Swiss Re Ag · SIX:SREN
Swiss Re — H1 2024 Earnings Presentation
27 slides from Swiss Re's earnings presentation, Aug 22, 2024
Slide 1: Half-year 2024 Results
Half-year 2024 Results Swiss Re investor and analyst presentation Zurich, 22 August 2024
Slide 2: Strong H1 2024 results, focus on achieving full-year financial targets
Strong H1 2024 results, focus on achieving full-year financial targets Swiss Re Group Q2 2024 H1 2024 FY 2024 key figures key figures targets Net income P&C (USD m) Reinsurance Combined ratio1 84.4% 84.5% <87% 2 088 1 788 996 L&H Reinsurance Net income (USD) 471m 883m ~1.5bn Q2 24 H1 23 H1 24 Corpor
Slide 3: Disciplined underwriting and strong investment income across the Group
Disciplined underwriting and strong investment income across the Group Insurance revenue (USD bn) New business CSM (USD bn) Group net income (USD bn) 22.5 21.8 3.0 9.8 P&C Reinsurance 2.9 Insurance service result 9.8 2.8 2.2 P&C Reinsurance 2.1 1.8 2.2 Investment result 1.6 8.2 8.7 L&H Reinsurance -
Slide 4: P&C Reinsurance achieved strong nominal price change in year-to-date renewals
P&C Reinsurance achieved strong nominal price change in year-to-date renewals Price change1 +9% Higher loss assumptions +11% Year-to-date renewals USD bn • ~85% of treaty business renewed Premium volume change +8% 2.4 19.9 • +8% premium volume change 18.5 • +9% price increase, with rate increases mo
Slide 5: Year-to-date renewals continue to feature targeted growth in property and specialty
Year-to-date renewals continue to feature targeted growth in property and specialty Gross premium volume by line of business1 (USD bn) Gross premium volume by region1 (USD bn) Up for Premium Outcome Up for Premium Outcome renewal YTD volume change YTD renewals renewal YTD volume change YTD renewals
Slide 6: Recurring investment income continues to benefit from higher reinvestment yield
Recurring investment income continues to benefit from higher reinvestment yield Recurring income yield and reinvestment yield (%) 5.0 4.8% 4.5 4.1% 4.8% 4.0 Reinvestment yield 3.5 in Q2 2024 3.0 2.5 Recurring income 2.0 increased by 1.5 USD ~0.3bn 1.0 in H1 2024 vs. H1 2023 0.5 0.0 2019 2020 2021 20
Slide 7: Financial highlights
Financial highlights Half-year 2024 Results 7
Slide 8: Key figures H1 2024
Key figures H1 2024 Corporate Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items Consolidation H1 2024 H1 2023 • Insurance revenue 9 779 8 687 3 797 581 -365 22 479 21 783 • Insurance service result 1 411 1 007 509 -69 2 858 2 813 Combined ratio 84.5% 88.7% • Insurance fi
Slide 9: P&C Reinsurance maintains solid performance while strengthening portfolio resilience
P&C Reinsurance maintains solid performance while strengthening portfolio resilience Insurance revenue (USD bn) New business CSM (USD m) Insurance service result (USD m) Combined ratio1 (%) 9.8 9.8 2 184 84.5 81.8 4.5 Expense ratio2 1 683 4.1 Property 1 411 1 835 CSM release Loss and 2.0 Specialty 8
Slide 10: L&H Reinsurance result driven by in-force margins and recurring investment income
L&H Reinsurance result driven by in-force margins and recurring investment income Insurance revenue (USD bn) New business CSM (USD m) Insurance service result1 (USD m) Net income (USD m) 8.7 562 8.2 Insurance service 1 007 1 007 result 918 CSM release2 711 711 883 604 683 827 Investment result Chang
Slide 11: L&H Reinsurance CSM balance includes one-off impacts
L&H Reinsurance CSM balance includes one-off impacts CSM development (USD m) 290 562 137 -918 -521 19 508 19 058 31 Dec 2023 New business CSM Interest accretion CSM release1 Change in assumptions Other including fx1 30 Jun 2024 • New business CSM driven by all regions, with the highest contribution
Slide 12: Corporate Solutions continues to deliver strong underwriting results
Corporate Solutions continues to deliver strong underwriting results Insurance revenue (USD bn) New business CSM (USD m) Insurance service result (USD m) Combined ratio2 (%) 3.8 89.2 3.7 88.7 509 464 Expense 1.5 Property 24.7 ratio3 646 Assumed 414 CSM release 223 0.8 Specialty Changes in RA (curren
