Zurich Insurance Group Ltd · SIX:ZURN

Zurich Insurance — Non-Deal Roadshow (November 2024)

54 slides from Zurich Insurance's roadshow presentation, November 2024

Slide 1: 2024 Chairman's Roadshow
2024 Chairman’s Roadshow Michel Liès, Chairman of the Board November 2024 Investor presentation Zurich Insurance Group © Zurich
Slide 2: Content
Content Strategy 3 Communities 32 Corporate Governance 9 Insuring the transition 35 Remuneration 12 Responsible investment 42 Our ESG approach 17 Data Privacy and Protection 48 People and operations 25 Artificial Intelligence 50 November 2024 2024 Chairman Roadshow 2 © Zurich
Slide 4: Key messages
Strategy Key messages Successful delivery of the We are on track to exceed all our 2023-2025 targets one year ahead of schedule, benefiting from a 2023-2025 plan successful execution of our strategy and better than anticipated market environment Consistent strategy, Successful execution has led our
Slide 5: 2023-2025 targets largely achieved one year ahead
Strategy 2023-2025 targets largely achieved one year ahead BOPAT ROE (%)1 Cash remittances EPS growth (USD)2 SST (%)4 (USDbn) Progress as Progress as Progress as Progress as of FY-24e: >100% of FY-24e: >100% of FY-24e: ~100% of 9M-24e: >100% 23.1% >23% >13.5 40.4 224% 20.0% 32.1 ≥160% FY-24e ~7 Run-
Slide 6: We are building on several years of successful execution and growth
Strategy We are building on several years of successful execution and growth 2016-2019 2020-2022 2023-2024 Best-in-class BOP growth1 Simplified Group, Accelerated customer Managed increase in FY-16 to FY-23 CAGR (%) increased efficiency centricity inflation Reduced large loss Reduced exposure to Lau
Slide 7: We focus on enabling the net-zero transition while building resilience to evolving risks
Strategy We focus on enabling the net-zero transition while building resilience to evolving risks Our approach Selected achievements in 2023 Increased 2030 commitments Achieve net-zero target for operational +70% GWP, fees and net flows from emissions (USD insurance sustainable solutions 1.4bn) Expa
Slide 8: We are raising the bar, with a new set of financial and business targets
Strategy We are raising the bar, with a new set of financial and business targets for the 2025-2027 period Business targets Financial targets • BOP >USD 4.2bn in FY-27 Commercial • Middle market GWP1 >USD 10bn in FY-27 Cash • Return to long-term level of profitability Core EPS2 remittances Retail Co
Slide 10: A diverse and independent Board, well positioned to support management
Corporate Governance A diverse and independent Board, well positioned to support management delivery on strategic priorities Board composition1 Board by length of tenure1 Singapore 7% Germany 20% Switzerland Male 40% 42% 58% 50% 50% Female 7% UK Less than 5 years Between 5 and 12 years 20% 7% U.S. L
Slide 11: Board leadership and commitment to key strategy and policy issues
Corporate Governance Board leadership and commitment to key strategy and policy issues Key focus areas in 2023-2024 2023 Board meeting attendance1 Board 93% Delivery on strategic priorities for the cycle 2023-2025, Audit Committee 98% including regional developments and implementation of Risk & Inve
Slide 13: Significant portion of remuneration is deferred for senior management
Remuneration Significant portion of remuneration is deferred for senior management 2023 remuneration structure1 Fixed remuneration / fees • Base salary benchmarked towards relevant market median Directors CEO • Pensions and benefits in line with relevant market practice – benefits can include life i
Slide 14: Zurich has created significant value for shareholders
Remuneration Zurich has created significant value for shareholders Total shareholder return (USD) Dividend per share (CHF) (Indexed to 100% as of January 1, 2016)1 450% 390% 400% CAGR 26 +6% 24 350% 22 300% 20 20 19 18 17 250% 219% 200% 213% 150% 100% 50% 0% 2016 2017 2018 2019 2020 2021 2022 2023 2
Slide 15: ExCo and CEO STIP metrics support Group strategy
Remuneration ExCo and CEO STIP metrics support Group strategy 2023 ExCo STIP funding 2023 CEO target card framework Financials 50% Customers 40% Employees 10% BOP 100% + Consideration of execution against strategic priorities, including ESG factors and a risk-based review 2023 ExCo STIP funding achi
Slide 16: LTIP metrics reflect strategic ambition and priorities
Remuneration LTIP metrics reflect strategic ambition and priorities 2024 LTIP vesting determination for 2021-2023 LTIP targets for 2024-2026 performance period performance period 0% 50% 100% 150% 200% Weight 0% 50% 100% 150% 200% Weight Relative TSR position 12th–10th 50% Relative TSR position 9th –
Slide 18: Our ESG approach is driven by sound risk management, societal expectations and regulation
Our ESG approach Our ESG approach is driven by sound risk management, societal expectations and regulatory and transparency requirements Risk management Societal expectations Regulators and transparency Deploy effective risk management in order Support the social transformation resulting Increased r
Slide 19: Understanding how our business model can support addressing key ESG topics
Our ESG approach Understanding how our business model can support addressing key ESG topics Building resilience to climate impacts Supporting long-term social protection Challenges • Develop products and services • Strengthen and expand social that enable resilience and support safety net through pr
