Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — 9M 2012 Earnings Presentation
73 slides from Zurich Insurance's earnings presentation, Nov 15, 2012
Slide 1: Results for the nine months to September 30, 2012
Results for the nine months to September 30, 2012 Analysts and Media Presentation November 15, 2012
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 of Zurich Insurance Group Ltd or the Zurich Insurance Group (the Group). F
Slide 3: Nine months 2012 Results Key Messages
Nine months 2012 Results Key Messages Strong underlying profitability, driven by continued pricing discipline and portfolio management Discrete Q3 results reduced by previously announced adjustments in Germany general insurance Sustained top-line growth in target markets Strong capital position well
Slide 4: Financial highlights
Financial highlights in USD millions 2012 20111 Change for the nine months to September 30 Business operating profit (BOP) 3,242 3,258 0% Net income attributable to shareholders 2,701 3,210 -16% General Insurance combined ratio 97.6% 98.8% 1.2pts Global Life new business value2 635 729 -13% Farmers
Slide 5: Business operating profit and net income by quarter
Business operating profit and net income by quarter Business operating profit – by segment in USD millions 1,288 1,369 1,117 1,003 1,140 854 835 856 617 533 773 733 280 GI 182 362 367 348 286 305 GL 277 367 Farmers 380 349 367 390 372 397 229 Other -168 -263 -144 -268 -145 -229 -151 Q1-11 Q2-11 Q3-1
Slide 6: Business operating profit by segment
Business operating profit by segment in USD millions 2012 2011 Change for the nine months to September 30 General Insurance 1,812 1,732 5% Global Life 959 1,005 -5% Farmers (including Farmers Re) 998 1,096 -9% Other Operating Businesses -645 -588 -10% Total BOP Operating business segments 3,124 3,24
Slide 7: General Insurance – key performance indicators
General Insurance – key performance indicators in USD millions 2012 2011 Change Change for the nine months to September 30 in LC1 GWP and policy fees 27,309 27,047 1% 6% Rate change2 3.6% 3.4% 0.2pts Loss ratio 69.3% 72.3% 3.0pts Expense ratio 28.2% 26.4% -1.8pts Combined ratio 97.6% 98.8% 1.2pts Bu
Slide 8: General Insurance – Q3 Financial adjustments in Germany
General Insurance – Q3 Financial adjustments in Germany Impact on GI 9m-12 result Source of main issues Low data granularity for certain lines of business Heavy reliance on manual processes, Convergence of 550 +2,6%2 particularly related to IFRS reporting these issues led Old IT system landscape to
Slide 9: General Insurance – Rate Change Monitor and GWP performance
General Insurance – Rate Change Monitor1 and GWP performance Rate Change Monitor1 9m-12 Discrete Q3-12 Int’l Total Int’l Total GC NAC Europe Markets GI GC NAC Europe Markets GI Personal Lines n/a n/a 3% 5% 3% n/a n/a 2% 4% 2% Commercial Lines 5% 4% 2% 3% 4% 6% 4% 3% 3% 4% Gross Written Premiums, tra
Slide 10: General Insurance – comparison of loss ratio
General Insurance – comparison of loss ratio 9m-12 9m-11 Loss ratio development 75% Discrete quarters 2.8pts 72.3% improvement Underlying loss ratio 69.3% 76.9% 70% 72.8%5 71.4% 70.7% 68.9% 67.5% 67.6% 65% 64.4% -0.0% 61.6% -9.1% 0.2% -2.0% 60% 2.9% 0.0% -8.8% 4.2% -3.0% USD USD USD USD USD USD USD
Slide 11: General Insurance – expense ratio walk from 9m-11 to 9m-12
General Insurance – expense ratio walk from 9m-11 to 9m-12 28.2% 26.4% Change year-over-year Expense ratio development Other tech In percentage points Discrete quarters, in percentage points 13.7% expenses1 14.3% 30.0 0.2 1.8 28.2 27.6 26.6 26.3 26.4 27.1 0.4 Other tech expenses1 0.6 14.5 13.5 13.5
Slide 12: General Insurance – BOP and Combined ratio by business
General Insurance – BOP and Combined ratio by business Business operating profit Combined ratio (%) in USD millions 2012 2011 Change for the nine months to September 30 90.6 Global CAT4 10.5 103.2 Corporate Global Corporate 732 232 nm 96.5 North America Commercial 720 767 -6% NA CAT4 0.8 96.3 Commer
