Slide 1: First Quarter 2023 Results
First Quarter 2023 Results Swiss Re investor and analyst presentation Zurich, 4 May 2023
Slide 2: Resilient Q1 2023 results, focus on achieving full-year financial targets
Resilient Q1 2023 results, focus on achieving full-year financial targets Swiss Re Group Q1 2023 FY 2023 key figures targets P&C Reinsurance Combined ratio 97.2% <95% Net income 643 (USD m) L&H -248 Reinsurance Net income (USD) 174m ~900m Q1 22 Q1 23 Corporate Premium Solutions Combined ratio 90.3%
Slide 3: P&C Reinsurance combined ratio impacted by elevated large nat cat losses
P&C Reinsurance combined ratio impacted by elevated large nat cat losses Reported combined ratio 125% 120% Underwriting performance in Q1 2023 115% • Combined ratio impacted by large nat cat losses (11.0%pts), particularly the earthquake in Turkey and Syria 110% (USD 426m, 7.4%pts2), while benefitti
Slide 4: Excellent underwriting profitability in Corporate Solutions
Excellent underwriting profitability in Corporate Solutions Reported combined ratio 125% 120% Underwriting performance in Q1 2023 115% • Combined ratio benefitted from low exposure to Q1 large 110% loss events and favourable prior-year development (3.2%pts) 105% • Risk-adjusted price quality1 improv
Slide 5: L&H Reinsurance net income reflects seasonally elevated mortality
L&H Reinsurance net income reflects seasonally elevated mortality Net income and US excess mortality 400 25% 20% Performance in Q1 2023 300 15% 200 174 10% • Reported net income of USD 174m for Q1 2023, 100 5% reflecting seasonally higher mortality in winter 0 0% • Excess mortality in the US still e
Slide 6: Recurring investment income continues to benefit from higher interest rates
Recurring investment income continues to benefit from higher interest rates Recurring 5.5 income yield1 and fixed income reinvestment yield (%) 5.0 4.7% 4.7% 4.5 fixed income reinvestment 4.0 yield in Q1 2023 3.5 3.1% 3.0 2.5 Quarterly recurring income 2.0 increased by USD ~180m 1.5 in Q1 2023 vs. Q
Slide 7: P&C Reinsurance achieved strong price increases in year-to-date renewals
P&C Reinsurance achieved strong price increases in year-to-date renewals Price change1 +18% Year-to-date renewals Higher loss assumptions +13% • 60% of treaty business renewed • +18% price increase, with rate increases most USD bn Premium volume change + 11% pronounced in nat cat 12.8 • +13% higher
Slide 8: Year-to-date renewals feature improved pricing and benefit of higher interest rates
Year-to-date renewals feature improved pricing and benefit of higher interest rates, while focus on portfolio quality was maintained Gross premium volume by line of business1 (USD bn) Gross premium volume by region1 (USD bn) Outcome Economic Outcome Up for Premium Up for Premium YTD combined ratio Y
Slide 9: Financial highlights
Financial highlights 9
Slide 10: Key figures
Key figures Corporate Total Total USD m, unless otherwise stated P&C Re L&H Re Solutions Group items Q1 2023 Q1 2022 • Premiums earned and fee income 5 753 3 840 1 250 217 11 060 10 620 • Net income/loss 369 174 168 -68 643 -248 • Return on investments 1.8% 4.2% 2.4% 6.4% 2.8% 0.7% • Combined ratio
Slide 11: P&C Reinsurance underwriting result absorbed large nat cat losses
P&C Reinsurance underwriting result absorbed large nat cat losses Net premiums earned Net operating margin1 (%) Combined ratio (%) 110.3 110.8 +6.0pts 99.3 96.6 97.22 9.3 95.6 92.0 USD 5.8bn in Q1 2023 3.3 7.3 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 20213 Q1 2022 Q1 2023 6.1 7.2 2.3 USD 5.3bn • Q1 2023 c
Slide 12: L&H Reinsurance achieved solid first quarter result in light of seasonally higher mortality
L&H Reinsurance achieved solid first quarter result in light of seasonally higher mortality Net premiums earned Net operating margin1 (%) Recurring income yield2 and ROI (%) and fee income 3.8 3.4 3.3 3.4 +12.0pts 3.1 2.8 2.8 6.4 5.0 4.1 4.2 0.5 3.4 3.4 3.2 USD 3.8bn 2.3 10.6 8.0 Q1 2017 Q1 2018 Q1
Slide 13: Corporate Solutions made an excellent start to the year
Corporate Solutions made an excellent start to the year Net premiums earned Net operating margin1 (%) Combined ratio (%) 120.6 116.3 +8.1pts 99.6 100.2 16.2 96.0 95.2 USD 1.3bn 90.3 8.1 24.8 in Q1 2023 18.0 Q1 2017 Q1 2018 Q1 2019 Q1 2020 3 Q1 2021 Q1 2022 Q1 20232 7.3 3.4 USD 1.4bn in Q1 2022 -13.3
Slide 14: Solid investment result driven by continued reinvestment into higher yields
