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Zurich Insurance Group Annual Report 2020


Building a better way

Performance view
Download the full Annual Report 2020 Download Report

In 2020, we proved the solidity of our balance sheet, the agility of our people and the timeliness of our digital strategy: all of which helped us to quickly adapt to new ways of serving our customers and protecting our employees.

Mario Greco Group Chief Executive Officer
Mario Greco

How we’re delivering on our aspiration

We aim to be one of the most responsible and impactful businesses in the world. The following stories reflect how we are bringing our aspiration to life in different ways for the benefit of our stakeholders.

Building a better way

  • The future is digital - we've got it covered
  • Protecting your future
  • It's time to act for people and planet

The future is digital - we've got it covered.

Our lives are becoming increasingly digital – and so is insurance. We’re sharpening our focus on innovation in digital technology to reshape the way we interact with our customers and meet their evolving needs.

man holding a phone

Digital claims solutions provide non-stop support

As countries enforced lockdowns, travel restrictions and social distancing measures, we rolled out new digital claims solutions to ensure our customers continue to receive support when they need it – virtually. Our innovative app in Spain allows our adjusters to perform live claims assessments through a customer’s smartphone camera. The entire assessment takes just 15–30 minutes, compared to 10–15 days in the past, resulting in a 25 percent increase in customer satisfaction scores.

man working on laptop

Creating digital connections with customers

Rapidly changing lifestyles demand innovative digital services. Zurich’s new Global Business Platforms, led by Jack Howell (above), is responding by creating and expanding the availability of digital products and services that will foster a closer connection with customers. It’s part of Zurich’s strategy to focus on simplification, innovation and the customer. Global Business Platforms is a groundbreaking step in reaching our goal of becoming our customers’ preferred insurer.

icon remote inspections

Remote inspections become reality

You might think site inspections would be impossible to conduct virtually. Not so fast. Using the Remote Collaboration feature of Zurich Risk Advisor, inspections are carried out through encrypted video links to a customer’s handheld device. The tool, which also captures high-resolution photos, won a 2020 Business Insurance Innovation Award. It helps customers control their risks in multiple lines of business.

man with a tablet

Big ideas battle for innovation crown

Innovation is on display during the Zurich Innovation Championship, a monthslong competition among some of the world’s brightest startups. In its second edition in 2020, the event attracted more than 1,300 entrants and ended with the startup SafeKeep taking the Gold award for its property and casualty claims processing platform ClaimFlo. The competition reflects Zurich’s commitment to a deep understanding of data analytics and the value that digital solutions bring to its customers.

Protecting your future

Being future-ready means rethinking risk management. At Zurich, we’re developing insurance solutions that go beyond traditional risk transfer to provide risk prevention services. Our innovative products mitigate risk and build long-term resilience for our customers and the communities in which they live and work.

man on a boat

Mitigating the impact of climate change on our customers

As the effects of global warming become more evident, Zurich established Climate Resilience in 2020. This helps our commercial customers identify, assess, mitigate and adapt to current and future climate change risks. It leverages our expertise gained from managing climate change risks to provide customers with tailored insights and solutions to help protect them today and long into the future.

icon team meeting

Zurich UK makes workforce fit for the future

Zurich set out to future-proof 3,000 UK workers – that’s two-thirds of our UK workforce – with a GBP 1 million upskilling program to re-train them for roles in areas such as robotics, data science and cybersecurity over a five-year period. The long-term upskilling of home-grown talent will boost the adaptability and agility of our workforce, close skills gaps and could even save GBP 1 million in business recruitment and redundancy costs in the long run.

face with glasses

From risk transfer to risk services

In addition to traditional risk transfer, Zurich has established and expanded services to help commercial clients mitigate and adapt to risks, allowing them to stay one step ahead of adverse events. Whether it’s helping companies grapple with risks related to climate change or providing cybersecurity services, we will continue to respond to growing demand from commercial customers for expertise and advice on building resilience over the long term.

mother with child

Helping customers LiveWell

A growing demand for wellness services is being addressed by LiveWell, formed in 2020 to bring together all of Zurich’s health and well-being initiatives. The new business, led by its CEO, Helene Westerlind, is expanding services into new markets. And, acquisitions of digital health and well-being service providers are boosting its ability to offer innovative solutions. LiveWell is part of the new Global Business Platforms unit.

