These are the ambitious targets that Zurich released ahead of its investor meeting on Wednesday. The group now wants to reach values of 20 percent or more in the next three years, with return on equity calculated according to operating profit (BOP). For comparison: This target is at least 14 percent in the terminated program.
On the basis of this, margins in property and casualty insurance will be improved, profits in life insurance will be further increased and costs will be kept under control. In addition, US partner Farmers served by Zurich should continue to grow in the mid-single-digit percentage range according to plans.
Based on this, Zurich expects higher profits. It has set itself the target of increasing its earnings per share by 8 percent annually and organically by 2025. Here, a target value of at least 5 percent was previously applied.
An anchor in the new strategy era remains an attractive dividend policy for investors. Therefore, about 75 percent of the relevant annual profit should flow to shareholders in the future in the form of dividends. The corresponding payment will be at least as high as the previous year.
CEO Mario Greco said in a statement that Zurich has already achieved a lot with its last two successful strategy cycles, but the ambition does not end there. “We intend to further accelerate the implementation of our strategy to establish a clear leadership position in the insurance industry.” Issues such as customer experience, business simplification and innovations are important.
(SDA)