Slide 13: Global Life – key performance indicators
Global Life – key performance indicators in USD millions 2012 2011 Change Change for the nine months to September 30 in LC2 GWP and policy fees (incl. insurance 21,140 19,350 9% 17% deposits) Net inflows to Assets under Mgmt 1,048 1,572 -33% -25% Annual Premium Equivalent (APE) 2,973 2,770 7% 12% Ne
Slide 14: Global Life – new business by pillar
Global Life – new business by pillar in USD millions NBV NBV Change APE APE Change for the nine months to September 30 20121 20111 in LC2 2012 2011 in LC2 Bank Distribution 77 135 -37% 290 467 -32% IFA/Brokers 130 130 5% 563 705 -15% Agents 99 85 19% 290 349 -13% International / Expats 49 66 -24% 18
Slide 15: 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 2012 2011 2012 2011 2012 2011 Net Expense margin -1,050 -1,115 1,131 1,075 80 -40 Net Risk margin 539 522 539 522 Net Investment margin 387 556 387 556 O
Slide 16: Zurich Santander - BOP reconciliation & update
Zurich Santander - Business operating profit (BOP) reconciliation & update BOP recorded in IFRS accounts* Local business performance 9m-12 vs 9m-11 in USD GWP & insurance deposits grew 360 2 148 8% to USD 2.98bn DA 60 PVFP Local statutory profit before tax 88 106 increase by 20% to USD 387m 108 10 9
Slide 17: Farmers – key performance indicators
Farmers – key performance indicators in USD millions 2012 2011 Change for the nine months to September 30 Farmers Management Services Management fees and other related revenues 2,134 2,071 3% Managed gross earned premium margin1 7.4% 7.3% nm Business operating profit 1,066 1,020 5% Farmers Re2 Gross
Slide 18: Farmers Exchanges – key performance indicators
Farmers Exchanges1 – key performance indicators in USD millions 2012 2011 Change for the nine months to September 30 Gross written premiums 14,476 13,903 4.1% Net underwriting result2 -731 -1,049 30.3% Expense ratio 32.9% 34.0% 1.1pts Loss ratio 73.6% 73.2% -0.4pts Combined ratio, excl. Fogel settle
Slide 19: Investment performance of Group Investments
Investment performance of Group Investments in USD millions 2012 2011 Change for the nine months to September 30 Net investment income 5,099 5,454 -7% Net capital gains/(losses) on investments and 988 2,162 -54% impairments1 of which attributable to shareholders 651 1,593 -59% Net investment result
Slide 20: Capital model developments
Capital model developments Hybrid Senior Downgr. Lower Additional bond Debt De- Other FINMA issuance issuance risking Peripheral yields states adjust. Main drivers of developments are: 103% +3% +8% -1% -1% -2% 110% Different treatment of debt 0% 0% issuances due to timing or the recognition of senio
Slide 21: Development of shareholders' equity in Q3-12
Development of shareholders’ equity in Q3-12 in USD millions 35,000 346 -108 73 34,050 34,000 838 33,000 477 32,424 32,000 31,000 30,000 29,000 28,000 27,000 26,000 25,000 24,000 © Zurich Insurance Company Ltd Restated Net Income Change in net Cumulative Pensions Other Balance as of balance as of at
Slide 22: Nine months 2012 Results Key Messages
Nine months 2012 Results Key Messages Strong underlying profitability, driven by continued pricing discipline and portfolio management Discrete Q3 results reduced by previously announced adjustments in Germany general insurance Sustained top-line growth in target markets Strong capital position well
Slide 23: Appendix
Appendix © Zurich Insurance Company Ltd November 15, 2012 Results Reporting for the Nine Months to September 30, 2012 23
Slide 24: Top line development by segment
Top line development by segment in USD millions 2012 2011 Change Change for the nine months to September 30 in LC1 General Insurance GWP and policy fees 27,309 27,047 1% 6% Global Life GWP and policy fees and insurance 21,140 19,350 9% 17% deposits Annual Premium Equivalent (APE)2 2,973 2,770 7% 12%
Slide 25: Development of shareholders' equity in 9m-12
