mother and girl under water

Zurich Insurance Group Annual Report 2020


Building a better way


Performance view

Download the full Annual Report 2020

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.


Decline

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.

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.

Read more about our performance:

Performance view

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 bn

Net income attributable to shareholders (NIAS)

USD 3.8 bn

Proposed gross dividend per share2

CHF 20

Total amount of impact investments3

USD 5.8 bn

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:


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.

 

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

Customers interview through NPS 
Download all our stakeholder metrics Stakeholder metrics  

Conny Kalcher

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

Conny Kalcher
Chief Customer Officer

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

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

David Henderson

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

David Henderson
Group Chief Human Resources Officer

Group voluntary turnover

 
4.7%

Average employee tenure

 
10years
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  

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


Investor relations team

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
20.0
(CHF 20.00 in 2019)

Financial strength rating

 

AA-/positive

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

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.

Total shareholder return

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:

pictogram legal

Financial

Our investors provide the financial capital that sustains our business.

icon knowledge

Intellectual

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

picto team

Human

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

icon customer service dialog 2

Social and relationship

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

natural resource 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:

Performance view