Slide 20: Our materiality assessment helps us prioritize sustainability risks
Our ESG approach Our materiality assessment helps us to prioritize sustainability risks and shape our strategic competitive response Zurich’s materiality matrix Recent developments Shaping our competitive Climate resilience response Moderate High Very high Data privacy & security & adaptation High D
Slide 21: Sustainability framework underpinned by qualitative ambition and quantitative targets
Our ESG approach Sustainability framework underpinned by qualitative ambition and quantitative targets Customer: Support transformation Planet: Mitigate and adapt to climate People: Future-proof our people and towards a sustainable future change enable more to thrive Grow sustainable revenue and ris
Slide 22: Solid ESG governance in place to secure execution
Our ESG approach Solid ESG governance in place to secure execution Sustainability management embedded across our organization ESG in remuneration • GNSC1: oversight of sustainability strategy and objectives Long-term incentive plan (LTIP)2 Board All Board committees • Audit committee: supervision of
Slide 23: We continuously enhance our ESG reporting
Our ESG approach We continuously enhance our ESG reporting in line with regulatory requirements and our transparency ambition Group 20211 2022 2023 2024 2025 level • Launch Integrated • Reasonable assurance • 1st shareholders’ advisory • Publication of Climate Sustainability report will Sustainabili
Slide 24: Our ESG performance has been recognized by external assessors
Our ESG approach Our ESG performance to date has been recognized by external assessors Our ESG ratings Our commitments ‘AAA’ rating1 Prime status C+ Decile rank: 12 Absolute score of 4.1 (out of 5.0)3 ‘A-’ Leadership Level4 1 MSCI ESG Rating Report, July 2024. Annual report 2023 (English) Sustainabi
Slide 26: We embrace diversity and inclusion in our businesses around the world
People We embrace diversity and inclusion in our businesses around the world Employees by gender and female representation Organization footprint North America EMEA Asia Pacific Employees1 Board of Directors 18,209 25,209 7,109 60,040 HY-24 42% 48% 2023 50% Male 2022 50% CC 52% Female 1,690 2021 55%
Slide 27: We continue to develop our workforce and future-proof our people
People We continue to develop our workforce and future-proof our people Internal hires Gender diversity Training Enabling workplace diversity Internal hire rate (%)1 Females in senior management (%)2 Avg. training hours per employee3 +5ppts +2ppts -6ppts 73% 29% 30% 26 68% 20 • First company in the
Slide 28: Our People Sustainability focus ensures we have the people and skills we need
People Our People Sustainability focus ensures we have the people and skills we need for the future Aspiration Priorities Approach • Strengthen internal marketplace: Continue to prioritize targeted opportunities for people internal over external hiring • Proactive upskill and reskill: technical acad
Slide 29: We deliver on our ambitious operational targets through a variety of initiatives
Operations We deliver on our ambitious operational targets through a variety of initiatives Delivering on our ambitious targets1 Initiatives1 (‘000 metric tonnes CO2e) -67% 181 • Purchase of 100% renewable power across all operations including data Targets centres achieved in 2022; member of RE100 i
Slide 30: We have established a sustainable sourcing program
People and operations We have established a sustainable sourcing program to enable a net-zero aligned value chain Encouraging Code of Decarbonizing our supply-chain Net-zero training and tool for Conduct compliance carbon accounting Compliance with Zurich’s 2025 target 2030 target Code of Conduct Ma
Slide 31: Zurich started its operational emissions reduction journey more than 15 years ago
Sustainable Operations Zurich started its operational emissions reduction journey more than 15 years ago, balancing business and environmental requirements Externalities Business Requirements Reporting Methodologies Risks • Susceptibility to supply chain • Managing business growth and • Best practic
Slide 32: Communities
Communities The Z Zurich Foundation is a Swiss-based charitable foundation established by members of the Zurich Insurance Group. It is the main vehicle by which Zurich Insurance Group delivers on its global community investment strategy November 2024 2024 Chairman Roadshow 32 © Zurich
Slide 33: Z Zurich Foundation supports Zurich to bring its sustainability ambition to life
Communities Z Zurich Foundation supports Zurich to bring its sustainability ambition to life and at unprecedent 2023 CHF 28m invested in community grants in, and 17 new multi-year grants were approved which 5.9m lives positively impacted* (15.6m since 2020), largely 146,000 hours of volunteering rep
Slide 34: The Z Zurich Foundation is Zurich's main vehicle for community investment
Communities The Z Zurich Foundation is Zurich's main vehicle to execute its global community investment strategy The Foundation’s strategic pillars address major global issues for which we have a strong expertise and infrastructure Adapting to climate change Improving mental wellbeing A major actor
Slide 36: We have set 2030 interim targets for our insurance business