It's time to act for people and planet

From building a diverse workforce to delivering on our ‘1.5˚C Future Plan’ climate strategy, we’re forging ahead with our ambition to be one of the most responsible and impactful businesses in the world. We’re making strides in our commitment to sustainability and addressing climate change. If we lose the planet, we can’t claim it back.

Read our Sustainability Report

zurich forest

Biodiversity grows in the Zurich Forest

A million trees are taking root in Brazil’s Atlantic Forest. With a grant from Zurich, non-profit Instituto Terra will plant seedlings on 1,730 acres, ensuring that the area becomes self-sustaining and biodiverse. And, Zurich employees can put their names to a tree and become custodians of the ‘Zurich Forest’. The project complements Zurich’s climate change efforts and support of a 1.5˚C future, as established by the UN Global Compact Business Ambition Pledge.

2 girls with zurich lgbt logo

Zurich’s inclusive LGBT+ practices recognized

Zurich was the only insurance company to be named as one of the 2020 Top Global Employers by LGBT+ charity Stonewall. Zurich’s LGBT+ employee network, called Pride@Zurich, was strengthened by the Global Ally Program, launched in December 2019. The program creates a community of non-LGBT+ advocates, or allies, who increase visibility of the LGBT+ community. We believe employees are more engaged, more efficient and happier when they can bring their authentic selves to work.

smiling woman

Using our purchasing power to do good

We launched the Sustainable Sourcing Vision in 2020 to embed our purpose and values into our supply chain and use our purchasing power to help drive positive social, environmental and ethical outcomes. For instance, in the UK we source our office supplies from WildHearts Group, a social enterprise that uses its profits to provide microfinance, improve social mobility in deprived communities, and address gender inequality in the developing world.

icon woman with child

Helping charities when they need it most

As charities struggled due to the cancellation of fundraising activities and closure of charity shops, Zurich Municipal, which specializes in the UK public and voluntary sectors, stepped in to help. It provided 14,000 charity and social enterprise customers with three months of free insurance cover for all policies. That’s one less expenditure for charities to worry about as they focus on supporting people impacted by the COVID-19 pandemic.

Read more about our performance:

Our global presence

Introduction

As one of the few genuinely global insurers, we have a balanced and diverse business. We have a strong position in North America and Europe as a provider of insurance to individuals, commercial operations and global corporate customers, with growing positions in Asia Pacific and Latin America.

our global presence piechart

Note: Percentages may not total 100 due to rounding.
1 Farmers Group, Inc., a wholly owned subsidiary of the Group, provides certain non-claims services and ancillary services to the Farmers Exchanges as its attorney-in-fact and receives fees for its services. Zurich Insurance Group has no ownership interest in the Farmers Exchanges.
2 Based on business operating profit before net expenses of group functions and operations and non-core businesses for which regional allocation is not available.

 

Europe, Middle East, Africa

Zurich has major operations in Germany, Italy, Spain, Switzerland and a presence in other countries, including key markets in the Middle East.

Property & Casualty gross written premiums and policy fees

USD 15.8

Life gross written premiums and policy fees

USD 8.8

Business operating profit1

USD 1.7

1 Based on business operating profit before net expenses of group functions and operations and non-core businesses for which regional allocation is not available.

 

North America

In North America, Zurich is a leading commercial property and casualty insurance provider serving a number of sectors, including global corporate, large corporate and middle market. It additionally serves life clients in the retail, affluent and corporate markets. The Group also operates through Farmers Group, Inc.1 in the U.S.

Property & Casualty gross written premiums and policy fees3

USD 16.0

Life gross written premiums and policy fees3

USD 0.5

Business operating profit2 including Farmers Group, Inc.1

USD 2.9

1 Farmers Group, Inc., a wholly owned subsidiary of the Group, provides certain non-claims services and ancillary services to the Farmers Exchanges as its attorney-in-fact and receives fees for its services. Zurich Insurance Group has no ownership interest in the Farmers Exchanges.
2Based on business operating profit before net expenses of group functions and operations and non-core businesses for which regional allocation is not available.
3Excluding Farmers Group, Inc.

 

Latin America

Zurich operates in Brazil, Mexico, Argentina and Chile, among other countries.

Property & Casualty gross written premiums and policy fees

USD 2.3

Life gross written premiums and policy fees

USD 2.3

Business operating profit1

USD 0.5

1Based on business operating profit before net expenses of group functions and operations and non-core businesses for which regional allocation is not available.

 

Asia Pacific

Zurich has a growing footprint in Asia Pacific, with operations in Australia, Hong Kong, Indonesia, Japan and Malaysia.

