reports
- Henry Heathfield
- CFA
Zurich Insurance Reports In-Line Revenue in 1Q
Zurich Insurance reported results for the first quarter of 2018. These results focus on revenue and so provide little insight into the development of the business. We maintain our CHF 312 fair value estimate and narrow moat and stable moat trend ratings. The life division reported a more than 10% increase in annual premium equivalent and a new business margin and value of 25.2% and $273 million, respectively. New business is down marginally, with drivers of change coming from lower growth in EM...
- Henry Heathfield
- CFA
Against the cycle, Zurich Insurance is restoring its business to bette...
We are increasing our fair value estimate for Zurich Insurance to CHF 305 from CHF 290 per share to account for the time value of money and currency changes. We maintain our narrow moat and stable moat trend ratings. Zurich reported over a 5% increase in business operating profit, a measure it uses as a proxy for operations. Admittedly, this does account for the impact of hurricanes Harvey, Irma, and Maria, catastrophes that were beyond what was expected for 2017, though not outside of the long-...
- Henry Heathfield
- CFA
Against the cycle, Zurich Insurance is restoring its business to bette...
Zurich Insurance reported operating profit of USD 928 million in the first quarter, below our expectations. Ultimately, issues for the business still remain, and they all revolve around auto. We will maintain our CHF 264 fair value estimate per share and narrow moat rating. The Farmers unit saw a decline in new business count as the underlying exchanges and wider market continue to respond to a weak personal auto pricing market. Rate increases are being put through across the board, and this is ...
- Henry Heathfield
- CFA
Commercial and Auto Remain the Issue in Zurich Insurance Group's First...
Zurich Insurance reported operating profit of USD 928 million in the first quarter, below our expectations. Ultimately, issues for the business still remain, and they all revolve around auto. We will maintain our CHF 264 fair value estimate per share and narrow moat rating. The Farmers unit saw a decline in new business count as the underlying exchanges and wider market continue to respond to a weak personal auto pricing market. Rate increases are being put through across the board, and this is ...
- Henry Heathfield
Zurich Has Struggled Recently, but We Expect Improvement for This Moat...
We transfer coverage on Zurich Insurance with a fair value estimate of CHF 264 per share and assign a narrow moat rating. Zurich recently repeated some poor history, as $700 million of adverse development surfaced in the midst of a tentative $10 billion acquisition. Additionally, overconcentration of risk again led to a $275 million loss from the Tianjin port explosion. Sufficient reinsurance was not in place, and investors lost confidence in management. The firm brought in new CEO Mario Greco o...
- Brett Horn
Zurich Insurance Reports a Standard Set of Third-Quarter Results
Zurich Insurance reported a standard set of third-quarter results. Profitability in the quarter returned to pre-troubled 2015 levels, and we plan to maintain our fair value estimate of CHF 258 per share and no-moat rating. Expenses are continuing to fall as the business is maintaining actions to achieve a cost reduction of USD 300 million in 2016. Further growth has been delivered by Farmers via rate increases, but General Insurance continues to report profits below Zurich’s own expected level...
- Brett Horn
Zurich can get back on track but doesn't have a moat.
Zurich Insurance reported good first-half results after a disappointing full-year 2015. Restoration primarily stemmed from the profitability of the general insurance unit, and we plan to maintain our fair value estimate of CHF 258 per share, along with our no-moat rating. General insurance operating profit was 3.5% ahead of year-ago levels at $1.2 billion. Rate changes were solid and positive across the board, and the firm confirmed lower but sustainable loss ratios. Expense ratios were broadly ...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.