Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — FY2021 Earnings Presentation
74 slides from Zurich Insurance's earnings presentation, Feb 10, 2022
Slide 1: Consistent Execution Drives Record Results
Consistent Execution Drives Record Results Annual results 2021 February 10, 2022 Investor and media presentation Zurich Insurance Group
Slide 2: Content
Content MAIN SECTIONS OTHER IMPORTANT INFORMATION (use symbols to navigate through the document) (use symbols to navigate through the document) Key highlights Disclaimer Group results and outlook Dividend policy Property & Casualty (P&C) Customer KPIs Life P&C reinsurance program Farmers Farmers Exc
Slide 3: Key messages
Key messages On track to meet or exceed Execution of group strategy drives strong performance across all businesses; FY-21 BOP 2022 targets rises 35% to USD 5.7bn, the highest since 2007 Improved customer metrics Net promoter score improved in most major markets with ~2.2m net new customers support
Slide 4: Group on track to meet or exceed 2022 targets
KEY HIGHLIGHTS Group on track to meet or exceed 2022 targets BOPAT ROE (%)1 CASH REMITTANCES EPS GROWTH (%)2 SST (%)3 (USDbn) 212% 14.0% >14% >11.5 7.3% ≥160% 7.8 ≥5% p.a. FY-21 4.4 FY-20 3.4 FY-21 Target Cumulative Target FY-21 vs. FY-19 Target FY-21e Target to FY-21 2020-2022 CAGR 1 Business opera
Slide 5: Execution of Group strategy drives strong performance across all businesses
KEY HIGHLIGHTS Execution of Group strategy drives strong performance across all businesses; FY-21 BOP above pre-pandemic levels GROUP BOP (USDbn) TOP-LINE 40.1 34.2 35.5 P&C GWP 5.7 (USDbn) 5.3 4.2 4.0 3.6 3.8 Life APE1 (USDbn) 24.2 20.7 20.1 Farmers Exchanges2 GWP (USDbn) 21.5 FY-19 FY-20 FY-21 FY-
Slide 6: Robust growth in Commercial and Retail and SME insurance
KEY HIGHLIGHTS Robust growth in Commercial and Retail and SME insurance, driven by higher premium rates and net new business P&C GWP GROWTH (%)1 FY-21 P&C GWP GROWTH BY DRIVER (USDbn)2 COMMERCIAL 11% 17.6 0.8 0.3 +12% 15.8 1.3 Like-for-like1 6% 4% 1% 0% RETAIL AND SME 12.7 FY-17 FY-18 FY-19 FY-20 FY
Slide 7: In Retail, increased customer satisfaction drives higher retention and net customer growth
KEY HIGHLIGHTS In Retail, increased customer satisfaction drives higher retention and net customer growth HIGHER CUSTOMER SATISFACTION IMPROVED RETENTION2 NET CUSTOMER GROWTH3 ACROSS THE GROUP1 +4% 55.4 Asia Pacific +3ppts EMEA +3 +10 2.2 Farmers Exchanges4 Latin America +2ppts 53.1 +5 +8 +3 Latin A
Slide 8: Disciplined execution drives outstanding financial results in Commercial Insurance
KEY HIGHLIGHTS Disciplined execution drives outstanding financial results in Commercial Insurance NEP GROWTH (%)1 COMBINED RATIO (%) LARGE LOSS VOLATILITY BOP (USDbn) (ppts)2 2.2 13% -13ppts 107% 1.5 100% 100% 2.0 97% 94% 2% 0.4 1.1 3.7 4% 2.8 78% 2.5 72% 69% 69% 65% 1.9 1.9 1% -1% -0.8 -0.5 13ppts
Slide 9: Strong Life result from continued execution of long-term strategy
KEY HIGHLIGHTS Strong Life result from continued execution of long-term strategy to focus on protection and capital light savings products APE BY PRODUCT (USDm) NBV BY PRODUCT (USDm) LIFE BOP LIKE-FOR-LIKE (USDm)1 +5% +21% +5% like-for-like1 +22% like-for-like1 +20% 3,824 959 3,625 53 292 412 788 69
Slide 10: Growth in exclusive agents and improved productivity drive growth in gross premiums
KEY HIGHLIGHTS Growth in exclusive agents and improved productivity together with MetLife acquisition drive growth in gross premiums NPS & RETENTION (%) EXCLUSIVE AGENTS NEW BUSINESS SALES (%)2 GWP (USDm) 53.4 Total number Exclusive of agents2 +2.0% Agents +5.9% +20% 50.4 24'228 20'108 82.7% NEW BUS
