Slide 1: Annual Results 2023
Annual Results 2023 Swiss Re investor and analyst presentation Zurich, 16 February 2024
Slide 2: Focus areas of Annual Results 2023
Focus areas of Annual Results 2023 FY 2023 P&C Re 2024 financial results renewals targets This investor and analyst presentation contains preliminary unaudited financial information for 2023. The audited financial statements for 2023 will be included in our 2023 Annual Report, together with updates
Slide 3: 2023 financial targets achieved
2023 financial targets achieved Swiss Re Group Q4 2023 FY 2023 FY 2023 key figures key figures targets P&C Net income Reinsurance Combined ratio 96.3% 94.8% <95% (USD m) 3 214 L&H 757 748 472 Reinsurance Net income (USD) 342m 976m ~900m Q4 22 Q4 23 FY 22 FY 23 Corporate Premium +5.0% +4.4% Solutions
Slide 4: P&C Reinsurance delivered improved underwriting performance
P&C Reinsurance delivered improved underwriting performance Reported combined ratio 115% Underwriting performance in 2023 110% • Combined ratio of 94.8% in line with target of <95% 105% • Improved underwriting performance driven by successful renewals and slightly lower-than-expected large nat cat l
Slide 5: Corporate Solutions continued to generate strong underwriting results
Corporate Solutions continued to generate strong underwriting results Reported combined ratio 130% 125% Underwriting performance in 2023 120% 115% • Combined ratio of 91.7% outperformed target of <94% 110% • Strong underwriting result reflects increased portfolio 105% resilience, driven by stringent
Slide 6: L&H Reinsurance achieved net income of USD 1bn
L&H Reinsurance achieved net income of USD 1bn Net income and excess mortality 1 000 20% Performance in 2023 750 15% 500 10% • Target of USD ~900m achieved with a net income of 250 5% USD 976m 0 0% • L&H Reinsurance benefitted from active in-force portfolio management and a strong investment result,
Slide 7: Continued tailwind from higher recurring investment income
Continued tailwind from higher recurring investment income Recurring 5.5 income yield1 and fixed income reinvestment yield (%) 5.0% 5.0 5.0% 4.5 3.9% fixed income reinvestment 4.0 yield in Q4 2023 3.5 3.0 2.5 Recurring income increased by 2.0 USD ~0.8bn 1.5 in 2023 vs. 2022 1.0 0.5 0.0 2019 2020 202
Slide 8: Proposed dividend of USD 6.80 reflects improved earnings power and strong capital position
Proposed dividend of USD 6.80 reflects improved earnings power and strong capital position Regular dividend per share (in USD)1 Capital management priorities +6% Ensure superior capitalisation Grow the ordinary dividend at all times and maximise with long-term earnings, and financial flexibility at
Slide 9: P&C Reinsurance achieved strong nominal price increases in the January renewals
P&C Reinsurance achieved strong nominal price increases in the January renewals Price change1 +9% Higher loss assumptions +11% USD bn Premium volume change +9% • 53% of Swiss Re’s reinsurance treaty 13.1 business renewed in January 12.0 1.5 -0.9 0.5 • +9% premium volume change • +9% price increase,
Slide 10: January renewals outcome features targeted growth in property and specialty
January renewals outcome features targeted growth in property and specialty Gross premium volume by line of business 1 (USD bn) Gross premium volume by region1 (USD bn) Outcome Outcome Up for renewal Premium volume Up for renewal Premium volume January January in January change in January change ren
Slide 11: 2024 IFRS targets reflect positive outlook for all business segments
2024 IFRS targets reflect positive outlook for all business segments 2024 financial targets Multi-year target P&C Reinsurance Reported combined ratio1 <87% Corporate Solutions Reported combined ratio2 <93% >14% Return on equity3 L&H Reinsurance Net income USD ~1.5bn Swiss Re Group Net income USD >3.
