On behalf of the board of directors and the executive committee, I would like to welcome you to the 24th annual general meeting 2024 of Zurich Insurance Group Limited. I'm delighted to see you here today. I would like to thank you for your commitment, your loyalty, and the time you are investing in our company. I would like to start this AGM by introducing our team. On the podium, from left to right from your perspective, we have Claudia Cordioli, our Group Chief Financial Officer. Next to her, Mario Greco, our Group Chief Executive Officer. Kathin Höckel , Secretary to the Board of Directors. Katja Roth Pellanda, Group General Counsel. The following members of the board of directors are also present: Joan Amble, Catherine Bessant, Dame Alison Carnwath, Christoph Franz, Michael Halbherr, Sabine Keller-Busse, Monica Mächler, Kishore Mahbubani, Peter Maurer, Jasmin Staiblin , and Barry Stowe.
In particular, I would like to welcome John Rafter. He is a leader with excellent industry and specialist knowledge, and I'm delighted to be able to propose him for election as a new member of the board of directors. Also present today from the executive board are Ericson Chan, Group Chief Information and Digital Officer. Peter Giger, Group Chief Risk Officer. Alison Martin, CEO EMEA and Bank Distribution. Laurence Maurice, CEO Latin America. Cara Morton, CEO Zurich Global Ventures. Tulsi Naidu, CEO Asia Pacific. Sierra Signorelli, CEO Commercial Insurance. Kristof Terryn, CEO North America. And Stephan van Vliet , Group Chief Investment Officer. Also present are Raphael Keller as representative of the independent proxy Anwaltskanzlei Keller AG. And Isabelle Santenac and Thomas Fiebig as representatives of the auditors Ernst & Young AG. Before we move on to the agenda, a few formal points.
The annual general meeting was convened by publication of the invitation in the Swiss Official Gazette of Commerce on the 15th of March 2024, together with the full agenda. The 2023 annual report, which includes the management report, the annual and consolidated financial statements, the remuneration report, the sustainability report, and the audit report, has been available online since the 15th of March 2024. No requests for items to be included on the agenda were received from shareholders. I note that today's annual general meeting has been convened in due time and form, and that a quorum is present. I appoint the Secretary of the Board of Directors, Kathin Höckel , to act as the minute-taker. Thank you, Catherine. I refer to the persons named on the screen as scrutineers. They oversee the use. I appoint them as scrutineers. They oversee the use of the electronic system.
I would like to thank these ladies and gentlemen for making themselves available for this task. I will announce the number of shareholders present and the number of voting shares represented before the agenda items are discussed. Resolutions are passed electronically. I will explain later how to use the voting device before the first vote. Unless the articles of association or the law stipulate otherwise, the general meeting of shareholders passes resolutions by an absolute majority of the votes represented. This means that abstentions from voting and elections have the same effect as votes against or no votes. Next, some more information if you would like to speak on an agenda item. If you have not already done so, please report to the speaker's desk as soon as possible. Identify yourself and state what you would like to speak about.
Please use the rostrum with a microphone. When you speak, first introduce yourself by giving your name at the beginning of your speech. I would ask you to speak standard German or French or English. I'd also like to ask you to keep your speech brief and to speak only about the subject matter. Speaking time is limited to five minutes. I would also like to inform you that the annual general meeting will be recorded on tape and video. There will also be an internet webcast. By attending the annual general meeting, each participant agrees to Zurich recording the annual general meeting, including the speeches, and publishing and using it as part of the webcast.
I'm also informing you in the name and on behalf of Raphael Keller, in his role as representative of the independent proxy Anwaltskanzlei Keller AG, that last Friday, he provided the board of directors with information in aggregated form on the voting instructions received by him from shareholders up to that date. Finally, I would like to point out that shareholders who leave the room temporarily or permanently before the end of the meeting must present or hand in the voting device and the admission card for the attendance check at the validation counters. Ladies and gentlemen, dear shareholders, as you may know, I was born in Luxembourg. I'm Luxembourgeois, but you can also tell from my accent that I grew up speaking French in France. Then, in my 20s, I lived in Brazil for four years. Why am I telling you this, you probably wonder. Well, think about it.
Luxembourg, France, Brazil. From a footballing point of view, my life, at least at the time, was always on the up. But then I moved to Switzerland. Admittedly, 46 years ago, the Swiss national football team was not exactly world-class. But, and this is a major but, for the past 30 years, Switzerland has had a highly competitive national team that not only regularly competes in the major European Championship and World Cup tournaments, but always has a real chance of qualifying and progressing to the next round and beyond. This is something people in Luxembourg can only dream of. Zurich has been delighted to be able to support the Swiss national team since last year. There are many similarities between the national football team and our company.
Both achieved success when they refocused and took a structured and long-term approach, always keeping not only the goal in mind, but also recognizing that it takes highly motivated people to lead the team to success. The Swiss national football team has done just that, and so has Zurich. We can look back on another highly successful year, perhaps the best in our more than 150-year history. Here are the figures, ladies and gentlemen: a record profit of $7.4 billion. Our highest-ever return on equity of over 23%. Growth in all business areas. Most importantly for you, an 8% higher dividend. Things could have been different. The major upheavals of recent years, including the pandemic and the war in nearby Ukraine, could have destabilized us. The many hours of employees spent working from home could have led to their mental resignation.
The sudden sharp rise in interest rates, followed by high inflation in various countries, could have caught us off guard. Large companies like Zurich have indeed been exposed to many risks in recent years. But the opposite has happened. We are working better and better, with a solid foundation and a clear purpose, to support our customers around the world in the best possible way. Customers who trust us to provide them with security when life doesn't go quite the way they want it to. That's what is called adapt and grow. It is testament to our ability to respond flexibly to highly diverse situations and new challenges. We do this so well that our business continues to grow, as it has for years.
Last year, I would have said that what we do is to keep growing sustainably, but unfortunately, this term has become a bit clichéd, and overuse has diminished its value. But I think this is regrettable. After all, being sustainable means nothing more than standing on a solid foundation, thinking long-term, and acting with foresight. And I think you will agree with me, ladies and gentlemen, that we should continue to work according to these principles, because our challenges aren't going anywhere. Of course, they are not the same as they were 150, 100, or 50 years ago, but they haven't got any smaller. The latest challenge is artificial intelligence, AI in short. Everyone is talking about it, but few understand much about it. I myself don't yet understand the full extent of the change that artificial intelligence will bring.
As with digitalization, there is talk of countless jobs being lost. Well, I say that this may happen, but there will almost certainly be many new jobs created that will need to be done by humans too. As with almost everything, challenges like this create opportunities as well as problems. Thanks to AI, we at Zurich can assess and process claims more quickly, model risks more effectively, and improve our customer service. And of course, there are also risks. AI can be misused, for example, in data security or security issues in general. Societies may change as jobs are lost or moved elsewhere. And of course, there are also ethical issues that we need to look at carefully.
But as an insurance company, we are particularly good at assessing both the positives and the negatives, and we can help our customers to cover their risks while also making the most of their opportunities. Insurance, as I understand it, after 47 years in business, is the perfect hinge between these two poles. We are mediators. We are facilitators. We are paving the way for change and helping others to navigate it successfully. We are also risk managers, helping to minimize risks. As insurers, we at Zurich can continue to make an important contribution in the future, not only by adapting and growing ourselves, but also by helping our partners to adapt and grow. Let me take this opportunity today to look at the bigger picture.
I meet with many business partners from all over the world, and I'm not exaggerating when I say that many of them are concerned about the global situation. It's only understandable. We are emerging from a long period in which the global power structure was first bipolar and then unipolar, with the U.S. as the only major world power. With the rise of China, we are now moving towards a multipolar world with different centers of power jostling for position. Obviously, this can lead to tension and fissures. I was born in Luxembourg, then lived for a long time in France, and have been in Switzerland for many, many years. I am a European. In saying this, I don't mean the European Union. I really mean Europe, a continent with 47 countries.
For centuries, various European powers had great influence on the world, but Europe is stuck in a crisis of purpose. The continent of many states must reposition itself between these different poles of power. We Europeans should not be content to watch the competition between the new powers from the sidelines, acting at best as a kind of umpire. No. We Europeans must establish our unique vantage point and regain strength to play an autonomous role again. And what about Switzerland? There's no doubt that we belong to Europe. Yet within Europe, we are currently what Europe is to the world today, a minor player, but one with great expertise. Switzerland too can play an autonomous role on a wider playing field. In doing so, we can and must work together with our partners. This certainly includes the EU.
But more than that, as I said, there are other political actors. Switzerland is ideally positioned to hold its own in this multipolar world, but only if we adapt and grow ourselves. This is what we need to do, remembering that in the end, we need to work together if we want to solve the major challenges we face. Ladies and gentlemen, Zurich is a company, Swiss company through and through, and we accept our responsibilities very much with a Swiss sense of doing good, whether in your home country or in the wider world. Both are important, and I feel that this is something we should keep in mind. Raise it when we can, and I'm proud to talk about it today.
Together with the non-profit Z Zurich Foundation, we have provided direct support to victims of war and disasters in Ukraine, Syria, and Turkey, the latter following the devastating earthquake in February last year. This work has enabled us to alleviate a great deal of suffering quickly. I look back with great satisfaction on a year that has shown us what we are capable of, even in unfavorable circumstances t hat have been far from easy. I look ahead to what I hope will be another successful year for Zurich Insurance Group and for the Swiss national football team at the European Championships in Germany in 2024. You don't need to eliminate France right away. I would like to thank you, our shareholders, for your support and our company often over many, many years. You believe in our ability to perform and adapt.
