Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Investor Day (December 2013)
17 slides from Zurich Insurance's investor day presentation, Dec 5, 2013
Slide 1: Strategy
Strategy Martin Senn, CEO Vibhu Sharma, interim CFO Zurich Insurance Group December 5, 2013
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 of Zurich Insurance Group Ltd or the Zurich Insurance Group (the “Group”).
Slide 3: Building on our strengths as we move into a new phase
INTRODUCTION Building on our strengths as we move into a new phase Zurich share performance (in USD) Disciplined investment and focused underwriting have helped us outperform the sector since the credit crisis began 2013 Target Status Combined ratio We set ambitious targets for 2010 - 2013, Growth
Slide 4: What we will continue, change and improve
THE STORY OF THE DAY What we will continue, change and improve What will we Underwriting focus and investment discipline will continue to do remain unchanged Prioritizing investment in distinctive positions and What’s new managing other businesses for value What will we do Improving operating profit
Slide 5: Building on our strengths into a new phase
OUR STARTING POINT Building on our strengths into a new phase Strong balance sheet and solid profitability We generate a solid operating underpin cash returns ROE, with room to improve © Zurich Insurance Company Ltd NIAS: Net Income Attributable to Shareholders 1BOPAT ROE expressed excluding Investm
Slide 6: A more supportive external backdrop…
EXTERNAL DRIVERS A more supportive external backdrop… The global economic Globalization drives the Technology creates new environment is improving growth of cross border industry opportunities insurance © Zurich Insurance Company Ltd Sources: Datastream, IMF ‘World Economic Outlook’ (October 2013) I
Slide 7: Customer needs are changing…
EXTERNAL DRIVERS Customer needs are changing… World ranking by Employee General revenue1, 2012 Benefits Insurance Corporate customers and intermediaries 1 2 Broker 1 are beginning to request combined life and Broker 2 2 1 general insurance solutions in some market Broker 3 3 3 segments Broker 4 4 4
Slide 8: …creating opportunities we will capitalize on
EXTERNAL DRIVERS …creating opportunities we will capitalize on Our advantage, as a global and composite insurer Corporate Uniquely positioned as a Globalization and interconnectedness of risk corporate insurer with global drive need of global capabilities reach and composite proposition Composite of
Slide 9: We are strong in Corporate and Commercial…work to do in Retail
EXTERNAL DRIVERS We are strong in Corporate and Commercial…work to do in Retail Breakdown of Zurich‘s GWP (2011) by market share per country Zurich’s market share (2011)1 GI-Corporate and 11 countries, 7% Commercial among which3 2% Above 5% Below 3% mid-market2 17% Australia From 3 to 5% Not categor
Slide 10: Cornerstones of our strategy
STRATEGY Cornerstones of our strategy Group Strategy Key focus areas Corporate Prioritizing investment 1 Commercial Mid-Market in distinctive positions Select retail Extract value from Global Life back books Managing other Continue to capture value from profitable, smaller 2 businesses for value Gen
Slide 11: Prioritizing investment in distinctive positions
STRATEGY – PRIORITIZING INVESTMENTS Prioritizing investment in distinctive positions Target customer segments Corporate Commercial mid-market Retail (select markets) Risk participation Social status Bespoke Global Industry attractiveness Values Increase cross sell and Promote predictive Increase pro
Slide 12: Managing other businesses for value
STRATEGY - MANAGING FOR VALUE Managing other businesses for value Group Portfolio Review 67% of our capital is allocated to focus BOPAT ROE: 5% markets and manage for value “as-is” 33% of Z-ECM markets 33% of our capital is allocated to our other manage for value businesses BOPAT ROE: 13% 62% of Z-E
Slide 13: Growing our operating earnings
STRATEGY - GROWING OPERATING EARNINGS Growing our operating earnings Efficiency Reducing complexity and overhead burdens Value Continuing operational transformation to extract more value extraction from our business Investment Enhancing excess investment returns in a risk-neutral way through Risk Re
Slide 14: Delivering an attractive total return to our investors
STRATEGY – NEW TARGETS Delivering an attractive total return to our investors Zurich’s targets for 2014 - 2016 Improving return on BOPAT ROE target 12 - 14%1 equity Maintaining a very Z-ECM ratio 100 - 120% strong capital position Generating high levels Net cash remittances to Group2 > USD 9bn of fr
Slide 15: A look at the core business segments
THE STORY OF THE DAY A look at the core business segments Theme Key topics Building on strengths to compete in a rapidly changing market Go-to-market strategy is focused on targeting value-conscious customers Farmers Reducing reinsurance support to Farmers Exchanges Growth opportunity remains in the
Slide 16: What we will continue, change and improve
THE STORY OF THE DAY What we will continue, change and improve What will we Underwriting focus and investment discipline will continue to do remain unchanged Prioritizing investment in distinctive positions and What’s new managing other businesses for value What will we do Improving operating profit
Slide 17: 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”).
Zurich Insurance Group — Investor Day (December 2013) on 6ix