Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — H1 2013 Earnings Presentation
72 slides from Zurich Insurance's earnings presentation, Aug 15, 2013
Slide 1: Half year results 2013
Half year results 2013 Analysts and Media Presentation August 15, 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: HY 2013 Results Key Messages
HY 2013 Results Key Messages Weather-related losses impacting underwriting performance Good growth in General Insurance and Global Life target markets Low yield environment continues to reduce investment income Maintained strong cash generation and solvency levels © Zurich Insurance Company Ltd Prog
Slide 4: Financial highlights
Financial highlights in USD millions 2013 20121 Change for the six months to June 30 Business operating profit (BOP) 2,288 2,512 -9% Net income attributable to shareholders 1,851 2,227 -17% General Insurance combined ratio 95.6% 94.8% -0.7pts Global Life new business value2 647 424 53% Farmers Mgmt
Slide 5: Business operating profit by segment
Business operating profit by segment in USD millions Q2-13 Q2-121 Change HY-13 HY-121 Change General Insurance 562 778 -28% 1,369 1,636 -16% Global Life 352 368 -4% 659 659 0% Farmers (incl. Farmers Re) 276 227 21% 696 597 17% Other Operating Businesses -232 -243 5% -453 -472 4% Total BOP Operating
Slide 6: General Insurance – key performance indicators
General Insurance – key performance indicators in USD millions Q2-13 Q2-12 Change HY-13 HY-12 Change GWP and policy fees 9,084 8,683 5% 19,770 19,153 3% Rate change1 4.2% 4.1% 0.1pts 3.7% 3.6% 0.1pts Loss ratio 69.4% 67.6% -1.8pts 68.5% 67.5% -1.0pts Expense ratio 26.9% 27.5% +0.6pts 27.0% 27.3% 0.3
Slide 7: General Insurance – Rate Change Monitor and GWP performance
General Insurance – Rate Change Monitor1 and GWP performance Rate Change Monitor1 HY-13 Discrete Q2-13 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 2% 3% 3% Commercial Lines 5% 5% 3% 4% 4% 6% 5% 4% 3% 5% Gross Written Premiums, tra
Slide 8: General Insurance – comparison of loss ratio
General Insurance – comparison of loss ratio HY-13 HY-12 Loss ratio development Discrete quarters 1.2pts Underlying loss ratio improvement 68.5% 75.5% 70.3% 69.4% 67.5% 67.5% 67.6% 67.7% 61.6% 60.4% -9.5% 2.9% 0.0% -8.7% 2.4% -1.0% USD USD USD USD USD 331m -140m -1,373m 374m -1,243m Major catastroph
Slide 9: General Insurance – comparison of expense ratio
General Insurance – comparison of expense ratio 27.3% 27.0% Change year-over-year Expense ratio development In percentage points Discrete quarters, in percentage points Other tech 14.2% 13.5% 28.8 28.7 expenses1 27.1 27.5 27.2 26.9 0.4 -0.3 14.5 14.8 14.2 14.1 13.5 13.5 -0.4 -0.3 13.1% Commissions 1
Slide 10: 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 2.2 90.0% for the six months to June 30 Corporate 90.5% Global Corporate 479 499 -4% NA 97.7% Commercial 95.3% North America Commercial 365 517 -29% CAT3 1
Slide 11: Global Life – key performance indicators
Global Life – key performance indicators in USD millions Q2-13 Q2-12 Change HY-13 HY-12 Change GWP and policy fees (incl. 6,313 7,323 -14% 13,029 14,718 -11% insurance deposits) Net inflows to Assets -1,203 -558 -115% -1,203 913 nm under Mgmt. Annual Premium 1,039 8741 19% 2,081 1,7931 16% Equivalen
