Swiss Re Ag · SIX:SREN
Swiss Re — Investor Day (November 2020)
96 slides from Swiss Re's investor day presentation, Nov 20, 2020
Slide 1: Investors' Day
Investors’ Day Zurich, 20 November 2020
Slide 2: Agenda – Investors' Day 2020
Agenda – Investors’ Day 2020 Time Content Management 10:30 – 11:05 Group CEO update Christian Mumenthaler 11:05 – 11:30 Financial strength and capital management John Dacey 11.30 – 11.50 Asset Management Guido Fürer 11:50 – 12:30 Q&A session 12:30 – 13:30 Break 13:30 – 13:55 Group Underwriting Thier
Slide 3: Group CEO update
Group CEO update Christian Mumenthaler, Group Chief Executive Officer
Slide 4: Key messages for today
Key messages for today • Very strong balance sheet and proactive approach to COVID-19 reserving allow for targeted growth • We see positive rate momentum in P&C Re and expect a normalised combined ratio of ≤96% in 2021 • We continue to focus on profitable growth across regions in L&H Re and to manag
Slide 5: COVID-19 crisis significantly impacts the risk landscape
COVID-19 crisis significantly impacts the risk landscape Key impact on re/insurance industry Swiss Re response Less capital available near-term and Maintain strong balance sheet and proactively significant uncertainty on ultimate losses establish appropriate COVID-19 reserves Global insurance protec
Slide 6: COVID-19 pandemic is still ongoing with more targeted restrictions
COVID-19 pandemic is still ongoing with more targeted restrictions and expected claims impact in Q4 Business closings in Europe1 Number of countries 30 25 20 • Data on business closings indicates that majority of business 15 interruption losses were incurred in Q2 10 5 0 Q1 Q2 Q3 • Increasing restri
Slide 7: Reported US GAAP COVID-19 claims and reserves developed in line with assumptions
Our reported US GAAP COVID-19 claims and reserves have developed broadly in line with our original assumptions Swiss Re’s reported COVID-19 losses in 9M 2020 USD m, pre-tax 427 2 969 2 969 IBNR Paid & case reserves 667 14% Q3 175 67% 1 019 70% Q2 681 33% 16% Q1 Event cancellation Business interrupti
Slide 8: Impact of additional waves expected to be manageable
We expect the impact of additional waves in the coming quarters to be manageable Pre-tax US GAAP losses booked in 9M 2020 (USD) • Majority of Q4 events already reflected in 9M US GAAP numbers Event cancellation 0.7bn • Corporate Solutions with limited exposure in 2021 as book is in run-off • Ultimat
Slide 9: We aim to operate as 'One Swiss Re'
We aim to operate as ‘One Swiss Re’ Risk Knowledge Leadership Client Collaboration & Access Capital Strength Reinsurance A leading global reinsurer Our People A specialised risk partner with direct Risk Knowledge Leadership Client Collaboration & Access Capital Strength Corporate Solutions access to
Slide 10: Reinsurance – a powerful franchise with unique competitive advantages
Reinsurance – a powerful franchise with unique competitive advantages Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People Core strengths of Reinsurance • P&C Re is growing in a hardening market and addressing Global scale Client access underperforming portfolios • L&H
Slide 11: P&C Reinsurance – strong earnings power, supported by a hardening market
P&C Reinsurance – strong earnings power, supported by a hardening market Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People We expect a normalised combined ratio1 of ≤96% in 2021 25% • At today’s investment returns, P&C Re 20% operates at ~16% normalised ROE Normalis
Slide 12: L&H Reinsurance – profitable growth and in-force margins
L&H Reinsurance – we continue to focus on profitable growth across all regions and to manage in-force margins Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People L&H Re has delivered strong results 18% 16% • Earnings expected to return to target range in 14% 2021, med