Slide 13: Investment result driven by strong recurring income
Investment result driven by strong recurring income Asset allocation1 (USD bn) Recurring income yield (RIY) and ROI (%) 107.0 105.0 RIY 3.4 4.0 10.8 10.9 5.7 5.6 ROI 4.0 0.2 Investment gains/losses 0.2 Other NII (incl. expenses) 42.1 39.6 Equities and alternatives 2.7 Mortgages and other loans Credi
Slide 14: Additional information
Additional information Half-year 2024 Results 14
Slide 15: Financial statements Q2 2024
Financial statements Q2 2024 Income statement Corporate Total USD m P&C Re L&H Re Solutions Group items Consolidation Q2 2024 Insurance revenue 4 815 3 893 1 961 291 -157 10 803 Insurance service expense -3 839 -3 329 -1 568 -361 180 -8 917 Insurance service result before reinsurance contracts held
Slide 16: Financial statements H1 2024
Financial statements H1 2024 Income statement Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation H1 2024 H1 2023 Insurance revenue 9 779 8 687 3 797 581 -365 22 479 21 783 Insurance service expense -7 837 -7 233 -3 060 -645 422 -18 353 -18 280 Insurance service result befo
Slide 17: Financial statements H1 2024
Financial statements H1 2024 Balance sheet Corporate USD m P&C Re L&H Re Solutions Group items Consolidation 30 Jun 2024 31 Dec 2023 Cash and cash equivalents 1 458 608 685 541 0 3 292 4 555 Investments 63 520 32 465 9 820 2 944 -5 695 103 054 104 858 Fixed income securities 48 570 26 431 9 354 663
Slide 18: Financial statements H1 2024
Financial statements H1 2024 Shareholders' equity development and ROE calculation Total Shareholders' equity development, USD m H1 2024 Shareholders' equity at 31 December 2023 19 972 Net income attributable to common shareholders 2 088 Dividends -1 978 Change in unrealised gains/losses on investmen
Slide 19: Investments
Investments ROI Q2 2024 Corporate Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items Consolidation Q2 2024 Investment result per income statement 548 418 144 103 -127 1 086 Less net investment income not included in ROI1 51 -4 -4 - - 43 Less investment gains/losses not included
Slide 20: Investments
Investments ROI H1 2024 Corporate Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items Consolidation H1 2024 Investment result per income statement 1 249 827 289 169 -306 2 228 Less net investment income not included in ROI1 98 -3 -4 - - 91 Less investment gains/losses not includ
Slide 21: Investments
Investments Breakdown of selected asset classes as of 30 June 2024 Fixed income securities Mortgages and loans Government Credit % bonds bonds Total USD m Total AAA 10 9 9 Net carrying value 5 823 AA 71 5 40 Fair value 5 569 A 11 33 21 BBB 3 46 23 <BBB 2 2 2 Equity and alternative investments Invest
Slide 22: H1 2023 comparatives
H1 2023 comparatives Income statement Corporate Total USD m P&C Re L&H Re Solutions Group items Consolidation H1 2023 Insurance revenue 9 848 8 174 3 659 398 -296 21 783 Insurance service expense -7 487 -7 602 -2 900 -425 134 -18 280 Insurance service result before reinsurance contracts held 2 361 5
Slide 23: Glossary
Glossary CSM Contractual service margin, gross of tax, unless otherwise stated Earnings per share Net income attributable to shareholders after impact of perpetual capital instruments / weighted average shares outstanding Expense ratio P&C Reinsurance: directly attributable expenses / insurance reve
Slide 24: Corporate calendar and contacts
Corporate calendar and contacts Corporate calendar 2024 14 November 9M 2024 Results Conference call 13 December Management Dialogues 2024 London 2025 27 February Annual Results 2024 Conference call 13 March Publication of Annual Report 2024 11 April 161st Annual General Meeting Zurich Investor Relat
Slide 25: Half-year 2024 Results
(in) Swiss Re Half-year 2024 Results 25
Slide 26: 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 27: 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