Slide 12: 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 six months to June 30 2013 2012 2013 2012 2013 2012 Net Expense margin -613 -720 696 739 83 19 Net Risk margin 398 373 398 373 Net Investment margin 192 265 192 265 Other profit mar
Slide 13: Farmers – key performance indicators
Farmers – key performance indicators in USD millions Q2-13 Q2-12 Change HY-13 HY-12 Change Farmers Management Services Management fees and other related 706 710 -1% 1,408 1,420 -1% revenues Managed gross earned premium margin1 7.2% 7.4% -0.2pts 7.1% 7.4% -0.2 pts Business operating profit 349 355 -2
Slide 14: Farmers Exchanges – key performance indicators
Farmers Exchanges1 – key performance indicators in USD millions Q2-13 Q2-12 Change HY-13 HY-12 Change Gross written premiums 4,804 4,847 -1% 9,477 9,546 -1% Net underwriting result2 -560 -797 30% -391 -912 57% Expense ratio2 32.3% 33.3% 1.0pts 32.6% 33.3% 0.7pts Loss ratio2 79.4% 83.0% 3.6pts 71.4%
Slide 15: Investment performance of Group Investments
Investment performance of Group Investments in USD millions Q2-13 Q2-12 Change HY-13 HY-12 Change Net investment income 1,614 1,746 -8% 3,187 3,476 -8% Net capital gains/(losses) on investments 15 613 -98% 135 658 -79% and impairments1 of which attributable to shareholders -137 479 nm -207 497 nm Ne
Slide 16: Development of shareholders’ equity in Q2 2013
Development of shareholders’ equity in Q2 2013 in USD millions 35,000 34,758 -1,933 34,000 -718 789 -1,834 33,000 32,000 -187 39 9 30,923 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 Balance as o
Slide 17: HY 2013 Results Key Messages
HY 2013 Results Key Messages Weather-related losses impacting underwriting performance Good growth in General Insurance and Global Life target markets Low yield environment continues to reduce investment income Maintained strong cash generation and solvency levels © Zurich Insurance Company Ltd Prog
Slide 18: Appendix
@ ZURICH Appendix
Slide 19: Business operating profit and net income by quarter
Business operating profit and net income by quarter Business operating profit – by segment in USD millions 1,287 1,370 1,351 1,117 1,142 986 998 937 GI 854 835 858 807 Global Life 617 515 778 449 573 562 280 27 Farmers 362 367 348 308 385 308 Other 277 290 352 368 380 349 367 390 370 394 411 420 276
Slide 20: 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 1,780 1,799 1,803 Farmers 1,729 1,746 Other 1,677 1,629 1,614 1,573 721 705 668 705 658 665 600 594 565 562 1,086 1,021 997 1,042 1,003 1,006 992 1,012 990 978 31
Slide 21: Development of shareholders’ equity in HY 2013
Development of shareholders’ equity in HY 2013 in USD millions 35,000 34,505 -1,933 34,000 1,851 -2,209 33,000 -718 32,000 -604 26 57 30,923 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 Balance a
Slide 22: Business segment BOP-ROE based on RBC-allocated IFRS equity
Business segment BOP-ROE1 based on RBC-allocated IFRS equity for the six months to June 30 2013 2012 General Insurance 16.3% 20.8% Global Corporate 21.0% 23.2% North America Commercial 13.5% 20.8% Europe 17.4% 23.5% International Markets 13.3% 9.1% GI Global Functions including Group Reinsurance -5.
