Zurich Insurance Group Ltd · SIX:ZURN

Zurich Insurance — 9M 2016 Earnings Presentation

66 slides from Zurich Insurance's earnings presentation, Nov 10, 2016

  1. Slide 1: Results for the nine months ended September 30, 2016

    Results for the nine months ended September 30, 2016 Investor & Media presentation November 10, 2016 Zurich Insurance Group

  2. Slide 2: Content

    Content Use symbols to navigate through the document MAIN SECTION APPENDIX  Key highlights  General Insurance  Group BOP & NIAS BOP  Global Life  General Insurance  Farmers Exchanges   Global Life  Group Investments  Farmers  Group capital and solvency   Other Operating and Non Co

  3. Slide 3: Key messages

    Key messages Improved performance with net expense savings on track, Group ROE at 11.9%1 General Continuing underlying improvement, ongoing focus on Insurance underwriting discipline Good underlying growth plus favorable experience relative Global Life to assumptions Farmers Continued strong FMS res

  4. Slide 4: Key financials

    Key financials Good BOP result 9m-16 KEY RESULTS TARGET METRICS OVER STRATEGIC PERIOD 9m-16 Target BOP BOPAT ROE1 11.9% 12 - 14% USD 3.4bn (+36%) 9m-163 Target Z-ECM2 ~113% 100 – 120% NIAS Cumulative Cumulative USD 2.5bn Net cash 2014-164 2014-2016 (+11%) remittances > USD 10bn > USD 9bn 1 Business

  5. Slide 5: Group – BOP and NIAS

    Group – BOP and NIAS GI improving, other businesses on track BOP (USDm) NIAS (USDm) BOP TO NIAS (USDm) +372% 1,206 +342% 1,208 966 912 168 -138 786 95 618 -364 256 12 68 331 328 365 27.1% tax rate 1,208 398 351 392 912 9 207 -222 -183 -177 -87 -219 -21 Q3-14 Q3-15 Q3-16 Q3-14 Q3-15 Q3-16 Q3-16 RCG1

  6. Slide 6: General Insurance – Topline

    General Insurance – Topline Premium decline driven by focus on profitability GWP GROWTH IN LC1 (%) RATE CHANGE2 (%) Q3-15 Q2-16 Q3-16 -11% GC 2% 0% 1% 0% -2% -4% NAC 11% 1% 1% 2% -2% -5% EMEA -2% 1% 2% 2% 0% -15% IM 20% 5% 2% 1% 4% -7% Total3 6% 1% 2% 2% 1% Q3-16 Q3-15 Q3-14 1 In local currency. 2 G

  7. Slide 7: General Insurance – Tiering results

    General Insurance – Tiering results1 Focus on profitability over volume, full benefit to earn through 9m-16 RATE INCREASES BY TIER2 (%) 9m-16 RETENTION BY TIER2 (%) Tier 1 -2% Tier 1 83% Tier 2 0% Tier 2 83% Tier 3 4% Tier 3 78% Tier 4 13% Tier 4 60% Total 2% Total 79% 1 GI overall results based on

  8. Slide 8: General Insurance – Combined ratio over time

    General Insurance – Combined ratio over time Management actions are delivering results COMBINED RATIO (%) 108.9% 108.6% 99.3% 100.0% 97.7% 99.0% 98.5% 95.9% 95.6% 96.7% 96.7% 31.1% 32.8% 30.2% 30.9% 31.2% 31.6% 31.6% 30.3% 31.7% 29.7% 31.4% 3.7% 2.3% 6.7% 1.9% 3.0% 1.9% 1.4% 3.4% 1.1% 5.8% 1.9% 2.3%

