Slide 1: Third quarter 2016 results
Third quarter 2016 results Investor and analyst presentation Zurich, 3 November 2016 We make the world more resilient.
Slide 2: All Business Units contributed to Swiss Re's strong Q3 2016 results
All Business Units contributed to Swiss Re’s strong Q3 2016 results • Swiss Re reports third quarter net income of USD 1.2bn, supported by solid underwriting and strong investment results; ROE of 12.8% • P&C Reinsurance delivers strong results with net income of USD 678m; ROE of 21.6% • L&H Reinsura
Slide 3: Key figures
Key figures Corporate Life Group Total Total Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Capital items Q3 2016 Q3 2015 9M 2016 9M 2015 • Gross premiums written 4 162 2 958 1 060 298 - 8 299 7 815 28 097 25 261 • Premiums earned and fee income 4 623 2 820 854 307 - 8 604 7 849
Slide 4: P&C Reinsurance delivers strong results in a difficult market environment
P&C Reinsurance delivers strong results in a difficult market environment 9M Q3 Gross premiums written EBIT Net income H1 20 000 USD m USD m USD m 18 000 15 286 14 099 14 015 13 400 3 203 3 000 16 000 3 088 2 239 2 385 2 298 14 000 4 162 3 500 2 780 2 500 12 000 3 711 3 687 3 750 3 000 2 183 1 548 1
Slide 5: L&H Reinsurance continues to deliver good results
L&H Reinsurance continues to deliver good results 9M Q3 Gross premiums written EBIT Net income 16 000 H1 USD m USD m 1 264 USD m 14 000 1 400 900 781 9 544 1 073 9 392 635 12 000 800 8 866 1 200 951 8 311 423 700 272 10 000 1 000 744 369 420 600 8 000 3 048 2 958 185 218 2 691 2 932 800 500 6 000 60
Slide 6: Corporate Solutions delivers solid results in a challenging market
Corporate Solutions delivers solid results in a challenging market 9M Q3 Gross premiums written1 EBIT Net income H1 USD m USD m USD m 487 337 4 000 400 2 949 2 814 2 695 2 707 3 500 350 500 373 249 227 89 450 325 128 3 000 300 400 1 150 2 500 1 031 250 1 031 350 1 217 156 103 150 96 71 2 000 300 168
Slide 7: Life Capital achieves a strong performance
Life Capital achieves a strong performance 9M Q3 Gross premiums written EBIT Net income H1 1 184 1 400 USD m USD m USD m 1 200 1 041 1 000 888 800 726 924 298 900 700 157 1 000 272 800 171 644 600 800 247 700 338 500 600 600 197 500 343 294 400 273 886 275 219 717 400 400 769 300 151 23 569 677 300
Slide 8: Group investment portfolio maintains strong track record despite a challenging yield environment
Group investment portfolio maintains strong track record despite a challenging yield environment Return on investments 9M Average invested assets Running yield Q3 USD bn, basis for ROI calculation 114.8 115.3 117.1 108.4 3.5% 3.5% 3.5% 3.2% 3.3% 3.2% 3.0% 2.8% 111.6 116.9 120.5 104.9 (9M: 3.6%) (9M:
Slide 9: Increase in common shareholders' equity driven by net income and unrealised gains
Increase in common shareholders' equity driven by net income and unrealised gains Gov bonds 0.1 Corp bonds 1.1 USD m Sec products 0.0 Equities and others -0.1 Tax -0.2 949 - 505 1 175 37 430 35 811 Common shareholders' Net income Net change in Other 2 Common shareholders' equity attributable to unre
Slide 10: Swiss Re's innovative solutions for sustainability are widely recognised
Swiss Re’s innovative solutions for sustainability are widely recognised Sustainability performance highlights External recognition Business solutions • Innovator in climate risk transfer solutions as DJSI Insurance Industry Leader demonstrated again by launching two parametric for the tenth time si
Slide 11: Appendix
