Zurich Insurance Group (ZURN) CMD 2025 summary

Strategy and Financial Targets

• Confident in achieving 2027 targets: >9% EPS CAGR, >$19B cash remittances, >23% ROE, and SST comfortably above 160%, based on bottom-up business plans and tangible actions.

• Focus on structural growth in Middle Market, Specialty, Life Protection, and transformation of Farmers, leveraging competitive advantages and proven track record.

• Disciplined execution of 2025-2027 priorities, targeting BOP > $4.2bn in Commercial, Middle Market GWP > $10bn, and sustainable profitability.

• Organizational changes and continuous investment in talent, technology, and agility aim to build long-term competitive advantage beyond 2027.

• Strong cash generation and shareholder returns remain central, supported by robust financial and operational strength.

Business Segment Performance and Growth Drivers

• Specialty is a core growth engine, now $9.5B, with a large addressable market, 5% GWP CAGR since FY-22, and mid-80s combined ratio.

• Middle Market has grown at 9% CAGR, with GWP rising from $7.7bn in FY-24 to >$10bn by FY-27, double-digit growth in major markets, and sub-90% combined ratio.

• Retail segment, especially in Germany, is recovering with improved pricing, retention, digital capabilities, and aims for a four-point combined ratio improvement by 2027.

• Life Protection targets 8% GWP CAGR, 17% BOP margin, strong growth in partnerships and unit-linked products, and a unified global model.

• Farmers has completed a turnaround, now targeting 8-9% gross retail premium growth, with all channels contributing and surplus ratio above targets.

Operational Excellence and Technology

• AI and data analytics drive pricing, claims management, and underwriting efficiency, improving customer experience and operational outcomes.

• Digital distribution, embedded insurance, and partnerships expand addressable markets and improve retention in Retail and Middle Market.

• Farmers leverages automation and generative AI to deliver $78m in savings, enhancing agent servicing and self-service productivity.