Slide 11: Accelerating our ambition and our delivery for a sustainable future
KEY HIGHLIGHTS Accelerating our ambition and our delivery for a sustainable future STEPPING UP ON OUR AMBITION DELIVERING ON OUR STRATEGY1 ~USD 300m +11% of GWP and policy fees in climate solutions investments generated from sustainable to USD 8.2bn since 2019, CONFIDENCE IN A WORK solutions2 avoidi
Slide 12: Executing on our strategy to improve return on capital in P&C and Life
KEY HIGHLIGHTS We are executing on our strategy to improve our return on capital in P&C and Life SALE OF ITALIAN LIFE AND PENSION BACK BOOK1 CAPITAL ALLOCATION PROCESS AND PRIORITIES ~USD 1.2bn Allocation decisions based on strategic Reduction in SST target capital priorities ~+11ppts Financial and
Slide 13: Continued strong cash remittance; CHF 22 dividend proposed
KEY HIGHLIGHTS Continued strong cash remittance; CHF 22 dividend proposed1 CASH REMITTANCES (USDbn) DIVIDEND PER SHARE (CHF) +5% p.a. 4.4 22 3.4 3.4 20 20 0.1 1.3 19 1.2 18 1.4 0.8 0.9 0.7 3.2 2.3 2.3 -0.1 0.0 -0.9 -1.0 -0.9 FY-19 FY-20 FY-21 FY-17 FY-18 FY-19 FY-20 FY-211 Property & Casualty Farmer
Slide 14: Key messages
Key messages On track to meet or exceed Execution of group strategy drives strong performance across all businesses; FY-21 BOP 2022 targets rises 35% to USD 5.7bn, the highest since 2007 Improved customer metrics Net promoter score improved in most major markets with ~2.2m net new customers support
Slide 15: CFO update
@ ZURICH CFO update
Slide 16: All regions and business lines drive increase in Group BOP
GROUP – BUSINESS OPEATIING PROFIT All regions and business lines drive increase in Group BOP BOP BY REGION (USDm) BOP BY BUSINESS (USDm) +35% +35% 5,742 5,742 458 4,241 583 1'617 457 4,241 317 1'617 1'501 1'501 1'812 1'736 1'384 1'423 3'121 1'700 2'019 2'080 -1'117 -671 -54 -1 -709 -806 FY-20 FY-21
Slide 17: Strong growth in net income attributable to shareholders
GROUP – NET INCOME ATTRIBUTABLE TO SHAREHOLDERS Strong growth in net income attributable to shareholders driven by BOP growth and higher realized capital gains BOP TO NIAS WALK (USDm) 23.0% Effective tax rate -411 -185 1'547 -1,621 +36%2 352 223 238 5'742 5'202 3'834 FY-21 BOP Realized capital Restr
Slide 18: 2022 outlook
GROUP – OUTLOOK 2022 outlook • Commercial pricing expected to remain in excess of loss cost inflation • Net earned premium growth is expected to be in the mid-to-high single digit range PROPERTY & CASUALTY • Losses from natural catastrophes anticipated to be around ~3.5ppts • Investment income decli
Slide 19: Strong growth and rate change
P&C – TOP-LINE Strong growth and rate change FY-21 TOP-LINE DEVELOPMENT TOTAL RATE CHANGE (%)2 GWP like-for-like GWP (USDm) Rate change (%)2 Rate change outlook growth (%)1 8.1% EMEA 17,845 8% 6% Stable 7.2% North America 18,232 13% 12% Moderating 3.8% Asia Pacific 3,223 9% 5% Stable 2.3% Latin Amer
Slide 20: P&C BOP up 50% driven by underwriting improvements
P&C – BOP COMPONENTS P&C BOP up 50% driven by underwriting improvements, cost discipline and improved net impact from COVID-19 BOP (USDm) BREAK DOWN BY COMPONENT (USDm) +21% vs. FY-20 adjusted3 +50% 3,777 3,121 3,121 3,115 121 806 236 2,080 235 2'307 1'681 -150 1'395 239 48 1'706 1'396 1'740 1'688 1
Slide 21: Portfolio quality supports continued combined ratio improvement
P&C – COMBINED RATIO DETAILS Portfolio quality supports continued combined ratio improvement COMBINED RATIO (%) LOSS RATIO (%) EXPENSE RATIO (%) AY excl. Cat AY excl. Cat Excl. and COVID1 92.8% 90.9% -1.9ppts and COVID1 61.1% 59.8% -1.3ppts COVID1 31.7% 31.1% -0.6ppts 98.4% 66.4% 32.0% 31.2% 94.3% 6
