Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Zurich Financial Services — FY2010 Earnings Presentation
73 slides from Zurich Insurance's earnings presentation, Feb 10, 2011
Slide 1: Annual Results Reporting 2010
Annual Results Reporting 2010 Analysts and Media Presentation February 10, 2011
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 of Zurich Financial Services Ltd or the Zurich Financial Services Group (t
Slide 3: Agenda
Agenda Introduction Martin Senn Annual Results 2010 Dieter Wemmer Q&A Closing remarks Martin Senn © Zurich Financial Services Ltd February 10, 2011 Annual Results Reporting 2010 3
Slide 4: Introduction
Introduction Martin Senn Chief Executive Officer February 10, 2011
Slide 5: Financial highlights
Financial highlights in USD millions 2010 20091 Change for the years ended December 31 Business operating profit (BOP) 4,875 5,593 -13% Net income attributable to shareholders 3,434 3,963 -13% General Insurance combined ratio 97.9% 96.8% -1.1pts Global Life new business value2 817 782 4%2 Farmers Mg
Slide 6: Proposed dividend of CHF 17 per share for 2010
Proposed dividend of CHF 173 per share for 2010 resulting in a payout ratio of 70% Dividends / EPS in respect of the business year (in CHF)1 50 47.1 45 40 39.5 35 2 29.9 30 27.1 23.4 24.22 24.4 25 22.9 20.8 19.7 20 18.9 7.9 3 8.7 16.0 17.0 15 15.0 11.0 10 7.0 11.0 5 2.5 4.0 0 © Zurich Financial Serv
Slide 7: Key Messages
Key Messages Performed well in a challenging environment in 2010 Strategically well-positioned for the future Focused on targeted growth in profitable markets Strong capital base and solvency position Strong cash flow generation to sustain our attractive dividend Delivering on our promise to drive t
Slide 8: Annual Results 2010
Annual Results 2010 Dieter Wemmer Chief Financial Officer February 10, 2011
Slide 9: Business operating profit and net income by quarter
Business operating profit and net income by quarter Business operating profit in USD millions 2,000 1,500 1,350 1,259 1,240 1,027 1,000 500 0 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Net income attributable to shareholders in USD millions 2,000 1,500 1,040 1,000 935 751 © Zurich Financial Services Ltd 707 50
Slide 10: Business operating profit by segment
Business operating profit by segment in USD millions 2010 20091 Change for the years ended December 31 General Insurance 2,673 3,463 -23% Global Life 1,474 1,477 0% Farmers (including Farmers Re) 1,686 1,554 8% Other Operating Businesses -801 -611 -31% Total Core BOP 5,032 5,883 -14% Non-Core Busine
Slide 11: General Insurance – key performance indicators
General Insurance – key performance indicators in USD millions 2010 2009 Change Change for the years ended December 31 in LC1 GWP and policy fees 33,066 34,157 -3% -3% Rate change2 2% 3% -1pts Loss ratio 71.1% 70.9% -0.2pts Expense ratio 26.8% 25.9% -0.9pts Combined ratio 97.9% 96.8% -1.1pts Busines
Slide 12: General Insurance – Rate Change Monitor
General Insurance – Rate Change Monitor1 for personal and commercial lines 12 months 2010 Discrete Q4 2010 Int’l Total Int’l Total GC NAC EGI Markets GI GC NAC EGI Markets GI Personal Lines n/a n/a 5% 0% 5% n/a n/a 6% -1% 5% Commercial Lines 1% 0% 1% 6% 1% 1% 1% 3% 8% 2% EGI by country EGI by countr
Slide 13: General Insurance – comparison of loss ratio
General Insurance – comparison of loss ratio 2010 2009 75% Loss ratio development Discrete quarters 71.1% 70.9% Underlying loss ratio 70% 73.0% 72.2% 70.0% 71.2% 69.8% 71.0% 71.4% 67.4% 0.3% 69.5% 66.3% 3.7% 65% 0.0% 7.0% 8.5% 4.7% 1.0% 60% USD USD USD USD USD 1,313m -275m -2,363m 1,074m -2,022m 55%
Slide 14: General Insurance – major CAT & large claims
General Insurance – major CAT & large claims: a heavy quarter in a heavy year Major CAT and Large Claims in USD millions 900 870 800 665 700 600 550 552 4 year quarterly average1 500 400 300 200 100 0 Q1-10 Q2-10 Q3-10 Q4-10 1 not weighted for volume Impact: Major CAT and Large Claims as a % of Net
