Zurich releases new targets to grow profit and earnings

The group recently reported a bump in gross written premiums for P&C

Zurich releases new targets to grow profit and earnings

Insurance News

By Alicja Grzadkowska

Zurich Insurance has revealed new targets to increase operating profit and earnings per share in the coming three years, said a statement that the group released in advance of its investor day.

Those targets include a business operating profit after tax return on equity (BOPAT ROE) in excess of 14% and counting, according to a Reuters report, which is a bump up from its current target of 12%. Its organic earnings per share growth is now set at 5% or more annually. Meanwhile in the first half of 2019, BOPAT ROE came in at 15%.

The insurance group also said it would be delivering continued high levels of cash remittances, added the report. Expectations are that these will top US$11.5 billion over three years. Its pay-out ratio will stay on the same target of 75% of net income attributable to shareholders, which is aligned with the company’s current dividend policy.

Last week, the insurer reported that property and casualty gross written premiums increased 2% in the first nine months of 2019, and that it expected to exceed the financial targets set in 2016.

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