Swiss Re Ag · SIX:SREN
Swiss Re — Investor Presentation (June 2023)
24 slides from Swiss Re's investor presentation, Jun 15, 2023
Slide 1: Media Dialogue 2023
Media Dialogue 2023 P&C Re and L&H Re 15 June 2023
Slide 2: Welcome
Welcome Charlotte Nelson Lead Businesses Media Relations & Corporate Reporting
Slide 3: Agenda
Agenda Time (CEST) Topic Speakers 16:00 Welcome note and introduction Charlotte Nelson Lead Businesses, Media Relations Meet the new CEOs P&C Re and L&H Re Urs Baertschi CEO, P&C Reinsurance 40 minutes Presentations followed by Q&A Paul Murray CEO, L&H Reinsurance Focus topics P&C Re: Swiss Re’s app
Slide 4: Meet the new CEOs of P&C Re and L&H Re
Meet the new CEOs of P&C Re and L&H Re Urs Baertschi Paul Murray CEO P&C Re CEO L&H Re
Slide 5: New organisational structure P&C Re
New organisational structure P&C Re Property & Casualty Reinsurance Changes to P&C Re CEO • Removing organisational complexity to Urs Baertschi increase client focus and accountability SR: 17y | Industry: 24y • Simplicity and short decision paths to become easier to do business with CUO COO Gianfran
Slide 6: P&C Re remains committed to achieving its combined ratio target in a complex market environment
P&C Re remains committed to achieving its combined ratio target in a complex market environment 96.9% Elevated uncertainty and volatility <95% Higher interest rates Increasing natural catastrophe claims costs Elevated inflation levels Normalised1 Reported combined combined ratio ratio Growing reinsu
Slide 7: Closing natural catastrophe protection gaps is a growth opportunity
Closing natural catastrophe protection gaps is a growth opportunity. However, pricing needs to reflect the increasing risk. USD 150bn USD 125bn 5–7% uninsured natural catastrophe insured natural catastrophe p.a. insured natural losses in 2022 losses in 2022 catastrophe loss growth over last 30 years
Slide 8: New organisational structure L&H Re
New organisational structure L&H Re Life & Health Reinsurance Changes to L&H Re • Greater autonomy of market units for CEO Paul Murray enhanced empowerment and SR: 20y | Industry: 29y accountability Impact CUO COO • New structure makes us faster, bolder and Julien Descombes Grace Wong SR: 26y | Indu
Slide 9: Multiple tailwinds support the L&H business in growing revenues and increasing profits
Multiple tailwinds support the L&H business in growing revenues and increasing profits USD ~900m Subsiding COVID-19 mortality Growing reinsurance market USD 416m Higher interest rates Transition to IFRS17 US pre-2004 mortality drag US GAAP US GAAP net income net income Reducing cost ratio 2022 2023
Slide 10: Increased diversification across L&H Re lines of business and geographies
Increased diversification across L&H Re lines of business and geographies Economic profit1 in 2012 (inner circles) vs. average 2020–2022 (outer circles): Mortality Health Longevity USD USD USD 582m 408m 109m 1 EVM new business underwriting profit. Media Dialogue 2023 9
Slide 11: Q&A
Q&A Please raise your hand to ask a question.
Slide 12: Deep dive P&C Re
Deep dive P&C Re Gianfranco Lot Anne Lohbeck Chief Underwriting Officer Chief Underwriting Officer P&C Reinsurance Specialty, P&C Reinsurance
Slide 13: Hard market supports us in strengthening the natural catastrophe portfolio
Hard market supports us in strengthening the natural catastrophe portfolio USD 125bn 5–7% ~20% insured losses in 2022 p.a. insured loss growth increase in risk-adjusted over last 30 years price since 2017 Swiss Re supports our clients through: Risk insights Tools and solutions Natural catastrophe re
Slide 14: Cyber: data remains king
Cyber: data remains king The cyber risk landscape is evolving quickly and with digitalisation accelerating across the world, we are seeing and expecting cyber Cautious approach insurance to grow. Global cyber premiums Risk accumulation (USD bn) 23 19 Changing risk landscape 16 13 10 Investments in R
Slide 15: Specialty has grown and rebalanced since 2017, benefitting from our leading franchise
Specialty has grown and rebalanced since 2017, benefitting from our leading franchise • Stringent underwriting Engineering processes, bespoke technical skills required Agriculture • Global team with regional footprint Marine & Energy • Evolving risk landscape due to climate change impacting risk app
Slide 16: Specialty is driven by innovation and expertise
Specialty is driven by innovation • Infrastructure investments present significant growth opportunities and expertise • Accelerated energy transition timeline requires risk knowledge for renewables Key market trends such as infrastructure, food security and sustainability enable future growth opport
Slide 17: Q&A
Q&A Please raise your hand to ask a question.
Slide 18: Deep dive L&H Re
Deep dive L&H Re Julien Descombes Natalie Kelly Chief Underwriting Officer Head Global Underwriting, L&H Reinsurance Claims & R&D, L&H Reinsurance
Slide 19: COVID-19 is now endemic with a reduced claims burden in L&H Re
COVID-19 is now endemic … … with a reduced claims burden in L&H Re COVID-19 deaths in the US (k) Excess mortality (%) USD Total COVID-19-related 28 50% 26 3.5bn mortality claims paid by Swiss Re 2020–2022 24 40% 22 20 30% 18 16 20% 14 12 10 10% 8 6 0% 966 1953 588 4 2 -10% 2020 2022 2021 0 2020 2021
Slide 20: Swiss Re has been a pioneer in pandemic modelling since 2007
Swiss Re has been a pioneer in pandemic • Model developed in the modelling since 2007 wake of SARS in 2002 • Since its inception, the Viruses model has received Ability to spread, mutations, regulatory approval and is lethality regularly updated and Impact audited Impact on different age groups, inf
Slide 21: Life expectancy improvements slowed since 2010
Life expectancy improvements slowed • Historically, mortality since 2010 improvements have typically come in waves Life expectancy in years in selected markets • Improvements plateaued 85 since 2010, after advances in treating cardiovascular 80 diseases had peaked • COVID-19 resulted in a 75 tempora
Slide 22: Promising technologies for future medical advancements
Promising technologies for future Advanced technologies will • provide opportunities for medical advancements healthcare improvements, but uncertainty about timing is high Immunotherapy Obesity drugs mRNA Alzheimer’s/ • Drug breakthroughs vaccines dementia drugs around dementia and cancer are expect
Slide 23: Q&A
Q&A Please raise your hand to ask a question.
Slide 24: Thank you for your attention
Thank you for your attention. Contact us if you have any further questions. Follow us media_relations@swissre.com +41 43 285 71 71