Slide 15: General Insurance – expense ratio walk from 2009 to 2010
General Insurance – expense ratio walk from 2009 to 2010 25.9% 26.8% Change year-over-year Expense ratio development Other tech Discrete quarters 13.3% expenses 14.2% 26.7%26.9%27.0%26.4%26.9% 0.9 0.9 25.7%25.5%25.1% 12.6% Commissions 12.6% 0.0 0.0 e pe W s x i on ng Ta es ex er U ns ha iss ium Q41
Slide 16: Global Life – key performance indicators
Global Life – key performance indicators in USD millions 2010 2009 Change Change for the years ended December 31 in LC1 GWP, policy fees and insurance 27,675 26,029 6% 9% deposits Net inflows to Assets under Mgmt 5.5bn 5.4bn 2% Annual Premium Equivalent (APE) 3,699 3,667 1% 4% New Business Value (NB
Slide 17: Global Life – new business by pillar
Global Life – new business by pillar in USD millions NBV NBV Change APE APE Change for the years ended Dec 31 1 1 2010 2009 in LC 2010 2009 in LC Bank Distribution 213 191 19% 932 1,099 -10% IFA/Brokers 197 167 19% 972 924 7% Agents 130 189 -29% 510 503 3% Corporate Life & Pensions 124 101 23% 729 6
Slide 18: Global Life – Business operating profit: Profit by Source
Global Life – Business operating profit: Profit by Source in USD millions New Business Business in Force Total for the years ended December 31 2010 2009 2010 2009 2010 2009 Net Expense margin -1,751 -1,659 1,529 1,288 -223 -371 Net Risk margin 639 596 639 596 Net Investment margin 697 821 697 821 Ot
Slide 19: Farmers – key performance indicators
Farmers – key performance indicators in USD millions 2010 2009 Change for the years ended December 311 Farmers Management Services Managed gross earned premium margin2 7.3% 7.2% 0.1pts Business operating profit 1,365 1,326 3% Farmers Re Business operating profit 321 228 41% Farmers Exchanges2 Gross
Slide 20: Investment performance of Group investments
Investment performance of Group investments in USD millions 2010 2009 Change for the years ended December 31 Net investment income 7,092 7,505 -5% Net capital gains/(losses) on investments and 898 (1,576) nm impairments1 of which attributable to shareholders 279 (1,528) nm Net investment result 7,99
Slide 21: Development of shareholders' equity in Q4 2010
Development of shareholders’ equity in Q4 2010 in USD millions 33,000 1,040 699 745 121 31,984 32,000 234 31,011 31,000 30,000 29,000 28,000 27,000 26,000 25,000 24,000 23,000 22,000 21,000 20,000 Balance as of Net Income Change in net Cumulative Net actuarial Other Balance as of © Zurich Financial
Slide 22: 2011 estimated economic and regulatory solvency
2011 estimated economic and regulatory solvency Statutory solvency ratio Economic solvency ratio3 (Group’s Solvency I1) ~136% 245% +5pts -7pts 243% ~114% ~119% 195% -3pts +8 pts Dec 31 Sept 30 Impact in Impact Dec 31 Jan 1 Sep 30 Movements Impact Jan 1 20092 2010 Q4-10 from 2010 est. est. in AFR and
Slide 23: Attractive CHF 17 dividend for 2010 without withholding tax
Attractive CHF 17 dividend for 2010 without deduction of withholding tax1 Book value per share (in CHF) Dividend yield3 300 8% 7.0%1 5 7% 250 5 229.4 5.9% 210.1 206.65 202.7 6% 5.6% 194.5 200 5 5% 4.5% 154.35 153.85 158.3 150 4% 3.1% 3% 2.6% 100 1.8% 2% 1.3% 50 1% 0 0% 2003 2004 2005 2006 2007 2008
Slide 24: Q&A
Q&A © Zurich Financial Services Ltd February 10, 2011 Annual Results Reporting 2010 24
Slide 25: Closing remarks
Closing remarks Martin Senn Chief Executive Officer February 10, 2011
Slide 26: Appendix
Appendix © Zurich Financial Services Ltd February 10, 2011 Annual Results Reporting 2010 26
Slide 27: Top line development by segment
Top line development by segment in USD millions 2010 2009 Change Change for the years ended December 31 in LC1 General Insurance GWP and policy fees 33,066 34,157 -3% -3% Global Life GWP, policy fees and insurance 27,675 26,029 6% 9% deposits Annual Premium Equivalent (APE)2 3,699 3,667 1% 4% Farmer
