Slide 1: Annual Results 2021
Annual Results 2021 Swiss Re Media Conference Presentation Zurich, 25 February 2022
Slide 2: Focus areas of Annual Results 2021
Focus areas of Annual Results 2021 FY 2021 Outlook & Leadership in results financial targets sustainability Annual Results 2021 2
Slide 3: Solid turnaround in financial results achieved in 2021
Solid turnaround in financial results achieved in 2021 Swiss Re Group Net income/loss (USD bn) FY 2021 key figures FY 2021 segment view +4.8% P&C Reinsurance 97.1% Premium1 growth Combined ratio 1.4 L&H Reinsurance -8.6% 3.2% Return on equity Return on investments Corporate Solutions 90.6% Combined
Slide 4: 2021 results still heavily impacted by COVID-19 losses
2021 results still heavily impacted by COVID-19 losses USD USD USD 1.4bn 2.0bn 3.0bn Net income (pre-tax) Net income reported COVID-19 impact excl. COVID-191 P&C L&H – rest of world L&H – US 1 Excludes losses related to COVID-19 and the associated estimated tax impacts Annual Results 2021 4
Slide 5: L&H Reinsurance impacted by the peak of the COVID-19 pandemic in 2021
L&H Reinsurance impacted by the peak of the COVID-19 pandemic in 2021 United States – COVID-19 losses vs. excess mortality COVID-19 700 80 Excess losses 600 70 mortality1 (US GAAP, 60 (%) USD m) 500 50 Total 400 40 (all ages) Incurred 300 30 Age 25- 20 64 years Reported 200 10 Data not 100 Excess mo
Slide 6: Increased new business margins in response to COVID-19 related losses
Increased new business margins in response to COVID-19 related losses USD • Our pandemic risk model anticipated the occurrence of a global pandemic every ~30 years 180m • As a result, we incorporated an annual pandemic mortality risk charge of approx. USD 180m1 per Annual pandemic annum across our p
Slide 7: L&H Reinsurance remains a powerful franchise
L&H Reinsurance remains a powerful franchise, supported by resilient new business profit generation L&H Reinsurance – economic new business profit1 2015 2021 USD 0.7bn USD 1.3bn1 • Economic new business profits averaged USD >1bn per annum over the past 7 years, increasing the attractiveness of the i
Slide 8: P&C Reinsurance delivered strong underwriting profitability in 2021
P&C Reinsurance delivered strong underwriting profitability in 2021 P&C Reinsurance – combined ratio Reported Normalised1 112% 110% Targeted underwriting actions2 taken in 2021 108% USD 2bn capacity reduction in property aggregate and 106% frequency covers vs. 2020 104% 102% 100% >60% exposure reduc
Slide 9: Corporate Solutions' turnaround has secured attractive underwriting margins
Corporate Solutions’ turnaround has secured attractive underwriting margins in 2021 Corporate Solutions – combined ratio Reported Normalised1 135% 2021 transformation agenda successfully completed 130% 125% 120% ~20% of portfolio is pruned vs. 2018 115% 110% >40% of cumulative price increases since
Slide 10: P&C Reinsurance achieved attractive growth and price increases in the January renewals
P&C Reinsurance achieved attractive growth and price increases in the January renewals Price change1 +4% • Combined ratio will benefit from Higher loss assumptions -4% portfolio mix improvements (~1%pt) USD bn • Higher interest rates will further Premium volume change +6% improve profitability (~1%p
Slide 11: January renewals reflect continued focus on underwriting quality
January 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 Jan change outcome Jan change3 renewal Jan change outc
Slide 12: We propose a stable dividend based on a very strong capital position
We propose a stable dividend based on a very strong capital position and positive earnings outlook CHF 5.90 regular dividend per share1 Swiss Re’s capital management priorities remain unchanged (CHF per share, year paid) 5.90 5.90 Ensure superior capitalisation Grow the regular dividend at all times
Slide 13: We aim to achieve a 2024 US GAAP ROE of 14%
We aim to achieve a 2024 US GAAP ROE of 14% Profitable growth Earn-through of combined with cost Reduced drag from L&H Re higher under- discipline 14.0% COVID-19 writing margins pre-2004 US book normalisation 5.7% Reported US GAAP IFRS US GAAP ROE ROE ROE1 2021 2024 1 As of 2024 Swiss Re Group will
Slide 14: Overview of financial targets
Overview of financial targets FY 2022 targets Multi-year targets – Swiss Re Group P&C <94% Reinsurance normalised1 combined ratio 14% Return on equity3 L&H ~300m in 2024 Reinsurance net income (USD)2 Corporate <95% Solutions reported combined ratio 10% ENW per share growth4 per year Swiss Re 10% Gro
