Swiss Re Ag · SIX:SREN
Swiss Re — Helvea Swiss Equities Conference 2013
21 slides from Swiss Re's conference presentation, Jan 17, 2013
Slide 1: Helvea Swiss Equities Conference
Helvea Swiss Equities Conference George Quinn, Group CFO Bad Ragaz, 17 January 2013
Slide 2: A challenging environment, and not just for (re)insurers
A challenging environment, and not just for (re)insurers regulatory environment regulatory environment financial markets, changing risk landscape sovereign debt changing risk landscape financial markets, Insurance sovereign debt, Insurance interest rates Industry Industry mature markets, weak growth
Slide 3: Historically low interest-rate environment
Historically low interest-rate environment Central Banks Policy Rates (in %) 25 1980s 1990s July 1997 2000 2008 U.S. Savings and U.S. Savings and Asian financial Dot.com bubble Economic and Loan crisis Loan crisis crisis financial crisis 20 15 10 5 0 US Federal Fund Target Policy Rate Bank of Englan
Slide 4: Slow-down of economic growth
Slow-down of economic growth Real GDP growth 10% 8% 6% 4% 2% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -2% -4% -6% Advanced economies Emerging markets World Source: Swiss Re Economic Research & Consulting Helvea Swiss Equities Conference | Bad Ragaz, 17 January 2013 4
Slide 5: Swiss Re's Group strategy
Swiss Re's Group strategy Outperform our peers Strategic goal: ▪Reinsurance ▪Admin Re® The leading ▪Asset Management player in the Current wholesale position Smart expansion re/insurance ▪ Corporate Solutions industry ▪ Longevity & Health ▪ High Growth Markets Helvea Swiss Equities Conference | Bad
Slide 6: Swiss Re Group
Swiss Re Group Overview Swiss Re Group Corporate Reinsurance Admin Re® Solutions P&C L&H Strategic goal Strategic goal Strategic goal To be a focused, lean, To be a recognised To be the world's global player in large force in the closed leading reinsurer commercial business life book market Cu
Slide 7: Cornerstones of Swiss Re's underwriting
Cornerstones of Swiss Re's underwriting R&D as a key differentiator R&D is a value driver in underwriting Property Own research team and models for Cycle management storm, earthquake and flood Ability to compare to commercial tools and understand differences Casualty Portfolio R&D Risk Forward
Slide 8: Swiss Re's approach to underwriting leads to outperformance
Swiss Re's approach to underwriting leads to outperformance … and growth at the right time Swiss Re’s P&C premium and underwriting profit share vs top 8 reinsurers 60% 2006 – 1H 2012 50% SR premium share of 23% 40% SR U/W profit share of 38% SR U/W loss share of 3% 30% 20% 10% 0% 2006 2007 2008 2009
Slide 9: Factors driving P&C re-/insurance prices
Factors driving P&C re-/insurance prices Prices High Low Nat Cats Low inflation Low interest rates Regulatory changes Continuous reserve Industry capitalisation releases Factors leading to higher prices Factors leading to lower prices Drivers of re-/ insurance prices Helvea Swiss Equities Conference
Slide 10: Swiss Re is well positioned
Swiss Re is well positioned Low interest rates Lean casualty book L&H: focus on wholesale/reinsurance, avoiding primary business with guarantees Prudent, ALM-matched asset portfolio with room for moderate re-risking Regulatory changes SST has given us 5 years practical experience in implemen
Slide 11: Deployment of Group excess capital
Deployment of Group excess capital Evaluation criteria Group excess capital Market-driven considerations Funding of incremental growth/transactions Business unit risk - return profiles Swiss Re Group Profitability Metrics financial targets EVM profit Volatility of results Minimum hurdle
Slide 12: Business opportunities
Business opportunities Helvea Swiss Equities Conference | Bad Ragaz, 17 January 2013 12
Slide 13: High Growth Markets
High Growth Markets Tangible growth opportunities exist Agriculture Nat Cat Infrastructure Life Health Helvea Swiss Equities Conference | Bad Ragaz, 17 January 2013 13
Slide 14: We see plenty of opportunities
We see plenty of opportunities Natural catastrophe losses 1980-2012 % of people claiming to be financially "well in USD bn positioned" in event of suffering a long-term illness or disability, or death 450 400 350 300 250 200 150 100 50 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 20
Slide 15: Our L&H strategy addresses challenges by entering new fields
Our L&H strategy addresses some of the challenges of the environment by entering new fields World's protection gaps are vast ~ USD 70 trillion Partner for growth Working with clients and distributors to develop consumer- with our clients friendly products and processes, e.g. our in-house predict
Slide 16: Corporate Solutions
Corporate Solutions USD ~640bn commercial insurance market and we currently only write a small fraction of it Corporate Solutions' Commercial insurance market value proposition Leading brand Total 2011 premium: USD ~640bn Financial strength Upper mid-sized corporates "We are here to stay" (USD
Slide 17: Admin Re
Admin Re® Focus on UK and Continental Europe Today 2012 2013 Execute on strategy Leverage optionality Active portfolio mgmt. and steering to optimise Fully establish and recognise capital usage and return franchise value ‐ Divestiture of US business unlocked capital (USD 0.9bn) for redeployment
Slide 18: Summary and outlook
Summary and outlook We expect to see profitable business growth including expiry of 20% Berkshire quota share High Growth Markets are not an "option", but a contributor towards our financial targets Our capital management priorities: – maintaining and growing our regular dividend with earnings
Slide 19: Thank you
Thank you Helvea Swiss Equities Conference | Bad Ragaz, 17 January 2013 19
Slide 20: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 21 February 2013 Annual Results Conference call 18 March 2013 AGM Briefing Call Conference call 10 April 2013 149th Annual General Meeting Zurich 02 May 2013 First Quarter 2013 results Conference call 08 August 2013 Second Quarter 2013 results Confere
Slide 21: 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