Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — FY2013 Earnings Presentation
73 slides from Zurich Insurance's earnings presentation, Feb 13, 2014
Slide 1: Annual Results 2013
Annual Results 2013 Analysts Presentation February 13, 2014
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 predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the “Group”).
Slide 3: Martin Senn, Chief Executive Officer
Martin Senn Chief Executive Officer
Slide 4: Solid results underpin high cash returns
Solid results underpin high cash returns BOP NIAS NIAS ROE2 USD 4.7bn USD 4.0bn 12.0% Dividend per share proposal4 For year ended For year ended For year ended 31 December 2013 31 December 2013 31 December 2013 Z-ECM3 Net cash CHF 17 BOPAT ROE1 remittances to be paid in April 2014 10.5% 120% USD 2.9
Slide 5: Drivers of our 2013 performance
Drivers of our 2013 performance Good growth in priority markets and continued rate increases General Most of the portfolio is delivering hurdle returns Insurance Some areas not performing to expectations Strong growth in protection business, mainly in Emerging Markets Global Life Higher ri
Slide 6: Key priorities for 2014
Key priorities for 2014 Group strategy Key priorities for 2014 Prioritizing Corporate: enhancing capabilities, including joint Global Corporate / CLP offering investment in 1 distinctive Commercial: enhancing capabilities in NAC, leveraging predictive analytics positions Select retail: driving
Slide 7: Key messages
Key messages Solid operating profit in all core businesses Good growth in priority GI and Life markets, Farmers continues transition Strong cash remittances and capital position underpin CHF 17 per share dividend proposal 2014 priorities driven by new strategy © Zurich Insurance Company Ltd
Slide 8: Vibhu Sharma, Interim Chief Financial Officer
Vibhu Sharma Interim Chief Financial Officer
Slide 9: Business operating profit by segment
Business operating profit by segment in USD millions Q4-13 Q4-121 Change 2013 20121 Change General Insurance 736 27 nm 2,859 2,112 35% Global Life 294 385 -24% 1,272 1,351 -6% Farmers (incl. Farmers Re) 408 411 -1% 1,516 1,402 8% Other Operating Businesses -356 -260 -37% -1,039 -910 -14% Total BOP O
Slide 10: Reconciliation from BOP to NIAS
Reconciliation from BOP to NIAS in USD millions Q4-13 Q4-121 Change 2013 20121 Change Business Operating Profit 1,113 573 94% 4,680 4,084 15% BOP attr. to Non-contr. int. 66 80 -18% 288 164 76% Net capital gains/losses 578 947 -39% 1,143 1,278 -11% Restructuring provisions2 -212 -72 nm -250 -211 19%
Slide 11: General Insurance – Key performance indicators
General Insurance – Key performance indicators in USD millions Q4-13 Q4-12 Change 2013 2012 Change GWP and policy fees 8,256 8,301 -1% 36,438 35,610 2%1 Rate change2 4.2% 4.3% -0.1pts 3.7% 3.8% -0.1pts Loss ratio 68.6% 75.5% 6.8pts 68.3% 70.3% 2.0pts Expense ratio 27.4% 28.7% 1.3pts 27.2% 28.0% 0.8p
Slide 12: General Insurance – Rate Change Monitor and GWP performance
General Insurance – Rate Change Monitor1 and GWP performance Rate Change Monitor1 FY-13 Discrete Q4-13 Int’l Total Int’l Total GC NAC Europe Markets GI GC NAC Europe Markets GI Personal Lines n/a n/a 3% 4% 3% n/a n/a 2% 5% 3% Commercial Lines 4% 5% 3% 3% 4% 5% 4% 3% 3% 5% Gross Written Premiums, tra
Slide 13: General Insurance – Combined ratio trends
General Insurance – Combined ratio trends Large LR Underlying LR Underlying and Large Losses1 Prior year development2 80% 74.9% 5% 4.8% 72.6% 4.1% 70.0% 70.3% 4% 70% 3% 2.4% Combined Ratio 60% 2.1% 2% in % of NEP, as reported 66.3% 64.3% 50% 61.4% 60.3% 1% 100% 98.9% 98.4% 97.9% 40% 0% 2010 2011 201
Slide 14: General Insurance – BOP and combined ratio by business
