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Zurich Insurance Group Ltd (CH:ZURN)
:ZURN
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Zurich Insurance Group
(OTC:ZURN)
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Rating:78Outperform
Price Target:
CHF650.00
▲(17.46% Upside)
Zurich Insurance Group's strong financial performance and positive earnings call sentiment are the most significant factors contributing to its high score. The company's robust cash flow and profitability, coupled with a solid dividend yield, enhance its attractiveness. However, the technical analysis indicates some short-term bearish momentum, which slightly tempers the overall score.
Zurich Insurance Group (ZURN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
$78.51B
Dividend Yield5.06%
Average Volume (3M)217.16K
Price to Earnings (P/E)15.8
Beta (1Y)0.86
Revenue Growth-7.33%
EPS Growth17.93%
CountryCH
Employees60,000
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)18.22
Shares Outstanding146,355,760
10 Day Avg. Volume258,926
30 Day Avg. Volume217,162
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)3.35
Price to Sales (P/S)1.10
P/FCF Ratio11.78
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit1.36
Enterprise Value/Ebitda1.98
Forecast
1Y Price Target
$557.04Price Target Upside0.66% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering9
Zurich Insurance Group Business Overview & Revenue Model
Company DescriptionZurich 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.
How the Company Makes MoneyZurich Insurance Group generates revenue primarily through premiums collected from policyholders for its insurance products. The company operates on a model where it underwrites policies in exchange for these premiums, which provide a steady income stream. Additionally, Zurich earns money from investment income generated by investing the premiums it receives until claims are paid out, which is a significant revenue source for the company. Key revenue streams include general insurance (covering property, casualty, and liability), life insurance (including savings and protection products), and specialty insurance. The company also maintains strategic partnerships with various businesses and organizations to enhance its product offerings and reach, further contributing to its revenue. Other factors that influence earnings include economic conditions, regulatory environments, and claims experience.
Zurich Insurance Group Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong positive performance for Zurich, with record operating profits and ROE, alongside robust financial resilience. While there are some challenges, particularly in the liability market and expenses, the overall sentiment remains optimistic with significant growth in key areas.Q2-2025 Updates
Positive Updates
Record Operating Profit
Group business operating profit reached a record USD 4.2 billion, up 6% year-on-year, demonstrating the strength of Zurich's diversified portfolio.
Highest Ever Core ROE
Core return on equity (ROE) climbed to 26.3%, a 15 percentage point increase, indicating ongoing optimization of capital allocation.
Strong Financial Resilience
Zurich's financial resilience is underpinned by an SST ratio of 255% and high cash conversion, ensuring durable returns for investors.
Property & Casualty Success
Property & Casualty achieved an all-time high BOP of USD 2.4 billion, up 9% year-over-year, with a combined ratio improvement to 92.4%.
Life Division Growth
Life division sustained last year's record BOP of $1 billion, with gross written premiums up 14% and new business premiums up 20%.
Farmers' Best Half Year
Farmers delivered its strongest half year ever, with BOP up 4% to USD 1.2 billion, and the Farmers Exchanges returned to policy count growth in Q2.
Negative Updates
Challenges in Liability Market
Despite strong rate increases, the liability market is still not profitable enough, and Zurich is underwriting it with great discipline.
Higher Expenses in P&C
An increase in P&C expenses was noted, partly due to the AIG book and investments in commercial underwriting, impacting the expense ratio.
German Life Back Book Sale Uncertainty
Uncertainty remains around the German Life back book sale, with interest in the market but no clear resolution yet.