Slide 15: We continue to develop our leadership in Sustainability
We continue to develop our leadership in Sustainability Key 2021 highlights External recognition Underwriting • Co-founded UN-convened Net-Zero Insurance Alliance (NZIA) 5% most carbon-intensive oil and • Enhanced ESG Risk Framework gas companies phased out Investments • ESG benchmarks outperformed
Slide 16: Financial highlights
Financial highlights 16
Slide 17: Key figures
Key figures Corporate Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items FY 2021 FY 2020 • Premiums earned and fee income 21 926 14 868 5 343 589 42 726 40 770 • Net income/loss 2 097 - 523 578 - 715 1 437 - 878 • Return on investments 3.3% 3.2% 2.0% 0.5% 3.2% 3.5% • Retu
Slide 18: P&C Reinsurance
P&C Reinsurance Strong profit, reflecting improved portfolio quality 18
Slide 19: P&C Reinsurance reported a strong profit, reflecting improved portfolio quality
P&C Reinsurance reported a strong profit, reflecting improved portfolio quality Net premiums earned Net operating margin1 (%) Combined ratio (%) 111.5 107.8 109.0 104.0 11.5pts 99.8 97.1 11.6 93.5 96.6 excl. COVID-19 USD 21.9bn 7.5 85.7 0.1 2015 2016 2017 2018 2019 2020 2021 in 2021 8.9 8.2 • FY 202
Slide 20: P&C Reinsurance strategy in action
P&C Reinsurance strategy in action Portfolio split by region and line of business CORE • Efficiency gains across the value chain (% of net premiums earned) US GAAP cost ratio1(%) through services tailored towards client 35 needs combined with smart & lean 32.5 processes 31.8 31.1 • Continuous reallo
Slide 21: L&H Reinsurance
L&H Reinsurance Remained impacted by significant COVID-19 losses 21
Slide 22: L&H Reinsurance remained impacted by significant COVID-19 losses
L&H Reinsurance remained impacted by significant COVID-19 losses Net premiums earned Net operating margin1 (%) Recurring income yield2 and ROI (%) and fee income 3.5 3.4 3.3 3.4 3.3 3.0 2.8 -5.0pts 2.9 5.0 4.3 3.4 3.6 3.7 3.7 USD 14.9bn 3.2 10.2 8.3 in 2021 2015 2016 2017 2018 2019 2020 2021 Recurri
Slide 23: L&H Reinsurance strategy in action
L&H Reinsurance strategy in action Portfolio split by region and line of business CORE (% of net premiums earned) US GAAP cost ratio 1 (%) • Active cost management, scalability and 35 growth will further improve our cost ratios 30 23.5 • Continuous reallocation of resources to key 25 21.8 20.9 growt
Slide 24: Corporate Solutions
Corporate Solutions Surpassed its normalised combined ratio target 24
Slide 25: Corporate Solutions surpassed its normalised combined ratio target
Corporate Solutions surpassed its normalised combined ratio target Net premiums earned Net operating margin1 (%) Combined ratio (%) 133.4 127.9 117.5 115.5 24.2%pts 101.1 13.5 93.2 USD 5.3bn 96.4 90.6 92.0 24.3 excl. COVID-19 2015 2016 2017 2018 2019 2020 2021 in 2021 0.1 4.2 4.4 -15.0 • FY 2021 lar
Slide 26: Corporate Solutions strategic transformation in action
Corporate Solutions strategic transformation in action Portfolio split by region and line of business Reserving adequacy restored (% of net earned premium) Net prior-year reserve development (as % of premiums) 6% 2% • Reinforced portfolio steering framework -7% -6% across costing, underwriting, rese
Slide 27: iptiQ
iptiQ Continued dynamic growth trajectory 27
Slide 28: iptiQ continued its dynamic growth trajectory
iptiQ continued its dynamic growth trajectory Gross premiums written1 (USD m) Adjusted gross income2 (USD m) Earnings before interest 723 and tax (EBIT) CAGR 101% +39% 53 USD -278m 371 211 89 38 in 2021 2018 2019 2020 2021 USD-214m 37 38 • Gross premiums written increased 95% year-on-year, with poli
Slide 29: iptiQ division strategy in action
iptiQ division strategy in action Portfolio split by region and line of business Underwriting results (% of gross premiums written) Gross loss ratio (as % of gross premiums earned) +7%pts • Increase mainly driven by COVID-19 losses, 10% 71% 78% German floods and US/ANZ excess mortality • Adverse imp
Slide 30: Group investments
Group investments Strong investment result driven by recurring income and equity valuations 30
Slide 31: Strong investment result driven by recurring income and equity valuations
Strong investment result driven by recurring income and equity valuations Return on investments (ROI) Investment portfolio positioning (USD bn) Net investment income (USD m) Recurring income yield (RIY)2 (%) 122.4 119.3 0.3 0.3 3.0 14.1 2.9 2.9 2.9 14.5 2.8 3.2% in FY 2021 39.0 45.3 3 099 3 132 3 39
Slide 32: Q&A
Q&A Please raise your hand to ask a question.
