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250% participation on Swiss insurance giants

Tuesday, 30 March 2021 Reading time : 3 minutes

The three Swiss insurance giants Swiss Life, Swiss Re and Zurich are picking up speed - all three shares are trading above last year, but still below their pre-pandemic peak.

Strong business models
The business models of the traditional insurance companies proved very resilient in 2020 despite the ongoing pandemic, not least because of the long-term orientation of the insurance sector. Swiss Life had to accept only minor profit losses in 2020, and analysts are already forecasting profit increases again for 2021. ZKB Equity Research sees upside potential and rates the share as "overweight".

Growth through expansion
Although Zurich Insurance had to report a major drop in profits, it has very good growth opportunities due to the market situation in the non-life segment. Planned business expansions - among others in high-growth emerging markets - the solid balance sheet and the strong cost orientation lead to a positive assessment by ZKB Equity Research "overweight".

Positive figures in prospect
The reinsurer Swiss Re is also seen as having significant profit potential. After the company posted a loss of more than CHF 800 million in 2020 due to the pandemic and related costs and provisions, analysts expect net income of more than CHF 2 billion in 2021 - which means that the share also has further upside potential.

Bonus Outperformance Certificate on Swiss Life, Swiss Re and Zurich

  • 250%* Participation rate
  • Barrier at 75%*
  • Bonus payment of 100%* of the nominal amount
  • 2-year term
  • Subscription period ends on 07.04.2021
  • Termsheet

*indicative



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