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Zurich Insurance Group AG ZURN

Morningstar Rating
CHF 473.80 −0.80 (0.17%)
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Company Report

For European Insurance Dividends, Stick to Good-Quality Companies

For some, if not many investors, dividends are important. This is no less the case in European insurance. However, while investing for dividends can seem straightforward, we think there is more to it than just hunting for stocks that provide the highest yield. Within our European insurance list of 18 companies, we recommend Admiral, Allianz, Munich, and Zurich as the best options for investors looking for a solid, stable, reliable, and real yield. In establishing this list, we rule out companies that have had a track record of omitting dividends and those that have frequently made dividend cuts that we think are meaningful.

Price vs Fair Value

ZURN is trading at a 166% premium.
Price
CHF 474.60
Fair Value
CHF 192.00
Uncertainty
Low
1-Star Price
CHF 828.33
5-Star Price
CHF 389.00
Economic Moat
Rsdcrbc
Capital Allocation
Xsplgcrvg

Bulls Say, Bears Say

Bulls

Zurich’s Farmers Management Services is a low capital requirement, high margin, stable, and wide-moat intangible asset business.

Bears

Zurich is underweight midmarket commercial insurance versus some North American peers.

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News

Trading Information

Previous Close Price
CHF 474.60
Day Range
CHF 472.20475.80
52-Week Range
CHF 401.70492.90
Bid/Ask
CHF 473.60 / CHF 473.80
Market Cap
CHF 68.22 Bil
Volume/Avg
22,495 / 279,661

Key Statistics

Price/Earnings (Normalized)
14.33
Price/Sales
1.10
Dividend Yield (Trailing)
5.48%
Dividend Yield (Forward)
5.48%
Total Yield
8.14%

Company Profile

Zurich is a multiline insurer that writes business across both life and non-life insurance and also owns Farmers Management Services. The company was founded in 1872, originally as a marine reinsurer, to provide reinsurance to its parent company. Zurich subsequently expanded into transport and accident insurance and then rode the wave of transport technology innovation that drove rising demand for insurance. One of Zurich’s early principles was that setting prices too low would result in unfair claims handling that would be damaging to both customers and Zurich. Over the years, Zurich has sought to combine customer goodwill through claims, and a sufficient premium. Zurich is one of the most successful insurers in Europe.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Large Core
Total Number of Employees
59,593

Competitors

Valuation

Metric
ZURN
AV.
AXAHY
Price/Earnings (Normalized)
14.338.929.53
Price/Book Value
3.271.451.39
Price/Sales
1.100.400.82
Price/Cash Flow
92.95
Price/Earnings
ZURN
AV.
AXAHY

Financial Strength

Metric
ZURN
AV.
AXAHY
Quick Ratio
Current Ratio
Interest Coverage
15.164.5915.59
Quick Ratio
No chart available

Profitability

Metric
ZURN
AV.
AXAHY
Return on Assets (Normalized)
1.37%0.46%1.19%
Return on Equity (Normalized)
19.33%15.72%16.11%
Return on Invested Capital (Normalized)
11.85%10.33%6.80%
Return on Assets
ZURN
AV.
AXAHY
See how this stock stacks up to its competitors with Morningstar Investor

Insurance - Diversified Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Berkshire Hathaway Inc Class A
BRK.A
KkkyxvkbsxBvtv$876.0 Bil
Berkshire Hathaway Inc Class B
BRK.B
MtjlphndQdc$876.0 Bil
Allianz SE ADR
ALIZY
WwlvflqsStzm$110.5 Bil
AXA SA ADR
AXAHY
NfkzjhpkZhd$77.1 Bil
Zurich Insurance Group AG ADR
ZURVY
KcqfbttrPsdvnlm$75.8 Bil
American International Group Inc
AIG
GhnphqvrMgwzt$49.9 Bil
Sun Life Financial Inc
SLF
QfckfcbpWyp$28.7 Bil
Aviva PLC ADR
AVVIY
XqhmcymhBjys$16.4 Bil
Aegon Ltd ADR
AEG
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Ageas SA/ NV ADR
AGESY
TbnxyWrpb$8.6 Bil

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