Swiss Re Ag · SIX:SREN
Swiss Re — Q1 2022 Earnings Presentation
27 slides from Swiss Re's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Results
First Quarter 2022 Results Swiss Re investor and analyst presentation Zurich, 5 May 2022
Slide 2: Robust underwriting results key to navigating a challenging first quarter
Robust underwriting results key to navigating a challenging first quarter Swiss Re Group Net income/loss (USD m) Q1 2022 key figures 2022 targets 99.3% Combined ratio P&C +4.0% Reinsurance 96.9% <94% 333 Premium1 Normalised3 Normalised3 growth combined ratio combined ratio L&H -230m ~300m Reinsuranc
Slide 3: Both P&C businesses remain focused on achieving 2022 combined ratio targets
Both P&C businesses remain focused on achieving 2022 combined ratio targets P&C Reinsurance – combined ratio Corporate Solutions – combined ratio Reported Normalised1 Reported 125% 125% 120% 120% 115% 115% Combined ratio Combined ratio 110% 110% 105% 105% 99.3% 100% 100% 95.2% 95% 96.9% 95% 90% 90%
Slide 4: L&H Reinsurance impacted by COVID-19 pandemic in the US in Q1 2022
L&H Reinsurance impacted by COVID-19 pandemic in the US in Q1 2022 United States – COVID-19 losses vs. excess mortality COVID-19 700 45 Excess losses 40 mortality1 600 (US GAAP, 35 (%) USD m) 500 30 25 400 20 All ages Incurred 300 15 10 Data not Reported 200 5 Excess mortality > 0% complete 100 0 -5
Slide 5: P&C Reinsurance achieved attractive growth and price increases in YTD renewals
P&C Reinsurance achieved attractive growth and price increases in YTD renewals Price change1 +3% • Combined ratio will benefit from Higher loss assumptions -3% portfolio mix improvements (~1%pt) USD bn • Higher interest rates will further Premium volume change +8% improve profitability (~1%pt on 1.1
Slide 6: YTD renewals reflect continued focus on underwriting quality and selective growth
YTD renewals reflect continued focus on underwriting quality and selective growth Gross premium volume by line of business1 (USD bn) Gross premium volume by region1 (USD bn) Up for Premium Estimated Net price Up for Premium Estimated renewal YTD change outcome YTD change3 renewal YTD change outcome
Slide 7: Financial highlights
Financial highlights 7
Slide 8: Key figures
Key figures Corporate Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items Q1 2022 Q1 2021 • Premiums earned and fee income 5 300 3 814 1 389 117 10 620 10 212 • Net income/loss 85 - 230 81 - 184 - 248 333 • Return on investments 0.5% 2.3% 0.5% -11.2% 0.7% 3.5% • Combined r
Slide 9: Robust underwriting results in P&C Reinsurance partially offset reserves related to the war in Ukraine
Robust underwriting results in P&C Reinsurance partially offset reserves related to the war in Ukraine and elevated nat cat losses Net premiums earned Net operating margin1 (%) Combined ratio (%) 110.3 110.8 -8.9pts 99.3 95.6 96.6 12.2 93.3 92.0 USD 5.3bn 8.6 3.3 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2
Slide 10: L&H Reinsurance still impacted by COVID-19
L&H Reinsurance still impacted by COVID-19 Net premiums earned Net operating margin1 (%) Recurring income yield2 and ROI (%) and fee income 3.5 3.4 3.3 3.4 3.1 -1.4pts 2.8 2.8 5.0 3.6 4.1 3.4 3.4 3.2 10.1 2.3 USD 3.8bn 8.0 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 in Q1 2022 Recurring
Slide 11: Corporate Solutions' strong portfolio quality offset reserves related to the war in Ukraine and nat cat events
Corporate Solutions’ strong portfolio quality offset reserves related to the war in Ukraine and nat cat events Net premiums earned Net operating margin1 (%) Combined ratio (%) 120.6 116.3 -1.9pts 99.6 100.2 10.0 96.0 95.2 8.1 90.4 USD 1.4bn in Q1 2022 19.2 18.0 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 202
Slide 12: Investment result impacted by global equity market decline
Investment result impacted by global equity market decline Return on investments (ROI) Investment portfolio positioning (USD bn) Net investment income (USD m) Recurring income yield2 (%) 119.3 0.3 114.0 14.5 0.4 3.0 2.9 2.9 13.7 2.8 0.7% 2.5 848 2.1 2.1 45.3 42.9 795 774 in Q1 2022 712 126 103 55 46
