Swiss Re Ag · SIX:SREN

Swiss Re — 9M 2023 Earnings Presentation

30 slides from Swiss Re's earnings presentation, Nov 3, 2023

  1. Slide 1: 9M 2023 Results

    9M 2023 Results Swiss Re investor and analyst presentation Zurich, 3 November 2023

  2. Slide 2: Strong third quarter result supported by all businesses

    Strong third quarter result supported by all businesses Swiss Re Group Q3 2023 9M 2023 FY 2023 key figures key figures targets P&C Net income 2 466 Reinsurance Combined ratio 93.7% 94.3% <95% (USD m) 1 019 L&H -442 -285 Reinsurance Net income (USD) 241m 634m ~900m Q3 22 Q3 23 9M 22 9M 23 Corporate P

  3. Slide 3: P&C Reinsurance delivers improved underwriting performance

    P&C Reinsurance delivers improved underwriting performance Reported combined ratio 115% Underwriting performance in 9M 2023 110% • 9M 2023 combined ratio of 94.3% reflects improved 105% underwriting performance, supported by successful renewals and slightly lower-than-expected large nat cat losses d

  4. Slide 4: Corporate Solutions sustains strong underwriting profitability

    Corporate Solutions sustains strong underwriting profitability Reported combined ratio 130% 125% Underwriting performance in 9M 2023 120% 115% • 9M 2023 combined ratio of 91.3%, benefitted from low exposure to nat cat events and strong underwriting 110% margins 105% • Risk-adjusted price quality1 im

  5. Slide 5: L&H Reinsurance profitability returned to pre-pandemic levels

    L&H Reinsurance profitability returned to pre-pandemic levels Net income and US excess mortality 700 20% 634 600 Performance in 9M 2023 15% 500 400 10% • 9M 2023 net income supported by improved profitability 300 in Q3 2023 (USD 241m). Elevated US mortality in winter months and higher-than-expected

  6. Slide 6: Increased reinvestment yield in third quarter as rates continued to rise

    Increased reinvestment yield in third quarter as rates continued to rise Recurring 5.5 income yield1 and fixed income reinvestment yield (%) 4.9% 5.0 4.9% 4.5 fixed income reinvestment 4.0 3.7% yield in Q3 2023 3.5 3.0 2.5 Recurring income increased by 2.0 USD ~600m 1.5 in 9M 2023 vs. 9M 2022 1.0 0.

  7. Slide 7: Financial highlights

    Financial highlights 7

  8. Slide 8: Key figures

    Key figures Corporate Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items 9M 2023 9M 2022 • Premiums earned and fee income 17 352 11 672 4 007 687 33 718 32 366 • Net income/loss 1 504 634 492 -164 2 466 -285 • Return on investments 2.5% 4.7% 2.7% 7.9% 3.5% 1.6% • Combined

  9. Slide 9: P&C Reinsurance underwriting result reflects improved pricing and portfolio structure

    P&C Reinsurance underwriting result reflects improved pricing and portfolio structure Net premiums earned Net operating margin1 (%) Combined ratio (%) +13.2%pts 114.1 110.3 106.1 12.7 101.4 99.5 97.5 USD 17.4bn 94.3 10.3 9M 2017 9M 2018 9M 2019 9M 2020 9M 20213 9M 2022 9M 2023 in 9M 2023 7.9 5.2 USD

  10. Slide 10: L&H Reinsurance net income returned to pre-pandemic levels

    L&H Reinsurance net income returned to pre-pandemic levels Net premiums earned Net operating margin1 (%) Recurring income yield2 and ROI (%) and fee income 4.0 +4.0%pts 3.3 3.4 3.4 3.0 2.9 3.1 7.5 0.7 4.7 4.1 3.7 4.1 3.7 3.5 3.4 3.0 USD 11.7bn in 9M 2023 9.5 11.8 9M 2017 9M 2018 9M 2019 9M 2020 Recu

  11. Slide 11: Corporate Solutions maintains strong performance

    Corporate Solutions maintains strong performance Net premiums earned Net operating margin1 (%) Combined ratio (%) 142.6 +4.0pts 127.0 116.0 15.1 105.4 11.1 93.1 USD 4.0bn 91.1 91.3 23.2 20.2 9M 2017 9M 2018 9M 2019 9M 20203 9M 2021 9M 20222 9M 2023 in 9M 2023 4.5 7.0 USD 4.1bn • 9M 2023 combined rat

  12. Slide 12: Strong investment result mainly driven by higher recurring income

    Strong investment result mainly driven by higher recurring income Return on investments (ROI) Investment portfolio positioning (USD bn) Net investment income (USD m) Recurring income yield3 (%) 3.5 104.3 101.4 2.9 2.9 2.9 3.5% 0.4 0.5 12.3 10.6 2.4 2.4 2 724 2.2 2 523 2 404 2 353 564 42.1 357 25 in

  13. Slide 13: Appendix

    Appendix 13

  14. Slide 14: Business segment results 9M 2023

    Business segment results 9M 2023 Income statement Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation 9M 2023 9M 2022 Revenues Gross premiums written 20 393 12 730 5 716 1 084 -770 39 153 37 576 Net premiums written 19 072 11 636 3 888 883 - 35 479 34 590 Change in unearned

