Zurich Insurance boosts ambition with new financial targets

ZURICH/LONDON, Nov 16 (Reuters) – Zurich Insurance Group (ZURN.S) has set a new 2023-2025 target of increasing business operating profit after tax return on equity (BOPAT ROE) to more than 20% by 2025, with 8% compounded organic growth per share per year. aims to produce announced on wednesday.

Europe’s fifth largest insurer also targets cumulative cash transfers of over $13.5 billion and a Swiss Solvency Test (SST) ratio of at least 160%.

Zurich said ahead of Investor Day that it will maintain a dividend policy targeting a payout ratio of about 75% of net income attributable to shareholders.

The insurer has exceeded its previous three-year target, with its new BOPAT ROE target of over 20% well above its previous target of 14%.

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

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

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

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

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