Slide 13: Corporate Solutions – specialised risk partner
Corporate Solutions – specialised risk partner that enables Group-wide strategic engagement with corporate customers Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People Strategic repositioning of Corporate Solutions Expertise focused In the future Key elements of repo
Slide 14: Corporate Solutions – improved underlying profitability
Corporate Solutions – management actions and strong price momentum have significantly improved underlying profitability Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People Well on track to achieve 2021 combined ratio target1 112% • 85% of portfolio pruning to be reali
Slide 15: iptiQ – global B2B2C digital insurance platform
iptiQ – a global B2B2C digital insurance platform aimed at both digital and traditional affinity distribution partners Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People B2B2C model Global expansion accelerating • iptiQ will become a standalone division, reporting di
Slide 16: iptiQ – market-implied valuation of USD ~2bn
iptiQ – based on growth trajectory and peer valuations we estimate a market-implied valuation of USD ~2bn Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People Strong growth trajectory since inception Attractive peer valuations 20x >300 Gross CAGR +75% premiums 211 writ
Slide 17: Our strategy offers more than traditional risk transfer
Our strategy offers more than traditional risk transfer sigma research SONAR New emerging risks insights SwiftRe® Surety Client Portal Magnum Ex Tool CatNet® MPL for explosions PUMA FacEasy Engineering underwriting PULSE Online risk management Public sector Traditional risk Large and complex risk tr
Slide 18: Progressing towards net-zero emissions
Swiss Re is progressing towards net-zero emissions across our business Business areas Commitments Recent initiatives Exclude support to most carbon intensive oil and Underwriting UN Business Ambition for 1.5°C pledge gas companies1 Asset Management Net-zero Asset Owner Alliance (AOA) Co-led developm
Slide 19: Sustainability leadership with pioneering initiatives
We drive sustainability leadership across the industry with pioneering initiatives Recent initiatives External recognition First multinational company to announce triple-digit real carbon levy1 • Internal carbon levy to increase to USD 100/tonne as of 2021, and to gradually increase to USD 200/tonne
Slide 20: Financial strength and capital management
Financial strength and capital management John Dacey, Group Chief Financial Officer
Slide 21: Economic earnings have comfortably covered ordinary dividends
Economic earnings have comfortably covered ordinary dividends in the last 5 years, even in a difficult environment Group capital generation since beginning of 2015 1• Generated USD ~12bn of economic 1 2 3 4 5 earnings since 2015, despite above- average nat cat losses and COVID-19 46.0 37.6 2• Econom
Slide 22: Strong capital generation and capital repatriation track record
Strong capital generation and liquid funds at Group level have provided the basis for attractive capital repatriation track record Excellent track record of external capital repatriation Liquid funds at Group level USD bn, in year paid USD bn 2.9 2.7 2.6 2.6 2.0 4.1 1.1 1.1 1.3 0.9 Share buyback and
Slide 23: The Group's capital efficiency has improved
The Group’s capital efficiency has improved Group SST ratio1 development USD bn unless otherwise stated illustrative 271% 269% 261% 262% 251% • SST available capital decrease 232% 223% Group SST target mainly driven by the impact of capitalisation2 220% COVID-19 losses Management • SST economic targ
Slide 24: Group SST capital generation impacted by COVID-19 and low rates
Group SST capital generation impacted by COVID-19 and low interest rates Group capital generation in H1 2020 41.9 -0.5 -3.1 37.6 -1.3 +1.0 -0.1 -0.5 +0.3 SST available capital (USD bn)1 SST 1/2020 ReAssure sale Economic FX and interest Capital Other (incl. Change in Capital SST 7/2020 earnings rate
