Zurich Insurance Group Ltd · SIX:ZURN

Zurich Insurance — Investor Day (November 2024)

145 slides from Zurich Insurance's investor day presentation, Nov 21, 2024

Slide 1: Winning in the market
Winning in the market Investor Day 2024 Zurich Insurance Group London November 21, 2024 © Zurich
Slide 2: Agenda
Agenda Investor Day 2024 Time Topic Speakers Time Topic Speakers 3 simultaneous sessions 09:00-09:30 Strategy Mario Greco 13:15-14:00 Break-out session + Q&A (North America – K. Terryn, A. Wells, D. Hoch) 09:30-9:50 Commercial insurance Sierra Signorelli 14:00-14:10 Break 09:50-10:10 Farmers Raul Va
Slide 3: Winning in the market – Mario Greco
Winning in the market Zurich Insurance Group November 21, 2024 Mario Greco Group Chief Executive Officer © Zurich
Slide 4: 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 5: 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 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: Stepping up the ambition for all our businesses
Strategy Stepping up the ambition for all our businesses Zurich today Zurich in 2027 Balanced and diverse global business, with leading balance sheet strength and cash conversion Leading commercial insurer, with a strong underwriting culture Expanded Commercial franchise with stable margins across t
Slide 8: A changing external context offers new opportunities for us
Strategy A changing external context offers new opportunities for us External context Strategic response • Tighten underwriting discipline and risk selection Cement in existing lines Commercial Normalization underway following the COVID-19 • Intensify focus on talent in claims and underwriting under
Slide 9: Commercial insurance margins remain very attractive
Strategy Commercial insurance margins remain very attractive Pre COVID-19 COVID-19 years Current and next plan environment AY combined ratio excl. Cats (%)1 AY combined ratio excl. Cats (%)1 AY combined ratio excl. Cats (%) Based on IFRS 172 97.6% 97.0% 96.1% 95.5% 90.9% 90.7% 89.5% ~90% 88.2% 88.2%
Slide 10: Underwriting discipline and improved mix will continue to drive performance in Commercial Insurance
Strategy Underwriting discipline and improved mix will continue to drive performance in Commercial Insurance Cement underwriting discipline Intensify focus on underwriting and Prioritize targeted growth while and risk selection in existing lines claims capabilities maintaining strong profitability D
Slide 11: A range of actions are underway to improve underwriting profitability in Retail
Strategy A range of actions are underway to improve underwriting profitability in Retail Accelerate the focus on Achieve excellence in pricing and Return to long-term level of customer loyalization claims across geographies profitability Retail and SME - tNPS (pts) Improve profitability of underperf
Slide 12: In Life, we are stepping up the growth rate of Protection GWP
Strategy In Life, we are stepping up the growth rate of Protection GWP A large and profitable business… …covering biometric risks, through Global presence a balanced channel mix FY-23 GWP (%)1 Market share (%) +8% +6% CAGR Mortality CAGR Santander JV 22% 15% Morbidity ~9.1 Accident & Health 8.1 8.5
Slide 13: Farmers' transformation is laying a strong foundation for growth
Strategy Farmers’ transformation is laying a strong foundation for growth Exceeded ambitions set in November 2023 Solid foundations to enable sustainable growth -6ppts Farmers Exchanges3 GWP (USDbn)4 108.0% ~99.0% 93.5% Return to ~5% Surplus profitability1 5% CAGR Organic CAGR surplus 27 ~28 generat
Slide 14: 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 15: 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 16: 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 17: Meet tomorrow prepared – Commercial Insurance
Meet tomorrow prepared Investor Day 2024 November 21, 2024 Sierra Signorelli CEO Commercial Insurance © Zurich
Slide 18: Key messages
Commercial Insurance Key messages We are a world-class global commercial insurer with a profitable high-quality portfolio, strong technical Market-leading position talent and distinctive capabilities We are targeting GWP of more than USD 10bn in Middle Market by 2027 as we shift our business mix to
Slide 19: Our financial results demonstrate our strategic execution
Commercial Insurance Our financial results demonstrate our strategic execution GWP (USDbn) Combined ratio (%) BOP (USDbn) 6% CAGR 10% CAGR 31.2 97.4 99.7 3.6 29.3 93.9 92.1 92.3 91.4 91.4 28.2 27.6 3.1 24.7 2.8 23.2 2.2 2.0 1.8 1.5 16.4 1.8 FY-191 FY-20 FY-21 FY-22 FY-22 FY-23 HY-24 FY-191 FY-20 FY-
Slide 20: A world-class commercial insurance business
Commercial Insurance A world-class commercial insurance business Customer units Commercial insurance ranking Distinctive capabilities FY-23 Insurance revenue by customer unit (%)1 FY-23 Gross written premiums (USDbn)2 We are • #1 International programs insurer3, truly covering over 200 territories g
Slide 21: Prioritizing targeted growth opportunities while maintaining strong profitability
Commercial Insurance Prioritizing targeted growth opportunities in our financial plan while maintaining strong profitability Key Focus Areas Data-driven granular portfolio management • Delivering profitable growth • Targeted portfolio actions in US Liability, Motor & Crop Cultivating the best techni
Slide 22: Opportunity to accelerate profitable growth in Middle Market
Commercial Insurance We see opportunity to accelerate our profitable growth in Middle Market1 and further shift our customer segment mix Middle Market will grow twice as quickly as We have a proven track record of delivering profitable Corporate, driving favourable mix benefit middle market growth i
Slide 23: Further diversifying our portfolio through mix shift towards Specialties products
Commercial Insurance Further diversifying our portfolio through mix shift towards Specialties1 products Strategic rationale Targeting profitable areas where we see opportunities GWP 2027e v 2023 (% is CAGR)2 Construction 7% FY-23 We see significant opportunity in profitable product 1 A&H 10% FY-27e
Slide 24: Pricing no longer driven by shocks, but by underlying trends
Commercial Insurance Pricing no longer driven by shocks, but by underlying trends 55 9/11 50 45 40 35 Premium changes (%) 30 25 20 Japanese Tsunami, Thai 15 floods, NZ EQ Harvey, Irma, Katrina Maria Commercial Property 10 Commercial Auto 5 Umbrella 0 General Liability Q1 2000 Q1 2001 Q1 2002 Q1 2003