General Insurance – BOP and combined ratio by business Business operating profit Combined ratio (%) in USD millions Global CAT3 92.3% 2013 2012 Change Corporate 0.6 CAT3 for the years ended December 31 6.8 99.1% Global Corporate 879 498 77% NA 95.3% Commercial CAT3 4.5 99.7% North America Commercial
Slide 15: Global Life – Key performance indicators
Global Life – Key performance indicators in USD millions 2013 2012 Change Change for the years ended December 31 in LC1 GWP and policy fees (incl. insurance 27,095 30,259 -10% -10% deposits) Net inflows to Assets under Mgmt. -2,694 1,431 nm nm Annual Premium Equivalent (APE) 2 4,418 4,767 -7% -6% Ne
Slide 16: Global Life – Business operating profit: Profit by Source
Global Life – Business operating profit: Profit by Source in USD millions New Business Business in Force Total for the years ended December 31 2013 2012 2013 2012 2013 2012 Net Expense margin -1,340 -1,434 1,523 1,410 183 -23 Net Risk margin 821 769 821 769 Net Investment margin 579 716 579 716 Othe
Slide 17: Farmers – Key performance indicators
Farmers – Key performance indicators in USD millions Q4-13 Q4-12 Change 2013 2012 Change Farmers Management Services Management fees and other related 697 712 -2.0% 2,810 2,846 -1.3% revenues Managed gross earned premium margin1 7.1% 7.3% -0.2pts 7.2% 7.3% -0.1pts Business operating profit 340 369 -
Slide 18: Farmers Exchanges – Key performance indicators
Farmers Exchanges1 – Key performance indicators in USD millions Q4-13 Q4-12 Change 2013 2012 Change Gross written premiums, excl. SoT impact2 4,367 4,533 -3.7% 18,643 19,009 -1.9% Net underwriting result3 302 -38 nm -59 -1,062 94.4% Expense ratio3 33.9% 33.0% -0.9pts 33.1% 32.9% -0.2pts Loss ratio3
Slide 19: Investment performance of Group Investments
Investment performance of Group Investments in USD millions Q4-13 Q4-12 Change 2013 2012 Change Net investment income 1,582 1,629 -3% 6,240 6,782 -8% Net capital gains/(losses) on investments 552 1,213 -54% 1,157 2,201 -47% and impairments1 of which attributable to shareholders 465 1,037 -55% 588 1,
Slide 20: Cash and capital
Cash and capital Net cash remittances Key messages in USD billions 3.7 3.5 Strong FY-13 net cash remittances, materially 2.9 unchanged from Investor Day 2.8 2.1 disclosure 2.6 2.4 Central liquidity buffers 1.4 increased in all years presented 0.6 0.7 0.6 Picture excludes large positive 0.6 one
Slide 21: Outlook for 2014
Outlook for 2014 Improved combined ratio1 General Headwinds from low yields should be a much smaller issue than in 2013 Insurance Non-tech expenses likely to be higher, and hedge fund gains lower Growth in risk margin, slower decline in investment margin Global Life Continued strong perfor
Slide 22: Key messages
Key messages Solid operating profit in all core businesses Good growth in priority GI and Life markets, Farmers continues transition Strong cash remittances and capital position underpin CHF 17 per share dividend proposal 2014 priorities driven by new strategy © Zurich Insurance Company Ltd
Slide 23: Appendix
@ ZURICH Appendix
Slide 24: Development of shareholders’ equity in Q4-13
Development of shareholders’ equity in Q4-13 in USD millions 34,000 1,074 -752 33,000 55 32,503 -68 132 32,062 32,000 31,000 30,000 29,000 28,000 27,000 26,000 25,000 24,000 Balance as of Net Income Net unrealized Cumulative Net actuarial Other Balance as of movements 1 © Zurich Insurance Company Lt
Slide 25: Development of shareholders’ equity in FY-13
Development of shareholders’ equity in FY-13 in USD millions 4,028 -2,927 36,000 35,000 34,505 -1,933 34,000 -268 -367 33,000 -718 183 32,503 32,000 31,000 30,000 29,000 28,000 27,000 26,000 25,000 24,000 Balance as of Dividends to Cumulative Net Income Change in net Cumulative Net actuarial Other B
