Finance
Zurich Insurance sets financial targets for next 3 years
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(Reuters) -Zurich Insurance set three-year targets a year early on Thursday, saying it aimed to reach average
(Reuters) -Zurich Insurance set three-year targets a year early on Thursday, saying it aimed to reach average annual growth of more than 9% in its core earnings per share.
Europe’s fifth-largest insurer announced it was targeting a core return on equity of more than 23% and cumulative cash remittances in excess of $19 billion between 2025 and 2027.
CEO Mario Greco said Zurich was performing exceptionally well but saw new opportunities to accelerate growth.
“To reflect our growing confidence, we are launching a new three-year plan with the most ambitious targets in Zurich’s history,” he said in a statement.
On commercial insurance, Zurich said business operating profit aimed to exceed $4.2 billion and middle market gross written premiums surpass $10 billion by the end of 2027.
On life insurance, protection gross written premiums should increase to a compound annual growth rate of 8%, Zurich said, aiming for further growth in capital-light unit-linked business.
Zurich’s protection business, which represents almost 60% of the life business operating profit, will be consolidated under a single global unit, the company said.
On retail and SME business, the firm said it would return to a long-term level of profitability through a combination of strengthened underwriting, improvements in the portfolio mix, and by leveraging scale and technology assets.
(Reporting by Tristan Veyet in Gdansk, Editing by Milla Nissi and Kim Coghill)
Core earnings per share (EPS) is a measure of a company's profitability, calculated by dividing its core earnings by the number of outstanding shares. It reflects the company's ongoing operations, excluding non-recurring items.
Return on equity (ROE) is a financial metric that measures a company's profitability relative to shareholders' equity. It indicates how effectively management is using equity financing to generate profits.
Gross written premiums refer to the total amount of premiums written by an insurance company before deductions for reinsurance or cancellations. It is a key indicator of an insurer's revenue.
A three-year financial plan outlines a company's financial goals and strategies for the next three years. It includes projections for revenue, expenses, and profitability, guiding decision-making and resource allocation.
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