Slide 25: Dynamic capital structure provides financial flexibility
Swiss Re’s dynamic capital structure provides significant financial flexibility Group available capital and leverage Strong access to diversified funding sources USD bn 48.7 47.8 • Despite COVID-19 market turbulence, Swiss Re raised EUR 800m 4.6 1.9 Additional USD 2.7bn of subordinated debt to suppo
Slide 26: Alternative Capital Partners is our centre of expertise
Alternative Capital Partners (ACP) is our unified centre of expertise in the alternative capital space Increased presence in the alternative capital market Principal investor in ILS1 ILS structurer and bookrunner2 AC market leadership 1.5 9 +10% 8 Knowledge and reputation are the 7 foundations for f
Slide 27: ACP has sourced more than USD 2bn of alternative capital
ACP has sourced more than USD 2bn of additional alternative capital in a challenging market environment since 2018 Nat cat growth supported by our increasing sidecar platform and cat bond issuances Outstanding nat cat bonds1 Exposure management 2.0 1.5 Expand risk-sharing Shortfall relief North USD
Slide 28: ACP acts as an extension of our capital structure
ACP acts as a significant extension of our capital structure Supporting efficient capital structure Total capital relief at target level1 Capital efficiency 2.5 +75% Find alternative sources of capital below our 2.0 WACC and improve our overall portfolio diversification 1.5 USD bn • Assessing capita
Slide 29: Decrease in market and credit risk after ReAssure sale
Substantial decrease in market and credit risk following the sale of ReAssure provides financial flexibility Group SST economic target capital1 USD bn • Increase in P&C risk mainly driven by nat cat growth and reserves for COVID-19 losses Property & Casualty 12.4 +0.7 • L&H risk increase mainly refl
Slide 30: Changes in reporting structure following Life Capital disbandment
Changes in reporting structure following Life Capital disbandment Current (as of Q3 2020) Planned future (2021) Corporate Corporate P&C Re L&H Re Life Capital Group items P&C Re L&H Re Group items Solutions Solutions Phoenix shares Phoenix shares1 Admin Re US Admin Re US Estimated key metrics2 USDm
Slide 31: Group targets and capital management priorities unchanged
Our Group targets and capital management priorities remain unchanged Group financial targets Capital management priorities Over-the-cycle targets Priority I Priority II Ensure superior capitalisation Grow the regular dividend Rf + 700 at all times and maximise with long-term earnings, and bps financ
Slide 32: Asset Management
Asset Management Guido Fürer, Group Chief Investment Officer
Slide 33: Asset Management success on key metrics for 9M 2020
Asset Management demonstrated success on key metrics for 9M 2020 3.4% ROI remains solid, with investment portfolio providing consistent returns ROI USD 27m Negligible net exposure to sensitive sectors such as airlines, gaming or leisure impairments <50% Proactive portfolio management including targe
Slide 34: High-quality investment portfolio performed consistently
Swiss Re’s high-quality investment portfolio has performed consistently amid market volatility and the low interest rate environment Key performance indicators over 5 years Fixed income maturities and unrealised gains Return on investment (ROI)1 Duration split of fixed income maturities 3.6% 3.0% 44
Slide 35: Portfolio positioned for opportunistic deployment
Investment portfolio positioned for opportunistic deployment within a fast- developing risk environment Investment portfolio positioning Fixed income portfolio rating split USD bn End 9M 2020 117.6 120 109.9 0.4 12.1 3% 0.5 2% 15% 11.5 100 37.4 22% 80 35.6 Other AAA Equities and alternatives (incl.