Slide 26: Solvency calculations
Solvency calculations Solvency ratios in % 268 278 261 2 258 Z-ECM 178 185 206 1 206 110 114 121 120 SST Solvency I HY-12 FY-12 HY-13 FY-13 Z-ECM model position in USD billions 9m-13 HY-13 Available Financial Resources (AFR) 44.5 43.8 Z-ECM AFR (after dividend accrual) 3 42.4 42.5 Z-ECM capital requ
Slide 27: Capital model developments
Capital model developments HY-13 to 9m-13 movements Key messages ZECM ratio at the top of the 100% 121% 2% -3% -1% - 120% range 120% Positive contribution from GI IFRS profit and Life new business generation Capital movements reflect dividend accrual and senior debt maturing within one year
Slide 28: Z-ECM capital required by segment and risk type as of 9m-13
Z-ECM capital required by segment and risk type as of 9m-13 Capital Allocation: Total RBC: USD 37.7 billion1 USD 35.5 billion 8% Market / ALM risk Other2 9% 8% Operational risk Farmers1 Business risk 14% 32% General 36% P&R risk 3 Insurance 52% 3% Re-ins credit risk Global Life 3% Life insurance ris
Slide 29: Estimation of Available Financial Resources (AFR) as of 9m-13
Estimation of Available Financial Resources (AFR) as of 9m-13 in USD billions (rounded) 50 (2.2) 45 10.2 44.5 40 42.4 35 (2.1) (20.0) 24.3 30 32.1 30.0 25 20 15 10 5 © Zurich Insurance Company Ltd 0 Reported Distributions Net Net Value of in- Financial Total AFR Capital Net AFR shareholder’s shareho
Slide 30: General Insurance – BOP and Combined ratio by business
General Insurance – BOP and Combined ratio by business Business operating profit Combined ratio (%) in USD millions Q4-13 Q4-12 Change Global 92.6% Corporate CAT2 for the three months to December 31 25.6 122.6% Global Corporate 234 -236 nm NA 89.3% Commercial CAT2 17.1 108.4% North America Commercia
Slide 31: General Insurance – Gross written premiums and policy fees
General Insurance – Gross written premiums and policy fees In USD millions 2013 2012 Change Change for the years ended December 31 in LC1 Global Corporate 9,264 8,609 8% 8%2 North America Commercial 10,215 10,003 2% 2%2 Europe 11,799 11,882 -1% -2% International Markets 5,700 5,603 2% 12% GI Global
Slide 32: General Insurance – Rate Change Monitor for European countries
General Insurance – Rate Change Monitor1 for European countries FY-13 Discrete Q4-13 Int’l Total Int’l Total GC NAC Europe Markets GI GC NAC Europe Markets GI Personal Lines n/a n/a 3% 4% 3% n/a n/a 2% 5% 3% Commercial Lines 4% 5% 3% 3% 4% 5% 4% 3% 3% 5% Europe by country Europe by country Switzer-
Slide 33: Zurich North America – Rate change vs. industry
Zurich North America – Rate change vs. industry Rate change 10% ZNA Carrier survey 5% (Towers Watson1) Broker surveys 0% (CIAB) -5% -10% -15% Q4 05 Q4 06 Q4 07 Q4 08 Q4 09 Q4 10 Q4 11 Q4 12 Q4 13 © Zurich Insurance Company Ltd 1 Towers Watson – carrier survey estimated at ZNA mix of business Note: Q
Slide 34: General Insurance – Written rate change Q1-08 through Q4-13
General Insurance – Written rate change Q1-08 through Q4-13 Rate change 2008 2009 5 2010 4.2% 4.1% 4.2% 4.3% 4.2% 4 3.9% 3.9% 3.8% 3.7% 2011 3.1% 3.3% 3.6% 3.7% 3.3% 2012 2.6% 3 2.3% 2.7% 2013 2.1% 2.0% 2 1.7% 1.2% 1 0% -1 -0.7% -2 -2.4% -3 -3.0% -4 Q1 Q2 Q3 Q4 © Zurich Insurance Company Ltd Februar
Slide 35: General Insurance – Comparison of expense ratio
General Insurance – Comparison of expense ratio 28.0% 27.2% Change year-over-year Expense ratio development In percentage points Discrete quarters, in percentage points Other tech 14.4% expenses1 13.7% 28.8 28.7 27.1 27.5 27.2 26.9 27.3 27.4 -0.1 -0.8 -0.3 14.5 14.8 14.2 14.1 13.5 13.5 13.6 14.2 -0.
