Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — 9M 2013 Earnings Presentation
68 slides from Zurich Insurance's earnings presentation, Nov 14, 2013
Slide 1: Results for the nine months to September 30, 2013
Results for the nine months to September 30, 2013 Analysts and Media Presentation November 14, 2013
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: Q3 2013 Results Key Messages
Q3 2013 Results Key Messages Solid operating profit in all core segments Growth in General Insurance and Global Life target markets Farmers Management Services revenues modestly lower but improved Farmers Re result Solvency capital further strengthened in first half 2013 © Zurich Insurance C
Slide 4: Financial highlights
Financial highlights in USD millions 2013 20121 Change for the nine months to September 30 Business operating profit (BOP) 3,567 3,510 2% Net income attributable to shareholders 2,954 2,898 2% General Insurance combined ratio 95.3% 96.3% 1.0pts Global Life new business value2 935 6352 47% Farmers Mg
Slide 5: Business operating profit by segment
Business operating profit by segment in USD millions Q3-13 Q3-121 Change 9m-13 9m-121 Change General Insurance 755 449 68% 2,124 2,085 2% Global Life 318 308 4% 978 966 1% Farmers (incl. Farmers Re) 412 394 4% 1,108 991 12% Other Operating Businesses -230 -178 -29% -683 -650 -5% Total BOP Operating
Slide 6: General Insurance – key performance indicators
General Insurance – key performance indicators in USD millions Q3-13 Q3-12 Change 9m-13 9m-12 Change GWP and policy fees 8,412 8,156 3% 28,182 27,309 3% Rate change1 3.3% 3.8% -0.5pts 3.6% 3.6% 0.0pts Loss ratio 67.4% 70.3% 3.0pts 68.1% 68.5% 0.3pts Expense ratio 27.3% 28.8% 1.4pts 27.1% 27.8% 0.7pt
Slide 7: General Insurance – Rate Change Monitor and GWP performance
General Insurance – Rate Change Monitor1 and GWP performance Rate Change Monitor1 9m-13 Discrete Q3-13 Int’l Total Int’l Total GC NAC Europe Markets GI GC NAC Europe Markets GI Personal Lines n/a n/a 3% 4% 3% n/a n/a 3% 3% 3% Commercial Lines 4% 5% 3% 3% 4% 4% 4% 3% 2% 3% Gross Written Premiums, tra
Slide 8: General Insurance – comparison of loss ratio
General Insurance – comparison of loss ratio 9m-13 9m-12 Loss ratio development 1.5pts Discrete quarters improvement 68.5% Underlying loss ratio 68.1% 75.5% 70.3% 69.4% 67.5% 67.6% 67.7% 67.4% 61.6% 60.1% 1.9% 0.0% -8.8% -10.0% 2.6% -0.6% USD USD USD USD USD 563m -127m -2,207m 374m -1,896m Major Maj
Slide 9: General Insurance – large losses
General Insurance – large losses Reported Large Losses (in % of NEP) Individual Large Losses From 2010 to 2013 our large losses have increased Other CAT/Weather the combined ratio by 1.1% points. 10.0% Small catastrophes and weather losses have 8.5% 8.9% 8.6% increased slightly but this is inlin
Slide 10: General Insurance – comparison of expense ratio
General Insurance – comparison of expense ratio 27.8% 27.1% Change year-over-year Expense ratio development In percentage points Discrete quarters, in percentage points Other tech 14.3% expenses1 13.6% 28.8 28.7 27.1 27.5 27.2 26.9 27.3 0.0 -0.1 -0.7 -0.6 14.5 14.8 14.2 14.1 13.5 13.5 13.6 13.5% Com
Slide 11: General Insurance – BOP and combined ratio by business
General Insurance – BOP and combined ratio by business Business operating profit Combined ratio (%) CAT3 in USD millions 2013 2012 Change Global 1.1 92.2% for the nine months to September 30 Corporate 90.6% Global Corporate 645 734 -12% NA 97.5% Commercial 96.5% North America Commercial 565 721 -22%
