Swiss Re Ag · SIX:SREN
Swiss Re — Investor Day (December 2023)
85 slides from Swiss Re's investor day presentation, Dec 1, 2023
Slide 1: Investors' Day
Investors’ Day Zurich, 1 December 2023
Slide 2: Agenda
Agenda Time Content Presenters 10:30 – 11:00 Group strategy & targets Christian Mumenthaler 11:00 – 11:30 IFRS insights John Dacey 11:30 – 11:45 Investments Velina Peneva 11:45 – 12:00 Alternative Capital Partners Philipp Rüede 12:00 – 13:00 Lunch break 13:00 – 13:20 P&C Reinsurance Urs Baertschi 13
Slide 3: Key messages
Key messages Swiss Re is well positioned in an attractive market environment Transition to IFRS will be beneficial to balance sheet and earnings L&H Re’s earnings contribution expected to increase significantly Change in P&C reserving philosophy: we target the higher end of the best estimate range T
Slide 4: Group strategy & targets
Group strategy & targets Christian Mumenthaler, Group Chief Executive Officer Investors’ Day 2023 4
Slide 5: We have entered the most conducive market environment in over a decade
We have entered the most conducive market environment in over a decade While reinsurers absorbed a series of loss events since 2017, including severe nat cat events, the COVID-19 pandemic and high social and economic inflation, underlying profitability has dramatically improved in all of Swiss Re’s
Slide 6: We benefit from differentiated strengths
We benefit from differentiated strengths Capital AA- 314% ACP2 USD 3.3bn USD 174m Group SST ratio fee income and strength Group S&P rating capabilities of third-party capital3 commission revenues4 as of 1 July 2023 FY 2023 expected1 capital returns of nat cat book (%) 41 15 solutions with 40% Servin
Slide 7: Successful reorganisation completed without operational disruption in 2023
Successful reorganisation completed without operational disruption in 2023 Significant streamlining of senior management structure, removing one executive level and one underwriting decision level New Global Clients and Solutions business unit focused on major clients (including public sector) and s
Slide 8: Over the past decade Swiss Re exercised cost discipline
Over the past decade Swiss Re exercised cost discipline, improving efficiency across business segments Operating expense ratio Total cost ratio2 +3.4%pts 20.6% -0.2%pts 28.9% 25.5% 26.1% 25.9% 15.9% 10.4% 8.3% 5.6% 5.0% 2013 2022 Peers3 Swiss Re Peers3 Swiss Re P&C Re L&H Re Corporate Solutions1 201
Slide 9: Best estimate reserving approach led to more volatile earnings
Our best estimate reserving approach in P&C led to more volatile earnings over the cycle compared to peers P&C Re combined ratio vs. key peers1 115% 110% The industry showed strong underwriting results in 2013-2016, > while 2017-2022 was impacted by a series of large loss events 105% 100% Avg. 97.8%
Slide 10: We are changing our P&C reserving philosophy
We are changing our P&C reserving philosophy: our target is to be positioned at the higher end of the best estimate range P&C reserving philosophy along the loss curve Illustrative Principal goal is to target and maintain reserving strength sustainably > towards the higher end of the best estimate r
Slide 11: We target an IFRS net income of USD >3.6bn and ROE >14%
We target an IFRS net income of USD >3.6bn and a multi-year IFRS ROE of >14% Group targets: 2024 net income (USD bn)1 and multi-year ROE P&C L&H Re Underwriting ~ +0.3 Investments ~0 >3.6 >14% ~ -0.5 >3.0 ~ +0.6 Change in ~ +0.2 Net impact of discounting reserving vs. interest approach accretion US
Slide 12: L&H Re will become a larger and more resilient contributor
L&H Re will become a larger and more resilient contributor to Group earnings L&H Re contribution to Group target Expected technical underwriting contribution from current in-force portfolio1 Group net income target (USD bn) Illustrative amortisation of Contractual Service Margin (CSM) and Risk Adjus
Slide 13: We aim to return to sustainable dividend growth
