Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — 20th Annual Banking, Insurance & Diversified Financials CEO Conference 2015
12 slides from Zurich Insurance's conference presentation, Sep 29, 2015
Slide 1: Zurich Insurance Group
Zurich Insurance Group Martin Senn, Chief Executive Officer September 29, 2015, London 20th Annual Banking, Insurance & Diversified Financials CEO Conference
Slide 2: General Insurance: Our view of GI has changed since H1 results
General Insurance Our view of GI has changed since H1 results DRIVERS OF ADVERSE EXPERIENCE GI Combined Ratio Details1 H1 results below expectations: ~108.5% 4.0% – Partly attributable to normal claims 96.7% 100.0% 3.5% volatility, such as major UK fire loss 3.4% 1.4% 99.5% – Global Corporate (GC)
Slide 3: Explaining General Insurance results
Explaining General Insurance results Identifying causes of recent underperformance WALK FROM FY-14 NORMALIZED CR TO EXPECTED 9M-15 Preliminary and approximated view, subject to change 9M combined ratio estimated to be 0.5% -0.75% 0.5% ~102% ~3.5pts higher than the adjusted 2014 3.0% starting point
Slide 4: Clear path to address profitability challenges
Clear path to address profitability challenges Review followed by immediate implementation of actions FURTHER PROFITABILITY IMPROVEMENTS NEEDED Review of GI business underway, results to be announced on 5 November Preliminary view of key actions: – Implement targeted measures in Underwriting and
Slide 5: Global Life
Global Life On track with the goals we set out in 2013 EXECUTING CLEAR AND FOCUSED LIFE INSURANCE STRATEGY Global Life BOP (USDm) Clear line of sight to >USD 50m BOP 4061 3601 improvement per quarter 319 315 331 308 319 355 In-force management achieved USD 33m of run-rate BOP improvement in 2014
Slide 6: Farmers
Farmers1 Back to growth and executing on omni-channel approach IMPROVED NET PROMOTER SCORE DRIVES GROWTH AT FARMERS EXCHANGES1 Farmers Exchanges1 Net Promoter Score (%)2 Consumer strategy focuses on value 38.7 conscious customers 37.6 34.4 34.4 35.0 33.3 Evolving into a modern exclusive agency m
Slide 7: Improving efficiency
Improving efficiency Aim to achieve at least USD 1bn underlying savings1 by end 2018 EXPECTED UNDERLYING SAVINGS BY END 2018 (USDbn) Total >1.0 Baseline general expenses2 of ~USD 10bn in 2014 encompassing support functions, information technology, claims handling, Shared Services & marketing, etc.
Slide 8: Strong capital position & cash generation
Strong capital position & cash generation USD 3bn of capital to be deployed by end of 2016 CONSISTENTLY STRONG SOLVENCY POSITION Z-ECM1 Z-ECM at 120% as of end-March, top-end 127% 126% 130% 119% 121% 122% 120% of target range 120% 114% 110% 110% 103% 100% Efficient use of capital is key to achie
Slide 9: We remain committed to delivering the 12-14% ROE target
We remain committed to delivering the 12-14% ROE target BOPAT ROE (%) >12% 11.6% -1.2% >1% -0.3 1.0% 10.4% Other USD 3bn by businesses end 2016 fairly flat HY-15 Normalise cat Adjusted GI profit Other businesses Growth in Investment at 20161 losses, exclude HY-15 improvement average 10% return OOB F
Slide 10: Key messages
Key messages General Disappointing General Insurance underwriting results, review Insurance underway to define actions required Global Life Global Life and Farmers on track & Farmers Operations Achieve at least USD 1bn cost savings by end 2018 Capital Strong capital position with USD 3bn to deploy b
Slide 11: 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’).
Slide 12: For further information
For further information CALL US VISIT OR FOLLOW US Investor Relations James Quin +41 44 625 21 10 Aaron Beharelle +41 44 625 25 50 André Meier +41 44 625 37 75 Gianni Vitale +41 44 625 48 26 Rating Agency Management Michèle Matlock +41 44 625 28 50 www.zurich.com Events Patricia Heina +41 44 625 38