Slide 12: Financial highlights
Financial highlights Annual Results 2023 12
Slide 13: Key figures
Key figures Corporate Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items FY 2023 FY 2022 • Premiums earned and fee income 22 881 15 648 5 479 995 45 003 43 118 • Net income/loss 1 861 976 678 -301 3 214 472 • Return on investments 2.4% 4.7% 3.0% 6.1% 3.4% 2.0% • Combined
Slide 14: P&C Reinsurance underwriting result reflects improved pricing and portfolio structure
P&C Reinsurance underwriting result reflects improved pricing and portfolio structure Net premiums earned Net operating margin1 (%) Combined ratio (%) +9.3%pts 111.5 107.8 109.0 12.5 104.0 102.4 97.1 USD 22.9bn 94.8 9.9 3.2 2017 2018 2019 2020 20212 2022 20233 in 2023 2.6 8.2 5.3 USD22.0bn • 2023 co
Slide 15: L&H Reinsurance profitability returned to pre-pandemic levels
L&H Reinsurance profitability returned to pre-pandemic levels Net premiums earned Net operating margin1 (%) Recurring income yield2 and ROI (%) and fee income 4.1 3.3 3.4 3.3 3.2 +4.3%pts 3.0 2.8 8.6 5.0 4.3 4.7 1.4 3.7 3.7 3.4 USD 15.6bn 3.2 4.3 in 2023 12.3 2017 2018 2019 2020 20213 2022 2023 9.8
Slide 16: Corporate Solutions achieved another year of strong performance
Corporate Solutions achieved another year of strong performance Net premiums earned Net operating margin1 (%) Combined ratio (%) 133.4 +4.5%pts 127.9 117.5 115.5 15.5 11.0 93.1 USD 5.5bn 90.6 91.7 22.3 20.4 2017 2018 2019 20203 2021 20222 20234 in 2023 7.8 4.4 USD 5.5bn • 2023 combined ratio reflect
Slide 17: iptiQ achieved strong premium growth with EBIT in line with guidance
iptiQ achieved strong premium growth with EBIT in line with guidance Gross premiums written1 (USD m) Adjusted gross income2 (USD m) Earnings before interest and tax (EBIT) 1 100 +51% p.a. 851 +15% 723 60 211 371 52 USD -247m in 2023 2019 2020 2021 2022 2023 • Gross premiums written increased 29.3% y
Slide 18: Strong investment result driven by recurring income
Strong investment result driven by recurring income Return on investments (ROI) Investment portfolio positioning (USD bn) Net investment income (NII) (USD m) Recurring income yield3 (%) 3.6 104.3 107.8 0.5 2.9 2.9 3.4% 0.4 10.8 2.8 12.3 2.6 3 567 2.4 3 396 2.2 3 257 3 132 682 42.1 49.5 504 2 834 in
Slide 19: Increased earnings contribution from Alternative Capital Partners
Increased earnings contribution from Alternative Capital Partners Fee and commission revenues (USD m) Assets under management1 (USD bn) +68% +14% 195 3.3 2.9 116 85 57 58 27 2018 2019 2020 2021 2022 2023 2022 2023 • Revenues earned through alternative and traditional activities: • Continued strong m
Slide 20: Appendix
Appendix Annual Results 2023 20
Slide 21: Business segment results FY 2023
Business segment results FY 2023 Income statement Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation FY 2023 FY 2022 Revenues Gross premiums written 24 367 16 909 8 152 1 436 -910 49 954 47 889 Net premiums written 22 878 15 391 5 643 1 183 - 45 095 43 917 Change in unearn
Slide 22: Business segment results Q4 2023
Business segment results Q4 2023 Income statement Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation Q4 2023 Q4 2022 Revenues Gross premiums written 3 974 4 179 2 436 352 -140 10 801 10 313 Net premiums written 3 806 3 755 1 755 300 - 9 616 9 327 Change in unearned premium
Slide 23: Business segment results FY 2023
Business segment results FY 2023 Balance sheet Corporate End End 31 December 2023, USD m P&C Re L&H Re Solutions Group items Consolidation FY 2023 FY 2022 Assets Fixed income securities 42 567 25 974 8 069 602 - 77 212 74 573 Equity securities 53 56 17 30 - 156 2 114 Other investments 18 006 5 099 4
Slide 24: Total equity and ROE FY 2023
Total equity and ROE FY 2023 Total USD m FY 2023 Shareholders' equity at 31 December 2022 12 699 Net income attributable to shareholders 3 214 Dividends -1 850 Net change in unrealised gains/losses 2 258 Other (incl. fx) -175 Shareholders' equity at 31 December 2023 16 146 Non-controlling interests
Slide 25: Change in shareholders' equity mainly driven by net income and unrealised gains, offset by dividends
Change in shareholders' equity mainly driven by net income and unrealised gains, offset by dividends USD m Gov bonds 1.0 Corp bonds 1.5 Other 0.4 Tax -0.6 16 146 –175 2 258 –1 850 3 214 12 699 Shareholders’ Net income Dividends Net change in Other2 Shareholders’ equity attributable to shareholders u
Slide 26: P&C underwriting performance
P&C underwriting performance P&C Reinsurance and Corporate Solutions Combined ratio Main drivers of change in FY 2023 Net premiums earned (USD m) P&C Reinsurance Q4 2022 Q4 20231 FY 2022 FY 20231 Q4 2023 FY 2023 Property 62.4% 62.2% 98.7% 68.5% • Improvement reflects strong underlying profitability
Slide 27: P&C Reinsurance: combined ratio split
P&C Reinsurance: combined ratio split Quarterly performance (%) Full-year performance (%) Main drivers of change in FY 2023 105 105 102.4 100 100 96.3 94.8 • Current accident year (CAY) loss ratio excluding large 13.0 losses benefitted from improved margins at the 2023 95 4.8 95 renewals 91.0 6.1 1.