Slide 22: Underlying profitability improvement driven by Commercial
P&C – COMBINED RATIO BY SEGMENT AND CUSTOMER UNIT Underlying profitability improvement driven by Commercial AY COMBINED RATIO (CR) EX CATASTROPHES AND COVID BY REGION (%)1 AY CR EXCL. CATASTROPHES AND COVID-19 BY CUSTOMER UNIT (%)1 -2.0ppts 0.0ppts -1.5ppts -0.4ppts -2.7ppts -2.0ppts 98.2% 96.2% 90.
Slide 23: Lower P&C investment result
P&C – INVESTMENT RESULT Lower P&C investment result driven by reduction in portfolio yield and lower hedge fund gains INVESTMENT RESULT IN BOP (USDm) INVESTMENT INCOME YIELD OF GROUP INVESTMENTS (%)1 2.7% 2.5% 2,045 305 1,731 42 FY-20 FY-21 1'740 1'688 BOOK & REINVESTMENT YIELD OF DEBT SECURITIES (%
Slide 24: Life BOP ex-COVID up 26%
LIFE – BUSINESS OPERATING PROFIT Life BOP ex-COVID up 26%; continued focus on protection and capital light saving products supported margin improvement BOP (USDm) KEY DRIVERS +26% • COVID-19: FY-21 impact of USD 195m versus excl. COVID-19 USD 173m at FY-20 +27% 2,007 1,812 54 46 • Switzerland: growt
Slide 25: EMEA and APAC with strong growth in premiums and net inflows
LIFE – PREMIUMS, NET INFLOWS AND ASSETS UNDER MANAGEMENT EMEA and APAC with strong growth in premiums and net inflows GWP AND DEPOSITS (USDbn) NET INFLOWS BY SEGMENT (USDbn) ASSETS UNDER MANAGEMENT (USDbn) 1% +45% +3% like-for-like1 +39% like-for-like1 -3% 27.6 28.4 6.0 303 10 295 6 -15 5.4 -9 5.7 1
Slide 26: NBV up 21% on a like-for-like basis
LIFE – NEW BUSINESS AND NEW BUSINESS MIX NBV up 21% on a like-for-like basis due to higher sales volumes, more favorable business mix and improved margins APE (USDm)1 NBV (USDm)1 NBM (%)1 NEW BUSINESS MIX (%) +5% +21% FY-21 APE1 like-for-like2 like-for-like2 8% +5% +22% +4.0ppts 18% 38% USD 3,824 95
Slide 27: Higher investment result in Life
LIFE – INVESTMENT RESULT Higher investment result in Life driven by capital gains, favorable currency movements and higher rates INVESTMENT RESULT IN BOP, GROSS OF PH (USDm)1 INVESTMENT INCOME YIELD OF GROUP INVESTMENTS (%)2 2.4% 2.6% 3,608 3,239 621 486 FY-20 FY-21 2'753 2'987 BOOK & REINVESTMENT Y
Slide 28: Farmers Management Services overview
FARMERS MANAGEMENT SERVICES – OVERVIEW Growth in Farmers Exchanges1 drives increase in fees with partial offset from lower investment income and deal costs BUSINESS OPERATING PROFIT (USDm) MGEP MARGIN (%)1 6.8% 6.6% +12% 1,534 1,375 18 FY-20 FY-21 1'568 1'357 FY-21 MGEP MARGIN BREAKDOWN (%)1 -34 7.0
Slide 29: Farmers Life and Farmers Re overview
FARMERS LIFE AND FARMERS RE – OVERVIEW Farmers Life with higher APE, BOP impacted by COVID-19 mortality; Farmers Re impacted by PYD and catastrophes BOP (USDm) FARMERS LIFE APE FARMERS LIFE NBV FARMERS LIFE NBM (%)1 (USDm)1 (USDm)1 126 75 78 121 162% 111 142% 26 83 100 84 -1 FY-20 FY-21 FY-20 FY-21
Slide 30: Group Functions and Operations & Non-Core Businesses BOP
GROUP FUNCTIONS AND OPERATIONS & NON-CORE BUSINESSES – BOP Increased financing costs related to MetLife transaction; Improved Non-Core Businesses from lower market volatility GROUP FUNCTIONS AND OPERATIONS BOP (USDm) NON-CORE BUSINESSES BOP (USDm) -1 -312 -311 -44 -49 -353 -445 -709 -806 -54 FY-20 F
Slide 31: Strong underlying capital generation lifts SST ratio
GROUP – SOLVENCY Strong underlying capital generation combined with favorable markets lead to increased SST ratio -1% 4% -19% 212% 33% 182% -3% 17% SST ratio 16% Interest rates (%)1,2 9% Equity markets 5% FX 2% Other FY-20 Economic profit / COVID-19 impact Market Assumption and Other Capital actions
