uncertainty, Swiss composite insurer Zurich Financial Services
Group (Zurich) has announced ambitious new growth targets
spearheaded by its Global Life unit.
Speaking at an analyst presentation in late-May, CEO of the unit
Mario Greco announced that the new 2010 business value target has
been set at $1.2 billion, an increase of 41 percent compared with
the previous target of $850 million and an increase of 65 percent
compared with the $729 million achieved in 2007.
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Outlining Global Life’s strategy Greco explained that it would
involve a “refinement of our strategic direction.” This would
include a shift from the current position in which operations in
different countries function autonomously to one in which control
would rest in regional hubs and the development of new products
centralised in Dublin, Ireland.
Total targeted annual premium equivalent (APE) business by 2010 is
$5.7 billion compared with $2.9 billion in 2007. To achieve this
almost doubling of APE significant emphasis will be placed on
independent sources of new business, namely bancassurance,
independent financial advisers and brokers which are projected to
increase their combined contribution to APE by $1.5 billion to $3.1
billion in 2010.
Zurich has also indicated that bancassurance acquisitions are
probable, continuing a strategy that has recently seen two
acquisitions in the sector.
These were a 50 percent stake in Spanish bank Caixa d’Estalvis de
Sabadell’s life and general insurance units in April 2008 and full
control of Italian life insurer DWS Vita from one of its key
bancassurance partners Deutsche Bank in December 2007.
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By GlobalDataZurich also intends to focus on growing its market share in three
distinct customer groups: corporate life, expatriates and, in a so
far untapped market for the company, high net worth private banking
clients.
Zurich is striving to generate an APE of $1.7 billion from these
three sources by 2010, up from $700 million in 2007.
