Slide 1: Half-year 2017 Results
Half-year 2017 Results Investor and analyst presentation Zurich, 4 August 2017 We make the world more resilient.
Slide 2: Swiss Re delivers solid results in the first half of 2017
Swiss Re delivers solid results in the first half of 2017 • Swiss Re reports Group net income of USD1.2bn, supported by disciplined underwriting and strong investment results; ROE 7.0% • P&C Reinsurance delivers solid results and maintains risk adjusted price quality; ROE 9.1% • L&H Reinsurance cont
Slide 3: Solid P&C Reinsurance results in a challenging business environment
Solid P&C Reinsurance results in a challenging business environment Gross premiums written EBIT Net income USD m USD m USD m 12 000 11 124 2 500 45 1 800 1 543 45 10 328 9 650 1 979 1 278 1 600 9 404 40 10 000 40 2 000 1 772 35 1 400 870 8 000 30 1 200 35 1 241 1 500 25 1 000 30 546 6 000 862 20 800
Slide 4: L&H Reinsurance maintains a stable underwriting performance and achieves a strong ROE
L&H Reinsurance maintains a stable underwriting performance and achieves a strong ROE Gross premiums written EBIT Net income USD m USD m USD m 6 586 841 6 344 6 399 509 600 45 743 7 000 900 45 5 934 704 432 40 417 800 40 6 000 500 700 35 35 5 000 600 30 400 30 4 000 500 407 25 300 25 400 20 20 3 000
Slide 5: Corporate Solutions’ results impacted by higher natural catastrophe losses and continued pricing pressure
Corporate Solutions’ results impacted by higher natural catastrophe losses and continued pricing pressure Gross premiums written1 EBIT Net income USD m USD m USD m 2 500 2 400 400 359 45 300 248 45 2 300 40 1 799 1 783 2 200 350 40 1 676 1 699 2 100 250 2 000 35 1 900 35 300 217 1 800 146 1 700 30 2
Slide 6: Life Capital generates strong gross cash and makes significant dividend distribution to the Group
Life Capital generates strong gross cash and makes significant dividend distribution to the Group Gross premiums written EBIT Net income USD m USD m USD m 1 100 932 800 717 45 569 45 1 000 886 750 40 600 40 769 700 900 650 35 500 35 600 800 550 30 30 700 500 400 600 447 450 25 250 25 266 400 300 20
Slide 7: Group investment portfolio continues to provide strong and sustainable returns
Group investment portfolio continues to provide strong and sustainable returns Average invested assets Return on investments Running yield USD bn, basis for ROI calculation 3.9% 4.0% 3.7% 114.2 115.3 114.3 3.5% 3.4% 110.3 3.0% 3.0% 2.9% H1 2014 H1 2015 H1 2016 H1 2017 H1 2014 H1 2015 H1 2016 H1 2017
Slide 8: Swiss Re is well placed to face industry challenges and respond to opportunities
Swiss Re is well placed to face industry challenges and respond to opportunities • Very strong capital position enables execution of systematic capital allocation Capital (Group SST ratio 2017: 262%) position • Capital management priorities remain unchanged • Supported World Bank in launching the fi
Slide 9: Appendix
Appendix • Key figures • Investment market outlook and portfolio position • Business segment results H1 2017 – Income statement • Return on investments (ROI) • Business segment results H1 2017 – Balance sheet • Overall investment portfolio • Total equity and ROE H1 2017 • Fixed income securities • C
Slide 10: Key figures
Key figures Corporate Life Group Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Capital Items H1 2017 H1 2016 Gross premiums written 9 404 6 399 1 745 932 - 18 145 19 798 Premiums earned and fee income 7 978 5 769 1 748 709 - 16 204 16 118 EBIT 862 743 45 194 82 1 842 2 612 Net i
Slide 11: Business segment results H1 2017
Business segment results H1 2017 Income statement Re- Corporate Life Group Consoli- Total Total USD m insurance P&C Re L&H Re Solutions Capital Items dation H1 2017 H1 2016 Revenues Gross premiums written 15 803 9 404 6 399 1 745 932 - -335 18 145 19 798 Net premiums written 14 808 9 076 5 732 1 382
Slide 12: Business segment results H1 2017
Business segment results H1 2017 Balance sheet Re- Corporate Life Group Consoli- End End 30 June 2017, USD m insurance P&C Re L&H Re Solutions Capital Items dation H1 2017 FY 2016 Assets Fixed income securities 65 239 33 760 31 479 7 080 25 359 86 - 97 764 93 276 Equity securities 2 482 1 614 868 51
Slide 13: Total equity and ROE H1 2017
Total equity and ROE H1 2017 Re- Corporate Life Group Total1 USD m insurance P&C Re L&H Re Solutions Capital Items H1 2017 Common shareholders' equity2 at 31 December 2016 19 500 12 688 6 812 2 218 7 272 5 544 34 532 Net income/loss attributable to common shareholders 978 546 432 39 143 51 1 211 Div
