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Zurich Insurance (ZURVY)
OTHER OTC:ZURVY
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Zurich Insurance Group AG
(OTC:ZURVY)
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Rating:76Outperform
Price Target:
$41.00
▲(15.01% Upside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by solid financial performance (improving margins and a very strong 2025 free cash flow step-up) and a positive earnings-call outlook with strong profitability metrics and supportive multi-year targets. Valuation is helped by a high dividend yield with a reasonable P/E. Technical indicators are the main offset, reflecting largely neutral momentum around key moving averages.
Positive Factors
Cash Generation
Zurich's free cash flow surge to ~22.3B in 2025, which tracks net income closely, represents durable internal funding. Strong FCF supports sustained dividends, buybacks, reinsurance capacity and investment in growth initiatives, enhancing strategic flexibility over multiple years.
Improving Profitability
Consistent margin expansion across operating and net metrics reflects improving underwriting results and operational leverage. Sustained higher margins increase core earnings power, support above-target ROE goals and provide a structural buffer against underwriting cycles over the medium term.
Capital Strength & Returns
A 26.3% core ROE together with an SST ratio of 255% signals strong capital efficiency and solvency. Robust capital metrics underpin Zurich's ability to remit cash, pursue disciplined capital allocation and absorb losses, supporting multi-year return objectives and investor distributions.
Negative Factors
Rising Leverage
Leverage rising toward a ~0.65 debt-to-equity ratio reduces financial flexibility and heightens sensitivity to large underwriting losses or investment shocks. Elevated leverage can constrain capital actions, increase refinancing or rating risk, and limit cushion during adverse cycles over the medium term.
Revenue Volatility
Wide multi-year revenue swings, despite the 2025 rebound, weaken predictability of premiums and earnings. This volatility complicates reserve setting, pricing and capital planning, making achievement of multi-year remittance and EPS growth targets more uncertain across underwriting and macro cycles.
Underwriting & Expense Pressures
Rising expense ratios and the need to invest in underwriting capability are structural headwinds that can erode margin gains. Combined with pockets of unprofitable liability business, ongoing expense and underwriting pressure require sustained discipline to protect long-term profitability and ROE targets.
Zurich Insurance Group AG (ZURVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$102.43B
Dividend Yield4.44%
Average Volume (3M)57.16K
Price to Earnings (P/E)15.9
Beta (1Y)0.30
Revenue Growth-4.73%
EPS Growth21.55%
CountryUS
Employees60,000
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)1.17
Shares Outstanding3,068,933,000
10 Day Avg. Volume131,979
30 Day Avg. Volume57,155
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)3.80
Price to Sales (P/S)1.23
P/FCF Ratio4.87
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue1.28
Enterprise Value/Gross Profit1.28
Enterprise Value/Ebitda9.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.44
Revenue Forecast (FY)$65.92B
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 generates revenue primarily through the underwriting of insurance policies and the investment of premiums received from policyholders. Its key revenue streams include premiums from property and casualty insurance, life insurance, and other insurance-related services. Additionally, the company earns income from investments made with the premiums, which include bonds, stocks, and real estate. Significant partnerships with brokers and agents enhance its distribution network, allowing Zurich to reach a broader customer base. The company's strong financial position and diversified operations also contribute to its earnings stability, as it can effectively manage risk across different markets and sectors.
Zurich Insurance Group AG Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
Zurich's earnings call highlighted strong overall performance with record profits and growth across segments, demonstrating financial resilience. However, challenges were noted in the liability market and certain areas of expense management, alongside some regional sales pressures.Q2-2025 Updates
Positive Updates
Record Group Business Operating Profit
Zurich achieved a record business operating profit of USD 4.2 billion, up 6% year-on-year, demonstrating strong performance across all geographic and business segments.
Highest Core ROE in a Decade
The core return on equity (ROE) reached a record 26.3%, marking a 15 percentage point increase, reflecting ongoing optimization of capital allocation.
Strong Financial Resilience
An SST ratio of 255% was reported, coupled with high cash conversion, positioning Zurich to generate attractive returns for investors.
Property & Casualty Achievements
Achieved an all-time high BOP of USD 2.4 billion, up 9% year-over-year, with a combined ratio improvement of 1.2 percentage points to 92.4%.
Life Segment Growth
Life segment sustained last year's record BOP of $1 billion, growing 4% year-on-year on an underlying basis, with gross written premiums up 14% and new business premiums up 20%.
Farmers' Strong Performance
Farmers delivered its strongest half-year ever, with BOP up 4% to USD 1.2 billion and a combined ratio of 90.5%, despite challenges such as California wildfires.
Negative Updates
Challenge in Liability Market
The liability market, despite strong rate increases, is still not profitable enough, necessitating disciplined underwriting.
Expense Ratio Concerns
An increase in the expense ratio was noted, partly due to the inclusion of Travel Guard expenses and investments in commercial underwriting capabilities.
Pressure in US Programs
The U.S. programs within the middle market were highlighted as areas of focus for profitability improvement, affecting growth.
Brazilian Sales Impact
Sales in Brazil were down due to a transition at Santander, impacting growth in protection, though it is expected to recover in the second half.