Sustainable insurance We have set 2030 interim targets for our insurance business, on our journey to net zero Prioritizing insurance capacity and expanding Insuring the the range of sustainable solutions and • Profitably expanding our range of sustainable products and services, and deploying and gro
Slide 37: We apply sustainability risk assessments and underwriting positions
Sustainable insurance We apply sustainability risk assessments and underwriting positions to support our ambition Underwriters perform sustainability assessments where customers are identified as having a high risk of violating one of Zurich’s policies, based on third party information and guidance
Slide 38: We understand and mitigate risks associated with ESG
Sustainable insurance We understand and mitigate risks associated with ESG to protect Zurich and to support our customers Risk area Example of action taken Physical Nat Cat Optimize exposure across key peril regions Transition risk assessment focused on Transition Speed to adapt carbon intense indus
Slide 39: Engagement and risk insight are our biggest levers
Sustainable insurance Engagement and risk insight are our biggest levers to support real world emission reductions Managing underwriting ACDC transition assessment framework challenges within transitionary technology Offshore oil becomes offshore wind Alignment Commitment with Paris agreement and ne
Slide 40: In P&C, we develop risk prevention solutions through Zurich Resilience Solutions
Sustainable insurance In P&C, we develop risk prevention and mitigation solutions through Zurich Resilience Solutions Rapidly growing ESG services market is an opportunity to build stronger relationships Customers demand risk Zurich Resilience Solutions2 A.P. Moller-Maersk (‘Maersk’) – with more tha
Slide 41: There are broader challenges that we need to manage on our net-zero journey
Sustainable insurance There are broader challenges that we need to manage on our net-zero journey Externalities Measurement Portfolio construction Risks • Reliance on transition in real • Corporate emissions • Understanding customer • Transition technology economy targets • Data availability • Trade
Slide 43: Our responsible investment strategy and ambition
Responsible investment Our responsible investment strategy and ambition - leveraging our role as an investor Responsible investment Strategy based on three pillars Defined focus areas Net-zero journey Reducing financed emissions and financing climate solutions ESG integration Climate Solutions Mitig
Slide 44: The three pillars of our Responsible Investment strategy
Responsible investment The three pillars of our Responsible Investment strategy ESG Integration Impact Investments Advancing together Zurich expects asset managers to reflect ESG We have become a signatory of a number of risks and opportunities, factoring in Zurich’s four global initiatives that hel
Slide 45: We have renewed our interim investment targets for 2030
Responsible investment We have renewed our interim investments targets for 2030 on our journey to net-zero We invest in climate solutions defined as Investing in investments in economic activities that • Bring Investments in Climate Solutions1 to 6% of total Group climate contribute substantially to
Slide 46: We are on track to deliver on our 2025 interim targets
Responsible investment We are on track to deliver on our 2025 interim targets for our investment portfolio Reduction of financed emissions Climate action Impact investments Listed equity and corporate bond Direct real estate investments2 Engagement with investees without Share of Group total investe
Slide 47: We are confronted with multiple challenges in pursuing a net-zero portfolio
Responsible investment We are confronted with multiple challenges as we pursue our ambition to transition to a net-zero investment portfolio Externalities Measurement Portfolio construction Risks • Reliance on transition in real • Corporate emissions: • Reduction in investable universe • Stranded as
Slide 49: We provide leading data privacy and information security
Data Privacy and protection We provide leading data privacy and information security for our customers and employees Principles of cybersecurity at Zurich Strong data commitment in line with best practice • We keep your data safe Cybersecurity measure and protocols aligned with Best • We never sell
Slide 51: We use AI in different businesses across Zurich
Artificial Intelligence We use AI in different businesses across Zurich, covering the entire insurance value chain >200 23 BU ~60K AI-powered solutions shared Gen AI platform Employees access to Gen AI solutions Commercial Insurance Retail P&C Life • Predictive risk assessment • Personalized interac
Slide 52: We use AI in a responsible way with a strong governance framework
Data Privacy and Protection We use AI in a responsible way with a strong governance framework Board activity in 2023-2024 Embedding in operations through the AI Commitment Responsible AI Commitment released in 2024 for a safe, responsible and customer-centric use of AI technologies • AI training ses
Slide 53: 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). Fo
Slide 54: For further information
For further information Call us Visit or follow us Investor Relations and Rating Agency Management • Jon Hocking +41 44 628 18 34 • Johannes Herholdt +41 44 625 25 53 • Francesco Bonsante +41 44 628 00 68 • Samuel Han +41 44 625 32 57 • Michèle Matlock +41 44 625 28 50 Investor Relations website Eve

