• Net income attributable to shareholders decreased by 8% to $3.8bn for FY2020, above consensus expectations of $2.9bn.
• No additional COVID-19-related claims in H2 20.
• RoE after tax was 13.0% for 2020 compared to 14.4% for 2019.
• Unchanged DPS proposal of CHF20 for FY2020.
Companies: Zurich Insurance Group Ltd
• Zurich subsidiary Farmers Group (FGI) and Farmers Exchanges have agreed to acquire MetLife’s US property and casualty business for $3.9bn.
• Farmers’ gross written premiums should increase by around 18% pro forma by the acquisition.
• The expected Zurich P&L impact of the acquisition from year 3 onwards is a BOP of around $260m p.a.
• Net income attributable to shareholders decreased by 42% to $1.2bn for H1 20
• Estimated COVID-19 claims for FY2020 of $750m for P&C business were fully booked in H1
• The non-life combined ratio rose from 95.1% for H1 19 to 99.8% for H1 20
• RoE was 8.1% for H1 20 compared to 14.2% for H1 19
• Net income attributable to shareholders increased by 12% to $4.15bn for FY2019.
• The non-life combined ratio fell from 97.8% for 2018 to 96.4% for 2019.
• RoE after tax was 14.4% for 2019 compared to 13.1% for 2018.
• The company exceeded all 2017 to 2019 targets.
• Net income attributable to shareholders increased by 14% to $2.04bn for H1 19
• The non-life combined ratio fell from 97.5% for H1 18 to 95.1% for H1 19
• RoE was 14.2% for H1 19 compared to 12.5% for H1 18
• Company is set to exceed all 2017 to 2019 targets
Preliminary net income attributable to shareholders increased by 24% to $3.72bn for FY2018 compared to FY2017. Gross written premiums rose by 1% to $47bn for 2018 compared to 2017. The net investment result on group investments decreased by 13% to $6.3bn for 2018 compared to 2017. RoI was 3.3% for 2018 compared to 3.8% in 2017. Net revenues declined by 26% to $47.2bn in the same period. Insurance claims and losses declined by 3.5% to $27.65bn for 2018. Total expenses were down by 28.5% to $42.1b
Net income attributable to shareholders increased by 19% to $1.79bn for H1 18 compared to H1 17. Gross written premiums were up by 3% to $25.9bn for H1 18 compared to the same period last year. The net investment result on group investments rose by 1.5% to $3.14bn for H1 18, an unchanged RoI of 1.6% (not annualised) for H1 18 compared to H1 17. Net investment result on unit-linked investments decreased by 70% to $1.75bn for H1 18 compared to H1 17. Total revenues declined by 11% to $27.6bn in H1
Preliminary net income attributable to shareholders decreased by 6% to $3.0bn for FY2017 compared to FY2016. Gross written premiums declined by 3% to $46.7bn for 2017 compared to 2016. The net investment result on group investments increased by 3% to $7.25bn for 2017 compared to 2016. RoI was unchanged at 3.8% in 2017. Net revenues declined by 5% to $64bn in the same period. Total expenses were down by 5% to $58.8bn in 2017. Pre-tax profit decreased by 4% to $5.13bn for 2017 compared to 2016. Sh
Zurich announced that it has entered into an agreement to acquire 100% of ANZ’s (Australia and New Zealand Banking Group) life insurance businesses, OnePath Life, in Australia for $2.14bn. On a pro forma basis, the operations to be acquired reported net earned premiums for the 12 months ended 30 September 2017 of $1.1bn and a net profit after tax of $142m. The acquisition is expected to be funded through a mixture of Zurich’s internal cash resources and senior debt, and is expected to reduce Zur
Zurich reduced its Q1 reporting in the spring, but still released some important key figures, such as revenues, insurance claims, net income attributable to shareholders or shareholders’ equity for Q1 17 by supplements. But it has not released this information for Q3 17. The only useful information to us was the repetition of the profit warning given in October that “aggregate claims in the third quarter of 2017 related to hurricanes Harvey, Irma and Maria, for the Group’s Property & Casualty bu
We have updated our 2017e earnings forecast to allow for a preliminary estimate for around USD1bn combined losses in the US hurricane season. However, we expect market capacity to continue to put pressure on pricing overall. On valuation, we downgrade shares from Hold to Underperform
Net income attributable to shareholders increased by 21% to $896m for Q2 17 compared to Q2 16. Gross written premiums were down by 5% to $12.35bn for Q2 17 compared to the same period last year. The net investment result on group investments declined by 18% to $1.47bn for Q2 17, a RoI of 0.7% (not annualised) after 0.8% for Q2 16. Insurance claims were down by 17% to $6.7bn in Q2 17. Pre-tax profit rose by 15% to $1.46bn for Q2 17 compared to the same period last year. The tax ratio was 35.5% fo
We upgrade our rating on Zurich Insurance from Underperform to Hold, with a modest increase in forecast earnings and valuation seeing some value come back to the shares. Reserving outlook is more reassuring but is coming at the expense of premium growth in commercial lines.
Net income attributable to shareholders decreased by 31% to $607m for Q1 17 compared to Q1 16. Gross written premiums were unchanged at $12.8bn for Q1 17 compared to the same period last year. The net investment result on group investments declined by 4% to $1.45bn for Q1 17, a RoI of 0.8% (not annualised) after 0.9% for Q1 16. Insurance claims were down by 4% to $7.25bn in Q1 17. The non-life combined ratio rose from 97.7% for Q1 16 to 100.7% for Q1 17 due to the change in the Ogden rate in the
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
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What’s new: Updates in April and early May reveal:
Group consolidated Funds Under Management “FuM” of US$11.3bn at the end of April 2021 is up 4.0% year to date (Dec20: US$10.9bn).
