Zurich Insurance Group has outlined a new set of financial targets for the 2020 to 2022 period, including business operating profit after tax return on equity in excess of 14%.
The company announced the new growth plans just one week on from its Q3 results release, which put it on track to exceed its targets for the 2017 to 2019 period.
As part of the new strategy, Zurich will focus on enriching its retail offering, increasing its customer base, and further improving the quality of its commercial portfolio.
The targets are also expected to result in compound organic growth in earnings per share of at least 5% per annum over the three-year period.
Zurich said it is set to deliver continued high levels of cash remittances, which are expected to be in excess of $11.5 billion over the three years, while retaining its strong capital position with an unchanged target Z-ECM ratio of 100%-120%.
The company’s dividend policy will remain unchanged, targeting a pay-out ratio of around 75% of net income attributable to shareholders.
“Our performance over the past three years shows that our strategy is working,” said Group CEO Mario Greco.
“Our rapid progress is reflected in a total shareholder return of 96% since the start of 2016. We have made Zurich simpler, more agile and efficient, and strengthened the foundations for our long-term success.”
The 2022 targets will also see Zurich increasingly focus on leveraging data insights and sustainability goals, including the use of 100% renewable power in all global operations.
“We remain committed to supporting our customers, employees and communities in facing the challenges of a fast-changing world such as climate change and cyber risks,” Greco continued.
“We will build on our achievements to further transform insurance, using technology to meet changing needs and create rewarding experiences,” he explained.
“I’m confident that our strong management team and engaged employees will allow us to deliver innovative and personalized services for our customers and further attractive returns for shareholders.”