Slide 36: General Insurance – Comparison of loss ratio
General Insurance – Comparison of loss ratio FY-13 FY-12 Loss ratio development 1.1pts 70.3% Discrete quarters improvement Underlying loss ratio 68.3% 75.5% 70.3% 69.4% 68.6% 67.5% 67.6% 67.7% 67.4% 61.4% 60.3% -8.6% 2.1% -2.5% 2.4% -0.3% -10.0% USD USD USD USD USD USD 720m -101m -2,973m 584m -718m
Slide 37: General Insurance – Major catastrophe and large losses
General Insurance – Major catastrophe and large losses Major catastrophe1 and Large Losses2 in USD millions 1,400 1,322 1,200 966 1,000 821 800 690 653 740 5 year quarterly 553 547 600 average1 (USD 728m) 400 200 1 not weighted for volume 0 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Impact: Maj
Slide 38: Non-life ultimate loss ratios by accident year
Non-life ultimate loss ratios by accident year Cumulative incurred 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 net loss ratios1 In the year 68.3 % 73.3 % 69.6 % 72.7 % 74.6 % 72.3 % 73.5 % 74.2 % 71.3 % 69.4 % 1 year later 64.2 % 68.1 % 66.2 % 71.7 % 74.1 % 72.0 % 73.2 % 74.0 % 70.0 % 2 years
Slide 39: General Insurance – Reinsurance program for natural catastrophes
General Insurance – Reinsurance program for natural catastrophes Excess of loss protection Combined Global Cat Occurrence Retention / Aggregate Treaty1, USD 150m 30% Co-Participation Major changes as of January 1, 2014: Global Cat Treaty1, USD 500m xs underlying towers 20% US Cat: Renewed with co-
Slide 40: Global Life – Regional Profit by Source (1/4)
Global Life – Business operating profit: Regional Profit by Source (1/4) in USD millions North America Latin America Europe for the years ended December 31 2013 2012 2013 2012 2013 2012 Net Expense margin 73 54 -22 -29 258 50 Net Risk margin 109 97 91 52 476 494 Net Investment margin 43 70 33 46 485
Slide 41: Global Life – Regional Profit by Source (2/4)
Global Life – Business operating profit: Regional Profit by Source (2/4) in USD millions APME Other Total for the years ended December 31 2013 2012 2013 2012 2013 2012 Net Expense margin -98 -78 -28 -20 183 -23 Net Risk margin 98 84 47 42 821 769 Net Investment margin 9 36 9 8 579 716 Other profit m
Slide 42: Global Life – Europe Profit by Source (3/4)
Global Life – Business operating profit: Europe Profit by Source (3/4) in USD millions UK Germany Switzerland for the years ended December 31 2013 2012 2013 2012 2013 2012 Net Expense margin 22 2 286 139 11 8 Net Risk margin 120 131 81 72 121 136 Net Investment margin 32 49 156 214 134 146 Other pro
Slide 43: Global Life – Europe Profit by Source (4/4)
Global Life – Business operating profit: Europe Profit by Source (4/4) in USD millions Ireland Spain Rest of Europe for the years ended December 31 2013 2012 2013 2012 2013 2012 Net Expense margin -68 -109 57 61 -49 -51 Net Risk margin 72 69 60 60 22 26 Net Investment margin 8 9 44 39 110 98 Other p
Slide 44: Global Life – New business by pillar
Global Life – New business by pillar in USD millions NBV2 NBV2 Change APE2 APE2 Change for the years ended December 31 2013 2012 in LC1 2013 2012 in LC1 Bank Distribution 435 316 44% 1,348 1,187 19% IFA/Brokers 274 233 20% 1,003 972 4% Agents 203 165 23% 473 463 2% Total Retail Pillars 912 714 31% 2
Slide 45: Global Life – New business by region/country
Global Life – New business by region/country in USD millions NBV2 NBV2 Change APE2 APE2 Change for the years ended December 31 2013 2012 in LC1 2013 2012 in LC1 North America 117 109 7% 162 125 29% Latin America 368 282 40% 1,178 1,457 -14% Of which: Zurich Santander 268 182 52% 821 701 26% Europe 4