  15. Slide 15: Business segment results Q3 2023

    Business segment results Q3 2023 Income statement Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation Q3 2023 Q3 2022 Revenues Gross premiums written 5 077 4 028 2 144 302 -172 11 379 10 973 Net premiums written 4 753 3 656 1 516 218 - 10 143 10 008 Change in unearned premi

  16. Slide 16: Business segment results 9M 2023

    Business segment results 9M 2023 Balance sheet Corporate End End 30 September 2023, USD m P&C Re L&H Re Solutions Group items Consolidation 9M 2023 FY 2022 Assets Fixed income securities 39 097 24 808 7 593 577 - 72 075 74 573 Equity securities 51 52 12 34 - 149 2 114 Other investments 20 034 4 781

  17. Slide 17: Total equity and ROE 9M 2023

    Total equity and ROE 9M 2023 Total USD m 9M 2023 Shareholders' equity at 31 December 2022 12 699 Net income attributable to shareholders 2 466 Dividends -1 850 Net change in unrealised gains/losses -506 Other (incl. fx) -111 Shareholders' equity at 30 September 2023 12 698 Non-controlling interests

  18. Slide 18: Change in shareholders' equity mainly driven by net income and dividends

    Change in shareholders' equity mainly driven by net income and dividends USD m Gov bonds -0.6 Corp bonds -0.4 Other 0.3 - 1 850 Tax 0.2 2 466 - 506 - 111 12 699 12 698 Shareholders' Net income Dividends Net change in Other 2 Shareholders' equity attributable to shareholders unrealised equity 31 Dece

  19. Slide 19: P&C underwriting performance

    P&C underwriting performance P&C Reinsurance and Corporate Solutions Combined ratio Main drivers of change year-to-date Net premiums earned (USD m) P&C Reinsurance Q3 2022 Q3 20231 9M 2022 9M 20231 Q3 2023 9M 2023 Property 127.0% 64.0% 110.4% 70.5% • Improvement reflects strong underlying profitabil

  20. Slide 20: P&C Reinsurance: combined ratio split

    P&C Reinsurance: combined ratio split Quarterly performance (%) Year-to-date performance (%) Main drivers of change year-to-date 119.5 120 120 115 115 • Current accident year (CAY) loss ratio excluding large 110 110 losses benefitted from improved margins at year-to-date 106.1 renewals 105 28.0 105

  21. Slide 21: Corporate Solutions: combined ratio split

    Corporate Solutions: combined ratio split Quarterly performance (%) Year-to-date performance (%) Main drivers of change year-to-date 100 92.9 100 93.1 95 91.7 95 91.3 7.6 4.5 • Current accident year (CAY) loss ratio excluding large 2.1 90 4.4 90 losses confirms improved resilience of the business an

  22. Slide 22: Return on investments (ROI) 9M 2023

    Return on investments (ROI) 9M 2023 Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation 9M 2023 9M 2022 Investment related net investment income 1 269 1 027 279 187 -358 2 404 1 655 Fixed income 799 762 173 13 - 1 747 1 355 Equities and alternative investments – incl. RE, P

  23. Slide 23: Return on investments (ROI) Q3 2023

    Return on investments (ROI) Q3 2023 Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation Q3 2023 Q3 2022 Investment related net investment income 490 372 106 56 -147 877 638 Fixed income 290 254 65 5 - 614 473 Equities and alternative investments – incl. RE, PE, HF 130 8 - -

  24. Slide 24: Overall investment portfolio

    Overall investment portfolio Other investments (incl. policy loans) Cash and cash equivalents Short-term investments 10% 5% 7% Mortgages and other loans 5% Equities 5% 30% Government bonds 38% Credit bonds Corporate End End USD bn1 P&C Re L&H Re Solutions Group items Consolidation 9M 2023 FY 2022 Ca

  25. Slide 25: Fixed income securities

    Fixed income securities Government Credit USD m bonds bonds End FY 2022 37 722 36 851 • Decrease in government bonds driven by net sales End 9M 2023 31 605 40 470 • Increase in credit investments reflects net purchases • Credit bonds include corporate bonds (USD 35.9bn) and securitised products (USD

  26. Slide 26: Equities and alternative investments

    Equities and alternative investments End End USD m FY 2022 9M 2023 Equity securities 1 535 111 Real estate by geography Private equity 3 301 3 656 7% 5% Switzerland Hedge funds 9 6 US 22% Real estate1 5 752 5 368 48% Germany United Kingdom Principal Investments 1 660 1 449 Other Direct Equity securi

  27. Slide 27: Corporate calendar and contacts

    Corporate calendar and contacts Corporate calendar 2023 01 December Investors’ Day 2023 Zurich 2024 16 February Annual Results 2023 Conference call 13 March Publication of Annual Report 2023 12 April 160th Annual General Meeting Zurich 16 May Q1 2024 Results Conference call Investor Relations contac

  28. Slide 28: 9M 2023 Results

    (in) Swiss Re 9M 2023 Results 28

  29. Slide 29: 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

  30. Slide 30: Legal notice

    Legal notice ©2023 Swiss Re. All rights reserved. You may use this presentation for private or internal purposes but note that any copyright or other proprietary notices must not be removed. You are not permitted to create any modifications or derivative works of this presentation, or to use it for

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