Berenberg Expects Zurich Insurance's FY26 Outlook to Outpace Market Expectations; Buy Rating Maintained

03:17 AM EST, 01/08/2026 (MT Newswires) -- Berenberg reiterated its investment opinion on Zurich Insurance Group (ZURN.SW) amid expectations of a full-year 2026 outlook beat and a "stronger [dividend per share] hike than consensus" for 2025 from the Swiss insurer. "The reason for our confidence is that, while 2025 is only the first year of Zurich's 2025-27 updated three-year plan, given Zurich's preference for deals over buybacks, a higher DPS increase would clearly signal that Zurich's earnings and cash flow outlook are strong," the research firm said Thursday. Analysts expect a dividend per share of 31 francs for 2025, surpassing 28 francs from the previous year and the market forecast of 30 francs, noting the extra cost of a 1 franc increase in dividend per share is "very manageable." Berenberg also anticipates a 5% increase in sales and fees from the insurance company's Farmers business following the completion of its restructuring. Zurich Insurance's buy rating and price target of 642 francs were affirmed.