Zurich Insurance Group (ZURN) AI Stock Analysis

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Zurich Insurance Group

(OTC:ZURN)

Rating:81Outperform

Price Target:

CHF663.00

▲(13.45% Upside)

Zurich Insurance Group's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust guidance and record profits highlight its growth potential. Technical analysis supports a bullish trend, though caution is advised due to overbought signals. The valuation is attractive with a solid dividend yield, making it a compelling investment in the insurance sector.

Zurich Insurance Group (ZURN) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap

$82.85B

Dividend Yield4.79%

Average Volume (3M)186.64K

Price to Earnings (P/E)16.3

Beta (1Y)0.89

Revenue Growth-7.33%

EPS Growth17.93%

CountryCH

Employees60,000

SectorFinancial

Sector Strength73

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)18.22

Shares Outstanding146,355,760

10 Day Avg. Volume179,003

30 Day Avg. Volume186,637

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.13

Enterprise Value/Revenue1.36

Enterprise Value/Gross Profit1.36

Enterprise Value/Ebitda1.98

Forecast

1Y Price Target

$548.09

Price Target Upside-6.21% Downside

Rating ConsensusModerate Sell

Number of Analyst Covering10

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.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.75B	63.73B	36.98B	69.54B	58.92B
Gross Profit	77.75B	63.73B	58.64B	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	377.78B	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	349.87B	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

Technical Analysis Sentiment

Positive

Last Price584.40

Price Trends

50DMA

565.75

Positive

100DMA

566.96

Positive

200DMA

551.77

Positive

Market Momentum

MACD

5.53

Positive

RSI

56.57

Neutral

STOCH

23.96

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ZURN, the sentiment is Positive. The current price of 584.4 is above the 20-day moving average (MA) of 582.31, above the 50-day MA of 565.75, and above the 200-day MA of 551.77, indicating a bullish trend. The MACD of 5.53 indicates Positive momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
ZURN	81 Outperform	$82.85B	16.31	23.97%	4.79%	-7.33%	17.93%
Sector *	68 Neutral	$17.90B	11.92	10.28%	3.72%	9.73%	1.69%
HELN	66 Neutral	CHF10.94B	23.12		3.25%	11.93%	70.26%
BALN	65 Neutral	CHF9.36B	24.58		3.89%	-4.03%	60.24%
SWSDF	―	$30.56B	22.80	16.43%	4.07%	―	―
SSREF	―	$49.17B	14.39	17.22%	4.06%	―	―
VAHB	―	€1.98B	12.54	6.06%	―	―	―

* Financial Sector Average

Performance Comparison

CH:ZURN

Zurich Insurance Group

584.40

113.25

24.04%

CH:BALN

Baloise Holding AG

207.40

50.53

32.21%

CH:HELN

Helvetia Holding AG

205.80

76.44

59.09%

SWSDF

Swiss Life Holding AG

1,092.08

311.24

39.86%

SSREF

Swiss Re AG

181.81

49.59

37.51%

DE:VAHB

Vaudoise Assurances Holding SA

677.00

250.08

58.58%

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.Date of analysis: Aug 11, 2025