Zurich Insurance Group AG (Zurich Insurance Group AG) Interest Coverage

: 13.57 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's EBIT by its Interest Expense. Zurich Insurance Group AG's EBIT for the six months ended in Dec. 2023 was $3,080 Mil. Zurich Insurance Group AG's Interest Expense for the six months ended in Dec. 2023 was $-227 Mil. Zurich Insurance Group AG's interest coverage for the quarter that ended in Dec. 2023 was 13.57. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Zurich Insurance Group AG's Interest Coverage or its related term are showing as below:

ZURVY' s Interest Coverage Range Over the Past 10 Years
Min: 8.75 Med: 13.65 Max: 16.21
Current: 15.19

ZURVY's Interest Coverage is ranked better than
52.63% of 323 companies
in the Insurance industry
Industry Median: 13.52 vs ZURVY: 15.19

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Zurich Insurance Group AG Interest Coverage Historical Data

The historical data trend for Zurich Insurance Group AG's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Zurich Insurance Group AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

16.21

14.52

16.02

13.10

15.16

Zurich Insurance Group AG Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage																17.37	14.81	11.38	16.74	13.57

Competitive Comparison

For the Insurance - Diversified subindustry, Zurich Insurance Group AG's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Zurich Insurance Group AG Interest Coverage Distribution

For the Insurance industry and Financial Services sector, Zurich Insurance Group AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zurich Insurance Group AG's Interest Coverage falls into.

Zurich Insurance Group AG Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Zurich Insurance Group AG's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Zurich Insurance Group AG's Interest Expense was $-456 Mil. Its EBIT was $6,914 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,955 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	6914	/	-456
	=	15.16

Zurich Insurance Group AG's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Zurich Insurance Group AG's Interest Expense was $-227 Mil. Its EBIT was $3,080 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,955 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3080	/	-227
	=	13.57

The higher the ratio, the stronger the company's Financial Strength is.

Zurich Insurance Group AG (OTCPK:ZURVY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Zurich Insurance Group AG Interest Coverage Related Terms

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Zurich Insurance Group AG (Zurich Insurance Group AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Zurich Insurance Group AG (OTCPK:ZURVY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ZFSVF:USA ZURN:Mexico ZURNz:UK 0QP2:UK ZFI1:Germany ZURN:Switzerland

Address

Mythenquai 2, Corporate Center, Zurich, CHE, 8002

Website

https://www.zurich.com

Zurich is a multiline insurer that writes business across both life and non-life insurance and also owns Farmers Management Services. The company was founded in 1872, originally as a marine reinsurer, to provide reinsurance to its parent company. Zurich subsequently expanded into transport and accident insurance and then rode the wave of transport technology innovation that drove rising demand for insurance. One of Zurich's early principles was that setting prices too low would result in unfair claims handling that would be damaging to both customers and Zurich. Over the years Zurich has sought to combine goodwill in claims with a sufficient premium. Zurich is now one of the most successful insurers in Europe.