I would also like to thank you for your patience when things have been difficult and for your joy when things go well. Most of all, I would like to thank you for the attention you have given me today. Merci beaucoup. Dear shareholders, this concludes my welcome address, and I would like to hand over to the CEO of the Zurich Group, Mario Greco.
Well, ladies and gentlemen, a very warm welcome from me too. What is a company's purpose? Well, it is to provide products and services that best meet the needs of its customers. It is to offer its employees interesting work at fair pay and to generate an attractive return for its owners, for its shareholders. In 2023, Zurich Insurance fulfilled all these three aspects of this purpose with great success. Customer satisfaction is at a very high level, and we have seen that satisfaction radiate throughout the company. As a result, we were able to attract many new customers. Employee satisfaction has risen year-on-year, which I'm delighted about. Last year, we made a record profit of $7.4 billion. This is the largest profit in the 150-year history of Zurich Insurance Group.
We're seeing positive results in all our businesses, which shows that we've done our housework, or our homework rather. Our business operating profit in property and casualty insurance increased by 7% to $3.9 billion. On a like-for-like basis, the increase was as much as 10%. In life, we achieved a new record profit of $2.1 billion. That's an increase of almost 40% over the previous year, a new record. Farmers in the US earned $2.3 billion, and again, an impressive increase of 10%. At Farmers in particular, we demonstrated a superior executive response when a series of natural disasters precipitated the downturn.
As a result, we were able to reduce the combined ratio from 116% to below 90% between the second and fourth quarters. Our decisions ensured that the Farmers' combined ratio was even lower than that of our own property and casualty business, which was around 94% for the full year 2023. Our record profit was accompanied by an after-tax return on equity of 23.1%. But what is the underlying reason for our success? Well, firstly, we focus on capital light business in life, where we concentrate on protection products and the savings business. Secondly, we seek to limit our exposure to natural disasters in order to make our results more predictable.
And thirdly, we invest heavily in technology, namely $1.8 billion over the past three years, primarily to digitalize our business processes and improve the customer experience. We have now digitalized 89% of our retail quotes, and we are using artificial intelligence in more than 160 use cases to speed up our decision-making processes. This has enabled us to process some claims in as little as 24 hours from claim to decision and compensation. This is true customer focus, but we needed new skills to achieve this. In recent years, we have hired more than 1,000 technology specialists in areas such as data analytics, artificial intelligence, cybersecurity, and cloud computing. Satisfied customers, skilled employees. The only thing still missing from our list is our shareholders. We expect that you too will be satisfied. We're proposing to increase our dividend by 8%.
This will result in a dividend payment of CHF 26 per share. In US dollars, this represents an increase of even 19%. We're also increasing the value of your shares through a share buyback program of up to CHF 1.1 billion. We can afford to do this because of our excellent capital position and stable reserves, with a solvency ratio of 233% in the Swiss Solvency Test. This strong capital position is important because, as I'm sure you're all aware, geopolitical risks remain high. The war in Ukraine continues, as do tensions in the Middle East. We also have important elections coming up in several countries. In times of uncertainty, people increasingly look for competence and stability. We must, therefore, continue to focus on our customers, to identify their needs, and to manage their risks well.
Dear shareholders, when we took office, we promised that we would always distribute at least 75% of our profits to you. We have kept that promise, and this year we're even exceeding it. Since 2016, you have received an annual return on your shares of 16%. Analysts like to draw comparisons. The equivalent figure for comparable companies in our industry is 9%. In absolute terms, we have paid out a total of CHF 30 billion to our investors, our shareholders, over this period. At Zurich, we firmly believe these numbers speak for themselves. We are in the first year of our 2023-2025 financial cycle. The numbers are better than expected. We expected to deliver earnings per share of 8% over this three-year cycle. We now expect that we will achieve earnings per share of over 10%, which is fully 25% more than anticipated.
This shows how optimistic we are about our future business performance. This level of success would not have been possible without the outstanding motivation and commitment of all our employees. A big thank you, therefore, goes to our 60,000 employees around the world. And of course, we would also like to thank our customers, both those who have been with us for some time and who remain loyal, and to our new customers who are joining us every day. We'd also like to thank you, our shareholders, because you are the solid foundation on which our company has been built for over 150 years. You make our continued growth possible. Financial success is important and welcome, no question. But even more important is our health. Without health, we cannot enjoy our success.
So I would like to conclude by wishing our employees, our customers, and of course you, our guests, all the very best. Thank you very much.
Thank you, Mario. Thank you, Mario. Thank you very much indeed. Before I come to the agenda, I would like to announce the attendance. The total number of shares represented: 1,618 shareholders. The independent proxy represents the total number of shares represented is 60,621,108 shares, which corresponds to 65.51% of shares with voting rights. Now we come to the individual items on the agenda. Agenda item one: reporting for the 2023 financial year. Agenda item one is divided into three sub-items with three votes. On agenda item one: approval of the management report and the annual and consolidated financial statements for 2023. 1.2: consultative vote on the 2023 remuneration report, and 1.3: consultative vote on the 2023 sustainability report.
I will briefly explain the three sub-items on the agenda before opening the discussion. The votes on agenda items 1.1, 1.2, and 1.3 will then be conducted in one voting round. Under agenda item 1.1, the board of directors proposes that the management report and the annual and consolidated financial statements of Zurich Insurance Group Limited for the 2023 financial year be approved. The auditors, Ernst & Young, have audited the annual and consolidated financial statements and recommend their approval to the annual general meeting in their audit reports. Under agenda item 1.2, the board of directors proposes that the compensation report of the Zurich Insurance Group for the 2023 financial year be approved in a consultative vote.
The auditors, Ernst & Young AG, have audited the legally required parts of the compensation report and confirmed that the audit report complies with legal requirements and the articles of association of Zurich Insurance Group. The remuneration report explains the remuneration structure and governance as well as the remuneration paid to the members of the board of directors and the executive committee in the reporting year. The variable remuneration was linked to the achievement of targets and assessed on the basis of the group's long-term economic success. For the group's short-term incentive plan, the STIP, the group's overall profitability for 2023 on which the plan is based leads to a performance level of 109%, which is relevant for the executive committee.
Under the group's long-term incentive plan, the LTIP, the financial allocation over the three-year performance period 2020-2023 amounts to 150% of the target allocation. The total amount of variable remuneration paid to all group employees in 2023 is CHF 842 million. The board of directors is convinced that the remuneration structure and the remuneration system meet the requirements of good governance and international best practice in terms of design, risk management, transparency, and disclosure. Under agenda item 1.3, the board of directors proposes that the sustainability report 2023 of the Zurich Insurance Group Limited be approved in a consultative vote. This year, we are voting on the sustainability report for the first time, as is now required by Swiss law. Zurich Insurance Group Limited has been publishing a sustainability report for several years. This has been continuously developed and reflects a new legal requirement.
The structure of the report follows the strategic sustainability plan. An index at the end of the report refers to the content required by the Swiss Code of Obligations. The auditors, Ernst & Young AG, have performed an audit with limited or reasonable assurance of the key figures listed in the notes to the sustainability report and have issued corresponding confirmation in the independent assurance report. With that, I'd like to open the discussion. Does anybody wish to take the floor?
Yes, there are some names on the list, so let's start with Fritz Peter from Winkel, representing Actares.
Good afternoon, everybody. My name is Fritz Peter from Winkel. I speak on behalf of the shareholders' association called Actares, Shareholders for More Corporate Responsibility. We also provide proxy voting services for ethically oriented private persons, private individuals from the entire country, Switzerland. Chairman, ladies and gentlemen, Actares demands companies to be fully transparent. In order to practice what I preach, I would like to disclose now that this contribution here at this AGM was not fabricated by artificial intelligence. Artificial intelligence was mentioned by the chairman in his speech. Whether or not human intelligence is included in this contribution is for you to determine after my presentation.
You may have read the media release we published yesterday, or you might have heard of it. If so, you already know that I have to be slightly more critical today than in earlier years. But still, I'd like to start with two positive points. A few weeks ago, on an early Friday evening, I had a flat tire, which was very annoying indeed. I quickly called Zurich Relax. Of course, I'm insured with Zurich. After that brief call, support was sent immediately and comprehensively. Thank you very much to Zurich, Switzerland. The Zurich Group in 2023 posted record results and is highly liquid. It has very good solvency values. Figures are very eloquent, as the chairman just said. Actares congratulates the members of staff, the executive committee, and the board of directors on this excellent performance. A year ago, I praised your slogan, "Climate Action, Not Climate Words."
Now, one year down the line, Actares is concerned and has to state that words are very, very numerous indeed in your sustainability report, and they make a good read. Action? Well, not so much. The focus on sustainability and climate strategy seems to have been fallen by the wayside because we can't see any progress there at all. Therefore, Actares considers Zurich's current climate strategy as insufficient. The short-term reduction targets were not validated by the Science Based Targets Initiative. A transition plan to achieve net zero, which would include the underwriting, the investment, and business activities, is planned to be developed in 2024.
But this is late, isn't it? Are you really implementing your own claim to be one of the most responsible companies worldwide? That's the words. Do you really implement it? Do you really proceed to action? 20 years ago, a former Zurich CEO who was equally successful as Mr. Greco is today said, "What gets measured, gets done." So if you can put a yardstick to it, you will implement it. Dear Michel Liès, you have been with Swiss you were with Swiss Re for 4 decades, and you have a climate gene in your DNA. Could this gene perhaps contribute to develop measurable targets, targets that are relevant for compensation? Could you take the climate strategy further? Actares will not approve the sustainability report.
