Investor Day: Zurich progressing towards its 2013 targets
Zurich - Zurich Insurance Group’s (Zurich) senior management will provide updates on its three business segments - General Insurance, Global Life and Farmers - as well as on Capital Management and its Latin America business at today’s Investor Day.
Martin Senn, CEO of Zurich, says, “Our targets for 2013 remain unchanged and we are making good progress to achieve them. These are very ambitious targets given that the environment in which we are operating has become even more challenging in 2012. Yet, the execution of our strategy and our focus on our core insurance business is delivering strong growth and improved underlying profitability. We maintain strong momentum in our target emerging markets and we are also delivering growth in select mature markets. Zurich continues to maintain a strong capital position and generate healthy cash flows, and that gives me great confidence that we will be able to maintain our policy of paying an attractive and sustainable dividend.”
On the targets
Strategic business operating profit after tax return on equity of 16 percent
Zurich maintains its strategic ambition to achieve a business operating profit after tax return on equity of 16 percent over the long term. It believes that this reflects the true earnings potential of its business. But as said last year, in the current environment achieving a return of around 2 percentage points below that is more realistic.
Zurich is on track to reduce run-rate costs in mature markets by USD 500 million by the end of 2013 which are redeployed to strengthen its presence in its growth markets. Expenses have been cut by USD 200 million to date and significant additional efficiencies are expected to come through from actions taken in 2012 and in previous years.
Target: Improve combined ratio by 3-4 percentage points relative to global competitors and hold market position
• Zurich’s underlying loss ratio at the nine months 2012 is 2.8 percentage points better than a year ago and improved 4.7 percentage points since 2010.
• General Insurance continued to grow its percentage of gross written premiums from International Markets and delivered strong growth particularly in North America.
Target: Rank Top 5 of European-based global peers by New Business Value
• Zurich is already ranked fourth in its peer group by New Business Value, up from seventh in 2010.
• Global Life is also on track to achieve its target of 30 % New Business Value from Latin America and Asia-Pacific and Middle East. With the addition of the business from Zurich Santander this value is already at 41%.
Target: Maintain top tier market share growth in U.S. Personal Lines
• Farmers continues its growth momentum through rate actions and improved retention.
Note to Editors:
Zurich’s Investor Day will be chaired by CEO Martin Senn. The event will start at 09.45 hrs. and will last until about 16.30 hrs. CET.
The morning session will include presentations by the CEOs of the General Insurance and Global Life segments with updates on progress towards Zurich’s 2013 targets. In addition, CFO Pierre Wauthier will provide an update on capital, cash flow and the efficiency program. Global Life will provide further insights into the business cash flows. In the afternoon, the CEO of Farmers will give an up-date on this segment, followed by the management team from Latin America who will present the opportunities in this dynamic region.
While the target audience for the event are analysts and investors, reporters interested in the topics are cordially invited to listen in by telephone or to follow the event via webcast on our website www.zurich.com.
The event will be held in English. The presentation will be available from 09.30 hrs. CET under the following link.
If you would like to follow the conference via conference call, please dial in to register approximately 5 minutes prior to the start of the event session.
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Zurich Insurance Group (Zurich) is a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets. It offers a wide range of general insurance and life insurance products and services for individuals, small businesses, mid-sized and large companies as well as multinational corporations. Zurich employs about 60,000 people serving customers in more than 170 countries. The Group, formerly known as Zurich Financial Services Group, is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt program which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.
Disclaimer & Cautionary Statement
Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the Group). Forward-looking statements include statements regarding the Group’s targeted profit, return on equity targets, expenses, pricing conditions, dividend policy and underwriting and claims results, as well as statements regarding the Group’s understanding of general economic, financial and insurance market conditions and expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and plans and objectives of Zurich Insurance Group Ltd or the Group to differ materially from those expressed or implied in the forward-looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in key markets; (ii) the risk of a global economic downturn; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity experience; (vii) policy renewal and lapse rates; and (viii) changes in laws and regulations and in the policies of regulators may have a direct bearing on the results of operations of Zurich Insurance Group Ltd and its Group and on whether the targets will be achieved. Zurich Insurance Group Ltd undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.
All references to ’Farmers Exchanges’ mean Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and their subsidiaries and affiliates. The three Exchanges are California domiciled interinsurance exchanges owned by their policyholders with governance oversight by their Boards of Governors. Farmers Group, Inc. and its subsidiaries are appointed as the attorneys-in-fact for the Farmers Exchanges and in that capacity provide certain non-claims administrative and management services to the Farmers Exchanges. Neither Farmers Group, Inc., nor its parent companies, Zurich Insurance Company Ltd and Zurich Insurance Group Ltd, have any ownership interest in the Farmers Exchanges. Financial information about the Farmers Exchanges is proprietary to the Farmers Exchanges, but is provided to support an understanding of the performance of Farmers Group, Inc. and Farmers Reinsurance Company.
It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of full year results. Persons requiring advice should consult an independent advisor.
This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction.
This Communication Does Not Contain An Offer Of Securities For Sale In The United States; Securities May Not Be Offered Or Sold In The United States Absent Registration Or Exemption From Registration, And Any Public Offering Of Securities To Be Made In The United States Will Be Made By Means Of A Prospectus That May Be Obtained From The Issuer And That Will Contain Detailed Information About The Company And Management, As Well As Financial Statements.
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