Zurich Insurance Group AG (ZURN.SW) | Investment Case

1. Company Snapshot

1.a. Company Description

Zurich Insurance Group AG, together with its subsidiaries, provides insurance products and related services in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific.The company operates through Property & Casualty Regions, Life Regions, Farmers, Group Functions and Operations, and Non-Core Businesses segments.It offers car, home, travel, general liability, life and critical illness, worker injury, and other insurance products; and saving and investment, and pension and retirement planning products.

The company also provides property, casualty, management or professional liability, trade credit, political risk, marine, cyber risk, and financial institution insurance products.In addition, it offers employee benefit insurance products; reinsurance services; and non-claims and ancillary services to the farmers' exchanges.It serves individuals, small businesses, and mid-sized and large companies, as well as multinational corporations.

The company sells its products through agents, brokers, and bank distribution channels.Zurich Insurance Group AG was founded in 1872 and is based in Zurich, Switzerland.

Show Full description

1.b. Last Insights on ZURN

Zurich Insurance Group AG's recent performance was driven by a 5% increase in group profit to $7.8 billion, with strong performance across life and property segments. The company's business operations profit (BOP) also increased, reaching $7.7 billion in 2024, a 5% increase from $7.3 billion in 2023. Zurich's operating profit of $7.8 billion for 2024 was slightly higher than analysts' estimates. The company's strategic focus on growth opportunities and its ability to navigate climate disasters and wars have contributed to its strong performance. Additionally, Zurich's investment in digital insurer Ominimo and its joint launch of motor insurance products in Poland with DA Direkt will further drive growth.

1.c. Company Highlights

Last Price	575.4
Change Percentage	0.31%
Open	576.4
Previous Close	573.6
Market Cap ( Millions)	81871
Volume	186209
Year High	625.2
Year Low	519.6
M A 50	568.3
M A 200	573.56

FCF Yield	6.31%
Dividend Yield	4.87%
ROE	23.32%
Debt / Equity	57.95%
Net Debt / EBIDTA	0.00%
Price To Book	4.15
Price Earnings Ratio	17.55
Price To FCF	15.85
Price To sales	1.46
EV / EBITDA	0

2. Zurich Insurance Group's Strong 9-Month Performance

Zurich Insurance Group delivered a robust financial performance for the first 9 months of 2025, with gross written premiums in Property & Casualty rising 8% year-on-year to $38.9 billion. The company's earnings per share (EPS) came in at $18.33, beating analyst estimates of $17.11. The combined ratio improved approximately 2 points year-over-year, driven by significant improvements in the motor book and German retail business. The Life business also delivered profitable growth, with gross written premiums up 11% to $26.8 billion and fee revenues increasing by 17%.

Publication Date: Nov -08

                                    📋 Highlights
                                    Record P&C Growth:
                                                Property & Casualty gross written premiums hit $38.9B, up 8% YoY with retail growth at 16% YoY (7% like-for-like).
Commercial Profitability Expansion:
                                                Commercial Insurance grows profitably with a $9B global specialty unit; North America rates up 2% vs. EMEA -0.8%.
Life Business Momentum:
                                                Gross written premiums rose 11% to $26.8B, fee revenues +17%, and new business margins at 6% (accelerating Q3).
Strong Capital Position:
                                                SST ratio remains robust at 257%, supported by $1.5B in profit and investment gains, with $22.6B Farmers Exchanges surplus at 50.9%.
Construction & Infrastructure Leadership:
                                                A $100M+ growing line (10% YoY) with specialized underwriters in data centers and infrastructure projects globally.

                                

Business Segment Performance

The Commercial Insurance business continues to grow profitably, driven by superior risk selection and a focus on global specialties and middle market units. A dedicated global specialty unit is being established to drive expansion of the $9 billion portfolio. Farmers Exchanges saw gross written premiums advance 5% to $22.6 billion, with a significant transition to underlying growth and an exceptionally healthy surplus ratio of 50.9%. As Mario Greco stated, the company's construction and infrastructure line of business is a significant growth area, with hundreds of specialized underwriters and risk engineers worldwide.