  9. Slide 9: General Insurance – Combined ratio details

    General Insurance – Combined ratio details AY LR ex-cat improving, expense ratio flat vs FY-15 LOSS RATIO (%) EXPENSE RATIO (%) 77.7% 31.7% 31.2% 30.9% 31.1% 31.7% 30.5% 3.7% 71.8% 2.3% 0.9% 67.2% 14.0% 66.8% 13.7% 14.5% 13.9% 14.1% 14.9% 66.4% 3.5% 65.8% 3.0% 1.9% 2.3% 3.0% 68.0% 65.2% 67.3% 65.9%

  10. Slide 10: General Insurance – Regional combined ratios

    General Insurance – Regional combined ratios AY LR ex-cat improving, further actions needed in GC GC CR SPLIT (%) EMEA CR SPLIT (%) 137.6% 93.6% 97.7% 98.0% 21.5% 105.0% Size by regions, 96.8% 31.8% 31.7% 32.3% 2.9% 17.3% 24.3% 2.9% 3.0% Q3-16 NEP (USDm): 21.0% 0.4% 2.1% 3.2% 83.1% 65.2% 65.0% 84.2%

  11. Slide 11: General Insurance – BOP components

    General Insurance – BOP components Increased BOP reflects continuing improvement BOP BREAK DOWN (USDm) KEY DRIVERS (USDm) 786 618 618 -46 8 252 115 99 -2 573 457 569 -25 -14 25 -28 -21 727 -628 -36 -183 -183 Q3-14 Q3-15 Q3-16 Q3-15 UWR Inv. Inc. RCG NTR NCI Q3-16 Underwriting result (UWR) Investment

  12. Slide 12: Global Life – New business & net inflows

    Global Life – New business & net inflows Lower margins driven by economic variances and business mix APE (USDm)1,2 NBM & NBV1,2 NET INFLOWS & AUM NBM (%) Net inflows (USDbn) +14% 22.8 23.9 6.1 6.7 1,290 17.1 1.9 1,153 16 38 1,127 36 12 29 9 55 46 38 +5% 484 NBV (USDm) -20% AuM (USDbn) 278 216 230 23

  13. Slide 13: Global Life – BOP by region

    Global Life – BOP by region Increase in EMEA and LatAm partially offset by NA and FX BOP BY REGION (USDm)1 KEY DRIVERS (USDm) +11% 365 331 4 365 328 33 -27 26 -9 -15 15 31 4 13 13 328 29 31 47 4 40 13 4 13 68 65 40 68 38 38 233 250 225 250 233 -21 Q3-14 Q3-15 Q3-16 Q3-15 EMEA LatAm2 North APAC Other

  14. Slide 14: Farmers Exchanges – Growth and profitability

    Farmers Exchanges1 – Growth and profitability Continued growth driven mainly by rate GWP GROWTH (%) COMBINED RATIO2 (%) SURPLUS2 (USDbn) 36.6% 37.0% 102.0% 100.2% 35.5% 97.2% 3.8% 3.8% 3.2% 5.9% 3.8% 3.6% 3.1% 6.0 5.8 5.9 2.3% 94.0% 96.1% 96.4% 5.5 5.3 5.4 0.5 0.5 0.5 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q

  15. Slide 15: Farmers Exchanges – Customer KPIs

    Farmers Exchanges1 – Customer KPIs NPS and retention impacted by rate and underwriting actions NET PROMOTER SCORE2 RETENTION3 80.0% 79.9% 80.2% 79.9% 79.6% 40.4 43.0 43.5 43.3 39.7 9m-15 FY-15 Q1-16 HY-16 9m-16 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 NET GAIN / LOSS OF AGENTS4 NEW BUSINESS COUNT GROWTH5 7.0%

  16. Slide 16: Farmers – Financials

    Farmers – Financials Stable FMS results, one-off benefit at Farmers Re BOP (USDm) MGEP MARGIN (%)1 FARMERS RE CR (%)2 398 392 7.0% 7.1% 7.0% 103.3% 100.4% 97.1% 5.2% 351 3.0% 3.9% 336 352 346 94.1% 98.1% 96.5% 62 40 4 Q3-14 Q3-15 Q3-16 Q3-14 Q3-15 Q3-16 Q3-14 Q3-15 Q3-16 Catastrophes FMS FRe CR (exc

