Allied Zurich

Zurich Insurance Group Ltd.

File:Zurich Insurance Group logo.svg Logo of Zurich Insurance Group
Company type	Public company
Industry	Insurance
Founded	1 May 1872 (1872-05-01) in Zürich, Switzerland
Headquarters	Zürich , Switzerland
Area served	Worldwide (215 countries and territories)
Key people	Mario Greco (CEO)
Products	General Insurance, Global Life, Farmers Insurance
Number of employees	55,000 (2023)
Website	www.zurich.com

Zurich Insurance Group Ltd. is a leading Swiss insurance company based in Zürich and stands as Switzerland's top insurer. As of , it holds the position of the 98th largest publicly listed company worldwide according to Forbes Global 2000 and was ranked 94th among Interbrand's top 100 global brands in 2011.

The company’s global operations are organized into three principal divisions: General Insurance, Global Life, and Farmers. Employing approximately 55,000 individuals, Zurich serves clients across 215 countries and territories. It is listed on the SIX Swiss Exchange and reported a shareholders' equity of $34.494 billion in 2012.

Zurich Insurance Company (1872–1998)

Originally established in 1872 under the name "Versicherungs-Verein" as a reinsurance entity at the behest of the "Schweiz" transport insurance firm, Zurich commenced business activities on 1 May 1873. The addition of accident insurance in 1875 led to its renaming as Transport- und Unfall-Versicherungs-Actiengesellschaft "Zurich". After experiencing considerable losses, Zurich withdrew from marine insurance by 1880.

By 1894, Zurich had obtained insurance licenses throughout Europe, including Austria, Germany, France, and Russia. The company's focus shifted from transport to accident and liability coverage, prompting another name change to "Zurich Allgemeine Unfall- und Haftpflicht-Versicherungs-Gesellschaft". In 1912, Zurich expanded into North America, initially establishing operations in key U.S. states such as New York and Illinois.

Growth continued through acquisitions and new subsidiaries: it acquired Spain’s "Hispania Compañia General de Seguros" in 1915 and founded "Vita Lebensversicherungs-Gesellschaft" in 1922, extending its reach into neighboring countries along with branches in the United Kingdom and Canada. By 1925, Zurich became the official insurer for all new Ford vehicles sold in Great Britain. The late 1920s and 1930s witnessed the formation of several entities including the "Zurich Fire Insurance Company of New York" and the reinsurance firm Turegum.

During the mid-20th century, Zurich expanded its holdings by acquiring stakes in companies located in Lisbon, Sydney, Buenos Aires, Nebraska, Maryland, Kansas City, São Paulo, Italy, Bermuda, Chile, and Mexico. In 1955, the company adopted the name «Zürich» Versicherungs-Gesellschaft, which remains its official designation.

Between 1955 and 1976, Zurich strategically acquired numerous firms such as Commonwealth General Assurance (Sydney), Iguazú Compañía de Seguros (Buenos Aires), Empire Fire and Marine Insurance (Nebraska), Fidelity and Deposit Company (Maryland), Universal Underwriters (Kansas City), Anglo Americana de Seguros Gerais (São Paulo), Minerva Group (Italy), Centre Reinsurance Holding (Bermuda), La Chilena Consolidada (Chile), and Seguros Chapultepec (Mexico).

In 1990, Zurich Investment Management (ZIM) was created to cater to redemption funds and institutional investors within Switzerland. The life insurance division saw a rebranding in 1993 when "Vita" became "Zürich Leben", unifying life insurance under the Zurich umbrella. The company briefly owned private bank Rüd, Blass & Cie., acquired in 1994 but divested in 2003 to concentrate on its core insurance business.

During 1996–1997, Zurich gained controlling interests in Kemper Corporation and Kemper Financial Service as well as majority ownership of New York-based Scudder, Stevens & Clark. These entities were consolidated into Scudder Kemper Investments, later renamed Zurich Scudder Investments. Following the September 11 attacks, Zurich announced plans to sell Zurich Scudder—then managing assets worth US$370 billion—to Deutsche Bank for US$2.5 billion; this deal was finalized in April 2002.