Slide 12: Global Life – key performance indicators
Global Life – key performance indicators in USD millions Q3-13 Q3-12 Change 9m-13 9m-12 Change GWP and policy fees (incl. 6,549 6,422 2% 19,578 21,140 -7% insurance deposits) Net inflows to Assets under Mgmt. -615 155 nm -1,818 1,069 nm Annual Premium Equivalent (APE) 1,148 1,1801 -3% 3,230 2,9731 9
Slide 13: Global Life – Business operating profit: Profit by Source
Global Life – Business operating profit: Profit by Source in USD millions New Business Business in Force Total for the nine months to September 30 2013 2012 2013 2012 2013 2012 Net Expense margin -953 -1,050 1,126 1,111 172 61 Net Risk margin 592 566 592 566 Net Investment margin 428 518 428 518 Oth
Slide 14: Farmers – key performance indicators
Farmers – key performance indicators in USD millions Q3-13 Q3-12 Change 9m-13 9m-12 Change Farmers Management Services Management fees and other related 705 714 -1% 2,113 2,134 -1% revenues Managed gross earned premium margin1 7.5% 7.2% 0.3pts 7.3% 7.3% 0.0pts Business operating profit 363 352 3% 1,
Slide 15: Farmers Exchanges – key performance indicators
Farmers Exchanges1 – key performance indicators in USD millions Q3-13 Q3-12 Change 9m-13 9m-12 Change Gross written premiums 4,799 4,930 -3% 14,276 14,476 -1% Net underwriting result2 30 -113 nm -361 -731 50.6% Expense ratio2 33.3% 32.1% -1.2pts 32.9% 32.9% 0.0pts Loss ratio2 65.4% 69.1% 3.7pts 69.4
Slide 16: Investment performance of Group Investments
Investment performance of Group Investments in USD millions Q3-13 Q3-12 Change 9m-13 9m-12 Change Net investment income 1,471 1,677 -12% 4,659 5,153 -10% Net capital gains/(losses) on investments 470 330 42% 605 988 -39% and impairments1 of which attributable to shareholders 331 154 115% 123 651 -81
Slide 17: Capital model developments
Capital model developments FY-12 to HY-13 movements Main drivers of movements are: 114% +1pts +3pts +3pts 121% Positive impact of USD strengthening against all main currencies and yields rise Positive impact from the economic profit made over Z-ECM Z-ECM the first half year of 2013 FY-12 HY-13
Slide 18: Q3 2013 Results Key Messages
Q3 2013 Results Key Messages Solid operating profit in all core segments Growth in General Insurance and Global Life target markets Farmers Management Services revenues modestly lower but improved Farmers Re result Solvency capital further strengthened in first half 2013 © Zurich Insurance C
Slide 19: Appendix
@ ZURICH Appendix
Slide 20: Business operating profit and net income by quarter
Business operating profit and net income by quarter Business operating profit – by segment GI in USD millions GL 1,287 1,370 1,351 1,279 1,142 Farmers 1,117 986 937 998 Other 854 835 858 807 755 617 515 778 449 573 562 280 27 362 367 348 308 385 308 318 277 290 352 368 380 349 367 390 370 394 411 42
Slide 21: Net investment income on Group Investments by quarter
Net investment income on Group Investments by quarter Net investment income on Group Investments – by segment GI in USD millions GL 1,875 Farmers 1,780 1,799 1,803 Other 1,729 1,746 1,677 1,629 1,614 1,573 721 1,471 705 668 705 658 665 600 594 565 562 525 1,086 1,021 997 1,042 1,003 1,006 992 1,012
Slide 22: Development of shareholders’ equity in Q3 2013