Slide 33: Appendix
Appendix 33
Slide 34: Business segment results FY 2021: Income statement
Business segment results FY 2021 Income statement Corporate Total Total USD m Reinsurance P&C Re L&H Re Solutions Group items Consolidation FY 2021 FY 2020 Revenues Gross premiums written 39 317 23 246 16 071 7 492 795 - 946 46 658 42 951 Net premiums written 36 965 22 381 14 584 5 717 538 - 43 220
Slide 35: Business segment results FY 2021: Balance sheet
Business segment results FY 2021 Balance sheet Corporate End End 31 December 2021, USD m Reinsurance P&C Re L&H Re Solutions Group items Consolidation FY 2021 FY 2020 Assets Fixed income securities 75 418 42 762 32 656 9 688 1 879 - 86 985 83 018 Equity securities 2 431 2 218 213 254 1 293 - 3 978 4
Slide 36: Total equity and ROE FY 2021
Total equity and ROE FY 2021 Corporate Total USD m Reinsurance P&C Re L&H Re Solutions Group items FY 2021 Shareholders' equity at 31 December 2020 16 549 9 168 7 381 2 427 8 159 27 135 Net income attributable to shareholders 1 574 2 097 - 523 578 - 715 1 437 Dividends - 500 - - 500 - -1 355 -1 855
Slide 37: Change in shareholders' equity mainly driven by lower net unrealised investment gains
Change in shareholders' equity mainly driven by lower net unrealised investment gains and dividend payment, partially offset by net income USD m Gov bonds -2.4 Corp bonds -1.3 Sec products -0.1 Other 0.1 Tax 0.7 1 437 -1 855 27 135 -2 956 -193 23 568 Shareholders' Net income Dividends Net change in
Slide 38: P&C underwriting result
P&C underwriting result P&C Reinsurance and Corporate Solutions Combined ratio Main drivers of change Net premiums Underwriting earned result FY 2021 FY 2021 P&C Reinsurance FY 2020 FY 2021 USD m USD m Property 109.4% 92.2% • Strong result supported by improved margins, diminishing COVID-19 losses a
Slide 39: P&C Reinsurance combined ratio split
P&C Reinsurance combined ratio split Combined ratio split (%) 109.0 110 9.2 97.1 100 2.1 1.3 0.5 8.1 9.4 Key developments in 2021 90 1.5 5.8 5.3 80 • Normalised combined ratio1 improved to 94.7% from 96.9% last year, reflecting price increases and the execution of portfolio actions 70 24.5 24.4 • La
Slide 40: Corporate Solutions combined ratio split
Corporate Solutions combined ratio split Combined ratio split (%) 115.5 120 110 19.1 90.6 100 Key developments in 2021 1.6 4.7 4.3 90 6.5 • Normalised combined ratio1 improved to 95.0%, reflecting disciplined 15.6 80 15.9 underwriting and continued rate increases 70 13.5 • Large nat cat losses of US
Slide 41: L&H Reinsurance EBIT movements
L&H Reinsurance EBIT movements EBIT movements (USD m) FY 2020 FY 2021 Life Health L&H Life Health L&H EBIT reported -168 221 4563 -1 104 459 -3403 Net operating margin, % -1.6 4.6 2.9 -9.9 9.7 -2.1 Mortality/morbidity experience vs. expected1 54 -156 -102 103 11 114 Valuation/assumption changes2 86
Slide 42: Swiss Re's reported COVID-19 losses to-date
Swiss Re’s reported COVID-19 losses to-date Swiss Re’s reported COVID-19 losses to-date (USD m, pre-tax) 529 5 884 5 884 IBNR Paid & case reserves 2 891 31% 34% 2021 1 459 219 69% 66% 2020 786 Event cancellation Business interruption Credit & surety Mortality1 Other lines Total1 1 P&C Re 479 1 142 4
