Zurich Insurance Group Ltd · SIX:ZURN

Zurich Insurance — Zurich Financial Services — FY2000 Earnings Presentation

12 slides from Zurich Insurance's earnings presentation, 2001

  1. Slide 1: Annual results 2000 Financial & operating review

    Annual results 2000 Financial & operating review Günther Gose Chief Financial Officer © Zurich Financial Services Analysts´ day 1 2001

  2. Slide 2: Lower capital gains reduced our IAS net income by 26%

    Lower capital gains reduced our IAS net income by 26% In USD millions 2000 % change % ch. LC Total business1 50,044+4.3%+6.7 IAS GWP 30,410+4.1%+9.8 Operating income2 3,611-33.2%-30.4 of which: realized gains3 2,330-29.8%n/a IAS net income 2,328-28.7%-25.6 Normalized net income4 2,096-5.5% - Shareho

  3. Slide 3: The contribution from life & fee businesses increased to 70%

    The contribution from life & fee businesses increased to 70% 2000 breakdown of IAS net income By region By business segment RoW Europe 4% Reinsurance 14% 10% Non-Life Life US 20% 42% 44% CH 20% UK Farmers 18% 24% Asset Mgmt 4% Reinsurance allocated equally to US and CH 3 Excluding “other” region

  4. Slide 4: Special items continued to affect results

    Special items continued to affect results Special items 2000 1999 % change Gains from IAS 19 153 Gains from life accounting changes1 139 Y2K remediation costs -80 Increase in contingency provision -210 Excess natural catastrophe losses -72 -140 Reserve strengthening2 -270 -88 Foreign exchange gains/

  5. Slide 5: Reduction of technical expenses improved our non-life combined ratio

    Reduction of technical expenses improved our non-life combined In USD million ratio... Combined ratios 2000 1999 % change1 Total GWP 18,899 17,211 15.7% RoW NEP 13,663 13,682 +6.2% Europe Loss ratio 75.8% 73.5% +2.3p.p CH Expense ratio 29.0% 31.9% -2.9p.p. UK 1999 Combined ratio2105.5% 106.1% -0.6p.

  6. Slide 6: Lower u/w result in other, lower investment returns led to decline in net income

    ... but a lower u/w result in “other”, lower investment returns, and the effect of special items led to a decline in net income In USD millions 2000 1999 change U/W result all regions -760-1,124+364 U/W result “other” 11290 -279 U/W result -749-834 85 Inv. income & realized gains2,9143,375-461 Net n

  7. Slide 7: The decline in loss reserves reflect reduced exposures and currency effects

    The decline in loss reserves reflect reduced exposures and currency effects Change in net loss and LAE reserves (Non-Life and Reinsurance) Difference between 1999 & 2000 Loss & LAE reserves -3,097 Changes FX effect (strong US Dollar) 800 Commutations 800 Z-US increased reinsurance cessions 750 Disab

  8. Slide 8: Results continue to improve in life

    Results continue to improve in life In USD million 2000 1999 % change New business margins in % GWP & deposits 16,29616,758 4.1%1 IAS net income 978994 4.7%1 2000 1999 l ta Normalized income 1,004877 14.5% To New bus. premiums3 9,7799,777 2.0%1 W Ro New business margins 5.2% 4.4% e CH ro p 0.8%pts E

  9. Slide 9: Good progress achieved in selling life and investment products

    Good progress achieved in selling life and investment products • Strong progress in life & investment sales – UK1: GBP 3.3 bn , +25% – Switzerland2: CHF 5.8 bn, +10% • Re-training of agents at Farmers starting to produce results – New business life premiums +29% at USD163 million – 3,000 agents curr

  10. Slide 10: Farmers' growth accelerated in the 2nd half of 2000

    Farmers’ growth accelerated in the 2nd half of 2000 2000 1999 % change % change In USD million H2 2000 Farmers Exchanges GPW 11,80011,1076.2% 9.3% Fees 1,5891,4906.6% 9.1% IAS net income 559577-3.1% 5.6% Normal. net income adjusted 543516 5.2% 11.0% Farmers Life IAS net income2 171161 6.2% Operating

  11. Slide 11: Investment performance and net funds inflow have improved in asset management

    Investment performance and net funds inflow have improved in asset management In USD million1 2000 1999 % change % funds in 1st 2 quartiles Fees 1,6961,5906.7%1 Germany* IAS net income 10198 3.1%1 Normalized net income 7784 -8.3% UK* Operating margin 15.7%19.2% AuM 440,371442,074-0.4% US FI 3rd part

  12. Slide 12: Overall performance in reinsurance segment was good despite reserve strengthening

    Overall performance in reinsurance segment was good despite reserve strengthening In USD million 2000 1999 % change GPW 4,873 4,512 8.0%1 NEP 3,978 3,305 20.4%1 IAS net income 230 188 22.3% Normalized net income 202 -126 n.m. Centre embedded value creation 152 220 -31.3% Centre embedded value total

Zurich Financial Services — FY2000 Earnings Presentation on 6ix