Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — FY2009 Earnings Presentation
75 slides from Zurich Insurance's earnings presentation, Feb 4, 2010
Slide 1: Annual Results Reporting 2009
Annual Results Reporting 2009 Analysts and Media Presentation February 4, 2010
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 predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted prof
Slide 3: Agenda
Agenda Introduction Martin Senn Annual Results 2009 Dieter Wemmer Q&A Closing remarks Martin Senn © Zurich Financial Services Ltd February 4, 2010 Annual Results Reporting 2009 3
Slide 4: Introduction
Introduction Martin Senn Chief Executive Officer February 4, 2010
Slide 5: Financial highlights
Financial highlights in USD millions 2009 20081 Change for the years ended December 31 Business operating profit (BOP) 5,593 5,186 8% Net income attributable to shareholders 3,215 3,039 6% General Insurance combined ratio 96.8% 98.1% 1.3pts Global Life new business value2 782 753 4%2 Farmers Mgmt Se
Slide 6: Business operating profit by segment
Business operating profit by segment in USD millions 2009 20081 Change for the years ended December 31 General Insurance 3,463 3,535 -2% Global Life 1,477 1,490 -1% Farmers (including Farmers Re) 1,554 1,356 15% Other Operating Businesses -611 -772 21% Total Core BOP 5,883 5,609 4% Non-Core Business
Slide 7: Proposed dividend of CHF 16 per share for 2009
Proposed dividend of CHF 163 per share for 2009 resulting in a payout ratio of 66% Dividends / EPS in respect of the business year (in CHF)1 50 47.1 2 45 2 40 39.5 35 30 27.1 25 23.4 24.2 20.8 2 22.9 20 18.9 2 19.7 7.9 8.7 16.03 15 15.0 11.0 10 7.0 11.0 5 2.5 4.0 0 © Zurich Financial Services Ltd 20
Slide 8: Summary
Summary Solid operating results driven by successful expense & market actions Sophisticated risk management Strong capital base and balance sheet Developing brand strength Attractive dividend © Zurich Financial Services Ltd Prepared for any future market conditions February 4, 2010 Annual Results Re
Slide 9: Annual Results 2009
Annual Results 2009 Dieter Wemmer Chief Financial Officer February 4, 2010
Slide 10: Business operating profit and net income by quarter
Business operating profit and net income by quarter Business operating profit in USD millions 2,000 1,764 1,785 1,513 1,658 1,061 1,491 1,527 1,500 1,761 1,002 1,660 1,385 1,392 1,447 1,346 1,000 636 845 500 Core BOP 3 127 44 143 Non-Core BOP 0 -209 -146 -344 -331 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
Slide 11: General Insurance – Key performance indicators
General Insurance – Key performance indicators in USD millions 2009 2008 Change Change for the years ended December 31 in LC1 GWP and policy fees 34,157 37,151 -8% -4% Rate change2 3.3% -1.4% 4.7pts Loss ratio 70.9% 72.6% 1.6pts Expense ratio 25.9% 25.5% -0.4pts Combined ratio 96.8% 98.1% 1.3pts Bus
Slide 12: General Insurance – Rate Change Monitor
General Insurance – Rate Change Monitor1 for personal and commercial lines 12 months 2009 Discrete Q4 2009 Int’l Total Int’l Total GC NAC EGI Markets GI GC NAC EGI Markets GI Personal Lines n/a n/a 3% 2% 3% n/a n/a 4% 1% 4% Commercial Lines 5% 2% 3% 5% 4% 4% 1% 6% 5% 4% EGI by country EGI by country
Slide 13: General Insurance – Written Compounded Rate Change 2008-2009
General Insurance – Written Compounded Rate Change1 2008-2009 12 months 2009 General Insurance – rate change 2008 - 2009 Int’l Total GC NAC EGI Markets GI 4.9% Personal 5% Lines n/a n/a 3% 2% 3% 4.2% Commercial 5% 2% 3% 5% 4% 3.6% 3.7% Lines 3.0% EGI by country Switzer- Rest of 2.1% UK Germany land
