Banks

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Economy

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Currencies

Asia markets tentative ahead of Opec meeting

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Banks, Financial

RBS emerges as biggest failure in tough UK bank stress tests

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Banks

Barclays: life in the old dog yet

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Categorized | Insurance

Zurich Insurance lays out new financial targets


Posted on November 17, 2016

Zurich Insurance has laid out new financial targets for the first time since Mario Greco became chief executive in March.

The company, which brought in Mr Greco after it suffered problems in its general insurance business last year, says it aims to make a return on equity of 12 per cent from 2017 onwards. It also wants to cut $1.5bn of costs, insurance correspondent Oliver Ralph reports.

Zurich also set out a new dividend policy, with a target payout ratio of 75 per cent of post tax profits.

The reach its new targets, Zurich has promised a more disciplined approach to underwriting in its commercial business and improvements to distribution in its retail business.

Mr Greco said:

We feel very confident about delivering on our ambitious financial targets and we are committed to drive the business with rigorous discipline. We have the right management team in place, we have set the right accountability and we are engaging our employees to play their full part in Zurich’s successful future. With this, we are well positioned to deliver sustainable improvement in earnings which will support an increase in the return of capital to shareholders over time.