Michael Derrer Fuchs/iStock Editorial via Getty Images Here at the Lab, we are not surprised to report that Zurich Insurance Group ( ZURVY ) ( ZFSVF ) has an outstanding Q1 printout. The company also reached our desired target price. Against this backdrop, we believe this is an appropriate time to revisit our 2026 forecasts and reassess our rating in light of the company’s improving operational an...
Michael Derrer Fuchs/iStock Editorial via Getty Images Here at the Lab, we are not surprised to report that Zurich Insurance Group ( ZURVY ) ( ZFSVF ) has an outstanding Q1 printout. The company also reached our desired target price. Against this backdrop, we believe this is an appropriate time to revisit our 2026 forecasts and reassess our rating in light of the company’s improving operational and financial momentum. In numbers, since our last update (FY 2025 results), Zurich Insurance delivered a total return of 5.95%. For our new readers, Zurich is one of the world’s largest insurers, and even if our positive stance has developed progressively over the years, we remained buyers due to 1) solid underlying fundamentals, 2) an impressive solvency ratio combined with generous shareholder remuneration, and 3) sector tailwinds due to the fact that consumers and businesses continue to place increasing emphasis on risk protection and financial security. Mare Evidence Lab Rating Update Fig 1 Q1 Results As usual, the company reported only the top-line sales figures and its 2026 outlook. That said, Zurich delivered a solid start to 2026, with growth across all segments. There are multiple reasons to remain supportive, but we will focus on that in the next paragraph. In numbers, looking at the segment results, the company reported Property & Casualty gross written premium (GWP) growth of 17% to $15.6 billion (Fig. 2). This performance was driven by pricing discipline, strong customer retention, and increased activity in infrastructure-related segments, including data centers. Also, the other two segments were up on a quarterly basis. The Farmers Exchanges segment was also up 4% to $7.72 billion, confirming a stable momentum in 2026. Also, the Life division GWP was up 5% to $9.85 billion. A closer look at the press release shows the segment's premiums declined by 5%. However, this was a deliberate action to eliminate lower-margin products. All in all, Zurich reiterated confid...
NicoElNino/iStock via Getty Images During the current “SaaSpocalypse,” Constellation Software (CSU)( CNSWF )( CNSWY ) delivered a slightly uneven but, in important ways, also encouraging quarter. Organic growth softened, and margins took the usual Q1 hit (and a bit more), but capital deployment pace (which is why anyone really owns the stock) remains a key bright spot. Maintenance and other recurr...
NicoElNino/iStock via Getty Images During the current “SaaSpocalypse,” Constellation Software (CSU)( CNSWF )( CNSWY ) delivered a slightly uneven but, in important ways, also encouraging quarter. Organic growth softened, and margins took the usual Q1 hit (and a bit more), but capital deployment pace (which is why anyone really owns the stock) remains a key bright spot. Maintenance and other recurring revenue, which is ~77% of total revenue, decelerated from 6% in 4Q'25 to 4% (FXN) in 1Q'26. Since 1Q'19, CSU’s average recurring organic growth was 4.8%, so this was a below-average quarter for CSU on the organic growth front. Excluding Altera, organic growth in recurring revenue was +5% (vs. +6% in 4Q'25 but the same as 1Q'25). Source: Company Filings, MBI Deep Dives, Daloopa This is the part where 5-6 years ago, an investor might shrug. But today, when much of the bear case on CSU is some flavor of “AI is going to eat your shitty software,” even a slightly below-average number invites scrutiny and discomfort. To be clear, CEO Mark Miller also wants CSU to post better organic growth. From the call : “ I continue to pressure our businesses on organic growth generally… I really would like to see them doing a better job on organic growth across the board, and I think this is an opportunity to push them harder on that with the advent of some tools to allow you to do things a little bit faster and a little bit better. ” CFO Jamal Baksh was more measured and thought the internal AI tooling would eventually show up in revenue, but it would take “some time.” Miller also reminded the typical reasons for how CSU loses customers and why AI should lead to additional opportunities. From the call (emphasis mine): “… the way we lose customers is, they get essentially go out of business, which happens, you can’t do much about that. They’re acquired by other customers, particularly larger customers. That’s another way of losing. You can’t do much about that. Other than you hope you -- ...