Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — FY2013 Earnings Presentation
17 slides from Zurich Insurance's earnings presentation, Feb 13, 2014
Slide 1: Annual Results 2013
Annual Results 2013 Media Presentation February 13, 2014
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 predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the “Group”).
Slide 3: Martin Senn, Chief Executive Officer
Martin Senn Chief Executive Officer
Slide 4: Solid results underpin high cash returns
Solid results underpin high cash returns BOP NIAS NIAS ROE2 USD 4.7bn USD 4.0bn 12.0% Dividend per share proposal4 For year ended For year ended For year ended 31 December 2013 31 December 2013 31 December 2013 Z-ECM3 Net cash CHF 17 BOPAT ROE1 remittances to be paid in April 2014 10.5% 120% USD 2.9
Slide 5: Drivers of our 2013 performance
Drivers of our 2013 performance Good growth in priority markets and continued rate increases General Most of the portfolio is delivering hurdle returns Insurance Some areas not performing to expectations Strong growth in protection business, mainly in Emerging Markets Global Life Higher ri
Slide 6: Key priorities for 2014
Key priorities for 2014 Group strategy Key priorities for 2014 Prioritizing Corporate: enhancing capabilities, including joint Global Corporate / CLP offering investment in 1 distinctive Commercial: enhancing capabilities in NAC, leveraging predictive analytics positions Select retail: driving
Slide 7: Vibhu Sharma, Interim Chief Financial Officer
Vibhu Sharma Interim Chief Financial Officer
Slide 8: Business operating profit by segment
Business operating profit by segment in USD millions Q4-13 Q4-121 Change 2013 20121 Change General Insurance 736 27 nm 2,859 2,112 35% Global Life 294 385 -24% 1,272 1,351 -6% Farmers (incl. Farmers Re) 408 411 -1% 1,516 1,402 8% Other Operating Businesses -356 -260 -37% -1,039 -910 -14% Total BOP O
Slide 9: Reconciliation from BOP to NIAS
Reconciliation from BOP to NIAS in USD millions Q4-13 Q4-121 Change 2013 20121 Change Business Operating Profit 1,113 573 94% 4,680 4,084 15% BOP attr. to Non-contr. int. 66 80 -18% 288 164 76% Net capital gains/losses 578 947 -39% 1,143 1,278 -11% Restructuring provisions2 -212 -72 nm -250 -211 19%
Slide 10: General Insurance – Key performance indicators
General Insurance – Key performance indicators in USD millions Q4-13 Q4-12 Change 2013 2012 Change GWP and policy fees 8,256 8,301 -1% 36,438 35,610 2%1 Rate change2 4.2% 4.3% -0.1pts 3.7% 3.8% -0.1pts Loss ratio 68.6% 75.5% 6.8pts 68.3% 70.3% 2.0pts Expense ratio 27.4% 28.7% 1.3pts 27.2% 28.0% 0.8p
Slide 11: Global Life – Key performance indicators
Global Life – Key performance indicators in USD millions 2013 2012 Change Change for the years ended December 31 in LC1 GWP and policy fees (incl. insurance 27,095 30,259 -10% -10% deposits) Net inflows to Assets under Mgmt. -2,694 1,431 nm nm Annual Premium Equivalent (APE) 2 4,418 4,767 -7% -6% Ne
Slide 12: Farmers – Key performance indicators
Farmers – Key performance indicators in USD millions Q4-13 Q4-12 Change 2013 2012 Change Farmers Management Services Management fees and other related 697 712 -2.0% 2,810 2,846 -1.3% revenues Managed gross earned premium margin1 7.1% 7.3% -0.2pts 7.2% 7.3% -0.1pts Business operating profit 340 369 -
Slide 13: Investment performance of Group Investments
Investment performance of Group Investments in USD millions Q4-13 Q4-12 Change 2013 2012 Change Net investment income 1,582 1,629 -3% 6,240 6,782 -8% Net capital gains/(losses) on investments 552 1,213 -54% 1,157 2,201 -47% and impairments1 of which attributable to shareholders 465 1,037 -55% 588 1,
Slide 14: Cash and capital
Cash and capital Net cash remittances Key messages in USD billions 3.7 3.5 Strong FY-13 net cash remittances, materially 2.9 unchanged from Investor Day 2.8 2.1 disclosure 2.6 2.4 Central liquidity buffers 1.4 increased in all years presented 0.6 0.7 0.6 Picture excludes large positive 0.6 one
Slide 15: Outlook for 2014
Outlook for 2014 Improved combined ratio1 General Headwinds from low yields should be a much smaller issue than in 2013 Insurance Non-tech expenses likely to be higher, and hedge fund gains lower Growth in risk margin, slower decline in investment margin Global Life Continued strong perfor
Slide 16: Summary
Summary Solid operating profit in all core businesses Good growth in priority GI and Life markets, Farmers continues transition Strong cash remittances and capital position underpin CHF 17 per share dividend proposal 2014 priorities driven by new strategy © Zurich Insurance Company Ltd February 13,
Slide 17: Q&A
Q&A Martin Senn, Chief Executive Officer Vibhu Sharma, Interim CFO Mike Kerner, CEO General Insurance Kristof Terryn, CEO Global Life Jeff Dailey, CEO Farmers
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