Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — H1 2015 Earnings Presentation
18 slides from Zurich Insurance's earnings presentation, Aug 6, 2015
Slide 1: Global Life Source of earnings – Briefing document
Global Life Source of earnings – Briefing document Half year results 2015
Slide 2: Background: source of earnings
Background SOURCE OF EARNINGS What is the purpose of source of earnings? Sources of Earnings (SoE) reporting presents the key drivers of life IFRS results in more detail than the traditional insurance profit and loss account. This information is a shareholder view of earnings, generally excluding
Slide 3: Margin overview: revenue components
Margin overview Key components REVENUES COMPONENTS DESCRIPTION Loadings & Fees Unit linked (UL) fund • For UL contracts, fund based fees are one of the main sources of income and we show based fees net of these separately within Fees and Loadings. Investment management charges are set investment exp
Slide 4: Margin overview: expense components
Margin overview Key components EXPENSES COMPONENTS DESCRIPTION Operating costs Overheads & Admin • These are the regular expenses of the business including depreciation and amortization of software and intangibles. It excludes acquisition costs and expenses directly related to income (e.g. investmen
Slide 5: How to interpret and use the KPIs (1/2)
Key performance indicators How to interpret and use the KPIs (1/2) H1 H2 H1 Adjusted KPIs 2014 2014 2015 DESCRIPTION UL fund based fees 0.7% 0.7% 0.6% Interpretation • This KPI is based on fund based fees generated from both on and off-balance sheet Av. UL AUM unit linked funds, and compared against
Slide 6: How to interpret and use the KPIs (2/2)
Key performance indicators How to interpret and use the KPIs (2/2) H1 H2 H1 Adjusted KPIs 2014 2014 2015 DESCRIPTION Investment Margin 0.8% 0.7% 0.7% Interpretation • The investment margin mostly comprises spread return on assets backing non unit- Av. NL reserves linked policyholder reserves. The di
Slide 7: Analysis by region: North America
Analysis by region North America NEW BUSINESS SALES & EARNINGS ADJUSTED KPIs & OVERVIEW New business value product split KPIs H1-14 H1-15 As a % of UL fund based fees 0.2% 0.1% Average UL AuM Corporate Protection Unit-linked Other loadings 24% 28% GWP & Deposits Investment margin 0.7% 0.4% Average N
Slide 8: Analysis by region: Latin America
Analysis by region Latin America NEW BUSINESS SALES & EARNINGS ADJUSTED KPIs & OVERVIEW New business value product split KPIs H1-14 H1-15 As a % of UL fund based fees 0.6% 0.5% Average UL AuM Savings & annuity Other loadings 26% 30% GWP & Deposits Unit-linked -8% Investment margin 3.3% 3.4% Average
Slide 9: Analysis by region: EMEA
Analysis by region EMEA NEW BUSINESS SALES & EARNINGS ADJUSTED KPIs & OVERVIEW New business value product split KPIs H1-14 H1-15 As a % of UL fund based fees 0.7% 0.6% Average UL AuM Savings & annuity Other loadings 8% 7% GWP & Deposits -2% Investment margin 0.6% 0.6% Average NL reserves Pension & O
Slide 10: Analysis by region: APAC
Analysis by region APAC NEW BUSINESS SALES & EARNINGS ADJUSTED KPIs & OVERVIEW New business value product split KPIs H1-14 H1-15 As a % of UL fund based fees 1.8% 1.7% Average UL AuM Unit-linked Pension & other corporate Other loadings 17% 18% GWP & Deposits 3% Investment margin 2.0% 1.8% Average NL
Slide 11: Analysis by region: Other
Analysis by region Other NEW BUSINESS SALES & EARNINGS OVERVIEW New business value product split Other region mirrors the segmental reporting in the Group Annual Report. Global Life manages its business through four main regions and the residual “Other” region includes business units that do not fal
Slide 12: Appendix
@ ZURICH Appendix
Slide 13: Key financial data calculations (net of minorities)
Key performance indicators Key financial data used in the calculations (net of minorities) USDm USDm Total Global Life H1-14 H2-14 H1-15 EMEA H1-14 H2-14 H1-15 Average total unit-linked AuM 128'596 129'261 127'843 Average total unit-linked AuM 120'040 120'534 119'477 Average total reserves 220'773 2
Slide 14: Key financial data calculations (net of minorities) charts
Key performance indicators Key financial data used in the calculations (net of minorities) USDbn USDbn Average unit-linked AuM GWP & Deposits 129 129 16 1 0 1 0 127 1 0 0 0 13 2 14 6 6 0 0 5 1 0 1 1 2 2 2 0 2 0 13 120 121 11 119 10 APE Average total reserves 221 219 2.5 6 0 0 211 2.1 0.1 0.0 2.1 7 0
Slide 15: Historical margins & KPIs
Historical margins & KPIs Highlighting distorting impacts MARGIN HISTORY (USDm) IMPACTS (USDm) ADJ. MARGIN (USDm) Business Operating Profit H1-14 H2-14 H1-15 H1-14 1 H2-14 H1-15 2 H1-14 H2-14 H1-15 UL fund based fees 438 449 406 0 0 0 438 449 406 Premium & Other loadings 1'644 1'805 1'558 0 0 0 1'64
Slide 16: Total margins by region
Total margins by region As reported and adjusted for distorting impacts USDm As reported Adjusted USDm As reported Adjusted Total Global Life H1-14 H1-15 Delta H1-14 H1-15 Delta EMEA H1-14 H1-15 Delta H1-14 H1-15 Delta UL fund based fees 438 406 -7% 438 406 -7% UL fund based fees 403 375 -7% 403 375
Slide 17: Movements from 2014 to 2015: commentary on key variances
Movements from 2014 to 2015 Commentary on key variances ADJUSTED MARGIN MOVEMENTS COMMENTARY UL fund based fees Business Operating Profit 1 H1-14 H1-15 Change 7% growth in fund based fees in local currency driven by growth in UL UL fund based fees 438 406 -7% AuM in EMEA, particularly in Ireland.
Slide 18: 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’).
Zurich Insurance Group — H1 2015 Earnings Presentation on 6ix