Slide 1: First quarter 2016 results
First quarter 2016 results Investor and analyst presentation Zurich, 29 April 2016 We make the world more resilient.
Slide 2: Business performance
Business performance First quarter 2016 results 2
Slide 3: All Business Units contributed to Swiss Re's strong Q1 2016 results
All Business Units contributed to Swiss Re’s strong Q1 2016 results • Swiss Re reports first quarter net income of USD 1.2bn, supported by solid underwriting and strong investment results; ROE of 14.6% • P&C Reinsurance delivers strong results with net income of USD 587m, reflecting benign nat cat e
Slide 4: Key figures
Key figures Corporate Life Group Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Capital items Q1 2016 Q1 2015 • Gross premiums written 7 008 3 405 804 603 - 11 395 10 076 • Premiums earned and fee income 3 956 2 835 865 284 - 7 940 7 562 • EBIT 809 398 110 406 1 1 709 1 912 • Net
Slide 5: Strong results in P&C Reinsurance despite market softening
Strong results in P&C Reinsurance despite market softening, with significant large and tailored transactions growth Gross premiums written EBIT Net income USD m USD m USD m 6 805 6 718 7 008 1 600 45 1 412 1 600 45 6 200 7 000 1 263 1 400 40 1 400 6 000 40 1 200 1 080 35 1 200 1 000 990 808 5 000 35
Slide 6: Solid L&H Reinsurance results, also driven by large and tailored transactions
Solid L&H Reinsurance results, also driven by large and tailored transactions Gross premiums written EBIT Net income USD m USD m USD m 3 230 3 405 500 45 3 101 3 500 3 000 2 883 484 450 449 40 500 45 400 2 500 450 398 40 350 277 35 231 400 244 35 300 2 000 350 30 300 250 30 215 25 1 500 250 200 20 2
Slide 7: Corporate Solutions achieves attractive growth and good results
Corporate Solutions achieves attractive growth and good results Gross premiums written1 EBIT Net income USD m USD m USD m 230 833 250 45 180 167 45 777 40 160 40 630 661 200 153 35 140 35 124 30 120 101 30 150 110 25 100 80 80 25 20 80 20 100 15 60 15 10 40 10 50 5 20 5 0 0 0 0 Q1 2013 Q1 2014 Q1 20
Slide 8: Life Capital delivers strong results supported by Guardian acquisition
Life Capital delivers strong results supported by Guardian acquisition Gross premiums written EBIT Net income USD m USD m USD m 450 406 45 603 400 40 650 527 350 35 400 45 321 550 40 300 30 350 35 450 300 199 250 25 206 30 350 248 219 200 20 250 200 25 20 99 250 150 15 84 150 78 15 48 100 10 150 100
Slide 9: Group investment portfolio continues to demonstrate strong results
Group investment portfolio continues to demonstrate strong results in a challenging yield environment Average invested assets Return on investments Running yield USD bn, basis for ROI calculation 118.2 114.9 113.0 110.9 3.9% 3.7% 3.7% 3.4% 3.4% 3.0% 3.0% 3.0% Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2013
Slide 10: Common shareholders' equity increased as net income and unrealised gains were only partly offset
Common shareholders' equity increased as net income and unrealised gains were only partly offset by the share buy-back Gov bonds 1.3 Corp bonds 0.9 USD m Sec products 0.0 Equities and others 0.0 Tax -0.6 183 1571 34 827 1229 - 571 32 415 2 Common shareholders' Net income Share buy-back Net change in
Slide 11: Swiss Re's Group capitalisation remains very strong
Swiss Re’s Group capitalisation remains very strong USD bn; % SST risk-bearing capital SST target capital SST ratio 70 245% 250% 241% 240% 60 223% 223% 230% 213% 50 220% 208% 210% 40 200% 30 190% 20 180% 170% 10 160% 38.5 18.5 40.7 19.1 48.7 19.8 52.2 21.6 52.6 23.6 50.1 22.5 0 150% 2011 2012 2013 2
Slide 12: Business update
Business update First quarter 2016 results 12
Slide 13: P&C Reinsurance maintains attractive portfolio despite challenging market environment
P&C Reinsurance maintains attractive portfolio despite continued challenging market environment January 2016 treaty renewals1 +20% YTD 2016 renewals (January – April) USD 8.5bn USD 10.2bn Treaty portfolio volume +19% Up for renewal Estimated 1 January 2016 outcome USD 11.9bn USD 10.0bn April 2016 tr
Slide 14: Significant potential for the insurance industry to narrow the protection gap
Significant potential for the insurance industry to narrow the protection gap USD bn Current premium Premium gap Property cat1 79 191 2 Mortality 412 306 0 200 400 600 800 Globally 71% of property cat and 43% of mortality risks are uninsured, resulting in an estimated annual premium gap of USD 497bn
Slide 15: First quarter 2016 results
First quarter 2016 results 15
Slide 16: Appendix
Appendix • Business segment results Q1 2016 – Income • Overall investment portfolio statement • Fixed income securities • Business segment results Q1 2016 – Balance sheet • Equities and alternative investments • Total equity and ROE Q1 2016 • Corporate calendar & contacts • P&C Reinsurance – Underwr