Slide 36: Pioneering ESG approach delivers better risk-adjusted returns
Pioneering ESG approach delivers better risk-adjusted returns while providing downside protection ESG investments outperform during key periods of high volatility Swiss Re’s YTD ESG outperformance Cumulative excess return of ESG-based indices vs traditional indices 7.0% 0.7% Equity1 (LHS) 5.0% 0.5%
Slide 37: We target outperformance through key initiatives
We target outperformance through a set of key initiatives Further build-up in • Selective growth in private debt and private equity, focusing on price and quality private markets • Expansion of infrastructure mandate and opportunities such as mid-market loans Geographic • Balanced portfolio shift to
Slide 38: Smart analytics tools generate portfolio insights
Our smart analytics tools help us generate actionable portfolio insights In February 2020, smart analytics methods applied to big data enabled us to capture the real-time impact of COVID-19 on financial markets Impacted region APAC w/o North • We leverage Swiss Re’s Industry China China Europe Ameri
Slide 39: Strong value drivers in uncertain markets
Strong value drivers will help us thrive in uncertain markets Investment outlook Economic recovery underway, while high ✓ Portfolio quality and positioning: uncertainty persists we continue to deliver stable returns amid a low-yield and highly volatile market environment Monetary and fiscal policies
Slide 40: Group Underwriting
Group Underwriting Thierry Léger, Group Chief Underwriting Officer
Slide 41: Underwriting excellence is key to success
In the current market environment, underwriting excellence is key to success Reinsurance industry development and interest rate evolution1 Current environment • Ongoing COVID-19 pandemic 500 8% • Increase in secondary perils related to climate change 7% 400 • Growth of capital expected to continue 6
Slide 42: Economic costing approach supports shareholder value
Our economic costing approach supports shareholder value generation in a low yield environment Economic view: composition of economic earnings stays unchanged US GAAP earnings: shift from investment to underwriting income Illustrative example for P&C Re based on a 150bps decline in interest rates 1
Slide 43: COVID-19 is driving changes in the underwriting landscape
COVID-19 is a major loss event which is driving changes in the underwriting landscape USD 27bn1 of reported COVID-19 losses so far, with more to come… … triggering various reactions Largest recorded catastrophe losses for the P&C insurance industry2 (USD bn) 100 P&C risks 90 80 • Unambiguous coverag
Slide 44: Insurers focused on restoring resilience and financial stability
Insurers are focused on restoring overall resilience and financial stability Amid globally reduced macro resilience… … we continue to support our clients throughout COVID-19 Swiss Re Institute Global Resilience Indices (%)1 94 93 … reduce earnings e.g. nat cat covers, quota shares volatility 63 62 4
Slide 45: Actions to improve the quality of our P&C underwriting
We have taken a number of actions to improve the quality of our P&C underwriting 1 Portfolio mix: increasingly attractive risk-return profile of total portfolio 2 Nat cat: continuously updating risk models to reflect recent events Key actions Text taken 3 US casualty de-risking: reduction of exposur
Slide 46: Shifted underwriting portfolio mix in line with Target Liability Portfolio
1 We have actively shifted our underwriting portfolio mix over the last 18 months in line with our Target Liability Portfolio We steer our business based on a defined TLP… … driving recent changes in our relative portfolio mix GPW Illustrative Enhanced profitability Positive Price quality improvemen
Slide 47: Learnings from recent nat cat events
2 We have incorporated learnings from recent nat cat events to reinforce our strong track record in this line of business Swiss Re’s leading market position in Nat Cat is based on underwriting expertise and balance sheet advantages Absolute and relative loss burden of major Nat Cat events, 2017-2019
Slide 48: Meaningfully de-risked our US casualty portfolio
3 We have meaningfully de-risked our US casualty portfolio and continue to focus on managing our exposures Corporate Solutions de-risking progressing according to plan P&C Re has reduced exposure to LCRs in liability lines by ~25% Corporate Solutions US general liability portfolio – gross premiums w
Slide 49: New US casualty business underwriting adjusted
4 Underwriting of new US casualty business has been adjusted to help achieve significant profitability improvements P&C Re put through significant price increases in the recent renewals +11% nominal rate increase Americas casualty reinsurance1 +20% • Technical combined ratio has improved across regi
Slide 50: L&H underwriting reflects COVID-19 and longer-term trends
L&H underwriting reflects both near-term COVID-19 considerations and longer-term trends L&H UW Near-term focus on COVID-19 focus Long-term focus on R&D areas • Temporary changes to underwriting • Robust duration and margin management guidelines during pandemic • Monitoring and R&D work on disability
Slide 51: Underwriting of the future
Swiss Re is focused on underwriting of the future to ensure we can compete in an evolving insurance landscape Underwriting process • State of the art data-driven workflow tools • Real-time underwriting decisions with strengthened costing assumptions • Data-driven TLP model, incorporating advanced sc
Slide 52: Positive profitability outlook across P&C and L&H portfolios
Our current profitability outlook is positive across our P&C and L&H underwriting portfolios Underwriting portfolios at low point of soft market (for 2017) Current underwriting portfolio outlook (for 2021) Illustrative Economic premiums Illustrative Economic premiums Profitability1 Profitability1 Pr
Slide 53: Reinsurance
Reinsurance Moses Ojeisekhoba, Chief Executive Officer Reinsurance
Slide 54: Increasing the earnings power of Reinsurance
We are focused on increasing the earnings power of Reinsurance Key assets to capture profitable growth • Global scale and presence • Strong franchise, evidenced by client and broker rankings • Significant diversification benefit within Reinsurance • Technology, innovation and R&D Key messages Focus
Slide 55: Differentiation drives our Reinsurance business
Differentiation drives our Reinsurance business and enables growth in Core, Transactions and Solutions Core Transactions Solutions Traditional reinsurance offerings Tailored and structured reinsurance Additional value-adding services How we win Brand and Scale and Ability to Balance sheet Joint risk
Slide 56: Diversification across segments, lines and regions
Our business benefits from diversification across client segments, lines of business and regions We continue to grow our book… … and aim to maintain our diversified earnings profile Economic premiums (USD bn) P&C Re L&H Re By client segment3 50.8 >50.0 36.5 38.9 46% 47% 64% 61% 58% 59% Regional & Na
Slide 57: Strong client franchise
We have a strong client franchise but are not resting on our laurels Close relationships built over time are one of our key assets, leading to… … top rankings with our clients NMG study Business Capability Index1, 2020 2 315 active reinsurance clients P&C Re ‘Right service for right client’ using cl
Slide 58: Increased operating efficiency via global platform
We have increased our operating efficiency by fully leveraging our global platform What P&C Re situations trigger cost ratio1 has recaptures? reduced, now in line with peers2 L&H Re has moved to a more competitive cost ratio1,2 35 30 33.4 Peer 1 25.8 Total cost ratio % Total cost ratio % 31.1 Peer 2
Slide 59: Solutions designed to accelerate clients' business ambitions
Our Solutions are designed to accelerate our clients’ business ambitions Solutions enable our clients to achieve their business goals across the value chain Economic profit1 USD m 336 >330 Product Underwriting & Sales & Claims & in-force development pricing distribution management 285 Customer engag
Slide 60: Rebalancing portfolio in line with Target Liability Portfolio
We are rebalancing our portfolio in line with our Target Liability Portfolio and our core strengths We actively steer our portfolio… … based on pricing outlook and market trends Enhanced profitability Pricing1 X Exposure2 = Premium 1 Property cat 2 Property non-cat 3 Liability 8 4 Motor 7 5 Marine a
Slide 61: P&C Re: focus areas to expand portfolio and increase margins
P&C Reinsurance L&H Reinsurance P&C Re: focus areas to selectively expand the portfolio and increase margins 1 Nat cat: continue to develop our book at attractive rates 2 Specialty: capture profitable opportunities P&C Re Text 3 Regional & Nationals: expand our client base 4 Actual vs expected earni
Slide 62: We will continue to grow our nat cat book
P&C Reinsurance L&H Reinsurance 1 We will continue to grow our nat cat book at attractive rates Strong growth in US GAAP nat cat premiums and expected margins... USD bn 3.3 2.8 2.3 2.1 Significant increase in sustainable earnings power 1.3 1.4 1.2 1.2 2017 2018 2019 2020E1 USD Growth has been more f
Slide 63: Disciplined specialty book with targeted growth
P&C Reinsurance L&H Reinsurance 2 We run a disciplined specialty book, with targeted growth opportunities We have a positive outlook for our specialty book... … reflecting profitable opportunities across the portfolios… Economic premiums (USD bn) Enhanced profitability CAGR +8% >2.9 USD >0.3bn Marin
