Zurich Insurance Group (ZURN) investor relations material

Strategic progress and future plans

• All business lines are ahead of targets, with strong growth in mid-market, specialty, and life protection, and retail returning to profitability with improved customer loyalty.

• 2027 targets include over $4.2B BOP in commercial, surpassing $10B in middle market GWP, Core EPS CAGR above 9%, Core ROE above 23%, and cumulative cash remittances above $19B.

• Organizational changes and global standardization focus on building long-term competitive advantage, especially in specialty, life, and retail.

• Specialty is now a global business unit, with targeted investments in talent and technology to capture growth in infrastructure, energy, and data centers.

• Farmers segment continues transformation for sustainable growth, focusing on capital-light, high-return, and cash conversion.

Financial performance and portfolio management

• Combined ratio improvements are driven by dynamic portfolio management, focusing on stable, high-margin segments like specialty and mid-market.

• Specialty, now $9.5B, delivers superior profitability with a mid-80s combined ratio and is expected to grow further, especially in construction, energy, and cyber.

• Middle market has grown at a 9% CAGR, with GWP rising from $7.7B in FY-24 to over $10B by FY-27, and sub-90s combined ratios in the U.S. and U.K.

• Retail in Germany has doubled BOP in three years, leveraging digital and technical capabilities, dynamic pricing, and expansion into direct and insurtech segments.

• Farmers has completed a major transformation, achieving a 15-point combined ratio improvement, strong surplus, and is now positioned for 8-9% gross retail premium growth.

Growth drivers and innovation

• Specialty and mid-market are prioritized for growth due to high barriers to entry, talent concentration, and strong demand from infrastructure, energy transition, and AI/data centers.

• AI and digitalization drive pricing, claims management, and underwriting efficiency, improving customer experience and operational outcomes across all segments.

• Zurich Santander leads LatAm bancassurance, using AI for personalized offers and retention, driving double-digit BOP growth.

• Farmers' growth is fueled by exclusive, independent, and direct channels, each expected to deliver high single- to double-digit growth rates.

• Ongoing portfolio quality actions, expense control, and reduced catastrophe exposure underpin strong cash generation and support exceeding the $19B remittance target.