Property & Casualty gross written premiums and policy fees

USD 2.9

Life gross written premiums and policy fees

USD 2.4

Business operating profit1

USD 0.3

1 Based on business operating profit before net expenses of group functions and operations and non-core businesses for which regional allocation is not available.

 

  • Intro
  • EMEA
  • NA
  • LATAM
  • APAC

Financial highlights

We continue to deliver strong sustainable performance.

Business operating profit (BOP)1
USD
4.2
Net income attributable to shareholders (NIAS)
USD
3.8
Proposed gross dividend per share2
CHF
20
Total amount of impact investments3
USD
5.8

1 Business operating profit (BOP) indicates the operational performance of the Group’s business units by eliminating the impact of financial market volatility and other nonoperational variables.
2 2020 is proposed dividend per share, subject to approval by shareholders at the Annual General Meeting. Gross dividend, subject to 35 percent Swiss withholding tax.
3 Impact investments in 2020 consisted of: green bonds (USD 3.8 billion), social and sustainability bonds (USD 904 million), investments committed to private equity funds (USD 189 million, thereof 64 percent drawn down) and impact infrastructure private debt (USD 904 million).

Read more about our financial performance:

Performance view

Our performance enables us to deliver long-term benefits to all our stakeholders

Through making the best use of resources, we work to benefit all our stakeholders: we protect customers against risk and provide financial security, we strive to give all employees opportunities to develop talent, deliver returns to investors, and make communities and society better able to address risks and adapt to change.

How our stakeholders benefit:

  • We create value for our customers by helping them understand and protect themselves from risk.

    Innovation that puts customers first

    Throughout 2020, supporting our customers remained our No. 1 priority. Our teams around the world were able to seamlessly continue serving our customers in their remote working environments.

    Key achievements

    • Supported our customers throughout the COVID-19 pandemic
    • Developed a new brand framework and purpose and launched a more dynamic visual identity to enhance our connection with customers
    • Listened and acted on customer feedback through our Net Promoter System (NPS) programs, achieving a 2.5-point increase in our transactional NPS score in 20201
    • Created a Customer Intelligence Platform consolidating customer data to create ‘one customer view’
    • Launched a Customer Academy to strengthen customer capabilities across the Group
    • Created two new roles to enhance our customer expertise

    1 As we continue to expand our NPS programs, we report on like-for-like scores based on feedback channels that already existed in the previous reporting period.

    “We’re reimagining what it means to be customer-focused and have built strong foundations for our ambitions.”

    Conny Kalcher
    Chief Customer Officer

    A closer look on how we've delivered for these stakeholders

    Customers interview through NPS

    Download all our stakeholder metrics Stakeholder metrics

  • We create value for our employees by aiming to give each the opportunity to work to their full potential.

    Creating value for our employees

    People drive our business. From investing in youth employment to upskilling workers, we are readying our business to attract, develop and retain talent in the workplace of the future. Together, we aspire to be known as a purposeful, values-driven organization that empowers its people at every stage of their career.

    Key achievements

    • Put our people first during the COVID-19 pandemic with a focus on well-being, healthcare benefits and enhancing existing flexible working practices
    • Launched internal talent marketplaces in business units and functions to increase employee mobility and meet business needs, part of delivering on our commitment to work sustainability
    • Our Employee Net Promoter System (ENPS) score, a barometer of employee satisfaction, rose 22 points in August 2020 compared to the previous survey in October 2019
    • Our Zurich Apprenticeship Program in North America earned Gold in the 2020 Brandon Hall Group Excellence Awards, as well as a Pledge to America’s Workers Presidential Award

    “We’re proactively preparing for the future of work for the benefit of employees and our customers.”

    David Henderson
    Group Chief Human Resources Officer

    A closer look on how we've delivered for these stakeholders

    Group voluntary turnover

    4.7

    Average employee tenure

    10 years

    Our employees operational KPIs
    Our employees operational KPIs
    Our employees operational KPIs

    1 Turnover figures only consider regular and inpatriate employees.
    2 Technical functions include claims, underwriting and risk engineering.
    3 Group-wide feedback channels include organization health surveys, Employee Net Promoter System (ENPS) scores and any other Group-wide feedback channels. This KPI refers to the average participation rate in the two occurrences of the employee net promoter score survey in 2019, while in 2020 it refers to the single survey that was carried out.

    Download all our stakeholder metrics Stakeholder metrics

  • We create value for our investors by paying an attractive and sustainable dividend and maintaining a strong balance sheet.