Company Guidance
In the first half of 2025, Zurich Insurance Group reported a record-breaking group business operating profit of USD 4.2 billion, marking a 6% increase year-on-year, and a highest-ever core return on equity (ROE) of 26.3%, reflecting a 15 percentage point rise. The company's financial resilience was highlighted by a Swiss Solvency Test (SST) ratio of 255% as of June, along with robust cash conversion capabilities. In the Property & Casualty segment, an all-time high business operating profit (BOP) of USD 2.4 billion was achieved, up 9% year-over-year, with the combined ratio improving by 1.2 percentage points to 92.4%. The Life segment sustained a BOP of USD 1 billion, a 4% underlying increase, with gross written premiums rising 14% and new business premiums up 20%. Meanwhile, Farmers reported its strongest half-year performance with a BOP increase of 4% to USD 1.2 billion and a combined ratio of 90.5%. Looking ahead, Zurich aims for a compounded annual growth rate of over 9% in core EPS from a 2024 baseline and a core ROE exceeding 23%, with cumulative cash remittances projected to surpass USD 19 billion by 2027.Zurich Insurance Group Financial Statement Overview
Summary
Zurich Insurance Group exhibits strong financial performance with consistent revenue and profit growth. The company maintains healthy cash flow and manageable leverage, though some operational efficiency concerns are highlighted by zero EBIT in the latest year. Overall, the financial health is solid, positioning the company well for future growth in the insurance industry.Income Statement
Zurich Insurance Group shows strong revenue growth with a 4.09% increase in Total Revenue from 2023 to 2024. The company maintains a healthy EBITDA Margin of 12.62% in 2024. The Net Profit Margin improved to 7.48% in 2024 from 5.83% in 2023, indicating enhanced profitability. Gross profit remains high, showcasing robust revenue generation capabilities. However, the EBIT margin is missing due to zero EBIT, which could raise concerns about operational efficiency.85
Very Positive
Balance Sheet
The company maintains a relatively stable financial position with a Debt-to-Equity Ratio of 0.57 in 2024, reflecting manageable leverage. The Return on Equity (ROE) improved to 22.83% in 2024, showcasing effective use of equity to generate profits. The Equity Ratio stands at 7.11%, which is low, indicating a high reliance on liabilities for financing.78
Positive
Cash Flow
Zurich Insurance Group demonstrates strong cash flow management with a Free Cash Flow growth rate of 4.41% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.31, indicating solid cash generation from operations. The Free Cash Flow to Net Income Ratio is robust at 1.24, ensuring ample liquidity to fund operations and investments.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 77.75B | 63.73B | 58.64B | 70.05B | 58.92B |
| Gross Profit | 77.75B | 63.73B | 38.11B | 70.06B | 58.94B |
| EBITDA | 9.82B | 7.77B | 6.57B | 8.36B | 4.22B |
| Net Income | 5.81B | 4.35B | 3.96B | 5.20B | 3.83B |
Balance Sheet | |||||
| Total Assets | 358.00B | 361.38B | 335.41B | 435.83B | 439.30B |
| Cash, Cash Equivalents and Short-Term Investments | 112.65B | 100.25B | 114.43B | 160.61B | 26.01B |
| Total Debt | 14.43B | 15.46B | 15.67B | 16.99B | 16.00B |
| Total Liabilities | 331.07B | 335.10B | 308.48B | 396.66B | 399.45B |
| Stockholders Equity | 25.47B | 24.86B | 25.68B | 29.12B | 38.28B |
Cash Flow | |||||
| Free Cash Flow | 7.23B | 6.93B | 4.51B | 2.59B | 5.15B |
| Operating Cash Flow | 7.60B | 7.34B | 5.08B | 3.17B | 5.70B |
| Investing Cash Flow | -1.40B | -1.13B | -691.00M | -2.89B | -496.00M |
| Financing Cash Flow | -6.37B | -7.00B | -5.27B | -2.29B | -2.67B |
Zurich Insurance Group Technical Analysis
Negative
553.40
Price Trends
570.90
Negative
569.39
Negative
556.27
Negative
Market Momentum
-5.42
Positive
34.16
Neutral
13.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ZURN, the sentiment is Negative. The current price of 553.4 is below the 20-day moving average (MA) of 567.84, below the 50-day MA of 570.90, and below the 200-day MA of 556.27, indicating a bearish trend. The MACD of -5.42 indicates Positive momentum. The RSI at 34.16 is Neutral, neither overbought nor oversold. The STOCH value of 13.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:ZURN.
Zurich Insurance Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $78.51B | 15.76 | 23.97% | 5.06% | -7.33% | 17.93% | |
73 Outperform | 1.80B | 11.89 | 5.77% | 3.90% | -1.58% | 4.07% | |
70 Outperform | 38.13B | 12.91 | 14.03% | 4.24% | -4.94% | ― | |
66 Neutral | 23.67B | 20.06 | 16.14% | 4.19% | -1.65% | 9.88% | |
64 Neutral | 8.92B | 20.39 | 10.60% | 4.10% | -9.11% | ― | |
56 Neutral | 10.41B | 19.12 | 11.65% | 3.41% | -1.57% | 95.56% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
CH:ZURN
Zurich Insurance Group
553.80
64.23
13.12%
CH:BALN
Baloise Holding AG
195.00
30.57
18.59%
CH:HELN
Helvetia Holding AG
193.60
52.88
37.58%
SWSDF
Swiss Life Holding AG
1,052.58
249.70
31.10%
SSREF
Swiss Re AG
178.18
44.86
33.65%
DE:VAHB
Vaudoise Assurances Holding SA
652.00
225.08
52.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.