Development of shareholders’ equity in 9m-12 in USD millions 35,000 326 10 213 34,050 34,000 1,883 33,000 32,000 31,680 -1,923 2,701 31,000 30,000 -840 29,000 28,000 27,000 26,000 25,000 24,000 Restated Dividends1 Cumulative Net Income Change in Cumulative Net actuarial Other Balance as of balance a
Slide 26: Business division BOP-ROE based on RBC-allocated IFRS equity
Business division BOP-ROE1 based on RBC-allocated IFRS equity for the nine months to September 30 2012 2011 General Insurance 14.4% 13.0% Global Corporate 20.8% 7.0% North America Commercial 18.6% 18.0% Europe 4.6% 18.3% International Markets 13.5% -12.5% GI Global Functions including Group Reinsura
Slide 27: Z-ECM Risk Based Capital by segment and risk type for HY 2012
Z-ECM Risk Based Capital (RBC) by segment and risk type for HY 2012 Capital Allocation: Total RBC: USD 37 billion1 USD 35 billion 7% Other2 10% 8% Farmers1 ALM/Market risk General 15% 32% Operational risk Insurance Business risk 51% P&R risk3 2% Global Life 3% Re-ins credit risk 34% Life insurance r
Slide 28: Solvency calculations
Solvency calculations Solvency ratios in % 5 268 1 223 232 225 242 2 242 Z-ECM 183 178 119 122 103 110 SST Solvency I FY10 HY11 FY11 HY12 Z-ECM model position in USD billions 30 June 31 Dec 2012 2011 Available Financial Resources (AFR) 39.8 40.5 AFR after dividend accrual 38.5 37.8 3 Risk Based Capi
Slide 29: 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 30: Z-ECM ratio development
Z-ECM1 ratio development in USD billions (rounded) 126% 136% 119% 110% 40 41 40 103% 116% 38 38 39 35 37 34 35 34 Available to policyholders 95% 30 30 30 30 28 25 27 20 15 10 5 RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR RBC AFR 0 © Zurich Insurance Company Ltd Jan. 1 Jan. 1 Jan. 1 Jan. 1 Jan. 1
Slide 31: Estimation of Available Financial Resources (AFR) as of July 1, 2012
Estimation of Available Financial Resources (AFR) as of July 1, 2012 in USD billions (rounded) 45 40 (2) 11 41 39 35 (1) 30 32 31 (17) 16 25 20 15 10 5 0 © Zurich Insurance Company Ltd Reported Value of in- Capital Distributions Net shareholders’ Net intangibles1 force business Financial Total AFR a
Slide 32: Solvency ratio sensitivities
Solvency ratio sensitivities Solvency ratio impact1 3 4 Z-ECM SST Solvency I 110% HY 2012 178% 5 268% 113% Interest rate +100 bps 183% 222% 99% Interest rate -100 bps 159% 316% 112% Equities +25% 179% 283% 107% Equities -25% 176% 254% 94% Credit spreads 2 +100 bps 157% © Zurich Insurance Company Ltd
Slide 33: Z-ECM ratio from FY 2011 to HY 2012
Z-ECM ratio from FY 2011 to HY 2012 Development of the Z-ECM ratio The Z-ECM ratio increase is primarily driven by: +8% -1% Significant drop in ALM/ -1% -2% 110% +3% 103% Market risk (USD -3bn), mainly a result of the de-risking measures implemented. Increase in AFR mainly due to the new issuance of
Slide 34: Z-ECM and SST key differences
Z-ECM and SST key differences = 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 Operational ris
Slide 35: SST ratio from FY 2011 to HY 2012
SST ratio from FY 2011 to HY 2012 Development of the SST Ratio The SST ratio decline is primarily driven by: 183%1 +2% +6% -2% -3% -3% 183% -5% 178% Positive Market/ALM de-risking impact for SST (but less pronounced than for Z-ECM). Further downgrades in peripheral countries increased Investment Cre
Slide 36: Strong cash flow generation continued in 2011
Strong cash flow generation continued in 2011 Dividend to shareholders Redeployment Central liquidity pool Run rate cash outflows1 -0.6 -1.0 4.3 0.4 2.4 0.9 0.6 Net cash remittance2 Capital consumption/ requirement © Zurich Insurance Company Ltd Reduced capital consumption NCB GI Farmers Global New
Slide 37: General Insurance – Rate Change Monitor for personal and commercial lines
General Insurance – Rate Change Monitor1 for personal and commercial lines 9m-12 Discrete Q3-12 Int’l Total Int’l Total GC NAC Europe Markets GI GC NAC Europe Markets GI Personal Lines n/a n/a 3% 5% 3% n/a n/a 2% 4% 2% Commercial Lines 5% 4% 2% 3% 4% 6% 4% 3% 3% 4% Europe by country Europe by countr
Slide 38: General Insurance – written rate change 2008 through Q3-12
General Insurance – written rate change 2008 through Q3-12 Rate change 2008 2009 5% 2010 4.2% 3.9% 4.1% 3.6% 3.9% 3.8% 3.7% 2011 4 3.7% 2.6% 3.1% 2012 3 2.3% 2.7% 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 15, 2012 Results Reporting f
Slide 39: General Insurance - Gross written premiums and policy fees
General Insurance - Gross written premiums and policy fees In USD millions 2012 2011 Change Change for the nine months to September 30 in LC1 Global Corporate 6,659 6,528 2% 6% North America Commercial 7,560 7,278 4% 4% Europe 9,424 10,366 -9% -2% International Markets 4,039 3,358 20% 28% GI Global
Slide 40: Development of Reserves for Losses and Loss Adjustment Expenses
Development of Reserves for Losses and Loss Adjustment Expenses (LAE) in USD millions 2012 2011 Net reserves for losses and LAE, as of January 1 55,156 56,014 Net losses and LAE paid -16,849 -16,938 Net losses and LAE incurred 17,377 16,728 - Current year 17,568 17,699 - Prior years1 -191 -972 Forei
Slide 41: Reinsurance program to reduce volatility from Nat Cat
Reinsurance program to reduce volatility from Nat Cat severity and frequency US Catastrophe Euro Catastrophe International Treaty2 Treaty3 Cat Treaty4 Excess of loss protection1 USD 1,042m USD 1,400m USD 395m Retention USD (2011: USD 1,000 1,000m) (EUR 1,100m) (2011: USD 350m) (2011: EUR 1,200m) Co-
Slide 42: 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 2012 2011 2012 2011 2012 2011 Net Expense margin 39 37 -17 -12 113 12 Net Risk margin 80 92 38 26 345 327 Net Investment margin 56 67 29 27
Slide 43: 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 2012 2011 2012 2011 2012 2011 Net Expense margin -42 -67 -13 -10 80 -40 Net Risk margin 55 48 20 28 539 522 Net Investment margin 37 61 5 5 387 556 Other prof
Slide 44: 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 2012 2011 2012 2011 2012 2011 Net Expense margin 44 -16 143 115 -3 10 Net Risk margin 79 88 54 52 95 68 Net Investment margin 37 44 6 102 117 116 Other pr
Slide 45: 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 2012 2011 2012 2011 2012 2011 Net Expense margin -70 -94 39 35 -41 -37 Net Risk margin 49 63 48 48 19 8 Net Investment margin 5 15 28 38 67 83 Other
Slide 46: Global Life – new business by region/country
Global Life – new business by region/country in USD millions NBV1 NBV1 Change APE APE Change for the nine months to September 30 2012 2011 in LC2 2012 2011 in LC2 North America 76 36 122% 88 82 8% Latin America 78 52 63% 654 231 202% Europe 303 385 -16% 1,763 1,908 -2% United Kingdom 146 106 41% 847
Slide 47: Global Life - Assets under Management
Global Life - Assets under Management1 AuM have increased compared to January 1, 2012 on a local currency basis Split of AuM Development of AuM in USD billions in USD billions Series 248 Balance as of 232 232 Jan 1, 20122 27 25 Inflows 22 110 105 Outflows -21 Market movements 111 103 13 and Other3 C
Slide 48: Zinszusatzreserve (ZZR) requirement in Germany
Zinszusatzreserve (ZZR) requirement in Germany What is it and how is it calculated? How much will be transferred in Q4-12? The ZZR is a local statutory requirement, applying Based on current liability maturities and reference across the German industry rate, a further EUR 50m would need to be contri
Slide 49: Farmers Management Services – key performance indicators
Farmers: Farmers Management Services – key performance indicators in USD millions 2012 2011 Change for the nine months to September 30 Management fees and other related revenues 2,134 2,071 3% Management and other related expenses -1,103 -1,077 -2% Gross management result 1,031 995 4% Managed gross
Slide 50: Farmers Re – key performance indicators
Farmers: Farmers Re1 – key performance indicators in USD millions 2012 2011 Change for the nine months to September 30 Gross written premiums2 3,382 2,261 50% Net underwriting result -171 -30 nm Combined ratio 105.2% 101.3% -3.9 pts CAT impact3 6.7% 7.5% 0.8 pts Business operating profit -68 76 nm ©
Slide 51: Farmers Exchanges – financial highlights
Farmers Exchanges – financial highlights in USD millions 2012 2011 6'000 50.0% for the nine months to Sept 30 48.0% 5'000 46.0% 44.0% Gross written premiums 14,476 13,903 4'000 42.0% 3'000 40.0% Net underwriting result1 -731 -1,049 38.0% 2'000 36.0% Beginning surplus2 5,656 5,960 1'000 34.0% 32.0% 0
Slide 52: Exchanges' 2012 catastrophe reinsurance provides comprehensive protection
Exchanges’ 2012 catastrophe reinsurance provides comprehensive protection1 California Gulf Hurricane Other Florida Hurricane excl. Florida in USD millions Comprehensive CAT cover designed to mitigate 250 CA Wildfires + TX Hurricane year events to tolerable net Contingent Surplus Notes position (500m
Slide 53: 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 2012 2011 Change for the nine months to September 30 Auto1 7,554 7,320 3.2% of which 21st Century Direct2 1,514 1,448 4.6% Homeowners 3,549 3,408 4.2% Business Insurance2 1,774 1,704 4.1% Specialty 1,491 1,370 8.9%
Slide 54: 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 Q3-12 Q3-11 Change for the three months to September 30 Auto 2,571 2,492 3.2% of which 21st Century Direct1 516 503 2.6% Homeowners 1,278 1,213 5.3% Business Insurance1 566 559 1.2% Specialty 483 440 9.9% Other 32 3
Slide 55: 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% 5.4% 5.0% 5.1% 4.7% 4.5% 4.6% 4.2% 4.1% 4.1% 4% 3.1% 2.9% 1.8% 1.5% 2% 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% © Zurich Insurance Company Ltd -2% ‘07 ‘08 ‘
Slide 56: Farmers Exchanges – policies in force (1/2)
Farmers Exchanges – policies in force (1/2) in thousand policies Sept. 2012 9m-12 2011 Ending Change Ending # % Auto 11,895 -91 -0.8 11,986 of which 21st Century Direct1 2,410 -11 -0.4 2,420 Homeowners 5,161 58 1.1 5,103 Business Insurance1 635 5 0.8 630 Specialty 2,877 105 3.8 2,772 Other 314 6 1.8
Slide 57: Farmers Exchanges – policies in force (2/2)
Farmers Exchanges – policies in force (2/2) in thousand policies Sept. 2012 Q3-12 June 2012 Ending Change Ending # % Auto 11,895 -131 -1.1 12,027 of which 21st Century Direct1 2,410 -17 -0.7 2,427 Homeowners 5,161 2 0.0 5,159 Business Insurance1 635 -3 -0.5 638 Specialty 2,877 19 0.7 2,858 Other 314
Slide 58: Farmers Exchanges – combined ratio (1/2)
Farmers Exchanges – combined ratio1 (1/2) for the nine months to September 30 20121 20111 Change Auto2,5 105.8% 104.0% -1.8pts Homeowners 108.2% 108.6% 0.4pts Business Insurance5 113.1% 117.5% 4.4pts Specialty 96.3% 115.1% 18.8pts Total, excl. Fogel settlement6 106.5% 107.1% 0.6pts Total, incl. Foge
Slide 59: Farmers Exchanges – combined ratio (2/2)
Farmers Exchanges – combined ratio1 (2/2) for the three months to September 30 Q3-121 Q3-111 Change Auto2,5 103.1% 104.3% 1.2pts Homeowners 90.8% 102.4% 11.5pts Business Insurance5 108.8% 117.7% 8.9pts Specialty 97.6% 114.4% 16.8pts Total, excl. Fogel settlement6 101.2% 105.7% 4.5pts Total, incl. Fo
Slide 60: Farmers Exchanges – development of the combined ratio
Farmers Exchanges – development of the combined ratio Quarterly combined ratio CAT1 impact Incl. 120% 17 Catastrophe Incl. Incl. Events 13 Catastrophe Ike & Gustav Events 115% 110% Incl. Incl. Irene Rita & Katrina 105% Incl. California Excl. Fogel wildfires settlement 100% 95% 90% © Zurich Insurance
Slide 61: Farmers Exchanges – Competitor Snapshot
Farmers Exchanges – Competitor Snapshot Growth vs. GAAP Combined Ratio – Overall P&C1, 3 Growth NPW % 14 September 2012 12 Nationwide 3 June 2012 10 4 USAA 3 GEICO 8 Progressive Liberty Mutual 3 American Family3 6 4 Allstate Farmers 2 2 Mercury State Farm 3 0 Travelers Hartford -2 Combined Ratio (%
Slide 62: Other Operating and Non-Core Businesses – BOP contribution