Slide 28: Development of shareholders' equity in 2010
Development of shareholders’ equity in 2010 in USD millions 33,000 2,145 729 162 205 31,984 32,000 31,000 3,434 30,000 29,304 2,213 29,000 28,000 27,000 26,000 25,000 24,000 23,000 22,000 21,000 20,000 Balance as of Dividends Net Income Change in net Cumulative Net actuarial Other Balance as of © Zu
Slide 29: Business division BOP-ROE based on RBC-allocated IFRS equity
Business division BOP-ROE1 based on RBC-allocated IFRS equity for the years ended December 31 2010 2009 General Insurance 16.9% 24.0% Global Corporate 20.0% 23.4% North America Commercial 20.3% 25.2% Europe General Insurance 16.7% 24.7% International Markets 4.4% 21.0% GI Global Functions including
Slide 30: Zurich RBC by segment and risk type for 2011
Zurich RBC by segment and risk type for 2011 Capital Allocation: Total RBC estimate: USD 36 billion1 USD 34 billion Farmers1 8% 12% Other2 13% Market/ALM risk 10% General Operational risk 37% Insurance Business risk 1% 50% 4% P&R risk3 Global Life Re-ins credit risk Life insurance risk 28% Natural c
Slide 31: 2011 estimated economic and regulatory solvency
2011 estimated economic and regulatory solvency What if scenarios Statutory solvency ratio / Group’s Solvency I1 Dec 31, 09 Sep 30, 10 Impact Q4-10 Dividend4 Dec 31, 10 Debt securities at cost -12pts 195%2 245% +5pts -7pts 243% GI DAC +24pts Economic solvency ratio3 ~136% +8pts -3pts ~119% ~114% Imp
Slide 32: Updated economic solvency view for 2011
Updated economic solvency view for 2011 in USD billions1 Available Financial Resources (AFR) Estimated AFR as of September 30, 2010 + 37 Movements in Q4-10 + 4 Proposed dividend 20102 - 1 January 1 estimate for 2011 AFR + 40 Estimated 2011 economic solvency ratio Risk Based Capital (RBC) ~119% Estim
Slide 33: Strong economic solvency
Strong economic solvency1 in USD billions (rounded) Change from EV to MCEV 40 41 40 38 35 Available to policyholders 34 34 30 30 30 30 29 28 27 25 28 27 27 26 26 20 23 21 15 10 5 RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR 0 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan.
Slide 34: Estimation of Available Financial Resources as of January 1, 2011
Estimation of Available Financial Resources (AFR) as of January 1, 2011 in USD billions (rounded) 45 40 9 42 (2) 40 35 30 (3) 20 32 29 25 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' forc
Slide 35: Group's Solvency I calculation
Group’s Solvency I calculation in USD millions Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 20101 2010 2010 2010 2009 finalized2 Eligible equity Total equity 33,321 32,361 29,986 29,876 31,104 Net of intangibles and other assets -6,998 -6,994 -6,855 -7,305 -7,456 Free reserves for policyholder dividends
Slide 36: Group's Solvency I - sensitivities
Group’s Solvency I - sensitivities1 Solvency I ratio impact (in %) Monetary impact on IFRS equity as of Dec 31, 2010 (in USD bn) 100% 150% Base case 243% Interest rate +100 bps 206% -4.3 Interest rate -100 bps 283% 4.7 Equity markets -10% 233% -1.1 Credit spreads +100 bps 229% -1.6 © Zurich Financia
Slide 37: General Insurance – BOP and Combined ratio by business
General Insurance – BOP and Combined ratio by business Business operating profit Combined ratio (%) CAT4 in USD millions 2010 2009 Change Global 2.4 95.8 for the years ended December 31 Corporate 95.1 Global Corporate 741 787 -6% 97.1 NA Commercial 96.9 North America Commercial 1,118 1,243 -10% Euro
Slide 38: General Insurance - Gross written premiums and policy fees
General Insurance - Gross written premiums and policy fees In USD millions 2010 2009 Change Change for the years ended December 31 in LC1 Global Corporate 7,624 7,602 0% 0% North America Commercial 9,728 9,864 -1% -2% Europe General Insurance 13,273 14,556 -9% -7% International Markets 3,011 2,695 1
