Zurich Insurance (Attractive*) promised to deliver a sustainable and attractive dividend, as the group set new priorities and outlined actions to improve profitability. Switzerland’s largest insurer signaled to be ready to sell some businesses to bolster earnings growth and improve profitability of certain businesses.
This means, that “we will either turn around or exit those that are under-performing,” Chief Executive Officer Martin Senn said at an investors meeting. Zurich Insurance lowered its profit goal, targeting return on equity (ROE), a measure of profitability, to a more “realistic” 12-14% in the three years through 2016. That was down from a previous 16%. The shares rose as much as 2.6%, closing 1% higher in Zurich trading.