Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Zurich Financial Services — Morgan Stanley Insurance Seminar 2006
27 slides from Zurich Insurance's conference presentation, Dec 12, 2006
Slide 1: Zurich UK Life
Zurich UK Life Achieving competitive advantage and delivering profitable growth Morgan Stanley Insurance Seminar David Sims, CEO Zurich UK Life December 12, 2006
Slide 2: Disclaimer and cautionary statement
Disclaimer and cautionary statement Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted prof
Slide 3: Agenda
Agenda • Introduction • UK Life – building on a stable platform • UK Life – our profitable growth strategy • Key take aways 3 © Zurich Financial Services - Morgan Stanley Insurance Seminar, 12 December 2006
Slide 4: UK Life is a major market for Zurich
UK Life is a major market for Zurich Segments • Unit-linked 7% • Protection 5% • Structured bond products, tax advantaged 35% New Business APE1: products Total USD 1’669m • Products for expatriates 53% Markets Zurich International Solutions 8 European countries: 10% 22% UK, Germany, Ireland, 14% New
Slide 5: Agenda
Agenda • Introduction • UK Life – building on a stable platform • UK Life – our profitable growth strategy • Key take aways 5 © Zurich Financial Services - Morgan Stanley Insurance Seminar, 12 December 2006
Slide 6: UK Life has been fundamentally transformed
UK Life has been fundamentally transformed • Focus on fastest growing and most profitable markets – we no longer market our own annuities, regular premium pensions and with profits Market • Focus on protection and unit-linked products – now accounting for almost all APE Focus in the UK • Achieved st
Slide 7: Significant improvement in UK Life performance metrics
Significant improvement in UK Life performance metrics New business APE Business operating profit (BOP)1 UK Life Expenses2 in USD millions in USD millions in USD millions 2002-05 2002-05 2002-05 CAGR CAGR CAGR 11% 25% -11% 791 252 936 838 713 233 239 745 631 665 579 122 2002 2003 2004 2005 2002 2003
Slide 8: Agenda
Agenda • Introduction • UK Life – building on a stable platform • UK Life – our profitable growth strategy • Key take aways 8 © Zurich Financial Services - Morgan Stanley Insurance Seminar, 12 December 2006
Slide 9: UK Life has clear operating principles
UK Life has clear operating principles Mission Create a focused, effective manufacturing and wholesaling life assurance business under the Zurich brand, that is fit to compete in today’s market and delivers financial targets on a sustainable basis in a way that is consistent with our Values. Operati
Slide 10: UK Life has a strong focus on growth
UK Life has a strong focus on growth UK Life Business Operating Model • Focus on building leadership positions in our target markets via product innovation and being eaZy to do business with. Retail Retail Distribution Post sale Risk Risk Post Distribution Customer sale Service • Build strong and re
Slide 11: Growth is delivered by focusing on Target Markets
Growth is delivered by focusing on Target Markets UK Market Segmentation • Focus only on substantial market segments where there are prospects for sustainable growth. • Our target market is well defined; Single Premium Tax Advantaged Investments (TAI) and Protection. • We have the capabilities to di
Slide 12: TAI and Protection markets present significant opportunities
TAI1 and Protection markets present significant opportunities TAI1 Market Outlook • Discontinuities in the market Opportunities Key Market Driver Management Action present opportunities and • Rising stock-market and consumer • Overall proposition improvements to confidence capture market growth and
Slide 13: Robust methodology underpins our proposition developments
Robust methodology underpins our proposition developments Zurich Product Screens • Strong foundation where active with good market shares • Award winning products and features Mass market Bancassurance High End Niche • Disciplined and comprehensive toolkit for market management • E-enabled transacti
Slide 14: We deliver competitive advantage through pan-channel distribution
We deliver competitive advantage through pan-channel distribution UK Life APE split by distribution channel • UK Life deploy an intermediated, pan- 100% 9% 6% channel distribution strategy focussed on: 30% - Leveraging strength of ZIG distribution % of APE split 51% team to attack IFA market 50% - D
Slide 15: We build long term relationships with key distribution partners
We build long term relationships with key distribution partners New Business APE sold through IFA channel • Leverage the strength of our strategic relationship development programme with Rest of top 20 14% distributors. Strategic 6 52% • Drive continued growth in production from our existing Strateg
Slide 16: Our service is a key differentiator in the market
Our service is a key differentiator in the market • Maintain position as recognised industry leader in customer and intermediary service. • Foster development of strong relation- ships at all levels with customers through our highly valued and skilled sales and sales support teams. • Focus on core c
Slide 17: We organise our resources to optimise efficiency and effectiveness
We organise our resources to optimise efficiency and effectiveness UK Life Business Operating Model • Deliver a new Business Operating Model for UK Life through culture, Retail Retail Distribution Post sale people, systems and processes. Risk Hum Customer Distribution Service an Distribution Marketi
Slide 18: Agenda
Agenda • Introduction • UK Life – building on a stable platform • UK Life – our profitable growth strategy • Key take aways 18 © Zurich Financial Services - Morgan Stanley Insurance Seminar, 12 December 2006
Slide 19: Key take aways from Zurich
Key take aways from Zurich We believe the UK market place has specific niches which offer potential for attractive returns. We have a clear strategy and execution plans that make Zurich a winner in these selected niches. The UK Life business has a proven track record of delivery and has secured a st
Slide 20: Q & A
Q&A 20 © Zurich Financial Services - Morgan Stanley Insurance Seminar, 12 December 2006
Slide 21: Appendices
Appendices Appendix A Segmentation of the UK market Appendix B UK Life Operating Model Summary Appendix C TAI - market outlook Appendix D Protection - market outlook Appendix E Example: Product screen Appendix F Example: Environmental screen 21 © Zurich Financial Services - Morgan Stanley Insurance
Slide 22: Appendix A – segmentation of the UK market
Appendix A – segmentation of the UK market Focus areas for UK Life The size of the boxes denotes the relative size of the markets * Within these product markets we are targeting large schemes (through ZCP). This represents approx. 30% of the total new business in these product markets. 22 © Zurich F
Slide 23: Appendix B – UK Life Operating Model Summary
Appendix B – UK Life Operating Model Summary Retail Distribution Post sale Risk Customer Service Human Resources Asset Management Distribution Marketing Reassurance Proposition Zurich Group Development Externally Supplied Financial Supplied Competencies Competencies Legacy Portfolio Systems Legal Va
Slide 24: Appendix C – TAI market outlook
Appendix C – TAI1 market outlook Market discontinuities present opportunities and threats which are being pro-actively managed Key Market Driver Management Action • Rising stock-market and • Overall Proposition improvements Opportunities Consumer confidence to capture market growth and leverage mark
Slide 25: Appendix D – Protection market outlook
Appendix D – Protection market outlook Opportunities exist to significantly grow market share. We are proactively managing to secure these, and to mitigate threats. Key Market Driver Management Action Slow emergence of multi-ties Focus on strategic proposition Opportunities • • development over medi
Slide 26: Appendix E – Example: Product screen
Appendix E – Example: Product screen Mass Market Bancassurance High End Niche 26 © Zurich Financial Services - Morgan Stanley Insurance Seminar, 12 December 2006
Slide 27: Appendix F - Example: Environmental screen
Appendix F - Example: Environmental screen 27 © Zurich Financial Services - Morgan Stanley Insurance Seminar, 12 December 2006
Zurich Financial Services — Morgan Stanley Insurance Seminar 2006 on 6ix