Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Zurich Financial Services — Corporate Update (March 2006)
20 slides from Zurich Insurance's corporate update, Mar 15, 2006
Slide 1: A new Life business model for Zurich Switzerland
A new Life business model for Zurich Switzerland Media conference March 15, 2006 Geneva
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 predictions of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our strategic dire
Slide 3: Agenda
Agenda Introduction Tilman Hengevoss Presentation of the new model Lukas Weber Implementation of the new model Joe Bättig Summary and conclusion Lukas Weber Questions and answers Moderator: Tilman Hengevoss 3 © Zurich
Slide 4: A new Life business model for Zurich Switzerland
A new Life business model for Zurich Switzerland Lukas Weber Chairman of the Board of Directors of Genevoise Chief Executive Officer of Zurich Switzerland’s Life Insurance division Member of Zurich’s Executive Committee of the Global Life business
Slide 5: Zurich's global strategy for Life Insurance
Zurich’s global strategy for Life Insurance • Focus on profitable markets and those of an interesting scale • Exit from 11 countries Focus • Focus on a selection of products • New business models in the UK, in D and CH • The Zurich Way as method for achieving operational excellence Profitability • C
Slide 6: Measures taken in Switzerland
Measures taken in Switzerland • Off-balancing of the group life business (occupational pension benefits) to the independent Focus Vita foundation • Standardization of tariffs • Switch to fee-based income Profitability • Significant cost reductions by in-shoring Zurich Germany platform • Sales excell
Slide 7: Favorable business trend over the last four years
Favorable business trend over the last four years NBM in % GWP in bn USD 20 4 3.5 15 3 10 2.5 5 2 1.5 0 2002 2003 2004 2005 1 -5 0.5 -10 0 New Business Profit Margin Gross Written Premium Focus Profitability 7 © Zurich
Slide 8: Zurich has trumps to play…
Zurich has trumps to play… Confidence that inspires the market leader A top level offer from a single source Real added value Strong Multi-channel strategy customer focus Appealing and Growth performing 8 © Zurich
Slide 9: Even better exploitation of Zurich's strong points in Life Insurance
Even better exploitation of Zurich’s strong points in Life Insurance Life optimization scheme An integrated platform Genevoise combined with Zurich “One brand” Exploit the dynamics of Zurich’s international brand campaign New Life business model Profitability 9 © Zurich
Slide 10: Implementation of the new model
Implementation of the new model Joe Baettig Chief Executive Officer of Genevoise
Slide 11: Growth in Life Insurance
Growth in Life Insurance A single th ng brand tre s of n io Aim at market leadership sit po a m Increased strength and presence fro in the life insurance market th ow Gr Be perceived as point of reference in the market Growth 11 © Zurich
Slide 12: Be more effective…
Be more effective… Make better use of our knowledge and abilities Identify our employees’ skills Exchange knowledge Optimize the IT environment Ensure professional and adapt it to the development future Profitability 12 © Zurich
Slide 13: … and continue to improve our profitability
… and continue to improve our profitability Exploit the Group’s global competence Benefit from global solutions The Swiss market Synergies from a unified Zurich Capitalize on economies of scale Profitability 13 © Zurich
Slide 14: Meet individual customer expectations (Personal Life)
Meet individual customer expectations (Personal Life) Strengthen our product Offer innovative range solutions Become the Profit from the reference in the potential of defined market market segments Focus Growth 14 © Zurich
Slide 15: Meet the expectations of corporate customers (Corporate Life)
Meet the expectations of corporate customers (Corporate Life) • Strict separation of risk financing, saving and policy administration Unbundling • Successful introduction of the independent Vita Foundation • Complementary Life product (Life insurance for managers) Complete solutions • Expert advice
Slide 16: Organization of the Life sector in Switzerland – efficient and customer oriented
Organization of the Life sector in Switzerland – efficient and customer oriented Specialized Life distribution Life/Non-Life Distribution (Network of former distribution via brokers, banks, Genevoise branches) etc. Personal Life Corporate Life Broker support Wholesale support Technical support Techn
Slide 17: Why combine the two units? A positive impact on our customers
Why combine the two units? A positive impact on our customers • Transfer to Zurich the know-how of Genevoise in the life segment • Strengthen Zurich’s position as a Life Insurer • Mobilize all resources and Life know-how to become more efficient and cut costs • Increase our share of the life insuran
Slide 18: Why combine the two units? A positive impact on the Group
Why combine the two units? A positive impact on the Group • Approximately 150 positions • Development of a Customer Service foreseen to be cut over 5 years Center in French-speaking Switzerland • A process to be mainly achieved • Replacement of IT systems and migration through natural fluctuation an
Slide 19: Next steps
Next steps Analysis Infor- • Media conference Concept mation • Inform employees Provisional deadlines Subject to approval • Management Consul- Decision • Boards of Directors tation • Genevoise • Employees Implemen- Approval process tation • Supervisory authorities Preparation for implementation Mark
Slide 20: Summary
Summary We have achieved To be achieved: the Life important goals optimization program • Increase profitability and make it sustainable • Emphasis on products and services • Zurich’s presence in French- speaking Switzerland strengthened • Return to profitability in our by the Service Center for Fren
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