Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Zurich Financial Services — H1 2004 Earnings Presentation
13 slides from Zurich Insurance's earnings presentation, Aug 19, 2004
Slide 1: Half Year Results Reporting 2004
Half Year Results Reporting 2004 Zurich, August 19, 2004
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 prof
Slide 3: Agenda
Agenda • Introduction and Overview James J. Schiro • Half year results 2004 Patrick O’Sullivan • Q&A © Zurich Financial Services - Half Year Results Reporting 2004 3
Slide 4: Introduction and Overview
Introduction and Overview James J. Schiro Chief Executive Officer August 19, 2004
Slide 5: Financial highlights
Financial highlights in USD millions HY 2004 HY 20031 Change Gross written premiums and policy fees 26,412 25,971 2% Business operating profit 1,948 1,326 47% Net income 1,448 752 93% ROE, annualized 16.8%2 12.1%3 4.7pts Business operating profit ROE, annualized 15.1%2 9.8%3 5.3pts General Insurance
Slide 6: US tort burden tops the list…
US tort burden tops the list… Tort awards in percent of GDP, 1998 (latest available data) UK 0.6% Switzerland 0.9% Spain 1.0% Germany 1.3% 2.4% Italy 1.7% by 2005 US 1.9% 0% 0.4% 0.8% 1.2% 1.6% 2.0% 2.4% Source: Tillinghast-Towers Perrin © Zurich Financial Services - Half Year Results Reporting 2004
Slide 7: … and is inefficient to boot
… and is inefficient to boot More than half of the tort dollar never reaches the victim Claimants' Attorney Fees Defense Costs 17% 16% Economic Loss Non-Economic Awards Loss Awards 20% 22% Administration 25% © Zurich Financial Services - Half Year Results Reporting 2004 7
Slide 8: Half year results 2004
Half year results 2004 Patrick O’Sullivan Group Finance Director August 19, 2004
Slide 9: General Insurance key performance indicators
General Insurance key performance indicators Business Operating Profit Combined ratio (%) 1 98.8 in USD millions HY 2004 HY 2003 Change Total 96.7 NA Corporate 405 468 -13% NA Corp. 96.3 97.9 NA Consumer 92 57 61% 98.5 NA Cons. Continental Europe 412 289 43% 97.0 99.0 UKISA 322 224 44% Cont. Eur. 96
Slide 10: Insurance reserves development
Insurance reserves development in USD millions 2004 Reserves for losses and LAE, net, as of January 1 37,013 Net losses and loss adjustment expenses incurred Current year 10,219 Prior periods 656 Net losses and loss adjustment expenses paid -8,451 Other movements (FX and divestments) -914 Reserves f
Slide 11: Life Insurance key EV performance indicators
Life Insurance key EV performance indicators EV operating profit New business margin1 in USD millions HY 2004 HY 2003 Change Total 8.2 9.7 NA Consumer 120 184 -35% NA 27.5 Continental Europe 139 187 -26% Cons. 56.9 UKISA 260 176 48% Cont 5.5 Rest of World 34 36 -6% Europe 9.5 7.4 UKISA Total 553 583
Slide 12: Business operating profit by segment
Business operating profit by segment in USD millions HY 2004 HY 20031 Change General Insurance 1,302 953 37% Life Insurance 453 463 -2% Farmers Management Services 539 513 5% Other Businesses -69 -330 79% of which: Centre -79 -328 76% Corporate Center -277 -273 -1% Total 1,948 1,326 47% 1 Certain re
Slide 13: Half Year Results Reporting 2004 Q&A
Half Year Results Reporting 2004 Q&A
Zurich Financial Services — H1 2004 Earnings Presentation on 6ix