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Zurich Insurance Group AG (ZURVY)
OTHER OTC:ZURVY
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Zurich Insurance Group AG
(OTC:ZURVY)
Rating:76Outperform
Price Target:
$39.00
▲(12.62%Upside)
Zurich Insurance Group AG (ZURVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$97.99B
Dividend Yield4.95%
Average Volume (3M)5.28K
Price to Earnings (P/E)17.2
Beta (1Y)0.35
Revenue Growth9.54%
EPS Growth35.36%
CountryUS
Employees60,000
SectorFinancial
Sector Strength73
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.97
Shares Outstanding2,927,115,000
10 Day Avg. Volume5,956
30 Day Avg. Volume5,279
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.13
Price to Sales (P/S)0.00
P/FCF Ratio0.79
Enterprise Value/Market Cap0.12
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.35
Enterprise Value/Ebitda0.15
Forecast
1Y Price Target
$40.00Price Target Upside15.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Zurich Insurance Group AG 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 AG generates revenue primarily through the underwriting of insurance policies and the management of investments. The company's key revenue streams include premiums collected from policyholders for its property and casualty, life, and accident and health insurance products. Zurich also earns investment income from the premiums it invests in various financial instruments, including bonds, equities, and real estate. Additionally, the company benefits from strategic partnerships with financial institutions and corporate clients, enhancing its distribution channels and cross-selling opportunities. Factors contributing to Zurich's earnings include its strong brand reputation, global presence, and focus on digital transformation to improve operational efficiency and customer experience.
Zurich Insurance Group AG Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q4-2024)
| % Change Since: 14.59%|
Next Earnings Date:Aug 07, 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.Q4-2024 Updates
Positive Updates
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%.
Negative Updates
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.Zurich Insurance Group AG Financial Statement Overview
Summary
Zurich Insurance Group AG demonstrates solid financial performance with strong income growth, moderate leverage, and robust cash flow generation. The company's revenue and net profit have improved, while maintaining liquidity and effective debt management, positioning it well within the industry.Income Statement
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 77.75B | 74.69B | 41.42B | 70.06B | 58.62B |
| Gross Profit | 77.75B | 69.96B | 41.42B | 70.06B | 58.62B |
| EBITDA | 9.82B | 6.83B | 7.28B | 5.60B | 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 | 15.86B |
| Total Liabilities | 331.07B | 335.10B | 349.87B | 396.66B | 399.45B |
| Stockholders Equity | 25.47B | 24.86B | 26.63B | 37.88B | 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 AG Technical Analysis
Positive
34.63
Price Trends
34.87
Negative
34.05
Positive
31.71
Positive
Market Momentum
-0.02
Negative
49.34
Neutral
35.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZURVY, the sentiment is Positive. The current price of 34.63 is above the 20-day moving average (MA) of 34.53, below the 50-day MA of 34.87, and above the 200-day MA of 31.71, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 35.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZURVY.
Zurich Insurance Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $34.02B | 11.93 | 18.49% | 1.74% | 7.55% | 14.16% | |
76 Outperform | $97.99B | 17.17 | 22.99% | 4.95% | 9.54% | 35.36% | |
75 Outperform | $18.15B | 17.35 | 9.70% | 3.75% | 5.84% | -10.64% | |
73 Outperform | $33.95B | 9.04 | 18.42% | ― | 25.29% | -23.19% | |
67 Neutral | $16.64B | 11.61 | 9.79% | 3.78% | 11.89% | -8.13% | |
65 Neutral | $15.76B | 14.10 | 56.67% | 2.08% | 12.41% | 14.76% | |
57 Neutral | $47.05B | 18.24 | 6.13% | 2.22% | -44.30% | -33.09% |
* Financial Sector Average
Performance Comparison
ZURVY
Zurich Insurance Group AG
34.63
8.38
31.92%
AIG
American International Group
80.99
4.56
5.97%
ACGL
Arch Capital Group
89.07
-4.35
-4.66%
HIG
Hartford Financial
120.55
17.23
16.68%
PFG
Principal Financial
79.82
-2.48
-3.01%
EQH
Equitable Holdings
51.72
10.56
25.66%
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.