The payment of a dividend representing approximately 75% of net profit is guaranteed in the short term, according to President Michel Liès.
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Zurich Insurance intends to continue paying high dividends to its shareholders in the future. “A high dividend represents a commitment to our shareholders. We do not intend to change this in the short term, ”said chairman of the insurer’s board of directors, Michel Liès.
Confiding in an interview published on Tuesday on the site of Finanz und Wirtschaft, Mr. Liès specifies that the policy of Zurich Insurance consists in paying a dividend representing 75% of the net profit. “The 75% payment rate, however, is not an absolute figure,” continued the former managing director of Swiss Re.
The board of directors proposed a dividend of 20 Swiss francs for the financial year 2019, a level that can be paid in a sustainable manner, the extremely stable business model of the insurer established in Zurich representing the guarantee, according to M Lies.
While paying its owners, Zurich Insurance does not forget to acquire it for acquisitions.
“Since 2017, we have invested approximately $ 4 billion in business acquisitions. This has strengthened our market position in Latin America, Indonesia and Australia, ”said the chairman of the supervisory body.
He added that the objective is not so much to make large acquisitions, but rather to take over companies suitable for Zurich. In the first case, it is always possible to solicit additional funds from shareholders through a capital increase, he added.
Liès said emerging markets such as India, Indonesia and Latin America offer the greatest opportunities for growth. The need for cover grows as prosperity increases. In order to stimulate expansion in these countries, Zurich is also inspired by the success of the Chinese direct insurer Ping An.
Faced with the new coronavirus pandemic, Zurich Insurance wants to stick to the financial targets set until 2022. They are not in question, said Mr. Liès. “Because of our global stature, we can still develop in many markets, at least more strongly than their respective leaders”.
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