Other Operating and Non-Core Businesses – Business operating profit contribution in USD millions 2012 2011 Change for the nine months to September 30 Other Operating Businesses - Holding and financing -531 -457 -16% - Headquarters -115 -131 12% Total Other Operating Businesses -645 -588 -10% Non-Cor
Slide 63: 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, 2012 Asset allocation (%) Risk diversification Risk exposure (%)1 and matching (%) 100 Hedge Funds / Liquidity Real Estate Private
Slide 64: Debt securities are of high credit quality (98.5% investment grade)
Group Investments – Zurich’s debt securities are of high credit quality (98.5% investment grade) As of September 30, 2012 Group Investments Debt securities USD 204bn USD 153bn credit rating: AAA 32.9% credit rating: AA 30.7% Other Debt asset securities classes 25% 75% credit rating: A 17.7% © Zurich
Slide 65: Group Investments – debt securities are well balanced
Group Investments – Zurich’s debt securities are well balanced Group Investments - USD 204bn (100%) As of September 30, 2012 Government and government related bonds: USD 74bn (36%) of which: Market/Cost: 105% 40% in General Insurance 98% inv. grade 52% in Global Life 43% AAA 37% AA 3% A
Slide 66: Government & government related bonds are well diversified
Group Investments – Government & government related bonds are well diversified Group Investments - USD 204bn (100%) As of September 30, 2012 Government and government related bonds: USD 74bn1 (36%) Market/Cost: 105% of which: 98% inv. grade 40% in General Insurance 43% AAA 52% in Global Life
Slide 67: Eurozone government & government related bonds are well diversified
Group Investments – Eurozone government & government related bonds are well diversified Group Investments - USD 204bn (100%) Eurozone Government and government As of September 30, 2012 related bonds: USD 32bn (16%) Market/Cost: 104% of which: Split by credit rating 28% in General Insurance 97% i
Slide 68: Corporate bonds are of high credit quality
Group Investments – Corporate bonds are of high credit quality Group Investments - USD 204bn (100%) As of September 30, 2012 Corporate bonds: USD 58bn (28%) Market/Cost: 107% Split by industries Split by credit rating 45% Banks, 99% inv. grade including 19.9%1 covered bonds 19% AAA 9% Util
Slide 69: Banks corporate bonds are of high credit quality and well diversified
Group Investments – Banks corporate bonds are of high credit quality and well diversified Group Investments - USD 204bn (100%) As of September 30, 2012 Banks Corporate bonds: USD 26bn (13%) Market/Cost: 107% Split by seniority Split by credit rating 44% Covered bonds 99% inv. grade 46% Senior
Slide 70: MBS/ABS are of high credit quality
Group Investments – MBS/ABS are of high credit quality Group Investments - USD 204bn (100%) MBS/ABS: USD 22bn (11%) As of September 30, 2012 Market/Cost: 105% 98% inv. grade 36% AAA includes: US MBS: USD 15.0bn (7.3%) Market/Cost: 106% 99% inv. grade; 21% AAA Debt securities US ABS1: USD 4.0bn
Slide 71: US MBS are of high credit quality
Group Investments – US MBS are of high credit quality Group Investments - USD 204bn (100%) As of September 30, 2012 US MBS: USD 15.0bn (7.3%) Market/Cost: 106% 99% inv. grade 21% AAA Debt of which: securities US “Agency” MBS: USD 10.6bn (5.2%) Market/Cost: 105% 75% 100% AA+ USD 2.5bn backed
Slide 72: Group Investments – net capital gains / losses
Group Investments – net capital gains / losses Net capital losses/gains on investments and impairments (in P&L) Equity investments of which: impairments Equity investments Debt investments Debt investments in USD millions Other investments in USD millions Other investments 1000 1000 963 500 389 452
Slide 73: 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 5000 4,188 4000 3000 2,467 2000 1,646 1000 720 75 13 356 2 7 0 Equity investments Debt investments -7 -40 -324 Other investments -1000
Zurich Insurance Group — 9M 2012 Earnings Presentation on 6ix