Because this is a very important issue, Actares, for the first time, recommends the sustainability report not to be approved and also recommends to vote no on the discharge of the board of directors and executive management. I will also suggest to vote no on the remuneration report. Two questions before I leave you. Chairman, can you confirm that the transition plan towards Net Zero, after developing, will be submitted to the Science Based Targets Initiative to be validated? Second question. The vote on the sustainability report is a non-binding consultative vote.
You don't have to be afraid of the sustainability report not being accepted. What are the reasons to call it a non-binding vote? I don't think a binding vote would do damage to your reputation. Thank you very much for your answers. Today, I'm going to say goodbye, and I'd like to thank you, ladies and gentlemen, for your attention over the past eight years.
Thank you very much, Mr. Peter. Or Fritz, if I can call you Fritz, you are a former Swiss Re colleague. You asked two questions. We will make sure that we will have a transition to Net Zero. That's the basic principle. The Science Based Targets Initiative hasn't issued the Net Zero target. There are still some components that are not quite stable in this form of assessment, and it's perhaps the right moment to give you assurance globally that we're all highly interested in improving the climate. The entire industry is because we will suffer the most because of all the losses. We may not necessarily agree on all the issues. We don't want to exclude anyone.
We want to work with our clients, with our partners, to find solutions. But an insurance company like Zurich cannot afford not to be interested in such an issue. And this is clearly one of our targets because it has a major impact on our business figures as well. Whether or not a vote on the sustainability report should be binding or non-binding? Well, in my view, there are many, many elements in a sustainability report that are not particularly stable. In a non-binding vote, we can discuss this issue, and we will benefit from it. But I can assure you that the answer to the consultative vote, to this non-binding consultative vote, will be taken as seriously as if it were a binding vote. And I insist, we have defined the target very clearly. Sometimes there are different ways of reaching a target.
Transition is very important for us, and we will publish a report accordingly. But rest assured that these targets are our targets. I can already assure you that the Science Based Targets, the science targets will be achieved. We're working very, very hard to achieve these targets. We are making an effort. Thank you.
Dann gibt es , sorry. Then there's another speaker, Anna-Katharina Seiler-Mehdi .
[Foreign language]Thank you very much for allowing me to speak here. You see that I'm wearing blue. The color that I'm wearing, however, does not reflect the color of the company Zurich, but it might reflect the color of the company Zurich. No, this color is representative of the Climate Seniors that made headlines yesterday.
You must have read about the success we achieved yesterday with our complaint at the European Court of Human Rights, whom we were able to convince that more needs to be done urgently to protect all of us and to protect the climate. Last year, Zurich, the company, explained the steps that it wants to undertake. Now we heard from shareholders' advocate, Actares, that the company did not walk the talk. It is not up to me to assess that. The decision from the court in Strasbourg yesterday showed that we need to take serious not only the senior citizens that achieved that success, but we need to take serious the climate and all activists fighting for the climate, the protection of the clients.
So let us listen with all seriousness to all the speakers that speak out for the protection of the climate and all other measures to protect societies. If we do not, it will have financial consequences. It will be costly. Thank you for letting me be a shareholder. I'm very happy that I have been able to invest my money for my pension in this company. But we need to make sure that we all stay safe and healthy. And in order to ensure that, a lot more needs to be done to make sure that we are as successful in the future as we were in the past. Thank you.
Thank you very much. I do not want to be all too personal, but I am a father. I am a grandfather. I have children. I have grandchildren. I'm very interested in the topic as well. If you say nothing has happened, well, I think you should be joining us on some of the meetings in the board because then you would see that we do as much as we can with our methods. You will be hearing more about our transition. I congratulate you on your success you achieved yesterday in Strasbourg. As a citizen from Luxembourg, I'm even more neutral than a Swiss citizen. Switzerland is the very first country to have been punished by the court in Strasbourg.
When I engage in discussions with the majority of politicians in Switzerland, I do see it is a topic that is taken seriously. Perhaps we have not moved on with enough speed. But I was surprised by that verdict. That subject was commented more in foreign press in Germany, in France. The French are so happy to be pointing fingers to Switzerland, as are the Germans. But it's the way it is. Yes, something is happening, and I can promise something's happening here too. We're taking it very seriously here. Political decisions need to be taken. We cannot replace political action, but we become active on our own. Being who we are, we're very interested in action being taken.
So we are following our transition plan. We are not alien to this discussion. We're very much invested, and we are also invested in discussions with politicians when it comes to speeding up the political process. Politically, obviously, this is not a very neutral topic. I'm perfectly aware of that. Are you happy with my reply? If yes, we can move on to the next speaker, Linus Fischer.
Hi, Linus. [Foreign language] Dear shareholders and ladies and gentlemen, how can you justify the exorbitant salaries that are evidenced in your compensation report on pages 95 and following? The board is paid CHF 5.8 million annually. The chairman of the board alone earns CHF 2 million and more. Mr. Liès, what makes your work so special that you earn so much more than a Federal Council , say, who has so much more responsibility than you? What is so special about your work? From the list on page 98, I can see that the executive board in 2023 earned CHF 55.91 million.
The Group CEO earned an additional CHF 9.83 million. Again, what justifies that compensation, Mr. Greco? Given the exorbitant salaries for the board and the executive management, I ask that agenda items 5.1, 5.2 not be approved. On agenda item 1.3, fracking. Fracking is particularly damaging when you extract natural gas.
You do not exclude insuring companies that practice fracking. Hence, I understand you are involved in providing insurance protection to such companies. Many communities in Switzerland decline any such activities on their territory as they have joined the International Lake Constance Conference. Most communities in Switzerland are against fracking. As a Swiss company, do you not think that you should pull out of any activities around fracking? A report in February this year showed that Zurich was involved in insuring 2 liquid gas terminals in the United States. Such terminals are highly damaging for the health of the local population through pollution, air pollution. They cause damage to local fisheries and, obviously, also to fauna in the seas. And this is particularly true for indigenous, Black, and other marginalized communities that are affected. Zurich has no human rights policy that would ensure such affected communities.
Is Zurich thinking of adopting such policies? Thank you very much for your attention. [Foreign language] . I think we can already reply to compensation now, or shall we postpone this to the discussion around agenda item 5? On compensation, you're perfectly correct in saying that these are very high amounts. The comparison to that of the earnings of a federal council is very interesting. I'm sure you can compare also with other functionaries. There is a market, however. I'm not intending to try and explain why my job is so much more interesting or demanding or whatever. The amount paid is a market salary. This is very much in line with what is paid in our industry. The same is true for Mr. Greco, who is in charge of 60,000 employees and very many million customers.
I understand that people talk about compensation. I sometimes refer to salaries paid in sports. Yes, it may be difficult to compare salaries between people who bear responsibilities in great companies, on the one hand, and people who practice a sport. My personal opinion on salaries of a federal council: I very much adore the political systems in Singapore, where politicians are paid in line with what businesspeople are paid. Given the responsibility that a federal council has, one can easily imagine other solutions. I am a citizen of Luxembourg, hence I speak about politics in Luxembourg only. It's up to you to decide on that. You asked the question about fracking. In Switzerland, we do not insure any fracking projects. We have insurances in the context of oil and gas, and we have revised our position there. The policy has been revised.
This is something we've been doing for months, and we now declared our policy. It's sometimes interesting that you need to confirm with words what you do with your deeds. But we have been following that policy with regards to fracking, oil, and gas. We decided no longer to insure such projects. We are now in a period of transition because a world without oil and gas is not something that can be achieved overnight. We need to speed up the process, but it cannot happen at the press of the button. I would say that the more seriously we're handling that process of transition, the more responsible it will be. On your last point, human rights, we have a human rights policy. You can read up on it in our sustainability report. Of course, one speaks about actions and words. Words may not always be sufficient.
Sometimes we do deeds that are not backed up by words. So it's a combination of both that is important. But I can insist that the climate, sustainability issues are huge topics for insurance companies. And we're doing everything in our power to accompany the efforts of others as efficiently as we can. Thank you very much. There is another speaker, Peter Stephan, relative, maybe, brother, father, son.
Dear Shareholders, ladies and gentlemen. There was an article published this Monday when Zurich announced to improve its climate guidance in the future. It wants to exclude new oil and gas business. I quote Sierra Signorelli, who's a member of the board, who said that further exploration in fossil fuels is not required for the period of transition. We believe it is the right point of time to further develop our position. Now my question: does this mean that Zurich, as of now, will not insure any downstream projects as well? For example, new liquid gas terminals, will they still be insured as such a project in Muttenz was planned, as I understand?
And I would also like to know whether the executive board or the board of directors have a private jet at their disposal that they can make use of. And if yes, how many business trips were conducted by that jet in 2023 for, A, the executive board and, B, the board of directors? And is the company Zurich prepared to renounce any business travels by private business jets?
Thank you very much. On our revised position on fossil fuels, it says that we will not fund or insure any more gas exploration or oil exploration projects. This refers to the so-called upstream projects. We still accompany our customers from coal-intensive industries to make sure that we better understand their needs and requirements. We will invest in sustainable solutions to support their transition to net-zero projects. The question as regards business jet: for urgent topics, we do sometimes make use of business jets, particularly in the United States. The board doesn't make use of jets. As far as I remember, I never got on board of a jet in Zurich because we tend to have a bit more time for our negotiations.
