Europe's fifth largest insurer said its cost-saving plan was proceeding as planned, with operating profit (BOP) rising by 20% to $4.6 billion (3.6 billion pounds) last year, largely thanks to potential growth in the business as a whole, especially improvements in life and insurance in property and casualties.
Nevertheless, premiums have risen slightly from $49.1 billion in 2017 to $49.5 billion, and it is unlikely that they will increase substantially this year. "I expect revenue to remain stable in 2019," financial director George Quinn told reporters.
Zurich said that its financial target of accumulating net cost savings of $1.1 billion between 2017 and 2019 was being successfully achieved.
"We also have about $400 million (savings) to provide pre-tax expenses. "This is certainly the biggest driver of the additional improvements we expect to see from the group in 2019," Quinn said. By 0940 GMT, the insurance company's share price rose 0.8%. Analysts said the overall performance was positive.
"With the emergence of basic progress and the improvement of investment returns, ZIG seems to be on track to achieve its financial objectives for 2019. Vontobel analysts said in a report that we believe stock prices are 11.4 times earnings per share and 1.44 times book value in FY2017, and we believe that good news will be priced and our holding ratings confirmed.
Quinn said the increase in dividends from 18 francs last year to 19 francs was a "new floor". We don't expect that to decrease. "
He also played down the possible interruption of Britain's exit from the EU next month. "We are ready for all the different arrangements that come here," he said.
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