Underwriting Profitability and Capital Strength

The company's combined ratio improvement is visible, even after catastrophes, and Zurich is not planning any "window dressing" by year-end. The Solvency Swiss Solvency Test (SST) ratio remains strong at 257% as of September 30, reflecting profit generated in the period and positive financial market performance. The company's diversified business model, disciplined underwriting, and capital strength position it well for future growth opportunities.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 4.09 and a Dividend Yield of 4.94%, Zurich Insurance Group's valuation appears reasonable. Analysts estimate next year's revenue growth at 7.5%. The company's strong financial resilience and high cash conversion profile position it well to execute its 3-year targets. The company's focus on middle market and specialty lines is expected to have a positive impact on the expense ratio and business growth.

3. NewsRoom

Zurich U.S. Extend 30-Year Collaboration with Insurity, Advancing Cloud-based Policy Administration and Bureau Managed Services

Dec -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.20%)

6. Segments

Property & Casualty - North America

Expected Growth: 4.5%

Zurich Insurance Group AG’s growth is driven by increasing demand for insurance products, expansion into emerging markets, and strategic acquisitions, leading to a forecasted growth rate of 4.5%.

Property & Casualty - Europe, Middle East & Africa

Expected Growth: 3.5%

Zurich's Property & Casualty insurance business in Europe, Middle East and Africa is expected to grow driven by increasing demand for cyber insurance, rising adoption of digital channels among customers, and expansion into emerging markets.

Property & Casualty - Asia Pacific

Expected Growth: 4.5%

Zurich Insurance Group’s growth is driven by its diversified business portfolio, strong brand recognition, and strategic expansion in emerging markets, particularly in Asia.

Property & Casualty - Latin America

Expected Growth: 7.3%

Latin America's growing middle class, increasing vehicle sales, and government investments in infrastructure are driving growth in motor and property insurance. Additionally, the region's economic expansion is fueling demand for liability coverage among businesses.

Life - Europe, Middle East & Africa

Expected Growth: 4.3%

Zurich Insurance Group’s personal and commercial insurance products are expected to grow driven by increasing demand for risk management solutions in Europe, Middle East, and Africa, coupled with the company’s strong brand reputation and expanding digital capabilities.

Life - Latin America

Expected Growth: 4.5%

Zurich Insurance Group’s growth is driven by its strong brand reputation, diversified product offerings, and expanding presence in emerging markets, particularly in Latin America and Asia, where demand for insurance products is increasing.

Life - Asia Pacific

Expected Growth: 4.8%

Zurich Insurance Group’s growth is driven by its strong brand recognition, diversified product offerings, and strategic acquisitions. The company’s focus on digital transformation and expansion in emerging markets will further boost its growth.

Life - North America

Expected Growth: 4.5%

Zurich's North American life insurance business growth through its protection and investment products, driven by increasing demand for retirement and life insurance products, a growing middle class, and strategic partnerships.

Farmers

Expected Growth: 3.2%

Zurich Insurance Group’s growth is driven by increasing demand for digital insurance solutions, expansion into emerging markets, and strategic acquisitions, which will drive a forecast CAGR of 3.2%.

Property & Casualty - Group Reinsurance

Expected Growth: 5.5%

Zurich Insurance Group’s reinsurance solutions enable groups to manage risk and achieve business objectives, driving growth through increased demand for risk management and expanding business operations.

Group Functions and Operations

Expected Growth: 4.5%

Zurich Insurance Group AG's Group Functions and Operations segment is expected to grow, driven by increasing demand for corporate functions and operational services, cost savings initiatives, and the company's ongoing digital transformation efforts.

Non-Core Businesses

Expected Growth: 2.5%

Zurich’s Non-Core Businesses segment is expected to decline due to the company’s strategy to divest and exit non-core activities, leading to a reduction in premiums and revenue.

Life - Group Reinsurance

Expected Growth: 4.2%

Zurich Insurance Group’s reinsurance solutions benefit from increasing demand for group life insurance, driven by rising employee benefits and pension plans, particularly in emerging markets.