  17. Slide 17: Other Operating and Non Core Businesses – BOP

    Other Operating and Non Core Businesses – BOP Timing effects and one-off items impact quarterly results OOB BOP (USDm) NON CORE BOP (USDm) 62 -38 -24 -48 -51 -78 -115 -133 24 -126 -171 -139 8 9 -170 -171 -177 -219 -249 -21 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Headquarters Hold

  18. Slide 18: Group Investments – Investment income yield

    Group Investments – Investment income yield1 Higher risk premium offset by lower yields GENERAL INSURANCE GLOBAL LIFE GROUP 1.81% 2.60% 2.18% Equity 1.88% Equity 2.59% Equity 2.19% 1.54% Reinvestment 2.32% Reinvestment 1.81% Yield at Yield at 1.99% 2.25% 2.12% ~1.7%2 ~1.5%2 Debt 1.85% Debt 2.30% Deb

  19. Slide 19: Group – Balance sheet and capital

    Group – Balance sheet and capital Strong capital position SHAREHOLDERS’ EQUITY (USDm) SOLVENCY RATIOS (%) 176 196% 252 -505 32,468 189% 167% 912 31,632 122% 121% 113% HY-16 NIAS Net URG/L CTA Pension 9m-16 Z-ECM SST1 plans & other FY-14 FY-15 9m-162 1 The Swiss Solvency Test (SST) ratio is calculate

  20. Slide 20: Key messages

    Key messages Improved performance with net expense savings on track, Group ROE at 11.9%1 General Continuing underlying improvement, ongoing focus on Insurance underwriting discipline Good underlying growth plus favorable experience relative Global Life to assumptions Farmers Continued strong FMS res

  21. Slide 21: 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 predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the ‘Group’).

  22. Slide 22: Appendix

    @ ZURICH Appendix

  23. Slide 23: GI Global Corporate – KPIs

    GI Global Corporate – KPIs Stabilization vs FY-15, further improvements expected 9m-16 KEY FINANCIALS GWP Zurich rate Combined USD -263m USD 360m Growth1 change2 Ratio -11% 1% 101% 113.4% 100.9% 22.7% 22.8% 3.3% 5.9% 3.5% KEY DRIVERS 77.1% 78.7%  GWP down mainly as a result of lower retention and n

  24. Slide 24: GI North America Commercial – KPIs

    GI North America Commercial – KPIs Excluding RCIS AY LR ex-cat improving vs FY-15 9m-16 KEY FINANCIALS GWP Zurich rate Combined USD 577m USD 656m Growth1 change2 Ratio -1% 2% 97% 98.0% 97.0% 31.3% 30.6% 1.9% 4.0% KEY DRIVERS 64.0% 65.0%  Excluding RCIS, premium level is declining slightly due to ti

  25. Slide 25: GI – Q3-16 P&L impact of RCIS acquisition

    GI – Q3-16 P&L impact of RCIS acquisition Incremental NEP of USD 130m with different CR composition Q3-16 IMPACT GENERAL INSURANCE Q3-16 IMPACT NAC GI excl. NAC excl. Total GI RCIS1 Total NAC RCIS1 RCIS RCIS GWP (USDm) 7,232 46 7,186 GWP (USDm) 2,544 46 2,498 NEP (USDm) 6,600 130 6,470 NEP (USDm) 2,

  26. Slide 26: GI EMEA – KPIs

    GI EMEA – KPIs Good progress continuing 9m-16 KEY FINANCIALS GWP Zurich rate Combined USD 625m USD 778m Growth1 change2 Ratio -4% 2% 95% 97.4% 95.2% 31.6% 31.2% 2.3% 2.6% KEY DRIVERS 65.8% 63.7%  GWP decrease mainly driven by lower new business in UK, Germany, Switzerland and Italy and the sale of

