LSE:0QP2

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 Analysis

Established dividend payer and good value.


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: 0QP2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.8%

0QP2

-12.6%

GB Insurance

-2.4%

GB Market


1 Year Return

-2.0%

0QP2

-38.6%

GB Insurance

-25.9%

GB Market

Return vs Industry: 0QP2 exceeded the UK Insurance industry which returned -38.7% over the past year.

Return vs Market: 0QP2 exceeded the UK Market which returned -25.9% over the past year.


Shareholder returns

0QP2IndustryMarket
7 Day-6.8%-12.6%-2.4%
30 Day-16.2%-24.0%-18.0%
90 Day-22.9%-35.2%-29.1%
1 Year4.3%-2.0%-31.7%-38.6%-22.2%-25.9%
3 Year38.0%15.3%-26.9%-39.7%-16.0%-26.6%
5 Year37.5%-0.3%-21.2%-41.1%-4.5%-26.1%

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

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0QP2 (CHF301.7) is trading below our estimate of fair value (CHF638.47)

Significantly Below Fair Value: 0QP2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0QP2 is good value based on its PE Ratio (11.1x) compared to the Insurance industry average (11.8x).

PE vs Market: 0QP2 is good value based on its PE Ratio (11.1x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: 0QP2 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 0QP2 is overvalued based on its PB Ratio (1.3x) compared to the GB Insurance industry average (1.2x).


Next Steps

Future Growth

How is Zurich Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0QP2's forecast earnings growth (4.7% per year) is above the savings rate (0.5%).

Earnings vs Market: 0QP2's earnings (4.7% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: 0QP2's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0QP2's revenue is expected to decline over the next 3 years (-5.8% per year).

High Growth Revenue: 0QP2's revenue is forecast to decline over the next 3 years (-5.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QP2's Return on Equity is forecast to be low in 3 years time (14%).


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: 0QP2 has high quality earnings.

Growing Profit Margin: 0QP2's current net profit margins (5.8%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 0QP2's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: 0QP2's earnings growth over the past year (11.6%) exceeds its 5-year average (6.6% per year).

Earnings vs Industry: 0QP2 earnings growth over the past year (11.6%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: 0QP2's Return on Equity (12%) is considered low.


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: 0QP2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0QP2's debt is covered by short term assets (assets are 4.7x debt).


Financial Institutions Analysis

Asset Level: 0QP2's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 0QP2 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0QP2 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0QP2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0QP2 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0QP2 has an appropriate level of bad loans.


Next Steps

Dividend

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

6.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0QP2's dividend (6.55%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: 0QP2's dividend (6.55%) is low compared to the top 25% of dividend payers in the UK market (7.43%).


Stability and Growth of Payments

Stable Dividend: 0QP2's dividends per share have been stable in the past 10 years.

Growing Dividend: 0QP2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.7%), 0QP2's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QP2's dividends in 3 years are forecast to be covered by earnings (73.3% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Mario Greco (60yo)

4.08s

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 ($USD9.51M) is above average for companies of similar size in the UK market ($USD5.59M).

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 Committee4.08yrsUS$9.30m0.0013% $613.6k
George Quinn
Group CFO & Member of the Executive Committee5.92yrsno data0.021% $9.8m
Claudia Dill
CEO of Latin America & Member of the Executive Committee3.58yrsno data0.0093% $4.3m
Kristof Terryn
Group COO & Member of Executive Committeeno datano data0.0095% $4.3m
Urban Angehrn
Group Chief Investment Officer & Member of Executive Committee4.75yrsno data0.0049% $2.2m
Jeffrey Dailey
Member of the Executive Committee8.25yrsno data0.0081% $3.7m
John Howell
CEO of Asia Pacific & Member of the Executive Committee3.5yrsno data0.0034% $1.6m
James Andrew Shea
CEO of Commercial Insurance & Member of the Executive Committee3.5yrsno datano data
Kathleen Savio
CEO of North America & Member of the Executive Committee2.5yrsno data0.0032% $1.5m
Peter Giger
Group Chief Risk Officer & Member of Executive Committee0.50yrno datano data

3.6yrs

Average Tenure

54yo

Average Age

Experienced Management: 0QP2's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dame Alison Carnwath
Independent Director8.08yrsUS$380.00k0.0018% $833.4k
Monica Mächler
Independent Director7yrsUS$300.00k0.0016% $714.3k
Fritz Gerber
Honorary Chairmanno datano datano data
Michel Liès
Chairman of the Board2yrsUS$1.50m0.0017% $773.9k
Jeffrey Hayman
Independent Director4.08yrsUS$360.00k0.00091% $416.7k
Joan Lordi Amble
Independent Director5yrsUS$300.00k0.0012% $544.9k
Christoph Franz
Vice Chairman2yrsUS$400.00k0.0016% $718.9k
Catherine Bessant
Independent Director3.08yrsUS$300.00k0.00055% $251.8k
Kishore Mahbubani
Independent Director5yrsUS$300.00k0.0012% $544.9k
Wilson Toneto
Chairman of Brazilian Unit9.25yrsno datano data

5.0yrs

Average Tenure

65yo

Average Age

Experienced Board: 0QP2's board of directors are considered experienced (5 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: 0QP2
  • Exchange: LSE
  • Founded: 1872
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: CHF45.790b
  • 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 company operates through Property & Casualty Regions, Life Regions, Farmers, and Non-Core Businesses segments. It offers car, home, travel, general liability, life and critical illness, and other insurance products; and saving and investment, and pension and retirement planning products. The company also provides property, casualty, management or professional liability, credit risk, political risk, marine, automotive, and cyber risk insurance products. In addition, it offers employee benefit insurance products; and reinsurance services, as well as provides non-claims and ancillary services to the farmers’ exchanges. It serves individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. The company sells its products through agents, brokers, and bank distribution channels. Zurich Insurance Group AG was founded in 1872 and is based in Zurich, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 23:36
End of Day Share Price2020/04/06 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.