Slide 46: Global Life – Assets under Management
Global Life – Assets under Management1 AuM increased marginally by 5% compared to January 1, 2013 US dollar basis Split of AuM Development of AuM in USD billions in USD billions 267 Balance as of 254 254 31 28 Jan 1, 2013 Inflows 27 114 113 Outflows -30 122 112 Market movements 12 and Other 2 Curren
Slide 47: Global Life – Embedded value result
Global Life – Embedded value result in USD millions 2013 2012 for the years ended December 31 Opening embedded value 18,861 15,846 New business value1 1,251 8904 Expected contribution from in-force2 689 954 Operating variances3 -1,084 -105 Embedded value operating earnings1 855 1,739 Economic varian
Slide 48: Zurich Santander quarterly results
Zurich Santander quarterly results Profit before tax Intangibles amortization Intangibles amortization (100%) (100%) Core segment BOP GI & Life (100%) -21 -21 -20 -20 -21 -20 -18 -19 GI & Life (51%) -16 -13 -12 -11 155 171 160 -27 -25 -21 165 -36 -34 -30 -29 63 65 65 156 135 -41 -37 133 133 -48 -45
Slide 49: Farmers relationship to Zurich
Farmers relationship to Zurich What is “Farmers”? Farmers is a brand name beneficially owned by the Farmers Exchanges. The “Farmers Exchanges” are Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and their subsidiaries and affiliates. The three Exchanges are Californ
Slide 50: Farmers Management Services – Key performance indicators
Farmers: Farmers Management Services – Key performance indicators in USD millions 2013 2012 Change for the years ended December 31 Management fees and other related revenues 2,810 2,846 -1.3% Management and other related expenses -1,457 -1,480 1.5% Gross management result 1,353 1,366 -1.0% Managed g
Slide 51: Farmers Re – Key performance indicators
Farmers: Farmers Re1 – Key performance indicators in USD millions 2013 2012 Change for the years ended December 31 Gross written premiums2 4,045 4,361 -7% Net underwriting result -9 -163 94% Combined ratio 100.2% 103.7% -3.5pts Catastrophe impact3 5.6% 5.9% -0.3pts Business operating profit 125 -26
Slide 52: Farmers Exchanges – Financial highlights
Farmers Exchanges1 – Financial highlights in USD millions 6'000 42.0% 2013 2012 40.0% for the years ended December 31 5'000 38.0% Gross written premiums2 18,643 18,935 4'000 36.0% 34.0% 3'000 Net underwriting result3 -59 -1,062 32.0% 2'000 30.0% Beginning surplus4,5 5,626 5,656 28.0% 1'000 26.0% Net
Slide 53: Farmers Exchanges – Gross written premiums by line of business (1/2)
Farmers Exchanges – Gross written premiums by line of business (1/2) in USD millions 2013 2012 Change for the years ended December 31 Auto 9,507 9,938 -4.3% of which standard Auto 8,560 8,765 -2.3% of which non-standard Auto1 947 1,173 -19.2% Homeowners2 4,796 4,687 2.3% Business Insurance 2,134 2,3
Slide 54: Farmers Exchanges – Gross written premiums by line of business (2/2)
Farmers Exchanges – Gross written premiums by line of business (2/2) in USD millions Q4-13 Q4-12 Change for the three months to December 31 Auto 2,233 2,384 -6.3% of which standard Auto 2,012 2,126 -5.4% of which non-standard Auto1 221 258 -14.3% Homeowners2 1,134 1,138 -0.3% Business Insurance 516
Slide 55: Farmers Exchanges – Premium growth
Farmers Exchanges – Premium growth GWP growth1 12% 10.1% 10% 9.1% 8% 6.5% 6.1% 5.7% 5.7% 6% 5.4% 4.7% 4.5% 4.2% 4.1% 4.1% 3.9% 4% 3.1% 2.9% 1.8% 2% 1.5% 1.1% 0.7% 0% 3M 6M 9M FY 3M 6M 9M FY 3M 6M 9M FY 3M 6M 9M FY 3M 6M 9M FY 3M 6M 9M FY -0.4% -0.6% -0.7% -1.4% -2% © Zurich Insurance Company Ltd -1.