Slide 14: General Insurance – Underwriting actions improving underlying loss ratio
General Insurance – Underwriting actions improving the underlying loss ratio General Insurance – rate change1 2008 - 2009 Of the rate increases achieved in 4.9% 2009, over half remains to be 5% earned in 2010. 4.2% 3.6% 3.7% 3.0% 2.1% Overall improvement of the 1.1% 1.2% underlying loss ratio of 0.4
Slide 15: General Insurance – Comparison of loss ratio
General Insurance – Comparison of loss ratio 75% 2009 2008 Loss ratio development 72.6% Last eight discrete quarters Underlying loss ratio 70.9% 79.2% 70% 71.2% 73.0% 69.9% 71.1% 69.8% 70.0% 69.5% 67.4% 67.8% 0.3% 0.6% 65% 6.6% 3.7% 0.0% 6.9% 4.2% 1.8% 60% USD USD USD USD USD USD USD 114m 1,074m 2,0
Slide 16: General Insurance – Net expense ratio walk
General Insurance – Net expense ratio walk from 12m08 to 12m09 25.5% 25.9% Change year-over-year Expense ratio development Other tech Last eight discrete quarters 13.2% expenses 13.3% 1 26.6% 1 25.7% 26.7% 0.08% 0.36% 24.7% 24.7% 25.2% 25.5% 25.1% 0.34% -0.06% 12.3% Commissions 12.6% e pe W s x i on
Slide 17: Development of Reserves for Losses and LAE
Development of Reserves for Losses and Loss Adjustment Expenses (LAE) in USD millions 2009 2008 Net reserves for losses and LAE, as of January 1 52,986 54,712 Net losses and LAE paid -23,689 -22,150 Net losses and LAE incurred - Current year 25,698 25,416 - Prior years1 -1,059 -1,271 Foreign currenc
Slide 18: Global Life – key performance indicators
Global Life – key performance indicators in USD millions 2009 2008 Change Change for the years ended December 31 in LC1 GWP and policy fees (incl. insurance 26,029 21,873 19% 28% deposits)2 Net inflows to Assets under Mgmt 5bn -2bn nm Annual Premium Equivalent (APE) 3,667 3,261 12% 19% New business
Slide 19: Global Life – new business by pillar
Global Life – new business by pillar in USD millions APE APE Change Change for the years ended December 31 in LC1 2009 2008 Bank Distribution 1,099 746 47% 55% IFA/Brokers 924 942 -2% 11% Agents 503 537 -6% -3% Corporate Life & Pensions 603 414 46% 60% International / Expats 258 323 -20% -28% Privat
Slide 20: Global Life – Profit by Source
Global Life – Business Operating Profit: Profit by Source in USD millions 2009 2008 Change Change for the years ended December 31 in LC Net Expense margin 356 249 43% 49% Net Risk margin 653 634 3% 9% Net Investment margin 706 679 4% 10% Other profit margins 90 225 -60% -53% BOP before interests, de
Slide 21: Farmers – key performance indicators
Farmers – key performance indicators in USD millions 2009 2008 Change for the years ended December 311 Farmers Management Services Managed gross earned premium margin2 7.2% 6.9% 0.3pts Business operating profit 1,326 1,202 10% Farmers Re Business operating profit 228 154 48% Farmers Exchanges2 Gross
Slide 22: Acquisition of 21st Century – Update
Acquisition of 21st Century1 – Update GWP by distribution channel (Direct vs Agency) GWP for FY09 of USD 2.4bn reflects: 1000 Direct: negative residual effect of 2,421 Agency legacy brand issues and deteriorating 726 Direct GWP in USD m 595 600 US economy – levels stabilizing 152 118 101 500 63 Agen
Slide 23: Other Operating and Non-Core Businesses – BOP contribution
Other Operating and Non-Core Businesses – Business operating profit contribution in USD millions 2009 2008 Change for the years ended December 31 Other Operating Businesses -611 -772 21% of which: subordinated debt buy-back 210 - nm Non-Core Businesses - Banking activities -182 53 nm - Centrally man
