SWX:ZURN

Stock Analysis Report

Zurich Insurance Group

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.

Snowflake

Fundamentals

6 star dividend payer with proven track record.


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


Market Performance


7 Day Return

1.4%

ZURN

0.8%

CH Insurance

0.4%

CH Market


1 Year Return

27.7%

ZURN

23.7%

CH Insurance

11.4%

CH Market

Return vs Industry: ZURN exceeded the Swiss Insurance industry which returned 23.7% over the past year.

Return vs Market: ZURN exceeded the Swiss Market which returned 11.4% over the past year.


Shareholder returns

ZURNIndustryMarket
7 Day1.4%0.8%0.4%
30 Day1.4%0.2%-0.3%
90 Day12.3%7.3%1.8%
1 Year35.5%27.7%30.3%23.7%17.4%11.4%
3 Year83.6%53.3%67.7%43.4%34.9%21.3%
5 Year93.6%41.6%99.5%51.6%42.2%19.9%

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?

17.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ZURN (CHF385.9) is trading below our estimate of fair value (CHF468.34)

Significantly Undervalued: ZURN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ZURN is poor value based on its PE Ratio (14.4x) compared to the Insurance industry average (14.3x).

PE vs Market: ZURN is good value based on its PE Ratio (14.4x) compared to the Swiss market (18.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ZURN is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: ZURN is overvalued based on its PB Ratio (1.7x) compared to the CH Insurance industry average (1.1x).


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZURN's forecast earnings growth (6.2% per year) is above the savings rate (3.3%).

Earnings vs Market: ZURN's earnings (6.2% per year) are forecast to grow slower than the Swiss market (10.3% per year).

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

Revenue vs Market: ZURN's revenue (0.9% per year) is forecast to grow slower than the Swiss market (3.5% per year).

High Growth Revenue: ZURN's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ZURN's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

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

-0.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ZURN's earnings have declined by -0.3% per year over the past 5 years.

Accelerating Growth: ZURN's earnings growth over the past year (20.5%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: ZURN earnings growth over the past year (20.5%) exceeded the Insurance industry 20.1%.


Return on Equity

High ROE: ZURN's Return on Equity (12.2%) is considered low.


Return on Assets

ROA vs Industry: ZURN has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: ZURN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Zurich Insurance Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ZURN has a low level of unsold assets or inventory.

Debt Coverage by Assets: ZURN's debt is covered by short term assets (assets are 6.505550x debt).


Financial Institutions Analysis

Asset Level: ZURN's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if ZURN has a sufficient allowance for bad loans.

Low Risk Liabilities: ZURN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ZURN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ZURN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ZURN has an appropriate level of bad loans.


Next Steps

Dividend

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

4.80%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.9%markettop25%3.7%industryaverage4.5%forecastin3Years5.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ZURN's dividend (4.8%) is higher than the bottom 25% of dividend payers in the Swiss market (1.9%).

High Dividend: ZURN's dividend (4.8%) is in the top 25% of dividend payers in the Swiss market (3.75%)

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: With its reasonable payout ratio (71.9%), ZURN's dividend 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 (72.4% payout ratio).


Next Steps

Management

What is the CEO of Zurich Insurance Group's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Mario Greco (60yo)

3.6yrs

Tenure

US$8,800,000

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: Mario's total compensation ($USD8.83M) is about average for companies of similar size in the Swiss market ($USD4.19M).

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


Management Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ZURN's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

65yo

Average Age

Experienced Board: ZURN's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Jeff Dailey (62yo)

    Member of the Executive Committee

    • Tenure: 7.8yrs
  • Mario Greco (60yo)

    Group CEO & Member of the Executive Committee

    • Tenure: 3.6yrs
    • Compensation: US$8.80m
  • George Quinn (53yo)

    Group CFO & Member of the Executive Committee

    • Tenure: 5.4yrs
  • Claudia Dill (53yo)

    CEO of Latin America & Member of the Executive Committee

    • Tenure: 3.1yrs
  • Kristof Terryn (52yo)

    Group COO & Member of Executive Committee

    • Tenure: 0yrs
  • Richard Burden

    Head Investor Relations & Rating Agency Management

    • Tenure: 0yrs
  • Urban Angehrn (54yo)

    Group Chief Investment Officer & Member of Executive Committee

    • Tenure: 4.3yrs
  • James Andrew Shea (54yo)

    CEO of Commercial Insurance & Member of the Executive Committee

    • Tenure: 3yrs
  • Kathleen Savio (54yo)

    CEO of North America & Member of the Executive Committee

    • Tenure: 2yrs
  • Jack Howell (49yo)

    CEO of Asia Pacific & Member of the Executive Committee

    • Tenure: 3yrs

Board Members

  • Alison Carnwath (66yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$380.00k
  • Monica Mächler (63yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$300.00k
  • Fritz Gerber (90yo)

    Honorary Chairman

    • Tenure: 0yrs
  • Michel Liès (65yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$1.31m
  • Jeff Hayman (59yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$345.00k
  • Joan Lordi Amble (66yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: US$300.00k
  • Christoph Franz (59yo)

    Vice Chairman

    • Tenure: 1.5yrs
    • Compensation: US$410.00k
  • Cathy Bessant (59yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$300.00k
  • Kishore Mahbubani (71yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: US$300.00k
  • Wilson Toneto

    Chairman of Brazilian Unit

    • Tenure: 8.8yrs

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: CHF56.158b
  • Shares outstanding: 145.53m
  • Website: https://www.zurich.com

Number of Employees


Location

  • Zurich Insurance Group AG
  • Austrasse 46
  • Zurich
  • Zurich
  • 8045
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0QP2LSE (London Stock Exchange)YesRegistered SharesGBCHFOct 2000
ZFINDB (Deutsche Boerse AG)YesRegistered SharesDEEUROct 2000
ZURNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFOct 2000
ZFINXTRA (XETRA Trading Platform)YesRegistered SharesDEEUROct 2000
ZFSV.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDOct 2000
ZURV.YOTCPK (Pink Sheets LLC)SPON ADR 10 REP 1 ORD SHUSUSDOct 2000
ZFI1DB (Deutsche Boerse AG)SPON ADR 10 REP 1 ORD SHDEEUROct 2000

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 Analysis2019/10/14 20:46
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.