Slide 17: Business segment results Q1 2016 – Income statement
Business segment results Q1 2016 Income statement Re- Corporate Life Group Consoli- Total Total USD m insurance P&C Re L&H Re Solutions Capital items dation Q1 2016 Q1 2015 Revenues Gross premiums written 10 413 7 008 3 405 804 603 - -425 11 395 10 076 Net premiums written 10 029 6 948 3 081 588 255
Slide 18: Business segment results Q1 2016 – Balance sheet
Business segment results Q1 2016 Balance sheet Re- Corporate Life Group Consoli- End End 31 March 2016, USD m insurance P&C Re L&H Re Solutions Capital items dation Q1 2016 FY 2015 Assets Fixed income securities 65 525 34 029 31 496 5 590 26 805 16 - 97 936 82 331 Equity securities 2 851 1 914 937 9
Slide 19: Total equity and ROE Q1 2016
Total equity and ROE Q1 2016 Re- Corporate Life Group Total1 USD m insurance P&C Re L&H Re Solutions Capital items Q1 2016 Common shareholders' equity2 at 31 December 2015 18 762 12 964 5 798 2 262 4 942 6 452 32 415 Net income/loss attributable to common shareholders 831 587 244 80 321 -3 1 229 Div
Slide 20: P&C Reinsurance underwriting performance
P&C Reinsurance Underwriting performance Combined ratio Main drivers of change Net Under- premiums writing earned result Q1 2016 Q1 2016 Q1 2015 Q1 2016 USD m USD m Property 73.1% 80.9% • Both periods benefited from benign nat cat; Q1 1 532 292 2016 increase driven by rate reductions and development
Slide 21: P&C Reinsurance: 2016 renewals
P&C Reinsurance: 2016 renewals Portfolio weighting by line of business and region Gross premium volume, treaty portfolio Up for renewal April YTD Estimated outcome April YTD By line of business 16% 14% Casualty 42% 20% Nat cat 23% 51% Property 1 Specialty 1 19% 15% By region 26% 32% 39% EMEA 41% Ame
Slide 22: L&H Reinsurance: comparison of operating margin and net operating margin calculation
L&H Reinsurance: comparison of operating margin and net operating margin calculation Operating margin Net operating margin USD m Q1 20151 FY 20151 Q1 2016 USD m Q1 20152 FY 20152 Q1 2016 Premiums earned 2 592 10 567 2 823 Premiums earned 2 592 10 567 2 823 Fee income 15 49 12 Fee income 15 49 12 NII
Slide 23: Corporate Solutions underwriting performance
Corporate Solutions Underwriting performance Combined ratio Main drivers of change Net Under- premiums writing earned result Q1 2016 Q1 2016 Q1 2015 Q1 2016 USD m USD m Property 80.1% 76.3% • No major natural catastrophe loss in either 295 70 period Casualty 95.4% 110.4% • Q1 2016 impacted by two pr
Slide 24: Life Capital balance sheet breakdown
Life Capital balance sheet breakdown Closed Thereof: Open 31 March 2016, USD m books Guardian books Life Capital Assets Fixed income securities 26 686 11 608 119 26 805 Equity securities 1 1 - 1 Other investments 3 405 1 502 - 3 405 Short-term investments 1 241 523 57 1 298 Investments for unit-link
Slide 25: Return on investments (ROI)
Return on investments (ROI) Corporate Life Group Consoli- Total Total USD m P&C Re L&H Re Solutions Capital items dation Q1 2016 Q1 2015 Investment related net investment income 230 272 41 240 20 -8 795 728 Fixed income 178 257 34 222 - - 691 648 Equities and alternative investments -incl RE, PE, HF
Slide 26: Overall investment portfolio
Overall investment portfolio Other Cash and investments cash Mortgages and incl. policy equivalents other loans loans 7% Short-term 3% End 8% investments Equities USD bn Q1 2016 5% 6% Balance sheet values 174.6 Securitised products Unit-linked investments -30.5 4% Government bonds With-profit busine
Slide 27: Fixed income securities
Fixed income securities Government Credit • Overall increase in fixed income USD m bonds bonds securities (across both End government bonds and credit FY 2015 45 651 36 680 bonds) reflects the impact of the End Q1 2016 49 370 48 566 Guardian acquisition as well as mark-to-market gains due to the dec
Slide 28: Equities and alternative investments
Equities and alternative investments Equity securities Exchange-traded funds by sector Non-Cyclical Consumer Goods End End 3% 2% 1% Information Technology USD m FY 2015 Q1 2016 3% 4% Financials Equity securities 4 087 3 763 6% General Industrials 37% 6% Cyclical Services Private equity 1 526 1 469 R
Slide 29: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2016 29 July Second Quarter 2016 Results Conference call 3 November Third Quarter 2016 Results Conference call 2 December Investors’ Day Zurich 2017 23 February Annual Results 2016 Conference call Investor Relations contacts Hotline E-mail +41 43 285
Slide 30: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements Certain statements and illustrations contained herein are forward-looking. These statements (including as to plans objectives, targets and trends) and illustrations provide current expectations of future events based on certain assumptions and include an