Zurich Insurance today pledged to “build a clear leadership position in the insurance industry” by pledging to pursue more ambitious financial goals over the next three years.
The Swiss insurer said it now aims to increase its annual earnings per share at a rate of 8% per year over the period 2023-25.
This should allow the insurance giant to generate a return on equity (RoE) of over 20%, Zurich said, as it plans to pay out £13.5bn to shareholders over the next three years. .
The insurer said it aimed to achieve its new financial targets while maintaining its current capital position, aiming for a Swiss solvency test (SST) ratio of at least 160%.
Zurich’s decision to set new financial targets came as the insurer said it was currently on track to exceed the targets it had previously set for the 2023-25 period.
The Swiss giant’s strong performance comes as rising insurance premiums have benefited the company by generating double-digit revenue growth.
In August, Zurich reported a 25% increase in first-half operating profit, helping the company post its second-highest operating profit on record and its highest since 2008.
The Swiss company’s strong results came as insurers have grappled with a series of large losses over the past two years, stemming from Covid, natural disasters and Russia’s invasion of Ukraine.
Zurich Chief Executive Mario Greco said the company’s “successful strategy” had “consistently succeeded” in the “context of a global pandemic and its economic fallout, the growing impact of climate change and of the war in Ukraine”.
“Now we plan to further accelerate our strategy to establish a clear leadership position in the insurance industry,” Greco said.