Zurich Insurance Group — Non-Deal Roadshow (November 2024) on 6ix

Zurich Insurance — Non-Deal Roadshow (November 2024)

Slide 1: 2024 Chairman's Roadshow

Slide 2: Content

Slide 3: Strategy

Slide 4: Key messages

Slide 5: 2023-2025 targets largely achieved one year ahead

Slide 6: We are building on several years of successful execution and growth

Slide 7: We focus on enabling the net-zero transition while building resilience to evolving risks

Slide 8: We are raising the bar, with a new set of financial and business targets

Slide 9: Corporate Governance

Slide 10: A diverse and independent Board, well positioned to support management

Slide 11: Board leadership and commitment to key strategy and policy issues

Slide 12: Remuneration

Slide 13: Significant portion of remuneration is deferred for senior management

Slide 14: Zurich has created significant value for shareholders

Slide 15: ExCo and CEO STIP metrics support Group strategy

Slide 16: LTIP metrics reflect strategic ambition and priorities

Slide 17: Our ESG approach

Slide 18: Our ESG approach is driven by sound risk management, societal expectations and regulation

Slide 19: Understanding how our business model can support addressing key ESG topics

Slide 20: Our materiality assessment helps us prioritize sustainability risks

Slide 21: Sustainability framework underpinned by qualitative ambition and quantitative targets

Slide 22: Solid ESG governance in place to secure execution

Slide 23: We continuously enhance our ESG reporting

Slide 24: Our ESG performance has been recognized by external assessors

Slide 25: People and operations

Slide 26: We embrace diversity and inclusion in our businesses around the world

Slide 27: We continue to develop our workforce and future-proof our people

Slide 28: Our People Sustainability focus ensures we have the people and skills we need

Slide 29: We deliver on our ambitious operational targets through a variety of initiatives

Slide 30: We have established a sustainable sourcing program

Slide 31: Zurich started its operational emissions reduction journey more than 15 years ago

Slide 32: Communities

Slide 33: Z Zurich Foundation supports Zurich to bring its sustainability ambition to life

Slide 34: The Z Zurich Foundation is Zurich's main vehicle for community investment

Slide 35: Insuring the transition

Slide 36: We have set 2030 interim targets for our insurance business

Slide 37: We apply sustainability risk assessments and underwriting positions

Slide 38: We understand and mitigate risks associated with ESG

Slide 39: Engagement and risk insight are our biggest levers

Slide 40: In P&C, we develop risk prevention solutions through Zurich Resilience Solutions

Slide 41: There are broader challenges that we need to manage on our net-zero journey

Slide 42: Responsible investment

Slide 43: Our responsible investment strategy and ambition

Slide 44: The three pillars of our Responsible Investment strategy

Slide 45: We have renewed our interim investment targets for 2030

Slide 46: We are on track to deliver on our 2025 interim targets

Slide 47: We are confronted with multiple challenges in pursuing a net-zero portfolio

Slide 48: Data Privacy and protection

Slide 49: We provide leading data privacy and information security

Slide 50: Artificial Intelligence

Slide 51: We use AI in different businesses across Zurich

Slide 52: We use AI in a responsible way with a strong governance framework

Slide 53: Disclaimer and cautionary statement

Slide 54: For further information