Company Guidance
During the Zurich Half Year Results 2025 Conference Call, key financial metrics highlighted included a record group business operating profit of USD 4.2 billion, up 6% year-on-year. The core return on equity (ROE) reached a decade-high of 26.3%, a significant 15 percentage point increase. The company's financial resilience was underscored by an SST ratio of 255% at the end of June. In the Property & Casualty segment, the business operating profit (BOP) rose to USD 2.4 billion, with a combined ratio improvement of 1.2 percentage points to 92.4%. The Commercial Insurance segment saw a 90 basis point decline in the combined ratio to 90.5%. The Retail Property & Casualty segment improved its combined ratio by 2.4 percentage points to 94.1%. The specialty business generated USD 4.9 billion in gross written premiums with an 86.5% accident year combined ratio, excluding catastrophes. In the Life segment, the business operating profit remained robust at $1 billion, growing 4% year-on-year on an underlying basis, with gross written premiums up 14% and new business premiums up 20% on a like-for-like basis. The Farmers segment reported its strongest half year ever, with BOP up 4% to USD 1.2 billion, maintaining a combined ratio of 90.5% despite exposure to California wildfires. Looking forward, Zurich aims for a compounded annual growth rate over 9% in core EPS from the 2024 baseline of $40.1 per share, a core ROE exceeding 23%, and cash remittances surpassing $19 billion cumulatively by 2027.Zurich Insurance Group AG Financial Statement Overview
Summary
Income statement strength is solid with improving profitability (net margin rising from ~5.6% in 2023 to ~7.7% in 2025; EBIT margin ~8.9% to ~12.0%). Cash flow is a major positive, with free cash flow surging to ~22.3B in 2025 and generally tracking net income well, though operating cash flow unevenness and a noted 0.0 coverage figure add data-consistency risk. Balance sheet is good but not top-tier due to rising leverage (debt-to-equity up to ~0.65 in 2025) and sensitivity to underwriting/investment swings.Income Statement
Profitability and scale are solid, with net margin improving from ~5.6% (2023) to ~6.8% (2024) and ~7.7% (2025), alongside rising operating profitability (EBIT margin ~8.9% to ~12.0%). Revenue rebounded strongly in 2025 (+26.5% vs. 2024) after steadier growth in 2023–2024, but the multi-year revenue path shows volatility (including a sharp decline in 2022), which tempers the score.82
Very Positive
Balance Sheet
Leverage appears manageable for the period shown, with debt-to-equity generally in the ~0.42–0.65 range, though it has trended higher recently (0.57 in 2024 to 0.65 in 2025). Equity is positive and expanding in absolute terms, but the rising leverage and large asset base relative to equity signal sensitivity to underwriting/investment swings, keeping balance sheet strength at a good—but not top-tier—level.70
Positive
Cash Flow
Cash generation strengthened materially, with free cash flow rising from ~6.9B (2023) to ~7.2B (2024) and then surging to ~22.3B (2025). Free cash flow tracks net income closely across years (roughly ~0.82–0.98x), supporting earnings quality; however, operating cash flow has been uneven year-to-year and one provided coverage figure is shown as 0.0 in 2024–2025, which adds some data-quality/consistency risk.84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 88.17B | 86.05B | 78.10B | 44.76B | 69.54B |
| Gross Profit | 88.17B | 83.66B | 75.71B | 33.77B | 60.33B |
| EBITDA | 11.39B | 9.82B | 7.77B | 6.57B | 8.36B |
| Net Income | 6.83B | 5.81B | 4.35B | 3.96B | 5.20B |
Balance Sheet | |||||
| Total Assets | 455.12B | 358.00B | 361.38B | 377.78B | 435.83B |
| Cash, Cash Equivalents and Short-Term Investments | 7.09B | 112.65B | 100.25B | 114.43B | 160.61B |
| Total Debt | 18.66B | 14.43B | 15.46B | 15.67B | 16.99B |
| Total Liabilities | 424.95B | 331.07B | 335.10B | 349.87B | 396.66B |
| Stockholders Equity | 28.52B | 25.47B | 24.86B | 25.68B | 37.88B |
Cash Flow | |||||
| Free Cash Flow | 22.29B | 7.23B | 6.93B | 4.51B | 2.59B |
| Operating Cash Flow | 22.77B | 7.60B | 7.34B | 5.08B | 3.17B |
| Investing Cash Flow | -17.83B | -1.40B | -1.13B | -691.00M | -2.89B |
| Financing Cash Flow | -5.26B | -6.37B | -7.00B | -5.27B | -2.29B |
Zurich Insurance Group AG Technical Analysis
Negative
35.65
Price Trends
36.53
Negative
36.11
Negative
35.70
Negative
Market Momentum
-0.08
Positive
40.50
Neutral
22.73
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 35.65 is below the 20-day moving average (MA) of 36.50, below the 50-day MA of 36.53, and below the 200-day MA of 35.70, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 22.73 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $34.54B | 8.05 | 19.54% | ― | 16.68% | -28.54% | |
79 Outperform | $38.53B | 10.14 | 21.66% | 1.55% | 7.11% | 22.52% | |
76 Outperform | $102.43B | 15.87 | 24.12% | 4.44% | -4.73% | 21.55% | |
73 Outperform | $20.27B | 16.80 | 10.32% | 3.44% | 12.33% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $10.65B | 4.30 | 14.42% | 5.77% | -6.19% | ― | |
67 Neutral | $42.96B | 15.62 | 7.40% | 2.02% | -23.02% | 52.43% |
* Financial Sector Average
ZURVY
Zurich Insurance Group AG
34.23
1.85
5.72%
AEG
Aegon
7.08
1.09
18.14%
AIG
American International Group
80.07
0.49
0.62%
ACGL
Arch Capital Group
97.07
5.69
6.23%
HIG
Hartford Insurance
139.68
24.91
21.71%
PFG
Principal Financial
93.50
10.10
12.11%
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.