Slide 43: Return on investments (ROI)
Return on investments (ROI) Corporate Consoli- Total Total USD m P&C Re L&H Re Solutions Group items dation FY 2021 FY 2020 Investment related net investment income 1 437 972 136 483 -194 2 834 2 052 Fixed income 577 941 138 69 - 1 725 1 885 Equities and alternative investments – incl. RE, PE, HF 95
Slide 44: Overall investment portfolio
Overall investment portfolio Other investments (incl. policy loans) Cash and cash equivalents Short-term investments Mortgages and other loans 7% 4% 3% 7% Equities1 7% 39% 33% Government bonds Credit bonds Corporate End End USD bn P&C Re L&H Re Solutions Group items Consolidation FY 2021 FY 2020 Cas
Slide 45: Fixed income securities
Fixed income securities Government Credit USD m bonds bonds End FY 2020 49 125 33 893 End FY 2021 vs. End FY 2020 End FY 2021 47 205 39 780 • Decrease in government bonds driven by market value losses, reflecting the impact of rising interest rates • Increase in credit bonds due to net purchases, pa
Slide 46: Equities and alternative investments
Equities and alternative investments Equity securities by sector 1% 1% 1% ETF, excl. fixed income 3% Non-cyclical consumer goods End End 3% 6% Information technology USD m FY 2020 FY 2021 23% Financials Equity securities 2 472 2 739 Cyclical services 14% General industrials Private equity 2 005 3 05
Slide 47: Sensitivities
Sensitivities (USD bn, pre-tax) Change in market values (Equities and alternative investments, excl. real estate) -25% -10% +25% Estimated impact on shareholders' equity -2.0 -0.8 +2.2 Estimated impact on economic net worth (EVM) -2.0 -0.8 +2.1 Estimated impact on income/loss before income tax expen
Slide 48: Premiums by country
Premiums by country 2021 Gross premiums written and fees assessed against policyholders by country1 (USD m) Total Total Life & Health Non-Life FY 2021 FY 2020 United States 6 663 13 431 20 094 18 497 United Kingdom 2 172 2 074 4 246 3 934 Australia 1 036 1 060 2 096 1 808 China 795 959 1 754 1 843 C
Slide 49: Swiss Re is broadly diversified
Swiss Re is broadly diversified Swiss Re Group net premiums earned1 2021: USD 42.7bn USD 21.0bn USD 13.5bn USD 8.2bn Americas EMEA Asia 49% 32% 19% of which HGMs: ~2% ~3% ~10% ≈16% HGMs incl. PI2: ~2% ~3% ~15% ≈20% 1 Includes fee income from policyholders; does not reflect the exposure to HGMs throu
Slide 50: Premiums by line of business and region
Premiums by line of business and region Premiums earned and fee income by line of business (USD bn) 25.4 28.8 31.3 30.2 33.2 33.7 34.5 38.6 40.8 42.7 12% 12% 13% 13% 12% 12% 14% 14% 14% 13% 30% 27% 26% 26% 26% 27% 28% 26% 25% 26% 11% 11% 12% 10% 10% 10% 11% 11% 11% 10% 21% 22% 24% 25% 28% 29% 28% 26
Slide 51: Corporate calendar and contacts
Corporate calendar and contacts Corporate calendar 2022 17 March Publication Annual Report 2021 Zurich 07 April Investors’ Day 2022 Zurich 05 May First Quarter 2022 Media conference call 29 July Half-year 2022 Media conference 10 – 14 September Rendez-Vous de Septembre 2022 Media conference call 28
Slide 52: Annual Results 2021
Annual Results 2021 52
Slide 53: 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 54: 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