ZURICH : Heading to the top-line

Research evidence excerpt

ZURICH : Heading to the top-line

EQUITIES

INSURANCE

ZURICH UNDERPERFORMPRICE* CHF563.0  TARGET PRICE CHF520 (DOWNSIDE 8%) TARGET 3%PRICE EPS 3%26e EPS 3%27e

ZURICH ADR UNDERPERFORMPRICE* USD36.0  TARGET PRICE USD33 (DOWNSIDE 8%) TARGET 3%PRICE EPS 3%26e EPS 2%27e

Heading to the top-line

Zurich’s topline grabbed the headlines15 MAY 2026

Securities Research Report Zurich’s quarterly statements are usually uneventful, however, this Q1 was eye catching. Reported

Production time: 12:15* (London time) P&C growth was 17% and LFL growth was 8%. This growth was broad-based with even

Research Analysts & Publishing Entities challenging areas seeing high single digit growth. Zurich remains highly confident on meeting or

Iain Pearce exceeding its 2027 EPS targets, with this growth supporting those targets. We increase our EPS

BNP Paribas London Branch expectations to incorporate stronger topline, however, we remain slightly below the 9% EPS growth+44 7435 660 628

iain.pearce@uk.bnpparibas.com target.

How is Zurich growing so strongly when growth is hard to come by?

Zurich’s growth has come despite a challenging market backdrop, particularly in Commercial

segments, and particularly in Zurich’s key Property lines of business. The US Commercial business

grew 10% on a lfl basis, with this growth being spurred by the growth of the NA Construction

business, which grew by 21%. Rate improvements in Commercial Auto, Liability and Financial

Lines have also supported growth, whilst the Retail business continues to trend positively.

What does it mean for margins?

It is reasonable to question the impact of this growth on margins. Firstly, significant growth is

occurring at a time when pricing is softening. Secondly, there are questions on mix. Retail has a

higher COR than Commercial.