Slide 23: Solvency calculations
Solvency calculations Solvency ratios in % 3 268 278 Z-ECM1 225 242 232 183 178 185 122 103 110 114 SST Solvency I HY-11 FY-11 HY-12 FY-12 Z-ECM model position in USD billions FY-12 HY-12 Available Financial Resources (AFR) 44.0 39.8 Z-ECM AFR (after dividend accrual) 2 41.3 38.5 Z-ECM capital requi
Slide 24: 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 25: Capital model developments
Capital model developments HY-12 to FY-12 movements Main drivers of developments are: +9pts -4pts Asset valuations increased from 110% +5pts -6pts 114% improving markets leading to higher AFR Increased capital required mainly driven by volume effects and derivative positions nearing maturity Z-ECM Z
Slide 26: Z-ECM capital required by segment and risk type as of FY 2012
Z-ECM capital required by segment and risk type as of FY 2012 Capital Allocation: Z-ECM capital required: USD 38.5 billion1 USD 36.3 billion 8% 10% Other2 9% ALM/Market risk Farmers1 33% 32% Operational risk 15% General Business risk Insurance P&R risk 51% 3% Re-ins credit risk Global Life 3% Life i
Slide 27: Z-ECM ratio development
Z-ECM1 ratio development in USD billions (rounded) 136% 114% 119% 40 126% 41 41 40 103% 38 38 116% 37 35 36 Available to policyholders 34 34 30 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 Jan. 1 2007 2008 2009 2
Slide 28: Estimation of Available Financial Resources (AFR) as of FY 2012
Estimation of Available Financial Resources (AFR) as of FY 2012 in USD billions (rounded) 50 45 10.7 43.5 (2.2) 40 41.3 35 34.5 (2.7) 30 31.8 (19.2) 20.2 25 20 15 10 5 0 © Zurich Insurance Company Ltd Reported Distributions Net Net Value of in- Financial Total AFR Capital Net AFR shareholder’s share
Slide 29: Solvency ratio sensitivities
Solvency ratio sensitivities Solvency ratio impact1 3 4 5 Z-ECM SST Solvency I 114% FY 2012 185% 278% 113% Interest rate +100 bps 185% 232% 116% Interest rate -100 bps 189% 327% 5 117% Equities +25% 187% 296% 5 112% Equities -25% 185% 262% 100% Credit spreads 2 +100 bps 167% © Zurich Insurance Compa
Slide 30: Z-ECM and SST key differences at FY 2012
Z-ECM and SST key differences at FY 2012 = more onerous Key parameters Z-ECM SST Impact1 VaR 99.95% Expected Shortfall 99% Calibration +++ Comparable to AA Comparable to BBB Swap-rates (without liquidity Government rates (without LP) Risk-free yield curve ++ premium (LP)) (German Bund for EUR)2 Oper
Slide 31: Strong cash flow generation continued in 2012
Strong cash flow generation continued in 2012 Underlying profitability and disciplined growth generated USD 4bn of cash from the segments USD bn, 2012 FY forecast USD 4.0bn of cash 0.5 4.0 -0.9 4.0 0.2 remitted from the 0.5 0.3 business segments 3.5 0.2 2.2 0.2 -0.3 USD 0.4bn of cash 3.0 0.1 -2.7 co
Slide 32: 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 six months to June 30 in LC1 Global Corporate 5,192 4,720 10% 10%2 North America Commercial 5,318 5,069 5% 5%2 Europe 6,659 6’924 -4% -4% International Markets 2,888 2,653 9% 16% GI Global Func
Slide 33: General Insurance – Rate Change Monitor for European countries
General Insurance – Rate Change Monitor1 for European countries HY-13 Discrete Q2-13 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 2% 3% 3% Commercial Lines 5% 5% 3% 4% 4% 6% 5% 4% 3% 5% Europe by country Europe by country Switzer-
Slide 34: 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% Q2 05 Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 © Zurich Insurance Company Ltd 1 Towers Watson – carrier survey estimated at ZNA mix of business Note: Q2-04 to Q4-08
Slide 35: General Insurance – written rate change Q1-08 through Q2-13
General Insurance – written rate change Q1-08 through Q2-13 Rate change 2008 2009 5 4.1% 4.2% 2010 4.2% 4.3% 4 3.9% 3.6% 3.9% 3.8% 3.7% 3.7% 2011 3.1% 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 August 15, 2013 H
