Slide 1: Half-year 2018 Results
Half-year 2018 Results Investor and analyst presentation Zurich, 3 August 2018 We make the world more resilient.
Slide 2: Swiss Re delivers solid results in the first half of 2018
Swiss Re delivers solid results in the first half of 2018 • Swiss Re benefits from strong improvement in P&C underwriting performance and reports Group net income of USD 1.0bn; ROE 6.3% • Estimated adverse pre-tax impact of USD 265m due to new US GAAP accounting guidance; absent this change, Group n
Slide 3: Key figures
Key figures Corporate Total Total USD m, unless otherwise stated P&C Re L&H Re Life Capital Group items Solutions H1 2018 H1 2017 • Gross premiums written 9 570 7 372 2 043 1 841 - 19 589 18 145 • Premiums earned and fee income 7 701 6 389 1 918 822 - 16 830 16 204 • EBIT 1 070 708 77 79 -262 1 531
Slide 4: P&C Reinsurance result reflects stronger underwriting performance
P&C Reinsurance result reflects stronger underwriting performance Gross premiums written EBIT Net income USD m USD m USD m 12 000 11 124 2 000 1 772 1 400 1 278 10 000 9 650 9 404 9 570 1 800 1 600 1 200 8 000 1 400 1 241 1 000 870 1 200 1 070 800 752 6 000 1 000 862 600 546 800 4 000 600 400 400 2
Slide 5: P&C Reinsurance 2018 renewals show volume and price increases
P&C Reinsurance 2018 renewals show volume and price increases Premiums volume, YTD 2018 treaty renewals1 USD bn +9% Risk adjusted 14.4 price quality at 13.2 104% for July 3.8 Asia (103% YTD) 3.1 4.1 4.7 Americas Higher rates EMEA 6.0 5.9 across most lines of business and Up for renewal Estimated out
Slide 6: L&H Reinsurance continues to deliver strong results and profitable growth
L&H Reinsurance continues to deliver strong results and profitable growth Gross premiums written EBIT Net income USD m USD m USD m 8 000 7 372 900 841 600 6 586 6 399 743 708 509 704 7 000 800 5 934 500 417 432 398 700 6 000 600 400 5 000 500 4 000 300 400 3 000 300 200 2 000 200 100 1 000 100 0 0 0
Slide 7: L&H Reinsurance growth increases diversification and supports sustainability of results
L&H Reinsurance growth increases diversification and supports sustainability of results Portfolio mix by region Net premiums earned and fee income in USD bn Asia Pacific and 7 +11% EMEA are key 6 26% drivers for 5 25% growth 4 32% 28% 3 2 47% 43% 1 0 ~30% of H1 2017 H1 2018 economic Asia Pacific EME
Slide 8: Corporate Solutions benefits from a moderately improving market environment
Corporate Solutions benefits from a moderately improving market environment Gross premiums written1 EBIT Net income USD m USD m USD m 359 2 500 400 300 2 014 350 250 248 2 000 1 676 1 783 1 699 300 200 250 1 500 200 150 1 000 150 100 100 77 55 58 500 50 47 45 50 39 0 0 0 H1 2015 H1 2016 H1 2017 H1 2
Slide 9: Corporate Solutions delivering on key priorities
Expansion of Primary Lead Corporate Solutions delivering on key priorities capabilities: global network Primary Lead coverage for • Expansion of own domestic and international primary 18 Number of own producing countries international lead producing capabilities to 18 and 9 countries programmes >80
Slide 10: Life Capital delivers exceptional gross cash generation and makes significant dividend distribution to the Group
Life Capital delivers exceptional gross cash generation and makes significant dividend distribution to the Group Gross premiums written EBIT Net income USD m USD m USD m 2 000 1 841 800 717 600 569 1 800 700 500 1 600 600 1 400 400 500 1 200 886 932 250 769 1 000 400 300 800 300 266 600 200 194 200
Slide 11: Life Capital continues to grow in open books as well as extracting GCG
USD 1.1bn Life Capital continues to grow in open books as dividend well as extracting GCG upstreamed to the Group in USD m H1 2018 1 761 1 841 1 489 Gross 1 346 Closed Books / other 1 163 Premiums 827 Open Books Written 2013 2014 2015 2016 2017 H1 2018 GCG 2016- 2018 target of USD 2.3-2.5bn 998 1 05
Slide 12: Swiss Re is exploring a potential IPO of its UK closed book business ReAssure
Swiss Re is exploring a potential IPO of its UK closed book business ReAssure in 2019 UK Closed Book Market Opportunity Total reserves ~ USD 440bn • UK closed book market represents an attractive cash-flow driven business opportunity and remains a growth area for Swiss Re • ReAssure has proven abili
Slide 13: Group investment result impacted by change in accounting guidance and lower realisation of gains
Group investment result impacted by change in accounting guidance and lower realisation of gains, while running yield remains stable Average invested assets Return on investments Running yield USD bn, basis for ROI calculation 140 115.3 114.3 116.1 120 110.3 4.0% 3.7% 100 3.5% 3.0%1 3.0% 3.0% 80 2.9
Slide 14: Group investment portfolio is well positioned for increase in recurring income
Group investment portfolio is well positioned for increase in recurring income Global portfolio composition drives H1 2018 Running yield profile by fixed income maturity bucket diversification USD bn and sustainable 4.0% 100 performance Group running 3.1% 80 3.0% yield, 2.9% 2.5% 60 ~97% of fixed 2.