Development of shareholders’ equity in Q3 2013 in USD millions 33,000 405 -473 1,103 35 70 32,062 32,000 30,923 31,000 30,000 29,000 28,000 27,000 26,000 25,000 24,000 Balance as of Net Income Net unrealized Cumulative Net actuarial Other Balance as of © Zurich Insurance Company Ltd June 30, 2013 at
Slide 23: Development of shareholders’ equity in 9m 2013
Development of shareholders’ equity in 9m 2013 in USD millions 35,000 34,505 -1,933 2,954 -2,174 34,000 33,000 -718 -199 -500 127 32,062 32,000 31,000 30,000 29,000 28,000 27,000 26,000 25,000 24,000 Balance as of Dividends to Cumulative Net Income Change in net Cumulative Net actuarial Other Balanc
Slide 24: Business segment BOP-ROE based on RBC-allocated IFRS equity
Business segment BOP-ROE1 based on RBC-allocated IFRS equity for the nine months to September 30 2013 2012 General Insurance 16.5% 16.6% Global Corporate 18.0% 20.9% North America Commercial 13.6% 18.7% Europe 21.4% 12.3% International Markets 10.8% 13.5% GI Global Functions including Group Reinsura
Slide 25: Solvency calculations
Solvency calculations Solvency ratios in % 3 268 278 261 Z-ECM1 232 206 183 178 185 SST 103 110 114 121 Solvency I FY-11 HY-12 FY-12 HY-13 Z-ECM model position in USD billions HY-13 FY-12 Available Financial Resources (AFR) 43.8 44.0 Z-ECM AFR (after dividend accrual) 2 42.5 41.3 Z-ECM capital requi
Slide 26: Capital management driven by Zurich Economic Capital Model (Z-ECM)
Capital management driven by Zurich Economic Capital Model (Z-ECM) Z-ECM capital actions SST Framework >120% Z-ECM >120% - Consider increased No action required Above target risk taking and/or remedial actions 120% 100% - 120% No actions required as within 190% AA Target range stated objective and e
Slide 27: Z-ECM capital required by segment and risk type as of HY 2013
Z-ECM capital required by segment and risk type as of HY 2013 Capital Allocation: Z-ECM capital required: USD 37.3 billion1 USD 35 billion 10% 10% Other2 ALM/Market risk 8% Farmers1 32% Operational risk 14% 36% Business risk General P&R risk Insurance 51% 3% Re-ins credit risk Global Life 3% Life in
Slide 28: Z-ECM ratio development
Z-ECM1 ratio development in USD billions (rounded) 114% 121% 136% 126% 119% 103% 40 41 43 41 40 38 38 Available to policyholders 35 37 36 35 34 95% 30 30 30 28 27 25 20 15 10 5 RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR 0 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jul. 1 2008 2009 2010 2
Slide 29: Estimation of Available Financial Resources (AFR) as of HY 2013
Estimation of Available Financial Resources (AFR) as of HY 2013 in USD billions (rounded) 50 (2.2) 45 10.5 44.6 40 42.5 35 (1.3) (19.6) 24.1 30 30.9 29.6 25 20 15 10 5 © Zurich Insurance Company Ltd 0 Reported Distributions Net Net Value of in- Financial Total AFR Capital Net AFR shareholder’s share
Slide 30: Solvency ratio sensitivities
Solvency ratio sensitivities Solvency ratio impact1 3 4 5 Z-ECM SST Solvency I 121% HY 2013 206% 261% 119% Interest rate +100 bps 203% 215% 123% Interest rate -100 bps 209% 313% 5 125% Equities +25% 211% 277% 5 117% Equities -25% 201% 245% 105% Credit spreads2 +100 bps 181% © Zurich Insurance Compan
Slide 31: General Insurance - Gross written premiums and policy fees