Slide 25: Data-driven granular portfolio management helps shape and steer our portfolios
Commercial Insurance Data-driven granular portfolio management helps deliberately shape and steer our portfolios Our Data Ecosystem Integrating policy, claims, distribution, risk engineering and external data and embedding it in our risk selection and portfolio management approach Portfolio profitab
Slide 26: Intensifying our efforts to cultivate the best technical talent
Commercial Insurance We are intensifying our efforts to cultivate the best technical talent to support execution of our portfolio strategy We have a highly engaged team … … who are supported by our key … and by leveraging AI to simplify People priorities how we work Building talent pipeline for crit
Slide 27: Zurich Resilience Solutions is expanding our reach to commercial customers
Commercial Insurance Zurich Resilience Solutions is expanding our reach to commercial customers # customers with onsite # completed risk # climate onsite and risk assessments improvement actions exposure assessments +22% +33% +208% 2022 2023 2024e 2022 2023 2024e 2022 2023 2024e ZRS creates value th
Slide 28: Deepening relationships and simplifying engagement
Commercial Insurance Deepening relationships and simplifying engagement Delivering higher customer and broker satisfaction Simplifying how customers do business with us Accelerating Digital Connectivity Global Top 4 share of wallet with each of Brokers the largest global brokers1 GWP for Internation
Slide 29: Key messages
Commercial Insurance Key messages We are a world-class global commercial insurer with a profitable high-quality portfolio, strong technical Market-leading position talent and distinctive capabilities We are targeting GWP of more than USD 10bn in Middle Market by 2027 as we shift our business mix to
Slide 30: Delivering transformation, strong foundation for growth – Farmers
Delivering transformation, strong foundation for growth Farmers Group, Inc. Investor Day 2024 November 21, 2024 Raul Vargas CEO Farmers Group, Inc.
Slide 31: Key messages
Farmers Key messages Farmers Exchanges’1 top ten market position in the U.S. personal lines market is driven by a customer- Leading market position centered, agent-powered strategy focusing on customers’ protection needs Reducing expenses, addressing Cat exposures and targeted underwriting actions r
Slide 32: A leading U.S. personal lines player with a unique business structure
Farmers Exchanges1 A leading U.S. personal lines player with a unique business structure A major U.S. personal lines player nationwide Stable contribution from fee-based earnings FY-23 ranking and market share (%)2 Farmers Exchanges1 North East Carry underwriting risk and handle claims, as well as o
Slide 33: Large and diverse distribution footprint with diversified product mix
Farmers Exchanges1 Large and diverse distribution footprint with diversified product mix FY-23 Direct Written Premium FY-23 Direct Written Premium Main distribution channels by line of business (%) by distribution channel (%) Farmers Exchanges1 8% 1% 11% ~9,800 exclusive agents 14% 17% Independent a
Slide 34: Decisive management actions accelerated return to profitability
Farmers Exchanges1 Decisive management actions accelerated Farmers Exchanges’ return to profitability Actions communicated at Investor Key initiatives over-delivered Status update2 Update 20232 -15ppts Management actions A Favorable rate environment in 108.0% combination with targeted A underwriting
Slide 35: Over-delivering on rate, underwriting and claims initiatives
Farmers Exchanges1 A Over-delivering on rate, underwriting and claims initiatives Targeted actions by State Portfolio actions taken Claims leakage improvement GWP2 (USDbn) and CoR: Average FY-18 to FY-22 • Achieved sustainable profitability in The percentage of reduction in claims that California, o
Slide 36: Over-delivered on 3-year expense initiatives
Farmers Exchanges1 B Farmers has over-delivered on 3-year expense initiatives and will continue to seek additional efficiencies Cost reduction via Lower commission Vendor savings Automation of workforce optimization expenses transactional work and processes leveraging AI solutions Investor Update 20
Slide 37: Rate adequacy, expense actions and exposure management support competitive pricing
Farmers Exchanges1 C Achieving rate adequacy, expense actions and exposure management, support future competitive pricing Farmers Auto earned premium vs. Farmers Home earned premium Cat PML actions on track loss cost change (%)2 vs. loss cost change (%)2 Probable maximum loss (PML) reduction (USDbn)
Slide 38: Surplus ratio exceeds target range, providing financial flexibility
Farmers Exchanges1 Farmers Exchanges1 surplus ratio exceeds target range, providing financial flexibility Surplus ratio exceed target range Improved financial flexibility Stakeholder recognition Target • Improved reinsurance Cat range Sustainable organic pricing for 2025 34 - 38% surplus generation
Slide 39: Returned to profitability, achieved healthy surplus and laid the foundation for growth
Farmers Exchanges1 Farmers Exchanges1 has returned to profitability, achieved healthy surplus and laid the foundation for growth Our transformation Growing top-line Returned to profitability Surplus above target range Favorable rate environment Farmers Exchanges GWP (USDbn) Farmers Exchanges CoR (%)
Slide 40: Future Farmers – sustainable growth trajectory
Farmers Exchanges1 Future Farmers – a sustainable growth trajectory underpinned by transformed agency economics Average annual growth rate of 5% Growing Policies In Force (PIF) Our Plan: Accelerating growth in over the next 3 years Exclusive Agency channel Farmers Exchanges GWP (USDbn) ~5% Growth to
Slide 41: Distinctive value proposition for customers and agents
Farmers Exchanges1 1 Distinctive value proposition for customers and agents Customer value proposition Comprehensive product suite Exclusive Agent value proposition Auto Specialty Home The best of all worlds: • Farmers agency owners have been building bonds with customers in local Business • The bra
Slide 42: Revamped agency distribution management and incentives
Farmers Exchanges1 2 Revamped agency distribution management and incentives Enhanced accountability of Layers between management and agents Enhanced data driven distribution management agency management: -3 • Reduce reporting layers and 7 • Evaluate agents to identify best practices in terms of prod
Slide 43: Commitment to double agency net income in two years
Farmers Exchanges1 3 Commitment to double agency net income in two years to drive PIF and GWP growth Increased return on investment (ROI) for the median agency owner Increased agency income Agency net income ~2x opportunities F Drives both retention 40% from and new business expense D Competitive pr
Slide 44: Maximize retention and new business growth while reducing agency burden
Farmers Exchanges1 Maximize retention and new business growth opportunities, while reducing the burden of agencies by 14 million hours D Competitive pricing E Improved value proposition F Ease of doing business Main actions: Main actions: Hours Area Example saved Agency revenue uplift from competiti
Slide 45: Line of sight to Policy in Force growth
Farmers Exchanges1 We have line of sight to Policy in Force (PIF) growth Accelerating growth in PIF Path to sustainable Exclusive Agency channel EA PIF growth 1. Distinctive value PIF growth proposition for customers and agents +10% new business growth 2. Revamped distribution +2ppts retention manag
Slide 46: Key messages
Farmers Key messages Farmers Exchanges’1 top ten market position in the U.S. personal lines market is driven by a customer- Leading market position centered, agent-powered strategy focusing on customers’ protection needs Reducing expenses, addressing Cat exposures and targeted underwriting actions r
Slide 47: Delighting and Loyalizing Customers
Delighting and Loyalizing Customers Investor Day 2024 Conny Kalcher Group Chief Customer Officer November 21, 2024 © Zurich
Slide 48: Key messages
Customer Key messages Transforming Zurich with We significantly progressed our customer-centric strategy and the capabilities to further accelerate have tangible results been built. We added 8.8m net new retail customers, with higher TNPS and brand consideration Delivering value and driving Our bran
Slide 49: Driving business transformation and growth through customer focus
Customer Driving business transformation and growth through customer focus Corporate strategy Customer strategy To become the insurer of choice by loyalizing our customers Defined Customer KPIs drive organizational focus and performance November 21, 2024 Investor Day 49 © Zurich
Slide 50: Transformation to establish Zurich as the insurer of choice
Customer | Retail and Commercial We have significantly progressed our transformation to establish Zurich as the insurer of choice Our customer strategy aims at increasing engagement and loyalty through four levers Drive brand consideration Ensure customer experience Build the connected Transform sal
Slide 51: Our customer focused strategy delivers tangible results
Customer | Retail Our customer focused strategy delivers tangible results Top line growth above peers Balancing rate and retention Higher customer satisfaction Peers Retail GWP % growth 2023 vs. 20221 Retail – Customer retention Retail and SME - tNPS 8.9% 85% 84% 86% 7.8% +7pts 5.6% 4.1% 60 57 53 Zu
Slide 52: Performance in Commercial benefits from customer initiatives
Customer | Commercial Performance in Commercial benefits from continued delivery of customer initiatives Commercial GWP growth1 Middle Market GWP growth2 Premium retention (%) Strong traction in customer (USDbn) (USDbn) satisfaction (tNPS)3 +2pts +3.0% +5.2% +0.4ppt 14.0 14.5 4.1 87.9% 88.3% 3.9 FY-
Slide 53: Zurich brand strategy delivers strong results
Customer | Retail Zurich brand strategy delivers strong results with increased customer acquisition and satisfaction Increased brand visibility helps Higher Brand Consideration rank Growing Brand Value2 drive customer acquisition % of markets1 Retail customers (m) +13% 74.4 65.6 8.8 13% 13% 20% +35%
Slide 55: Retail Customer Experience standards implementation is delivering benefits
Customer | Retail Retail Customer Experience (CX) standards implementation is delivering benefits to customers Digitising Customer Experience CX Vision Build a meaningful On-demand WhatsApp claims Faster quotes and higher quality advisory relationship Closer to customers in their preferred channel L
Slide 56: Improving market-leading Commercial customer experience
Customer | Commercial We continue to improve our market-leading Commercial customer experience Global broker assessment1 Strong results from broker and Faster response times drive (% of standards) customer surveys customer satisfaction Underwriters respond to broker quote requests within 24 hours To
Slide 57: Connecting directly with customers and driving engagement
Customer | Retail Connecting directly with customers, improving service delivery and driving engagement Insurance at your fingertips Outstanding customer experience Customer and business impact +7m registered users on Zurich Zurich One continuous to deliver customer portals and apps globally outstan
Slide 58: Transforming culture through extensive capability building
Customer | Retail Transforming our culture and increasing our customer focus through extensive capability building Award-winning Zurich Customer Academy Customer Empathy training at frontline creates 67% of Zurich employees dedicated >219K learning hours to stronger emotional connection with our cus
Slide 59: Customer Centricity program transforms sales and distribution
Customer | Retail The Customer Centricity program transforms sales and distribution leading to customer retention and policy density improvements Loyalty strategy execution Accelerated rollout continues and is showing significant impact Lead generation including 'Next Best Action' using advanced ana
Slide 60: Growing Core and Connected customer layers through loyalty strategy
Customer Growing our Core and Connected customer layers through data driven loyalty strategy and state-of-the-art tools Zurich Loyalty Pyramid (EMEA) Core and Connected create higher value vs. Transactional High conversion 8.51m 8.54m of lower-tiered customers customers customers to the 3-8% Connect
Slide 61: Accelerating focus on customer loyalization with new initiatives
Customer | Retail and Commercial For the next strategic cycle, we accelerate the focus on customer loyalization, adding new transformational initiatives Life • Develop customer value Accelerate Protection propositions and CX for Life and grow Protection, SME and Middle Market • Introduce multi-app e
Slide 62: Globally connected, customer-directed, multi-app ecosystem