We aim to return to sustainable dividend growth Group SST ratio1, dividends and share buybacks2 Capital management priorities 314%3 294% 269% 251% 232% 223% Ensure superior capitalisation Grow the ordinary dividend Target range 200-250%4 at all times and maximise with long-term earnings, and 215% fi
Slide 14: IFRS insights
IFRS insights John Dacey, Group Chief Financial Officer Disclaimer: • 1 January 2023 opening balance sheet figures on a best effort basis, subject to finalisation • Assumptions underlying 2024 financial targets for illustrative purposes Investors’ Day 2023 14
Slide 15: Transition from US GAAP to IFRS represents a unique opportunity
Transition from US GAAP to IFRS represents a unique opportunity to demonstrate the economic value of our business Closer alignment with regulatory and internal frameworks Building on our 15+ year track record with Economic Value Management (EVM) No change of Enhanced comparability > Cash flows and e
Slide 16: Adoption of General Measurement Model for entire Group
Adoption of General Measurement Model for entire Group – one approach for improved comparability and financial steering General Measurement Model (GMM) for entire Group Accounting options and transition approach Discount methodology 1 Out 1 Future cash in/outflows Bottom-up method using risk-free ra
Slide 17: General Measurement Model also reflected in IFRS balance sheet
Balance sheet Income statement General Measurement Model also reflected in IFRS balance sheet Indicative IFRS opening balance sheet as of 1 January 2023 (USD bn) 1 Assets ~135 Liabilities + Equity ~135 Investment balance remains broadly unchanged under > IFRS 9 compared to US GAAP Re/insurance liabi
Slide 18: Higher equity position following transition to IFRS
Balance sheet Income statement Higher equity position following transition to IFRS Indicative walk from US GAAP to IFRS equity (USD bn)1 More details on next slide 13 US GAAP equity as of 31 December 2022 All re/insurance related US GAAP balances replaced by discounted ~35 Change to economic valuati
Slide 19: USD ~30bn of CSM and Risk Adjustment
Balance sheet Income statement USD ~30bn of CSM and Risk Adjustment, largely driven by L&H Re 1 Contractual Service Margin1 Main contributors by business segment L&H Re >90% > Mortality P&C Re ~5% > Property USD ~21-23bn Corporate Solutions <5% > Property and specialty Group Items ~0% > iptiQ L&H bu
Slide 20: New IFRS income statement structure improves transparency
Balance sheet Income statement New IFRS income statement structure improves transparency on sources of earnings Group – illustrative IFRS income statement implied by 2024 target (USD bn) 1 More details on next slides ~45 1 Insurance revenue ~5.0 2 Insurance service result ~2.0 3 Insurance finance re
Slide 21: Insurance revenue expected to be ~15% lower than gross premiums written
Balance sheet Income statement 1 Insurance revenue Insurance revenue expected to be ~15% lower than gross premiums written Group – illustrative GPW1 and insurance revenue implied by 2024 target (USD bn)2 ~50-55 ~45 IFRS 17 accounting changes L&H Re > Exclusion of fixed ceding commissions (P&C Re and
Slide 22: L&H Re insurance service result reflects higher sustainable earnings
Balance sheet Income statement 2 Insurance service result L&H Re insurance service result reflects higher sustainable earnings L&H Re – illustrative IFRS income statement implied by 2024 target (USD bn)1 ~1.2-1.4 New business CSM > CSM balance expected to grow, supported by interest accretion CSM re
Slide 23: P&C insurance service result reflects impact of discounting
Balance sheet Income statement 2 Insurance service result P&C insurance service result reflects impact of discounting P&C businesses – illustrative IFRS 17 insurance service result implied by 2024 target (USD bn)1 P&C Re Corporate Solutions >2.6 >0.7 New business CSM % of new business CSM released i
Slide 24: Combined ratio definition differs between P&C Re and Corporate Solutions