Slide 39: General Insurance – written rate change 2008 through 2010
General Insurance – written rate change 2008 through 2010 General Insurance – rate change 2008 through 2010 5% 4.2% 3.6% 3.7% 2.7% 2.1% 2.3% 2.0% 1.7% 1.2% 0% -0.7% 2008 -2.4% 2009 -3.0% 2010 -4% Q1 Q2 Q3 Q4 © Zurich Financial Services Ltd February 10, 2011 Annual Results Reporting 2010 39
Slide 40: Development of Reserves for Losses and LAE
Development of Reserves for Losses and Loss Adjustment Expenses (LAE) in USD millions 2010 2009 Net reserves for losses and LAE, as of January 1 55,903 52,986 Net losses and LAE paid -23,240 -23,689 Net losses and LAE incurred 23,620 24,639 - Current year 24,987 25,698 - Prior years1 -1,367 -1,059 F
Slide 41: 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 2010 net loss ratios1 In the year 81.4% 70.6% 67.1% 68.3% 73.3% 69.6% 72.7% 74.6% 72.3% 73.5% 1 year later 85.7% 72.0% 66.1% 64.2% 68.1% 66.2% 71.7% 74.1% 72.0% 2 years later 85.8% 72.3% 6
Slide 42: Asbestos and environmental reserves
Asbestos and environmental reserves 2010 2009 Gross 3-year Gross 3-year reserves survival reserves survival USD m ratio USD m ratio Asbestos 3,408 26.32 3,604 29.62 General Insurance 2,967 3,116 34.1 of which: US 400 10.0 383 8.8 of which: UK 2,567 33.21 2,733 37.71 Non-Core Businesses 441 3.22 488
Slide 43: Global Life – Profit by Source (1/3)
Global Life – Business operating profit: Profit by Source (1/3) in USD millions Americas UK Germany for the years ended December 31 2010 2009 2010 2009 2010 2009 Net Expense margin -29 -27 -120 -126 88 -56 Net Risk margin 174 148 103 65 71 86 Net Investment margin 134 114 56 62 159 254 Other profit
Slide 44: Global Life – Profit by Source (2/3)
Global Life – Business operating profit: Profit by Source (2/3) in USD millions Switzerland Ireland Spain for the years ended December 31 2010 2009 2010 2009 2010 2009 Net Expense margin 19 12 -117 -84 21 22 Net Risk margin 106 95 58 58 55 59 Net Investment margin 128 150 20 20 81 83 Other profit ma
Slide 45: Global Life – Profit by Source (3/3)
Global Life – Business operating profit: Profit by Source (3/3) in USD millions Emerging Rest of World Total for the years ended December 31 Markets 2010 2009 2010 2009 2010 2009 Net Expense margin -19 -46 -66 -67 -223 -371 Net Risk margin 29 46 43 39 639 596 Net Investment margin -7 8 126 131 697 8
Slide 46: Global Life – new business by region/country
Global Life – new business by region/country in USD millions NBV2 NBV2 Change APE APE Change for the years ended December 31 2010 2009 in LC1 2010 2009 in LC1 Americas, of which 120 136 -11% 300 259 19% US 68 100 -32% 98 97 0% Latin America 52 36 48% 202 161 30% United Kingdom 145 95 54% 961 785 24%
Slide 47: Global Life – Embedded Value result
Global Life – Embedded Value result for the years ended December 31 2010 2010 2009 2009 USD m Return USD m Return Opening Embedded Value 16,752 12,818 New business value2 817 782 Expected contribution1,2 622 840 Operating variance2,3 135 299 Total operating earnings2 1,574 9.6% 1,921 14.9% Economic
Slide 48: Global Life - Assets under Management
Global Life - Assets under Management1 AuM increased due to market recovery and a positive development of net policyholder flows Split of AuM Development of AuM in USD billions in USD billions 222 214 Balance as of 25 Jan 1, 2010 214 25 Inflows +30 101 101 Outflows -25 Market move- 96 ments & other2
Slide 49: Farmers Management Services – key performance indicators
Farmers – Farmers Management Services – key performance indicators in USD millions 2010 2009 Change for the years ended December 311 Management fees and other related revenues 2,778 2,690 3% Management and other related expenses -1,440 -1,399 -3% Gross management result 1,338 1,291 4% Managed gross
Slide 50: Farmers Re – key performance indicators
