Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Zurich Financial Services — FY2004 Earnings Presentation
20 slides from Zurich Insurance's earnings presentation, Feb 17, 2005
Slide 1: Annual Results Reporting 2004 Media presentation
Annual Results Reporting 2004 Media presentation Zurich, February 17, 2005
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 James J. Schiro • Annual Results 2004 Patrick O’Sullivan • The Way Forward James J. Schiro • Q&A © Zurich Financial Services - Annual Results Reporting 2004, February 17, 2005 3
Slide 4: Introduction
Introduction James J. Schiro Chief Executive Officer February 17, 2005
Slide 5: Financial highlights
Financial highlights in USD millions 2004 2003 Change Gross written premiums and policy fees 49,304 48,805 1% General Insurance GWP and policy fees 37,638 36,250 4% Life Insurance GWP and policy fees 10,979 11,625 -6% Net investment result for Group investments 8,395 7,815 7% Business operating prof
Slide 6: Annual Results 2004
Annual Results 2004 Patrick O’Sullivan Group Finance Director February 17, 2005
Slide 7: Business operating profit by segment
Business operating profit by segment in USD millions 2004 2003 Change General Insurance 1,380 2,146 -36% Life Insurance 1,063 856 24% Farmers Management Services 1,077 970 11% Other Businesses 137 -958 nm Corporate Center -514 -698 26% Total 3,143 2,316 36% © Zurich Financial Services - Annual Resul
Slide 8: General Insurance key performance indicators
General Insurance key performance indicators Business Operating Profit Combined ratio (%) in USD millions 2004 2003 Change Total 1 101.6 97.9 NA Corporate -1,165 664 nm 117.3 NA Corp. 99.0 NA Consumer 224 115 95% NA Cons. 95.9 Continental Europe 1,004 603 67% 98.7 94.0 UKISA 1,112 441 152% Cont. Eur
Slide 9: Improved reserving process
Improved reserving process • New formal review structure • Rolling reviews of all reserves • Third party actuaries support where appropriate • Strengthened actuarial reporting lines • Consistent methodologies supported by reporting process © Zurich Financial Services - Annual Results Reporting 2004,
Slide 10: General Insurance combined ratio by business division – excluding reserve adjustments
General Insurance combined ratio by business division – excluding reserve adjustments 2004 2003 Change NA Corporate 93.0%1 87.7% -5.3pts NA Consumer 97.8% 98.7% 0.9pts Continental Europe 95.3% 99.1% 3.8pts UKISA 91.5% 96.7% 5.2pts Rest of World 98.9% 94.9% -4.0pts Total excluding reserve strengtheni
Slide 11: Life Insurance key performance indicators
Life Insurance key performance indicators Business operating profit New business margin1 (%) in USD millions 2004 2003 Change 11.4 Total 9.0 NA Consumer 235 245 -4% Continental Europe 355 294 21% NA 61.0 Cons. 31.1 UKISA 402 271 48% 12.7 Cont. Rest of World 71 46 54% Europe 7.9 Total 1,063 856 24% 5
Slide 12: Life Insurance performance highlights
Life Insurance performance highlights • 15% growth in new business APE1 (adjusted for f/x and divestments) • Continental Europe − Record sales growth in Germany − Strong performance in Italy • UKISA − IFA channel 20% APE growth − Openwork launched − Agency numbers reduced to 2,200 − Market leading t
Slide 13: Farmers Management Services with record year
Farmers Management Services with record year in USD millions 2004 2003 Change Management fees & other related revenue 1,985 1,885 5% Management & other expenses 955 900 6% Investment income 86 77 12% Net income 686 604 14% Business operating profit 1,077 970 11% Gross operating margin 51.9% 52.3% -0
Slide 14: Shareholders' equity
Shareholders’ equity in USD millions 23'000 386 -241 -226 22'000 741 21'000 2,587 20'000 22,181 19'000 - 450 19,384 18,934 18'000 Balance as of SOP 03-01 Restated Net income Translation Change in Nominal Impact of Balance as of Dec 31, 2003 implement. Balance as of adjustments net unreal. value init
Slide 15: The Way Forward
The Way Forward James J. Schiro Chief Executive Officer February 17, 2005
Slide 16: Having delivered the turnaround, we are now building the future
Having delivered the turnaround, we are now building the future Build the future Lay the foundation • Establish a clear direction Create stable • Align organizational model platform • Delivered for customers with strategic priorities and shareholders • Focus on core • Zurich Way: • Business model op
Slide 17: The Zurich Way – one best way to achieve operational excellence
The Zurich Way – one “best” way to achieve operational excellence in all core processes Seven initial work streams The Zurich Way framework 1. General Insurance claims 2. Large corporate and commercial Common underwriting l language & ca ni methodologies ch 3. Personal lines underwriting Te Consiste
Slide 18: Financial benefits of improvement initiatives of the entire Group
Financial benefits of improvement initiatives of the entire Zurich Financial Services Group 100% = 100% = 100% = USD 1 billion USD 540 million USD 500 million 8% 4% 15% 19% Life, AM & other 12% 5% Growth/Distribution 13% 20% 23% Claims 31% 26% Underwriting Process 60% 7% Pricing 37% 20% Operating Ex
Slide 19: We have a well diversified General Insurance book
We have a well diversified General Insurance book1 North United Cont. Inter- America Kingdom Europe national Total Corporate Global Corporate 19% Lines 8% 3% 8% Commercial NA Comm.2 4% 51% Lines 33% 8% 6% Europe Int. General Insurance Businesses Personal US Personal3 5% 14% 3% 30% Lines 8% 49% 16% 2
Slide 20: ZURICH
@ ZURICH
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