Zurich Earnings: Raises Dividend and Announces a New Buyback

Zurich Insurance has reported a net income of $4.4 billion for 2023, or $29.96 in basic EPS. These figures are slightly below the $4.6 billion and $30.96 per share that we forecast respectively, but slightly ahead of company-compiled consensus. Zurich’s board is proposing a dividend of CHF 26 per share, higher than we estimated, and is supplementing this distribution with a share buyback of up to CHF 1.1 billion. Zurich’s buoyant results have been driven by a 7% rise in business operating profit in the property and casualty division as the unit has kept its underwriting quality and reserve strength stable. Commercial insurance, one of the moaty parts of Zurich’s business, at 90.7%, delivered a better result than the division combined. The life business has reported a double-digit rise in operating profit as sales have been particularly strong in retail products across Spain through the firm’s joint venture with Banco Sabadell. Sales of protection in the Asia-Pacific region and sales of unit-linked products in South America have also helped. Farmers Group's operating profit has risen 10% over the year, with mid-single-digit growth in the top line as the fee margin increased after Zurich acquired and integrated the MetLife business.