in a letter to shareholders. “Our technology and data science capabilities enable us to quickly react to prevailing trends and enhance segmentation to continually offer the best prices to the best drivers.”

Timm said personal auto insurance is “essentially a compulsory product for anyone who drives an automobile,” therefore the business is “defensively positioned to withstand times of macro turbulence.”

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Kemper Corporation - Kemper Reports First Quarter 2025 Operating Results

Kemper Corporation (NYSE: KMPR) reported net income of $99.7 million, or $1.54 per diluted share, for the first quarter of 2025, compared to net income of $71.3 million, or $1.10 per diluted share, for the first quarter of 2024.

Adjusted Consolidated Net Operating Income1 was $106.4 million, or $1.65 per diluted share, for the first quarter of 2025, compared to Adjusted Consolidated Net Operating Income1 of $69.7 million, or $1.07 per diluted share, for the first quarter of 2024.

Key themes of the quarter include:

• Delivered another quarter of strong operating and financial results; trailing 12-month operating cash flow increased to $520 million
• Generated a 14% ROE and a 21% Adjusted ROE1 for the quarter
• Specialty P&C achieved 24% premium growth and 14% PIF growth YoY; 92% underlying combined ratio1 for the quarter
• Life business continued to generate strong return on capital and distributable cash flows; operating income of $17 million for the quarter
• Parent liquidity remains strong at approximately $1 billion; debt-to-capital ratio2 improved to 22.9%, provides greater financial flexibility

“Kemper delivered another quarter of very strong financial results, led by continued robust profitable growth in our Specialty Auto business, which saw a very strong 92% underlying combined ratio, 14% year-over-year policy growth, and 24% written premium growth,” said President and CEO Joseph P. Lacher, Jr. “We improved our capital and liquidity position, significantly reducing our debt-to-capital ratio and producing operating cash flows approaching all-time highs. We’ve invested significant effort over the past few years in building a stronger, more resilient company—positioning us well to navigate the current market uncertainty. We remain confident in our continued ability to create long-term shareholder value.”

Porch swings to surprise profit after latest business remodel — stock soars 68% – GeekWire

Porch Group’s stock shot up nearly 68% on Wednesday, a day after the company reported a surprise profit and raised its outlook for the year — a sign that the latest overhaul of its business is starting to show results for the Seattle-based provider of home services software and insurance products.

The key was strong performance in Porch’s insurance-related operations, following a shift away from directly selling policies, earning fees by managing them instead.

“I’ve never been more excited to report on quarterly earnings as I am here for Q1 2025,” said Matt Ehrlichman, the company’s CEO, on the company’s conference call Tuesday.

In January, Porch sold its insurance carrier (Homeowners of America) to a new member-owned reciprocal exchange, which it now manages for fees and commissions rather than owning directly. The change was designed to generate more stable, high-margin revenue without the financial risks from storms and other costly disasters.

Ehrlichman, who founded Porch in 2012 as a home services marketplace, said the quarter “marks a special time for the company,” moving away from covering costly weather-related claims while still benefiting from the steady growth of the homeowners insurance market.

Porch posted a profit of $8 million in the first quarter, compared with a loss of $24.4 million a year earlier. Revenue totaled $84.5 million, with gross profit of $69.1 million and an 82% gross margin.