General Insurance - Gross written premiums and policy fees In USD millions 2013 2012 Change Change for the nine months to September 30 in LC1 Global Corporate 7,319 6,659 10% 10%2 North America Commercial 7,775 7,560 3% 3%2 Europe 9,225 9,424 -2% -3% International Markets 4,327 4,039 7% 17% GI Globa
Slide 32: General Insurance – Rate Change Monitor for European countries
General Insurance – Rate Change Monitor1 for European countries 9m-13 Discrete Q3-13 Int’l Total Int’l Total GC NAC Europe Markets GI GC NAC Europe Markets GI Personal Lines n/a n/a 3% 4% 3% n/a n/a 3% 3% 3% Commercial Lines 4% 5% 3% 3% 4% 4% 4% 3% 2% 3% Europe by country Europe by country Switzer-
Slide 33: Zurich NA rate change vs. industry
Zurich NA rate change vs. industry Rate change ZNA 10% Carrier survey (Towers Watson1) 5% Broker surveys (CIAB) 0% -5% -10% -15% Q3 05 Q3 06 Q3 07 Q3 08 Q3 09 Q3 10 Q3 11 Q3 12 Q3 13 © Zurich Insurance Company Ltd 1 Towers Watson – carrier survey estimated at ZNA mix of business Note: Q3-05 to Q4-08
Slide 34: General Insurance – written rate change Q1-08 through Q3-13
General Insurance – written rate change Q1-08 through Q3-13 Rate change 2008 2009 5 2010 4.2% 4.1% 4.2% 4.3% 4 3.9% 3.9% 3.8% 3.7% 2011 3.1% 3.3% 3.6% 3.7% 3.3% 2012 2.6% 3 2.3% 2.7% 2013 2.1% 2.0% 2 1.7% 1.2% 1 0% -1 -0.7% -2 -2.4% -3 -3.0% -4 Q1 Q2 Q3 Q4 © Zurich Insurance Company Ltd November 14,
Slide 35: General Insurance – BOP and Combined ratio by business
General Insurance – BOP and Combined ratio by business Business operating profit Combined ratio (%) in USD millions 2013 2012 Change Global 96.4% for the three months to September 30 Corporate 90.9% Global Corporate 166 235 -30% NA 97.0% Commercial 98.6% North America Commercial 200 203 -2% 90.2% Eu
Slide 36: Reinsurance program further optimized for nat cat perils
Reinsurance program further optimized for nat cat perils Excess of loss protection Combined Global Cat Occurrence Retention / Aggregate Treaty, USD 150m 30% Co-Participation Optimization based on Global Cat Treaty, USD 500m xs underlying towers 20% our risk-based economic approach, in an overall cos
Slide 37: Development of Reserves for Losses and Loss Adjustment Expenses
Development of Reserves for Losses and Loss Adjustment Expenses (LAE) in USD millions 2013 2012 Net reserves for losses and LAE, as of January 1 57,385 55,341 Net losses and LAE paid -17,379 -16,849 Net losses and LAE incurred 17,157 17,194 - Current year 17,731 17,568 - Prior years1 -574 -373 Forei
Slide 38: Global Life – Regional Profit by Source (1/4)
Global Life – Business operating profit: Regional Profit by Source (1/4) in USD millions North America Latin America Europe for the nine months to September 30 2013 2012 2013 2012 2013 2012 Net Expense margin 55 39 -19 -17 220 94 Net Risk margin 97 80 61 38 340 373 Net Investment margin 34 56 24 29
Slide 39: Global Life – Regional Profit by Source (2/4)
Global Life – Business operating profit: Regional Profit by Source (2/4) in USD millions APME Other Total for the nine months to September 30 2013 2012 2013 2012 2013 2012 Net Expense margin -68 -42 -17 -13 172 61 Net Risk margin 66 55 27 20 592 566 Net Investment margin 12 37 4 5 428 518 Other prof
Slide 40: Global Life – Europe Profit by Source (3/4)
Global Life – Business operating profit: Europe Profit by Source (3/4) in USD millions UK Germany Switzerland for the nine months to September 30 2013 2012 2013 2012 2013 2012 Net Expense margin 24 24 236 146 6 -6 Net Risk margin 77 106 51 54 84 95 Net Investment margin 24 38 121 136 104 117 Other p
