Zurich Insurance boosts ambitions with new financial targets

ZURICH/LONDON, Nov 16 (Reuters) – Zurich Insurance Group (ZURN.S) aims to boost its business operating profit after tax return on equity (BOPAT ROE) to above 20% by 2025 and generate compound organic growth in earnings per share of 8% per year in new 2023-2025 targets it unveiled on Wednesday.

Europe’s fifth-largest insurer also aims for cumulative cash remittances in excess of $13.5 billion and a Swiss Solvency Test (SST) ratio of at least 160%.

Zurich maintained its dividend policy, which targets a pay-out ratio of around 75% of net income attributable to shareholders, it said ahead of an investor day.

The insurer beat its previous three-year targets and its new BOPAT ROE target of above 20% is far higher than its previous target of above 14%.

However, the latest targets were set with reference to new international accounting standard for insurers IFRS 17, which is expected to boost return on equity.

“After two successful strategic cycles, we have already achieved much, but our ambition does not end here,” CEO Mario Greco said in a statement.

“We plan to further accelerate our strategy to build a clear leadership position in the insurance industry.”

Reporting by Michael Shields and Carolyn Cohn, Editing by Miranda Murray

Our Standards: The Thomson Reuters Trust Principles.