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Zurich Insurance Group AG - Stock Quote ZURN

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Morningstar's Zurich Insurance Group AG Stock Analysis

Valuation
Currency in CHF
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

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5-Star Price

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Economic Moat

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Capital Allocation

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Zurich Is a Rare Structurally Advantaged Multiline Insurer

Business Strategy and Outlook

| Henry Heathfield, CFA |

Since some problems started to arise a little over half a decade ago, Zurich has shifted its organization to an underwriting culture. The model that the business operated on previously was one that valued process and key performance indicators over expertise and autonomy of its product leaders, its underwriters. In taking strong measures and paring back its problematic books of business, not concerned about earnings growth or retention, management set a new standard and path for the business. If it wasn't going to be profitable from underwriting, Zurich avoided writing. This can be seen quite clearly in the tilting of the portfolio away from longer-tail lines. As Zurich carried out these actions, we think it entrenched its position. Where lines were dropped and books tiered, the best and deepest relationships for Zurich were elevated. Here the concept of trust cannot be underestimated.

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Key Statistics - ZURN

Zurich Insurance Group AG's Company Profile

Business Description

Zurich Insurance is a large primary insurer with three main divisions: general insurance, life insurance, and Farmers Management Services. Over the years, we believe Zurich has carved out two strong franchises. First, we think its commercial insurance offering is one of the best in the industry. The business has a strong focus on client relationships and underwriting. Farmers Management Services is an administration services offering serving the Farmers Exchanges. This intangible asset serves a mutual-like insurance body and, with its near 700-basis-point management fee, delivers double-digit economic returns.

Contact
Mythenquai 2, Corporate Center
Zurich, 8002, Switzerland
T +41 446252525
Industry Insurance - Diversified
Most Recent Earnings Dec 31, 2016
Fiscal Year End Dec 31, 2021
Stock Type
Employees 54,914