Strong investment performance across CLIG’s investment strategies, was offset by clients rebalancing, resulting in 3Q net outflow of US$278m.
CLIG continues to maintain an active pipeline across all its major products.
Income net of third-party commissions currently accrues at circa 74 bps (i.e. c. 73 bps
Companies: City of London Investment Group PLC
Forecast beating Final Results
Companies: Palace Capital plc
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
Avation is a lessor of 45 aircraft to a diversified airline client base of 19 commercial airlines across 15 countries. This morning, the group has provided a solid trading update to 31 March 2021, which points to a continued focus on managing the collection of customer revenue, with rent collections and overall cashflow having improved since the end of H1 2021. The remarketing of the eight returned ATR aircraft has also continued, while net debt reduced by $51.6m in Q3 FY 2021E to $988.1m, with
Companies: Avation PLC
HgCapital Trust (HGT) posted a strong NAV TR of 8.4% in Q121, driven primarily by double-digit earnings growth across the portfolio (LTM EBITDA for top 20 holdings up 30% y-o-y). After record-high transaction volumes in FY20 (investments at £403m and realisations at £364m), HGT has maintained a high transaction activity to date in 2021 (£147m and £112m, respectively). Its coverage ratio was a healthy 69% at 12 May 2021, supported by tap equity issues, which totalled c £50m to 8 June 2021 (versus
Companies: Hgcapital Trust
Hipgnosis Songs Fund (SONG LN) has today released a trading update and published an unaudited NAV of $1.6829 (122.5p) as at 31 March 2021 vs $1.5114 (116.7p) as at 31 March 2020. This is an increase of 11.3% (in US$ terms – to which the company changed its reporting currency back in October 2020), and a TR of 15.7%, giving a TR of 40.7% since inception in July 2018. The growth in the “Operative NAV” is 9.4% on like-for-like uplift in fair value catalogues which has been driven various factors: t
Companies: Hipgnosis Songs Fund Limited Shs GBP
Liontrust has delivered exceptional growth and there is much to be optimistic about, yet it continues to trade on an unexceptional 14x Mar-22e PER. We are expecting no surprises at Finals later this month after a post-period update in late May and supportive markets since. There is opportunity across the fund range (including the established Sustainable strategy) with continuing growth from flows and performance, and potential in recent acquisitions; set against compelling market dynamics. Liont
Companies: Liontrust Asset Management PLC
Today's news & views, plus announcements from SSPG, PNL, SHED, TUNG, ANX, BLTG, AVAP
Trident reports that Moxico Resources Plc has recently completed a US$73m equity financing. The proceeds will be used to fast-track development of the Mimbula copper mine in Zambia over which Trident holds a royalty. Mimbula is already producing copper and is in the ramp up stage, but the cash injection will allow Moxico to produce cathode copper onsite via the construction of a new SX-EW plant and Moxico anticipates a significant increase in copper production. As a royalty holder, Trident will
Companies: Trident Royalties Plc
OCI hosted its annual Capital Markets (CM) day on 18 May 2021.With presentations from Oakley Capital and investee companies, as well as Q&A, including the OCI board, it gave a clear view of the prospects of the organisation. We have argued in previous notes that OCI’s outperformance (five-year CAGR NAV total return 16%) is driven by i) high-growth companies and sector champions enjoying structural tailwinds and often digital disruption benefits (2020 average 20% EBITDA growth), ii) repeatable an
Companies: Oakley Capital Investments
AVO’s goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly derisked the project. Now, AVO is working on the verification and validation phase, prior to LIGHT being used on the first patients to support CE marking. In its recent technical update, the company highlighted progress made over the past three months towards a ful
Companies: AVO ARBB ARIX BBGI CLIG DNL FLTA ICGT OCI PCA PIN RECI STX SPO SCE TRX VTA
Finsbury Growth & Income Trust (FGT) is managed by Nick Train, one of the founding partners of boutique investment firm Lindsell Train. He is optimistic on the current outlook for UK equities, all the more so given several years of relative underperformance; in particular, the manager believes that global investors are underestimating the level of technological innovation within the UK corporate sector. While FGT’s relative performance has lagged that of its peers and the UK market in recent mon
Companies: Finsbury Growth & Income Trust PLC
Urban Logistics REIT (“ULR”) has delivered a watershed year: doubling the portfolio with a disciplined approach focusing on value-add opportunity through reversion and regear. Finals show rental income doubling from acquired assets, with recurring EPS in line with our forecast. EPRA NAV was 6% ahead of N+1Se, as valuation yields tightened. The manager has secured a further c.£150m pipeline of similarly attractive assets. We make a modest upgrade to EPRA NAV on better valuation. We see sustained
Companies: Urban Logistics REIT plc
Trident Royalties Plc (AIM: TRR) has, this morning, noted progress at the Mimbula Copper Project, over which Trident holds a gross revenue royalty (GRR). Mimbula's owner and operator, Moxico Resources Plc, recently completed a US$73million equity financing which will be used to develop and build a standalone SX-EW plant. We have also updated our production assumptions for the Thacker Pass Lithium Royalty based on comments by Lithium Americas Corp. (NYSE/TSX:LAC) in their Q1 2021 results last mon
Belvoir has exchanged contracts to acquire The Nottingham Building Society’s mortgage services business for £0.6m in cash. In isolation this adds c.1% to our EPS forecasts in a full year but we believe it could pave the way for Belvoir to significantly increase its Financial Services sales as it provides direct access to a substantial source of clients with savings and a high likelihood of needing a mortgage for the first time (50,000 18-39 year old Lifetime ISA savers). We will look to reflect
Companies: Belvoir Group PLC