Farmers – Farmers Re – key performance indicators in USD millions 2010 2009 Change for the years ended December 31 Gross written premiums 4,1941 6,6152 -37% Net underwriting result 134 58 131% Combined ratio 97.6% 99.0% 1.4pts CAT3 impact 3.6% 3.4% -0.2pts Business operating profit 321 228 41% © Zur
Slide 51: Farmers Exchanges – key performance indicators
Farmers Exchanges1 – key performance indicators in USD millions 2010 2009 Change for the years ended December 31 Gross written premiums 18,131 17,620 3% Net underwriting result2 289 284 2% Combined ratio2 98.7% 98.9% 0.2pts Adjusted combined ratio3 91.4% 91.3% -0.1pts CAT4 impact 4.7% 4.7% 0.0pts Su
Slide 52: Acquisition of 21st Century – Update
Acquisition of 21st Century1 – Update GWP by distribution channel (Direct vs Agency) GWP in Q4-10 of USD 437m reflects: 1000 Direct: levels rebounding – Agency Q4-10 shows higher new business 726 Direct GWP in USD m applications compared to previous 152 595 600 500 536 482 488 quarters despite resid
Slide 53: 21st Century - contribution
21st Century1 - contribution in USD millions 2010 2009 for the years ended December 311 Farmers Management Services: Management fees and other related revenues 344 214 Management and other related expenses -175 -112 Gross management result 169 102 Business operating profit 156 81 Farmers Exchanges:
Slide 54: Farmers Exchanges – financial highlights
Farmers Exchanges – financial highlights 50.0% 6'000 in USD millions 2010 2009 48.0% for the years ended December 31 5'000 46.0% Gross written premiums 18,131 17,620 44.0% 4'000 Net underwriting result1 289 284 42.0% 3'000 40.0% Net surplus growth2 (est.) 204 720 38.0% Ending surplus (est.) 5,959 5,
Slide 55: Farmers Exchanges – gross written premiums by line of business
Farmers Exchanges – gross written premiums by line of business in USD millions 2010 2009 Change for the years ended December 31 Auto1 9,550 8,964 6.5% Homeowners 4,511 4,621 -2.4% Commercial P&C 1,305 1,313 -0.6% Small Business Solutions 585 534 9.5% Workers’ Compensation 288 312 -7.7% Specialty 1,6
Slide 56: Farmers Exchanges – premium growth outperforming industry
Farmers Exchanges – premium growth outperforming industry GWP growth2 11% Industry Growth Rate1 10.1% 2009: -1.4% 9.1% 2010 Forecast: 2.0% 8% 6.5% 6% 6.1% 5.7% 5.7% 5.4% 5.4% 5.0% 5.1% 4.6% 4.7% 4.2% 4% 3.2%3.3% 3.1% 2.9% 2.2% 2% 1.8% 1.4% 0% © Zurich Financial Services Ltd 3M 6M 9M FY 3M 6M 9M FY 3
Slide 57: Farmers Exchanges – Policies in Force (1/2)
Farmers Exchanges – Policies in Force trend improving in 2010 (1/2) 2009 FY 2010 2010 in thousand policies Ending Change Ending # % Auto 9,468 -98 -1 9,370 Homeowners 5,315 -207 -4 5,109 Commercial P&C 351 8 2 359 Small Business Solutions 229 -19 -8 209 Workers’ Compensation 46 2 5 49 Specialty 2,71
Slide 58: Farmers Exchanges – Policies in Force (2/2)
Farmers Exchanges – Policies in Force Q4-10 shows improved trend (2/2) Sept 2010 Q4-10 2010 in thousand policies Ending Change Ending # % Auto 9,385 -15 0 9,370 Homeowners 5,139 -30 -1 5,109 Commercial P&C 357 2 1 359 Small Business Solutions 215 -6 -3 209 Workers’ Compensation 48 1 1 49 Specialty 2
Slide 59: Farmers Exchanges – combined ratio
Farmers Exchanges – combined ratio for the years ended December 31 20101 20091 Change Auto2 97.3% 96.8% -0.5pts Homeowners 100.4% 101.5% 1.1pts Commercial P&C 99.2% 94.9% -4.3pts Small Business Solutions 100.8% 103.9% 3.1pts Workers' Compensation 100.8% 99.2% -1.6pts Specialty 98.3% 103.5% 5.1pts To
Slide 60: Farmers Exchanges – development of the combined ratio
Farmers Exchanges – development of the combined ratio Quarterly combined ratio 120% Other Cats 115% Midwest Gustav 110% Cats California wildfires Ike 105% Other Rita California Cats Midwest Other wildfires CO/TX Cats Hail- Cats 100% Florida Texas storms hurricanes Katrina AZ Hail Hail Midwest 95% Ca
Slide 61: Competitor Snapshot - Overall