Balance sheet Income statement 2 Insurance service result Combined ratio definition differs between P&C Re and Corporate Solutions to facilitate better external comparability P&C Re Corporate Solutions (Claims + acquisition costs + operating expenses) US GAAP Net premiums earned (Insurance service e
Slide 25: P&C Re combined ratio declines noticeably under IFRS 17
Balance sheet Income statement 2 Insurance service result P&C Re combined ratio declines noticeably under IFRS 17 P&C Re – illustrative walk from US GAAP to IFRS combined ratio US GAAP combined ratio Deduction of fixed ceding commissions and NDIC1 from numerator and ~2%pts Commissions > denominator
Slide 26: Corporate Solutions combined ratio largely unchanged
Balance sheet Income statement 2 Insurance service result Corporate Solutions combined ratio largely unchanged Corporate Solutions – illustrative walk from US GAAP to IFRS combined ratio US GAAP combined ratio ~2%pts Gross vs. net > Gross insurance revenue instead of net premiums earned as denominat
Slide 27: Modest earnings seasonality expected under IFRS 17 for P&C Re
Balance sheet Income statement 2 Insurance service result Modest earnings seasonality expected under IFRS 17 for P&C Re P&C Re – illustrative split of expected1 underwriting result2 by quarter 40% 35% Under US GAAP, underwriting earnings were skewed to the third > 30% quarter, largely driven by earn
Slide 28: IFRS 17 applies concept of discounting and interest accretion
Balance sheet Income statement 3 Insurance finance result IFRS 17 applies concept of discounting and subsequent interest accretion Discounting Interest accretion simplified and illustrative Discounted best estimate liability Nominal cash flow RA CSM Discounting Year 1 Year 1 Year 2 Year 3 … Discount
Slide 29: Difference between discounting and interest accretion minor in P&C
Balance sheet Income statement 3 Insurance finance result Difference between discounting and interest accretion expected to be minor in P&C P&C businesses – simplified and illustrative impact of discounting vs. interest accretion (USD bn)1 FY 2024 FY 2025 ~0 ~0 Higher interest rate sensitivity vs. U
Slide 30: Transition to IFRS not expected to result in higher earnings volatility
Balance sheet Income statement 4 Investment result Transition to IFRS not expected to result in higher earnings volatility Group – indicative investment classification and measurement (USD bn) 1 102 ~101 Fixed income not passing SPPI2 test, listed equity and private equity > ~10% Fair value through
Slide 31: ~40% of operating expenses classified as non-attributable
Balance sheet Income statement 5 Other income/expenses ~40% of operating expenses classified as non-attributable, reflected in other expenses Operating expenses1 Group ~40% ~60% USD ~4bn Non-attributable expenses P&C Re Corporate costs and other expenses not directly linked to > fulfilment of re/ins
Slide 32: Debt leverage under IFRS compares favourably
Balance sheet Income statement 6 Financing costs Debt leverage under IFRS compares favourably Group available capital and leverage (USD bn) Peer comparison of IFRS leverage ratio 4 ~18-19% Buyback of USD 1.5bn notional of Leverage ratio1 > subordinated debt in Q4 2023 Peer 1 10% 42.9 1.9 Senior debt
Slide 33: Increase in Group SST ratio reflects strong capital generation
Increase in Group SST ratio reflects primarily strong capital generation and positive impact of higher interest rates, partially offset by capital deployment Group solvency capital generation in H1 2023 44.8 -0.2 -0.5 0.9 -0.1 40.9 3.8 SST available capital1 (USD bn) SST 1/2023 Economic Interest rat
Slide 34: Investments
Investments Velina Peneva, Group Chief Investment Officer Investors’ Day 2023 34
Slide 35: Navigating our investment portfolio in a challenging risk environment
Navigating our investment portfolio in a challenging risk environment Key economic indicators1 Risk landscape for Swiss Re investment portfolio US policy rate Headwind 6% 4% 2% Uncertain path of US and European inflation 0% 2019 2023 S&P 5002 200 Geopolitical risks and resulting deglobalisation 150