Appendix • Business segment results Q3 2016 – Income statement • Business segment results Q3 2016 – Balance sheet • Total equity and ROE Q3 2016 • P&C Reinsurance – Underwriting performance • Corporate Solutions – Underwriting performance • Return on investments (ROI) • Overall investment portfolio
Slide 12: Business segment results Q3 2016 - Income statement
Business segment results Q3 2016 Income statement Re- Corporate Life Group Consoli- Total Total Total USD m insurance P&C Re L&H Re Solutions Capital items dation Q3 2016 Q3 2015 9M 2016 Revenues Gross premiums written 7 120 4 162 2 958 1 060 298 - -179 8 299 7 815 28 097 Net premiums written 6 781
Slide 13: Business segment results Q3 2016 - Balance sheet
Business segment results Q3 2016 Balance sheet Re- Corporate Life Group Consoli- End End 30 September 2016, USD m insurance P&C Re L&H Re Solutions Capital items dation Q3 2016 Q2 2016 Assets Fixed income securities 67 141 35 028 32 113 5 971 27 889 12 - 101 013 100 539 Equity securities 2 543 1 693
Slide 14: Total equity and ROE Q3 2016
Total equity and ROE Q3 2016 Re- Corporate Group Total1 Total1 USD m insurance P&C Re L&H Re Solutions Life Capital items Q3 2016 9M 2016 Common shareholders' equity2 at 31 December 2015 18 819 12 995 5 824 2 279 4 947 6 373 32 415 Common shareholders' equity2 at 30 June 2016 19 804 12 431 7 373 2 2
Slide 15: P&C Reinsurance Underwriting performance
P&C Reinsurance Underwriting performance Combined ratio Main drivers of change Net Under- Combined premiums writing ratio earned result Q3 2016 Q3 2016 Q3 2015 Q3 2016 USD m USD m 9M 2016 Property 63.4% 74.9% • Both periods benefited from benign nat cat; Q3 1 912 480 86.8% 2016 impacted by various a
Slide 16: Corporate Solutions Underwriting performance
Corporate Solutions Underwriting performance Combined ratio Main drivers of change Net Under- Combined premiums writing ratio earned result Q3 2016 Q3 2016 Q3 2015 Q3 2016 USD m USD m 9M 2016 Property 49.6% 77.4% • Q3 2016 impacted by a large fire loss in 288 65 82.1% North America and lower favoura
Slide 17: Return on investments (ROI)
Return on investments (ROI) Total Total Total Corporate Life Group Consoli- Q3 Q3 9M USD m P&C Re L&H Re Solutions Capital items dation 2016 2015 2016 Investment related net investment income 193 276 41 236 79 -33 792 716 2 352 Fixed income 177 262 34 228 1 - 702 630 2 117 Equities and alternative i
Slide 18: Overall investment portfolio
Overall investment portfolio Other investments Mortgages and incl. policy loans Cash and cash other loans 7% equivalents 3% 5% End Short-term Equities investments USD bn Q3 2016 8% 5% Balance sheet values 174.8 Securitised products Unit-linked investments -29.4 4% With-profit business -5.7 Governmen
Slide 19: Fixed income securities
Fixed income securities Government Credit • Increase in government bonds, in USD m bonds bonds part driven by lower interest End rates in the UK Q2 2016 52 572 47 967 End • Credit bonds include corporate Q3 2016 53 223 47 790 bonds (USD 42.3bn) and securitised products (USD 5.5bn) • Decrease in cred
Slide 20: Equities and alternative investments
Equities and alternative investments Equity securities Exchange-traded funds by sector Non-Cyclical Consumer Goods End End 2% 2% 2% 1% Financials USD m Q2 2016 Q3 2016 3% Information Technology 5% Equity securities 3 503 3 291 General Industrials 6% Cyclical Services Private equity 1 466 1 429 46% R
Slide 21: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2016 2 December Investors’ Day Zurich 2017 23 February Annual Results 2016 Conference call 16 March Publication of Annual Report 2016 and EVM 2016 21 April 153rd Annual General Meeting Zurich 4 May First Quarter 2016 Results Conference call Investor R
Slide 22: 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 an