Zurich Insurance Group (Zurich) CEO Mario Greco (pic) has said the insurer believe sustainability is not just a story and will drive the business focus to meet the challenge of climate change.
He was speaking as the underwriter outlined ambitious new financial targets for 2020-2022, that will be presented at an investors’ day in London.
“Our performance over the past three years shows that our strategy is working,” he said. “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.”
“We have deepened our customer focus and employee engagement by listening to their needs through regular tailored surveys. We have empowered employees to drive change and given our younger generation a stronger voice in shaping our culture and innovative programs such as our Zurich Innovation Championship for start-ups. Employee satisfaction has jumped over the past three years.”
“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. We want the next generation to thrive. Sustainability is not just a story we tell; it is a principle that informs everything we do.”
“We will build on our achievements to further transform insurance, using technology to meet changing needs and create rewarding experiences. 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.”
Zurich has announced a range of targets for the 2020-2022 period. Selective growth and targeted capital allocation together with further improvements in productivity will, it said, allow Zurich to target a business operating profit after tax return on equity in excess of 14% and increasing over the 2020-2022 period. This is expected to lead to compound organic growth in earnings per share of at least 5% per annum over the period. The Group is set to deliver continued high levels of cash remittances, which are expected to be in excess of USD 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 statement added: “The insurance sector is undergoing a dramatic transformation and Zurich is preparing for a future of truly service-focused insurance. After having simplified its operations, the Group will shift its focus and investments to applications and products that will enhance the customer experience.
“Customers increasingly live within connected ecosystems, regularly interacting with providers with whom they share values and qualities. The Group strategy aims to leverage these relationships and increase engagement with customers to elevate Zurich as a trusted brand. Among Zurich’s new offerings are smart services for business and home protection, health and well-being programs, and travel insurance that keeps customers out of harm’s way.”