But at the operating level, you need to sometimes be very efficient when you travel from one city to the next. So I can assure you that in the board, there is hardly any use. There may be an urgent use at times. When it comes to saving jobs or when it comes to renewing the reinsurance contract with guidelines that may be more in line with our sustainability guidelines, sometimes speed is urgent. So there is a business jet, but we have such a jet not for the board of directors, but for the executive board that need to come to speedy decisions when efficiency is necessary. But that's part of the parameters that are part of our targets, the targets around the business travel emissions.
Yep. Jean-Michel Müller is the next speaker.
From collective Break Free, I would like to ask the following question: Money that parents put aside in their junior insurance is invested in fossil giants such as TotalEnergies and ExxonMobil. How do you justify such investments, knowing it directly impacts kids' health?
Thank you very much. Wir haben a straightforward investment strategy. I hope you don't mind me answering in German. If you want, I can answer in French as well. We have a clear investment strategy. We want to achieve net-zero by 2050. Our investment is based on very clear criteria, and our net-zero strategy will be complied with clear milestones. For our financed emission, our objective is -25. We overachieved in 2023 with -43. It's transparent and clear in underwriting but also in investment. And that's all I can say. I think it really answers your question.
Thank you. Hanspeter Sachs is the next speaker. Hanspeter Sachs from Wädenswil. A good business, result , seems to motivate people to speak at the AGM. We still try to wind it up today, still, as every other AGM. My name is Hanspeter Sachs .
Members of the executive committee, members of the board of directors, the network Insure Our Future commissioned a research, and the results of this research were issued in a report called Scorecard. According to the Scorecard data, Zurich, by insuring coal and gas and oil, generates $54 million to $57 million premium income, which puts it in sixth position worldwide. Last Monday, a report was published by Bloomberg, and Bloomberg puts the number to $2.1 billion premium income from the entire energy sector, including the $82 million from renewable resources mentioned in the sustainability report. So my question is: what figures are the correct ones? And what is the premium income of Zurich from coal, oil, and gas? Thank you very much.
Thank you very much for this question. Our premiums from coal, oil, and gas are below 5% premium income with commercial clients. We will communicate our target in 2024, so I can't really just give you the figure off the cuff, but we will communicate this figure in the 2024 sustainability report. This is all in an effort to ensure that our underwriting portfolio can be transitioned as well. We won't go to zero right away. We are convinced that a smooth transition is important and that serious management of such a transition is important rather than just taking radical steps, which we feel may not necessarily contribute to the improvement of the overall situation of the planet. Viktor Paul Locher, is that right? My screen says he's the next speaker. Viktor Paul Locher was Wittwer from Laupen.
This is correct. Good afternoon, everyone. My name is Viktor Paul Locher. That's correct. Viktor Paul Locher. Viktor is enough. I take the liberty of beginning my statement with a quote from Albert Einstein. At least it's attributed to him. "The purest form of madness is to leave everything unchanged while at the same time hoping that things are going to change." End of quotation. In 1992, that's more than 30 years ago, ladies and gentlemen, the Kyoto Protocol was signed. At the time, the industrialized companies, industrialized economies, contributed to reducing annual greenhouse gas emissions by 2012 by 5% over the 1990 levels.
That's 30 years ago. 2015, the CO2 emissions were 60% above the 1990 level. 2015, we had the Paris Accord with a similarly ambitious agreement. This year, the School of Sustainability of Stanford University says that global carbon emissions from fossil fuels reach record heights in 2023. Distinguished members of the executive committee and the board of directors, in the sustainability reports of your company, the Paris Accord is referred to nine times, an 86-time net-zero target 2050.
You keep emphasizing in your report that Zurich Insurance Group is fully committed to these targets or objectives. At the same time, we're experiencing that the institutions who would have the power to really change something, like governments, corporations, banks, or insurance companies, are taking a step back and do not implement radical change. There's only one explanation. Do we really have to take a decision between protection of the environment and protecting the profit? Is there only one winner between the two? Or could you explain to me why it is possible that Zurich Insurance Group, in such a dramatic world market and climate situation, considers 2023 to be the most successful year? Is it really the most successful one? It's perhaps for you to say, "I read the news with great interest that the Zurich Insurance Group is going to tighten its climate policy this year still.
But now we really want you to walk the talk. Profits always need to be optimized. Growth needs to be achieved all the time. Very often, this makes it impossible to really make a change. Climate targets become scrap paper. I'm insisting. I call upon you to assume more responsibility. Take bolder decisions to the benefit of everyone in the northern hemisphere, but in the southern hemisphere as well, and to the benefit of future generations." Perhaps one more question, if I may. Talking of bold decisions, are there any binding plans at Zurich to say goodbye completely to oil and gas? Because this would be indispensable to actually achieve the net-zero target by 2050. And if so, what are these plans like? Thank you very much for your attention.
Thank you very much. I see that the subject of the questions keeps repeating itself, and we have to speed up a little bit. Otherwise, we'll still be there in the evening. You ask about our plans to get to Net Zero by 2050 and our ambitious plan by the end of the year. I don't feel like answering the same question 10 times over. You asked specific questions about the plan. We will explain the transition plan in detail. We've done so for investors. So we are very transparent in this sense. We have a clear objective: Net Zero by 2050 for the entire company. We support clients in their transition to Net Zero. We want to play a central role there. It is important to have this change for society and the economy at large in order to manage the risks coming from this development.
There needs to be a balance between safe energy supply and protection of the environment. We need to make sure that there is a fair transition for everyone. We are naturally very interested in this topic because we will have to pay for the damages. I insist that we take this issue to heart. There are people who are not willing to solve the problem. There are some politicians who are not willing to solve the problems. We are, and many others are as well. Something must happen.
There are elections, and you can make your voice heard at the elections. I'm not sure whether it's fair to ask a financial institution to take radical decisions, but I can promise that we will make a change. We have a natural interest in making a change. I'm looking forward to your milestones. I just want to hear what the milestones are. Thank you very much for your question.
How many do we still have? Let me count. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10.
Okay. If you really want to talk about the same issue, could I ask you to be brief? I know it's important, but there's no point in asking the same question over and over again. We're just going to use more electricity here. It is important. Please make sure that you don't ask the same question again because it doesn't take us anywhere. Let's hear from Luisa Gehriger . Luisa, please.
Guten Tag. Good afternoon. Thank you very much for having me speak here. I'm sorry to take your time. My name is Luisa Gehriger . I'm speaking for the organization that speaks up for the rights of tenants in Zurich. I am also a researcher at the University of Zurich. I research on social effects that real estate investment on tenants. Ladies and gentlemen, Zurich Insurance Group also invests in real estate in Switzerland and abroad. About 40% of the Swiss real estate portfolio affects Zurich, particularly as a location. High expectations on returns on such investments lead to dispersal effects of tenants, very often affecting those that have limited means, affecting senior citizens, affecting single parents, and families.
According to our organization, currently, 400 tenants are affected at the location Grosswiesenstrasse in Zurich, where they got notice. Zurich Investment is investing in this project. Future real estate, particularly for tenants, must be protecting the socially disadvantaged. How can we manage expectations on returns in such a way that they're compatible with social goals? That would be my question. Thank you very much.
Thank you. When evaluating renovation projects, there's a host of criteria that are taken into consideration. Obviously, economic returns is one thing, but also management of land. And also, the tenants' needs and requirements are taken into consideration when more leeway is given to them, when more time is given to them to find another apartment. Information is provided early on. And yes, sometimes there are difficult situations that need to be tackled, but we try and proceed in the most humane manner possible. A real estate boom in some cities is something that, unfortunately, needs to be accepted. I observe, particularly in Zurich, that there are very many initiatives that try and make sure to provide opportunities to people who cannot afford expensive rents. Zurich, compared to other cities, as I see it, is doing its best, but there's no perfect solution for everyone. I understand that. Thank you.
Where am I on the list? Next speaker, Daniela Wittwer.[Foreign Language] .
My name is Daniela Wittwer. I'm a shareholder. As you requested, I will keep my questions very brief. Ladies and gentlemen, the Zurich Company announced this week no longer to insure in oil and gas business or coal mines. Move that I applaud. Now, how can we shareholders be sure that the announcement made will be put into practice quickly? Because very often, people talk about net-zero, long-term trends, etc. Most people in charge today will no longer be in charge at the set date, at the target date. What I would like to see is benchmarks, milestones. This is something I know from my professional background, and I think, therefore, one would need to publish such milestones because then it would be clear what it is that they do. This would provide transparency.
So how can we be sure? That's my first question. Then the window of opportunity to reach the targets of the Paris climate agreement, the 1.5-degree window, is closing. So it seems opportune to get out of contracts that's still back fossil fuel extraction. We need to become active now. We need to improve our controlling. We need to have milestones. We need to have independent support. Thank you. Vielen Dank, dass Sie.
Thank you for being brief. I will not repeat what I said before, but we plan to integrate this in our underwriting process this year. There's going to be a report in 2024 on our activities and the climate transition plan. Those that spoke before and those that will be speaking afterwards briefly, please, is that the main problem with Zurich is more in the saying than in the doing. We do a lot, which is the most important thing. We do a lot in underwriting. We do a lot in the decisions on certain risks. But we're not explaining this on a monthly basis with a new press release. I keep repeating myself, but sorry, the questions are repetitive too. There's one industry that is most interested in this, and it's the insurance industry.
Now, this is going to be a record. Fabian Rudolf Hauke, next speaker.