  27. Slide 27: GI International Markets – KPIs

    GI International Markets – KPIs AY loss ratio continues to improve, growth impacted by exits 9m-16 KEY FINANCIALS GWP Zurich rate Combined USD 82m USD 334m Growth1 change2 Ratio -4% 2% 94% 103.0% 93.9% 45.8% 45.1% KEY DRIVERS 1.7% 0.6% 56.5% 52.1%  Growth in Latin America is offset by the exit of l

  28. Slide 28: GI – Rate change monitor

    GI – Rate change monitor Rate increases driven by re-underwriting actions Q3-16 ZURICH RATE CHANGE ASSESSMENT Business Assessment Rate increases slightly above prior year levels reflecting focus on re-underwriting with lower Group levels in the US due to market pressures. Higher rates in EMEA reflec

  29. Slide 29: GI – Catastrophe reinsurance

    GI – Catastrophe reinsurance Program further benefitted from lower reinsurance prices CATASTROPHE REINSURANCE TREATIES (USDm) 10 200 105 10 200 10 200 750 10 200 Single global USD 200m treaty, which can be applied to any region2 750 750 10 350 750 427 350 350 Single global USD 750m treaty, which can

  30. Slide 30: GL – New business by pillar

    GL – New business by pillar APE growth with lower NBM driven by econ. variances and mix Q3-16 KEY FINANCIALS1 APE (USDm) CLP single NBM PVNBP 1,290 premium 1,153 1,127 339 550 407 17.1% USD 11.3bn USD 0.9bn 434 382 451 380 338 289 Q3-14 Q3-15 Q3-16 KEY DRIVERS NBV decreased mainly from adverse inter

  31. Slide 31: GL – Net inflows & assets under management

    GL – Net inflows & assets under management Higher net inflows partially offset by FX NET INFLOWS BY REGION (USDbn)1 AUM DEVELOPMENT (USDbn)2 6.7 269 0.2 257 9 -4 6.1 7 37 1.8 38 1.1 0.7 115 1.5 103 0.6 1.9 0.2 4.3 1.5 3.0 116 117 0.7 0.0 -0.2 -0.1 -0.3 Balance as Net inflows Market FX Balance as 9m-

  32. Slide 32: Farmers Exchanges – GWP

    Farmers Exchanges1 – GWP Growth primarily driven by rate DEVELOPMENT OF GWP BY BUSINESS LINE (USDm) +3.7% +3.8% 15,008 5,125 14,466 4,939 5,906 +10.2% 2,062 +11.4% 5,361 1,851 -8.1% -10.2% 791 727 256 230 450 452 +0.4% 154 153 -0.8% 3,788 4,003 +5.7% 1,368 1,419 +3.7% 1,791 1,840 +2.7% +3.0% 580 597

  33. Slide 33: Farmers Exchanges – PIF/VIF

    Farmers Exchanges – PIF/VIF1 VIF growth in Auto business slowing down DEVELOPMENT OF PIF/VIF BY BUSINESS LINE (THOUSANDS) -0.4% -0.7% 19,016 18,935 19,069 18,935 8,109 8,330 +2.7% 8,315 8,330 +0.2% -13.6% 909 785 846 785 -7.2% 757 732 -3.2% 749 732 -2.2% 4,800 4,841 +0.8% 4,834 4,841 +0.1% +2.0% +0.

  34. Slide 34: Farmers Exchanges – Combined ratio

    Farmers Exchanges – Combined ratio Continued impact of unfavorable claims trends in Auto business COMBINED RATIO1 BY BUSINESS LINE (%) Auto 110.0% Auto 107.9% 105.4% 107.9% Bristol West2 101.4% Bristol West2 101.3% 105.9% 104.8% 21st Century 107.6% 21st Century 107.1% CA/HI2 94.7% CA/HI2 104.6% 104.

