Zurich Insurance Co. Ltd.

The stable outlook reflects our view that, over the next two years, ZIC's globally diversified business profile will allow it to source strong and stable earnings and remain among the leading performers in its GMI peer group. At the same time, ZIC will continue to target comfortable capital buffers under its risk-tolerance policies, which will keep capitalization within our very strong capital adequacy range. Although unlikely, we might consider lowering the ratings if: ZIC cannot maintain a record of operating performance that compares well with its GMI peer group. This could be the case if ZIC's return on equity falls below 8% for a prolonged period, while its property/casualty (P/C) combined (expense and loss) ratio significantly exceeds 100%. This might

...Zurich Insurance Co. Ltd.'s (ZIC) earning performance remained very strong in first-half 2024, benefitting from the group's price adjustments. The group maintained strong growth momentum in first half of 2024, reflecting its diversified multiline insurance operations and its position as a leader in global commercial insurance. The group's capital adequacy is above the 99.95% confidence level. ZIC maintains a conservative asset structure and a sophisticated, well-established risk management framework. Zurich's focus on capital-light unit-linked and protection contracts, its solid earnings, and the sizable earnings contribution from Farmers Management Services lead to the group having lower earnings volatility than peers. We expect capital adequacy to exceed the 99.95% confidence level through 2025. The combination of very strong business risk and very strong financial risk profiles leads to an anchor of '##/##-'. We choose the higher anchor score of '##' in recognition of Zurich's leading...

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