Okay. Ja, guten Tag. Good afternoon, directors, shareholders. Thank you for letting me speak. I'm a future activist, and I worry about the extinction of species and climate issues. Last year, Zurich left the Net-Zero Alliance. This is a setback to achieve climate justice, and it is not in line with the affirmations that you are repeating today. Why would you have left that alliance? Your recent announcement to no longer underwrite any fossil fuel activities lets us hope that it will strengthen your climate protection measures. This is to happen fast, without exceptions, and this is to be extended to your investments too.
And that is my question. Do your investments also exclude fossil fuel investments? Heat waves in Global South have shown us how important it is to take such decisions. Modern studies show us that such heat waves have become more likely by a factor of 10. And now my very specific question: What CO2 reduction path are you on, and what's your total CO2 budget? We haven't heard that yet. What is your climate path by 2050? How do you want to make sure that you can achieve your targets, specifically also with regard to your CO2 emissions? Increase certainty rather than create uncertainty with uncertain answers.
And again, thank you very much for allowing us to ask these questions in the interest of the civil society. Wir arbeiten an der. We are working on the transition plan. I said it. I think I'll be very brief now because much of the answer can be gotten from the transition plan or from the answers we have already provided. What I cannot do is anticipate on these things. We have already communicated some CO2 targets. So please read up on what we publish, and you will see that we do make a contribution to the issue. I have a lot of respect for your questions, but I'm a bit worried. I'm not so sure that it's super productive. I think you probably have a plan. You have 10 more people enrolled on that plan.
I personally do not think this is a huge contribution for the betterment of the planet, but do what you have planned. But please do accept that I will not renounce on replying to a question that's been asked 10 times already. Dann kommen wir zum next speaker, Gianfranco Giudice. Das ist etwas Neues. Sehr geehrte Damen und Herren. Ladies and gentlemen, our health is important, but I'd still like to talk about social responsibility. For 20 years, we've had a law on equality for disabled people in Switzerland. There is a European legislation on accessibility that will enter into force in 2025. That European law on accessibility tries to ensure that all products and services are accessible to everybody in our society, with or without disabilities.
I am speaking here because there is such a law, but I would very much wish for us to reach this goal even if there was no such law. Such measures try and make sure that everybody within our society can partake in the affairs of this society. The question that I would like to ask is: What do you do to further the inclusion of people with disabilities? What do you do to make sure that your services and products, both physical and digital, are available to everybody? Vielen, vielen. Thank you very much for your questions. A very important question, indeed. And thank you that you opened up the discussion. 28th of June 2025 is the day when accessibility is to be universal. We are implementing this on our website, for example, where our texts should be automatically audible.
We're sometimes afraid of such new technologies, but we forget that such new technologies sometimes improve the lives of many people. I can assure you I know what you are speaking about. Technology certainly is going to help us accelerate such processes. But thank you very much for speaking here, and thank you for alerting us to the fact that we need to keep this on our radar. One more comment. I have a device here, but I cannot vote with this on my own. I need someone to push the buttons for me, so there's no secrecy for me. You said that technology allows you a lot of opportunities. I have a device, an iPhone, a device that is available everywhere. It has a voice effect, and with such a voice guide, I can autonomously handle my business. So you might be thinking of something like that also.
Good point. Thank you for having found a solution. For this event, make sure that your friend indeed pushes the right buttons in your interest. But I perfectly agree with you. It's a typical example of the fact that there are things we're not alerted to early enough. I'm looking forward to the results and looking forward to how you implement things. And if you wish, I can also support you. Vielen Dank. Remo Balmer. We'll see what Remo has to say. Remo, over to you. Ladies and gentlemen, I'd like to raise a different point, not about the environment, but something equally important. Switzerland is being scrutinized by the United States again, more frequently, also with regard to commodities trade. Over the past few weeks, the media have reported widely about this issue.
Glencore, domiciled in Zug a short time ago in the US and Britain, has admitted to having bribed officials in different countries around the world. Over a period of 10 years, Glencore bribed officials in more than eight countries to the tune of more than $130 million in bribes. The reason why this company was very successful in these countries was to the detriment of the countries themselves and its people. Glencore is expected to have to pay a fine of $1.5 billion. In addition to Glencore, other commodities traders in Switzerland were affected. Vitol and Trafigura, domiciled in Geneva, also paid fines. In total, corruption cases in commodities trading flushed $1.7 billion into the United States Treasury. Zurich Insurance is important in ensuring risks in commodities trade. So Zurich, in one way or another, will be seen as a partner with these companies.
So it is also exposed to ethical questions when the companies themselves are questioned on the ethical grounds. And this is going to damage Zurich's reputation. What does Zurich do in order to counter this problem? How does Zurich assume its responsibility to make sure that commodities traders change their behavior? Will Zurich even consider withdrawing completely from this business, which is fraught with risks? Thank you very much for your question. The Chief Executive Officer just turned to me and said, "We are not going to ensure any commodities trading." That's a very immediate response from the CEO. Thank you very much. See, sometimes you can even give us a chance to actually say what we do or don't do. Hugo Jules, what a name representing Olivier Borgognon .
Ladies and gentlemen, Chairman, in spring last year, a report showed that Zurich is involved in insuring business in oil and gas in Norway, which is not really reconcilable with your 1.5 degrees target. Two days ago, a newspaper article was published, and this newspaper article says that Zurich Insurance is planning to update its climate guidelines. No new oil and gas projects to be insured by the company. Are you also going to exit the Norway projects? This is my question based on the newspaper reports we just heard. As I said several times over, we are not going to underwrite any new oil, gas, and coal business. These are global guidelines, which also include Norway. Thank you very much. Thank you for this straightforward response.
The problem is I can see the name of the speaker and what the question is going to be about, and I read oil, coal, gas over and over again. But Andreas von Angerer perhaps is going to speak about something else. Please be brief. Thank you very much in advance. Good afternoon, everyone. I promise I'll try to be brief, but this is an important topic. If we were to talk about financial issues, you couldn't just say, "Well, we're going to say something about this later in the year," or say two days before the annual general meeting. So I think all the questions are justified, and you have to bear with us. But I'm going to be a bit more specific and perhaps also get some specific answers. I'm glad to be able to speak here.
I'm also glad to be able to represent more than 3,500 of our clients. We are a digital asset manager, and our clients are small-scale investors, private investors of the Zurich Insurance Group, and they are particularly interested in seeing Zurich Insurance to be fully committed to solving the climate crisis. In the sustainability report, underwriting only plays a minor part. There is a lot of talk about investing, but your company is an insurance company, an underwriting company. So can I ask why the focus is so strongly on investment rather than underwriting? Because with underwriting, we've got the biggest leverage to really make a change and to ensure the transition. With coal, as we have seen when the biggest insurance companies implemented their exclusion guidelines, the new construction of coal power plants went down by 80%.
So my question is: Do you see a similar scenario as for coal with oil and gas as well, or is there a difference between oil and gas and coal? We are active owners as asset managers, so we welcome the approach of Zurich Insurance to have an engagement approach to try and move companies on their transition, help them on their transition. But we're also pretty skeptical that we're trying to push companies, even though these companies have known about the environmental damage of their activities for 40 years and still decided to do the same kind of business last year as well. So I'm not sure we really have a lot of leverage there. In underwriting, we feel we have enough clout to push transition processes.
So we'd like to see and hear from you what share of your investment portfolio covers clients in the energy business as well. Or to put the question differently, how many of your clients from the energy business are not part of an engagement dialogue? And perhaps one more comment, if I may. I think it's much easier to ask others to comply with net-zero targets if you yourself have produced and published your own targets. So let me call upon you to publish your targets as soon as possible. Disclose those targets. As I said, we just said that we're not going to underwrite any new oil and gas projects. We expect that all oil and gas clients have credible transition periods with clear net-zero targets, with measurable targets.
The point you made at the very end is very important because the financial industry or insurance company is to say, "Well, our clients are the major problems, clients who have been engaged in a particular activity for decades or indeed centuries." We can do the same with the buildings we have where our people work, and there is a lot of homework we've got to do. I can promise you that we are not just going to delegate the problem to our clients. There are some points that we can address ourselves. We are an industry that is lighter emission, light as it were. We don't have too many emissions, but we want to set ourselves ambitious targets as well. We don't just look at this issue as a bystander. We don't just want to observe.
We take ourselves to we want to force ourselves to achieve ambitious targets as well. Nora Scheel, please. My name is Nora Scheel. I represent Campax. I would also like to talk about climate change, and you will probably be angry about it, but this is just to show you that this is an issue that your shareholders take very seriously and the company isn't going far enough. New climate policies were mentioned. These are very good news, indeed, and we welcome those changes. It's an important step for Zurich, for the climate, and for our future. But there's one thing that we need to state very clearly: you need to walk the talk, and more steps need to follow. We call upon Zurich to, number one, publish your policy very quickly and implement it very quickly.
Number two, not only exclude new oil and gas fields but also stop extending existing installations as well as new mid and downstream projects such as pipelines and power plant projects. And thirdly, to also apply this policy to asset management. And finally, to comply to excluding the entire oil and gas business altogether. We will continue campaigning until Zurich has exited this business fully and has the entire business aligned to a 1.5-degree path, which it itself said it wants to comply with. Together with me, we have 50 climate activists who ask for the same, and they will not let you off the hook until Zurich has finally committed and proven that it is a climate-friendly company. Thank you very much. Music, please
Okay. Excuse me a lot. Okay. I thought I would never have to resort to this, but can we make sure that we can continue with the meeting, please? Security, please.
