Zurich Insurance Group Ltd. is a Swiss insurance company, headquartered in Zürich, and the country's largest insurer.[2] As of 2024, the group is the world's 98th largest public company according to Forbes' Global 2000s list,[3] and in 2011, it ranked 94th in Interbrand's top 100 brands.[4]
Zurich is a global insurance company which is organized into three core business segments: General Insurance, Global Life and Farmers. Zurich employs 55,000 people, with customers in 215 countries and territories.[5] The company is listed on SIX Swiss Exchange. As of 2012, it had a shareholders' equity of $34.494 billion.[6]
Company history
Zurich Insurance Company (1872–1998)
The company was founded in 1872 as a reinsurance company under the name of "Versicherungs-Verein" and at the request of the "Schweiz" transport insurance company (which was founded in 1869 on the initiative of the "Schweizerischen Kreditanstalt"), a subsidiary of the Schweiz Marine Company. It was founded by people who were also board members of the "Schweiz" transport insurance company.[7]
The business activity began on 1 May 1873. In 1875, accident insurance was added. The company was renamed Transport- und Unfall-Versicherungs-Actiengesellschaft "Zurich". In 1880 Zurich abandoned the marine business following a significant loss.[8]
Throughout 1894, it acquired licenses to conduct business in Austria, Prussia, Denmark, Sweden, Norway, the rest of Germany, France, Belgium, the Netherlands, Spain, Poland, Russia, Italy, Luxembourg, and Liechtenstein. Due to the change in 1894 from
Core business segments
General Insurance
Zurich's General Insurance business serves individuals, small and medium-sized businesses and major multinational corporations with motor, home, and commercial products and services.
Global Life
Zurich's Global Life business offers life insurance,[29] savings, investment and pension products. In the United States life insurance is issued by Zurich American Life Insurance Company with offices in Schaumburg, Illinois; Overland Park, Kansas; and New York City.[30]
Farmers
Zurich's Farmers Insurance segment includes Farmers Management Services, which provides non-claims related management services to the Farmers Exchanges (not owned by Zurich). Zurich also owns the Farmers RE business which includes reinsurance assumed from the Farmers Exchange by the Group.
Zurich Ireland
Officially known as Zurich Insurance plc ('ZIP'), Zurich Ireland is a wholly owned subsidiary. ZIP is an Irish insurance company originally incorporated in 1950 and is Zurich Insurance Group's main legal entity for writing non-life insurance business in Europe. ZIP writes non-life insurance business across the European Union through its Irish head office and network of branches.[33]
In July 2023, it was announced that ZIP would undergo a "cross-border conversion" from a public limited company in Ireland to a Aktiengesellschaft (stock corporation) in Germany.[34]
Zurich North America
Zurich expanded into US and Canadian market in 1912 to become one of the leading commercial P&C insurance provider. It serves a diverse set of industries including automotive, agriculture, construction, manufacturing, technology and numerous others.[35]
Zurich Kotak General Insurance Company
Zurich Insurance owns 70% of Zurich Kotak General Insurance, headquartered in Mumbai. It offers non-life insurance products like motor, car, bike, health, travel, home insurance and others.[36]
Financial performance and information
Zurich Insurance Group Ltd ("Zurich") is listed on the SIX Swiss Exchange under the ticker ZURN. As of 1 December 2012 there were 148,300,123 fully paid registered shares[6] and 124,847 shareholders.[37] 24.7% of the holding of the registered shares were private individuals (15.3% of all outstanding shares), 7.2% were foundations and pension funds (4.5% of all outstanding shares) and 68.1% were other legal entities (42.3% of all outstanding shares).[37]
Corporate social responsibility
In 2009, Zurich was awarded Charity Times "Best Insurance Services"[38] and was shortlisted again in 2010. In 2012 the Zurich Community Trust (UK) won the Cross-Sector Partnership of the Year Award for its partnership with the treatment charity Addaction.[39]
According to its website, Zurich Community Trust has donated over £60 million since 1972, with the goal of addressing key social issues. It has supported over 600 charities a year, making a measurable impact on the lives of over 80,000 people.[40] Zurich was one of the first recipients of the Community Mark from Business in the Community which it has successfully retained for three years.[41]
On 24 October 2002, Zurich North America hosted a ceremony at the 9/11 Tribute Center honoring the winners of its 2012 K.A.M.P. awards, a program created as a living legacy to the four employees killed on 9/11: John Keohane, Peggy Alario, Kathy Moran and Ludwig Picarro.[42]
Controversies
In 2006, Zurich Financial Services settled a $171 million case relating to bid rigging and price fixing in the United States.[47] "Businesses shopping for commercial insurance were deceived into believing they were getting the best deals available," said Abbott. "The whole anti-competitive scheme was an intentional smoke screen by several insurance players to artificially inflate premiums and pay improper commissions to those who brokered the deals." The states included in the settlement were Texas, California, Florida, Hawaii, Maryland, Massachusetts, Oregon, Pennsylvania and West Virginia. Zurich is also required to pay about $122 million[48] in refunds to commercial policyholders in a New Jersey class action lawsuit[49] settlement. Zurich Financial Services settled a bid-rigging and improper "finite reinsurance" transactions probe.[50]
Zurich Financial agreed to pay $153 million in restitution and penalties and agreed to a series of reforms. Zurich apologized and acknowledged that "certain of its employees violated both acceptable business practices and Zurich's own
See also
- Zurich Art Prize
External links
References
- Annual Report 2021 Zurich^
- "Zurich Says Board Will Propose Ackermann as Chairman", Bloomberg.com, 13 March 2012; accessed 27 April 2014.^
- "The World's Biggest Public Companies" Forbes.com; retrieved 7 March 2020.^