  35. Slide 35: Farmers Exchanges – Combined ratio history

    Farmers Exchanges – Combined ratio history High overall catastrophe impact due to Texas storms in first half QUARTERLY COMBINED RATIO (%) Incl. Incl. 17 Catastrophe Incl. 120 Ike & Gustav Events 13 Catastrophe Events Incl. 115 13 Catastrophe Incl. Incl. Events 13 Catastrophe Texas storms 110 Incl. E

  36. Slide 36: Group Investments – Asset allocation

    Group Investments – Asset allocation Sources of investment risk and return are balanced ASSET ALLOCATION1 RISK DIVERSIFICATION RISK DRIVERS2 Total Group Investments: USD 203bn 3% 6% 0% 9% 4% 1% 100% 5% 27% 2% 31% 37% 23% 22% 82% Sum of single Investment Investment security risks risks risk relative

  37. Slide 37: Group Investments – Debt securities portfolio

    Group Investments – Debt securities portfolio1 Debt securities portfolio is of a high quality BY CATEGORY BY RATING Total debt securities: USD 150bn 12% 1% 4% 20% 26% 47% 40% 16% 33% Government and government related bonds MBS/ABS2 AAA A Non-rated Corporate bonds AA BBB Non-investment grade 1 Accoun

  38. Slide 38: Group Investments – Bond portfolio

    Group Investments – Bond portfolio1 High quality and well diversified BY SEGMENT BY RATING BY COUNTRY Total bonds: USD 132bn  25% USA 8% 1%  9% Italy 17% 4%  9% United Kingdom 33% 29%  9% France Bond  9% Germany securities  8% Switzerland 64% 32%  8% Spain 60%  3% Netherlands 17%  2% Austra

  39. Slide 39: Group Investments – Government bonds & Other

    Group Investments – Government bonds & Other1 High quality and well diversified BY SEGMENT BY RATING BY COUNTRY Total government bonds: USD 71bn  20% USA 8% 0%  14% Italy  4% 23% 11% Germany 31% 24%  10% Spain Bond  9% France securities  8% Switzerland 64% 4%  8% United Kingdom 61%  3% Belgi

  40. Slide 40: Group Investments – Corporate bonds

    Group Investments – Corporate bonds1 High quality and well diversified BY SEGMENT BY RATING BY INDUSTRY Total corporate bonds: USD 61bn  49% Financial Institutions 7% 2% o/w 90% Banks 14% 4% o/w 5% Insurance 35%  18% Manufacturing Bond 33% 14%  8% Utilities securities  5% Oil & Gas  4% Telecom

  41. Slide 41: Group – Economic capital models

    Group – Economic capital models Strong capital position Z-ECM RATIO DEVELOPMENT (%) SST1 RATIO DEVELOPMENT (%) 11% 1% 0% -5% 4% 1% -7% -15% 196% 121% 189% -9% -3% 107% FY-15 Business Ins. Risk2 Market Market Cap. Q2-16 FY-14 Business Ins. Risk2 Market Market Cap. FY-15 profit risk change mov., profi

  42. Slide 42: Group – Z-ECM components

    Group – Z-ECM components Well diversified capital base by risk type HY-16 AFR1 COMPOSITION (USDbn) RBC1 BY RISK TYPE AND BUSINESS Market risk Shareholders equity 32 2% Re-ins credit risk 4% 5% 10% P&R risk2 Dividend accrual 1 55% Natural cat risk 21% Life insurance risk Net intangibles 18 2% Operati

  43. Slide 43: Group – Z-ECM sensitivities

    Group – Z-ECM sensitivities1 Z-ECM resilient to market movements Z-ECM RATIO IMPACT2 Actual value as of HY-16 107% Interest rate +100 bps 112% Interest rate -100 bps 99% USD appreciation +10% 108% Equities +20% 109% Equities -20% 104% Credit spreads +100 bps3 89% CS excl. Euro sovereign +100 bps3 95

