Swiss Re Ag · SIX:SREN
Swiss Re — Berenberg SRI Conference 2017
48 slides from Swiss Re's conference presentation, Mar 28, 2017
Slide 1: Sustainability – a guiding principle at Swiss Re
Sustainability – a guiding principle at Swiss Re Berenberg SRI Conference 2017 Paris, 28 March 2017
Slide 2: Table of Contents / Agenda
Table of Contents / Agenda • Swiss Re’s value proposition • Sustainability at Swiss Re • Corporate Governance and compensation framework • Summary Berenberg SRI Conference 2017 2
Slide 3: Swiss Re’s value proposition
Swiss Re’s value proposition Berenberg SRI Conference 2017 3
Slide 4: Global re/insurance is a catalyst for economic growth
Global re/insurance is a catalyst for economic growth What global Benefit to society Pre-requisites re/insurers do Risk transfer Diversify risks on a Make insurance more Global mobility of function global basis broadly available and premiums and capital less expensive Capital market Invest premium P
Slide 5: Swiss Re Group at a glance
Swiss Re Group at a glance Swiss Re is a leading and highly diversified global reinsurer, founded in Zurich (Switzerland) in 1863 The Group offers traditional reinsurance products and related services for property and casualty, as well as for life and health businesses The Group also offers commerci
Slide 6: Swiss Re is well diversified across geographic regions and business segments
Swiss Re is well diversified across geographic regions and business segments Net premiums earned1 Economic Net Worth3 by region (in USD bn, 2016) by business segment (in %, 2016) 15.1 10.9 7.2 Corporate Solutions 9% Life Capital 12% P&C Re 45% Americas Europe Asia (incl. Middle East /Africa) 45% 33%
Slide 7: Our business model has positioned Swiss Re as a leading player
Our business model has positioned Swiss Re as a leading player Swiss Re Group Corporate Reinsurance Life Capital Solutions Strategic goal P&C L&H Strategic goal Strategic goal Strategic goal • To beposition Current a recognised • To be the world's • To be a focused, lean, player in the wholesale lea
Slide 8: Swiss Re delivers good performance in 2016
Swiss Re delivers good performance in 2016 • Swiss Re reports Group net income of USD 3.6bn, supported by continuing solid underwriting performance and strong investment result; ROE 10.6% • P&C Reinsurance delivers good results through differentiation of services; ROE 16.4% • L&H Reinsurance continu
Slide 9: Swiss Re’s performance and business model enable significant capital distribution
Swiss Re’s performance and business model enable significant capital distribution Dividend flows since new structure in 2012 USD 14.8bn1 distribution to shareholders Buy-back CHF 1bn2 Swiss Re Ltd PI3 USD 10.5bn4 USD 3.5bn4 USD 1.7bn4 USD 2.7bn4 Reinsurance Corporate Solutions Life Capital P&C L&H S
Slide 10: In the currently challenging environment we see attractive long-term opportunities
In the currently challenging environment we see attractive long-term opportunities Key challenges Long-term opportunities • Soft market in the P&C world – • Growing risk pools rates close to economic hurdles (GDP growth and demographic trends) • Low interest rates; divergence of Central Bank policie
Slide 11: With our strategic framework, Swiss Re is well placed to face the industry challenges
With our strategic framework, Swiss Re is well placed to face the industry challenges and seize opportunities Swiss Re’s strategic framework Near-term priorities I systematically allocate capital to risk pools / Large & tailored transactions revenue streams Growth Corporate Solutions through systema
Slide 12: Both over-the-cycle Group financial targets have been exceeded in 2016
Both over-the-cycle Group financial targets have been exceeded in 2016 Group targets over-the-cycle Group Return on Equity Group ENW per share growth2 13.7% 13.7% 17.0% 10.5% 10.6% 10.0% 11.0% 9.2% 9.3% 9.4% Rf + 10% 7.2%10% 10% 10% 700 5.4% bps1 10% 2013 2014 2015 2016 Over- 2013 2014 2015 2016 Ove
Slide 13: Sustainability at Swiss Re
Sustainability at Swiss Re Berenberg SRI Conference 2017 13
Slide 14: Swiss Re’s innovative solutions for sustainability are widely recognised
Swiss Re’s innovative solutions for sustainability are widely recognised Sustainability performance highlights External recognition Business solutions DJSI Insurance Industry Leader • Innovator in climate risk transfer solutions as for the tenth time since 2004 demonstrated again by launching two pa
Slide 15: Our approach to corporate responsibility
Our approach to corporate responsibility Our vision We make the world more resilient Our mission Together, we apply fresh perspectives, knowledge, and capital to anticipate and manage risk. That’s how we create smarter solutions for our clients, helping the world rebuild, renew, and move forward. Su
Slide 16: Swiss Re’s Corporate Responsibility Map gives an overview of the topics we address
Swiss Re’s Corporate Responsibility Map (CR Map) gives an overview of the topics we address Berenberg SRI Conference 2017 16
Slide 17: We set goals for all our Corporate Responsibility Topics
