Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Zurich Financial Services — 9M 2004 Earnings Presentation
18 slides from Zurich Insurance's earnings presentation, Nov 17, 2004
Slide 1: Results Reporting for the Nine Months to September 30, 2004
Results Reporting for the Nine Months to September 30, 2004 Analyst presentation Zurich, November 17, 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 pro
Slide 3: Agenda
Agenda • Introduction and Overview James J. Schiro • Results for the Nine Months Patrick O’Sullivan • Q&A © Zurich Financial Services - Results Reporting for the Nine Months to September 30, 2004 3
Slide 4: Introduction and Overview
Introduction and Overview James J. Schiro Chief Executive Officer November 17, 2004
Slide 5: Financial highlights
Financial highlights in USD millions for the nine months ended Sept. 30 2004 20031 Change Gross written premiums and policy fees 37,584 36,910 2% Business operating profit 2,522 1,532 65% Net income 1,902 1,410 35% ROE, annualized 13.9% 12.1% 1.8pts Business operating profit ROE, annualized 12.5% 9.
Slide 6: Results for the Nine Months
Results for the Nine Months Patrick O’Sullivan Group Finance Director November 17, 2004
Slide 7: General Insurance key performance indicators
General Insurance key performance indicators Business operating profit Combined ratio (%) in USD millions 1 98.8 2004 2003 Change Total for the nine months ended Sept. 30 98.2 NA Corporate 28 741 -96% NA Corp. 105.3 95.3 NA Consumer 176 92 91% 95.4 NA Cons. Continental Europe 655 456 44% 98.4 95.6 U
Slide 8: 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 16,016 Prior periods 962 Net losses and loss adjustment expenses paid -12,717 Other movements (FX and divestments) -600 Reserves
Slide 9: Life Insurance key new business indicators
Life Insurance key new business indicators Gross new business APE1 New business margin2 in USD millions 2004 2003 Change 10.5 for the nine months ended Sept. 30 Total 8.7 NA Consumer 86 199 -57% NA 61.9 Continental Europe 612 575 6% Cons. 29.9 UKISA 766 566 35% Cont 10.5 Rest of World 148 214 -31% E
Slide 10: Business operating profit by segment
Business operating profit by segment in USD millions for the nine months ended Sept. 30 2004 20031 Change General Insurance 1,508 1,544 -2% Life Insurance 738 576 28% Farmers Management Services 816 772 6% Other Businesses -57 -909 94% of which: Centre -34 -934 96% Corporate Center -483 -451 -7% Tot
Slide 11: Shareholders' equity
Shareholders’ equity in USD millions 21'000 -221 -226 -32 20'000 1,902 - 450 20,357 19'000 19,384 18,934 18'000 Balance as of SOP 03-01 Restated Net income Nominal value Impact of Change in net Balance as of Dec 31, 2003 implement. Balance as of reduction and initial unreal. gains Sept 30, 2004 Dec
Slide 12: Trends in profit improvement initiatives
Trends in profit improvement initiatives 100% 100% 100% 8% 4% 15% 19% Life, AM & other 12% Growth/ 5% Distribution 13% 20% 23% Claims 31% 26% U/W Process 60% 7% Pricing 37% 20% Operating Expenses 2003 2004 2005 © Zurich Financial Services - Results Reporting for the Nine Months to September 30, 2004
Slide 13: Q&A
Results Reporting for the Nine Months to September 30, 2004 Q&A
Slide 14: Appendix
Results Reporting for the Nine Months to September 30, 2004 Appendix
Slide 15: Hurricane losses split by regions
Hurricane losses split by regions Net of reinsurance, before tax in USD millions for the nine months ended Sept. 30 2004 NA Corporate 1 437 Continental Europe Corporate 10 UKISA 50 Other 28 Total 525 1 Including reinstatement cost © Zurich Financial Services - Results Reporting for the Nine Months t
Slide 16: Farmers P&C Group Companies (1/3)
Farmers P&C Group Companies1 (1/3) in USD millions 2004 2003 4'200 40.0% for the nine months ended Sept. 30 Gross written premiums 10,764 10,481 4'000 38.0% Net underwriting gain 82 -210 3'800 36.0% Net surplus change (YTD) 308 140 12-month gain 379 345 3'600 34.0% Ending Surplus 3,992 3,614 3'400 3
Slide 17: Farmers P&C Group Companies (2/3)
Farmers P&C Group Companies (2/3) Combined ratio by line of business for the nine months ended Sept. 30 2004 2003 Change Auto 99.9% 98.7% -1.2pts Homeowners 82.0% 94.1% 12.1pts Commercial P&C1 99.4% 103.5% 4.1pts Specialty 102.9% 96.4% -6.5pts Sub total 96.4% 99.3% 2.9pts Earthquake 1.1% 1.5% 0.4pts
Slide 18: Farmers P&C Group Companies (3/3)
Farmers P&C Group Companies (3/3) Quarterly combined ratio 125% 120% 115% Californian 110% Wildfires 105% Hurricanes 100% 95% 90% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2001 2002 2003 2004 © Zurich Financial Services - Results Reporting for the Nine Months to September 30, 2004 18
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