  44. Slide 44: Group – EPS, BVPS and ROE calculations

    Group – EPS, BVPS and ROE calculations1 EPS AND BVPS (CHF) BOPAT ROE AND ROE (%) No., CHF FY-15 9m-16 USDm, % FY-15 9m-16 Common shares issued 150.40m 150.53m SHE 31,178 32,468 Treasury shares 1.24m 1.20m Net URGL / CF hedges 2,850 5,249 Common shares outst. 149.16m 149.33m Adj. SHE 28,328 27,219 WA

  45. Slide 45: Group – Currency impact

    Group – Currency impact Unfavorable translational FX impact in Global Life results 9M-16 KEY RESULTS KPI USDm reported at constant currency BOP 3,403 +36% +43% Group NIAS 2,526 +11% +17% GWP 25,749 -3% 0% NEP 19,827 -6% -3% General Net underwriting result 315 nm nm Insurance Investment income 1,534

  46. Slide 46: Commentary

    @ ZURICH Commentary

  47. Slide 47: Page 3: Key messages

    Page 3: Key messages Zurich’s underlying results improved in the third quarter driven by a combination of growth in Global Life (GL) and Farmers, as well as underlying improvement in General insurance (GI). Expenses on an absolute basis have continued to fall reflecting actions taken earlier in the

  48. Slide 48: Page 4: Key financials

    Page 4: Key financials Q3-16 Business operating profit (BOP) for the Group was USD 1.2bn and net income attributable to shareholders (NIAS) was USD 0.9bn, with BOP at the highest quarterly level of the year. The Group BOPAT ROE has reached 11.9% for the year to date, moving towards the 12-14% target

  49. Slide 49: Page 5: Group – BOP and NIAS

    Page 5: Group – BOP and NIAS Q3-16 BOP is up 372% compared to Q3-15 with all segments contributing to growth and with General Insurance showing the largest improvement following the adverse developments of Q3-15. This improvement is also reflected within NIAS which is up 342% in the discrete third q

  50. Slide 50: Page 6: General Insurance – Topline

    Page 6: General Insurance – Topline Gross written premium (GWP) in local currency declined by 7% in Q3-16. For 9m-16 GWP was flat in local currency and down 5% if adjusted for the acquisition of RCIS. This reduction is in line with expectations and driven by the ongoing focus on profitability agains

  51. Slide 51: Page 7: General Insurance – Tiering results

    Page 7: General Insurance – Tiering results Updated tiering results for the Group continue to be encouraging. Overall rate increases on renewal business were 2% for 9m-16, with substantial variation in the level of increases achieved across the various tiers of the portfolio. The focus on the lowest

  52. Slide 52: Page 8: General Insurance – Combined ratio over time

    Page 8: General Insurance – Combined ratio over time The reported combined ratio (CR) for Q3-16 was 98.5%, which is on a similar level as Q1 and Q2 and much lower than the levels seen in 2015. The accident year (AY) loss ratio excluding catastrophes for 9m-16 improved to 65.9%, almost 2 percentage p

  53. Slide 53: Page 9: General Insurance – Combined ratio details

    Page 9: General Insurance – Combined ratio details Looking at the AY loss ratio in more detail, large man-made losses in Q3-16 were 0.8 percentage points lower than in Q3-15 and 0.6 percentage points higher than at HY-16. The 9m-16 position is similar to HY-16 and 0.8 percentage points lower than FY

  54. Slide 54: Page 10: General Insurance – Regional combined ratios

    Page 10: General Insurance – Regional combined ratios Looking at the performance by region: Global Corporate’s combined ratio of 105% for Q3-16 is significantly lower than for Q3-15 and FY-15. This is mainly driven by a favorable impact from prior year reserves, the absence of major catastrophes and

  55. Slide 55: Page 11: General Insurance – BOP components

    Page 11: General Insurance – BOP components The General Insurance BOP for the quarter was USD 618m, which is a sharp improvement compared to the material losses in Q3-15 and Q4-15. Compared to Q3-15, the increase in the General Insurance underwriting result is reflected in the decrease of the combin