Slide 36: Consistent contributor to Group's net income
Consistent contributor to Group’s net income Investment performance 4.7% USD 101bn Contribution of NII 3.9% 3.7% at 10-year high 3.5% 3.5% 3.5% 3.4% investment portfolio2 3.2% 2.8% 2.0% 3.4% average ROI since 20143 2014 2015 2016 2017 2018 2019 2020 2021 2022 20232 ~100% assets considering ESG crite
Slide 37: Actions taken in 2023 focused on increasing recurring income
Actions taken in 2023 focused on increasing recurring income Investment portfolio positioning Recurring income yield2 USD 104bn USD 101bn 0% 0% Other 12% 10% Equities and alternatives1 4.0% 3.9% 3.5% 40% 2.8% 46% Credit investments 2.6% 2.4% 2.2% 35% 30% Government bonds 12% 13% Cash and short-term
Slide 38: High quality fixed income portfolio supported by a mature platform
High quality fixed income portfolio supported by a mature platform Swiss Re credit portfolio1 Solid investment platform with proven external <1% USD 17m > managers and close oversight by internal team of total investment portfolio credit impairments p.a. in high-yield credit over last 10 years Defen
Slide 39: Established alternative investment platform with strong quality bias
Established alternative investment platform with strong quality bias Private debt Real estate Private equity Senior loans secured by Unlevered portfolio with focus on Portfolio focused on buyout; diversified income producing assets Switzerland and Germany across vintage years and geographies BBB+ 94
Slide 40: Key messages
Key messages Investment portfolio well positioned to consistently contribute to Group net income High quality portfolio with no outsized positions and predominantly investment grade rated exposure Recurring income with a further uplift of USD ~300m expected in 2024 Flexibility to deploy capital as o
Slide 41: Alternative Capital Partners
Alternative Capital Partners Philipp Rüede, Head Alternative Capital Partners Investors’ Day 2023 41
Slide 42: Strong reshuffling within alternative capital market
Strong reshuffling within alternative capital market over last few years, but investment fundamentals remain intact Alternative capital market (USD bn)1 Cat bonds: notional outstanding by layer (USD bn)2 110 Industry Loss Warranties (ILWs) 100 Sidecars -7% +53% Cat bonds 90 10 9 9 Collateralized Re
Slide 43: ACP's ultimate objective is to reduce cost of equity
ACP’s ultimate objective is to reduce cost of equity for Swiss Re Exposure management Capital efficiency AC market leadership Support growth in a risk controlled-manner Assessing capital efficiency opportunities Being a reputable investor in ILS and and generate additional revenues in all lines of b
Slide 44: ACP enables Swiss Re to increase nat cat exposure
ACP enables Swiss Re to increase nat cat exposure by bringing in aligned third-party capital investors P&C Re expected nat cat losses1 and external retrocession (USD bn) 2.6 2.5 Expected relief from 2.0 retrocession Growth of nat cat exposure supported by 2.0 Expected nat cat losses > establishment
Slide 45: Annual fees and commissions continue to increase
Annual fees and commissions continue to increase as franchise expands Annual fees and commissions (USD m) 174 +45% p.a. 116 Various sources of fees and commissions 85 57 58 27 > Commissions earned as a percentage of premium ceded 2018 2019 2020 2021 2022 20231 > Fees earned as a percentage of assets
Slide 46: P&C Reinsurance
P&C Reinsurance Urs Baertschi, CEO Property & Casualty Reinsurance Investors’ Day 2023 46
Slide 47: Leading P&C Re franchise with global set-up
Leading P&C Re franchise with global set-up highly appreciated by clients P&C reinsurance market1 50% 40 offices 870 FTEs 130 FTEs Non-brokered P&C Re Underwriting Claims Market Swiss Re Client rankings3 USD ~260bn ~10% USD 25bn2 #1 P&C Re target market #1 +5% total market growth p.a. over Americas