Slide 32: Decline in shareholders' equity driven by dividend payment
GROUP – BALANCE SHEET AND CAPITAL STRUCTURE Decline in shareholders’ equity driven by dividend payment and lower unrealized gains SHAREHOLDERS’ EQUITY (USDm) CAPITAL STRUCTURE (%)1 -1% -3,199 11% 10% 5,202 38,278 -945 16% 18% 37,881 -2,145 691 74% 71% FY-20 NIAS Dividend Currency Net Pension FY-21 F
Slide 33: 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). Fo
Slide 34: Appendix
@ ZURICH Appendix
Slide 35: We are focused on continuing to reward our shareholders
GROUP – DIVIDEND POLICY We are focused on continuing to reward our shareholders DIVIDEND POLICY1 DIVIDEND PER SHARE (CHF) NIAS2 payout ratio of ~75% +5% p.a. 22 20 20 19 18 Dividend increases based on sustainable earnings growth FY-17 FY-18 FY-19 FY-20 FY-213 Minimum target of prior year level 1 The
Slide 36: Update on brand consideration
BRAND CONSIDERATION Update on brand consideration BRAND CONSIDERATION 20191 2020 2021 Awareness 21% 27% 33% Consideration 15 markets2 60% 14 markets2 57% 15 markets2 53% 21% Preference 13% 13% Ownership Top 3 Top 5 Below top 5 © Zurich 1 Re-calibrated on a comparable basis with 2020 and 2021. 2019 s
Slide 37: Balance sheet and large loss volatility managed through reinsurance
P&C – REINSURANCE PROGRAM Balance sheet and large loss volatility well managed through reinsurance GROUP CATASTROPHE REINSURANCE PROTECTION GLOBAL SURETY EXCESS OF LOSS (USDm) • Designed to manage earnings volatility • North America: USD 325m coverage per customer in excess 200 of USD 75m retention
Slide 38: All lines contributed to premium growth at the Farmers Exchanges
FARMERS EXCHANGES1 – GWP, PIF, COMBINED RATIO BY LINE, AND SURPLUS All lines of businesses contributed to premium growth at the Farmers Exchanges GROSS WRITTEN POLICIES-IN-FORCE COMBINED RATIO (%)2 SURPLUS3 PREMIUMS (USDm) (000’s) 100.7% 104.3% 10.5% 9.7% 90.2% 94.6% 24,228 15,706 43.2% 40.8% 20,108
Slide 39: Very strong capital position
GROUP – SOLVENCY Very strong capital position; balance sheet resilient to market movements GROUP SWISS SOLVENCY TEST (%)1,2 Q3-21 SST SENSITIVITIES IMPACT (ppts)2,3 300% Interest rate +50bps +12ppts 216% 221% 222% 212% Interest rate -50bps -14ppts 204% 200% 189% 182% Equities +20% +7ppts ≥160% Equit
Slide 40: Well diversified capital base by business segment
GROUP – SST COMPONENTS Well diversified capital base by business segment FY-21 AVAILABLE FINANCIAL RESOURCES (USDbn) FY-21 RISK CAPITAL SPLIT (%)1 Market risk 6% 5% Shareholders equity 37.9 Premium and reserve risk 9% 1% Business risk Dividend accrual -3.6 16% Natural catastrophe risk 63% Life insur
Slide 41: Low average debt cost and balanced maturity profile
GROUP – DEBT Low average debt cost and balanced maturity profile DEBT (USDbn) AND AVERAGE DEBT COST (%) BALANCED REFINANCING NEEDS (USDbn)1 15.1 2.2 13.8 2.0 Average 0.2 0.4 FY-20 FY-21 1.8 debt cost (%) 1.6 9.8 Subordinated 4.2% 4.1% 1.3 8.3 0.5 0.8 1.2 1.2 Senior 1.5% 1.6% 1.1 0.3 0.4 0.6 1.9 1.7
Slide 42: Calculation of adjusted P&C combined ratio and like-for-like growth
ALTERNATIVE PERFORMANCE MEASURES Calculation of adjusted P&C combined ratio and like-for-like growth P&C COMBINED RATIO (%) LIKE-FOR-LIKE GROWTH FY-21 FY-20 (USDm) FY-21 (USDm) FY-21 combined COVID-19 L-F-L3 KPI combined ratio KPI ratio impact1 Rep M&A Adj Rep FX M&A2 Adj2 (%) excl. COVID-191 AY los
Slide 43: Commentary
@ ZURICH Commentary
Slide 44: Page 3: Key messages (1/2)
COMMENTARY Page 3: Key messages (1/2) The Group’s disciplined approach to underwriting and a favorable market backdrop led to a strong recovery in business operating profit exceeding pre-COVID levels. Business operating profit (BOP) increased 35% compared to the prior year and 8% compared to 2019, d
Slide 45: Page 3: Key messages (2/2)
COMMENTARY Page 3: Key messages (2/2) Growth accelerated at Farmers Exchanges. Improved agency performance and customer metrics supported growth at the Farmers Exchanges, with growth of gross written premiums up 7% on a like-for-like basis and 20% including the acquired MetLife U.S. P&C business. Bu
Slide 46: Page 4: Group on track to meet or exceed 2022 targets
COMMENTARY Page 4: Key highlights – Group on track to meet or exceed 2022 targets The Group is on track to meet or exceed the 2020-2022 financial targets. • The annualized 2021 BOPAT ROE equated to 14.0% as reported including above normal levels of natural catastrophe losses and COVID-19 related ite
Slide 47: Page 5: Execution of Group strategy drives strong performance
COMMENTARY Page 5: Key highlights - Execution of Group strategy drives strong performance across all businesses; FY-21 BOP at pre-pandemic levels Group profitability rebounded strongly in the year exceeding pre-pandemic levels despite higher natural catastrophe losses and continued COVID-19 related
Slide 48: Page 6: Robust growth Commercial and Retail and SME
COMMENTARY Page 6: Key highlights - Robust growth Commercial and Retail and SME Insurance, driven by higher premium rates and net new business The Group’s P&C gross written premiums rose 11% in FY-21 on a like-for-like basis, after adjusting for currency movements and closed acquisitions and disposa
Slide 49: Page 7: Increased customer satisfaction drives retention
COMMENTARY Page 7: Key highlights – In Retail, increased customer satisfaction drives higher retention and net customer growth Through 2021, the Group maintained its priorities of protecting employees through the pandemic while supporting customers and the communities in which it operates; and execu
Slide 50: Page 8: Outstanding results in Commercial Insurance
COMMENTARY Page 8: Key highlights – Disciplined execution drives outstanding financial results in Commercial Insurance The Group’s leading Commercial Insurance business, which represents 67% of the Group’s P&C gross written premiums, delivered outstanding financial results in 2021, and we have a pos
Slide 51: Page 9: Strong Life result
COMMENTARY Page 9: Key highlights – Strong Life result from continued execution of long-term strategy to focus on protection and capital light savings products The Group’s Life business delivered a strong performance in 2021 with continued focus on the execution of its long-term strategy to grow pro
Slide 52: Page 10: Farmers Exchanges growth
COMMENTARY Page 10: Key highlights Farmers Exchanges - Growth in exclusive agents and improved productivity together with MetLife acquisition drive growth in gross premiums Key customer metrics continued to improve on account of the Farmers Exchanges’ customer focused strategy, with a further increa
Slide 53: Page 11: Accelerating our ambition for a sustainable future
COMMENTARY Page 11: Key highlights – Accelerating our ambition and our delivery for a sustainable future The experience of the global pandemic has shown the urgency of tackling the climate, social and technological challenges. During the last year, we have increased our focus on these topics and hav
Slide 54: Page 12: Improve return on capital in P&C and Life