We set goals for all our Corporate Responsibility Topics Advancing the climate transition Investing responsibly • Meet our investment target for green bonds of at least USD 1.0bn Managing climate and natural disaster risk • Based on our commitment made to the UN, offer USD 10 bn Engaging our people
Slide 18: Swiss Re's comprehensive climate change strategy consists of four pillars
Swiss Re's comprehensive climate change strategy consists of four pillars The four pillars of our climate change strategy 1 2 Advancing our knowledge and understanding of climate change risks, Developing products and services quantifying and integrating them into our risk to mitigate or adapt to cli
Slide 19: We constantly advance our knowledge of climate change risks
We constantly advance our knowledge of climate change risks Understanding nat cat risk and the impact of climate change • Investing in proprietary, state-of-art nat cat models and collaboration with universities and scientific institutions Partnering with Solar Impulse to shape the future of renewab
Slide 20: We create business solutions to offer innovative, effective protection against natural catastrophes
We create business solutions to offer innovative, effective protection against natural catastrophes Adapting to climate change • Re/insurance protection against extreme weather events and weather volatility to help communities adapt to climate change, by making them more resilient against such risks
Slide 21: We advance sustainable energy solutions
We advance sustainable energy solutions Combating global warming with sustainable energy solutions • As sustainable energy projects increase in scale and complexity, so do the risks associated with them. Innovative risk transfer solutions help reduce these risks and drive investment in the sector •
Slide 22: We raise awareness through dialogue, and share our expertise on climate risks
We raise awareness through dialogue, and share our expertise and knowhow on climate risks Engaging in regular dialogue with stakeholders • Sharing and exchanging knowledge through many channels, e.g. our renowned publications including sigma series, international dialogue platforms, events at our Ce
Slide 23: We lead by example and reduce our own carbon footprint
We lead by example and reduce our own carbon footprint Reducing emissions with the Greenhouse Neutral Programme • In first cycle of programme (2003 – 2013), CO2 emissions per employee were reduced by more than 49% • Ambition for the programme’s second cycle (2014 -2020): keep CO2 emissions stable –
Slide 24: We partner for food security
We partner for food security Protecting farmers against the perils of nature • Innovative risk transfer solutions tailored to the needs of farmers, such as index-based solutions, which are cheaper and faster to deploy. Creating incentives for buying insurance, e.g. by establishing insurance as colla
Slide 25: We create stability for individuals and society with life & health and longevity solutions
We create stability for individuals and society with life & health and longevity solutions Keeping our finger on the pulse of life and health • Longevity and health insurance are two of our strategic priorities in the life & health business • Providing financial security in the event of death or ill
Slide 26: We manage sustainability risks with the Sustainability Risk Framework
We manage sustainability risks in our business with the Sustainability Risk Framework Our Sustainability Risk Framework facilitates the identification, mitigation and elimination of potential environmental, social and ethical risks inherent to our business transactions and investments • Group-wide f
Slide 27: We continuously refine and strengthen our approach to managing sustainability risks
We continuously refine and strengthen our approach to managing sustainability risks • Online Sensitive Business Risk (SBR) Assessment Tool was rolled out in 2015 to facilitate sustainability checks by underwriters and client managers • Due diligence checks conducted by underwriters: – 3 550 in 2015
Slide 28: Swiss Re is a responsible investor
Swiss Re is a responsible investor Environmental, Social and Governance (ESG) considerations are an integral part of our investment approach: We look at ESG integration primarily from a view of generating sustainable long term returns, aligned with our Asset-Liability Management (ALM) framework Gove
Slide 29: We are engaged as a long-term investor
We are engaged as a long-term investor http://www.swissre.com/library/archive/growth http://www.swissre.com/library/203599391 http://www.swissre.com/library/archive/24631 http://www.swissre.com/library/296688111.html _recipes_the_need_to_strengthen_private_capita .html 5951.html l_markets.html • Fut
Slide 30: Swiss Re attracts and engages a talented and diverse workforce
Swiss Re attracts and engages a talented and diverse workforce Developing & Talent growth and skill development through Swiss Re Academy training our Talent pools, various development programmes, mentoring talent Two dimensional performance management ("what" and "how") Inclusive corporate c
Slide 31: We ensure sustainability in our operations by reducing our environmental footprint
