Zurich Increases Key Profit Target

Zurich Financial Services Group has revised its strategic direction to the market with the announcement that its mid-term target for its key financial metric, increasing the BOP (business operating profit) (after tax) ROE (return on equity) to 16 percent from 12 percent.

The new target, to be announced at an analyst presentation in Zurich, “reflects the proven financial and operating strengths Zurich has achieved over the last four years, as well as a strategic focus on profitable growth in the world’s most attractive insurance markets,” said the bulletin.

Under the direction of CEO James J. Schiro (the first American to head the Group), Zurich has emerged from difficult times to become a major international player. It “aspires to become a top-five insurer globally,” said the bulletin, and to that end it is “strengthening its market positions in mature and emerging markets, expanding its capital-light and fee-income business, and positioning Zurich as the employer of choice for the insurance industry globally.”

Schiro noted that the “revised ROE target does not represent a change in our aspiration but rather a continuation of our journey to become the leading global group in our chosen markets.”

The new “target is supported by growth and efficiency initiatives, which will be discussed at the investors’ conference today,” said the bulletin. The conference can be followed live on the Group’s web site at: www.zurich.com, and will subsequently be available for video replay. The presentations will also be available for download. The presentation and the subsequent Q&A session will start at 11:00 CEDT and end by 16:30 CEDT. The replay will be available from approximately 19:00 CEDT.