Zurich in excellent financial condition, exceeds solvency requirements
- Swiss Solvency Test ratio as per January 1, 2019 at 221 percent, well in excess of regulatory requirements
- Strong balance sheet as a result of disciplined capital management
- Zurich is well placed to further drive its customer-led strategy and to create value for its stakeholders
- Zurich maintained its strong credit ratings, including Standard and Poor’s “AA–/stable”
Zurich Insurance Group (Zurich) has today published its Financial Condition Report 2018, which highlights once more the Group’s financial strength and excellent balance sheet.
As of January 1, 2019, Zurich’s Swiss Solvency Test ratio stood at 221 percent1, up from 216 percent one year earlier. This is well in excess of solvency requirements, demonstrating the continued strength of Zurich’s balance sheet and reflecting the disciplined capital management of recent years.
“Our capital management strategy is working. In 2018 we continued to reallocate capital from non-core areas to strengthen our business in key geographies,” said George Quinn, Group Chief Financial Officer. “Our financial strength allows us to deliver attractive returns to our shareholders, while allowing us to deliver our customer-led strategy as well as create sustainable value for customers, employees and other stakeholders.”
The Financial Condition Report is a regulatory disclosure required by law and specified by the Swiss Financial Market Supervisory Authority (FINMA) and provides comprehensive information about the solvency and financial strength of the Group. It includes information about business performance, governance, Zurich’s risk profile, valuation for solvency purposes and a description of how the Group manages capital.
The Group maintained its strong credit ratings in 2018. As of December 31, 2018, the insurance financial strength rating of Zurich Insurance Company Ltd, the main operating entity of Zurich, was judged “AA–/stable” by Standard and Poor’s, “Aa3/stable” by Moody’s, and “A+/stable” by A.M. Best.
1 The Swiss Solvency Test (SST) ratio as of January 1, 2019, is calculated based on the Group’s internal model, which is subject to the review and approval of the Swiss Financial Market Supervisory Authority (FINMA). The full year ratio is filed with FINMA and is subject to its approval.
Further information
Please find Zurich’s Financial Condition Report 2018 report here.
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Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With about 54,000 employees, it provides a wide range of property and casualty, and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at 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 Zurich Insurance Group Ltd or the Zurich Insurance Group (the «Group»). Forward-looking statements include statements regarding the Group’s targeted profit, return on equity targets, expenses, pricing conditions, dividend policy and underwriting and claims results, as well as statements regarding the Group’s understanding of general economic, financial and insurance market conditions and expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and plans and objectives of Zurich Insurance Group Ltd or the Group to differ materially from those expressed or implied in the forward looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in key markets; (ii) the risk of a global economic downturn; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity experience; (vii) policy renewal and lapse rates; and (viii) changes in laws and regulations and in the policies of regulators may have a direct bearing on the results of operations of Zurich Insurance Group Ltd and its Group and on whether the targets will be achieved. Zurich Insurance Group Ltd undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.
All references to «Farmers Exchanges» mean Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and their subsidiaries and affiliates. The three Exchanges are California domiciled interinsurance exchanges owned by their policyholders with governance oversight by their Boards of Governors. Farmers Group, Inc. and its subsidiaries are appointed as the attorneys-in-fact for the Farmers Exchanges and in that capacity provide certain non-claims administrative and management services to the Farmers Exchanges. Neither Farmers Group, Inc., nor its parent companies, Zurich Insurance Company Ltd and Zurich Insurance Group Ltd, have any ownership interest in the Farmers Exchanges. Financial information about the Farmers Exchanges is proprietary to the Farmers Exchanges, but is provided to support an understanding of the performance of Farmers Group, Inc. and Farmers Reinsurance Company.
It should be noted that past performance is not a guide to future performance.
Persons requiring advice should consult an independent advisor.
This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction.
THIS COMMUNICATION DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS.