Zurich Insurance Group Ltd · SIX:ZURN

Zurich Insurance — Merger or Acquisition (December 2017)

14 slides from Zurich Insurance's merger presentation, Dec 11, 2017

  1. Slide 1: Zurich to acquire the Life insurance business of ANZ (OnePath Life)

    Zurich to acquire the Life insurance business of ANZ (OnePath Life) Investor presentation December 11, 2017 Zurich Insurance Group

  2. Slide 2: Compelling strategic and financial rationale

    Compelling strategic and financial rationale  Creates a leading Australian life business with a 19% retail protection market share Leadership in  20 year strategic partnership with ANZ, a leading Australian banking group, for the Australian life distribution of life insurance solutions  Distribut

  3. Slide 3: Significant uplift in earnings of our Australian business

    Significant uplift in earnings of our Australian business EXPECTED PRE-TAX P/L IMPACTS (AUDm)1,2 FY-17 PRO-FORMA BALANCE SHEET (AUDm)1,3 AUDm Comment AUDm AUDm Expected impact from reinsurance Cash and cash Trade payables and 2018 BOP ~70 2,036 643 pre-completion equivalents other Trade and other Li

  4. Slide 4: Strong cash generation capability supports dividend

    Strong cash generation capability supports dividend EXPECTED CUMULATIVE CASH GENERATION (AUDbn) ~1.4  Predictable profit and cash emergence from a mature retail life business  Distributable earnings expected to exceed reported earnings due to run-off of legacy pension and investment portfolio  AU

  5. Slide 5: Completion of deal expected by November 2018

    Completion of deal expected by November 2018 EXPECTED TIMELINE SCOPE OF DEAL ANZ Wealth Management perimeter Zurich IOOF2 Retained by ANZ Time Milestone ADG / DISTRIBUTION BANCASSURANCE FINANCIAL PLANNERS PLATFORM December 2017 Signing LIFE LIFE Reinsurance of a RETAIL RETAIL May 2018 substantive po

  6. Slide 6: Transformational to Group's positioning in Australia; increased contribution of less volatile earnings

    Transformational to Group’s positioning in Australia; increased contribution of less volatile earnings CURRENT AND PRO-FORMA IN-FORCE MARKET SHARES (%)2  Strengthens existing position in a core market  Creates leading Australian life franchise Australia Individual Life 12ppt – #1 retail life playe

  7. Slide 7: Australian protection market supported by structural growth and premium indexation

    Australian protection market supported by structural growth and premium indexation MARKET FUNDAMENTALS IN-FORCE ANNUAL PREMIUMS BY PRODUCT (%)  GDP growth of 3% CAGR 2011-16 at upper end of developed markets 17% Term Life  Strong GWP growth of ~10% CAGR over last 10y (4x GDP) 1% 43% Group Risk  R

  8. Slide 8: Partnership with ANZ builds on Zurich's recognized global footprint in the bank distribution channel

    Partnership with ANZ builds on Zurich’s recognized global footprint in the strategically important bank distribution channel ACCESS TO OVER 60 MILLION CUSTOMERS IN 171 BANK DISTRIBUTION CHANNEL IS EXPECTED TO GROW COUNTRIES THROUGH OVER 70 BANK AGREEMENTS FASTER THAN THE MARKET2 CAGR CAGR 2008-16e 2

  9. Slide 9: Zurich has a strong track record in Bank distribution, which has become a material contributor

    Zurich has a strong track record in Bank distribution, which has become a material contributor to the group STRONG RETAIL VOLUME GROWTH AS WELL AS BOTTOM LINE RESULT RESULTING IN AN IMPORTANT (USDm, 100% VIEW)1,2 (USDm, 100% VIEW)1,3 CONTRIBUTION TO GROUP RESULT +21% 1,610 12% 1,386 APE 1,169 913 Li

  10. Slide 10: 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’).

  11. Slide 11: Appendix

    @ ZURICH Appendix

  12. Slide 12: Further details on the transaction

    Further details on the transaction FINANCIAL OVERVIEW (AS DISCLOSED BY ANZ) REINSURANCE AGREEMENT All insurance products including:  Advised Life  To gain early exposure to a portion of OnePath Life earnings,  Direct Life Zurich will enter into a quota share reinsurance agreement  Group insuranc

  13. Slide 13: For further information

    For further information CALL US VISIT OR FOLLOW US Investor Relations Richard Burden +41 44 628 96 40 Francesco Bonsante +41 44 628 00 68 Gianni Vitale +41 44 625 48 26 Rating Agency Management Michèle Matlock +41 44 625 28 50  Investor Relations website Events  Financial results and reports Patri

  14. Slide 14: Calendar

    CALENDAR:  February 8, 2018, Annual Results 2017  March 20-21, 2018, Morgan Stanley European Financials Conference 2018, London  April 4, 2018, Annual General Meeting 2018  April 9-10, 2018, HSBC West Coast Financials Conference 2018, San Francisco  May 9, 2018, Interim Management Statement for

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