Slide 48: P&C Re well positioned with a rebalanced high quality portfolio
P&C Re is well positioned for the future with a rebalanced high quality portfolio Successful renewals in 2023 Rebalanced portfolio1 Unchanged portfolio strategy +18% Nat cat nominal price increase Nat cat 36% 44% Property +13% Property 13% 11% higher loss assumptions Specialty 9% 12% Specialty USD >
Slide 49: Nat cat pricing has returned to levels last seen a decade ago
Nat cat Specialty Casualty Nat cat pricing has returned to levels last seen a decade ago Nat cat industry insured losses1 (USD bn) and pricing2 200 Primary perils (including secondary effects) Secondary perils 5-7% 175 World nat cat price index growth in insured losses US nat cat price index p.a. ov
Slide 50: Nat cat industry impacted by various loss drivers
Nat cat Specialty Casualty Nat cat industry impacted by various loss drivers which are captured in our models and underwriting process Drivers of nat cat losses1 Economic development Claims inflation +154% +130% US construction Global GDP costs +97% +97% US GDP US CPI 1994 2022 1994 2022 Concentrati
Slide 51: Reduced share of secondary peril losses
Nat cat Specialty Casualty Reduced share of secondary peril losses following decisive actions taken Industry losses caused by secondary perils (USD bn)1 and P&C Re share2 100 2.5% Actions taken Secondary perils industry insured losses (lhs) P&C Re share (rhs) Moved away from high-frequency and > agg
Slide 52: Global scale and modelling are key drivers of nat cat track record
Nat cat Specialty Casualty Global scale, diversification and sophisticated proprietary nat cat modelling capabilities are key drivers of Swiss Re’s nat cat track record Swiss Re global nat cat book1 Track record of P&C Re nat cat book 100% US GAAP combined ratio3 European Earthquake Tropical cyclone
Slide 53: Specialty book is globally diversified and growing
Nat cat Specialty Casualty Specialty book is globally diversified, growing with strong and consistent performance Premium1 split by region and line of business Combined ratio and premiums (USD bn) Americas EMEA Asia Combined ratio (lhs) Net premiums earned (rhs) 100% 5 80% 4 USD USD USD ~1.1bn ~2.2b
Slide 54: US liability market: social inflation continues to drive claims
Nat cat Specialty Casualty US liability market: social inflation continues to drive claims environment US litigation funding AuM (USD bn)1 Respondents with little/no confidence 2 US industry loss ratio by accident year5 +42% +25% 14 40% 85% 80% 7 20% 75% 0 0% 2019 2022 2019 2022 Small business Large
Slide 55: Significant exposure reduction to US large corporate risks
Nat cat Specialty Casualty Our actions: significant exposure reduction to US large corporate risks Ultimate loss ratio of P&C Re US liability book 1 Exposure reduction and pricing improvement in P&C Re US LCR portfolio Total limits to US LCR3 100 >70% 30 reduction in US LCR since 2019 LCR 2019 2020
Slide 56: Significant strengthening of US liability reserves in 2023
Nat cat Specialty Casualty Our actions: significant strengthening of US liability reserves in 2023 US liability reserves by UWY1 as of 9M 2023 Change in ultimate loss ratio for US liability per UWY1 in 9M 2023 100% 80% Average 6%pts 60% 40% UWY1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20%
Slide 57: P&C Re targets an IFRS combined ratio of <87% in 2024
P&C Re targets an IFRS reported combined ratio of <87% in 2024 Illustrative combined ratio walk to 2024 target <95% Change to IFRS methodology1 Change in reserving approach <87% Discounting of claims2 Earn-through of US GAAP margin improvement3 IFRS 17 combined combined ratio ratio 2023 target 2024
Slide 58: Key messages
Key messages We are well positioned to increase earnings resilience given actions taken to improve our portfolio quality and attractive current market opportunities Our strategy in nat cat remains unchanged. We expect to continue deploying capital, supported by long- term structural market growth We
Slide 59: Corporate Solutions
