Upbeat Zurich Insurance coverage lands highest revenue since monetary disaster


  • Working revenue $5.7 bln
  • Curiosity in German life again books -CEO
  • Shares little modified

LONDON, Feb 10 (Reuters) – Zurich Insurance coverage (ZURN.S) expects continued income and revenue progress within the subsequent two years, its chief monetary officer mentioned on Thursday, after the Swiss insurer reported its largest annual revenue for the reason that monetary disaster.

Insurers had been gloomy in regards to the outlook when the pandemic took maintain in early 2020, however have remained worthwhile after excluding COVID-19 from many insurance policies and elevating premiums.

Zurich, Europe’s fifth-largest insurer, reported an above-forecast 35% enhance in 2021 working revenue to $5.7 billion, its highest degree since 2007, helped by a powerful exhibiting from its industrial enterprise and decrease COVID-19 claims.

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Working revenue was forecast at $5.5 billion, a company-compiled consensus forecast confirmed.

“You see progress in each income and earnings. It’ll proceed by 2022 and I anticipate at this stage it can proceed no less than in 2023.”,” CFO George Quinn mentioned on a name with reporters after Zurich mentioned it anticipated to satisfy or exceed its 2022 monetary targets.

Zurich’s shares had been little modified at 0905 GMT versus a 0.33% rise in European insurance coverage shares (.SXIP). Vontobel mentioned it retained its “maintain” suggestion on the inventory, given “elevated valuation multiples versus European and U.S. friends”.

The insurer set out three-year targets in November 2019, together with elevating its goal for enterprise working revenue after tax return on fairness to greater than 14% from the earlier objective of greater than 12%. Return on fairness got here in at 14% for 2021.

Zurich plans to promote extra books of life insurance coverage that are closed to new prospects, after it mentioned final month it could launch about $1.2 billion of capital by promoting its Italian life and pensions again e book to Portugal’s GamaLife. learn extra

Zurich has already had curiosity in a few of its German closed life books, however was not but at ultimate supply stage, chief govt Mario Greco instructed Reuters, including {that a} deal would take some months to finish however could be “a lot larger” than the Italian sale.

Zurich proposed a dividend of twenty-two Swiss francs per share, an increase of 10% on the earlier yr.

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Reporting by Carolyn Cohn; Enhancing by Michael Shields, Carmel Crimmins and Alexander Smith

Our Requirements: The Thomson Reuters Belief Ideas.

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