Zurich: all targets exceeded with 'strong' 2019 results

(CercleFinance.com) - Zurich said it has exceeded all its targets with "strong" 2019 results, prompting the Swiss insurer to propose an increased dividend for its shareholders.


This morning, the financial group reported an increase in 2019 operating profit and said it will raise its dividend to 20 Swiss francs per share due to an improved business mix, reduced volatility and higher profitability.

Its business operating profit (BOP) came in at 5.3 billion dollars last year, up 16% compared with 2018, driven in particular by a strong underwriting performance in its property and casualty (P&C) business.

The unit's operating profit has jumped 38% year-on-year on the back of an improved underwriting performance and higher investment results, Zurich said.

These results were well-received by investors on Thursday, despite the reservations made by UBS analysts.

"We see limited scope for EPS upgrades on this result, at a premium valuation," the broker noted.

The Zurich share is currently up 1.8% on Switzerland's blue-chip benchmark, the SMI index.

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