Zurich Financial Services (1998–2012)

In September 1998, Zurich combined forces with the financial branch of British American Tobacco to establish "Zurich Financial Services" (ZFS). This merger united the Swiss company "Zurich Allied AG," which was listed on the Swiss Market Index, with the British firm "Allied Zurich plc," listed on the FTSE 100 Index. By 2000, ZFS consolidated its structure under a single Swiss holding entity, exchanging the previous shares for new ones that were traded on both the SIX Swiss Exchange and the London Stock Exchange.

By 2002, ZFS had streamlined its operations to concentrate solely on insurance-related offerings. The company rebounded to profitability in 2003, posting a profit of $2.1 billion after experiencing a $3.4 billion loss the year before. Operating income surged by 93% to reach $2.3 billion. This positive momentum persisted, with net income climbing to $2.5 billion in 2004 and further increasing to $3.2 billion in 2005, accompanied by consistent growth in operating income. In 2008, ZFS reported net earnings of $3 billion, a decline from the record-setting $5.7 billion achieved in 2007.

In July 2011, Zurich entered into a 25-year strategic partnership with "Banco Santander SA" aimed at expanding its footprint within the Latin American insurance market.

Zurich Insurance Group (since 2012)

In April 2012, Zurich Financial Services Ltd returned to its original name, Zurich Insurance Group Ltd, signaling a renewed emphasis on its core insurance business.

In December 2015, CEO Martin Senn stepped down amid recent difficulties despite prior years of profitability; the interim chairman assumed the role of acting CEO. Subsequently, in January 2016, Mario Greco—formerly CEO of Generali—was named CEO, commencing his tenure in May.

Zurich Spain introduced Klinc in 2018, a digital insurance platform delivering online coverage for vehicles, life, homes, electronic devices, and micromobility solutions under the leadership of Stefano de Liguoro. In 2021, Klinc merged with doppo, a digital auto insurer. The platform also supports sustainable living initiatives through sponsorship of sporting events such as Orbea Monegros and Orbea Klasika.

In November 2021, Zurich enhanced its U.S. market position by acquiring Special Insurance Services, based in Texas.

On January 3, 2022, Zurich agreed to divest its Italian life and pension back book to Portuguese insurer GamaLife for an undisclosed amount; this transaction is projected to release approximately $1.2 billion in capital.

Following Russia’s invasion of Ukraine in 2022, Zurich discontinued using its logo featuring an encircled "Z" due to its association with symbols endorsing Russian military operations.

General Insurance

Zurich’s General Insurance division provides motor, home, and commercial insurance products tailored for individuals, small and medium-sized enterprises (SMEs), as well as multinational corporations.

Global Life

Zurich’s Global Life segment delivers life insurance along with savings, investment, and pension solutions. Life insurance policies in the United States are issued by Zurich American Life Insurance Company, which operates offices in Schaumburg (Illinois), Overland Park (Kansas), and New York City.

Farmers

The Farmers Insurance segment under Zurich includes Farmers Management Services, which offers non-claims management support to the Farmers Exchanges—entities not owned by Zurich. Additionally, Zurich owns Farmers RE, responsible for reinsuring business assumed from these exchanges. Farmers Insurance Group ranks as the third largest insurance group within the United States.

MetLife

In December 2020, Zurich completed the acquisition of MetLife's property and casualty insurance division for $3.6 billion. This transaction also established a decade-long collaboration agreement between Farmers and MetLife. Zurich funded $2.43 billion of the acquisition cost, while Farmers contributed $1.51 billion.

Zurich Ireland

Zurich Insurance plc (ZIP) functions as a fully owned Irish subsidiary and serves as Zurich Group’s principal legal entity for non-life insurance operations throughout Europe. ZIP conducts its business across the European Union from its headquarters in Ireland, supported by an extensive branch network.

