ZURICH (dpa-AFX) - Switzerland-based insurance business Zurich Insurance Group AG (ZURVY) on Thursday said it was on track to deliver on its 8 percent EPS growth target, underpinned by Property & Casualty top-line growth, improved margins in Retail, growth in preferred lines in Life, Farmers Exchanges turn-around as well as expense discipline.
The P&C Retail segment is expected to benefit from customer value initiatives and rate increases. Customer loyalty, product density, rate increases, and underwriting actions are seen as the key drivers contributing to the earnings growth from the segment.
The P&C Commercial segment is expected to show top line growth in middle market and selected lines e.g., Accident & Health as well as benefit from continued rate increases and indexation.
The Life business is also expected to record continued growth in protection and unit-linked businesses. The company believes it has a growing and well diversified Life franchise, relatively immune to interest rate volatility. The company is targeting a CSM growth of approximately 4 percent per annum from the segment. The company expects Protection growth in Latin America, Investment contracts AuM growth, Cost-income ratio improvement, expense efficiency and divestments as key drivers of EPS growth from the segment.
An improved expense discipline is also seen as a key driver for the growth in EPS.
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