Swiss Re Ag · SIX:SREN
Swiss Re — Investor Presentation (September 2011)
14 slides from Swiss Re's investor presentation, Sep 12, 2011
Slide 1: Tomorrow, today – Investors and Media meeting, Monte Carlo
a Tomorrow, today Together into the future Investors and Media meeting Monte Carlo, 12 September 2011
Slide 2: Today's agenda
Today’s agenda a Introduction Stefan Lippe, CEO P&C reinsurance market outlook Brian Gray, CUO Swiss Re reinsurance – Christian Mumenthaler, CMO* Tomorrow, Today Questions & answers * CEO Reinsurance from 1 October 2011 Investors & Media meeting | Monte Carlo | 12 September 2011 2
Slide 3: Introduction: Plenty of challenges and opportunities for the industry
a Introduction Stefan Lippe, CEO Investors & Media meeting | Monte Carlo | 12 September 2011 3 Today Plenty of challenges and opportunities for the industry a Big challenges for re/insurers under current economic environment – Extremely low interest rates – Volatility in stock markets – Impact of
Slide 4: Tomorrow: Swiss Re well positioned thanks to new group structure
Tomorrow Swiss Re well positioned to capture growth opportunities thanks to new group structure a 2010 2011 April May June July Q4 2011 2012 10 June 2010 1 October 2010 2012 Clear strategic Aligned mgmt Expected court Segmental reporting priorities structure approval for under new structure invalida
Slide 5: P&C reinsurance market outlook
a P&C reinsurance market outlook Brian Gray, CUO Investors & Media meeting | Monte Carlo | 12 September 2011 6 The P&C reinsurance cycle – Today a Underwriting terms have improved and we expect this to continue Record low interest rates are the biggest shock of the last three years Investors & M
Slide 6: The P&C reinsurance cycle
The P&C reinsurance cycle Drivers of market turn a US P&C primary underwriting cash flows P&L 20% – Soft market pricing since 2008 10% – Reserve releases not sustainable – Record low interest rates pressure 0% technical results -10% – Natural catastrophe events of 2010-11 2004 2005 2006 2007 200
Slide 7: Property: Peak risks continue long-term upwards trend
Property Peak risks continue long-term upwards trend a Insured losses Today USD billions, at 2011 prices 125 – Recent events have highlighted 100 earthquake risk potential 75 – European winterstorm exposures have 50 lost visibility, but remain potent 25 0 1970 1979 1988 1997 2006 08.2011 Source: S
Slide 8: The interest rate shock
The interest rate shock a 5-year treasury bonds Low yields pressure ROE 20% 8 18% 6 16% ROI: 5,9% 14% 4 ROE 12% 2 10% 2000 8% ROI: 3,5% 0 6% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 4% 2010 90% 92% 94% 96% 98% 100% 102% 104% 106% US UK Germany Combined ratio Aggregate of eight maj
Slide 9: Swiss Re reinsurance – Tomorrow, Today
a Swiss Re reinsurance – Tomorrow, Today Christian Mumenthaler, CMO* * CEO Reinsurance from 1 October 2011 Investors & Media meeting | Monte Carlo | 12 September 2011 14 Swiss Re and the Francophone reinsurance market: a long term relationship a Swiss Re created its first foreign office in France
Slide 10: Excellent capitalisation
Excellent capitalisation Swiss Re’s capital adequacy in various measures a Estimated Group capital adequacy measures as at 30 June 2011 Swiss Solvency Test / >200% SST green zone threshold: 100% Internal model Comfortably exceeds a S&P excess capital capital buffer of USD Internal goal: meet AA requ
Slide 11: Outperformance through cycle management
Outperformance through cycle management Market share vs profitability, 2006–2010 a Swiss Re’s P&C premium Swiss Re’s P&C underwriting profit1 share vs top 8 reinsurers share vs top 8 reinsurers 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Slide 12: Continued track record of innovation
Continued track record of innovation Some recent examples a P&C run-off transactions Two important P&C run-off transactions with our clients Transactions are a testimony to our client franchise Longevity securitisation Swiss Re issued first longevity/mortality basis risk bond The bond protec
Slide 13: Questions & answers
a Questions & answers Investors & Media meeting | Monte Carlo | 12 September 2011 22 Corporate calendar & contacts a Corporate calendar 03 November 2011 Third Quarter 2011 results Conference call 23 February 2012 Annual Results Zurich 13 April 2012 148th Annual General Meeting Zurich 17 April 2012 I
Slide 14: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements a Certain statements and illustrations contained herein are forward-looking. These statements and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a histor