Customer | Connected Customer Engagement We are building a globally connected, customer-directed, multi-app ecosystem to grow our business Multi-app eco system Multi-app experience Customer and business impact • Access: seamless login and account Core insurance management experience • Benefits: driv
Slide 63: Customer data engine designed to drive business impact
Customer | Retail Customer data engine designed to drive business impact Customer Intelligence Platform From reporting tool to activation engine Continuous consolidation and enrichment of >5bn data points Performance Customer Sales and Underwriting Management Insights Distribution tNPS Customer Loya
Slide 64: Evolving Customer KPIs
Customer | Retail We continue to drive results through evolving Customer KPIs Transactional NPS Brand Consideration Net Revenue Retention (NRR %) New KPI 2025-27 • People helpfulness and • Emotional connection • First in the industry to introduce professionalism Net Revenue Retention • Trust • Ease
Slide 65: Net Revenue Retention KPI measures customer strategy value creation
Customer As an industry first, we measure and drive customer strategy value creation through the Net Revenue Retention KPI Net Revenue Retention (NRR %) Directly link loyalty to financials Identify the levers for increasing Full Year Lost Retained Retained Retained Retained New Full Year+1 loyalty a
Slide 66: Key messages
Customer Key messages Transforming Zurich with We significantly progressed our customer-centric strategy and the capabilities to further accelerate have tangible results been built. We added 8.8m net new retail customers, with higher TNPS and brand consideration Delivering value and driving Our bran
Slide 67: Ambition in action – Finance
Ambition in action Investor Day 2024 November 21, 2024 Claudia Cordioli Group Chief Financial Officer © Zurich
Slide 68: Key messages
Key messages Strong franchise, A strong business with industry leading financial strength, a conservatively managed balance sheet, superior value creation delivering consistent financial performance The new targets are the result of a strong set of bottom-up business unit led initiatives, which rely
Slide 69: We have delivered superior value to our shareholders
Finance We have delivered superior value to our shareholders Total shareholder return 2016-2024 to date (USD)1 Strong delivery of dividend growth Annualized TSR (%) Dividends and buybacks (CHFbn)2 Total FY-16 to FY-23 (CHFbn) 20% 1.0 1.8 1.1 3.9 Zurich 15% Chubb Travelers +6% CAGR 3.8 3.5 Generali 3
Slide 70: Profit mix skewed towards fee result, low exposure to capital markets volatility
Finance Profit mix is skewed towards fee result, with low exposure to capital markets volatility and structurally high ROE Fee result, FY-23 (% of operating profit)1 Industry-leading ROE, FY-23 (%)2 28% 26% 23% 17% 15% 15% 14% 14% 11% 9% 5% 1% 0% 0% Zurich Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Z
Slide 71: Managing earnings volatility by controlling NatCat exposure
Finance In P&C, we manage earnings volatility by controlling NatCat exposure and enhancing our risk assessment capabilities Reduced catastrophe exposure against a backdrop U.S. hurricane exposure of inflation and increased modelling scope Indexed (FY-21 = 100) 120 -20% 115 110 105 100 95 90 FY-21 FY
Slide 72: Reserve strength and consistent reserve releases
Finance The strength of our reserves benefits from our conservative approach and results in consistent reserve releases Consistent reserving Allowance for limited Proactively reflecting Consistent positive PYD approach historical experience liability loss trends Split by driver, HY-24 (%) Paid-to-ul
Slide 73: Attractive Life business driven by capital light Protection earnings
Finance We have a highly attractive Life business driven by predictable, capital light Protection earnings BOP contribution by line of Protection top-line and BOP Capital light; short payback period business (%)1 contribution, FY-23 (USDbn)1 8.5 1.3 14% Margin (%) Short-term Technical No SST capital
Slide 74: Building on three cycles of successful delivery
Finance We are building on three cycles of successful delivery Targets1 2016-2019 2020-2022 2023-2025 2025-2027 Business targets 2025-2027 BOPAT ROE BOPAT ROE BOPAT ROE Core ROE ROE2 >12% >14% >20% >23% • BOP >USD 4.2bn in FY-27 Commercial • Middle Market GWP >USD 10bn in FY-27 EPS - ≥5% 8% Core EPS
Slide 75: Core EPS CAGR target of >9% over 2025-2027
Finance Core EPS CAGR target of >9% over 2025-2027, driven by a combination of higher portfolio quality and business growth Core EPS by driver (USD) Contribution to Core EPS growth Combined ratio benefiting from improved ~40% portfolio quality, efficiency and profitability actions on underperforming
Slide 76: P&C to benefit from portfolio quality improvement and volume growth
Finance P&C to benefit from a combination of portfolio quality improvement and volume growth P&C Commercial BOP (USDbn) P&C Retail BOP (USDbn) FY-24e FY-24e Improved book composition will Restored long term level of Portfolio quality Portfolio quality allow a lower and more sustainable profitability
Slide 77: Life and Farmers to benefit from business growth
Finance Life and Farmers to benefit from business growth Life BOP (USDbn) Farmers BOP (USDbn) FY-24e FY-24e Protection Protection GWP +8% CAGR, stable margins Farmers Exchanges3 GWP growth FMS growth driven by rates and policy count Other Driven by unit-linked contribution; insurance1 Savings & annu
Slide 78: Cash remittances to exceed USD 19bn in 2025-2027
Finance Cash remittances to exceed USD 19bn in 2025-2027; dividend and organic growth the priorities for deployment Cash generation Current year Next financial cycle Unchanged priorities Normalized cash remittances in % of NIAS Cash remittances, FY-24e (USDbn)1 2025e - 2027e (USDbn) for deployment F
Slide 79: Financial flexibility underpinned by strong solvency
Finance Financial flexibility underpinned by strong solvency; leverage within desired range and expected to decline further Financial strength rating Moody’s leverage ratio SST ratio3 Outlook Outlook 224% 27% AA 23.9% Outlook ‘stable’ 20% Floor 160% Aa2 Outlook ‘stable’ FSR1: A+ (superior) Outlook ‘
Slide 80: Continuing to reward our shareholders
Finance We are focused on continuing to reward our shareholders Dividend policy1 Dividend per share (CHF) NIAS2 payout ratio of ~75% 26 Current +6% CAGR 24 floor 22 20 20 19 Dividend increases based on sustainable 17 18 earnings growth Minimum target of prior year level FY-16 FY-17 FY-18 FY-19 FY-20
Slide 81: Key messages
