Zurich Insurance lifts dividend, cost cut targets

Thursday, 17. November 2016 09:04

Increased returns and consolidation with "rigorous discipline" are set in the strategy of Zurich Insurance Group Ltd. which was revealed on Thursday. The financial services firm said it its dividend target for the next three years was lifted to 75% of net income, while the current proposal of 17 francs was maintained. The savings measures against the 2015 basis aim at $1.5 billion by 2019, compared to $1 billion from the previous update, while the efforts come with increased focus on digitalization and technology as well as reviewing informational technology services, the announcement added.

"We will also differentiate ourselves by delivering first-class client service. We are reshaping the business for new market realities," chief executive Mario Greco said. The company stated it plans to bolster performance in underwriting and to limit exposure to risk.

The target for return on equity of after-tax operating profit for next year was set at the lower point of the 12% to 14% range from the three years through 2016. Cash remittances are forecasted at $9.5 billion through 2019, compared to $9 billion for the previous equivalent period.

Image: EPA / Steffen Schmidt

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