Slide 36: 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 4.4 92.9% for the three months to June 30 Corporate 91.3% Global Corporate 177 234 -24% NA 96.3% Commercial 94.4% North America Commercial 184 249 -26% CAT
Slide 37: 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 30% / Aggregate Treaty, USD 150m Co-Participation Optimization based on Global Cat Treaty, USD 500m xs underlying towers 20% our risk-based economic approach, in an overall cos
Slide 38: Development of Reserves for Losses and LAE
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 -11,799 -11,326 Net losses and LAE incurred 11,404 11,316 - Current year 11,722 11,690 - Prior years1 -318 -374 Forei
Slide 39: 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 six months to June 30 2013 2012 2013 2012 2013 2012 Net Expense margin 36 24 -11 -13 134 41 Net Risk margin 55 57 41 24 237 245 Net Investment margin 24 41 17 19 137 17
Slide 40: 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 six months to June 30 2013 2012 2013 2012 2013 2012 Net Expense margin -64 -25 -11 -8 83 19 Net Risk margin 49 32 16 16 398 373 Net Investment margin 10 25 4 2 192 265 Other profit margi
Slide 41: 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 six months to June 30 2013 2012 2013 2012 2013 2012 Net Expense margin 22 10 136 92 6 -10 Net Risk margin 67 62 28 37 62 70 Net Investment margin 17 27 -32 1 80 83 Other profit margi
Slide 42: 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 six months to June 30 2013 2012 2013 2012 2013 2012 Net Expense margin -37 -48 31 26 -25 -29 Net Risk margin 38 35 29 29 13 13 Net Investment margin 2 4 21 19 50 44 Other profi
Slide 43: Global Life – new business by pillar
Global Life – new business by pillar in USD millions NBV NBV1 Change APE APE1 Change for the six months to June 30 2013 2012 in LC2 2013 2012 in LC2 Bank Distribution 221 72 211% 658 246 169% IFA/Brokers 131 105 28% 470 477 0% Agents 94 63 49% 214 198 7% Total Retail Pillars 447 239 88% 1,341 922 46
Slide 44: 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 six months to June 30 2013 20121 in LC2 2013 20121 in LC2 North America 59 50 18% 81 62 32% Latin America 189 37 426% 582 154 287% Of which: Zurich Santander 140 0 n/a 404 0 n/a Europe 254 214 19% 1,04
Slide 45: Global Life – Embedded Value result
Global Life – Embedded Value result for the six months to June 30 2013 2013 2012 2012 USDm Return USDm Return Opening Embedded Value1 18,861 15,846 New business value2 647 424 Expected contribution3 373 504 Operating variance 221 -119 Total operating earnings 1,241 12.2% 808 11.3% Economic variance
Slide 46: Zurich Santander - BOP reconciliation & update
Zurich Santander - Business operating profit (BOP) reconciliation & update BOP recorded in IFRS accounts Local business performance HY-13 vs HY-12 USD million GWP grew 6% to USD 1.3bn FY122 HY13 while deposits declined by 7% to Statutory profit1 563 288 USD 0.8bn Adjustments3 38 1 IFRS BOP 600 289 L
Slide 47: Global Life - Assets under Management
Global Life - Assets under Management1 AuM reduced marginally by 3% compared to January 1, 2013 US dollar basis Split of AuM Development of AuM in USD billions in USD billions 247 254 28 28 Balance as of 254 Jan 1, 2013 110 113 Inflows 13 Outflows -14 110 112 Market movements 5 and Other 2 Currency
Slide 48: Farmers Management Services – key performance indicators
Farmers: Farmers Management Services – key performance indicators in USD millions 2013 2012 Change for the six months to June 30 Management fees and other related revenues 1,408 1,420 -1% Management and other related expenses -738 -736 0% Gross management result 670 684 -2% Managed gross earned prem
Slide 49: Farmers Re – key performance indicators