Slide 41: Global Life – Europe Profit by Source (4/4)
Global Life – Business operating profit: Europe Profit by Source (4/4) in USD millions Ireland Spain Rest of Europe for the nine months to September 30 2013 2012 2013 2012 2013 2012 Net Expense margin -53 -70 44 39 -37 -41 Net Risk margin 56 49 48 48 23 19 Net Investment margin 5 5 29 28 71 67 Other
Slide 42: Global Life – new business by pillar
Global Life – new business by pillar in USD millions NBV NBV1 Change APE APE1 Change for the nine months to September 30 2013 2012 in LC2 2013 2012 in LC2 Bank Distribution 322 94 nm 962 339 nm IFA/Brokers 197 162 24% 699 697 1% Agents 143 99 45% 321 290 10% Total Retail Pillars 662 355 90% 1,981 1,
Slide 43: Global Life – new business by region/country
Global Life – new business by region/country in USD millions NBV NBV Change APE APE Change for the nine months to September 30 2013 20121 in LC2 2013 20121 in LC2 North America 86 76 13% 119 88 35% Latin America 280 78 nm 863 654 35% Of which: Zurich Santander 207 0 n/a 599 0 n/a Europe 361 303 18%
Slide 44: Global Life - Assets under Management
Global Life - Assets under Management1 AuM increased marginally by 3% compared to January 1, 2013 US dollar basis Split of AuM Development of AuM in USD billions in USD billions 260 254 30 28 Balance as of Jan 1, 2013 254 113 113 Inflows 20 Outflows -22 118 112 Market movements and Other2 8 Currency
Slide 45: Farmers Management Services – key performance indicators
Farmers: Farmers Management Services – key performance indicators in USD millions 2013 2012 Change for the nine months to September 30 Management fees and other related revenues 2,113 2,134 -1% Management and other related expenses -1,089 -1,110 2% Gross management result 1,023 1,024 0% Managed gros
Slide 46: Farmers Re – key performance indicators
Farmers: Farmers Re1 – key performance indicators in USD millions 2013 2012 Change for the nine months to September 30 Gross written premiums2 3,094 3,382 -9% Net underwriting result -43 -171 75% Combined ratio 101.4% 105.2% 3.8pts Catastrophe impact3 6.9% 6.7% -0.2pts Business operating profit 58 -
Slide 47: Farmers Exchanges – financial highlights
Farmers Exchanges1 – financial highlights in USD millions 2013 2012 6'000 50.0% for the nine months to September 30 48.0% 5'000 46.0% Gross written premiums 14,276 14,476 44.0% 4'000 42.0% Net underwriting result2 -361 -731 40.0% 3'000 38.0% Beginning surplus3 5,626 5,656 2'000 36.0% 34.0% Net surpl
Slide 48: Farmers Exchanges – gross written premiums by line of business (1/2)
Farmers Exchanges – gross written premiums by line of business (1/2) in USD millions 2013 2012 Change for the nine months to September 30 Auto 7,274 7,554 -3.7% of which standard Auto 6,548 6,640 -1.4% of which non-standard Auto1 726 915 -20.6% Homeowners 3,662 3,549 3.2% Business Insurance 1,618 1,
Slide 49: Farmers Exchanges – gross written premiums by line of business (2/2)
Farmers Exchanges – gross written premiums by line of business (2/2) in USD millions Q3-13 Q3-12 Change for the three months to September 30 Auto 2,430 2,571 -5.5% of which standard Auto 2,198 2,279 -3.6% of which non-standard Auto1 231 291 -20.5% Homeowners 1,296 1,278 1.4% Business Insurance 512 5
Slide 50: Farmers Exchanges – premium growth
