Swiss Re Ag · SIX:SREN
Swiss Re — FY2009 Earnings Presentation
16 slides from Swiss Re's earnings presentation, May 6, 2010
Slide 1: Economic Value Management (EVM) 2009 results
a Economic Value Management (EVM) 2009 results Zurich, 06 May 2010
Slide 2: 2009 EVM Summary
2009 EVM Summary Excellent result a EVM measures the risk adjusted economic performance of the firm – EVM is used for steering the business and assessing performance EVM profit CHF 7.1 billion Strong performance by Asset Management, P&C and L&H Economic Net Worth increased 53% to CHF 28.5 bi
Slide 3: EVM income statement by segment
EVM income statement by segment Excellent 2009 Asset Management performance a CHF million Property & Life & Asset Legacy Group Total Casualty Health Mgt Items 2009 New business profit/loss 1 002 311 4 162 213 432 6 120 Previous years’ business profit/loss 370 401 n/a -309 498 960 Total profit/loss a
Slide 4: EVM 2009 key drivers: Life & Health
EVM 2009 key drivers Life & Health a New business profit – EVM profit of CHF 311 million, compared to CHF 595 million in 2008 – Higher EVM profit for traditional Life & Health compared to 2008, and lower volume in Admin Re® Previous years’ business profit – EVM profit of CHF 401 million, compare
Slide 5: EVM 2009 key drivers: Asset Management result
EVM 2009 key drivers Asset Management result a CHF billion 4.6 -1.6 5.8 -1.6 4.2 2.8 Mark-to- Cost of funds Tax, expenses EVM income Capital costs EVM profit market before capital after capital investment costs costs return EVM profit of CHF 4.2 billion reflects the significant outperformance agai
Slide 6: EVM 2009 key drivers: Group items
EVM 2009 key drivers Group items a New business profit – EVM profit of CHF 432 million reflects the positive performance of portfolios excluded from the liability based benchmark and positive mark-to-market movements on inflation linked bonds – This result also includes the cost of the convertible
Slide 7: 2009 Economic Net Worth
2009 Economic Net Worth a Economic Net Worth (ENW) is the difference between the market value of assets and the economic value of liabilities ENW is the EVM estimate of shareholders’ equity CHF billion, as of 31 Dec 2009 38.8 US GAAP shareholders’ 28.5 26.2 equity includes 3.0 CHF 3 billion fr
Slide 8: MCEV and EVM 2009 comparison
MCEV and EVM 2009 comparison MCEV recognises higher value than EVM a CHF billion 2.6 30 0.1 1.0 32.2 28.5 20 10 0 ENW 2009 Differences Life & Health Differences Property & Differences other MCEV 2009 (estimate) Casualty In line with MCEV guidelines, swap yield curves are used as reference rates. N
Slide 9: Appendix
a Appendix 2009 EVM results | Conference call | Zurich, 6 May 2010 15 Drivers of EVM 2009 results a EVM balance sheet Increasing risk-free rates led to a decrease of economic liabilities Mark-to-market gains on credit- 3.5% 5y risk-free rates exposed assets partially offset by 3.0% mark-to-market lo
Slide 10: EVM methodology
EVM methodology a EVM is Swiss Re’s integrated economic measurement and steering framework used for planning, pricing, reserving and managing the business, EVM – Splits performance of underwriting and investment activities – Recognises all profits on new business at inception, changes in estimates
Slide 11: EVM 2009 income statement: Life & Health
EVM 2009 income statement Life & Health a Traditional Accident & CHF million Life Health Admin Re® Total 2009 New business profit/loss 293 39 -21 311 Previous years’ business profit/loss 252 352 -203 401 Total profit/loss after capital costs 545 391 -224 712 Release of capital costs 204 8 49 261 Inc
Slide 12: Comparison of US GAAP shareholders' equity to ENW by segment
Comparison of 2009 US GAAP shareholders’ equity to ENW by segment a CHF billion Property & Life & Other Total Casualty Health 2009 US GAAP shareholders’ equity 26.2 Additional discounting 5.8 1.4 -2.9 4.3 MtM on assets & debt 2.6 2.6 Reserving basis GAAP margins 12.2 12.2 Other 1.5 -1.0 -1.6 -1.1 Re
Slide 13: Sensitivities: goals and methodology
EVM 2009 sensitivities Goals and methodology a EVM sensitivities illustrate the impact on actual EVM figures to changes in EVM key parameters. EVM sensitivities are estimated on the following basis: Changes are applied in isolation rather than showing combined effects No management action is tak
Slide 14: EVM 2009 sensitivities
EVM 2009 sensitivities Life & Health specific sensitivities a Change in Change in 2009 Economic Net Worth CHF billion new business profit as of 31 Dec 2009 Reduce lapse rates by 10% (e.g. from 8% to 7.2%) 0.1 1.3 Mortality and morbidity rates reduced by 5% Mortality 0.2 3.5 Longevity 0.0 -0.3 Morbid
Slide 15: Corporate calendar & contacts
Corporate calendar & contacts a Corporate calendar 11 June 2010 Investors’ Day London 05 August 2010 Second Quarter 2010 results Conference call 13 September 2010 Investors and Media meeting Monte Carlo 04 November 2010 Third Quarter 2010 results Conference call 17 February 2011 Annual Results 2010
Slide 16: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements a Certain statements and illustrations contained herein are forward-looking. These statements and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a histor