Remuneration

At Zurich, our employees help shape the organization for the future, delivering a positive customer experience, valuing and developing its people, and acting responsibly toward society and the planet. Our remuneration philosophy is an integral part of our overall employee offering, supporting them in making a positive contribution to the company's success and toward achieving our goals.

Guided by established remuneration principles, we strive to operate a balanced and effectively managed remuneration system that provides competitive total remuneration opportunities to attract, retain, motivate, and reward our employees. Our remuneration system and practices are embedded in the Group’s Enterprise Risk Management framework. They take into account legal and regulatory requirements, as well as market developments, and include key safeguards:

• Long-term, deferred remuneration: Utilized for the most senior positions and key risk-takers.
• Risk-based performance assessment: Applied to the members of the Executive Committee (ExCo), Group leadership team, and Group key risk-takers.
• Conflict-of-interest-free variable remuneration: Designed for employees in control and assurance functions, with awards linked to Group profitability metrics rather than to the profitability of the businesses where they execute control and perform assurance activities.
• Risk adjustments and malus/clawback provisions: Ability to apply risk adjustments and enforce malus (all participants) and clawback (ExCo members and some additional participants) provisions for variable remuneration.
• Minimum share ownership requirements: Applied to the Board, Group CEO, and other ExCo members.

Our incentive plans link awards to relevant performance criteria selected to support the execution of the Group’s strategy. The total amount of variable remuneration awarded or allocated is considered alongside the Group’s long-term economic performance and sustainability framework.

Short-term incentive Plan (STIP)

The awards under the Group’s short-term incentive plan (STIP) are based on:

• Business profitability and customer experience: Assessed using business-relevant profitability and customer metrics – primarily business operating profit (BOP) and transactional net promoter score (TNPS), a global best-practice standard for measuring customer experience.
• Employee performance and development: A structured approach guides employees throughout the year in goal setting, career development, and year-end reviews, to achieve individuals' goals and exhibit behaviors in line with the Group’s code of conduct, purpose and values.
• Executive Committee (ExCo) performance: Assessed against a balanced mix of financial, customer, people, planet and strategic measures supporting long-term business strategy and sustainable performance. This includes evaluating execution against strategic priorities, sustainability factors, and a risk-based performance review.

Long-term incentive plan (LTIP)

The LTIP is designed to promote risk awareness and sustainable business operations among those holding senior positions, particularly those influencing the Group's risk profile. The Board reviews performance criteria annually to ensure alignment with the Group’s strategic and financial targets and approves them ahead of each performance period.

• For the 2024-2026 performance period, the LTIP includes an operational CO2-equivalent (CO2e) emissions metric weighted at 10 percent.
• For the 2025-2027 and 2026-2028 performance periods, sustainability-related performance criteria comprise 20 percent of our overall metrics. This includes a financed emissions intensity (10 percent weight) alongside the operational CO2e emissions metric (10 percent weight). Financed emissions intensity is defined as metric tons of CO2e emissions per U.S. dollar million invested. This metric represents the reduction in financed emissions intensity (scope 1 and 2) of the Group’s listed equity and corporate bond holdings. Further information is available in the remuneration report of the Annual Report 2025.