It would have been easier to tell me we sing for 2 minutes, so I could have left it at that. There are four more questions, not all of them relating to climate, I think, but I would like to give everyone an opportunity to speak. And thank you for telling me that there are 50 climate activists that are shareholders of Zurich. Rolf Dachmann.
Ladies and gentlemen, environment will be a small part only. I would like to talk about Zurich, the figures, and the whole picture. But since we're talking about the environment, very short question: how did you travel here? Did you come here by public transport or by car? And it might be an idea to send a ticket to public transport for shareholders to come here. That might be good. Then the printed management report, I think it might be useful to have a couple of copies, hard copies available for those of us, and I'm one of them, that actually read the management report. Sometimes a tablet doesn't allow us to see all the details. Then the risk of underwriting hurricanes. Hurricanes is evidenced with a figure of 32% as a likelihood. But how do we see the future on hurricanes? Is it so big a risk?
How can we assess the risk, actually? Retail retention rate, the clients that stayed with us, declined by 2 percentage points, as I saw. They did increase in commercial, but in end users, that share has declined. What do we do there? Another aspect, employees. The management report says that we're better than competitors when it comes to fluctuation rate, but we did increase by 2% to 14%. This seems to be a high fluctuation rate to see every eighth employee move. What do we do specifically? Of course, there was a restructuring in the United States, but how do we make sure that people don't leave on their own? Then Swiss Solvency Test. There was a reduction from 267 to 233. Our available financial resources declined. What exactly does that mean? What does it look like for the future?
Is this a trend that's going to continue in the new interest rate environment? Of course, money is important, also important for the protection of the environment. We need money for that, so I'm thankful for having made so much money at Zurich. In Greece, people don't have many jobs. They don't have many investments, and there are very few politicians embracing green policies, so we need the money for that. Thank you, Zurich, for the dividend. Let's make use of the dividend to buy organic products only. That's the contribution that we can make on our own.
The members of the board traveled here by e-car. I came here by Smart. My Smart is still gas-operated. Since 2022, Zurich no longer provides hard copies of the management report. It's made available online. In 2021, we said that by 2025, we would have a fully digital communication with our clients and users. Of course, there's always people who are interested in having hard copies and having printed copies. I'm among them. But you have to have guidelines, and you have to abide by them. Hurricanes, these are underwriting questions that are quite complex and maybe too complex to be answered here.
This is, after all, the art of insurance business. I'm a bit lost with regard to the many, many questions you asked, but once we're done, I will be walking through the hall, and you can approach me. I'm a bit tired from having answered the same question time and time again. Your question was different, but I lost the details. Walter Grob.
Cheers. Ladies and gentlemen, don't worry. I'm not going to be speaking about the climate. I would like to congratulate you on having this event. I'm very happy that you have not decided to have a virtual general assembly as many others did. I'm happy that we engage in a conversation. You did not allow us to speak Swiss German, and I'm now switching to proper German because I know that you might find it difficult to understand my dialect that I was speaking before. It is important that we have a general assembly where shareholders are present. This exchange of opinions is extremely important. It's important with regard to the relationship that you have with your shareholders, and it's also very important with regard to the share price. The rating is affected by this.
I was not happy, however, when I came here and had to watch the videos and films that were all in English. Some were subtitled, I would admit. Very few were Swiss. But I think you should make sure that what you present here can easily be understood by everyone present. Finally then, CHF 7.4 million profit. This is great. Congratulations. I think this is enough money to welcome shareholders here with a cup of coffee when they get here. Thank you. You did not get a we don't have coffee here? Thank you very much. Mr. Fischer? It says here the question as regard private chats was not properly answered. I'm not going to provide another answer, Mr. Fischer. Mr. Liès, I'd like to hark back. I handed in my question in writing. You had time to prepare for this question.
So I'd like to specifically ask: how often does the executive management fly with a private jet? You can pass the question to Mr. Greco. Perhaps he can provide the answer. We will make sure that you get a reply to that question. I do not have those statistics at my fingertips. I can assure you that we do not make use of our private jet for fun. We're not traveling for fun. [Foreign language]
The number of people wanting to speak is growing. Be careful, people.
Linus?
Linus Fischer.
I asked my question to Mr. Greco. The CHF 9.8 million salary that he gets, I would like to hear him reply to this question. So far, Mr. Greco has not spoken. I would like to hear him answer my question, what he thinks about the CHF 9.83 million that he gets. Mario Greco does not need to answer this question. It's the responsibility of the board of directors to determine the salaries of the members of the executive boards. I was prepared to answer a question. I did answer a question. If you want to read up on the details on the compensation of the members of the executive board, you can read up on that in Compensation Report pages 98 following. We have clear guidelines. We have median values in clearly defined markets that are the guideline for our salaries. Thank you.
Andreas Märki .
Ladies and gentlemen, people were beating around the bush as regards the climate issue. Zurich Insurance is very knowledgeable as regards climate sciences. They do not divulge their expertise, however. I studied climate science. If you study it, you realize CO2 is not responsible for climate change. Climate change is a natural process. If you look at the developments over the past 1,000 years, then in the year 1200, the year was excessively warm. This is considered Medieval Optimum or medieval heat time. And it's not the medieval hell of fire. People were doing well back then. You were able to plant wine in the south of England. It was a flourishing period. Climate in the 17th century is very cold, the Medieval Cold Period . People did not do well then. People did not have enough to eat. On the Thames, in winter, people could walk.
That did not feed the people. If you now look at the 20th century, how temperatures developed and how CO2 values developed, you see that temperatures have been increasing until 1950. They have then been declining since 1975, and they have now begun to climb up again until the year 2000. CO2 has kept climbing independently of this. The decline is not due to CO2. If we look at sunray inflection rates that have been going up and going down again until 1975 to climb up again, it's the sun that produces our climate.
It's not people, and it's not CO2. An insurance company like Zurich is knowledgeable of these facts, and if you were to state those facts clearly, we would not have to beat around the bush. If we want to do climate policies, we should start praying to the sun. Since we can't do that, we keep saying such nonsense as senior citizens for the climate do.
Zurich Insurance Company is participating in this game. You're participating because you don't want to engage in the shitstorm. You may have more money in your pockets, but do you feel don't you feel guilty if you do politics like that? Do you have a guilty conscience, or don't you, if you participate in all of this rather than speak out clearly about the facts? We do speak out clearly about the facts. If you want to discuss climate issues, I'm sure you'll find many friends that you can discuss with here in the hall, but I have not heard a specific question for me to answer. Well, net zero goal is not a meaningful target because it's the sun that makes the climate. It's not CO2. Well, fine. You may be right. You may not be right. Fine. Point taken. Thank you. We will start negotiating with the sun.
Keller. Good afternoon, ladies and gentlemen. It's been a long time since I last spoke at an annual general meeting and since I attended. I was disappointed when I came in. There was no information desk. In the past, there was always an information desk as we came in seven or eight years ago. My question would have been: why don't we get a parking ticket to leave the parking here in the neighborhood? This was a service that you used to provide. With the profit that you posted 2023, it would be easy to do this again. I had to work this morning. I left at lunchtime. It would not have been possible to come to Zurich with public transports. I needed to take the car.
I don't want to tread on your toys, but I certainly won't take a whole day off just to attend your annual general meeting. If you were to provide a parking ticket for us to park for free, it would be much appreciated. I would like to comment on what the previous speaker said. I don't know where your problem is. Everybody buys the Zurich share. If you don't like what the company does, why don't you sell the equity? Sell it if you don't like the strategy. Moreover, if someone else comes up to speak about the climate, they should first say how they heat at home and how often they fly into holidays. Look into the mirror, then you will see the biggest culprit in climate change. It's yourself.
You come here to the annual general meeting and talk and talk, but in two months, you're going to fly to Asia, to Thailand for holidays. Is this an appropriate policy? I don't think so. I'm 59 years of age. I have never taken a plane at all in my life. I did fly, but after stumbling with my bicycle. Thank you very much for your attention. Thank you very much. We'll talk about the parking ticket at a later stage. Thank you for this point. Orlando Rino Di Ronda. What a name.
Ladies and gentlemen, my name is Orlando Rino Di Ronda. I'm suffering from Parkinson's disease, one of the worst diseases you can have. I'm an engineer. We developed important technology, particularly surgical instruments. My motivation is work. And I love my wife. She makes sure I get proper food, and I have great doctors who look after me.
In 2016, I sold my company because of the disease. At the time, I didn't know what I was suffering from, but I had to sell my two companies. Since 2020, I have known that I have Parkinson's disease. A friend of mine who spent the military times with me, 17 weeks together in the military, he developed a piece of equipment which helps me in my therapy. Sanitas pays three times a week. I have applied for 5 times a week. Now, this was approved. It's a therapy that is greatly effective. It's very precise. It's hard to imagine how good this is. Therapists, doctors are really surprised to see how much my condition has improved. TLG GmbH. Martin Giger is the name of my friend from Solothurn, as I am. And Herrenweg 14, 4500, Solothurn. What does this machine do?
It's a machine that helps me in my daily work. It's a bit like a bicycle, but you don't have to sweat. It just helps me control my movements. It helps me to walk up stairs as well. It's a device that is vital in my life. And then it's a big challenge for a patient. And by using this equipment, my brain produces dopamine. And with this system, it would be possible to bring costs down. I no longer have to swallow that many tablets. I was given sedatives with no end. So, ladies and gentlemen, with this device, you can bring costs down by 50% in treating Parkinson. Martin Giger's development, Martin Giger's equipment will help to bring costs down. And I'd like to ask the executive management to look into this.