Slide 24: Investment performance of Group investments
Investment performance of Group investments in USD millions 2009 2008 Change for the years ended December 31 Net investment income 7,505 8,698 -14% Net capital losses/gains on investments and -1,423 -2,893 51% impairments1 of which attributable to shareholders -1,375 -2,110 35% Net investment result
Slide 25: Development of shareholders' equity
Development of shareholders’ equity in USD millions, as of 30,000 1,053 117 29,678 28,508 25,211 25,000 22,103 22,257 20,000 15,000 10,000 Dec 31, Mar 31, Jun 30, Sep 30, Q4-09 Net Other Dec. 31, © Zurich Financial Services Ltd 2008 2009 2009 2009 Income changes 2009 attributable in Q4-09 to shareho
Slide 26: 2010 estimated economic and regulatory solvency
2010 estimated economic and regulatory solvency Statutory solvency ratio Economic solvency ratio3 (Group’s Solvency I1) 209% 139% 136% 198% +6pts +4pts -7pts -17pts 160%2 95% Dec. 31 Sept. Impact Impact Dec. 31 Jan. 1 est. Sept. 30 Movements Impact Jan. 1 est. 2008 30 2009 Q4-09 from 2009 for 2009 e
Slide 27: Attractive CHF 16 dividend for 2009
Attractive CHF 16 dividend for 20091 Book value per share (in CHF) Dividend yield3 7.1%1 300 7% 6% 5.6% 250 5 229.45 210.1 209.3 194.5 5% 4.5% 200 167.9 154.35 153.8 5 4% 150 3.1% 3% 2.6% 100 2% 1.8% 1.3% 50 1% 0 0% 2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009 Dividends (in
Slide 28: Summary
Summary Solid operating results driven by successful expense & market actions Sophisticated risk management Strong capital base and balance sheet Developing brand strength Attractive dividend © Zurich Financial Services Ltd Prepared for any future market conditions February 4, 2010 Annual Results Re
Slide 29: Q&A
Q&A © Zurich Financial Services Ltd February 4, 2010 Annual Results Reporting 2009 29
Slide 30: Closing remarks
Closing remarks Martin Senn Chief Executive Officer February 4, 2010
Slide 31: Appendix
Appendix © Zurich Financial Services Ltd February 4, 2010 Annual Results Reporting 2009 31
Slide 32: Zurich is poised for profitable growth
Zurich is poised for profitable growth 19% 3% 9% Global Focus on volume growth1 Farmers Life IM EGI -1% Legend for GI BDs IM International Markets GC EGI Europe General NAC Insurance GC Global Corporate -1% -12% NAC North America Commercial © Zurich Financial Services Ltd Focus on margin enhancement
Slide 33: The Zurich Way
The Zurich Way The Zurich Way – Target of USD 0.9 billion annually for 2010 and 2011 USD USD USD We have comfortably achieved our USD 900m 900m 900m 2009 target. USD 800m Developing our plan, we expect benefits 700m of USD 0.9 billion for 2010 and 2011 USD 7 major TZW workstreams with continuing 500
Slide 34: The Zurich Way initiatives – 2010 target
The Zurich Way initiatives – 2010 target by function by business division USD 900 m USD 900 m USD 900 m USD 900 m USD 800 m 17% USD 800 m 33% Growth/ Europe General 33% Distribution 42% Insurance 32% 35% 32% 19% North America 17% Commercial 31% Claims 22% 22% 13% Global Corporate 30% 17% 34% 12% 24%
Slide 35: Top line development by segment
Top line development by segment in USD millions 2009 2008 Change Change for the years ended December 31 in LC1 General Insurance GWP and policy fees 34,157 37,151 -8% -4% Global Life GWP and policy fees (incl. insurance 26,029 21,873 19% 28% deposits)2 Annual Premium Equivalent (APE)3 3,667 3,261 12
Slide 36: Business division BOP-ROE
