Zurich Insurance Group AG (ZURVY) AI Stock Analysis

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Zurich Insurance Group AG

(OTC:ZURVY)

78Outperform

Zurich Insurance Group AG is well-positioned in the insurance industry with strong financial performance and positive technical indicators. The company's robust earnings call results, despite some challenges, support a positive outlook. While the valuation is slightly high, the attractive dividend yield adds to the stock's appeal. Overall, Zurich Insurance is a strong contender for growth and income-focused investors, though caution is warranted due to slight overvaluation concerns.

Zurich Insurance Group AG (ZURVY) vs. S&P 500 (SPY)

Market Cap

$89.67B

Dividend Yield2.82%

Average Volume (3M)52.10K

Price to Earnings (P/E)15.3

Beta (1Y)0.47

Revenue Growth9.54%

EPS Growth35.36%

CountryUS

Employees60,000

SectorFinancial

Sector Strength82

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)2.01

Shares Outstanding2,927,115,000

10 Day Avg. Volume21,269

30 Day Avg. Volume52,101

Financial Highlights & Ratios

PEG Ratio0.43

Price to Book (P/B)N/A

Price to Sales (P/S)2.34

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Zurich Insurance Group AG Business Overview & Revenue Model

Company DescriptionZurich Insurance Group AG (ZURVY) is a leading multi-line insurer that offers a wide range of general insurance and life insurance products and services. Founded in 1872 and headquartered in Zurich, Switzerland, the company operates globally, serving customers in over 215 countries and territories. Zurich Insurance focuses on delivering innovative solutions and comprehensive coverage to individuals, small businesses, and large corporations through its extensive network of subsidiaries and affiliates.

How the Company Makes MoneyZurich Insurance Group AG generates revenue primarily through the underwriting of insurance policies and the management of investment portfolios. The company's key revenue streams include premiums collected from policyholders for general and life insurance products, such as property and casualty insurance, life and health insurance, and other specialized risk management solutions. Zurich also earns income from its investment activities, which involve managing assets derived from collected premiums to achieve favorable returns. Additionally, the company benefits from strategic partnerships and collaborations with financial institutions, brokers, and agents, which help expand its market reach and client base. The company's ability to effectively assess and manage risk, coupled with its strong global presence and diversified product offerings, significantly contribute to its financial performance.

Zurich Insurance Group AG Financial Statement Overview

Summary

Zurich Insurance Group AG demonstrates strong financial performance with robust income growth, a stable balance sheet, and healthy cash flow. The income statement shows a notable profit margin improvement and consistent revenue growth. The balance sheet reflects moderate leverage and effective use of shareholder funds. Cash flow statements highlight efficient capital management with strong free cash flow generation.

Income Statement

Very Positive

Zurich Insurance Group AG shows a robust income statement with a notable net profit margin of 7.48% in 2024, up from 5.83% in 2023, indicating improved profitability. The revenue growth rate from 2023 to 2024 is 4.09%, demonstrating steady top-line growth. However, the EBIT margin is not available for 2024, but the EBITDA margin is strong at 12.62%. The company exhibits consistent revenue and profit growth, which enhances its stability and profitability in the insurance industry.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.57, indicating moderate leverage and manageable debt levels. The equity ratio is 7.11%, showing a lower reliance on equity financing. Return on equity improved to 22.83% in 2024 from 17.50% in 2023, highlighting effective use of shareholder funds. While equity levels are relatively low, the company maintains sufficient liquidity with substantial cash reserves.

Cash Flow

Positive

The cash flow statement demonstrates strong free cash flow growth of 4.41% from 2023 to 2024, reflecting efficient capital management. The operating cash flow to net income ratio is 1.31, indicating good cash conversion from profits. The free cash flow to net income ratio stands at 1.24, underscoring the company's ability to generate cash beyond its earnings. Overall, cash flows are healthy, supporting Zurich Insurance's operations and strategic initiatives.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
76.96B	77.75B	74.69B	41.42B	70.06B	58.62B
	Gross Profit
76.19B	77.75B	69.96B	41.42B	70.06B	58.62B
	EBIT
59.58B	0.00	71.11B	6.48B	4.75B	3.31B
	EBITDA
35.77B	9.82B	6.83B	7.28B	8.62B	6.59B
	Net Income Common Stockholders
4.88B	5.81B	4.35B	3.96B	5.20B	3.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
100.25B	112.65B	100.25B	114.43B	160.61B	26.01B
	Total Assets
361.38B	358.00B	361.38B	377.78B	435.83B	439.30B
	Total Debt
15.46B	14.43B	15.46B	15.67B	16.99B	15.86B
	Net Debt
8.18B	7.66B	8.18B	8.11B	8.29B	4.75B
	Total Liabilities
335.10B	331.07B	335.10B	349.87B	396.66B	399.45B
	Stockholders Equity
24.86B	25.47B	24.86B	26.63B	37.88B	38.28B
Cash Flow		Free Cash Flow
7.49B	7.23B	6.93B	4.51B	2.59B	5.15B
	Operating Cash Flow
7.89B	7.60B	7.34B	5.08B	3.17B	5.70B
	Investing Cash Flow
-1.79B	-1.40B	-1.13B	-691.00M	-2.89B	-496.00M
	Financing Cash Flow
-5.90B	-6.37B	-7.00B	-5.27B	-2.29B	-2.67B

