Zurich’s strong underlying performance underpins confident outlook

The FINANCIAL — The management team of Zurich Insurance Group (Zurich) will on November 15 make a series of presentations to update investors and analysts on the progress of the company’s strategy for 2017 to 2019.

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

“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, according to Zurich.

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.