Zurich may exceed its monetary targets for 2022: CEO – Enterprise Insurance

(Reuters) – Zurich Insurance could exceed its targets for fiscal 2022 as business performed well during the COVID-19 pandemic, CEO Mario Greco said on Wednesday.

Europe's fifth largest insurer set itself ambitious three-year targets in November 2019, including raising the target for return on equity after tax from more than 12% to more than 14%.

“We are in full swing to meet all of our goals for 2022, our shareholders. … We can even exceed these goals, "Greco told Reuters Breakingviews in an interview.

When the coronavirus outbreak hit in early 2020, insurers looked bleak for the industry. But they remained profitable after banning COVID-19 from many policies and increasing premiums.

Mr Greco said the commercial insurance business in particular is likely to see strong growth this year, supported by both rising premium rates and increasing demand for insurance coverage.

Traditional markets like Germany and Switzerland as well as emerging countries like Brazil and Indonesia offer growth opportunities, he said.

But growth won't necessarily come through acquisitions, he added.

“If you need to transform yourself, acquiring a business in need of transformation is not a good solution. In general, we don't believe that the solution to this lies in acquisition, but in offering customers what they need. "

Zurich will publish its results for the full year 2021 on February 10th.

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