Zurich Insurance: Crédit Suisse confirms rating

(CercleFinance.com) - Credit Suisse has reduced its Business operating profit forecast for 2020 by around 11%, although confirms its outperform recommendation on the Zurich Insurance stock, along with its target price of 380 Swiss francs (vs.
current price of 290 Swiss francs).

"Following recent industry estimates of global insured Covid-19 losses, we are assuming a net additional loss of ~US$500mn in the non-life insurance busines," the broker says.

"We believe Zurich remains solidly capitalized and see no risk to our longer-term estimates".

"We believe Zurich's exposure to event cancellation / BI is likely to be lower than for some other companies, but it could see elevated losses arising from workers compensation claims in the US in the healthcare sectors," it adds.

"we think these losses are highly manageable in the context of Zurich's annual earnings, balance sheet and relative to some other insurers in the sector" Crédit Suisse says.


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