In my old activity as an engineer, I made various inventions. This is one of my inventions. It's a reusable mill for arthroscopy treatments. The whole world is producing single-use products. There are seven companies only produced with metal abrasion. So if you have to have a shoulder surgery or a knee surgery, and if I tell you there's going to be some metal abrasion, everybody will say, "Well, this guy is completely crazy. We'll only use single-use equipment." But with the invention I have made, there is no metal abrasion. These blades can be reused, and they will help to bring the cost of treatment down by 50% to 60%. These are gold-plated blades. Nobody is interested. Are you interested in bringing the cost of the health system down? Yes or no? Do you have a specific question? Thank you very much for your contribution.
We take your comment really seriously. But would you like to ask a specific question? Well, what I'm trying to say is that we need to bring down the cost of our health system, and we need to be there for the people who are here. This is my contribution. Thank you very much. Thank you very much to the executive management for your excellent work, for your effort, because you all have to be brave in what you do and have to be highly committed. And I'd like to extend my gratitude, grazie mille, to the executive committee. Thank you very much. And now, fireworks, pyrotechnics. Mr. Job. But Mr. Job is going to be short and concise. Promise, Mr. Job, please speak to the point. Mr. Liès, I'm going to be sick, and I hope I'm the last on your list. You are the last on my list.
Okay then. I'd like to comment on what the previous speaker, Mr. Fisher, said. He actually came on stage twice. He wasn't happy that you didn't address his questions properly. I was absolutely flabbergasted, like you, because you gave him an answer, but he thought you didn't give him an answer. I'm calling upon you, or I expect from you, or from Mr. Greco, the following: Mr. Fisher submitted his speech at 2:00 P.M. I would expect Mr. Greco to answer the question in writing. It was about business travel, what costs were incurred in 2023. This is what I would like to ask you to do. Please do answer the question, but in writing, because he has this question and still wants this to be addressed. Thank you very much. Thank you very much, Mr. Job. I think I did answer Mr.
Fisher's question, but you're right. I wasn't able to give the number of flights. Let's see whether we can perhaps provide this answer in writing to Mr. Fisher and to you, to make you happy, Mr. Job. Right. Would anybody else wish to speak? Nobody else is wishing to speak. What a relief. And now I have a very thrilling topic to discuss with you. Before the first vote, I'd like to briefly explain how to use the voting device, the so-called Televoter. And accept my apologies that this technology is not really accessible to everyone. The voting device has a color touch screen or display. This display can be switched on or reactivated at any time by touching the touch screen or pressing the red button on the side.
In addition, the display is automatically activated a few seconds before the start of a vote, and the relevant agenda item is displayed. The display is automatically dimmed after 3 minutes and switches off completely after a further 2 minutes. You can change the language under the language symbol. Under my vote symbol, you can see how you voted on the individual agenda items after the first vote. Under the info symbol, you can call up the information stored about you and see how many votes you represent. Each touch of a symbol is confirmed with a perceptible vibration. During the displayed voting time, you can choose from three colored symbols at the bottom of the voting device: a green for yes, red for no, and yellow for abstention. Once you've made a selection, the voting device vibrates.
The selected symbol is indicated by a tick, and the unselected symbols are dimmed. If you have accidentally pressed the wrong button, you can correct your vote within the voting time by simply pressing the correct symbol. Once the voting time has expired, the display will show which choice you have made. As soon as voting is closed, you can call up your previous votes under the my vote symbol, as mentioned above. If you have any problems with the voting device, please contact the election assistance in your sector or the information desk here in the hall immediately. The voting device can be used to conduct several votes or elections in one round. We will conduct the votes and elections at today's annual general meeting in one round, wherever possible and sensible. For this purpose, all votes or elections are displayed individually on the screen.
There is only room for three votes or elections on one screen page. If there is not enough space for all votes or elections on one screen page, you can scroll to the next page using the arrow at the bottom right or back to the previous page using the arrow at the bottom left. These arrows flash and will refer to the previous and next page until all votes or elections have been made on this page. As soon as I authorise the vote or election, a circle appears on the large screen representing the time window for the vote. The remaining voting time in seconds is displayed in the circle. You will see the circle displayed immediately as a test run. During this time, you can cast your vote using the voting device. Your vote will be recorded electronically.
This brings us to the votes on agenda items 1.1, 1.2, and 1.3, which we will conduct in one voting round. Anyone wishing to approve the management report and the 2023 annual and consolidated financial statements under agenda item 1, or the 2023 remuneration report under agenda item 1.2 in a consultative vote, or the 2023 sustainability report under agenda item 1.3 in a consultative vote must press the green button for the relevant agenda item on the voting device. Anyone who does not wish to grant approval must press the red button for the relevant agenda item. Anyone wishing to abstain from voting must press the yellow button for the relevant agenda item. Please cast your vote now. The voting window is now closed. Your votes will remain displayed on the screen of your voting device until all votes have been recorded and analyzed by the system.
The voting results will be available shortly. I will not read out the absolute number of votes for all votes and will, as a rule, only state the percentage of votes in favor. The exact number of yes and no votes or abstentions will be visible on the screen and recorded in the minutes. The decisive votes can be seen on the screen with voting results. The voting results are available. I note that you have approved the management report and annual and consolidated financial statements with 95.45%. I note that you have approved the remuneration report with 80.72% yes votes. I also note that you have approved the sustainability report 2023 with 91.56% yes votes. Thank you very much.
With that, we move on to agenda item 2, appropriation of retained earnings . Ladies and gentlemen, initially the board of directors proposes a distribution of a gross dividend of CHF 26 per share from retained earnings. Retained earnings, Zurich Insurance Group Limited, for the financial year 2023 amounts to approximately CHF 11.96 billion. Please note that this is not the consolidated result, but the statutory profit of the ultimate holding company, Zurich Insurance Company Limited. The board proposes that the distributable profit for 2023 be used as proposed in the invitation, and the dividend of CHF 26 gross per share, a total amount of around CHF 3.8 billion, be distributed, and the remaining amount of around CHF 8.16 billion be carried forward to the new account. If this proposal is approved, the dividend, less Swiss withholding tax, will be paid out from April 16th, 2024.
Anyone wishing to speak on this seems not to be the case. We will move to the vote on agenda item 2. Please vote now. Time is up. We will have the results available shortly. I note that you have approved the appropriation of available earnings, including the distribution of a dividend as proposed by the board of directors under agenda item 2, with 99.72% yes votes. The dividend of CHF 26 minus Swiss withholding tax will be paid out after April 16th, 2024. We move on to agenda item 3, discharge of the members of the board and the executive board. The board of directors proposes that discharge be granted to the members of the board, directors, and the executive board for their activities in financial 2023.
The motion for discharge also includes all members of the board and the executive board who will retire in 2023 and all newly elected or newly appointed members. Does anyone wish to speak? This seems not to be the case. Before the vote, I'd like to point out that persons who are or were responsible for the management of the company in 2023, members of the board and the executive board, may not participate in the vote on the discharge with their own or represented shares. Let's move to the vote on agenda item 3. Please vote now. Time is up. The results will be available shortly. I note that you have granted the members of the board of directors and the executive board discharge for their activities in financial 2023 with 98.44%.
Thank you, ladies and gentlemen, on behalf of the board of directors and the executive committee, for your trust. With this, we move on to the elections, agenda item 4. The general assembly must elect the chairman and the members of the board of directors, members of the remuneration committees, the independent proxy, and auditors. The term of office of all the aforementioned officeholders ends at the end of the next ordinary general assembly. As said, all members of the board of directors, with the exception of Dame Alison Carnwath, has reached the end of her term of office as standing for a further term of office. I am also happy to stand for re-election as member and chairman of the board for a further term of office. Information on the current members of the board can be found in the corporate governance report and the 2023 annual report.
On behalf of the board, I'm pleased to propose the election of John Rafter as a new member of the board of directors. John Rafter has 37 years of experience in finance and insurance. From 1987 to 2023, he worked for the Goldman Sachs Group in various roles, including as a partner. From 2020 to 2023, as a senior advisor. At Goldman Sachs, John Rafter specialized in the insurance industry and was particularly involved in complex M&A and capital markets projects. From 2010 to 2013, he was also a member of the board of directors at Rothesay Life Group, a life insurance group in the UK. John Rafter's excellent knowledge of the insurance industry and his outstanding financial expertise make him the ideal candidate for the Zurich board of directors. He will be happy to say a few personal words to you after the election.
We will now begin with agenda item 4.1.1 , the re-election of myself as a member and chairman of the board of directors for a term of office until the end of the next AGM. I hand over the chairmanship for my re-election to Christoph Franz. Ladies and gentlemen, the board of directors proposes that Mr. Michel Liès be re-elected as a member of the board and chairman of the board of directors for a term of office until the end of the next AGM. Are there any requests to speak on this? This is not the case. This brings us to the vote on agenda item 4.1.1 . Please vote now. Time is up. The result is available. I note that you have re-elected Michel Liès with a yes vote share of 98.45% as a member and chairman of the board of directors. Congratulations, Michel. Thank you.