Slide 28: Corporate Solutions: combined ratio split
Corporate Solutions: combined ratio split Quarterly performance (%) Full-year performance (%) Main drivers of change in FY 2023 100 93.1 100 92.7 93.1 95 3.1 95 91.7 4.5 4.2 2.6 90 8.5 90 • Current accident year (CAY) loss ratio excluding large 7.1 7.3 losses confirms improved resilience of the busi
Slide 29: Return on investments (ROI) FY 2023
Return on investments (ROI) FY 2023 Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation FY 2023 FY 2022 Investment related net investment income 1 714 1 379 401 220 -457 3 257 2 274 Fixed income 1 120 1 027 246 18 - 2 411 1 871 Equities and alternative investments – incl. R
Slide 30: Return on investments (ROI) Q4 2023
Return on investments (ROI) Q4 2023 Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation Q4 2023 Q4 2022 Investment related net investment income 445 352 122 33 -99 853 619 Fixed income 321 265 73 5 - 664 516 Equities and alternative investments – incl. RE, PE, HF 51 8 - -4
Slide 31: Overall investment portfolio
Overall investment portfolio Other investments (incl. policy loans) Cash and cash equivalents Short-term investments 8% 4% Mortgages and other loans 9% 5% Equities 5% 30% Government bonds 39% Credit bonds Corporate End End USD bn1 P&C Re L&H Re Solutions Group items Consolidation FY 2023 FY 2022 Cas
Slide 32: Fixed income securities
Fixed income securities Government Credit USD m bonds bonds End FY 2022 37 722 36 851 • Decrease in government bonds driven by net sales End FY 2023 33 765 43 447 • Increase in credit investments reflects net purchases and credit spread tightening • Credit bonds include corporate bonds (USD 38.5bn)
Slide 33: Equities and alternative investments
Equities and alternative investments End End USD m FY 2022 FY 2023 Equity securities 1 535 122 Real estate by geography Private equity 3 301 3 647 5% 5% Hedge funds 9 6 Switzerland US 23% Real estate1 5 752 5 529 51% Germany United Kingdom Principal Investments 1 660 1 439 Other Direct Equity securi
Slide 34: Sensitivities
Sensitivities (USD bn, pre-tax) Change in market values (Equities and alternative investments, excl. real estate) -25% -10% +25% Estimated impact on shareholders' equity -1.3 -0.5 +1.3 Estimated impact on economic net worth (EVM) -1.3 -0.5 +1.3 Estimated impact on income/loss before income tax expen
Slide 35: Premiums by business segment
Premiums by business segment Portfolio split by region and line of business (% of net premiums earned and fee income in 2023) P&C Reinsurance Corporate Solutions L&H Reinsurance 15% 11% Americas Americas Americas 24% EMEA EMEA EMEA Asia Asia Asia 45% 53% 54% 35% 32% 31% 7% 2% 2% Property Property Mo
Slide 36: Premiums by market
Premiums by market 2023 Gross premiums written and fees assessed against policyholders by market 1 (USD m) Total Total Life & Health Non-Life FY 2023 FY 2022 United States 7 268 14 042 21 310 21 440 United Kingdom 1 950 2 430 4 380 4 244 Australia 822 1 146 1 968 1 949 Germany 192 1 388 1 580 1 560
Slide 37: Premiums by line of business and region
Premiums by line of business and region Premiums earned and fee income by line of business (USD bn) 31.3 30.2 33.2 33.7 34.5 38.6 40.8 42.7 43.1 45.0 13% 13% 12% 12% 14% 14% 14% 13% 13% 12% 26% 26% 26% 27% 28% 26% 25% 26% 25% 25% 11% 12% 10% 10% 10% 11% 11% 11% 12% 10% 24% 25% 28% 29% 27% 28% 26% 26
Slide 38: Financial calendar and contacts
Financial calendar and contacts Financial calendar 2024 13 March Publication of Annual Report 2023 12 April 160th Annual General Meeting Zurich 16 May Q1 2024 Results Conference call 22 August H1 2024 Results Conference call 14 November 9M 2024 Results Conference call Investor Relations contacts Hot
Slide 39: Annual Results 2023
@ Swiss Re Annual Results 2023, 39
Slide 40: 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
Slide 41: Legal notice
Legal notice ©2024 Swiss Re. All rights reserved. You may use this presentation for private or internal purposes but note that any copyright or other proprietary notices must not be removed. You are not permitted to create any modifications or derivative works of this presentation, or to use it for