COMMENTARY Page 12: Key highlights – We are executing on our strategy to improve our return on capital in P&C and Life As we highlighted at our 2021 Investor Day the Group continues to look for opportunities to improve capital allocation. We noted that parts of our traditional life business produce
Slide 55: Page 13: Cash remittance; CHF 22 dividend proposed
COMMENTARY Page 13: Key highlights – Continued strong cash remittance; CHF 22 dividend proposed During 2021, the Group continued to successfully convert earnings into distributable cash with overall Group remittances of USD 4.4 billion equivalent to more than 80% of net income attributable to shareh
Slide 56: Page 16: Group Business Operating Profit
COMMENTARY Page 16: Group – Business Operating Profit Overall Group business operating profit increased strongly in 2021, with BOP growing 35%. Growth came from a strong underlying performance. The reduced impact from the COVID-19 pandemic more than offset higher weather and natural catastrophe loss
Slide 57: Page 17: Net income attributable to shareholders
COMMENTARY Page 17: Group – Net income attributable to shareholders Net income attributable to shareholders (NIAS) increased by 36% in 2021, driven by the growth in BOP and higher net realized gains on equities and real estate, which more than offset slightly higher charges for other items. Net real
Slide 58: Page 18: Group Outlook
COMMENTARY Page 18: Group – Outlook P&C: The Group expects pricing to remain ahead of loss cost inflation in 2022, albeit with a likely moderation in the level of price increases especially in North America, which had seen double digit increases for two consecutive years. Pricing is expected to driv
Slide 59: Page 19: P&C Top-line
COMMENTARY Page 19: P&C – Top-line Property & Casualty gross written premiums marked a record high level of USD 40,123 million of for 2021, up 11% year on year on a like-for-like basis, after adjusting for currency movements and closed acquisitions and disposals. In U.S. dollar terms, gross written
Slide 60: Page 20: P&C BOP components
COMMENTARY Page 20: P&C – BOP components FY-21 P&C BOP was USD 3,121 million, 50% higher than in the previous year. The increase was driven by underlying improvement in underwriting profitability, as higher prices earned into the results, increased prior year development, top-line growth, as well as
Slide 61: Page 21: P&C Combined ratio details
COMMENTARY Page 21: P&C – Combined ratio details The FY-21 combined ratio of 94.3% was 4.1 percentage points better than in the previous year. This was driven by a 1.9 percentage points improvement in the accident year combined ratio excluding catastrophes and COVID-19, as well as more favorable pri
Slide 62: Page 22: P&C Combined ratio by segment and customer unit
COMMENTARY Page 22: P&C – Combined ratio by segment and customer unit In EMEA, the accident year combined ratio ex-catastrophes improved by 1.5 percentage points after removing the impact of COVID-19 related frequency benefits net of premium rebates and voluntary actions to support customers during
Slide 63: Page 23: P&C Investment result
COMMENTARY Page 23: P&C – Investment result Investment income was USD 52 million below prior year mainly due to lower investment yields. Realized capital gains of USD 42 million were USD 262 million below the 2020 result driven by a less favorable hedge funds performance. The book yield for debt sec
Slide 64: Page 24: Life Business operating profit
COMMENTARY Page 24: Life – Business operating profit The Group’s Life business delivered a BOP of USD 1,812 million, 27% ahead of the prior year. Excluding COVID-19 effects, Life BOP grew 26% driven by the Group’s continued focus on protection and capital light saving products. This, together with p
