Swiss Re Ag · SIX:SREN
Swiss Re — Q3 2015 Earnings Presentation
23 slides from Swiss Re's earnings presentation, Oct 29, 2015
Slide 1: Third quarter 2015 results
Third quarter 2015 results Investor and analyst presentation Zurich, 29 October 2015
Slide 2: All Business Units contributed to Swiss Re's very strong Q3 2015 results
All Business Units contributed to Swiss Re's very strong Q3 2015 results • Swiss Re reports third quarter net income of USD 1.4bn, continuing our track record of solid underwriting and investment results; ROE of 17.3% • P&C Reinsurance delivers very strong net income of USD 1.0bn; ROE of 34.4% • L&H
Slide 3: Key figures
Key figures Corporate Admin Group Total Total Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Re® items Q3 2015 Q3 2014 9M 2015 9M 2014 • Premiums earned and fee income 4 108 2 771 796 174 - 7 849 8 312 22 555 23 423 • Net income/loss 1 013 268 85 21 12 1 399 1 227 3 659 3 255 • R
Slide 4: P&C Reinsurance delivers very strong results
P&C Reinsurance delivers very strong results Net premiums earned Combined ratio Net income USD m % USD m 9M Q3 H1 11 678 11 378 76.7% 2 385 2 274 ROE: 23.3% (9M: 82.7%) 78.0% 4 305 4 108 842 ROE: (9M: 84.8%) 1 013 34.4% 7 373 7 270 1 543 1 261 2014 2015 2014 2015 2014 2015 • At constant fx rates pre
Slide 5: L&H Reinsurance is well on track to achieve its ROE target
L&H Reinsurance is well on track to achieve its ROE target Premiums earned and fees Operating margin Net income USD m % USD m 9M Q3 8 440 11.3% 8 091 (9M: 10.7%) ROE: H1 17.0% 763 2 873 2 771 9.2% 268 ROE: 18.5% (9M: 8.8%) 272 5 567 5 320 495 160 2014 2015 2014 2015 2014 112 2015 • At constant fx ra
Slide 6: Corporate Solutions manages the cycle and continues to deliver good results
Corporate Solutions manages the cycle and continues to deliver good results Net premiums earned Combined ratio Net income USD m % USD m 9M Q3 ROE: 2 574 324 18.7% H1 2 521 90.5% 90.7% 249 85 ROE: 903 796 (9M: 92.9%) (9M: 91.9%) 15.0% 103 1 671 1 725 239 146 2014 2015 2014 2015 2014 2015 • Q3 2015 ne
Slide 7: Admin Re® generates strong gross cash
Admin Re® generates strong gross cash Gross cash generation Return on investments Net income USD m % USD m 9M ROE: Q3 615 5.2% 270 6.1% H1 (9M: 5.0%) 142 4.2% 219 21 ROE: 1.5% (9M: 4.8%) 54 265 249 473 126 165 2014 139 2015 2014 2015 2014 2015 • Underlying Q3 2015 gross cash • Q3 2015 ROI of 4.2% pr
Slide 8: Group investment portfolio produces a solid result
Group investment portfolio produces a solid result Average invested assets Return on investments Total return USD bn, basis for ROI calculation % % 9M Q3 3.5% 5.2% (9M: 3.7%) (9M: 7.1%) 115.3 108.4 3.2% 116.9 (9M: 3.8%) 104.9 1.7% (9M: 0.4%) 2014 2015 2014 2015 2014 2015 • Decrease in average invest
Slide 9: Increase in common shareholders' equity driven by net income
Increase in common shareholders' equity driven by net income Gov bonds 0.4 USD m Corp bonds -0.2 Sec products 0.0 Equities and others -0.6 Tax 0.0 Total -0.4 -425 1 399 -551 32 624 32 201 Common shareholders' Net income Net change in Other 2 Common shareholders' equity attributable to unrealised equ
Slide 10: Swiss Re is recognised for creating solutions for sustainability
Swiss Re is recognised for creating solutions for sustainability • Swiss Re named sector leader in 2015 Dow Jones Sustainability Indices. Swiss Re has led these rankings nine times since 2004 • Signatory of the UN Global Compact, UN Principles for Sustainable Insurance (PSI) and UN Principles for Re
Slide 11: On track to meet our 2011-2015 Group financial targets
On track to meet our 2011-2015 Group financial targets ROE 700 bps above risk free EPS 10% average annual ENW per share growth plus average over 5 years (2011- growth rate, adjusted for dividends 10% avg. annual 2015) special dividends1 growth rate over 5 years 144.5 in % in USD2 in USD 135.7 140.9
