Zurich Insurance Group Ltd · SIX:ZURN

Zurich Insurance — Debt Investor Presentation (August 2022)

26 slides from Zurich Insurance's debt investor presentation, August 2022

  1. Slide 1: Credit Investor Update

    Credit Investor Update August 2022

  2. Slide 2: Our proposition to investors

    GROUP OVERVIEW Our proposition to investors RESILIENT RESPONSIBLE AND BUSINESS MODEL CLEAR STRATEGY IMPACTFUL BUSINESS A balanced and diverse Focus on customer Tackling climate change global business Industry leading capital Inspiring confidence in a levels with conservatively Simplify digital socie

  3. Slide 3: A global insurer with a highly diversified business by line of business and geography

    GROUP OVERVIEW A global insurer with a highly diversified business by line of business and geography KEY FACTS1 HY-22 BOP BY BUSINESS (%)3 HY-22 BOP BY REGION (%)3 USD 54bn Total revenues (excl. result on UL investments) 8% 22% 8% USD 5.7bn Business operating profit (BOP) 31% USD 5.2bn Net income at

  4. Slide 4: Genuinely global franchise with distinct capabilities

    GROUP OVERVIEW Genuinely global franchise with distinct capabilities NORTH AMERICA #4 in commercial insurance #3 in crop insurance ASIA PACIFIC3 #6 in US personal lines EMEA #5 in P&C, #1 in Life retail through Farmers Exchanges2 #2 in P&C direct #4 insurance company overall Top 3 #4 in P&C, #9 in L

  5. Slide 5: Group fully expects to exceed 2022 targets

    GROUP OVERVIEW Group fully expects to exceed 2022 targets BOPAT ROE (%)1 CASH REMITTANCES EPS GROWTH (%)2 SST (%)4 (USDbn) 262% 7.3% 15.7% >14% >11.5 ≥5% p.a. ≥160% FY-22e FY-21 4.4 FY-20 3.4 HY-22 Target Cumulative Target FY-19 to FY-21 Target HY-22e Target to FY-21 2020-2022 CAGR3 1 Annualized bus

  6. Slide 6: In Retail, increased customer satisfaction drives higher retention and net customer growth

    GROUP OVERVIEW In Retail, increased customer satisfaction drives higher retention and net customer growth HIGHER CUSTOMER SATISFACTION IMPROVED RETENTION2 NET CUSTOMER GROWTH3 ACROSS THE GROUP1 +2% EMEA Latin America +3ppts 56.4m +0 +1 Farmers 0.9m Exchanges4 +8 +2 EMEA +1ppts 55.5m -1 Farmers Asia

  7. Slide 7: Our Retail P&C business delivers a healthy performance and is growing

    PROPERTY & CASUALTY Our Retail P&C business delivers a healthy performance and is growing despite challenging market conditions PORTFOLIO HEALTHY AND STABLE GROWING PORTFOLIO DESPITE PROFITABILITY OVER TIME CHALLENGING MARKET CONDITIONS FY-21 GWP (USDbn) Combined ratio (%)1 GWP growth like-for-like

  8. Slide 8: Disciplined execution drives outstanding financial results in Commercial Insurance

    PROPERTY & CASUALTY Disciplined execution drives outstanding financial results in Commercial Insurance NEP GROWTH (%)1 RATE CHANGE (%)2 CLAIMS TREND (%) COMBINED RATIO (%) North America (HY-22) 13% 13% 14% 13% 100% 97% 100% 94% Property 89% 28% 28% 29% 28% 9% 28% Liability 2% 4% 6% Motor 72% 69% 69%

  9. Slide 9: Strong improvement in Commercial driven by North America

    PROPERTY & CASUALTY Strong improvement in Commercial driven by North America AY COMBINED RATIO (CR) EXCL. CATASTROPHES AND COVID-19 BY REGION (%)1 AY CR EX CATASTROPHES AND COVID-19 BY CUSTOMER UNIT (%)1 +0.2ppts +1.3ppts +1.1ppts -1.5ppts -1.7ppts -2.6ppts 96.7% 96.9% 93.3% 94.6% 91.8% 92.9% 92.5%

  10. Slide 10: Life earnings continue to grow, while exposure to capital intensive savings reduces

    LIFE Life earnings continue to grow, while exposure to capital intensive savings reduces both in new business and in-force APE BY PRODUCT (%) RESERVES BY PRODUCT (%) LIFE BOP (USDm) +13% 903 10% 5% 802 22% 34% 90% 95% 78% 66% HY-21 HY-22 HY-21 HY-222 HY-21 HY-22 Savings & annuity Traditional savings

  11. Slide 11: Special share buyback of ~CHF 1.8bn to offset expected earnings dilution

    LIFE Special share buyback of ~CHF 1.8bn to offset expected earnings dilution from our German life back book transaction1 CAPITAL ALLOCATION AND PRIORITIES Sale of life back book1 ~+8ppts Allocation decisions based SST ratio impact3 on strategic priorities ~USD 20bn Reduction in net reserves2 Signif

  12. Slide 12: A unique business structure

    FARMERS A unique business structure Zurich owned Policyholders owned Farmers Group, Inc. Farmers Exchanges1 Services Provides non-claims and ancillary services to the Exchanges Carry underwriting risk and handle claims, as well as own the (e.g. underwriting, policy administration, premium collection