Business division BOP-ROE1 based on RBC-allocated IFRS equity for the years ended December 31 2009 2008 General Insurance 23.3% 24.1% Global Corporate 22.7% 1.6% North America Commercial 24.4% 25.6% Europe General Insurance 23.9% 41.6% International Markets 20.4% 28.9% GI Global Functions including
Slide 37: Development of shareholders' equity in 2009
Development of shareholders’ equity in 2009 in USD millions 30,000 944 171 65 29,678 29,000 3,292 28,000 27,000 26,000 3,215 25,000 24,000 1,296 1,408 23,000 22,103 22,000 21,000 20,000 19,000 Balance as of Issuance of Dividends Net Income Change in Cumulative Net actuarial Other Balance as of © Zur
Slide 38: 2010 estimated economic and regulatory solvency
2010 estimated economic and regulatory solvency What if scenarios Statutory solvency ratio / Group’s Solvency I1 Dec. 31, 08 Sep. 30, 09 Impact Q4-09 Dividend4 Dec 31, 09 Debt securities at cost -5pts 160%2 209% +6pts -17pts 198% GI DAC +24pts Economic solvency ratio3 ~139% +4pts -7pts ~136% Impact
Slide 39: Updated economic solvency view for 2010
Updated economic solvency view for 2010 in USD billions1 Available Financial Resources (AFR) Estimated AFR as of September 30, 2009 + 40 Movements in Q4-09 + 3 Proposed dividend 20102 - 2 January 1 estimate for 2010 AFR + 41 Estimated 2010 economic solvency ratio Risk Based Capital (RBC) ~136% Estim
Slide 40: Strong economic solvency
Strong economic solvency1 in USD billions (rounded) Change from EV to MCEV 40 38 41 35 34 Available to policyholders 30 29 30 30 28 28 27 30 25 27 26 26 27 20 23 21 15 10 5 RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1 2003 20
Slide 41: Zurich RBC by segment and risk type for 2010
Zurich RBC by segment and risk type for 2010 Capital Allocation: Total RBC estimate: USD 32 billion1,4 USD 30 billion Farmers1 Other2 8% 7% 10% 30% Market/ALM risk 11% Operational risk 1% Business risk General 5% P&R risk3 Global Life Insurance 23% Re-ins credit risk 60% 6% Life insurance risk Natur
Slide 42: Estimation of Available Financial Resources as of January 1, 2010
Estimation of Available Financial Resources (AFR) as of January 1, 2010 in USD billions (rounded) 45 10 43 (2) 40 41 35 30 21 (2) 30 25 28 20 (16) 15 10 5 0 1 2 3 Reported Proposed Net Net intangibles Value of in- Financial debt Total AFR Capital Net AFR shareholders' distributions shareholders' for
Slide 43: Group's Solvency I calculation
Group’s Solvency I calculation in USD millions Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 20093 2009 20091 2009 2008 finalized2 Eligible equity Total equity 31,478 30,323 26,942 23,850 23,781 Net of intangibles and other assets -7,546 -7,325 -7,235 -6,532 -6,217 Free reserves for policyholder dividends
Slide 44: Group's Solvency I - sensitivities
Group’s Solvency I - sensitivities1 Solvency I ratio impact (in %) Monetary impact on IFRS equity as of Dec 31, 2009 (in USD bn) 100% 150% Base case 198% Interest rate +100 bps 167% -4.0 Interest rate -100 bps 232% 4.4 Equity markets -10% 190% -1.0 Credit spreads +100 bps 189% -1.2 © Zurich Financia
Slide 45: General Insurance – key performance indicators
General Insurance – key performance indicators Business operating profit Combined ratio (%) Global 95.1 Corporate CAT in USD millions 2009 2008 Change 112.4 7.5 for the years ended December 31 Global Corporate 787 47 nm NA 96.9 Commercial 97.4 CAT 2.1 North America Commercial 1,243 1,238 0% Europe 9
Slide 46: Non-life ultimate loss ratios by accident year