Dear shareholders, thank you very much for your trust. This brings us to agenda items 4.1.2 to 4.1.12. In addition to the re-election of the aforementioned members of the board, the board of directors proposes the election of John Rafter as a new member of the board of directors, in each case for a term of office until the end of the next AGM. In view of the large number of elections, I would ask you to submit any votes on individual candidates before the ballot is held. Any request to speak on this? This seems not to be the case. With that, we move on to the re-elections of the current members of the board of directors in accordance with agenda items 4.1.2 to 411, and the election of John Rafter as a new member of the board of directors in accordance with agenda item 4.1.2 .
The elections will all be conducted in one go. Please vote now on agenda items 4.1.2 to 4.1.12. The time available for that election is 45 seconds. The time is up. Let's bear with the vote counters until we have the results. The results are now available. Nope, they're not.
Dinger? Who? Aber nicht hier. Sorry.
I'm sorry. What a disaster. I note that you have re-elected Joan Amble, Catherine Bessant, Christoph Franz by a large majority as members of the board of directors. You have also re-elected Michael Halbherr, Sabine Keller-Busse, Monica Mächler, and Kishore Mahbubani as members of the board by a large majority. And I finally note that you have re-elected Peter Maurer, Jasmin Staiblin , Barry Stowe, and John Rafter as members of the board of directors, and again by a large majority. I congratulate all members of the board and welcome John Rafter to the board.
Ich möchte mir.
I would like to take this opportunity to thank you, dear Alison, on behalf of the entire board of directors and the executive committee, for the many years of cooperation and your inspiring ideas, not only as the chair of the audit committee. Thank you very much indeed.
Now I would like to hand over to John Rafter.
Good afternoon, Zurich shareholders. Let me introduce myself. My name is John Rafter, and I would like to thank you for your trust in electing me to the board of the Zurich Insurance Group. By way of background, I'm an Irish citizen but currently live in the United States with my wife and four children. However, for much of my career, I was based in Europe. Until December, I was working at Goldman Sachs, where I had been for over 35 years. I was a partner in the investment banking division focused on the financial services sector. Although I advised banks and asset managers, most of my focus was on the insurance sector. Much of my activity involved advising on equity, market transactions, or on mergers and acquisitions. Over the years, I worked on transactions in Asia, the United States, and of course, Europe, including a number in Switzerland.
I was also, for several years, a member of the board of directors of Rothesay Life, a UK-regulated insurer. From an external perspective, I've admired Zurich's heritage and values. I have great respect for the management team and the board and for what they have achieved over the last several years. Zurich has an excellent model for today's complex operating environment. It is a balanced, diversified global business with strong capital levels. It also has a clear focus on customers. All these factors ensure Zurich creates sustainable value for shareholders. As a member of the board of directors, I believe that my background in financial analysis, my markets experience, and my history of providing advice in the insurance sector will serve as a valuable resource to my colleagues. I will promote values such as humility, integrity, risk management, sustainability, and excellence within the boardroom.
I look forward to spending more time in Zurich and in Switzerland more broadly, a city and a country that I have always enjoyed visiting. In conclusion, I'm very honored to accept the mandate to serve on the Zurich board, and I hope to contribute to the company's continued success. Thank you.
Thank you, John. This brings us to the next item on today's agenda, agenda item 4.2, re-election of the members of the remuneration committee. At today's annual general meeting, the members of the remuneration committee are to be elected individually by the annual general meeting. Only members of the board of directors are eligible for election. The chairman of the remuneration committee is appointed by the board of directors and not by the annual general meeting. All members of the remuneration committee have declared their willingness to accept re-election as members of the remuneration committee for a term of office until the end of the next annual general meeting. We begin with agenda item 2.1, my re-election as member of the remuneration committee for a term of office until the end of the next annual general meeting.
I'm handing over the chairmanship for my re-election once again to Christoph Franz.
Ladies and gentlemen, the board of directors proposes Mr. Michel M. Liès be re-elected as a member of the remuneration committee for a term of office until the end of the next annual general meeting. Are there any requests to speak? This doesn't seem to be the case. This brings us to the vote on agenda item 4.2.1. Please cast your vote now. The voting window is now closed, and we'll wait for the results. The election result is available. I note that you have re-elected Michel M. Liès as member of the remuneration committee. I'd like to congratulate you also on behalf of the board of directors. I'd like to give it back to you. Thank you very much. Once again, thank you very much, ladies and gentlemen, dear shareholders, for your trust.
This brings us to the re-election of the other members of the remuneration committee in accordance with agenda items 4.2.2 to 4.2.6, which we'll conduct in a single ballot. In view of the large number of re-elections, I would like to ask you to make any statements on individual candidates before the re-elections take place. Would anybody like to take the floor? This doesn't seem to be the case. Okay. Let's move on to the re-election of the other members of the remuneration committee in accordance with agenda items 4.2.2 to 4.2.6, which we will conduct in a single ballot. The board of directors proposes that Catherine Bessant, Christoph Franz, Sabine Keller-Busse, Kishore Mahbubani, Jasmin Staiblin be re-elected as members to the remuneration committee, each for a term of office until the end of the next annual general meeting. Please vote now on agenda items 4.2.2 to agenda items 4.2.6.
The time slot will remain open for 30 seconds. The voting window is now closed. I would like to ask you to be patient for a moment until the five election results are available. The election results are available now. I note that you have re-elected Catherine Bessant, Christoph Franz, Sabine Keller-Busse as members of the compensation committee by a large majority. I also note that you re-elected Kishore Mahbubani and Jasmin Staiblin as members of the remuneration committee by a large majority. I'd like to congratulate everyone on their election or re-election. This brings us to the next agenda item, 4.3, re-election of the independent proxy. The independent proxy is to be elected by the annual general meeting. The term of office of the independent proxy ends at the end of the next annual general meeting.
The law firm Keller AG Zurich, which is standing for re-election, fulfills the legal requirements and is available for re-election. Accordingly, the board of directors proposes that the law firm Keller AG Zurich be re-elected as independent proxy for a term of office until the end of the next annual general meeting. Would anybody like to speak on this agenda item? This doesn't seem to be the case. Right. Let's proceed to the vote. Agenda item 4.3, please cast your vote now. Voting time is now up. The election results are available. I note that you have chosen to re-elect the Keller AG law firm from Zurich with 99.77% of yes votes as an independent proxy. Congratulations on the law firm Keller AG in Zurich. Let's move on to 4.4, re-election of auditors. The auditors are to be elected by the annual general meeting.
The auditors standing for re-election Ernst & Young AG Zurich fulfill the legal requirements and are available for re-election. Accordingly, the board of directors proposes that the auditors Ernst & Young AG Zurich be re-elected as auditors for the 2024 financial year. Are there any requests to speak? This does not seem to be the case. So let's proceed to the vote on agenda item 4.4. And please cast your vote now. Voting time is up. I note that you have elected Ernst & Young as statutory auditors for the 2024 financial year with 94.24% for the 2024 financial year. Congratulations, Ernst & Young, on the re-elections. This brings us on to item 5, approval of remuneration. Agenda item 5 is divided into two sub-items, 5.1, approval of the remuneration of the board of directors, and 5.2, approval of the remuneration of the executive committee.
The maximum total remuneration of the board of directors and the executive committee submitted for approval under item 5 is explained in the invitation document. Information on the maximum total remuneration already approved and the remuneration actually granted for the 2023 financial year can be found in the 2023 remuneration report. I will now briefly explain both sub-items on the agenda before opening the discussion. The votes on agenda items 5.1 and 5.2 will then be conducted in one single voting round. I'd like to start with the maximum total remuneration of the board of directors. The board's proposed approval of the maximum total remuneration of the board of directors of CHF 6 million plus statutory employer contributions to social security schemes relates to the period from the 2024 AGM to the 2025 AGM.
The amount is based on the assumption that the number of members of the board of directors and the responsibilities assigned to them remain unchanged. At the 2023 annual general meeting, a maximum total remuneration of CHF 6 million was proposed and approved for the board of directors for the period from the 2023 AGM to the 2024 AGM. A total of CHF 5.8 million were actually paid out during this period. Now on to the executive committee. The approval proposed by the board of directors for the maximum total remuneration of the executive committee of CHF 83 million plus employer contributions to social security system refers to the 2025 financial year. The amount takes into account assumptions regarding the number of members of the executive committee and their remuneration structure.
The board of directors is convinced that a prospective vote on the maximum total remuneration of the executive committee is the most transparent approach. Utilization of the proposed amount, maximum total remuneration, requires both an excellent business result and exceptional performance by each individual member of the executive committee. The remuneration actually paid out or conditionally allocated to the executive committee for the 2025 financial year can be found in the 2025 remuneration report. With that, I'd like to open the discussion. Would anyone like to take the floor on this item? This doesn't seem to be the case. Right. This brings us on to the votes on agenda items 5.1 and 5.2. Please cast your vote now. The voting window is now open for 20 seconds. Now the time window, the infamous time window, is up.
I note that you have approved the proposed maximum total remuneration of the board of directors with 95.98% yes votes. I also note that you have approved the proposed maximum total compensation of the executive committee with 85.61% yes votes. Thank you for your trust, ladies and gentlemen. This brings us to the end of the formal part of today's annual general meeting. I'd like to thank you very cordially for attending this annual general meeting and for your interest in our company. I would like to point out that the next annual general meeting is expected to take place on the 9th of April, 2025. This concludes today's annual general meeting of Zurich Insurance Group Limited. I cordially invite you to an aperitif at the back of the hall and in the foyer, in the lobby of the Hallenstadion.
Please hand over your voting devices and your headphones to the assistants at the exits on your way to the aperitif. Merci beaucoup.