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

0.3%

SWX:ZURN

1.0%

CH Insurance

0.5%

CH Market


1 Year Return

18.7%

SWX:ZURN

18.7%

CH Insurance

3.1%

CH Market

ZURN outperformed the Insurance industry which returned 17.6% over the past year.

ZURN outperformed the Market in Switzerland which returned 2.7% over the past year.


Share holder returns

ZURNIndustryMarket
7 Day0.3%1.0%0.5%
30 Day0.6%0.3%-0.8%
90 Day7.1%5.7%1.9%
1 Year25.9%18.7%25.0%18.7%8.4%3.1%
3 Year72.2%43.7%66.5%42.4%30.6%17.3%
5 Year75.2%28.1%83.6%39.6%33.2%12.6%

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 based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Zurich Insurance Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Zurich Insurance Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Zurich Insurance Group is good value based on earnings compared to the CH Insurance industry average.

Zurich Insurance Group is good value based on earnings compared to the Switzerland market.


Price Based on Expected Growth

Zurich Insurance Group is poor value based on expected growth next year.


Price Based on Value of Assets

Zurich Insurance Group is overvalued based on assets compared to the CH Insurance industry average.


Next Steps

Future Growth

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

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zurich Insurance Group's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

Zurich Insurance Group's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

Zurich Insurance Group's revenue growth is positive but not above the Switzerland market average.

Zurich Insurance Group's earnings growth is positive but not above the Switzerland market average.

Zurich Insurance Group's earnings growth is expected to exceed the low risk savings rate of 3.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Zurich Insurance Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Zurich Insurance Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Zurich Insurance Group's 1-year earnings growth exceeds its 5-year average (20.5% vs -0.3%)

Zurich Insurance Group's earnings growth has exceeded the CH Insurance industry average in the past year (20.5% vs 7.8%).


Return on Equity

Zurich Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Zurich Insurance Group used its assets more efficiently than the CH Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Zurich Insurance Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Zurich Insurance Group's financial position?


Financial Position Analysis

Zurich Insurance Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Zurich Insurance Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Zurich Insurance Group's level of debt (40.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (39.7% vs 40.1% today).

Debt is well covered by operating cash flow (42.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 6.5x debt.


Next Steps

Dividend

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

6.09%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Zurich Insurance Group's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (2.03%).

Zurich Insurance Group's dividend is above the markets top 25% of dividend payers in Switzerland (3.89%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


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?

3.0yrs

Average management tenure


CEO

Mario Greco (60yo)

3.4yrs

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

Mario's remuneration is higher than average for companies of similar size in Switzerland.

Mario's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

53.5yo

Average Age

The tenure for the Zurich Insurance Group management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

65yo

Average Age

The tenure for the Zurich Insurance Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jeff Dailey (62yo)

    Member of the Executive Committee

    • Tenure: 7.6yrs
  • Mario Greco (60yo)

    Group CEO & Member of the Executive Committee

    • Tenure: 3.4yrs
    • Compensation: US$8.80m
  • George Quinn (53yo)

    Group CFO & Member of the Executive Committee

    • Tenure: 5.3yrs
  • Claudia Dill (53yo)

    CEO of Latin America & Member of the Executive Committee

    • Tenure: 2.9yrs
  • Kristof Terryn (52yo)

    Group COO & Member of Executive Committee

    • Tenure: 3.1yrs
  • Urban Angehrn (54yo)

    Group Chief Investment Officer & Member of Executive Committee

    • Tenure: 4.1yrs
  • James Andrew Shea (54yo)

    CEO of Commercial Insurance & Member of the Executive Committee

    • Tenure: 2.8yrs
  • McKie Martin (45yo)

    CEO of EMEA & Bank Distribution

    • Tenure: 1.8yrs
  • Kathleen Savio (54yo)

    CEO of North America & Member of the Executive Committee

    • Tenure: 1.8yrs
  • Jack Howell (49yo)

    CEO of Asia Pacific & Member of the Executive Committee

    • Tenure: 2.8yrs

Board Members

  • Alison Carnwath (66yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$380.00k
  • Monica Mächler (63yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$300.00k
  • Fritz Gerber (90yo)

    Honorary Chairman

    • Tenure: 0.0yrs
  • Michel Liès (65yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$1.31m
  • Jeff Hayman (59yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$345.00k
  • Joan Lordi Amble (66yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$300.00k
  • Christoph Franz (59yo)

    Vice Chairman

    • Tenure: 1.3yrs
    • Compensation: US$410.00k
  • Cathy Bessant (59yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$300.00k
  • Kishore Mahbubani (71yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$300.00k
  • Wilson Toneto

    Chairman of Brazilian Unit

    • Tenure: 8.6yrs

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: CHF51.109b
  • 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 Analysis2019/08/19 20:50
End of Day Share Price2019/08/19 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.