Farmers: Farmers Re1 – key performance indicators in USD millions 2013 2012 Change for the six months to June 30 Gross written premiums2 2,034 2,211 -8% Net underwriting result (58) (179) 67% Combined ratio 102.8% 108.2% 5.3pts Catastrophe impact3 8.5% 9.4% 0.9pts Business operating profit 9 (110) n
Slide 50: Farmers Exchanges – financial highlights
Farmers Exchanges1 – financial highlights in USD millions 2013 2012 6'000 50.0% for the six months to June 30 48.0% 5'000 46.0% Gross written premiums 9,477 9,546 4'000 44.0% 42.0% Net underwriting result2 -391 -912 3'000 40.0% 38.0% Beginning surplus3,4 5,626 5,656 2'000 36.0% 34.0% 1'000 Net surpl
Slide 51: Farmers Exchanges’ 2013 catastrophe reinsurance
Farmers Exchanges’ 2013 catastrophe reinsurance provides comprehensive protection1 All Perils Named Storm Named Storm Named Storm Non-Named Comprehensive CAT California Gulf ex. Florida ex Gulf, Florida Storm cover designed to ex Florida Ex California comply with the CA Wildfires TX Hurricane Farmer
Slide 52: 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 six months to June 30 Auto 4,844 4,984 -2.8% of which standard Auto 4,350 4,360 -0.2% of which non-standard Auto1 495 623 -20.7% Homeowners 2,366 2,271 4.2% Business Insurance 1,107 1,209 -8
Slide 53: 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 Q2-13 Q2-12 Change for the three months to June 30 Auto 2,342 2,432 -3.7% of which standard Auto 2,119 2,149 -1.4% of which non-standard Auto1 223 283 -21.0% Homeowners 1,292 1,254 3.1% Business Insurance 554 605 -8
Slide 54: 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 -0.4% -0.6% -0.7% © Zurich Insurance Company Ltd -2% ‘08 ‘09 ‘10 ‘11
Slide 55: Farmers Exchanges – policies in force (1/2)
Farmers Exchanges – policies in force (1/2) in thousand policies June 2013 HY-13 2012 Ending Change Ending # % Auto 11,049 -538 -4.6% 11,588 of which standard Auto 10,065 -385 -3.7% 10,450 of which non-standard Auto1 984 -153 -13.5% 1,138 Homeowners 5,018 -113 -2.2% 5,131 Business Insurance 596 -31
Slide 56: Farmers Exchanges – policies in force (2/2)
Farmers Exchanges – policies in force (2/2) in thousand policies June 2013 Q2-13 March 2013 Ending Change Ending # % Auto 11,049 -281 -2.5% 11,331 of which standard Auto 10,065 -202 -2.0% 10,268 of which non-standard Auto1 984 -79 -7.4% 1,063 Homeowners 5,018 -61 -1.2% 5,079 Business Insurance 596 -
Slide 57: Farmers Exchanges – combined ratio (1/2)
Farmers Exchanges – combined ratio1 (1/2) for the six months to June 30 2013 2012 Change Auto 100.0% 107.3% 7.3pts of which standard Auto 99.9% 106.3% 6.4pts of which non-standard Auto2 100.7% 113.5% 12.8pts Homeowners 111.7% 117.2% 5.5pts Business Insurance 111.1% 115.3% 4.2pts of which Business In
Slide 58: Farmers Exchanges – combined ratio (2/2)
Farmers Exchanges – combined ratio1 (2/2) for the three months to June 30 Q2-13 Q2-12 Change Auto 102.0% 110.1% 8.1pts of which standard Auto 102.4% 109.6% 7.3pts of which non-standard Auto2 98.8% 112.5% 13.7pts Homeowners 133.4% 135.0% 1.6pts Business Insurance 115.9% 122.1% 6.2pts of which Busines
Slide 59: Farmers Exchanges – development of the combined ratio
Farmers Exchanges – development of the combined ratio Quarterly combined ratio Incl. CAT1 impact 17 Catastrophe Incl. Incl. Events 13 Catastrophe Ike & Gustav Events Incl. 115% 13 Catastrophe Events 110% Incl. Incl. Irene Rita & Katrina Incl. 105% California Excl. Fogel/SoT settlements wildfires 100
Slide 60: Farmers Exchanges – Competitor Snapshot
Farmers Exchanges – Competitor Snapshot Growth vs. GAAP Combined Ratio – Overall P&C1, 2 Growth NPW % 12 June 2013 5 GEICO 2 March 2013 10 USAA 8 Progressive 6 State Farm 2 2 Nationwide 2 Liberty Mutual 4 Mercury Allstate 2 Travelers 0 Hartford Farmers Exchanges 3 American Family 2, 4 -2 Combined Ra
Slide 61: Other Operating and Non-Core Businesses – BOP contribution