Farmers Exchanges – premium growth GWP growth1 12% 10.1% 10% 9.1% 8% 6.5% 6.1% 5.7% 5.7% 6% 5.4% 4.7% 4.5% 4.2% 4.1% 4.1% 3.9% 4% 3.1% 2.9% 1.8% 2% 1.5% 1.1% 0.7% 0% 3M 6M 9M FY 3M 6M 9M FY 3M 6M 9M FY 3M 6M 9M FY 3M 6M 9M FY 3M 6M 9M -0.4% -0.6%-0.7% -1.4% © Zurich Insurance Company Ltd -2% ‘08 ‘09
Slide 51: Farmers Exchanges – policies in force (1/2)
Farmers Exchanges – policies in force (1/2) in thousand policies Sept 2013 9m-13 2012 Ending Change Ending # % Auto 10,779 -809 -7.0% 11,588 of which standard Auto 9,862 -588 -5.6% 10,450 of which non-standard Auto1 917 -221 -19.4% 1,138 Homeowners 4,961 -170 -3.3% 5,131 Business Insurance 581 -45 -
Slide 52: Farmers Exchanges – policies in force (2/2)
Farmers Exchanges – policies in force (2/2) in thousand policies Sept. 2013 Q3-13 June 2013 Ending Change Ending # % Auto 10,779 -271 -2.5% 11,049 of which standard Auto 9,862 -203 -2.0% 10,065 of which non-standard Auto1 917 -67 -6.8% 984 Homeowners 4,961 -57 -1.1% 5,018 Business Insurance 581 -14
Slide 53: Farmers Exchanges – combined ratio (1/2)
Farmers Exchanges – combined ratio1 (1/2) for the nine months to September 30 2013 2012 Change Auto 99.6% 105.8% 6.3pts of which standard Auto 99.6% 104.7% 5.1pts of which non-standard Auto2 99.7% 113.6% 13.9pts Homeowners 107.3% 108.2% 0.9pts Business Insurance 110.1% 113.1% 3.0pts of which Busines
Slide 54: Farmers Exchanges – combined ratio (2/2)
Farmers Exchanges – combined ratio1 (2/2) for the three months to September 30 Q3-13 Q3-12 Change Auto 98.8% 103.1% 4.3pts of which standard Auto 98.9% 101.5% 2.6pts of which non-standard Auto2 97.6% 113.7% 16.1pts Homeowners 98.5% 90.8% -7.7pts Business Insurance 108.1% 108.7% 0.6pts of which Busin
Slide 55: Farmers Exchanges – development of the combined ratio
Farmers Exchanges – development of the combined ratio Quarterly combined ratio Incl. CAT1 impact Incl. 17 Catastrophe Incl. Ike & Gustav Events 13 Catastrophe Events 115% Incl. 13 Catastrophe Events 110% Incl. Incl. Rita & Katrina Irene 105% Incl. Excl. Fogel/SoT California settlements wildfires 100
Slide 56: Farmers Exchanges – Competitor Snapshot
Farmers Exchanges – Competitor Snapshot Growth vs. GAAP Combined Ratio – Overall P&C1, 2 Growth NPW % 12 USAA 2 September 2013 GEICO 5 10 June 2013 8 Progressive 6 Nationwide 2 State Farm 2 4 Allstate Liberty Mutual 2 Mercury American Family 2, 4 2 Hartford 0 Travelers Farmers Exchanges3 -2 Combined
Slide 57: Other Operating and Non-Core Businesses – BOP contribution
Other Operating and Non-Core Businesses – Business operating profit contribution in USD millions Q3-13 Q3-12 Change 9m-13 9m-12 Change Other Operating Businesses - Holding and financing -224 -152 -47% -630 -530 -19% - Headquarters -7 -26 73% -53 -120 56% Total Other Operating -230 -178 -29% -683 -65
Slide 58: Zurich’s investment portfolio benefits greatly from diversification
Zurich’s investment portfolio benefits greatly from diversification and is balanced in terms of risk Risk Allocation of Zurich’s investment portfolio As of September 30, 2013 Asset allocation (%) Risk diversification Risk exposure (%)1 and matching (%) 100 Hedge Funds / Liquidity Real Estate Private
Slide 59: Group Investments – debt securities of high credit quality
Group Investments – Zurich’s debt securities are of high credit quality (98.3% investment grade) As of September 30, 2013 Group Investments Debt securities USD 207bn USD 156bn credit rating: AAA 23.6% credit rating: AA 37.7% Other Debt asset securities classes 25% 75% credit rating: A 17.4% © Zurich
