Best insurance stocks today - Zurich Insurance stock performance 2013 ; Zurich Insurance Group AG (ZURN), Switzerland�s biggest insurer, said it is making �good progress� to achieving targets for 2013 and expects to pay an �attractive� dividend.
The company, which is holding an investor day in Zurich, has cut costs by $200 million as it targets expense reductions in �mature markets� of $500 million by the end of next year, the insurer said today in an e-mailed statement.
Chief Executive Officer Martin Senn said he�s confident that Zurich Insurance�s cash flows and capital position will allow an �attractive and sustainable dividend.� The insurer may raise the dividend for 2012 to 17.50 francs ($18.85), according to data compiled by Bloomberg, after leaving the 2011 payout unchanged at an 11-year high of 17 francs a share.
The statement �should provide the market with reassurance on the high dividend paying capacity,� said Stefan Schuermann, a Zurich-based analyst with Vontobel Holding AG who has a hold rating on the stock.
The stock rose 1.8 percent to 234.90 francs as of 9:45 a.m. in Zurich trading, giving the company a market value of 34.8 billion francs. Zurich Insurance has increased 11 percent this year, lagging behind the Bloomberg Europe 500 Insurance Index (BEINSUR)�s 28 percent gain.
While the insurer is targeting a business operating profit after tax return on equity of 16 percent in the long term, Zurich Insurance reiterated today that in the current environment, a goal of 2 percentage points below that is more realistic.
Zurich Insurance reported a 62 percent decline in third- quarter profit earlier this month following a $550 million write-off at its German general insurance business.
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