Swiss Re Ag · SIX:SREN
Swiss Re — Q1 2024 Earnings Presentation
29 slides from Swiss Re's earnings presentation, May 16, 2024
Slide 1: First Quarter 2024 Results
First Quarter 2024 Results Swiss Re investor and analyst presentation Zurich, 16 May 2024
Slide 2: Strong Q1 2024 results, focus on achieving full-year financial targets
Strong Q1 2024 results, focus on achieving full-year financial targets Swiss Re Group Q1 2024 FY 2024 key figures targets 1 092 P&C Net income Reinsurance Combined ratio1 84.7% <87% (USD m) Corporate Solutions Combined ratio2 89.9% <93% L&H Reinsurance Net income (USD) 412m ~1.5bn Q1 2024 Return on
Slide 3: Favourable contributions from insurance and investment activities
Favourable contributions from insurance and investment activities Insurance revenue (USD bn) New business CSM (USD bn) Group net income (USD bn) 11.7 1.8 1.4 Insurance service result 5.0 P&C Reinsurance 1.4 P&C Reinsurance 1.1 1.1 Investment result 4.8 L&H Reinsurance -0.6 Insurance finance result C
Slide 4: Financial highlights
Financial highlights First Quarter 2024 Results 4
Slide 5: Key figures Q1 2024
Key figures Q1 2024 Corporate Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items Consolidation Q1 2024 • Insurance revenue 4 964 4 794 1 836 290 - 208 11 676 • Insurance service result 704 434 213 1 1 352 Combined ratio 84.7% 89.9% • Insurance finance result - 353 - 175 - 72 1
Slide 6: P&C Reinsurance benefits from underwriting discipline and improved price adequacy
P&C Reinsurance benefits from underwriting discipline and improved price adequacy Insurance revenue (USD bn) New business CSM (USD m) Insurance service result (USD m) Combined ratio1 (%) 5.0 1 442 84.7 4.9 Expense ratio2 2.1 Property 704 953 CSM release Loss and 79.8 commission ratio 1.9 Casualty 17
Slide 7: P&C Reinsurance achieved strong nominal price increases in year-to-date renewals
P&C Reinsurance achieved strong nominal price increases in year-to-date renewals Price change1 +10% Year-to-date renewals Higher loss assumptions +12% • ~65% of treaty business renewed USD bn Premium volume change +8% • +8% premium volume change 1.8 15.4 • +10% price increase, with rate increases mo
Slide 8: Year-to-date renewals feature targeted growth in property and specialty
Year-to-date renewals 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 Nat cat 2.7
Slide 9: Corporate Solutions continues to generate strong underwriting results
Corporate Solutions continues to generate strong underwriting results Insurance revenue (USD bn) New business CSM (USD m) Insurance service result (USD m) Combined ratio1 (%) 1.8 89.9 25.0 Expense ratio2 0.7 Property 213 287 Assumed 258 CSM release -16 0.7 Casualty 64.9 Loss ratio -303 Ceded 26 Chan
Slide 10: L&H Reinsurance with solid start to the year
L&H Reinsurance with solid start to the year Insurance revenue (USD bn) New business CSM (USD m) Insurance service result1 (USD m) Net income (USD m) 4.8 392 434 Insurance service result 434 412 423 CSM release2 409 Investment result 142 Changes in RA (current/past)3 -169 Experience variance, new bu
Slide 11: L&H Reinsurance new business CSM and interest accretion ahead of CSM release
L&H Reinsurance new business CSM and interest accretion ahead of CSM release CSM development (USD m) 146 392 -423 -95 -419 19 508 19 109 31 Dec 2023 New business CSM Interest accretion CSM release1 Change in assumptions Other including fx1 31 Mar 2024 • New business CSM driven by all regions, with t
Slide 12: Investment result continues to benefit from higher interest rate environment
Investment result continues to benefit from higher interest rate environment Asset allocation1 (USD bn) Recurring income yield (RIY) and ROI (%) RIY 3.9 107.0 107.1 ROI 4.0 10.8 11.2 0.3 Investment gains/losses 5.7 5.6 0.2 Other NII (incl. expenses) 42.1 39.6 Equities and alternatives Mortgages and
Slide 13: Additional information on Q1 2024
Additional information on Q1 2024 First Quarter 2024 Results 13
Slide 14: Financial statements Q1 2024: Income statement
Financial statements Q1 2024 Income statement Corporate Total USD m P&C Re L&H Re Solutions Group items Consolidation Q1 2024 Insurance revenue 4 964 4 794 1 836 290 -208 11 676 Insurance service expense -3 998 -3 904 -1 492 -284 242 -9 436 Insurance service result before reinsurance contracts held