Non-life ultimate loss ratios by accident year Cumulative incurred 2001 2002 2003 2004 2005 2006 2007 2008 2009 net loss ratios1 In the year 81.4% 70.6% 67.1% 68.3% 73.3% 69.6% 72.7% 74.6% 72.3% 1 year later 85.7% 72.0% 66.1% 64.2% 68.1% 66.2% 71.7% 74.1% 2 years later 85.8% 72.3% 65.4% 63.5% 66.6%
Slide 47: Asbestos and environmental reserves
Asbestos and environmental reserves 2009 2008 Gross 3-year Gross 3-year reserves survival reserves survival USD m ratio USD m ratio Asbestos 3,604 29.62 3,001 23.52 General Insurance 3,116 34.1 2,352 28.4 of which: US 383 8.8 422 7.6 of which: UK 2,733 37.71 1,929 32.91 Other Businesses 488 3.22 649
Slide 48: Global Life – Profit by Source (1/2)
Global Life – Business Operating Profit: Profit by Source (1/2) in USD millions Americas UK Germany Switzerland 2009 2008 2009 2008 2009 2008 2009 2008 Net Expense margin 142 52 45 -38 185 163 9 32 Net Risk margin 160 129 97 164 86 93 131 107 Net Investment margin 114 87 81 169 161 189 103 62 Other
Slide 49: Global Life – Profit by Source (2/2)
Global Life – Business Operating Profit: Profit by Source (2/2) In USD millions Ireland Spain Emerging Rest of Total Markets World 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Net Expense margin -39 25 36 2 5 24 -27 -12 356 249 Net Risk margin 58 43 37 28 44 30 38 40 653 634 Net Investment marg
Slide 50: Global Life – Profit by Source: Definitions
Global Life – Profit by Source: Definitions Net Expense Fund and non-fund based fees, acquisition and + margin maintenance expenses, movements in acquisition expense and fee intangibles, surrender charges, and any related policyholder bonuses Mortality, morbidity, and longevity premiums + Net Risk m
Slide 51: Global Life – new business indicators
Global Life – new business indicators in USD millions APE APE Change Change NBV2 NBV2 Change for the years ended December 31 2009 2008 in LC1 2009 2008 Americas, of which 259 223 16% 21% 136 121 12% US 97 101 -3% -3% 100 91 10% Latin America 161 122 32% 44% 36 30 19% United Kingdom 785 878 -11% 6% 9
Slide 52: Global Life – Embedded Value result
Global Life – Embedded Value result for the years ended December 31 2009 2009 2008 2008 USD m Return4 USD m Return4 Opening Embedded Value5 12,890 15,923 New business value2 782 753 Expected contribution1,2 840 964 Operating variance2,3 299 267 Total operating earnings2 1,921 14.9% 1,983 12.5% Econo
Slide 53: Global Life – New Business Value by pillar
Global Life – New Business Value by pillar Global distribution and proposition pillars drive new business value New Business Value New Business Value NB Margin 2009 2008: USD 753 million 2009: USD 782 million Bank Distribution 17% 2% IFA/Brokers 18% 5% 5% Agents 38% 9% 28% 11% 24% Corp. Life & 9% Pe
Slide 54: Global Life - Assets under Management
Global Life - Assets under Management1 AuM increased mainly due to the increase of the market value of assets, the currency translation but also the strong net inflows Split of AuM Development of AuM in USD billions in USD billions 215 Balance as of Jan 1, 2009 180 25 180 20 Inflows +29 102 95 Outfl
Slide 55: Farmers Management Services – key performance indicators
Farmers – Farmers Management Services – key performance indicators in USD millions 2009 2008 Change for the years ended December 311 Management fees and other related revenues 2,690 2,458 9% Management and other related expenses -1,399 -1,317 -6% Gross management result 1,291 1,142 13% Managed gross
Slide 56: Farmers Re – key performance indicators
