Zurich sets out more ambitious financial goals after posting highest profits since 2008
Zurich Insurance today vowed to “build a clear leadership position in the insurance industry” in pledging to pursue more ambitious financial targets over the next three years.
The Swiss insurer said it is now aiming to grow its annual earnings per share at a rate of eight per cent each year over the period 2023-25.
This is expected to see the insurance giant generate a return on equity (RoE) in excess of 20 per cent, Zurich said, as it set out plans to pay £13.5bn to shareholders over the next three years.
The insurer said it aims to achieve its new financial goals while retaining its current capital position, in aiming for a Swiss Solvency Test (SST) ratio of at least 160 per cent.
Zurich’s decision to set out new financial goals came as the insurer said it is currently on-track to exceed the aims it had previously set itself for the period 2023-25.
The Swiss giant’s strong performance comes as rising insurance premiums have benefited the company in driving double-digit revenue growth.
Zurich in August posted a 25 per cent increase in its first-half operating profit, that saw the firm record its second highest business operating profit ever and its highest since 2008.
The Swiss firm’s strong results came as insurers have faced a series of major losses over the past two years, arising from Covid, natural catastrophes, and Russia’s invasion of Ukraine.
Zurich chief executive Mario Greco said the firm’s “successful strategy” has “consistently delivered” against the “backdrop of a global pandemic and its economic fallout, the growing impact of climate change and war in Ukraine.”
“Now, we plan to further accelerate our strategy to build a clear leadership position in the insurance industry,” Greco said.