  13. Slide 13: Large and diverse distribution footprint with diversified product mix

    FARMERS Large and diverse distribution footprint with diversified product mix1 FY-21 DWP BY LINE OF BUSINESS (%) FY-21 DWP BY DISTRIBUTION MAIN DISTRIBUTION CHANNELS CHANNEL (%) Farmers Exchanges exclusive 1% ~11,400 agents 10% 10% 13% 16% ~35,600 Independent agent relationships 47% USD 24.1bn USD 2

  14. Slide 14: Farmers Exchanges gross written premiums increase driven by MetLife integration

    FARMERS Farmers Exchanges1 gross written premiums increase driven by MetLife integration, stable retention levels and focus on rate GWP (USDm) RETENTION (%)2 RATE CHANGE (%) +15% 13,503 82.5 82.9 11,726 6.6 1.4 HY-21 HY-22 HY-21 HY-22 HY-21 HY-22 FY-22e © Zurich 1 For all references to Farmers Excha

  15. Slide 15: Very strong capital position

    INVESTMENT AND CAPITAL MANAGEMENT Very strong capital position FINANCIAL STRENGTH RATING CAPITAL STRUCTURE (%)1 GROUP SWISS SOLVENCY TEST (%)2 AA (very strong) / 280% outlook ‘stable’ 10% 12% 262% 18% 21% 240% 221% 222% 216% 212% Aa3 (excellent) / 204% outlook ‘stable’ 200% 182% 71% 67% A+ (superior

  16. Slide 16: We have a strongly cash generative business reflected in high cash remittance

    INVESTMENT AND CAPITAL MANAGEMENT We have a strongly cash generative business reflected in high cash remittance Property & Non-Core Group Functions Life Farmers Group Casualty Businesses and Operations BOP (USDbn) 14.1 8.7 9.9 0.0 -4.5 28.1 FY-16 to FY-21 NIAS (USDbn) 14.2 6.7 7.7 -0.8 -4.6 23.1 FY-

  17. Slide 17: Low average debt cost and balanced maturity profile

    INVESTMENT AND CAPITAL MANAGEMENT Low average debt cost and balanced maturity profile CDS SPREAD AMONG BEST OF PEERS (BPS)1 BALANCED REFINANCING NEEDS (USDbn)2 600 400 2.2 200 1.9 0.4 0.2 1.7 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1.4 Zurich Axa Generali Allianz 0.7 1.3 1.2

  18. Slide 18: High quality investment portfolio with diversified exposure across sectors and asset classes

    INVESTMENT AND CAPITAL MANAGEMENT High quality investment portfolio with diversified exposure across sectors and asset classes HY-22 GROUP INVESTMENTS (%)1 HY-22 ASSET QUALITY (%) HY-22 NON-FINANCIAL CREDIT BY SECTOR (%) USD 59bn USD 79bn Transportation2 Technology 5% 3% 0% Government 5% 2% 7% 0% Ot

  19. Slide 19: Highly diversified credit and private debt portfolio

    INVESTMENT AND CAPITAL MANAGEMENT Highly diversified credit and private debt portfolio HY-22 RATING OF CREDIT, PRIVATE DEBT SECURITIES (%) USD 24.6bn USD 18.9bn USD 12.9bn USD 7.3bn USD 4.2bn USD 11.2bn 3% 0% 1% 2% 1% 9% 13% 7% 4% 24% 27% 44% 19% 53% 32% 51% 88% 70% 18% 45% 33% 3% 17% 23% 5% 5% 1% 2

  20. Slide 20: We want to be known as one of the most responsible and impactful businesses

    SUSTAINABILITY We want to be known as one of the most responsible and impactful businesses in the world A CHANGING CLIMATE WORK SUSTAINABILITY CONFIDENCE IN A DIGITAL SOCIETY • Science-based CO2 reduction targets • Prioritize current workforce over • Ethical use of data & AI external hires and outso

  21. Slide 21: Delivering on our ambition for a sustainable future

    SUSTAINABILITY Delivering on our ambition for a sustainable future PROGRESS TO-DATE1 98% -21% Use of renewable energy in Reduced CO2e intensity in financed operations corporate emissions vs. 2019 ~USD 300m GWP and policy fees generated • MSCI rating upgraded to -73% +11% from sustainable solutions2

  22. Slide 22: Delivery against our ambition is widely recognized by external assessors

    SUSTAINABILITY Delivery against our ambition is widely recognized by external assessors OUR RATINGS1 OUR LONG-TERM COMMITMENT ‘AAA’ rating1 #3 in insurance group2 Absolute Score of 4.20 (out of 5.0)3 OUR ENGAGEMENT PARTNERS • Founding member of the Net Zero Insurance Alliance ‘A-’ Leadership Level4

  23. Slide 23: Other important information

    Other important information

  24. Slide 24: 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

  25. Slide 25: 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 Björn Bierfreund +41 44 625 23 13 Francesco Bonsante +41 44 628 00 68 Samuel Han +41 44 625 32 57 Michèle Matlock +41 44 625 28 50 EVENTS Patricia Heina +41 44 625 38 44 

  26. Slide 26: Thank you

    Thank you UPCOMING EVENTS • September 27, 2022: IFRS 17 education event (live webcast) • November 10, 2022: Update for the nine months ended September 30, 2022 • November 16, 2022: Investor Day, Zurich © Zurich Insurance Company Ltd

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