Slide 12: Appendix
Appendix • Business segment results Q3 2015 – Income statement • Business segment results Q3 2015 – Balance sheet • Total equity and ROE Q3 2015 • P&C Reinsurance – Underwriting performance • Corporate Solutions – Underwriting performance • Return on investments (ROI) • Overall investment portfolio
Slide 13: Business segment results Q3 2015 - Income statement
Business segment results Q3 2015 Income statement Re- Corporate Admin Group Consoli- Total Total Total USD m insurance P&C Re L&H Re Solutions Re® items dation Q3 2015 Q3 2014 9M 2015 Revenues Premiums earned 6 869 4 108 2 761 796 98 - - 7 763 8 184 22 229 Fee income from policyholders 10 - 10 - 76
Slide 14: Business segment results Q3 2015 - Balance sheet
Business segment results Q3 2015 Balance sheet Re- Corporate Admin Group Consoli- End End 30 September 2015, USD m insurance P&C Re L&H Re Solutions Re® items dation Q3 2015 Q2 2015 Assets Fixed income securities 62 636 32 811 29 825 6 084 16 218 19 - 84 957 84 871 Equity securities 3 237 2 338 899
Slide 15: Total equity and ROE Q3 2015
Total equity and ROE Q3 2015 Re- Corporate Admin Group Total1 Total1 USD m insurance P&C Re L&H Re Solutions Re® items Q3 2015 9M 2015 2 Common shareholders' equity at 31 December 2014 20 025 13 859 6 166 2 334 6 388 6 085 34 828 Common shareholders' equity2 at 30 June 2015 17 129 11 379 5 750 2 257
Slide 16: P&C Reinsurance - Underwriting performance
P&C Reinsurance Underwriting performance Combined ratios in %, premiums and underwriting result in USD m Net Under- Q3 Q3 premiums writing 9M 2014 2015 Main drivers of change earned result 2015 Property 60.8% 63.7% • Increase primarily driven by explosion in Tianjin, 1 820 661 72.9% China, and less
Slide 17: Corporate Solutions - Underwriting performance
Corporate Solutions Underwriting performance Combined ratios in %, premiums and underwriting result in USD m Net Under- Q3 Q3 premiums writing 9M 2014 2015 Main drivers of change earned result 2015 Property 64.7% 50.0% • No major natural catastrophe loss in either 278 139 71.3% period; Q3 2015 drive
Slide 18: Return on investments (ROI)
Return on investments (ROI) Corporate Admin Group Consoli- Total Total Total USD m P&C Re L&H Re Solutions Re® items dation Q3 2015 Q3 2014 9M 2015 Investment related net investment income 246 272 38 158 3 -1 716 837 2 234 Fixed income 183 264 33 150 - - 630 696 1 903 Equities and alternative invest
Slide 19: Overall investment portfolio
Overall investment portfolio Other Cash and Mortgages and investments cash other loans incl. policy equivalents 3% loans 4% Short-term End Equities 7% investments 7% USD bn Q3 2015 7% Balance sheet values 147.0 Securitised Unit-linked investments -26.2 products Government 5% bonds With-profit busine
Slide 20: Fixed income securities
Fixed income securities Government Credit • Decrease in government USD m bonds bonds End bonds driven by net sales, in Q2 2015 48 956 35 915 part to fund purchases of End 47 349 37 608 corporate bonds Q3 2015 • Credit bonds include corporate bonds (USD 1% 32.1bn) and securitised 2% 2% 6% products (U
Slide 21: Equities and alternative investments
Equities and alternative investments Equity securities Exchange-traded funds by sector Non-Cyclical Consumer Goods End End USD m Q2 2015 Q3 2015 2% 2% 1% Information Technology 3% 4% Financials Equity securities1 4 067 4 192 6% Cyclical Services 39% Private equity1 1 646 1 645 6% General Industrials
Slide 22: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2015 8 December Investors' Day Rüschlikon 2016 23 February Annual Results 2015 Conference call 16 March Publication of Annual Report 2015 and EVM 2015 22 April 152nd Annual General Meeting Zurich 29 April First Quarter 2016 Results Conference call Inv
Slide 23: 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