Zurich stock gains: Zurich sees only limited impact of IFRS 17 on Group results | 09/27/22
There are no effects whatsoever on cash inflows, dividend policy and the rate of the Swiss solvency test.
The changes only report on financial reporting, Zurich announced in a communiqué on Tuesday. The business activities, the business model or the strategy remained unchanged. The introduction of the new standards is expected to have limited impact on revenue and earnings.
The group’s equity will be slightly lower in the takeover, Zurich continued. This applies mainly to the recognition of deferred profits as a liability in the form of a contractual service margin for life insurance business and a newly introduced concept of risk adjustment.
Introduction on 2023
Shortly after noon, Zurich will provide information on the effects of IFRS 17 at an analysts’ conference. The new standard aims to make insurance companies’ financial reporting more consistent, transparent and comparable.
Zurich will report according to the new standard from the financial year 2023, starting with the update on the first three months of the year in May 2023. The group’s new financial targets for the period 2023 to 2025 would also be based on IFRS 17 and will be announced at the Investors’ Day on April 16 Presented on November 2022, the group announced.
At the close of trading on the SIX, Zurich shares were up 1.08 percent to CHF 402.90.
Zurich (awp)