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FINANCIALS: Zurich: Equity Hit By Weak P&C Ratio; Less Of A Credit Issue

FINANCIALS
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Zurich Insurance (ZURNVX: A2/A+) is lagging peers in equity world but trading broadly in line in credit.

  • Credit stats: Swiss Solvency ratio came in at 232%, slightly below consensus of 236% but similar to Mar-24. The leverage ratio has ticked up very marginally but credit stats are, unsurprisingly, solid.
  • The issue for the equity market appears to surround the P&C combined ratio which has a big uptick for NatCat losses, which pushed it above where consensus was hoping for. There have been some 1H24 events (e.g. German floods) but we’d note that this is more a growth/profitability issue, than a credit question. Further, life and Farmer’s (in the US) both more then offset such that results were a pre-tax consensus beat.
  • Guidance is being maintained but rates are seen as moderating across 2H24 in the key US market.

A conf call is scheduled for 1200 (London time).

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Zurich Insurance (ZURNVX: A2/A+) is lagging peers in equity world but trading broadly in line in credit.

  • Credit stats: Swiss Solvency ratio came in at 232%, slightly below consensus of 236% but similar to Mar-24. The leverage ratio has ticked up very marginally but credit stats are, unsurprisingly, solid.
  • The issue for the equity market appears to surround the P&C combined ratio which has a big uptick for NatCat losses, which pushed it above where consensus was hoping for. There have been some 1H24 events (e.g. German floods) but we’d note that this is more a growth/profitability issue, than a credit question. Further, life and Farmer’s (in the US) both more then offset such that results were a pre-tax consensus beat.
  • Guidance is being maintained but rates are seen as moderating across 2H24 in the key US market.

A conf call is scheduled for 1200 (London time).