Slide 60: Group Investments – debt securities are well balanced
Group Investments – Zurich’s debt securities are well balanced Group Investments - USD 207bn (100%) As of September 30, 2013 Government and government related bonds: USD 76bn (37%) of which: Market/Cost: 103% 39% in General Insurance 98% inv. grade 54% in Global Life 27% AAA 49% AA 3% A
Slide 61: Group Investments – Government bonds well diversified
Group Investments – Government & government related bonds are well diversified Group Investments - USD 207bn (100%) As of September 30, 2013 Government and government related bonds: USD 76bn1 (37%) Market/Cost: 103% of which: 98% inv. grade 39% in General Insurance 27% AAA 54% in Global Life
Slide 62: Group Investments – Eurozone government bonds well diversified
Group Investments – Eurozone government & government related bonds are well diversified Group Investments - USD 207bn (100%) Eurozone Government and government As of September 30, 2013 related bonds: USD 36bn (17%) Market/Cost: 105% of which: Split by credit rating 26% in General Insurance 96% i
Slide 63: Group Investments – Corporate bonds high credit quality
Group Investments – Corporate bonds are of high credit quality Group Investments - USD 207bn (100%) As of September 30, 2013 Corporate bonds: USD 60bn (29%) Market/Cost: 104% Split by industries Split by credit rating 44% Banks, 99% inv. grade including 19%1 covered bonds 15% AAA 9% Utilit
Slide 64: Group Investments – Banks corporate bonds
Group Investments – Banks corporate bonds are of high credit quality and well diversified Group Investments - USD 207bn (100%) As of September 30, 2013 Banks Corporate bonds: USD 26bn (13%) Market/Cost: 105% Split by seniority Split by credit rating 44% Covered bonds 99% inv. grade 46% Senior
Slide 65: Group Investments – MBS/ABS high credit quality
Group Investments – MBS/ABS are of high credit quality Group Investments - USD 207bn (100%) MBS/ABS: USD 20bn (10%) As of September 30, 2013 Market/Cost: 101% 98% inv. grade 37% AAA includes: US MBS: USD 14.3bn (6.9%) Market/Cost: 101% 98% inv. grade; 20% AAA Debt securities US ABS1: USD 3.7bn
Slide 66: Group Investments – US MBS high credit quality
Group Investments – US MBS are of high credit quality Group Investments - USD 207bn (100%) As of September 30, 2013 US MBS: USD 14.3bn (6.9%) Market/Cost: 101% 98% inv. grade 20% AAA Debt of which: securities US “Agency” MBS: USD 9.9bn (4.8%) Market/Cost: 100% 75% 100% AA+ USD 2.3bn backed by
Slide 67: Group Investments – net capital gains / losses
Group Investments – net capital gains / losses Net capital losses/gains on investments and impairments (in P&L) in USD millions Equity of which: impairments Equity Debt in USD millions Debt Other Other 796 800 20 11 600 0 406 400 -6 -5 -4 252 -20 -13 -11 -15 200 114 138 118 132 -40 -29 -31 -28 0 -23
Slide 68: Group investments – movements in net unrealized gains / losses
Group investments – movements in net unrealized gains / losses Change in net unrealized gains / losses on investments incl. in shareholders’ equity1 in USD millions 1'000 119 184 1 0 -46 -242 -83 -49 -172 -129 -1'000 -952 -2'000 Equity -3'000 Debt -3'051 Other -4'000 -3'819 Q1-13 Q2-13 Q3-13 9m-13 T
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