Slide 56: Farmers Exchanges – Policies in force (1/2)
Farmers Exchanges – Policies in force (1/2) in thousand policies 2013 Change 2012 for the years ended December 31 # % Auto 10,552 -1,036 -8.9% 11,633 of which standard Auto 9,666 -784 -7.5% 10,495 of which non-standard Auto1 886 -252 -22.1% 1,138 Homeowners 4,914 -217 -4.2% 5,131 Business Insurance
Slide 57: Farmers Exchanges – Policies in force (2/2)
Farmers Exchanges – Policies in force (2/2) in thousand policies Dec 2013 Q4-13 Sept 2013 Ending Change Ending # % Auto 10,552 -227 -2.1% 10,779 of which standard Auto 9,666 -196 -2.0% 9,862 of which non-standard Auto1 886 -31 -3.8% 917 Homeowners 4,914 -47 -1.0% 4,961 Business Insurance 569 -13 -2.
Slide 58: Farmers Exchanges – Combined ratio (1/2)
Farmers Exchanges – Combined ratio1 (1/2) for the years ended December 31 2013 2012 Change Auto 99.8% 105.5% 5.7pts of which standard Auto 99.8% 103.9% 4.1pts of which non-standard Auto2 99.9% 116.2% 16.3pts Homeowners 101.2% 102.7% 1.5pts Business Insurance 107.6% 110.6% 3.0pts of which Business In
Slide 59: Farmers Exchanges – Combined ratio (2/2)
Farmers Exchanges – Combined ratio1 (2/2) for the three months to December 31 Q4-13 Q4-12 Change Auto 100.5% 104.2% 3.7pts of which standard Auto 100.5% 101.5% 1.0pts of which non-standard Auto2 100.3% 125.0% 24.7pts Homeowners 83.2% 86.7% 3.5pts Business Insurance 99.8% 103.3% 3.5pts of which Busin
Slide 60: Farmers Exchanges – Development of the combined ratio
Farmers Exchanges – Development of the combined ratio Quarterly combined ratio Incl. CAT1 impact Incl. 17 Catastrophe Incl. Ike & Gustav Events 13 Catastrophe Events 115% Incl. 13 Catastrophe Events 110% Incl. Incl. Rita & Katrina Irene 105% Incl. Excl. Fogel/SoT California settlements wildfires 100
Slide 61: Farmers Exchanges – Competitor Snapshot
Farmers Exchanges – Competitor Snapshot Growth vs. GAAP Combined Ratio – Overall P&C1, 2 USAA 2 GEICO 4 September 2013 December 2013 Progressive Nationwide 2 State Farm 2 Allstate Liberty Mutual 2 Mercury American Family 2 Hartford Farmers 3 Travelers5 © Zurich Insurance Company Ltd 1 Source: Press
Slide 62: Other Operating and Non-Core Businesses – BOP contribution
Other Operating and Non-Core Businesses – Business operating profit contribution in USD millions Q4-13 Q4-12 Change 2013 2012 Change Other Operating Businesses - Holding and financing -213 -206 -3% -843 -735 -15% - Headquarters -143 -54 nm -196 -175 -12% Total Other Operating -356 -260 -37% -1,039 -
Slide 63: Zurich’s investment portfolio benefits greatly from diversification
Zurich’s investment portfolio benefits greatly from diversification and is balanced in terms of risk Risk Allocation of Zurich’s investment portfolio As of December 31, 2013 Asset allocation (%) Risk diversification Risk exposure (%)1 and matching (%) 100 Hedge Funds / Liquidity Real Estate Private
Slide 64: Group Investments – Debt securities are of high credit quality
Group Investments – Zurich’s debt securities are of high credit quality (98.5% investment grade) As of December 31, 2013 Group Investments Debt securities USD 207bn USD 156bn credit rating: AAA 23.7% credit rating: AA 37.2% Other Debt asset securities classes 25% 75% credit rating: A 17.5% © Zurich
