Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Zurich Financial Services — Q1 2006 Earnings Presentation
19 slides from Zurich Insurance's earnings presentation, May 18, 2006
Slide 1: Results Reporting for the Three Months to March 31, 2006
Results Reporting for the Three Months to March 31, 2006 Analyst presentation Zurich, May 18, 2006
Slide 2: 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 predications of or indicate future events, trends, plans or objectives. Forward- looking statements include statements regarding our targeted pro
Slide 3: Financial highlights
Financial highlights in USD millions 2006 2005 Change for the three months ended March 31 Gross written premiums and policy fees 13,434 13,892 -3% Business operating profit 1,359 1,034 31% Net income attributable to shareholders 785 779 1% General Insurance combined ratio 95.1% 96.9% 1.8 pts Global
Slide 4: Key messages
Key messages • A very strong start to 2006 from another quarter of excellent operating performance built on our diversified portfolio. • The 1st quarter result clearly demonstrates our ability to achieve our ROE target and our resilience to significant one off charges. • Our top line reflects growth
Slide 5: Results for the Three Months
Results for the Three Months Patrick O’Sullivan Group Finance Director May 18, 2006
Slide 6: Business operating profit by segment
Business operating profit by segment in USD millions 2006 2005 Change for the three months ended March 31 General Insurance 886 609 45% Global Life 275 170 62% Farmers Management Services 313 306 2% Other Businesses 105 122 -14% Corporate Functions -220 -173 -27% Total 1,359 1,034 31% © Zurich Finan
Slide 7: Gross written premiums and policy fees by segment
Gross written premiums and policy fees by segment in USD millions 2006 2005 Change Change for the three months ended March 31 f/x adj. General Insurance 9,872 10,240 -4% 1% Global Life 3,062 2,837 8% 17% Other Businesses 558 859 -35% -35% Other segments and eliminations -58 -44 nm nm Total 13,434 13
Slide 8: General Insurance key performance indicators
General Insurance key performance indicators Business Operating Profit Combined ratio (%) in USD millions 2006 2005 Change Global 92.8 for the three months ended March 31 Corporate 93.3 Global Corporate 201 180 12% NA 95.3 North America Commercial 317 141 125% Commercial 97.5 Europe General Insuranc
Slide 9: Global Life business operating profit
Global Life business operating profit in USD millions 2006 2005 Change for the three months ended March 31 United States 52 52 0% United Kingdom 63 -19 nm Germany 36 30 20% Switzerland 53 47 13% Rest of Europe 46 45 2% International Businesses 25 15 67% Total 275 170 62% © Zurich Financial Services
Slide 10: Global Life new business indicators
Global Life new business indicators Annual Premiums Equivalent and New Business Profit New Business Profit Margin1 in USD millions APE APE NBP NBP 46.0 for the three months ended March31 2006 2005 2006 2005 USA 50.3 United States 26 25 12 13 7.2 UK -7.7 United Kingdom 186 164 13 -13 Germany 16.6 Ger
Slide 11: Business operating profit by segment
Business operating profit by segment in USD millions 2006 2005 Change for the three months ended March 31 General Insurance 886 609 45% Global Life 275 170 62% Farmers Management Services 313 306 2% Other Businesses 105 122 -14% of which Farmers Re 42 60 -30% Corporate Functions -220 -173 -27% Total
Slide 12: Investment performance of Group investments
Investment performance of Group investments in USD millions 2006 2005 Change for the three months ended March 31 Net investment income 1,914 1,913 0% Net capital gains on investments and impairments 300 277 8% Net investment result 2,214 2,190 1% Movements in net unrealized gains on invest- ments in
Slide 13: Q&A
@ ZURICH O&A
Slide 14: Appendix
@ ZURICH Appendix
Slide 15: Global Life business operating profit – Rest of Europe
Global Life business operating profit – Rest of Europe in USD millions 2006 2005 Change for the three months ended March 31 Italy 11 9 22% Spain 11 11 0% Ireland 14 8 75% Isle of Man 7 10 -30% Other European countries 3 7 -57% Total Rest of Europe 46 45 2% © Zurich Financial Services - Results Repor
Slide 16: Global Life new business indicators – Rest of Europe
Global Life new business indicators – Rest of Europe Annual Premiums Equivalent and New Business Profit New Business Profit Margin1 17.3 in USD millions APE APE NBP NBP Italy 18.3 for the three months ended March31 2006 2005 2006 2005 16.4 Italy 30 12 5 2 Spain 22.9 Spain 22 25 4 6 25.3 Ireland Irel
Slide 17: Farmers Exchanges financial highlights
Farmers Exchanges1 financial highlights 5,000 40% for the three months ended 2006 2005 March 31 4,000 38% Gross written premiums 3,630 3,580 Net underwriting result 160 151 3,000 36% Net surplus change (YTD) 180 184 2,000 34% Ending Surplus 4,810 4,330 Surplus Ratio 38.1% 37.1% 1,000 32% - 30% Q4 Q4
Slide 18: Farmers Exchanges – combined ratio by line of business
Farmers Exchanges – combined ratio by line of business for the three months ended March 31 2006 2005 Change Auto 100.3% 99.1% -1.2 pts Homeowners 85.6% 80.0% -5.6 pts Commercial P&C1 95.5% 97.7% 2.2 pts Workers’ Compensation 94.6% 93.9% -0.7 pts Specialty 88.2% 85.5% -2.7 pts Total 95.0% 94.5% -0.5
Slide 19: Farmers Exchanges – development of the combined ratio
Farmers Exchanges – development of the combined ratio Quarterly combined ratio 115% 110% 105% California wildfires Rita Florida 100% hurricanes Katrina 95% 90% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2002 2003 2004 2005 2006 © Zurich Financial Services - Results Reporting for the Three Mo
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