Slide 14: Common shareholders' equity movement
Common shareholders' equity movement Decrease driven by dividend payments and share buy-back USD m Gov bonds 0.2 Dividends -1.5 Corp bonds 0.4 Share buy-back -0.5 Sec products 0.1 Equities and others -0.1 Tax -0.1 1 211 - 2 035 476 189 34 532 34 373 Common shareholders' Net income Dividends and shar
Slide 15: P&C Reinsurance 2017 renewals
P&C Reinsurance 2017 renewals Disciplined underwriting in challenging market environment January 2017 treaty renewals1 -16% YTD 2017 renewals (January – July) Treaty portfolio volume USD 10.1bn USD 8.5bn Up for renewal Estimated 1 January 2017 outcome -13% April 2017 treaty renewals1 -4% USD 15.8bn
Slide 16: P&C Reinsurance 2017 renewals
P&C Reinsurance 2017 renewals Portfolio weighting by line of business and region Gross premium volume, treaty portfolio Up for renewal July YTD Estimated outcome July YTD By line of business 13% 13% Casualty 20% 22% 48% Nat cat 50% Property 1 Specialty 1 17% 17% By region 20% 25% 37% 39% EMEA Americ
Slide 17: P&C underwriting performance
P&C underwriting performance P&C Reinsurance and Corporate Solutions Combined ratio Main drivers of change Net Under- premiums writing earned result P&C Reinsurance H1 2017 H1 2017 H1 2016 H1 2017 USD m USD m Property 94.1% 88.7% • H1 2017 reflects lower large man-made losses and 2 704 306 favourabl
Slide 18: Corporate Solutions combined ratio breakdown
Corporate Solutions Combined ratio breakdown Combined ratio Combined ratio decomposition (new and old disclosure) 104.5 FY FY H1 %pts 93.2 101.1 %pts 2015 2016 2017 14.3 13.6 14.8 Reported combined ratio 93.2 101.1 104.5 20.4 21.7 21.7 • Large natural catastrophe impact -0.8 -1.5 -4.1 New disclosure
Slide 19: Investment market outlook and portfolio position
Investment market outlook and portfolio position Market outlook 1% 100% 1% • Baseline of a moderate global growth outlook 7% 7% 90% remains; US growth should allow the Fed to continue with policy normalisation 80% 70% 40% 41% • Improved outlook for Europe on the macro and political fronts 60% 50% •
Slide 20: Return on investments (ROI)
Return on investments (ROI) Corporate Life Group Consoli- Total Total USD m P&C Re L&H Re Solutions Capital items dation H1 2017 H1 2016 Investment related net investment income 424 545 86 449 92 -75 1 521 1 560 Fixed income 338 516 78 425 - - 1 357 1 415 Equities and alternative investments -incl R
Slide 21: Overall investment portfolio
Overall investment portfolio Other investments Cash and cash incl. policy loans equivalents Mortgages and 8% 4% other loans End Short-term investments 3% USD bn H1 2017 6% Equities Balance sheet values 168.3 5% Unit-linked investments -29.8 Government bonds With-profit business -5.6 39% Assets for o
Slide 22: Fixed income securities
Fixed income securities Government Credit USD m bonds bonds End • Increase in government bonds FY 2016 48 374 44 902 mainly due to net purchases and End foreign exchange impacts H1 2017 51 591 46 173 • Credit bonds include corporate bonds (USD 41.7bn) and securitised products (USD 4.5bn) 2% 3% 3% •
Slide 23: Equities and alternative investments
Equities and alternative investments Equity securities Exchange-traded funds by sector Non-Cyclical Consumer Goods 3% 2% End End 3% 1% Financials USD m FY 2016 H1 2017 4% Information Technology 4% Equity securities 2 698 3 017 6% General Industrials Private equity 1 430 1 407 Cyclical Services 10% 5
Slide 24: Group capital position
Group capital position USD bn, % 80 SST risk-bearing capital (RBC) 261% 262% SST target capital (TC) 245% 241% New SST ratio definition 70 223% 223% Old SST ratio definition 60 52.2 52.6 51.3 48.7 50.1 50 40 30 21.6 23.6 22.5 22.8 New SST ratio definition: 19.8 SST RBC – MVM 20 10 SST TC – MVM 0 201
Slide 25: Sustainability
Sustainability Swiss Re takes the long-term view and enables sustainable progress Sustainability performance highlights External recognition Business solutions, examples 2017 • Supported the World Bank in launching the first- DJSI Insurance Industry Leader ever bonds to combat pandemic outbreaks for
Slide 26: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2017 2 November Nine Months 2017 Key Financial Data Conference call 2018 23 February Annual Results 2017 Conference call 15 March Publication of Annual Report 2017 20 April 154th Annual General Meeting Zurich Investor Relations contacts Hotline E-mail
Slide 27: 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