Zurich Insurance Group full year 2025 results investor and media presentation/Balance sheet and capital
| Item | Amount |
|---|---|
| FY-24 shareholders' equity | 25,472 |
| NIAS | +6,798 |
| Dividend | −4,665 |
| Currency translation adjustment | +1,007 |
| Net unrealized gains/losses | −80 |
| Treasury share transactions | −143 |
| Pension plans and other | +125 |
| FY-25 shareholders' equity | 28,515 |
Total change: +12% (USD +3,043m).
| Component | FY-24 | FY-25 |
|---|---|---|
| Shareholders' equity (incl. NCI) | 52% | 52% |
| CSM (after tax) | 19% | 20% |
| Risk adjustment (after tax) | 4% | 4% |
| Subordinated debt | 17% | 17% |
| Senior debt | 8% | 7% |
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Slide 50: Commentary – Balance sheet and capital structure
Shareholders' equity increased by USD 3.0bn compared to year end 2024. This was driven by strong NIAS of USD 6.8bn, which more than compensated for the payment of the Group dividend of USD 4.7bn, as well as a favorable movement in net unrealized gains and losses.
CSM after tax of USD 11.9bn was USD 1.8bn higher than in FY-24, driven by favorable movements in Life.
Risk adjustment after tax of USD 2.1bn increased by USD 0.1bn, mainly due to foreign exchange movements.
The stock of subordinated debt increased by USD 0.9bn to USD 9.8bn, reflecting the issuance of USD 750m of dated subordinated debt in May, the redemption of USD 300m of subordinated debt in October, and foreign currency movements.
Senior debt increased by USD 0.2bn to USD 4.2bn as foreign currency movements more than offset the benefit from the redemption of USD 0.2bn commercial papers.
The proportion of debt in the IFRS based capital structure decreased to 24.1%, from 24.8% in FY-24. Group leverage improved and remains well in line with the Moody's Aa range, with an estimated financial leverage of 20.7% as of FY-25.
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Slide 51: Low average debt cost and balanced maturity profile
| Component | FY-24 | FY-25 | FY-24 cost | FY-25 cost |
|---|---|---|---|---|
| Subordinated debt | 8.9 | 9.8 | 4.1% | 3.9% |
| Senior debt | 4.0 | 4.2 | 1.8% | 1.9% |
| Total debt | 12.9 | 14.0 | 3.2% | 3.3% |
| 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 |
|---|---|---|---|---|---|---|
| 1.9 | 0.4 | 1.0 | 0.6 | 0.9 | 1.7 | 2.4 |
| 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 |
|---|---|---|---|---|---|---|
| 0.5 | 0.8 | 0.3 | 0.6 | 0.2 | 0.8 | 0.6 |
Additional maturities beyond 2039: USD 0.4bn (2040), USD 0.6bn (2041), USD 0.3bn (later years).
Note: Maturity profile based on first call date for subordinated debt and maturity date for senior debt, excluding commercial papers.
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Slide 52: Very strong capital position, SST ratio well in excess of the 160% floor
| FY-16 | FY-17 | FY-18 | FY-19 | FY-20 | FY-21 | FY-22 | FY-23 | FY-24 | FY-25e |
|---|---|---|---|---|---|---|---|---|---|
| 204% | 216% | 221% | 222% | 182% | 212% | 267% | 234% | 253% | 259% |
Minimum target capitalization: ≥160%.
| Scenario | Impact (ppts) |
|---|---|
| Interest rate +50bps | +9 |
| Interest rate −50bps | −10 |
| Equities +20% | +6 |
| Equities −20% | −7 |
| Credit spreads +100bps (incl. mortgages) | −12 |
| Credit spreads excl. EUR sovereign +100bps | −8 |
Notes:
- Sensitivities are best estimates and include the impact on the pension plans in the UK. For the interest rate sensitivities, shocks are applied to the liquid part of the yield curve.
- Credit Spreads (CS) include mortgages. CS sensitivities of available capital include changes to the volatility adjustment applied to interest rates curves.
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Slide 53: Well diversified capital base by business segment
| Item | Amount |
|---|---|
| Shareholders' equity | 28.5 |
| Eligible subordinated debt | 9.8 |
| Contractual service margin | 15.2 |
| Risk adjustment | 6.8 |
| Adjustments to best estimate liabilities | 2.7 |
| Other adjustments | 0.2 |
| Net intangibles and deferred taxes | −11.2 |
| Market value margin | −3.5 |
| Dividend accrual | −5.4 |
| Share buyback accrual | 0.0 |
| Available Financial Resources (AFR) | 43.2 |
| Risk type | Share |
|---|---|
| Market risk | 54% |
| Premium and reserve risk | 27% |
| Business risk | 7% |
| Natural catastrophe risk | 6% |
| Life insurance risk | 4% |
| Other credit risk | 2% |
Risk capital by business: Property & Casualty 60%, Life 38%, Other (Farmers, Group Functions & Operations, Non-Core) 2%.
Notes:
- Net intangibles excluding insurance acquisition cash flows, gross of non-controlling interests.
- Split is based on the contribution to the aggregated risk.
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Slide 54: Strong cash remittances from all business segments
| Segment | FY-23 | FY-24 | FY-25 | Normalized % of NIAS |
|---|---|---|---|---|
| P&C | 3.3 | 3.2 | 5.4 | ~90% |
| Life | 0.9 | 1.7 | 1.7 | ~75% |
| Farmers | 1.7 | 1.7 | 1.6 | ~95% |
| Group Functions & Operations | −1.0 | −1.1 | −1.3 | — |
| Non-Core Businesses | −0.1 | 0.0 | −0.1 | — |
| Total | 4.8 | 7.1 | 7.4 | ~85% |
| 3.4 |
Normalized cash remittances in % of NIAS: Total ~85%.