Key messages Strong franchise, A strong business with industry leading financial strength, a conservatively managed balance sheet, superior value creation delivering consistent financial performance The new targets are the result of a strong set of bottom-up business unit led initiatives, which rely
Slide 82: Focused growth – North America
Focused growth Investor Day 2024 November 21, 2024 Kristof Terryn CEO North America © Zurich
Slide 83: Key messages
North America Key messages Strict and disciplined execution of our strategy as well as a strong market environment have led to record Historical performance growth and profitability We have strengthened our business to become simpler, more diversified and less volatile while investing Position of st
Slide 84: Delivered key actions for BOP growth of USD 1.3bn
North America Over the past 3-year cycle, we delivered on key actions to deliver BOP growth of USD 1.3bn Performance drivers from 2020-2023 P&C Business Operating Profit (USDbn) Delivered profitable growth in our targeted growth 1 segments at ~5ppts better CoR than total portfolio Doubled size of ou
Slide 85: Grew GWP by over USD 6bn
North America We grew GWP by over USD 6bn, with >USD 2.5bn coming from targeted growth areas P&C GWP (USDbn) Targeted growth areas +12% CAGR 21.6 20.4 • Middle Market • Canada 17.8 • E&S 15.6 • Specialties2 Targeted growth areas Growth in rest of North America driven by Crop (20% Rest of North Ameri
Slide 86: Portfolio management in Property has helped reduce loss and volatility
North America Portfolio management in Property has helped us reduce loss and lower volatility Portfolio management actions Proprietary tool gives us more Total aggregated Flood on NatCat - Floods granular insights on flood risk Capacity reduced by > USD 1tn From: Total Flood Capacity Traditional riv
Slide 87: The next 3-year cycle will require increased discipline
North America The next 3-year cycle will require increased discipline to grow profitably Accelerate growth in targeted areas (Middle Market incl. E&S, 1 Specialty Products, and Canada), adding over USD 3.5bn of GWP 2 Maintain Large Corporate segment in line with the market Drive rate actions and gra
Slide 88: Accelerating growth in targeted areas, adding over USD 3.5bn of GWP
North America We are accelerating growth in targeted areas, adding over USD 3.5bn of GWP Middle Market segment: Doubling E&S and Large corporate segment: Focus on Specialties Middle Market GWP (USDbn) products2 and Canada (USDbn) +USD 2.0bn +USD 1.6bn 7.1 5.8 1.2 5.0 3.3 4.2 0.8 3.0 0.6 4.6 2.0 3.4
Slide 89: We have built a focused E&S business
North America We have built a focused E&S business, and are investing to grow in this attractive market A USD 115bn market with We built a strong foundation: … which we aim to double attractive profitability A profitable, less volatile book... in the next 4 years E&S grew 3x faster than U.S. P&C mar
Slide 90: Real time granular portfolio management in casualty
North America In addition to driving rate, we are expanding real time granular portfolio management to improve long-term profitability in casualty Strategic ambition Key features Data insights drive profitability Rate and retention by tier Integrated end-to-end view of the book (underwriting, pricin
Slide 91: Portfolio management: Construction example
North America Zurich approach to portfolio management: Construction example Optimized state and class mix Improved terms & conditions Leading in proposition innovation • 75% of business in favorable classes up • We have reduced limits across Casualty. • We invest to address industry loss drivers and
Slide 92: Focus areas
North America Focus areas Shifting overall portfolio Focused growth of Improved margin through to lower volatility, higher over USD 3.5bn in better portfolio margin business Middle Market, management with focus Specialties, and on liability and crop Canada November 21, 2024 Investor Day 92 © Zurich
Slide 94: Zurich Middle Market – 5 years of success
North America Zurich Middle Market – 5 years of success with a foundation for the future Net Underwriters Hired +65% 2024 FY-20 FY-21 FY-22 FY-23 FY-24e Increase in GWP On track to double the portfolio over 5 years FY-20 FY-21 FY-22 FY-23 FY-24e Improvement in CoR -25ppts Legacy offices New geograph
Slide 95: Foundation built on Middle Market expertise, capabilities and distribution
North America A foundation built on Zurich values with Middle Market expertise, capabilities and distribution Strategic Pillars Adapting our organization for success Regional Vice Presidents Deliver holistic industry-specific solutions Underwriting Officers and Property Directors Dedicated IP Junior
Slide 96: A foundation built for the economy of the future
North America A foundation built for the economy of the future and the future of risk Accelerated investment in the growth economy and technology Differentiated Middle Market growth Expanding our Investing in Recruiting and footprint in attractive industries developing top tier untapped fast- with d
Slide 98: Crop focuses on growing MPCI with an optimized portfolio
North America Crop focuses on growing MPCI1 with an optimized portfolio …fixing profitability challenges Zurich is a top 3 Crop insurer… …mainly writing MPCI1 business… in private products Industry DWP2 = USD 18.3bn MPCI1 market share (%) GWP 2023 BOP (USDm) Total Crop CoR 151 101% <95% 21% 12% 19%
Slide 99: Investing for profitable MPCI growth and improving private product CoR
North America We are investing for profitable MPCI growth and are making significant progress on improving private product CoR We act on profitable MPCI growth opportunities and diversify our portfolio… … and are taking actions to fix private products County level Developing dashboard to Private Pro
Slide 100: Making it easier for agents and customers to engage
North America To become the preferred Crop insurer, we are making it easier for our agents and customers to engage with us • Invest in technology solutions offering easy quote and policy processing along Continuously invest in with new services driving accuracy and efficiency user friendly technolog
Slide 101: Key messages
North America Key messages Strict and disciplined execution of our strategy as well as a strong market environment have led to record Historical performance growth and profitability We have strengthened our business to become simpler, more diversified and less volatile while investing Position of st
Slide 103: Key messages