Eliminations

Expected Growth: 4.5%

Intercompany transactions and adjustments drive growth, fueled by Zurich Insurance Group’s diversification strategy and increasing demand for insurance products.

7. Detailed Products

Life Insurance

Provides financial protection to beneficiaries in the event of death, and can also provide a savings component to help achieve long-term financial goals.

General Insurance

Covers individuals and businesses against various types of risks, including property damage, liability, and business interruption.

Investments

Offers a range of investment products, including mutual funds, exchange-traded funds, and variable life insurance, to help individuals and institutions achieve their investment goals.

Risk Management

Provides risk assessment, mitigation, and management services to help businesses identify and manage risks, and implement effective risk management strategies.

Employee Benefits

Offers a range of employee benefits, including group life, disability, and health insurance, to help employers attract and retain top talent.

Reinsurance

Provides reinsurance solutions to help insurers and reinsurers manage their risk exposure, improve capital efficiency, and enhance their financial performance.

8. Zurich Insurance Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Zurich Insurance Group AG operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and diversified product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Zurich Insurance Group AG has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified product offerings and strong brand reputation reduce the customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Zurich Insurance Group AG has a diversified supply chain, which reduces the bargaining power of individual suppliers. The company's strong financial position and large scale of operations also give it negotiating power over its suppliers.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory hurdles and the need for significant capital investments. This limits the threat of new entrants and gives Zurich Insurance Group AG a competitive advantage.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. Zurich Insurance Group AG faces intense competition from other insurance companies, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	38.34%
Debt Cost	4.04%
Equity Weight	61.66%
Equity Cost	6.77%
WACC	5.72%
Leverage	62.17%

11. Quality Control: Zurich Insurance Group AG passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Allianz

A-Score: 7.4/10

Value: 7.0

Growth: 4.9

Quality: 7.5

Yield: 8.1

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

Generali

A-Score: 7.1/10

Value: 7.7

Growth: 2.8

Quality: 6.1

Yield: 8.8

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

Zurich Insurance

A-Score: 6.7/10

Value: 3.4

Growth: 4.6

Quality: 7.6

Yield: 8.1

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

Talanx

A-Score: 6.7/10

Value: 7.3

Growth: 3.4

Quality: 7.0

Yield: 5.6

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

AXA

A-Score: 6.6/10

Value: 5.9

Growth: 3.9

Quality: 5.5

Yield: 9.4

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

Swiss Life Holding

A-Score: 5.8/10

Value: 2.2

Growth: 2.2

Quality: 5.9

Yield: 7.5

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.40%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.72%

Zurich Insurance Group AG - CH0011075394

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ZURN

1.c. Company Highlights

Less Volatile

Average Yield

Stable Momentum

Earnings Miss

Average Quality

Average Growth

Earnings Beats

Higher Yield

Fairly Valued

Revenues Beats

Expensive

Revenues Miss

2. Zurich Insurance Group's Strong 9-Month Performance

Business Segment Performance

Underwriting Profitability and Capital Strength

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.20%)

6. Segments

Property & Casualty - North America

Expected Growth: 4.5%

Property & Casualty - Europe, Middle East & Africa

Expected Growth: 3.5%

Property & Casualty - Asia Pacific

Expected Growth: 4.5%

Property & Casualty - Latin America

Expected Growth: 7.3%

Life - Europe, Middle East & Africa

Expected Growth: 4.3%

Life - Latin America

Expected Growth: 4.5%

Life - Asia Pacific

Expected Growth: 4.8%

Life - North America

Expected Growth: 4.5%

Farmers

Expected Growth: 3.2%

Property & Casualty - Group Reinsurance

Expected Growth: 5.5%

Group Functions and Operations

Expected Growth: 4.5%

Non-Core Businesses

Expected Growth: 2.5%

Life - Group Reinsurance

Expected Growth: 4.2%

Eliminations

Expected Growth: 4.5%

7. Detailed Products

Life Insurance

General Insurance

Investments

Risk Management

Employee Benefits

Reinsurance

8. Zurich Insurance Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Zurich Insurance Group AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.e Scoring ^Insights

12.f DCF ^BETA