Zurich Sets New Financial Targets, Renewing Focus on Profitability, Positioning for Future Success
During the three years from 2017-2019, the Group will target:
* A business operating profit after tax return on equity (BOPAT ROE) in excess of 12% from 2017, growing over the period
*
* Cash remittances in excess of
* A Zurich Economic Capital Model (Z-ECM) ratio of 100% - 120%, unchanged from the previous financial targets
* A new dividend policy with a target payout ratio of around 75% of net income after tax attributable to shareholders (
Group Chief Executive Officer
"We feel very confident about delivering on our ambitious financial targets and we are committed to drive the business with rigorous discipline. We have the right management team in place, we have set the right accountability and we are engaging our employees to play their full part in
Strategy to deliver long-term competitive advantage
The strategy will focus on increasing profitability, consolidating the Group's position as a leading global underwriter for P&C and Life. Based on
At the operating level,
In Commercial,
The Group will enhance underwriting performance to improve profitability in commercial through more disciplined underwriting tools, through initiatives to reduce portfolio volatility by limiting risk exposures and through talent management initiatives, training and career development.
In Retail,
Farmers is a key part of
Clear financial targets and dividend policy
The Group aims to achieve net savings of
Even as the Group delivers these improvements in efficiency, there will be investments for the future, primarily in new technologies, systems and data analytics to enhance Group efficiency and improve the customer proposition.
These changes will allow
The Group intends to maintain its current attractive dividend policy and proposes a target pay-out ratio of around 75% of net income attributable to shareholders, subject to a minimum of
Further information
There will be a media conference call in English starting at 09.00 CET with Group Chief Executive Officer
The Investor Day will commence at 11.30 CET and will be live streamed on www.zurich.com. Media may listen in. The investor presentation will be published at 11.00 CET and a replay of the webcast will be available as of 20.00 CET on www.zurich.com.
Disclaimer and cautionary statement
Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of
All references to 'Farmers Exchanges' mean
It should be noted that past performance is not a guide to future performance and that interim results are not necessarily indicative of full year results.
Persons requiring advice should consult an independent adviser.
This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction.
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