Key messages Life protection is our largest Life business and provides an attractive, predictable revenue stream with Growing life protection growth across all markets We will drive additional value through customer centricity, technical excellence, pricing and in-force Value creation management, al
Slide 104: Life Protection is our largest Life business
Life Protection Life Protection is our largest Life business and provides an attractive, predictable revenue stream Life BOP contribution1 FY-23 by Life Protection Premium FY-23 by Life Protection Premium FY-23 by LoB (%) region (%) distribution channel (%) 8.5bn Key units 3% 14% Zurich 20% 24% 27%
Slide 105: Driving value through customer centricity, technical excellence and distribution
Life Protection We will drive value through customer centricity, technical excellence and strong distribution management Protection GWP (USDbn) Protection BOP Customer Experience contribution (USDbn)1 Improving retention management through AI Focus on empathy through Tone of Voice +8% CAGR Utilising
Slide 107: Life Protection contributes to a profitable and balanced UK portfolio
UK Business Life Protection contributes to a profitable and balanced UK portfolio UK FY-23 GWP (USDbn) UK FY-23 BOP (USDm)1 Comments • Balanced P&C and Life portfolio 19% • Top 5 positions in all target market segments 32% • Strong profitability across both 47% Life and P&C USD 5.8bn USD 579m • Cust
Slide 108: Transformation to deliver a compelling Protection proposition
UK Life Protection Adopted market leading platform Attracted top talent • Secured market leading talent • Built out talented teams Transformation Improved financial performance Increased technical capabilities to deliver a • Increased volume, improved customer • Improved pricing sophistication compe
Slide 109: Group Protection: consistent profitable growth
UK Life Protection Group Protection: Consistent profitable growth through target market expansion and value-added services UK Group Protection GWP (USDm) Recognition Delivery tNPS +12% CAGR ~624 +31 • Group Life and Income Protection sold 581 487 through Employee Benefit Consultants 441 352 399 72 a
Slide 110: Retail Protection: driving significant growth through market-leading propositions
UK Life Protection Retail Protection: Driving significant growth through market- leading propositions whilst maintaining profitability UK Retail Protection GWP (USDm) UK Retail Term Protection PVNBP Delivery (USDm)2 +6% CAGR • Accelerating growth in Term Protection 564 ~598 82 474 505 526 78 77 • Pr
Slide 111: Retail Protection: enhanced propositions through broadened distribution
UK Life Protection Retail Protection: Enhanced propositions through broadened distribution accelerates growth Enhanced propositions Broadened distribution Increasing market share Proposition quality awards New panel positions including UK Retail standalone Term Protection market share (%)2 >10% • Li
Slide 112: UK Life Protection outlook
UK Life Protection UK Life Protection outlook UK Protection GWP (USDbn) UK Protection NB CSM (USDm) Drivers of future growth +9% CAGR +11% CAGR • Consolidating top 3 position in total UK protection market (combined Retail and Group) ~1.2 1.1 79 ~85 • Group Protection - expansion into 1.0 68 SME segm
Slide 113: Zurich Santander: Life Protection
Zurich Santander: Life Protection Investor Day 2024 Claudio Chiesa CEO Zurich Santander 113 © Zurich
Slide 114: Zurich Santander has operated in LatAm since 2011 through an exclusive JV
Zurich Santander Zurich Santander has operated in 5 LatAm countries since 2011, through an exclusive joint venture with Banco Santander Exclusive 25-year joint venture Exceptional track-record Largest bancassurance company in Latin America GWP (USDm2 - 100% of JV) 51% Life Banc- Life 49% +7% CAGR 2,
Slide 115: Life protection sales growing strongly at stable margins
Zurich Santander Zurich Santander’s Life protection sales have been growing strongly at stable margins Protection is the main BOP driver… … and growing at double-digits… … at stable combined ratio Life BOP (USDm)1 Protection GWP (USDm – 100% of JV)1 Protection CoR – PAA (%) +11% CAGR 324 +10% CAGR 2
Slide 116: Leveraging data, value propositions and new channels
Zurich Santander Leveraging data, value propositions and new channels to sustain our track record and enhance customer experience Leverage data Expand sales channels Complete value proposition New business (NB) with use of data (USDm) New business (NB) in alternative channels (USDm) Savings net infl
Slide 117: Transformational initiatives to drive customer loyalization
Zurich Santander Implementing transformational initiatives to drive customer loyalization Pre-Sale Collections Renewal • Customer • Flexible payment • Proactive segmentation methods for the communication • Lead optimization Sale & Onboarding customer Claims to customers with Retention • Advisory • C
Slide 118: Brazil has consistently grown over time
Zurich Santander Brazil has consistently grown over time, delivering innovative solutions to meet customers’ needs ZS Brazil is >50% of the business Retention >30% retention effectiveness BOP (USDm)1 tNPS improvement based on Customer 84% cancellations managed 245 (vs. 41% prior year) 47% 48% 200 72
Slide 119: Continue growth trajectory with data and customer experience
Zurich Santander Continue growth trajectory, supported by intelligent use of data and improving the customer experience Zurich Santander GWP (USDbn)1 Zurich Santander BOP (USDm)1 Comments (100% of JV) (51% of JV) • Intelligent use of data • Holistic and integrated customer +8% CAGR +8% CAGR manageme
Slide 120: Key messages
Key messages Life protection is our largest Life business and provides an attractive, predictable revenue stream with Growing life protection growth across all markets We will drive additional value through customer centricity, technical excellence, pricing and in-force Value creation management, al
Slide 121: Digital transformation for Retail growth
Digital transformation for Retail growth Investor Day 2024 November 21, 2024 Ericson Chan, Chief Information and Digital Officer Cara Morton, CEO Zurich Global Ventures © Zurich
Slide 122: Leading with digital platforms
Leading with digital platforms Ericson Chan Chief Information and Digital Officer 122 © Zurich
Slide 123: Key messages
Digital transformation Key messages The digital transformation of the insurance value chain is already unlocking additional financial value and Digital transformation improving customer satisfaction We shifted our tech investment mix to focus on innovation and reduced complexity with an eXchange Acc
