Zurich Insurance Group: Strong Growth, High Dividend Payout, Low Valuation Compared with Previous Years – Zürcher Kantonalbank Research Report

Key Takeaways

• 1.ZKB reiterates its Outperform rating on Zurich Insurance Group with a fair value of CHF 684 per share, offering approximately 16% upside from the current share price of CHF 588.60.
• 2.The pending acquisition of Beazley (expected to receive UK regulatory clearance and close in Q4 2026) has kept the valuation compressed, but completion should unlock upward consensus revisions and potential target upgrades in early 2027.
• 3.Zurich offers one of the sector's most attractive dividend yields, estimated at 5.4% (CHF 32.00/share) for FY26E and 6.0% (CHF 35.00/share) for FY27E, backed by a strong balance sheet with an SST solvency ratio of 266%.

Table of Contents

• Executive Summary
• In our view, the completion of the takeover could give the Zurich Insurance share a boost
• Valuation currently moderate
• Rating
• Investment Case
• SWOT Analysis
• Company profile
• 1 Business structure of Zurich Insurance Group
• 2 Positioning in the global insurance markets
• 2.1 One of the world's leading commercial insurers
• 2.2 Specialty business
• 2.3 Life insurance with better profit growth than its peers
• 2.4 Farmers with an extensive distribution network and a broad product mix
• 3 Targets
• 3.1 Financial and business targets for the 2025–27 strategy period
• 3.2 Targets for the four three-year strategic periods from 2016
• 3.3 Target achievement as at 1H26
• 4 Valuation
• 4.1 Valuation on a stand-alone basis
• 4.2 Peer group comparison
• 4.3 Historical valuation based on Bloomberg consensus data
• 5 Dividend situation remains favourable
• 6 High level of own funds solvency
• 7 Marsh statistics on insurance rates
• 8 Current situation at Zurich Insurance following the 1H26 results
• 8.1 Non-life insurance
• 8.2 Life
• 8.3 Farmers
• 9 Risks to our assessment
• 10 ESG summary
• 11 Financial figures

Report data

Key figures — as of September 22, 2026.