Slide 65: Group Investments – Debt securities are well balanced
Group Investments – Zurich’s debt securities are well balanced Group Investments - USD 207bn (100%) As of December 31, 2013 Government and government related bonds: USD 76bn (37%) of which: Market/Cost: 103% 38% in General Insurance 98% inv. grade 55% in Global Life 27% AAA 48% AA 3% A
Slide 66: Group Investments – Government bonds are well diversified
Group Investments – Government & government related bonds are well diversified Group Investments - USD 207bn (100%) As of December 31, 2013 Government and government related bonds: USD 76bn1 (37%) Market/Cost: 103% of which: 98% inv. grade 38% in General Insurance 27% AAA 55% in Global Life
Slide 67: Group Investments – Eurozone government bonds are well diversified
Group Investments – Eurozone government & government related bonds are well diversified Group Investments - USD 207bn (100%) Eurozone Government and government As of December 31, 2013 related bonds: USD 37bn (18%) Market/Cost: 106% of which: Split by credit rating 25% in General Insurance 98% in
Slide 68: Group Investments – Corporate bonds are of high credit quality
Group Investments – Corporate bonds are of high credit quality Group Investments - USD 207bn (100%) As of December 31, 2013 Corporate bonds: USD 61bn (29%) Market/Cost: 104% Split by industries Split by credit rating 43% Banks, 99% inv. grade including 18%1 covered bonds 15% AAA 8% Utiliti
Slide 69: Group Investments – Banks corporate bonds
Group Investments – Banks corporate bonds are of high credit quality and well diversified Group Investments - USD 207bn (100%) As of December 31, 2013 Banks Corporate bonds: USD 26bn (13%) Market/Cost: 105% Split by seniority Split by credit rating 42% Covered bonds 99% inv. grade 47% Senior b
Slide 70: Group Investments – MBS/ABS are of high credit quality
Group Investments – MBS/ABS are of high credit quality Group Investments - USD 207bn (100%) MBS/ABS: USD 20bn (10%) As of December 31, 2013 Market/Cost: 100% 98% inv. grade 39% AAA includes: US MBS: USD 13.7bn (6.6%) Market/Cost: 100% 98% inv. grade; 22% AAA Debt securities US ABS1: USD 3.7bn
Slide 71: Group Investments – US MBS are of high credit quality
Group Investments – US MBS are of high credit quality Group Investments - USD 207bn (100%) As of December 31, 2013 US MBS: USD 13.7bn (6.6%) Market/Cost: 100% 98% inv. grade 22% AAA Debt of which: securities US “Agency” MBS: USD 9.1bn (4.4%) Market/Cost: 99% 75% 100% AA+ USD 2.2bn backed by GN
Slide 72: Group Investments – Net capital gains / losses
Group Investments – Net capital gains / losses Net capital losses/gains on investments and impairments (in P&L) in USD millions Equity of which: impairments Equity Debt in USD millions Debt Other Other 1'499 1'500 50 11 2 1'000 703 0 -5 -2 500 252 406 -13 -15 -6 -8 114 138 118 188 -29 -31 -28 56 -50
Slide 73: Group investments – Movements in net unrealized gains / losses
Group investments – Movements in net unrealized gains / losses Change in net unrealized gains / losses on investments incl. in shareholders’ equity1 in USD millions 1'000 119 184 1 0 -46 -242 -83 -49 -81 -41 -252 -170 -1'000 -430 -952 -2'000 -3'000 Equity -3'051 -4'000 Debt -4'248 Other -5'000 Q1-13
Zurich Insurance Group — FY2013 Earnings Presentation on 6ix