Slide 124: Accelerated innovation by reducing complexity, focusing on partnerships and AI
Digital transformation Accelerated innovations by reducing complexity and focusing on digital partnerships, value-added services and AI solutions Reduced connectivity complexity (# of point-to-point connections) Zurich eXchange • Modularized solutions that drive reuse and API Platform and enable mar
Slide 125: 'Build Once Use Many' flexible solutions and global platforms
Digital transformation ‘Build Once Use Many’ flexible solutions and global platforms deployed in majority of our markets, massively scaling our businesses Business platforms for growth (Accelerating) Accelerating business specific platforms for growth built upon modernized foundations Enabling busin
Slide 126: Global AI Platform (ZurichIQ) accelerates AI usage
Digital transformation Global AI Platform (ZurichIQ) accelerates AI usage; a rich set of solutions deployed, enabling growth and profitability #1 ↑ Agent Performance AgentIQ Bot for agents and brokers on understanding life products / services for 8,000 agents/brokers1 ↓ Underwriting risk European Po
Slide 128: AI solutions drive growth opportunities and improve profitability
Digital transformation AI solutions drive growth opportunities and improve profitability, beyond efficiency gains AgentIQ ClaimsIQ VoiceIQ Bot for agents and brokers on comprehensive Claims coverage/bills document check, and Service Center calls analyzer to improve agent products/services to increas
Slide 129: Key messages
Digital transformation Key messages The digital transformation of the insurance value chain is already unlocking additional financial value and Digital transformation improving customer satisfaction We shifted our tech investment mix to focus on innovation and reduced complexity with an eXchange Acc
Slide 130: Zurich Global Ventures: Enabling retail growth
Zurich Global Ventures: Enabling retail growth Cara Morton CEO Zurich Global Ventures 130 © Zurich
Slide 131: Key messages
Zurich Global Ventures Key messages A ‘unique to Zurich’ business and value proposition characterised by our retail focus, delivered through Zurich Global Ventures digital solutions on a global basis AIG travel acquisition1 to expand Zurich’s access to a large and growing market, customer base and S
Slide 132: A unique Zurich value proposition delivered through digital solutions
Zurich Global Ventures A unique Zurich value proposition delivered through digital solutions on a global basis Selected businesses1,2 How we work within Zurich What sets us apart Holistic solutions with global We build and sell retail propositions with reach (Health & Wellbeing, global reach via our
Slide 133: AIG travel acquisition to expand access to a large and growing market
Zurich Global Ventures AIG travel acquisition1 to expand Zurich’s access to a large and growing market, customer base and partner portfolio Access to attractive global travel market Customer and distribution partnership portfolio growth ~USD 20bn global Zurich to serve more than leisure travel marke
Slide 134: Consolidated business to reinforce position as a leader in global travel
Zurich Global Ventures Consolidated business1 to reinforce Zurich’s position as a leader in global travel, expected to deliver strong financial returns Global leadership Value generation4 GWP post-acquisition of ~USD 2bn1,2 Underwriting result Capital light 92-94% Line of 50% 41% North America Zuric
Slide 135: Zurich Cover-More will operate as a global business
Zurich Global Ventures Zurich Cover-More will operate as a global business with full value chain control and support for global distribution partnerships Characteristics of our global platform Importance for Zurich International Service Centers Global deal coordination, meeting needs of large and gl
Slide 136: Leveraging global capabilities to grow partner and customer relationships
Zurich Global Ventures A strategic focus on leveraging our global capabilities to grow partner and customer relationships via value-adding solutions ZGV global capabilities Expanding solutions Value to Zurich • Global travel insurance Globally distributed retail distribution and servicing Safer Jour
Slide 137: Key messages
Zurich Global Ventures Key messages A ‘unique to Zurich’ business and value proposition characterised by our retail focus, delivered through Zurich Global Ventures digital solutions on a global basis AIG travel acquisition1 to expand Zurich’s access to a large and growing market, customer base and S
Slide 138: 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 140: Presenters
Biographies Presenters Mario Greco Sierra Signorelli Group Chief Executive Officer CEO Commercial Insurance Mr. Greco joined Zurich in March 2016 as Group Chief Ms. Signorelli was appointed CEO Commercial Insurance and Executive Officer and member of the Executive Committee. became a member of the E
Slide 141: Presenters
Biographies Presenters Claudia Cordioli Kristof Terryn Group Chief Financial Officer Chief Executive Officer Zurich North America Ms. Cordioli joined Zurich in March 2024 as Group Chief Mr. Terryn has been CEO of Zurich North America since Financial Officer and member of the Executive Committee. Jan
Slide 142: Presenters
Biographies Presenters Alison Martin Tim Bailey Chief Executive Officer EMEA and Life Chief Executive Officer UK Mr Bailey was appointed CEO Zurich UK in January 2021, Ms. Martin joined Zurich in October 2017 as Group Chief Risk having previously held the positions of Chief Operating Officer, Office
Slide 143: Presenters
Biographies Presenters Cara Morton CEO Zurich Global Ventures Ms. Morton is CEO Zurich Global Ventures since February 2024. Ms. Morton joined Cover-More in July 2018 as interim CEO World Travel Protection and then Chief Operating Officer before becoming Cover-More CEO in April 2020. Prior to joining
Slide 144: 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 • Francesco Bonsante +41 44 628 00 68 • Johannes Herholdt +41 44 625 25 53 • Samuel Han +41 44 625 32 57 Investor Relations website • Michèle Matlock +41 44 625 28 50 Fin
Slide 145: Thank you
Thank you Upcoming events • February 20, 2025 – Annual results 2024 • April 9, 2025 – Annual General Meeting 2025 • May 8, 2025 – Update for the three months ended March 31, 2025 • August 7, 2025 – Half year results 2025 • November 6, 2025 - Update for the nine months ended September 30, 2025 © Zuri