  56. Slide 56: Page 12: Global Life – New business & net inflows

    Page 12: Global Life – New business & net inflows Q3-16 Global Life new business APE volumes increased 20% in local currency compared to the prior year quarter, with strong growth in LatAm driven by a large corporate protection contract in Zurich Chile, and in Spain where increases in Banco Sabadell

  57. Slide 57: Page 13: Global Life – BOP by region

    Page 13: Global Life – BOP by region Global Life BOP increased 16% in local currency, or 11% compared to the prior year quarter in US dollars, to USD 365m. In EMEA, local currency BOP earnings increased by 12%, growing 7% in USD, where favorable experience relative to assumptions in the UK and posit

  58. Slide 58: Page 14: Farmers Exchanges – Growth and profitability

    Page 14: Farmers Exchanges – Growth and profitability Growth momentum at the Farmers Exchanges, which are owned by their policyholders, continued at the same pace as in previous quarters with continuing operations growing at 5.5%, both over the quarter and year-to-date. Growth continues to be largel

  59. Slide 59: Page 15: Farmers Exchanges – Customer KPIs

    Page 15: Farmers Exchanges – Customer KPIs Price continues to be an important factor influencing customer satisfaction and retention. Not unexpectedly, rate and underwriting actions taken to restore the profitability of the auto books had some impact on those metrics. November 10, 2016  ? Results f

  60. Slide 60: Page 16: Farmers – Financials

    Page 16: Farmers – Financials Farmers Management Services BOP increased 1.7% to USD 352m reflecting higher management fees partially offset by higher costs. After a loss in the first half Farmers Re BOP turned positive in the third quarter, driven by lower catastrophe losses and a favorable accounti

  61. Slide 61: Page 17: Other Operating and Non Core Businesses – BOP

    Page 17: Other Operating and Non Core Businesses – BOP Other Operating Businesses BOP was a loss of USD 177m in Q3-16. This is mainly due to FX gains in Holding & Finance and is below the expected run-rate. For Q4 higher headquarter costs are expected, with the full year loss expected to be in line

  62. Slide 62: Page 18: Group Investments – Investment income yield

    Page 18: Group Investments – Investment income yield Annualized new money yields for debt securities were around 1.7% for General Insurance and around 1.5% for Life. Compared to Q2-16 the gap to the annualized accounting yield has widened slightly reflecting general trend in yields and the drop in c

  63. Slide 63: Page 19: Group – Balance sheet and capital

    Page 19: Group – Balance sheet and capital Shareholders’ equity increased by USD 0.8 billion to USD 32.5 billion in the quarter largely due to retained earnings, while unrealized capital gains and FX movements were offset by an increase in defined benefit pension liabilities. Z-ECM at end of June wa

  64. Slide 64: Page 20: Key messages

    Page 20: Key messages In summary, this result builds on the good start to the year and the improvement in underlying results. The General Insurance underlying combined ratio is improving and the business will continue to work to further improve the result over coming quarters, particularly within th

  65. Slide 65: For further information

    For further information CALL US VISIT OR FOLLOW US Investor Relations Richard Burden +41 44 628 96 40 Aaron Beharelle +41 44 625 25 50 André Meier +41 44 625 37 75 Gianni Vitale +41 44 625 48 26 Rating Agency Management Michèle Matlock +41 44 625 28 50  Investor Relations website  Financial result

  66. Slide 66: Calendar

    Calendar:  November 17, 2016, Investor Day, London  February 9, 2017, Annual Results 2016  March 21-22, 2017, Morgan Stanley European Financials Conference 2017, London  March 29, 2017, Annual General Meeting 2017  May 11, 2017, Results for the three months ended March 31, 2017  May 30, 2017,

Zurich Insurance Group — 9M 2016 Earnings Presentation on 6ix