Corporate Solutions Andreas Berger, CEO Corporate Solutions Investors’ Day 2023 59
Slide 60: Corporate Solutions, a specialised risk partner for corporates
Corporate Solutions, a specialised risk partner for medium to large corporates Corporate Solutions addressable market Corporate Solutions strategy Commercial insurance market1 CORE DIFFERENTIATED Non-served Generate resilient returns Further expand value proposition +5% segments: SMEs, USD through t
Slide 61: Resilient performance since turnaround
Resilient performance since turnaround driven by disciplined underwriting, portfolio restructuring, strict expense management and rate increases Quarterly Corporate Solutions combined ratio and risk-adjusted price index1 Risk-adjusted price quality index (lhs) Combined ratio (rhs) 40% 35% 30% 120% 1
Slide 62: Focused on strengthening cycle resilience and diversification
Focused on strengthening cycle resilience and diversification, with continued overweight in property and further build-out of accident & health and credit & surety Corporate Solutions portfolio mix and strategy Portfolio Type of business Benefits Excess & Primary Remain tilted towards property throu
Slide 63: Further expansion through differentiated propositions
Further expansion through differentiated propositions, addressing complex risk transfer needs and a growing demand for analytics Differentiated propositions International Programs Innovative Risk Solutions Risk Data Services for Corporates Reduce ‘total cost of risk’ through risk insights Administra
Slide 64: Continued growth in International Programs and Innovative Risk Solutions
Continued successful growth in International Programs and Innovative Risk Solutions International Programs Innovative Risk Solutions (including structured fronting) 30 70 238 323 449 ~650 234 381 ~430 # of active programs ~750 # of bound deals ~650 Gross premiums written (USD m)1 Gross premiums writ
Slide 65: Corporate Solutions targets IFRS combined ratio of <93% in 2024
Corporate Solutions targets an IFRS reported combined ratio of <93% in 2024 Illustrative combined ratio walk to 2024 target Change to IFRS methodology1 <94% Change in reserving approach <93% Discounting of claims2 Earn-through of margin improvement3 US GAAP IFRS 17 combined combined ratio ratio 2023
Slide 66: Key messages
Key messages We grow and steer our core business with a focus on strengthening cycle resilience and diversification, by staying overweight in property as well as further growing accident & health and credit & surety We continue to invest into differentiated propositions which offer cycle-independent
Slide 67: L&H Reinsurance
L&H Reinsurance Paul Murray, CEO Life & Health Reinsurance Investors’ Day 2023 67
Slide 68: L&H Re is a globally diversified franchise
L&H Re is a globally diversified franchise with strong client relationships L&H reinsurance market1 29 offices 680 FTEs 320 FTEs 95% L&H Re Market units Underwriting Direct client relationships Market Swiss Re Client rankings3 USD ~113bn ~15% USD 17bn2 #1 L&H Re target market +5% #2 growth p.a. over
Slide 69: L&H Re created via inorganic strategies, then organic growth
L&H Re was created via inorganic strategies, followed by a period of organic growth L&H Re development since 1990 Gross premiums written (USD bn)1 ~17 Area represents relative size of acquired premiums Lincoln Re Mercantile & General Re Group GE Insurance Solutions2 American Life Re Corporation Firs
Slide 70: Risk transfer is at the core of L&H Re
Risk transfer is at the core of L&H Re, plus we support clients with risk insights across the full value chain and through a multi-decade relationship L&H Re value chain Distribution Risk taking reinsurance In-force management Product development to drive clients’ Globally diversified risk pools in
Slide 71: L&H Re well positioned with balanced high quality portfolio