Farmers – Farmers Re – key performance indicators in USD millions 2009 2008 Change for the years ended December 31 Gross written premiums1 6,615 3,381 96% Net underwriting result 58 59 -3% Combined ratio 99.0% 97.5% -1.5pts CAT2 impact 3.4% 2.1% -1.3pts Business operating profit 228 154 48% © Zurich
Slide 57: Farmers Exchanges – key performance indicators
Farmers Exchanges1 – key performance indicators in USD millions 2009 2008 Change for the years ended December 31 Gross written premiums2 17,620 16,710 5.4% Net underwriting result3 284 -954 n/m Combined ratio3 98.9% 105.7% 6.8pts Adjusted combined ratio4 91.3% 98.4% 7.1pts CAT5 impact 4.7% 9.0% 4.3p
Slide 58: Integration of 21st Century shows rapid progress
Integration of 21st Century shows rapid progress Farmers has moved aggressively to restructure/integrate businesses: Agency Auto integration into Foremost effective Sep. 1, 2009 Rationalization of Direct operations (Woodland Hills, CA / Vestal, NY) Other back-office transition integration completed
Slide 59: 21st Century - contribution
21st Century1 - contribution in USD millions 2009 for the year ended December 311 Farmers Management Services: Management fees and other related revenues 214 Management and other related expenses 112 Gross management result 102 Business operating profit 81 Farmers Exchanges: Gross written premiums 1
Slide 60: Farmers Exchanges – financial highlights
Farmers Exchanges1 – financial highlights 6'000 in USD millions 2009 2008 44.0% for the years ended December 31 5'000 42.0% Gross written premiums2 17,620 16,710 4'000 40.0% Net underwriting result3 284 -954 38.0% 3'000 Net surplus growth 575 -684 36.0% 2'000 Ending surplus 5,609 5,035 34.0% 1'000 S
Slide 61: Farmers Exchanges – gross written premiums by line of business
Farmers Exchanges – gross written premiums by line of business in USD millions 2009 2008 Change for the years ended December 31 Auto1 9,128 8,550 6.8% Homeowners 4,621 4,465 3.5% Commercial P&C 1,313 1,283 2.3% Small Business Solutions2 534 377 41.7% Workers’ Compensation 312 338 -7.6% Specialty 1,5
Slide 62: Farmers Exchanges – premium growth outperforming industry
Farmers Exchanges – premium growth outperforming industry GWP growth2 8% Industry Growth Rate1 2008: -1.3% 2009 Forecast: -0.5% 6.5% 6.1% 6% 5.7% 5.7% 5.4% 5.4% 5.0% 5.1% 4.6% 4.7% 4% 3.2% 3.3% 3.1% 2.2% 1.8% 2% 1.4% 0% 06 07 08 09 06 06 06 07 07 07 08 08 08 09 09 09 20 20 20 20 20 20 20 20 20 20 20
Slide 63: Farmers Exchanges – combined ratio
Farmers Exchanges – combined ratio for the years ended December 31 20091 20081 Change Auto2 96.8% 99.2% 2.4pts Homeowners 101.5% 119.8% 18.3pts Commercial P&C 94.9% 96.0% 1.1pts Small Business Solutions3 103.9% 116.1% 12.2pts Workers' Compensation 99.2% 95.8% -3.4pts Specialty 103.5% 107.9% 4.4pts T
Slide 64: Farmers Exchanges – development of the combined ratio
Farmers Exchanges – development of the combined ratio Quarterly combined ratio 120% Other Cats 115% Midwest Gustav Cats 110% California wildfires Ike 105% California Other CO/TX Rita wildfires Cats Hail- Texas storms 100% Florida Hail hurricanes Katrina 95% © Zurich Financial Services Ltd 90% Q1 Q2
Slide 65: Competitor snapshot – Farmers continues to outperform
Competitor snapshot – Farmers continues to outperform key competitors Growth vs. GAAP combined ratio – overall P&C1, 5 Sep. 30, 2009 (9m) Industry6 Dec. 31, 2009 (12m) 100.2% Growth 10 FY09 Industry Estimate NPW % GEICO4 8 6 2, 3 Farmers Liberty Mutual5 : 4 2009 YTD NPW growth = +15.6% Progressive (
