(Reuters) – Zurich Insurance could exceed its targets for that 2022 financial year as the business has performed well throughout the COVID-19 pandemic, CEO Mario Greco said Wednesday.
Europe’s fifth-largest insurer set out ambitious three-year targets in November 2022, including raising its target for business operating profit after taxes on equity to a lot more than 14% from the previous goal of a lot more than 12%.
“We’re fully within the race to deliver to shareholders all of our targets for 2022. … We are able to even exceed those targets,” Mr. Greco told Reuters Breakingviews within an interview.
Insurers were gloomy about the outlook for that industry when the coronavirus outbreak took hold at the begining of 2022. However they have remained profitable after excluding COVID-19 from many policies and raising premiums.
Mr. Greco said the commercial insurance business, particularly, was prone to see strong growth this year, helped both by rising premium rates by improving demand for services for canopy.
Traditional markets such as Germany and Switzerland in addition to emerging markets for example Brazil and Indonesia have given growth opportunities, he explained.
But growth will not necessarily come via acquisition, he added.
“If you have to transform yourself, acquiring a business which needs transformation is not a great solution. Generally, we don’t think the reply to this is acquisition, it’s providing the customers with what they require.”
Zurich will report full-year 2022 results on Feb. 10.