    Reassuringly consistent

    Zurich has a highly cash-generative business model supporting an attractive dividend.

    Our proposition to investors

    • Resilient business model
    • Clear strategy
    • Responsible and impactful business
    • Clear and attractive dividend policy

    A dedicated investor relations team

    Our investor relations team comprises nine individuals, who are responsible for communicating with investors.

    A closer look on how we've delivered for these stakeholders

    Proposed gross dividend per share for 20201

    CHF per share

    20.00

    (CHF 20.00 in 2019)

    1 Proposed dividend, subject to approval by shareholders at the Annual General Meeting, expected payment date as from April 13, 2021. Gross dividend, subject to 35 percent Swiss withholding tax.

    Financial strength rating

     

    AA-/positive

    Standard & Poor’s financial strength rating of Zurich Insurance Company Ltd as of December 31, 2020

    Total shareholder return

  • We create value for communities, society and the environment including by mitigating risk and sharing knowledge and expertise.

    Acting today to protect our tomorrow

    Climate change poses one of the biggest and most complex risks to our way of life today. By taking action together, we can mitigate and adapt to the challenges facing our communities, society and environment, now and in the long term.

    Key achievements

    • Named insurance industry leader in 2020 by the Dow Jones Sustainability Index (DJSI), which tracks sustainability performance
    • Became one of the first large institutional investors to prioritize the environmental and social goals of our impact investment portfolio, rather than the monetary amount
    • Continued to make progress on sourcing operational electricity requirements from renewable sources, as part of our new climate strategy and continued carbon neutrality
    • Expanded our Post-Event Review Capability (PERC) methodology to include wildfires to better understand how we can help to build resilience to these events

    Number of companies subject to Zurich’s coal and oil sands policy since November 2017
    (number of companies)

    97

    Excluded1

    58

    Cleared2

    113

    Engagement ongoing3

    1 Excluded: company exceeds Zurich’s thresholds; relationship terminated.
    2 Cleared: confirmation through review process that thresholds are no longer exceeded; relationship continued.
    3 Engagement ongoing: continuing review of transition plans; relationship continued, based on evidence of actual movement towards targets.

Our business model works to deliver benefits for our stakeholders

Our employees are helping our retail and commercial customers to understand and protect themselves from risk.

Serve customers and distribute through multiple channels

Our products and solutions are available to customers with a focus on great customer service, through many channels: directly, or indirectly via brokers, through employee benefits consultants, and in cooperation with third parties including banks, travel providers, retailers, rental agreements and car dealerships.

Underwrite and manage risks

Insuring and managing risk is central to what we do. Understanding, measuring and modeling risks helps us to price risk fairly and offer competitive premiums to customers, who also look to us to provide expertise aimed at mitigating risks.

Manage reserves

Our Group-wide policy, the ‘Zurich Way of Reserving,’ with well-defined and prudent standards, is the basis for how we calculate insurance liabilities. Our reserving process is supported by strong governance, including extensive internal and external reviews.

Invest and deliver returns

Our income includes returns from invested premiums, policy fees and deposits. Our success as a business is important to those who depend on us to reliably pay claims, as well as investors who look to us to deliver savings returns and operate our business responsibly.

Manage claims

To ensure that we provide a positive experience to customers who do business with us, we are systematically listening to customers through our Net Promoter System (NPS) programs, not only as part of our claims process but throughout all customer touchpoints.

The key resources we rely upon to deliver these benefits to our stakeholders:

financial icon

Financial

Our investors provide the financial capital that sustains our business.

intellectual icon

Intellectual

Our expertise, including in risk management and investment, contributes to our success.

human icon

Human

Our approximately 55,000 employees include some of the most talented people in the insurance industry.

social relationship icon

Social and relationship

We maintain strong social ties and relationships with customers, intermediaries, regulators, policymakers and others.

natural icon

Natural

In our daily business we use natural resources as part of doing business. We conserve them and use them wisely.

Read more about our performance:

Downloads

Full Annual Report (16.5 MB/PDF)
Group overview (9.2 MB/PDF)
Governance (4.7 MB/PDF)
Risk review (556 KB/PDF)
Non-financial statements (incl. GRI index) (511 KB/PDF)
Financial review (1.7 MB/PDF)

Related links

Disclaimer and cautionary statement

Certain statements in the document are forward-looking statements.
Read the full disclaimer and cautionary statement.
By accepting you represent that you have read and understood the full disclaimer and cautionary statement.

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