Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ZURICH INSURANCE GROUP AG. We currently have 14 research reports from 2 professional analysts.
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ZURICH INSURANCE GROUP AG
ZURICH INSURANCE GROUP AG
Strong improved net profit as expected
09 Feb 17
Preliminary pre-tax result increased from a loss of $85m for Q4 15 to a profit of $1.2bn for Q4 16. Tax expense was $315m for Q4 15 compared to $474m for Q4 16. The net result attributable to shareholders rose therefore from a loss of $424m for Q4 15 to a profit of $685m for Q4 16. Net income attributable to shareholders jumped by 74% to $3.2bn for FY2016 compared to FY2015. Gross written premiums declined slightly by 0.6% to $48.2bn for 2016 compared to 2015. The net investment income on group investments decreased by 1.5% to $5.5bn for 2016 and net capital gains on investments declined by 30% to $0.7bn for 2016 compared to 2015. RoI was 3.7% in 2016 compared to 3.8% for 2015. Net revenues increased by 11% to $66.5bn in the same period. Total expenses were up by 10% to $60.5bn in 2016. Pre-tax profit rose by 59% to $5.3bn for 2016 compared to 2015. Shareholders’ equity was down by 2% to $30.7bn at the end of December 2016 compared to the end of 2015. RoE after tax was 11.8% for 2016 compared to 6.4% for 2015. The dividend per share proposal for FY2016 remains unchanged at CHF17 per share. Management confirmed its 2019 financial targets.
New payout ratio target of 75%
17 Nov 16
Today is Investor Day 2016. Zurich released therefore new targets for the three years 2017 to 2019: • A business operating profit after tax return on equity (BOPAT ROE) in excess of 12% from 2017, growing over the period. • $1.5bn in net savings by 2019 compared to the 2015 baseline. • Cash remittances in excess of $9.5bn. • A Zurich Economic Capital Model (Z-ECM) ratio of 100% – 120%, unchanged from the previous financial targets. • A new dividend policy with a target payout ratio of around 75% of net income after tax attributable to shareholders (NIAS). A dividend proposal to shareholders of CHF17 a share will be maintained while growing towards the target payout range.
Recovered Q3 net profit beats expectations
10 Nov 16
Net income attributable to shareholders made a jump to $912m for Q3 16 compared to $207m for Q3 15. Gross written premiums were down by 4% to $11.1bn for Q3 16 compared to the same period last year. The net investment result on group investments rose by 3% to $1.7bn for Q3 16. Insurance claims declined by 10% to $7.85bn in Q3 16. Pre-tax profit more than tripled from $453m for Q3 15 to $1.52bn for Q3 16. The tax ratio was down from 39% for Q3 15 to 35% for Q3 16. Net income attributable to shareholders increased by 11.5% to $2.53bn for 9M 16 compared to 9M 15. The non-life combined ratio improved from 101.9% for 9M 15 to 98.4% for 9M 16. Shareholders’ equity increased by 4% at the end of September 2016 versus end 2015. The Swiss Solvency ratio was 189% at 1 January 2016.
Recovered Q2 net profit beats expectations
11 Aug 16
Net income attributable to shareholders decreased by 12% to $739m for Q2 16 compared to Q2 15. Gross written premiums were up by 10% to $13.0bn for Q2 16 compared to the same period last year. The net investment result on group investments rose by 2% to $1.9bn for Q2 16, a RoI of 1.0% (not annualised) after 0.9% for Q2 15. Insurance claims were up by 47% to $8.1bn in Q2 16. Pre-tax profit rose by 16% to $1.27bn for Q2 16 compared to the same period last year. The tax ratio was up from 17% for Q2 15 to 34% for Q2 16. The non-life combined ratio was stable at 98.4% for H1 16 compared to H1 15. Shareholders’ equity increased by 1% at the end of June 2016 versus end 2015. RoE was 11.1% for Q2 16 compared to 12.0% for Q2 15. The Swiss Solvency ratio was 189% at 1 January 2016.
Mario Greco reshapes management and structure
10 Jun 16
Zurich announced today that it “has begun a process to reshape and simplify the Group to create a framework for enhanced future success. Over the coming months, the business will move to a simpler, more customer-oriented structure, reducing complexity, creating greater accountability and empowering teams to deliver products and services in a differentiated way. The new structure is the acceleration and globalization of work already underway in key markets like Switzerland, Germany and Italy, combining life and non-life under one leadership team and applying a unified go-to-market approach. Decisive action on reshaping the business over the coming months will create the platform on which Zurich will build its longer-term profitability strategy.” “Zurich will be organized in a customer-oriented structure in which the heads of regions (North America; Europe, Middle East and Africa; Latin America; Asia Pacific), Global Corporate, Farmers and Investment Management will report to the Group CEO. Zurich is also creating the new role of Chief Operating Officer. The new responsibility will also enhance our ability to manage costs throughout the whole organization.” The executive committee of Zurich is going to decrease from 11 to 8 members from July 2016 onwards.
N+1 Singer - Uncovered Gems - Speed Dating Lunch - A Famous Five for the future?
12 Apr 17
On Friday we hosted our third “speed dating” lunch with the management of five very interesting and contrasting companies not under our formal coverage: Be Heard, Byotrol, Gfinity, Oxehealth and Plant Impact. Each company gave a concise and punchy overview of its business and investment case to a group of fund managers, before rapid fire Q&A. Below we summarise our thoughts on each company with more details inside the note, plus some relevant slides. We believe that all five companies are well-managed and well worth a closer look - we intend to repeat this efficient and popular format for engaging with management teams.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
24 Apr 17
Lok’nStore* (LOK): Growth supported by a strong balance sheet (CORP) | Mortice* (MORT): UK acquisition (CORP) | Avacta* (AVCT): Another milestone – 1st non-therapeutics licence (CORP) | Petra Diamonds (PDF): Trading update and Q3 results (BUY) | Nasstar* (NASA): Growth and margin focus (CORP)
Small Cap Breakfast
24 Apr 17
Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April on AIM raising £122m. ADES International Holding— Intends to join the Standard List of the Main Market in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
Mining the cash
20 Apr 17
The global metals and mining industry is not out of the woods yet. Previously burned investors are not rushing to buy the sector, and sentiment remains subdued. Meanwhile, we think it could be sensible to dip one’s toes in the water at these levels. BRWM has a sizable yield of nearly 4%, albeit a bit lower than a few months ago, as the sector rerated upwards during 2016. In our opinion, the trust offers exposure to skillfully picked global metals and mining businesses, and pays decent dividend which has potential to increase in the next few years. We take comfort in better revenue generation prospects for the fund. While in the past two years BRWM had to pay part of its dividends out of reserves, this year we expect higher income to be sufficient to cover the dividend payment.