L&H Re is well positioned for the future with a balanced high quality portfolio Attractive new business Balanced portfolio Portfolio outlook Mortality +4%pts increase in new business return Mortality on capital since 20201 Longevity Health USD >1bn Longevity economic profit 20232 Health Financial Fi
Slide 72: L&H Re delivered consistently on an economic basis
L&H Re has delivered consistently on an economic basis and accumulated in-force margins of USD ~25bn that drive IFRS transition benefits Higher economic earnings… ... resulted in US GAAP margins… ... which form the basis for CSM and RA Cumulative earnings FY 2022 (USD m)1 US GAAP shareholders’ equit
Slide 73: In-force margins largest in Americas' mortality business
In-force margins largest in Americas’ mortality business, with significant additional contributions from EMEA and Asia L&H Re CSM and RA by region1 Americas EMEA Asia USD ~19-21bn CSM1 ~7-8% CSM amortisation2 CSM RA CSM RA CSM RA USD ~6bn RA1 CSM amortisation2 ~6% ~12% ~8% ~8-9% Mortality Longevity
Slide 74: Medical advancements have supported increased life expectancy
Medical advancements have supported increased life expectancy Global medical advancements1 Life expectancy in selected markets (years)2 Area represents relative potential impact on mortality improvements World USA UK Cancer Cardiovascular diseases Diagnostic Other 80 Smoking Chemotherapy cession tre
Slide 75: Excess mortality now trending back towards expectations
Recent years have been characterised by excess mortality, now trending back towards expectations Excess mortality in selected markets1 120% USA UK Recent excess mortality driven by COVID-19 > and poor cardio-metabolic health, in addition to 100% opioid addictions and violent deaths in the US 80% Mor
Slide 76: Positive outlook on mortality with further improvements
We have a positive outlook on mortality with further improvements on the horizon Promising technologies for future medical advancements 1 Area represents relative potential impact on mortality improvements AI Cancer Cardiovascular diseases Neurodegenerative diseases Other Mortality improvements Obes
Slide 77: CSM expected to replenish and grow over time
CSM is expected to replenish and grow over time, building on diversified business mix Illustrative CSM development New business > Protection gap continues to grow, led by health The global protection gap for life and health increased from USD ~1trn in 2012 to USD ~1.3trn in 20221 indicating strong d
Slide 78: Significant increase in L&H Re's earnings contribution
Significant increase in L&H Re’s earnings contribution Illustrative net income walk to 2024 target USD ~1.5bn Key drivers of higher IFRS net income New business contribution USD Faster earnings recognition Acceleration of earnings recognition from ~0.9bn Switch to best estimate > amortisation of CSM
Slide 79: Key messages
Key messages Strong L&H Re franchise diversified across life and health. Our industry leading solutions and risk insights support clients across the full value chain Increased earnings under IFRS driven by significant CSM and reset of best estimate liabilities We have a positive long-term outlook on
Slide 80: Q&A session
Q&A session Investors’ Day 2023 80
Slide 81: Key messages
Key messages Swiss Re is well positioned in an attractive market environment Transition to IFRS will be beneficial to balance sheet and earnings L&H Re’s earnings contribution expected to increase significantly Change in P&C reserving philosophy: we target the higher end of the best estimate range T
Slide 82: Corporate calendar and contacts
Corporate calendar and contacts Corporate calendar 2024 16 February Annual Results 2023 Conference call 13 March Publication of Annual Report 2023 12 April 160th Annual General Meeting Zurich 16 May Q1 2024 Results Conference call Investor Relations contacts Hotline E-mail +41 43 285 4444 Investor_R
Slide 83: Investors' Day 2023
Investors’ Day 2023 83
Slide 84: 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 85: Legal notice
Legal notice ©2023 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