Slide 15: Swiss Re leads in sustainability through solutions, risk policies and responsible investment strategy
Swiss Re leads in sustainability through solutions, Designed first- risk policies and responsible investment strategy ever insurance solution for coral reefs Sustainability highlights 2018 External recognition • Developed solutions for sustainability, including covers for offshore wind farm AAA-rati
Slide 16: Appendix
Appendix • Business segment results H1 2018 – Income statement • Overall investment portfolio • Business segment results H1 2018 – Balance sheet • Fixed income securities • Total equity and ROE H1 2018 • Equities and alternative investments • P&C Reinsurance – 2018 renewals • Estimated impact of acc
Slide 17: Business segment results H1 2018 – Income statement
Business segment results H1 2018 Income statement Corporate Total Total USD m Reinsurance P&C Re L&H Re Solutions Life Capital Group items Consolidation H1 2018 H1 2017 Revenues Gross premiums written 16 942 9 570 7 372 2 043 1 841 - -1 237 19 589 18 145 Net premiums written 15 712 9 289 6 423 1 713
Slide 18: Business segment results H1 2018 – Balance sheet
Business segment results H1 2018 Balance sheet Corporate End End 30 June 2018, USD m Reinsurance P&C Re L&H Re Solutions Life Capital Group Items Consolidation H1 2018 FY 2017 Assets Fixed income securities 65 466 34 739 30 727 8 097 23 494 45 - 97 102 101 786 Equity securities 2 387 1 649 738 275 4
Slide 19: Total equity and ROE H1 2018
Total equity and ROE H1 2018 Corporate Total USD m Reinsurance P&C Re L&H Re Solutions Life Capital Group Items H1 2018 Common shareholders' equity1 at 31 December 2017 18 226 10 755 7 471 2 385 7 088 5 675 33 374 Net income/loss attributable to common shareholders 1 150 752 398 58 34 -236 1 006 Div
Slide 20: Decrease in common shareholders' equity driven by capital repatriation and unrealised losses
Decrease in common shareholders' equity driven by capital repatriation and unrealised losses USD m Dividends -1.6 Share buy-back -0.7 Gov bonds -0.7 Corp bonds -1.7 Sec products -0.1 1 006 Other -0.1 - 2 323 Tax 0.5 33 374 - 2 145 139 30 051 Common shareholders' Net income Dividends and share buy-ba
Slide 21: P&C Reinsurance: 2018 renewals
P&C Reinsurance: 2018 renewals Portfolio weighting by line of business and region Gross premium volume, treaty portfolio Up for renewal July YTD, USD 13.2bn Estimated outcome July YTD, USD 14.4bn By line of business 15% 14% Casualty 42% 21% 45% Nat cat 24% Property 1 Specialty 1 19% 20% By region 24
Slide 22: P&C underwriting performance
P&C underwriting performance P&C Reinsurance and Corporate Solutions Combined ratio Main drivers of change Net premiums Underwriting earned result P&C Reinsurance H1 2018 H1 2018 H1 2017 H1 2018 USD m USD m Property 88.7% 83.6% • H1 2018 reflects benign large loss experience 2 707 444 Casualty 106.2
Slide 23: Corporate Solutions combined ratio breakdown
Corporate Solutions Combined ratio breakdown Combined ratio Combined ratio decomposition %pts 104.5 101.7 %pts 14.3 H1 2017 H1 2018 15.5 Reported combined ratio 104.5 101.7 20.4 19.0 • Large natural catastrophe impact -4.1 -0.7 4.1 0.7 2.0 7.2 • Large man-made impact -2.0 -7.2 • Total prior-year dev
Slide 24: Return on investments (ROI)
Return on investments (ROI) Corporate Group Consoli- Total Total USD m P&C Re L&H Re Solutions Life Capital items dation H1 2018 H1 2017 Investment related net investment income 587 570 106 437 127 -141 1 686 1 521 Fixed income 397 530 101 420 1 - 1 449 1 357 Equities and alternative investments -in
Slide 25: Overall investment portfolio
Overall investment portfolio Other investments (incl. policy Cash and cash equivalents loans) 4% Mortgages and other 8% End loans Short-term investments USD bn H1 2018 4% 3% Balance sheet values 162.6 Equities 5% Unit-linked investments -29.6 Government bonds 41% With-profit business -5.4 Assets for
Slide 26: Fixed income securities
Fixed income securities Government Credit USD m bonds bonds End • Decrease in government bonds driven by net sales and FY 2017 54 658 47 128 market value losses stemming from rising interest rates as End well as foreign exchange impacts H1 2018 52 435 44 667 • Credit bonds include corporate bonds (U
Slide 27: Equities and alternative investments
Equities and alternative investments Equity securities Exchange-traded funds by sector Non-Cyclical Consumer Goods End End 2% Financials USD m FY 2017 H1 2018 2% 2% 3% Information Technology 6% Equity securities 3 326 2 706 6% Cyclical Services General Industrials Private equity 1 382 1 427 7% 46% B
Slide 28: Estimated impact of changes in US GAAP accounting guidance on reported earnings
Estimated impact of changes in US GAAP accounting guidance on reported earnings Corporate Total P&C Re L&H Re Life Capital Group items USD m Solutions H1 2018 Market value of equities & alternative investments (AI) affected by the accounting guidance change1 2 277 745 282 45 654 4 003 CURRENT RULES:
Slide 29: Swiss Re's responsible investments strategy supports higher risk-adjusted returns
Swiss Re’s responsible investments strategy supports higher risk-adjusted returns Enhancement Inclusion Exclusion Holistic approach considering asset Thematic and impact investing Divestments class specific characteristics 2017 • Green bond investments: USD 1.4bn • Coal-related companies: more than
Slide 30: 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
Slide 31: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2018 1 November Nine Months 2018 Key Financial Data Conference call 2019 21 February Annual Results 2018 Conference call 14 March Publication of Annual Report 2018 17 April 155th Annual General Meeting Zurich Investor Relations contacts Hotline E-mail