In July 2023, ZIP declared a "cross-border conversion," transitioning from an Irish public limited company to a German Aktiengesellschaft (stock corporation).

Zurich North America

Zurich entered the United States and Canadian markets in 1912, establishing itself as a prominent commercial property and casualty (P&C) insurer. It caters to a broad range of sectors including automotive, agriculture, construction, manufacturing, and technology.

Zurich Kotak General Insurance Company

Based in Mumbai, Zurich holds a 70% ownership interest in Zurich Kotak General Insurance. This firm provides various non-life insurance products such as motor, health, travel, and home coverage.

Financial performance and information

Zurich Insurance Group Ltd is publicly traded on the SIX Swiss Exchange under the ticker symbol ZURN. As of December 2012, the company had issued 148.3 million fully paid registered shares held by 124,847 shareholders. Private individuals owned 24.7% of these registered shares (equivalent to 15.3% of all outstanding shares), foundations and pension funds accounted for 7.2% (4.5% of outstanding), while other legal entities possessed 68.1% (42.3% of outstanding shares).

Corporate social responsibility

Zurich has been recognized with several awards for its corporate social responsibility efforts, including Charity Times' "Best Insurance Services" accolade in 2009 and commendations for the Zurich Community Trust’s collaborative work addressing social challenges. Since its inception in 1972, the Trust has donated over £60 million to more than 600 charities annually, positively affecting over 80,000 individuals.

The company was among the first to receive the Community Mark from Business in the Community and has sustained this recognition for three consecutive years. In North America, Zurich commemorates employees lost during 9/11 through the annual K.A.M.P. awards program.

Zurich collaborates with SBP, a nonprofit focused on disaster relief, involving upwards of 1,000 employees and stakeholders in reconstruction projects following Hurricane Katrina and other calamities. In 2014, the Z Zurich Foundation awarded SBP $3 million to create a Disaster Resilience and Recovery Lab aimed at replicating effective disaster response strategies nationwide.

In 2011, Zurich launched My Community Starter, an online platform designed to promote community engagement initiatives. The following year, it committed $100 million to the Z Zurich Foundation to broaden its social impact programs.

In 2013, Zurich unveiled a global flood resilience initiative focused on reducing disaster risks at the community level in Mexico and Indonesia. This effort includes a strategic partnership with the International Federation of Red Cross and Red Crescent Societies (IFRC) to strengthen disaster preparedness worldwide.

Controversies

In 2006, Zurich Financial Services resolved a $171 million lawsuit concerning bid rigging and price fixing within the U.S. commercial insurance sector. This resolution encompassed Texas and eight additional states, with Zurich obligated to return approximately $122 million to commercial policyholders as part of a New Jersey class action settlement. Furthermore, the company addressed accusations related to improper "finite reinsurance" dealings by agreeing to pay $153 million in restitution and fines, while also pledging to implement corrective measures. The states involved in this agreement included New York, Connecticut, and Illinois. Zurich admitted that certain employees breached both company policies and ethical business standards.

In May 2007, Zurich Capital Markets, a subsidiary entity, agreed to a $16.8 million settlement with the United States Securities and Exchange Commission following allegations of aiding four hedge funds in concealing their identities to evade detection during frequent trading of mutual fund shares. The SEC highlighted that ZCM knowingly supported these clients' deceptive market timing strategies, generating significant fees at the detriment of long-term mutual fund investors.

In 2015, Dunbar Bank—Zurich’s UK-based subsidiary—faced scrutiny after rapidly calling in loans subsequent to Zurich’s withdrawal from the UK specialist property market in 2010. Small business owners and property developers reported that 71 Dunbar borrowers were driven into bankruptcy over five years—a higher figure than that of larger UK banks—with more than 95% of Dunbar’s loan portfolio categorized as impaired or overdue.

In 2019, the competition authority in Portugal, AdC, imposed fines on Zurich’s local branch for engaging in "cartel practices" connected to workplace accident, health, and auto insurance, alongside three other insurance providers.

See also

• Zurich Art Prize