We ensure sustainability in our operations by reducing our environmental footprint Global ISO 14001 certification • Global management system (GMS): integrated quality and environmental management • Over 60% energy productivity increase since 2003 (EP100 Member) • Internal price on carbon – levy on t
Slide 32: Empowering communities is at the core of the Swiss Re Foundation
Empowering communities is at the core of the Swiss Re Foundation Core goals • Empower communities to build resilience in the focus areas of water, climate, natural hazards, and topics relevant to society AND Swiss Re • Contribute to promoting social welfare, protecting the environment and enhancing
Slide 33: We explore new topics and shape our position on emerging societal challenges
We explore new topics and shape our position on emerging societal challenges Advancing access to insurance • Access to insurance is an important contributor to economic development. However, 60% of the world’s population still remain excluded from appropriate insurance products • We work on advancin
Slide 34: The Swiss Re Institute aims to build on Swiss Re's position as the thought leader
The Swiss Re Institute aims to build on Swiss Re's position as the thought leader in the re/insurance industry • The Swiss Re Institute was launched in March 2017 • It combines Swiss Re's renowned expertise with world class external research partners to deliver powerful insights on current and futur
Slide 35: We explore and shape the risk landscape by publishing our insights
We explore and shape the risk landscape by publishing our insights http://www.swissre.com/library/ Berenberg SRI Conference 2017 35
Slide 36: Corporate Governance and compensation framework
Corporate Governance and compensation framework Berenberg SRI Conference 2017 36
Slide 37: Swiss Re’s Governance regularly assessed to align with best practice
Swiss Re’s Governance regularly assessed to align with best practice and new stakeholder demands • Board of Directors is responsible for oversight and Group Executive Committee (Group EC) for managing operations – this structure maintains effective mutual checks and balances between these two top co
Slide 38: Swiss Re’s corporate governance framework fosters sustainable oversight and management
Swiss Re’s corporate governance framework fosters sustainable oversight and management Berenberg SRI Conference 2017 38
Slide 39: Documents governing Swiss Re’s organisation and management
Documents governing Swiss Re’s organisation and management Berenberg SRI Conference 2017 39
Slide 40: The compensation framework is based on clear principles and is governed by the Board
The compensation framework is based on clear principles and is governed by the Board of Directors (BoD) A strong performance culture with a clear focus on risk-adjusted financial results A clear link between business results, Incentives for individual sensible, controlled risk-taking Compensation co
Slide 41: The compensation framework is designed to promote long-term sustainable performance
The compensation framework is designed to promote long-term sustainable performance *Certain members of Business Unit Executive Committees (BU ECs) and all Group Managing Directors (GMDs). Berenberg SRI Conference 2017 41
Slide 42: Swiss Re's compensation elements are targeting different seniority levels
Swiss Re's compensation elements are targeting different seniority levels total compensation deferred compensation relates to business year performance Group Executive Committee (EC) Leadership Member of BU EC or Deferred Performance Group Managing Director (GMD) Annual Plan Member of BU EC or Perfo
Slide 43: Risk alignment of Group EC compensation
Risk alignment of Group EC compensation • For senior executives and in particular the Group EC, a substantial part of total compensation is "at risk", i.e., performance related and deferred • Compensation in general and also for the Group EC is periodically reviewed against relevant market data Bere
Slide 44: Attribution of Group income to stakeholders
Attribution of Group income to stakeholders • The table below shows the dispersal of Group income to key stakeholders (employees, government and shareholders) over the last five years • The normalised tax rate is approximately 20% - 25% (2015 and 2016 reflect one-off tax benefits) • A significant ev
Slide 45: Summary
Summary Berenberg SRI Conference 2017 45
Slide 46: Summary
Summary • Swiss Re is a leading and highly diversified global re/insurance group with more than 150 years experience • Swiss Re had a strong performance in 2016 • Swiss Re takes the long-term view and enables sustainable progress. Our products help to address key environmental and social challenges,
Slide 47: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2017 21 April 153rd Annual General Meeting Zurich 4 May First Quarter 2017 Results Conference call 4 August Second Quarter 2017 Results Conference call 2 November Third Quarter 2017 Results Conference call Investor Relations contacts Hotline E-mail +4
Slide 48: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements Certain statements and illustrations contained herein are forward-looking. These statements (including as to plans, objectives, targets, and trends) and illustrations provide current expectations of future events based on certain assumptions and include