ZFSVF - Zurich Insurance: Supportive Fundamentals With EPS Growth And Defensive CHF Yield
2025-02-22 08:04:37 ET
Summary
- Zurich Insurance Group posted record earnings in FY 2024, with a robust operating profit and a strong Solvency II ratio of 252%.
- Concerns about wildfire impacts are mitigated. Zurich estimates a manageable pre-tax impact of $200 million, maintaining confidence in its financial stability.
- Despite no buyback announcement, Zurich increased its dividend by 8% to CHF 28, showing strong capital returns and a defensive yield.
- With EPS growth of 9% per year, our buy is confirmed.
Following the Q4 printout, we expect a positive reaction to Zurich Insurance Group ( ZURVY ). The company posted record earnings with a strong delivery, setting the pace for the new plan in light of the higher 2024 base. In our last assessment, Zurich was A Buy Ahead Of The Capital Market Day . Our supportive buy rating was backed by 1) a favorable pricing environment, 2) additional shareholder remuneration, and 3) manageable natural catastrophe losses. The company reached our target price, and taking advantage of the Investor Day new estimates and today's results , we still believe there is room for growth....
Zurich Insurance: Supportive Fundamentals With EPS Growth And Defensive CHF Yield