Solid investment result driven by continued reinvestment into higher yields Return on investments (ROI) Investment portfolio positioning (USD bn) Net investment income (USD m) Recurring income yield3 (%) 108.2 3.1 104.3 2.9 2.9 0.5 2.8 2.8% 0.4 12.4 12.3 2.5 848 2.1 2.1 46.0 774 42.1 712 126 715 in
Slide 15: Appendix
Appendix 15
Slide 16: Business segment results Q1 2023 - Income statement
Business segment results Q1 2023 Income statement Corporate Total Total USD m Reinsurance P&C Re L&H Re Solutions Group items Consolidation Q1 2023 Q1 2022 Revenues Gross premiums written 13 813 9 226 4 587 1 862 519 -429 15 765 15 095 Net premiums written 12 760 8 511 4 249 1 090 433 - 14 283 13 93
Slide 17: Business segment results Q1 2023 - Balance sheet
Business segment results Q1 2023 Balance sheet Corporate End End USD m Reinsurance P&C Re L&H Re Solutions Group items Consolidation Q1 2023 FY 2022 Assets Fixed income securities 70 929 43 075 27 854 8 127 543 - 79 599 74 573 Equity securities 1 362 1 089 273 124 608 - 2 094 2 114 Other investments
Slide 18: Total equity and ROE Q1 2023
Total equity and ROE Q1 2023 Total USD m Q1 2023 Opening shareholders’ equity 12 699 Net income attributable to shareholders 643 Net change in unrealised gains/losses 1 075 Other (incl. fx) -192 Closing shareholders' equity 14 225 Non-controlling interests 129 Closing total equity 14 354 ROE calcula
Slide 19: Change in shareholders' equity mainly driven by a change in unrealised gains/losses
Change in shareholders' equity mainly driven by a change in unrealised gains/losses USD m Gov bonds 0.7 Corp bonds 0.6 Tax -0.2 -192 1 075 14 225 643 12 699 Shareholders' Net income Net change in Other 2 Shareholders' equity attributable to shareholders unrealised equity 31 December 2022 gains/losse
Slide 20: P&C underwriting performance
P&C underwriting performance P&C Reinsurance and Corporate Solutions Combined ratio Main drivers of change Net premiums earned Q1 2023 P&C Reinsurance Q1 2022 Q1 20231 USD m Property 96.6% 79.1% • Improvement reflects strong underlying profitability and favourable prior-year development, 2 106 parti
Slide 21: P&C combined ratio split
P&C combined ratio split P&C Reinsurance and Corporate Solutions P&C Reinsurance (%) Corporate Solutions (%) 99.3 97.2 95.2 100 100 5.4 90.3 8.5 11.0 1.6 0.8 0.0 2.9 0.5 10.5 5.3 5.5 17.2 80 80 13.8 23.3 23.6 13.1 14.8 60 60 40 40 59.3 57.9 58.5 59.1 20 20 0 -0.6 -0.7 0 -6.1 -3.2 -20 -20 Q1 2022 Q1
Slide 22: Return on investments (ROI)
Return on investments (ROI) Corporate Total Total USD m P&C Re L&H Re Solutions Group items Consolidation Q1 2023 Q1 2022 Investment related net investment income 365 313 80 59 -102 715 467 Fixed income 237 253 52 4 - 546 437 Equities and alternative investments – incl. RE, PE, HF 95 8 1 -9 - 95 75
Slide 23: Overall investment portfolio
Overall investment portfolio Other investments (incl. policy loans) Cash and cash equivalents Short-term investments Mortgages and other loans 6% 4% 4% 7% Equities 6% 36% Government bonds 37% Credit bonds Corporate End End USD bn1 P&C Re L&H Re Solutions Group items Consolidation Q1 2023 FY 2022 Cas
Slide 24: Fixed income securities
Fixed income securities Government Credit USD m bonds bonds End FY 2022 37 722 36 851 • Increase in fixed income securities driven by net End purchases as well as the impact of declining interest Q1 2023 39 219 40 380 rates • Credit bonds include corporate bonds (USD 36.1bn) 2% 5% and securitised pr
Slide 25: Equities and alternative investments
Equities and alternative investments Equity securities ETF, excl fixed income by sector Non-Cyclical consumer goods End End 1% 1% 1% Financials 2% 1% USD m FY 2022 Q1 2023 4% Information technology 6% Cyclical services Equity securities 1 535 1 476 33% 7% General industrials Private equity 3 301 3 4
Slide 26: Corporate calendar and contacts
Corporate calendar and contacts Corporate calendar 2023 04 August H1 2023 Results Conference call 03 November 9M 2023 Results Conference call 01 December Investors’ Day 2023 Zurich Investor Relations contacts Hotline E-mail +41 43 285 4444 Investor_Relations@swissre.com Thomas Bohun Nicole Cooke Mar
Slide 27: First Quarter 2023 Results
First Quarter 2023 Results 27
Slide 28: 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 29: Legal notice
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