SWX:ZURN

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Zurich Insurance Group

Market Cap

CHF54.8b

Last Updated

2021/08/03 20:47 UTC

Data Sources

Company Financials +

Executive Summary

Zurich 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. More Details


Snowflake Analysis

6 star dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Zurich Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZURN is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ZURN's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

ZURN

0.07%

CH Insurance

1.2%

CH Market


1 Year Return

6.9%

ZURN

12.4%

CH Insurance

21.9%

CH Market

Return vs Industry: ZURN underperformed the Swiss Insurance industry which returned 12.2% over the past year.

Return vs Market: ZURN underperformed the Swiss Market which returned 22% over the past year.


Shareholder returns

ZURNIndustryMarket
7 Day0.6%0.07%1.2%
30 Day0.5%0.3%1.7%
90 Day-1.9%-1.6%9.6%
1 Year12.5%6.9%18.5%12.4%25.3%21.9%
3 Year45.3%22.4%31.4%11.1%41.3%25.9%
5 Year104.8%52.7%76.6%34.1%69.7%38.9%

Long-Term Price Volatility Vs. Market

How volatile is Zurich Insurance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zurich Insurance Group undervalued compared to its fair value and its price relative to the market?

48.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZURN (CHF369.3) is trading below our estimate of fair value (CHF712.26)

Significantly Below Fair Value: ZURN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZURN is poor value based on its PE Ratio (15.8x) compared to the Swiss Insurance industry average (15.3x).

PE vs Market: ZURN is good value based on its PE Ratio (15.8x) compared to the Swiss market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: ZURN is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ZURN is overvalued based on its PB Ratio (1.6x) compared to the CH Insurance industry average (0.9x).


Future Growth

How is Zurich Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZURN's forecast earnings growth (8.3% per year) is above the savings rate (-0.3%).

Earnings vs Market: ZURN's earnings (8.3% per year) are forecast to grow slower than the Swiss market (10.9% per year).

High Growth Earnings: ZURN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZURN's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: ZURN's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZURN's Return on Equity is forecast to be low in 3 years time (13.2%).


Past Performance

How has Zurich Insurance Group performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZURN has high quality earnings.

Growing Profit Margin: ZURN's current net profit margins (6.5%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: ZURN's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: ZURN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZURN had negative earnings growth (-7.4%) over the past year, making it difficult to compare to the Insurance industry average (-12.7%).


Return on Equity

High ROE: ZURN's Return on Equity (10.2%) is considered low.


Financial Health

How is Zurich Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: ZURN's short term assets ($70.2B) exceed its short term liabilities ($49.7B).

Long Term Liabilities: ZURN's short term assets ($70.2B) do not cover its long term liabilities ($349.7B).


Debt to Equity History and Analysis

Debt Level: ZURN's debt to equity ratio (36.8%) is considered satisfactory.

Reducing Debt: ZURN's debt to equity ratio has increased from 35.9% to 36.8% over the past 5 years.

Debt Coverage: ZURN's debt is well covered by operating cash flow (38.9%).

Interest Coverage: ZURN's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet


Dividend

What is Zurich Insurance Group current dividend yield, its reliability and sustainability?

4.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZURN's dividend (4.97%) is higher than the bottom 25% of dividend payers in the Swiss market (1.41%).

High Dividend: ZURN's dividend (4.97%) is in the top 25% of dividend payers in the Swiss market (3.5%)


Stability and Growth of Payments

Stable Dividend: ZURN's dividends per share have been stable in the past 10 years.

Growing Dividend: ZURN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.9%), ZURN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZURN's dividends in 3 years are forecast to be covered by earnings (72.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Mario Greco (62 yo)

5.42yrs

Tenure

US$9,602,577

Compensation

Mr. Mario Greco has been the Group Chief Executive Officer and Member of the Executive Committee at Zurich Insurance Group AG since March 07, 2016. Mr. Greco served as the Group Chief Executive Officer of...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Mario's total compensation is reasonable compared to companies of similar size in the Swiss market.

Compensation vs Earnings: Mario's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ZURN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ZURN's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zurich Insurance Group AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zurich Insurance Group AG
  • Ticker: ZURN
  • Exchange: SWX
  • Founded: 1872
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: CHF54.840b
  • Shares outstanding: 148.50m
  • Website: https://www.zurich.com

Number of Employees


Location

  • Zurich Insurance Group AG
  • Mythenquai 2
  • Zurich
  • Zurich
  • 8002
  • Switzerland

Listings


Biography

Zurich 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 compa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 20:47
End of Day Share Price2021/08/03 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.