Slide 65: Page 25: Life Premiums, net inflows and AuM
COMMENTARY Page 25: Life – Premiums, net inflows and assets under management In the Group’s Life business, gross written premiums and deposits were up 3% in 2021 compared to the prior year on a reported basis, and relatively flat on a like-for-like basis, adjusting for currency movements, acquisitio
Slide 66: Page 26: Life New business and new business mix
COMMENTARY Page 26: Life – New business and new business mix During 2021, Life new business annual premium equivalent (APE) sales increased by 5% on a like-for-like basis. The growth in sales reflects favorable growth momentum in unit-linked business and protection products, partially offset by a st
Slide 67: Page 27: Life Investment result
COMMENTARY Page 27: Life – Investment result The Life investment result, which is gross of policyholder sharing, increased by 11% to USD 3.6 billion, driven by higher capital gains, favorable FX movements and higher rates compared to prior year. © Zurich February 10, 2022 Annual results 2021 67
Slide 68: Page 28: FMS Overview
COMMENTARY Page 28: FMS – Overview Farmers Management Services (FMS) BOP increased 12% compared to the prior year and 5% on a like-for-like basis after adjusting for the first-time inclusion of the acquired MetLife U.S. P&C business. This was mainly driven by growth in the premium base of the Farmer
Slide 69: Page 29: Farmers Life and Farmers Re Overview
COMMENTARY Page 29: Farmers Life and Farmers Re – Overview Farmers Life BOP of USD 84 million was 16% lower than in the prior year. The result was mainly driven by higher mortality including USD 121 million of claims related to COVID-19. Mortality experience remained elevated over 2021. Farmers Life
Slide 70: Page 30: Group Functions and Operations & Non-Core BOP
COMMENTARY Page 30: Group Functions and Operations & Non-Core Businesses – BOP Group Functions and Operations reported net expenses of USD 806 million compared to USD 709 million in the prior year period. This was mainly driven by an increase in charges related to Holdings and Financing due largely
Slide 71: Page 31: Group Solvency
COMMENTARY Page 31: Group – Solvency As of Q4-21, the Group’s Swiss Solvency Test (SST) ratio calculated based on the Group's Internal Model as approved by the Swiss Financial Market Supervisory Authority FINMA was estimated at 212%, well above the Group’s target for the SST to be of 160% or above.
Slide 72: Page 32: Balance sheet and capital structure
COMMENTARY Page 32: Group – Balance sheet and capital structure Shareholders’ equity declined by USD 0.4 billion compared to year end 2020, mainly driven by the payment of the Group dividend of USD 3.2 billion in the second quarter, a decrease of USD 2.1 billion in net unrealized gains and unfavorab
Slide 73: For further information
For further information CALL US VISIT OR FOLLOW US INVESTOR RELATIONS AND RATING AGENCY MANAGEMENT Jon Hocking +41 76 478 73 96 Francesco Bonsante +41 44 628 00 68 Samuel Han +41 44 625 32 57 Michèle Matlock +41 44 625 28 50 Fabian Wiederkehr +41 44 625 33 08 EVENTS Patricia Heina +41 44 625 38 44
Slide 74: Thank you
Thank you UPCOMING EVENTS • April 6, 2022 – Annual General Meeting 2022 • May 12, 2022 – Update for the three months ended March 31, 2022 • August 11, 2022 – Half year results 2022 • November 10, 2022 – Update for the nine months ended September 30, 2022 • November 16, 2022 – Investor Day © Zurich I
Zurich Insurance Group — FY2021 Earnings Presentation on 6ix