Zurich’s strong underlying performance underpins confident outlook
- Annual Investor Day highlights steps taken to sharpen customer focus, simplify the organization and reduce volatility
- Presentations showcase investments in technology-enabled customer propositions, growth in bank distribution and affinity partnerships, and increased use of customer metrics
- Group reaffirms that it is on-track to achieve 2017-2019 financial targets
- Improved underlying performance, cash-generative business model and strong balance sheet fuel confidence in Group’s ability to increase the return of capital to shareholders over time
The management team of Zurich Insurance Group (Zurich) will today make a series of presentations to update investors and analysts on the progress of the company’s strategy for 2017 to 2019.
“In the face of challenging market conditions we continued to grow our businesses, improve our underlying performance and transform our approach to customer service,” said Group Chief Executive Officer Mario Greco. “This pattern of success gives us confidence that we will deliver on our targets and increase returns to our shareholders.”
Reinforcing these points, senior leaders from across the Group will present updates on the implementation of a series of market-facing initiatives within Zurich North America, Farmers1, Latin America, bank distribution and Asia Pacific.
These successes and other initiatives are reflected in the Group’s delivery of above-target returns for the six months to June 30, 2017. The Group’s business operating profit after tax return on equity was 12.5%2, and it achieved cumulative cost savings of around USD 550 million toward the target of USD 1.5 billion, with the benefits from additional actions that are underway expected to flow through by the end of the year.
Cash remittances for the first half of the year were in line with targets and the Group remains robustly capitalized with an estimated Z-ECM ratio of 136%3, above the 100-120% target range.
The Group expects the recent series of natural catastrophes will lead to an improving price trend in Commercial Insurance. “The targets announced last year anticipated a weakening market trend. The recent events are a reminder of rising risk costs, and we expect that the impact of the events will lead to an improving price trend. This will further boost our ability to deliver on the targets for 2017-2019,” said Mr. Greco.
1 Zurich Insurance Group has no ownership interest in the Farmers Exchanges. Farmers Group, Inc., a wholly owned subsidiary of the Group, provides certain non-claims administrative and management services to the Farmers Exchanges as its attorney-in-fact and receives fees for its services.
2 Ogden is the discount rate for calculating personal injury and accident claims in the UK. A change to the rate in February had a USD 289 million impact on the Group’s profitability in Q1. This commentary therefore focuses on operating results ‘ex-Ogden’ to more accurately reflect Zurich’s performance in the first half of 2017.
3 Reflects midpoint estimates as of September 30, 2017 with an error margin of +/- 5pts for Z-ECM.
Further information
There will be a media conference call in English starting at 08:30 CET with Group Chief Executive Officer Mario Greco followed by a question and answer session. The respective media presentation will be available from 07:15 CET on our website.
The Investor Day will commence at 11:00 CET and will be live streamed. Media may listen in. The investor presentation will be published at 10:45 CET and a replay of the webcast will be available as of 20:00 CET on our website.
Dial-in numbers
Europe +41 58 310 50 00
UK +44 203 059 58 62
U.S. +1 631 570 56 13
Please dial-in to register 10 minutes prior to the start of the respective call or broadcast.
Program
| TIME (CET) | TOPIC | SPEAKER |
| 11:00–11:45 | Strategic update | Mario Greco |
| 11:45–12:45 | Farmers | Jeff Dailey, Mike Linton, Roy Smith |
| 12:45–13:15 | North America | Kathleen Savio |
| 13:15–13:35 | Q&A | Jeff Dailey, Mike Linton, Roy Smith, Kathleen Savio |
| 13:35–14:50 | Lunch break | |
| 14:50–15:20 | Latin America | Claudia Dill |
| 15:20–15:50 | Bank distribution | Javier Lorenzo, Raul Vargas |
| 15:50–16:20 | Asia Pacific | Jack Howell |
| 16:20–16:40 | Q&A | Claudia Dill, Jack Howell, Javier Lorenzo, Raul Vargas |
| 16:40–16:55 | Coffee break | |
| 16:55–17:25 | Finance update | George Quinn |
| 17:25–17:55 | Q&A | Mario Greco, George Quinn |
| 17:55–18:00 | Wrap-up | Mario Greco |
Downloads
Contacts
- Media Relations
- Investor Relations
Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With about 54,000 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 and 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.