Zurich Insurance Group AG Technical Analysis

Technical Analysis Sentiment

Negative

Last Price32.43

Price Trends

50DMA

32.97

Negative

100DMA

31.64

Positive

200DMA

30.12

Positive

Market Momentum

MACD

0.73

Positive

RSI

70.30

Negative

STOCH

68.48

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZURVY, the sentiment is Negative. The current price of 32.43 is below the 20-day moving average (MA) of 34.27, below the 50-day MA of 32.97, and above the 200-day MA of 30.12, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 70.30 is Negative, neither overbought nor oversold. The STOCH value of 68.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZURVY.

Zurich Insurance Group AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	79 Outperform	$31.93B	7.72	22.02%	―	26.24%	-3.87%
HIG	79 Outperform	$31.34B	10.61	19.58%	1.80%	8.19%	29.77%
ZURVY	78 Outperform	$89.67B	15.31	22.99%	2.82%	9.54%	35.36%
AIG	70 Outperform	$46.02B	15.32	7.10%	2.06%	-28.56%	1.14%
PFG	66 Neutral	$16.16B	10.73	14.28%	4.06%	18.02%	171.70%
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%
EQH	56 Neutral	$13.76B	11.87	61.74%	2.18%	16.81%	14.00%

* Financial Sector Average

Performance Comparison

ZURVY

Zurich Insurance Group AG

32.43

7.63

30.77%

AIG

American International Group

77.67

3.93

5.33%

ACGL

Arch Capital Group

91.48

3.82

4.36%

HIG

Hartford Financial

116.37

18.76

19.22%

PFG

Principal Financial

69.56

-8.90

-11.34%

EQH

Equitable Holdings

49.60

13.35

36.83%

Zurich Insurance Group AG Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: 3.98% | Next Earnings Date: Aug 6, 2025

Earnings Call Sentiment Neutral

The earnings call presented a strong performance across key financial metrics, with record-breaking BOP and ROE, significant cash remittances, and growth in the Life and P&C segments. However, challenges include the financial impact of California wildfires and a decline in Farmers' policy counts. Overall, the sentiment is balanced with a positive outlook for future growth.

Highlights

Record Group BOP and ROE

Group BOP reached a record $7.8 billion, up 5% year-over-year, with a core ROE of 24.6%, increasing by 1.6 percentage points from 2023.

Strong Cash Remittances and Dividend Increase

Cash remittances were $7.1 billion, up 34% for the year, supporting a proposed 8% dividend increase to CHF 28.

Life Business Growth

Life BOP grew 9% to a record $2.2 billion, driven by 7% like-for-like gross premium growth in protection, with significant contributions from EMEA, Asia Pacific, and Latin America.

Property & Casualty Performance

P&C gross written premiums grew 5% like-for-like, with a 94.2% combined ratio and BOP up 8% to $4.2 billion.

Farmers Segment Stability

Farmers delivered a BOP of $2.3 billion, maintaining the record level from last year, with a full-year combined ratio of 91.4%.

Lowlights

California Wildfires Impact

The financial impact of California wildfires on Zurich Insurance is estimated at $200 million, with Farmers facing losses within their reinsurance coverage.

Farmers Policy Count Decline

Farmers experienced an 8% decline in policies in force (PIF) in 2024, with efforts to reverse this trend expected to show results in the second half of 2025.

Reinsurance and Rate Challenges

The reinsurance renewals in April could see changes due to wildfire events, and there is a moderated pace of rate increases in some segments.

Company Guidance

During the Zurich Insurance Group's Full Year 2024 Results Q&A Call, CEO Mario Greco highlighted the group's strong financial performance, surpassing their 2023-2025 financial plan and setting a robust foundation for their 2027 objectives. Key metrics included a record group Business Operating Profit (BOP) of $7.8 billion, a 5% increase year-over-year, and a core Return on Equity (ROE) of 24.6%, up 1.6 percentage points from 2023. The company achieved healthy cash remittances of $7.1 billion, reflecting a 34% increase in NIAS earnings. Within the Life segment, BOP grew 9% to $2.2 billion, with gross premiums and new business premiums rising 4% and 5% respectively. The Property & Casualty business saw a 5% growth in gross written premiums, with a combined ratio of 94.2% and an 8% increase in BOP to $4.2 billion. The Farmers segment delivered a BOP of $2.3 billion, maintaining the record level from the previous year. The group's strong capitalization was evidenced by an SST ratio of 252% at year-end 2024, supporting their growth initiatives and shareholder returns goals, including a proposed 8% dividend increase to CHF 28. Looking forward, Zurich aims for a 9% compounded annual growth rate in core EPS, a core ROE above 23%, and cumulative cash remittances exceeding $19 billion over the next three-year cycle.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.