Slide 15: Financial statements Q1 2024: Balance sheet
Financial statements Q1 2024 Balance sheet Corporate USD m P&C Re L&H Re Solutions Group items Consolidation 31 Mar 2024 31 Dec 2023 Cash and cash equivalents 2 308 459 629 482 - 3 878 4 555 Investments 64 551 33 288 9 758 3 265 -6 094 104 768 104 858 Fixed income securities 49 071 27 330 9 220 732
Slide 16: Shareholders' equity development and ROE calculation
Financial statements Q1 2024 Shareholders’ equity development and ROE calculation Total Shareholders’ equity development, USD m Q1 2024 Shareholders' equity at 31 December 2023 19 811 Net income attributable to common shareholders 1 092 Dividends 0 Change in unrealised gains/losses on investments -4
Slide 17: Investments: ROI Q1 2024
Investments ROI Q1 2024 Corporate Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items Consolidation Q1 2024 Investment result per income statement 701 409 145 66 -179 1 142 Less net investment income not included in ROI1 47 1 - - - 48 Less investment gains/losses not included in
Slide 18: Investments: breakdown of selected asset classes
Investments Breakdown of selected asset classes as of 31 Mar 2024 Fixed income securities Mortgages and loans Government Credit % USD m Total bonds bonds Total AAA 10 9 9 Net carrying value 5 828 AA 70 4 40 Fair value 5 590 A 11 34 21 BBB 3 46 23 <BBB 2 2 2 Equity and alternative investments Investm
Slide 19: FY 2023 comparatives
FY 2023 comparatives First Quarter 2024 Results 19
Slide 20: FY 2023 comparatives: Key figures
FY 2023 comparatives Key figures Corporate Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items Consolidation FY 2023 • Insurance revenue 20 308 16 921 7 528 994 -611 45 140 • Insurance service result 2 715 1 340 831 -225 4 661 Combined ratio 85.8% 90.9% • Insurance finance resul
Slide 21: FY 2023 comparatives: US GAAP vs. IFRS
FY 2023 comparatives US GAAP vs. IFRS Group P&C Reinsurance Corporate Solutions L&H Reinsurance Net income (USD bn) Combined ratio Combined ratio Net income (USD bn) 3.2 1.4 3.0 US GAAP 94.8% US GAAP 91.7% Change to IFRS Change to IFRS 1.0 5%pts 2-3%pts methodology1 methodology3 Discounting 8-9%pts
Slide 22: Financial statements FY 2023: Income statement
Financial statements FY 2023 Income statement Corporate Total USD m P&C Re L&H Re Solutions Group items Consolidation FY 2023 Insurance revenue 20 308 16 921 7 528 994 -611 45 140 Insurance service expense -16 254 -15 591 -5 785 -1 203 151 -38 682 Insurance service result before reinsurance contract
Slide 23: Financial statements FY 2023: Balance sheet
Financial statements FY 2023 Balance sheet Corporate USD m P&C Re L&H Re Solutions Group items Consolidation 31 Dec 2023 1 Jan 2023 Cash and cash equivalents 2 313 819 823 600 - 4 555 4 053 Investments 63 829 34 569 10 119 3 282 -6 941 104 858 101 288 Fixed income securities 47 635 28 009 9 497 670
Slide 24: Shareholders' equity development and ROE calculation FY 2023
Financial statements FY 2023 Shareholders’ equity development and ROE calculation Total Shareholders’ equity development, USD m FY 2023 Shareholders' equity at 1 January 2023 16 466 Net income attributable to common shareholders 3 042 Dividends -1 850 Change in unrealised gains/losses on investments
Slide 25: Glossary
Glossary CSM Contractual service margin, gross of tax, unless otherwise stated Expense ratio P&C Reinsurance: - directly attributable expenses / insurance revenue (net) Corporate Solutions: - (directly attributable expenses + commissions + non-directly attributable expenses) / insurance revenue (gro
Slide 26: Corporate calendar and contacts
Corporate calendar and contacts Corporate calendar 2024 22 August H1 2024 Results Conference call 14 November 9M 2024 Results Conference call 2025 27 February Annual Results 2024 Conference call 13 March Publication of Annual Report 2024 11 April 161st Annual General Meeting Zurich Investor Relation
Slide 27: First Quarter 2024 Results
First Quarter 2024 Results 27
Slide 28: 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 29: 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