Zurich is fully delivering on its 2019 financial targets and is well positioned to deliver future earnings growth and attractive shareholder returns
- 2018 Investor Day highlights that Zurich Insurance Group is fully delivering on its 2017-2019 financial targets, having restored management discipline and efficiency
- Zurich’s balance sheet remains very strong and, together with earnings growth, supports further shareholders’ value creation
- Rebalancing of business mix will support future earnings growth
- Zurich has built leading positions in attractive markets through targeted acquisitions while releasing capital from non-core operations
- Zurich is progressing well on its customer oriented strategy by strengthening capabilities and expanding service offerings
The management team of Zurich Insurance Group (Zurich) will today give a series of presentations to update investors and analysts on the progress of the company’s strategy.
“I am very pleased that we are fully delivering on the financial targets that we set out back in 2016,” said Group Chief Executive Officer Mario Greco. “Two years into our strategic cycle we are a very different company from the one we were in 2016. We are customer-led, with a more focused footprint and empowered local units and our management team is focused on disciplined execution and expanding the service offerings to deepen our customer relationships and drive profitable growth. Together with our strong capital position and cash generation this supports attractive and growing shareholder returns.”
At Investor Day 2018, Chief Executive Officer Mario Greco will present proof points of delivery against the Group’s strategy, and Chief Financial Officer George Quinn will provide additional detail in the finance update. In a series of four separate breakout sessions, business highlights for North America, Switzerland, Ireland and Australia Life will be given.
Zurich is on track to achieve its 2017-2019 financial targets. Zurich’s business operating profit after tax return on equity for the first six months of 2018 was 12.3% and it achieved cumulative net expense savings of USD 900 million. Zurich will achieve net savings of USD 1.1 billion by the end of 2018, well in line with its end-2019 target of USD 1.5 billion.
Cash remittances for the first half of 2018 continued to be strong, putting Zurich on track to achieve the target of more than USD 9.5 billion over the three years. Zurich expects to generate accumulated cash remittances of more than USD 7 billion for the two years 2017 and 2018, and net cash remittances in excess of USD 1 billion per annum in Life for 2018-2021. Zurich remains strongly capitalized with an estimated Z-ECM ratio of 134%1 as of the end of September 2018, well above the 100-120% target range. Together, these provide a strong and stable platform to deliver an attractive and growing dividend.
1 Reflects midpoint estimates as of September 30, 2018 with an error margin of +/- 5pts for Z-ECM.
Further information
The Investor Day will start at 10:30 CET and presentations by Mario Greco and George Quinn will be live streamed. Media may listen in. The breakout sessions will be closed presentations. The investor presentation will be published at 10:15 CET and a replay of the webcast will be available as of 16:00 CET on our website.
Dial-in numbers
Europe +41 58 310 50 00
UK +44 207 107 06 13
U.S. +1 631 570 56 13
Please dial in to register 10 minutes prior to the start of the call.
Agenda
| Time (CET) | Topic | Speaker |
| 10:30–11:00 | Strategic update | Mario Greco |
| 11:00–11:30 | Finance update | George Quinn |
| 11:30–12:00 | Q&A | Mario Greco, George Quinn |
| 12:00–12:15 | Coffee break | |
| 12:30–13:15 | Breakout session 1 | North America, Switzerland, Australia and Ireland teams |
| 13:15–14:15 | Lunch break | |
| 14:30–15:15 | Breakout session 2 | North America, Switzerland, Australia and Ireland teams |
| 15:25–16:10 | Breakout session 3 | North America, Switzerland, Australia and Ireland teams |
| 16:20–17:05 | Breakout session 4 | North America, Switzerland, Australia and Ireland teams |
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Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With about 53,000 employees, it provides a wide range of property and casualty, and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.
Disclaimer and cautionary statement
Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the Group). Forward-looking statements include statements regarding the Group’s targeted profit, return on equity targets, expenses, pricing conditions, dividend policy and underwriting and claims results, as well as statements regarding the Group’s understanding of general economic, financial and insurance market conditions and expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and plans and objectives of Zurich Insurance Group Ltd or the Group to differ materially from those expressed or implied in the forward-looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in key markets; (ii) the risk of a global economic downturn, in the financial services industries in particular; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity experience; (vii) policy renewal and lapse rates; and (viii) changes in laws and regulations and in the policies of regulators may have a direct bearing on the results of operations of Zurich Insurance Group Ltd and its Group and on whether the targets will be achieved. Zurich Insurance Group Ltd undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.
All references to “Farmers Exchanges” mean Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and their subsidiaries and affiliates. The three Exchanges are California domiciled inter-insurance exchanges owned by their policyholders with governance oversight by their Boards of Governors. Farmers Group, Inc. and its subsidiaries are appointed as the attorneys-in-fact for the Farmers Exchanges and in that capacity provide certain non-claims administrative and management services to the Farmers Exchanges. Neither Farmers Group, Inc., nor its parent companies, Zurich Insurance Company Ltd and Zurich Insurance Group Ltd, have any ownership interest in the Farmers Exchanges. Financial information about the Farmers Exchanges is proprietary to the Farmers Exchanges, but is provided to support an understanding of the performance of Farmers Group, Inc. and Farmers Reinsurance Company.
It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of full year results.
Persons requiring advice should consult an independent adviser.
This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction.
THIS COMMUNICATION DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS.