SWX:ZURN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

ZURN

-1.9%

CH Insurance

-1.1%

CH Market


1 Year Return

4.1%

ZURN

-11.2%

CH Insurance

5.0%

CH Market

Return vs Industry: ZURN exceeded the Swiss Insurance industry which returned -10.6% over the past year.

Return vs Market: ZURN underperformed the Swiss Market which returned 5.4% over the past year.


Shareholder returns

ZURNIndustryMarket
7 Day-1.2%-1.9%-1.1%
30 Day1.0%-1.6%-0.7%
90 Day18.7%11.6%5.0%
1 Year10.7%4.1%-5.4%-11.2%8.6%5.0%
3 Year41.1%17.8%17.9%-0.1%19.4%7.0%
5 Year65.6%20.0%43.9%8.4%29.5%9.1%

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?

31.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZURN (CHF345.5) is trading below our estimate of fair value (CHF500.73)

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 (13.4x) compared to the CH Insurance industry average (9.4x).

PE vs Market: ZURN is good value based on its PE Ratio (13.4x) compared to the Swiss market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: ZURN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ZURN is overvalued based on its PB Ratio (1.6x) compared to the CH Insurance industry average (0.8x).


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?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZURN's forecast earnings growth (8.2% per year) is above the savings rate (-0.2%).

Earnings vs Market: ZURN's earnings (8.2% per year) are forecast to grow slower than the Swiss market (9.3% 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 (-3.8% per year).

High Growth Revenue: ZURN's revenue is forecast to decline over the next 3 years (-3.8% 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 (13.5%).


Next Steps

Past Performance

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

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZURN has high quality earnings.

Growing Profit Margin: ZURN's current net profit margins (5.8%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: ZURN's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: ZURN's earnings growth over the past year (11.6%) exceeds its 5-year average (6.6% per year).

Earnings vs Industry: ZURN earnings growth over the past year (11.6%) underperformed the Insurance industry 11.6%.


Return on Equity

High ROE: ZURN's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Zurich Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: ZURN's short term assets ($61.8B) exceed its short term liabilities ($45.5B).

Long Term Liabilities: ZURN's short term assets ($61.8B) do not cover its long term liabilities ($322.6B).


Debt to Equity History and Analysis

Debt Level: ZURN's debt to equity ratio (35.7%) is considered satisfactory.

Reducing Debt: ZURN's debt to equity ratio has increased from 35.1% to 35.7% over the past 5 years.

Debt Coverage: ZURN's debt is well covered by operating cash flow (37.5%).

Interest Coverage: ZURN's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


Next Steps

Dividend

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

5.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZURN's dividend (5.41%) is higher than the bottom 25% of dividend payers in the Swiss market (1.8%).

High Dividend: ZURN's dividend (5.41%) is in the top 25% of dividend payers in the Swiss market (3.88%)


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: With its reasonable payout ratio (73.7%), 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 (74.8% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Insurance industry.

Management

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

4.0yrs

Average management tenure


CEO

Mario Greco (61 yo)

4.42yrs

Tenure

US$9,300,000

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 ($USD10.10M) is above average for companies of similar size in the Swiss market ($USD6.65M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mario Greco
Group CEO & Member of the Executive Committee4.42yrsUS$9.30m0.042%
$ 21.4m
George Quinn
Group CFO & Member of the Executive Committee6.25yrsno data0.030%
$ 15.4m
Claudia Dill
CEO of Latin America & Member of the Executive Committee3.92yrsno data0.010%
$ 5.1m
Kristof Terryn
Group COO & Member of Executive Committee4.08yrsno data0.010%
$ 5.3m
Urban Angehrn
Group Chief Investment Officer & Member of Executive Committee5.08yrsno data0.011%
$ 5.6m
Jeffrey Dailey
CEO of Farmers Group8.58yrsno data0.013%
$ 6.6m
John Howell
CEO of Asia Pacific & Member of the Executive Committee3.83yrsno data0.0054%
$ 2.8m
James Andrew Shea
CEO of Commercial Insurance & Member of the Executive Committee3.83yrsno data0.0030%
$ 1.5m
Alison Martin
CEO of EMEA & Bank Distribution and Member of Executive Committeeno datano data0.0025%
$ 1.3m
Kathleen Savio
CEO of North America & Member of the Executive Committee2.83yrsno data0.0043%
$ 2.2m
Peter Giger
Group Chief Risk Officer & Member of Executive Committee0.83yrno datano data
Richard Burden
Head Investor Relations & Rating Agency Managementno datano datano data

4.0yrs

Average Tenure

55yo

Average Age

Experienced Management: ZURN's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Halbherr
Director1.33yrsUS$255.00k0.00024%
$ 123.5k
Dame Alison Carnwath
Independent Director8.42yrsUS$380.00k0.0021%
$ 1.1m
Monica Mächler
Independent Director7.33yrsUS$300.00k0.0018%
$ 926.1k
Michel Liès
Independent Chairman of the Board2.33yrsUS$1.50m0.0032%
$ 1.6m
Jeffrey Hayman
Independent Director4.42yrsUS$360.00k0.0011%
$ 591.7k
Joan Lordi Amble
Independent Director5.33yrsUS$300.00k0.0014%
$ 735.7k
Christoph Franz
Independent Vice Chairman2.33yrsUS$400.00k0.0020%
$ 1.0m
Catherine Bessant
Independent Director3.42yrsUS$300.00k0.00079%
$ 406.4k
Barry Stowe
Director1.33yrsUS$255.00k0.00024%
$ 123.5k
Jasmin Staiblin
Director1.33yrsUS$255.00k0.00082%
$ 421.9k
Kishore Mahbubani
Independent Director5.33yrsUS$300.00k0.0014%
$ 735.7k
Wilson Toneto
Chairman of Brazilian Unit9.58yrsno datano data

3.9yrs

Average Tenure

63yo

Average Age

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 been diluted in the past year, with total shares outstanding growing by 2.3%.


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: CHF51.449b
  • Shares outstanding: 148.91m
  • 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
ZURN NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNOct 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 Analysis2020/08/05 21:03
End of Day Share Price2020/08/04 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.