Strategic overview

Our strategy positions Zurich for success over the long term. It builds on our unique footprint, solid financial position, balanced portfolio, trusted brand and the skills, strengths and expertise of our people.

“We are well on track to fully achieve our 2017 to 2019 targets. We look ahead with great confidence to the next phase of our development.”

Mario Greco
Group Chief Executive Officer

Our purpose, values and strategy

Our Purpose

Why
  • To protect
    you
  • To inspire
    confidence
  • To help you reach
    your full potential

Our values

How
  • We are one team and value the diversity and potential of every individual.
  • We embrace new ideas to exceed our customers’ expectations.
  • We deliver on our promises and stand up for what is right.

Our strategy

What
  • Focus on customers

    Improve service quality and customer experience.

  • Simplify

    More agile and responsive organization.

  • Innovate

    Better products, services and customer care.

Find out more about our strategy
www.zurich.com/strategy

Financial targets

Long term targets

Our strategy to deliver long-term competitive advantage focuses on continuing to increase profitability and consolidating the Group’s position as a leading global underwriter for property and casualty (P&C) and life insurance. The Group will expand customer relationships, simplify the business and significantly reduce costs.

At the operating level, Zurich will continue to reduce complexity and improve accountability. Zurich will enhance technical excellence and strengthen its go-to-market-approach for commercial customers. It will also seek to enhance its offerings to individuals by monitoring and aiming to increase customer satisfaction and retention.

The Farmers Exchanges1 will continue to focus on improving customer satisfaction and retention rates.

2017–2019 targets

BOPAT ROE2

>12%
and increasing

Z-ECM3

100120%

Net cash remittances4

>USD 9.5bn
(cumulative)

Net savings

USD 1.5bn
by 2019 compared with 2015 baseline

1 The Farmers Exchanges are owned by their policyholders. Farmers Group, Inc., a wholly owned subsidiary of Zurich Insurance Group, provides certain non-claims administrative, management, and ancillary services to the Farmers Exchanges as attorney-in-fact and receives fees for its services.
2 Business operating profit (after-tax) return on shareholders’ equity. Excludes unrealized gains and losses.
3 The Zurich Economic Capital Model (Z-ECM) is an internal measure of capital adequacy.
4 Cumulative net cash remittances to Zurich Insurance Company Ltd, after deducting central costs, over the 2017 to 2019 period.

Our strengths

A solid financial position

We have a solid financial position. That can reassure our customers that we will be there when they need us to handle their claims, our shareholders that we are financially stable, and our colleagues that we have a well-earned positive reputation as a business and an employer.

A balanced business

Our business is balanced between Europe and North America. The Latin American contribution is growing and the business in Asia Pacific is expanding. Our portfolio is healthy and balanced between Property & Casualty, and Life. Both are sustainable and profitable businesses. Farmers provides stable income. This diversification positions us well to weather economic and market volatility, and gives us a strong presence across customer segments and product lines.

A trusted brand, talented people

Our brand is strong and reinforces our reputation for being able to understand the risks our customers face and to structure offerings that meet their unique needs. Our global brand and reputation help us to continue to attract the most talented people in the industry.

Delivering on our strategy in 2018

Focus on customers

  • We increased use of customer feedback through the ‘transactional’ net promoter score (TNPS) and achieved improvements in TNPS across all four business regions.
  • We gained access to new customers through acquisitions in Latin America, Australia and Indonesia and expanded our Cover-More travel assistance platform globally.
  • We added distribution agreements giving us access to nearly 30 million new potential customers.

Simplify

  • We continued to streamline our business by consolidating data centers and decommissioning hundreds of IT and business applications.
  • We launched a global program open to all employees, ‘Make the Difference,’ to simplify and improve how we work, receiving over 400 suggestions in the first year.
  • We introduced our first Group-wide internal social media platform which gives employees across our businesses an easy way to share ideas and collaborate.

Innovate

  • We set up a separate company, Zurich Insurance Mobile Solutions, to quickly develop and deploy digital platforms on a commercial scale.
  • We established a new unit, Zurich Customer Active Management, to generate insights from the data we gather to allow us to better provide solutions to customers.
  • We entered agreements with established and startup technology companies to develop new customer solutions.