Business Strategy and Outlook| Henry Heathfield |
Zurich Insurance is a good-quality insurance enterprise that offers commercial insurance to leading businesses around the world. The company embeds dedicated underwriters with clients, and that leads to a strong service culture and a helping hand that underlying clients can rely on. Risk mitigation is crucial in choosing an insurer to partner with, and Zurich’s reputation and expertise shine through in its retention rates. While the business has been through a bad patch in terms of under-reserving and risk concentration, its management team has been first rate in the swiftness and thoroughness of the executed turnaround. Further, the business is resilient to current conditions in capital markets and macroeconomics that can change the quality of its underwriting. We see this resilience not only in the company’s Swiss Solvency Test sensitivities but more importantly in its ability to action good price increases, highlighting Zurich’s overall pricing power.