Slide 13: Appendix
Appendix 13
Slide 14: Business segment results Q1 2022
Business segment results Q1 2022 Income statement Corporate Total Total USD m Reinsurance P&C Re L&H Re Solutions Group items Consolidation Q1 2022 Q1 2021 Revenues Gross premiums written 12 657 8 471 4 186 2 615 233 -410 15 095 13 895 Net premiums written 11 892 8 062 3 830 1 939 106 - 13 937 12 99
Slide 15: Business segment results Q1 2022
Business segment results Q1 2022 Balance sheet Corporate End End 31 March 2022, USD m Reinsurance P&C Re L&H Re Solutions Group items Consolidation Q1 2022 FY 2021 Assets Fixed income securities 72 741 41 795 30 946 9 353 425 - 82 519 86 985 Equity securities 2 191 1 842 349 242 588 - 3 021 3 978 Ot
Slide 16: Total equity and ROE Q1 2022
Total equity and ROE Q1 2022 Total USD m Q1 2022 Opening shareholders’ equity 23 568 Net income attributable to shareholders - 248 Dividends and share buyback - Capital contributions - Net change in unrealised gains/losses -3 867 Other (incl. fx) 409 Closing shareholders' equity 19 862 Non-controlli
Slide 17: Change in shareholders' equity mainly driven by net unrealised investment losses
Change in shareholders' equity mainly driven by net unrealised investment losses USD m Gov bonds -2.6 Corp bonds -2.2 Sec products -0.1 Tax 1.0 - 248 23 568 -3 867 409 19 862 1 Shareholders' Net income Net change in Other Shareholders' equity attributable to shareholders unrealised equity 31 Decembe
Slide 18: P&C underwriting performance
P&C underwriting performance P&C Reinsurance and Corporate Solutions Combined ratio Main drivers of change Net premiums earned Q1 2022 P&C Reinsurance Q1 2021 Q1 2022 USD m Property 91.7% 96.6% • Result supported by strong underlying profitability, partially offset by elevated large nat cat losses,
Slide 19: P&C combined ratio split
P&C combined ratio split P&C Reinsurance and Corporate Solutions P&C Reinsurance (%) Corporate Solutions (%) 96.0 96.6 99.3 1.6 95.2 100 0.9 2.9 100 9.1 9.3 6.3 8.5 3.3 0.3 0.4 6.0 0.0 1.2 5.4 5.3 16.4 80 80 13.8 25.6 23.3 11.5 13.1 60 60 40 40 57.4 59.3 64.3 58.0 20 20 0 0 -5.9 -10.2 -20 -20 Q1 202
Slide 20: Return on investments (ROI)
Return on investments (ROI) Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation Q1 2022 Q1 2021 Investment related net investment income 221 238 32 18 -42 467 626 Fixed income 159 239 36 3 - 437 443 Equities and alternative investments – incl. RE, PE, HF 81 - 2 -8 - 75 237
Slide 21: Overall investment portfolio
Overall investment portfolio Other investments (incl. policy loans) Cash and cash equivalents Short-term investments Mortgages and other loans 8% 5% 3% 7% Equities 7% 38% 32% Government bonds Credit bonds Corporate End End USD bn P&C Re L&H Re Solutions Group items Consolidation Q1 2022 FY 2021 Cash
Slide 22: Fixed income securities
Fixed income securities Government Credit USD m bonds bonds End FY 2021 47 205 39 780 End Q1 2022 44 956 37 563 • Decrease in fixed income reflects the impact of rising interest rates as well as credit spread widening, partially offset by net purchases 3% 5% • Credit bonds include corporate bonds (U
Slide 23: Equities and alternative investments
Equities and alternative investments Equity securities ETF, excl fixed income by sector Non-Cyclical consumer goods End End 1% 1% Information technology 2% 1% USD m FY 2021 Q1 2022 3% 1% Financials 5% 30% Cyclical services Equity securities 2 739 2 461 11% General industrials Private equity 3 054 3
Slide 24: Corporate calendar and contacts
Corporate calendar and contacts Corporate calendar 2022 29 July H1 2022 Results Conference call 28 October 9M 2022 Results Conference call Investor Relations contacts Hotline E-mail +41 43 285 4444 Investor_Relations@swissre.com Thomas Bohun Daniel Bischof +41 43 285 8118 +41 43 285 4635 Marcel Fuch
Slide 25: First Quarter 2022 Results
First Quarter 2022 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 ©2022 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