Zurich Insurance Group — Investor Day (November 2024) on 6ix

Zurich Insurance — Investor Day (November 2024)

Slide 1: Winning in the market

Slide 2: Agenda

Slide 3: Winning in the market – Mario Greco

Slide 4: 2023-2025 targets largely achieved one year ahead

Slide 5: Key messages

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

Slide 7: Stepping up the ambition for all our businesses

Slide 8: A changing external context offers new opportunities for us

Slide 9: Commercial insurance margins remain very attractive

Slide 10: Underwriting discipline and improved mix will continue to drive performance in Commercial Insurance

Slide 11: A range of actions are underway to improve underwriting profitability in Retail

Slide 12: In Life, we are stepping up the growth rate of Protection GWP

Slide 13: Farmers' transformation is laying a strong foundation for growth

Slide 14: We focus on enabling the net-zero transition while building resilience to evolving risks

Slide 15: We are raising the bar, with a new set of financial and business targets

Slide 16: Key messages

Slide 17: Meet tomorrow prepared – Commercial Insurance

Slide 18: Key messages

Slide 19: Our financial results demonstrate our strategic execution

Slide 20: A world-class commercial insurance business

Slide 21: Prioritizing targeted growth opportunities while maintaining strong profitability

Slide 22: Opportunity to accelerate profitable growth in Middle Market

Slide 23: Further diversifying our portfolio through mix shift towards Specialties products

Slide 24: Pricing no longer driven by shocks, but by underlying trends

Slide 25: Data-driven granular portfolio management helps shape and steer our portfolios

Slide 26: Intensifying our efforts to cultivate the best technical talent

Slide 27: Zurich Resilience Solutions is expanding our reach to commercial customers

Slide 28: Deepening relationships and simplifying engagement

Slide 29: Key messages

Slide 30: Delivering transformation, strong foundation for growth – Farmers

Slide 31: Key messages

Slide 32: A leading U.S. personal lines player with a unique business structure

Slide 33: Large and diverse distribution footprint with diversified product mix

Slide 34: Decisive management actions accelerated return to profitability

Slide 35: Over-delivering on rate, underwriting and claims initiatives

Slide 36: Over-delivered on 3-year expense initiatives

Slide 37: Rate adequacy, expense actions and exposure management support competitive pricing

Slide 38: Surplus ratio exceeds target range, providing financial flexibility

Slide 39: Returned to profitability, achieved healthy surplus and laid the foundation for growth

Slide 40: Future Farmers – sustainable growth trajectory

Slide 41: Distinctive value proposition for customers and agents

Slide 42: Revamped agency distribution management and incentives

Slide 43: Commitment to double agency net income in two years

Slide 44: Maximize retention and new business growth while reducing agency burden

Slide 45: Line of sight to Policy in Force growth

Slide 46: Key messages

Slide 47: Delighting and Loyalizing Customers

Slide 48: Key messages

Slide 49: Driving business transformation and growth through customer focus

Slide 50: Transformation to establish Zurich as the insurer of choice

Slide 51: Our customer focused strategy delivers tangible results

Slide 52: Performance in Commercial benefits from customer initiatives

Slide 53: Zurich brand strategy delivers strong results

Slide 54: © Zurich

Slide 55: Retail Customer Experience standards implementation is delivering benefits

Slide 56: Improving market-leading Commercial customer experience

Slide 57: Connecting directly with customers and driving engagement

Slide 58: Transforming culture through extensive capability building

Slide 59: Customer Centricity program transforms sales and distribution

Slide 60: Growing Core and Connected customer layers through loyalty strategy

Slide 61: Accelerating focus on customer loyalization with new initiatives

Slide 62: Globally connected, customer-directed, multi-app ecosystem

Slide 63: Customer data engine designed to drive business impact

Slide 64: Evolving Customer KPIs

Slide 65: Net Revenue Retention KPI measures customer strategy value creation

Slide 66: Key messages

Slide 67: Ambition in action – Finance

Slide 68: Key messages

Slide 69: We have delivered superior value to our shareholders

Slide 70: Profit mix skewed towards fee result, low exposure to capital markets volatility

Slide 71: Managing earnings volatility by controlling NatCat exposure

Slide 72: Reserve strength and consistent reserve releases

Slide 73: Attractive Life business driven by capital light Protection earnings

Slide 74: Building on three cycles of successful delivery

Slide 75: Core EPS CAGR target of >9% over 2025-2027

Slide 76: P&C to benefit from portfolio quality improvement and volume growth

Slide 77: Life and Farmers to benefit from business growth

Slide 78: Cash remittances to exceed USD 19bn in 2025-2027

Slide 79: Financial flexibility underpinned by strong solvency