Slide 66: Investment portfolio profits from diversification
Zurich’s investment portfolio profits greatly from diversification and is balanced in terms of risk Risk Allocation of Zurich’s investment portfolio FY 2009 Asset allocation (%) Risk diversification Risk exposure (%)1 and matching (%) 100 Hedge Funds / Private Equity Hedge Real Estate 38 Funds 27 Re
Slide 67: Debt securities of consistently high quality
Group Investments – Zurich’s debt securities are of consistently high quality (98% investment grade) As of December 31, 2009 Group Investments Debt securities USD 196bn USD 136bn credit rating: AAA 51.7% credit rating: AA Other Debt 98.4% 13.0% asset securities investment classes grade 31% 69% credi
Slide 68: Debt securities are well balanced
Group Investments – Zurich’s debt securities are well balanced Group Investments - USD 196bn (100%) As of December 31, 2009 Government and supranational bonds: USD 52bn (27%) Market/Cost1: 102% of which: 99% inv. grade 48%in General Insurance 69% AAA 45% in Global Life 12% AA 17% A 2%
Slide 69: Government & supranational bonds well diversified
Group Investments – Government & supranational bonds are well diversified Group Investments - USD 196bn (100%) As of December 31, 2009 Government and supranational bonds: USD 52bn (27%) Market/Cost: 102% of which: 99% inv. grade 49% in General Insurance 69% AAA 44% in Global Life 12% AA
Slide 70: Corporate bonds are of high quality
Group Investments – Zurich’s Corporate bonds are of high quality Group Investments - USD 196bn (100%) As of December 31, 2009 Corporate bonds: USD 61bn (31%) Market/Cost: 101% Split by industries Split by credit rating 45% Banks, 99% inv. grade including 16%1 covered bonds 26% AAA 9% Cities,
Slide 71: Banks Corporate bonds high quality and diversified
Group Investments – Banks Corporate bonds are of high quality and well diversified Group Investments - USD 196bn (100%) As of December 31, 2009 Banks Corporate bonds: USD 28bn (14%) Market/Cost: 100% Split by seniority Split by credit rating 36% Covered bonds 100% inv. grade 49% Senior bonds
Slide 72: Split of total MBS/ABS of USD 24bn
Group Investments – Split of total MBS/ABS of USD 24bn (12%) MBS/ABS: USD 24bn (12%) Market/Cost: 97% Group Investments 96% inv. grade USD 196bn (100%) 84% AAA includes: US MBS: USD 15.7bn (8.0%) Market/Cost: 100% 96% inv. grade; 89% AAA Debt US ABS1: USD 2.7bn (1.4%) securities Market/Cost: 1
Slide 73: Split of US MBS of USD 15.7bn
Group Investments – Split of US MBS of USD 15.7bn (8.0%) Group Investments US-MBS: USD 15.7bn (8.0%) Market/Cost: 100% USD 196bn (100%) 96% inv. grade 89% AAA Debt of which: securities US “Agency” MBS: USD 9.7bn (5.0%) Market/Cost: 103% 69% 100% AAA USD 1.0bn backed by GNMA USD 8.7bn backe
Slide 74: Group investments – capital losses in P&L
Group investments – capital losses in P&L Net capital losses/gains on investments and impairments (in P&L) Equity investments Equity investments Debt investments of which: impairments Debt investments in USD millions Other investments in USD millions Other investments 500 500 124 118 111 0 0 -16 -23
Slide 75: Group investments – unrealized gains / losses
Group investments – unrealized gains / losses Change in net unrealized gains / losses on investments incl. in shareholders’ equity1 in USD millions 4500 4,327 4,090 4000 3500 3000 2500 2000 1,601 1500 1,395 1000 944 546 500 216 78 0 -12 -7 -105 -90 -17 -500 -410 Equity investments -1000 Debt investm
Zurich Insurance Group — FY2009 Earnings Presentation on 6ix