Other Operating and Non-Core Businesses – Business operating profit contribution in USD millions Q2-13 Q2-12 Change HY-13 HY-12 Change Other Operating Businesses - Holding and financing -188 -176 -7% -407 -378 -8% - Headquarters -43 -68 36% -46 -94 51% Total Other Operating -232 -243 5% -453 -472 4%
Slide 62: Zurich’s investment portfolio benefits 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 June 30, 2013 Asset allocation (%) Risk diversification Risk exposure (%)1 and matching (%) 100 Hedge Funds / Liquidity Real Estate Private Equi
Slide 63: Group Investments – debt securities of high credit quality
Group Investments – Zurich’s debt securities are of high credit quality (99.0% investment grade) As of June 30, 2013 Group Investments Debt securities USD 202bn USD 152bn credit rating: AAA 25.1% credit rating: AA 35.4% Other Debt asset securities classes 25% 75% credit rating: A 18.0% © Zurich Insu
Slide 64: Group Investments – debt securities are well balanced
Group Investments – Zurich’s debt securities are well balanced Group Investments - USD 202bn (100%) As of June 30, 2013 Government and government related bonds: USD 72bn (36%) of which: Market/Cost: 103% 38% in General Insurance 98% inv. grade 54% in Global Life 30% AAA 45% AA 3% A 19%
Slide 65: Government & government related bonds well diversified
Group Investments – Government & government related bonds are well diversified Group Investments - USD 202bn (100%) As of June 30, 2013 Government and government related bonds: USD 72bn1 (36%) Market/Cost: 103% of which: 98% inv. grade 38% in General Insurance 30% AAA 54% in Global Life 45
Slide 66: Eurozone government & government related bonds well diversified
Group Investments – Eurozone government & government related bonds are well diversified Group Investments - USD 202bn (100%) Eurozone Government and government As of June 30, 2013 related bonds: USD 34bn (17%) Market/Cost: 105% of which: Split by credit rating 26% in General Insurance 96% inv. g
Slide 67: Corporate bonds are of high credit quality
Group Investments – Corporate bonds are of high credit quality Group Investments - USD 202bn (100%) As of June 30, 2013 Corporate bonds: USD 60bn (30%) Market/Cost: 104% Split by industries Split by credit rating 43% Banks, 100% inv. grade including 19%1 covered bonds 15% AAA 9% Utilities
Slide 68: Banks corporate bonds high credit quality and diversified
Group Investments – Banks corporate bonds are of high credit quality and well diversified Group Investments - USD 202bn (100%) As of June 30, 2013 Banks Corporate bonds: USD 26bn (13%) Market/Cost: 105% Split by seniority Split by credit rating 43% Covered bonds 100% inv. grade 47% Senior bond
Slide 69: MBS/ABS are of high credit quality
Group Investments – MBS/ABS are of high credit quality Group Investments - USD 202bn (100%) MBS/ABS: USD 20bn (10%) As of June 30, 2013 Market/Cost: 101% 98% inv. grade 38% AAA includes: US MBS: USD 13.9bn (6.9%) Market/Cost: 101% 98% inv. grade; 22% AAA Debt securities US ABS1: USD 3.8bn (1.9
Slide 70: US MBS are of high credit quality
Group Investments – US MBS are of high credit quality Group Investments - USD 202bn (100%) As of June 30, 2013 US MBS: USD 13.9bn (6.9%) Market/Cost: 101% 98% inv. grade 22% AAA Debt of which: securities US “Agency” MBS: USD 9.3bn (4.6%) Market/Cost: 100% 75% 100% AA+ USD 2.7bn backed by GNMA
Slide 71: 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 390 400 20 11 300 252 10 1 200 138 0 114 100 -10 15 -11 0 -20 -13 -15 -100 -23 -30 -99 -29 -31 -20
Slide 72: 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 Equity Debt Other 1'000 119 0 -46 -242 -83 -123 -129 -1'000 -952 -2'000 -3'000 -3'051 -4'000 -4'003 -5'000 Q1-2013 Q2-2013 HY-2013 Tota
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