Competitor Snapshot - Overall December 2010 Growth vs. GAAP Combined Ratio – Overall P&C1, 4 September 2010 Industry6 Growth 100.9% FY10 Industry Forecast NPW %10 8 USAA4 6 Liberty Mutual4 GEICO5 4 Progressive State Farm4 Farmers incl. 21C2,3 Industry6 2 2.0% Travelers 0 Hartford Allstate Mercury 2
Slide 62: Other Operating and Non-Core Businesses – BOP contribution
Other Operating and Non-Core Businesses – Business operating profit contribution in USD millions 2010 2009 Change for the years ended December 31 Other Operating Businesses -801 -611 -31% Non-Core Businesses - Banking activities -307 -182 -69% - Centrally managed businesses 113 -279 nm - Centre 39 1
Slide 63: Risk allocation of Zurich's investment portfolio
Zurich’s investment portfolio benefits greatly from diversification and is balanced in terms of risk Risk Allocation of Zurich’s investment portfolio As of December 31, 2010 Asset allocation (%) Risk diversification Risk exposure (%)1 and matching (%) 100 Hedge Funds / Real Estate Private Equity 44
Slide 64: Debt securities of consistently high quality
Group Investments – Zurich’s debt securities are of consistently high quality (98.5% investment grade) As of December 31, 2010 Group Investments Debt securities USD 196bn USD 140bn credit rating: AAA 52.5% credit rating: AA Other Debt 98.5% 11.7% asset securities investment classes grade 28% 72% cre
Slide 65: Debt securities are well balanced
Group Investments – Zurich’s debt securities are well balanced Group Investments - USD 196bn (100%) As of December 31, 2010 Government and supranational bonds: USD 55bn (28%) Market/Cost1: 101% of which: 99% inv. grade 43%in General Insurance 71% AAA 48% in Global Life 10% AA 16% A 2%
Slide 66: Government & supranational bonds are well diversified
Group Investments – Government & supranational bonds are well diversified Group Investments - USD 196bn (100%) As of December 31, 2010 Government and supranational bonds: USD 55bn1 (28%) Market/Cost: 101% of which: 99% inv. grade 43% in General Insurance 71% AAA 48% in Global Life 10% AA
Slide 67: Eurozone Government & supranational bonds
Group Investments1 – Eurozone Government & supranational bonds are well diversified As of December 31, 2010 Eurozone Government and supranational bonds: USD 23bn (12%) Market/Cost: 99% of which: Split by credit rating 29% in General Insurance 100% inv. grade 70% in Global Life 45% AAA 16%
Slide 68: 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, 2010 Corporate bonds: USD 60bn (31%) Market/Cost: 102% Split by industries Split by credit rating 42% Banks, 99% inv. grade including 14.4%1 covered bonds 23% AAA 8% Citie
Slide 69: Banks Corporate bonds
Group Investments – Banks Corporate bonds are of high quality and well diversified Group Investments - USD 196bn (100%) As of December 31, 2010 Banks Corporate bonds: USD 25bn (13%) Market/Cost: 101% Split by seniority Split by credit rating 35% Covered bonds 99% inv. grade 50% Senior bonds
Slide 70: Split of total MBS/ABS of USD 25bn
Group Investments – Split of total MBS/ABS of USD 25bn (13%) MBS/ABS: USD 25bn (13%) Market/Cost: 102% Group Investments 97% inv. grade USD 196bn (100%) 84% AAA includes: US MBS: USD 16.1bn (8.2%) Market/Cost: 104% 96% inv. grade; 87% AAA Debt US ABS1: USD 4.1bn (2.1%) securities Market/Cost:
Slide 71: Split of US MBS of USD 16.1bn
Group Investments – Split of US MBS of USD 16.1bn (8.2%) Group Investments US-MBS: USD 16.1bn (8.2%) Market/Cost: 104% USD 196bn (100%) 96% inv. grade 87% AAA Debt of which: securities US “Agency” MBS: USD 9.9bn (5.1%) Market/Cost: 104% 72% 100% AAA USD 2.8bn backed by GNMA USD 7.0bn backe
Slide 72: 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 1250 1,230 500 750 579 4 515 0
Slide 73: 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 2,464 2500 1,822 1,768 1500 1,326 890 674 500 230 381 32 24 59 70 -169 -45 -500 -1500 -2500 Equity investments -3500 Debt investments -4,502 Other investm
Zurich Financial Services — FY2010 Earnings Presentation on 6ix