«Zurich is extraordinarily successful and can demonstrate market-leading shareholder returns,» said CEO Mario Greco in the announcement. «But we see opportunities to accelerate our success story. To reflect our growing confidencewe are launching a new three-year plan with the most ambitious goals in Zurich’s history. I am confident that we will continue to create significant value for our customers and shareholders in the future,» he added.

Higher Return on Equity

For the three years leading up to 2027Zurich aims for an adjusted return on equity (ROE) based on business operating profit (BOP) of at least 23 percent. The previous target was 20 percent. This target has already been exceeded in 2023 and the first half of 2024with ROE reaching 23 percent and 25 percentrespectively.

Earnings targets are also being raised. Adjusted earnings per share (EPS) are expected to grow by more than 9 percent annually on averagecompared to the previous target of 8 percent. For the current yearthe company anticipates EPS growth of over 10 percent.

Underwriting Discipline

Zurich plans to achieve these goals by placing greater emphasis on corporate business and maintaining discipline in underwritingwhich will improve portfolio quality. Economies of scale and expected growth in unit-linked life insurance products are also expected to support these objectives. The life protection business will be reorganized into a single global unit.

In the corporate business segmentZurich aims to increase its BOP to $4,2 billion by 2027 (compared to $3,6 billion in 2023). In the life insurance segmentthe company targets annual premium growth of 8 percent. Additionallygrowth contributions are expected from its Farmers business in the United States.

The company’s commitment to generating «significant added value» will also translate into an attractive payout ratio. Zurich intends to maintain a payout ratio of 75 percent of earnings. The SST solvency ratio is expected to remain above 160 percent.