Slide 64: Opportunity to grow with Regional & National clients
P&C Reinsurance L&H Reinsurance 3 Opportunity to grow with Regional & National clients, building on our successful foundation Swiss Re has grown premiums steadily since 2017… ... with further potential to expand Economic premiums for Regional & National segment, USD bn Forecast premiums in US market
Slide 65: Nat cat and reserve development, US casualty
P&C Reinsurance L&H Reinsurance 4 Nat cat losses remain largely in line with long term expectations while we are addressing recent underperformance in US casualty Positive normalised GAAP combined ratio trend expected to continue… … supported by targeted portfolio actions 120% Reported combined rati
Slide 66: L&H Re: profitable growth and margin management
P&C Reinsurance L&H Reinsurance L&H Re: continuation of profitable growth and margin management Portfolio steering: develop mortality book and seize opportunities in health and 1 longevity L&H Text Re 2 Growth: continue expansion in Asia and further portfolio diversification 3 In-force margins: acti
Slide 67: Strategic positioning supports profitable new business growth
P&C Reinsurance L&H Reinsurance 1 Our strategic positioning and broad range of opportunities in L&H Re support profitable new business growth Our focus in L&H Re is on margins… … reinforcing position as the Group’s largest economic profit contributor Economic premiums (USD bn) Enhanced profitability
Slide 68: Strong new business generation increased in-force diversification
P&C Reinsurance L&H Reinsurance 2 Strong new business generation has further increased the attractiveness and diversification of the in-force portfolio L&H Re has grown into a truly global business, fuelled by Asia Economic profit1, USD bn Americas EMEA Asia 0.4 0.4 • L&H Re has significantly grown
Slide 69: Actively managing in-force business to maintain margins
P&C Reinsurance L&H Reinsurance 3 We actively manage our in-force business to maintain margins In-force management is an effective tool to create value for both Swiss Re and our clients Client benefits Swiss Re benefits1 Portfolio rebalancing Optimisation after strategic reviews or M&A ~USD 1.3bn US
Slide 70: In-force and new business lay foundation for earnings growth
P&C Reinsurance L&H Reinsurance 3 In-force and new business lay the foundation for future underlying earnings growth Economic profits generated each year… … emerge in US GAAP over the lifetime of the exposure 2020E, USD bn US GAAP income Illustrative only ~2.0 ~2.0 100% booked in first year Underwri
Slide 71: Positive financial outlook for P&C Re and L&H Re
We have a positive financial outlook for both P&C Re and L&H Re P&C Re: combined ratio improvement expected to continue L&H Re: expected ROE uplift from 2023 onwards 16% 15% 100% 100% 14% 12% Normalised combined ratio1 ROE target range: 10-12% 98% 12% 11% Return on equity3 10% 10% ≤ 97% 8% ≤ 96% 6%
Slide 72: Over-the-cycle financial targets unchanged
Our over-the-cycle financial targets remain unchanged Financial targets Focus on differentiation through Core, Transactions and Solutions ≤96% Benefit from positive reinsurance market pricing developments 2021 combined ratio1 Capture profitable P&C opportunities in nat cat and Regional & National se
Slide 73: Corporate Solutions
Corporate Solutions Andreas Berger, Chief Executive Officer Corporate Solutions
Slide 74: Corporate Solutions is core to Group strategy
Corporate Solutions is core to Swiss Re’s Group strategy Key assets to capture profitable growth • Access to and strategic engagement with corporates • Refocused, differentiated core business • Technology and data infrastructure • Talent and people capabilities Key messages Corporate Solutions is an
Slide 75: Access to a USD 800bn underlying direct insurance market
Corporate Solutions provides access to a USD 800bn underlying direct insurance market Commercial lines remain an attractive and growing risk pool Corporate Solutions addressable market GPW in USD bn Excess & Follow 1,262 Core segments1 CAGR 4.1% ~30% Primary Lead 540 North America incl. Internationa
Slide 76: Direct access to corporate customers is a strategic asset
Our direct access to corporate customers is a strategic asset Core target customer universe GPW by customer segment USD ~90bn GPW USD ~140bn GPW Leading franchise as a ~28 000 Target specialised risk partner universe: Direct customer for corporates ~40 000 relationships1 large and mid-sized Other2 C
Slide 77: Building on technical excellence to pursue focused opportunities
Building on our technical excellence to pursue focused opportunities Capture market opportunities within our de-commoditised core • Focus on selected lines and segments where we have a proven competitive advantage • Leverage strong and continuing rate momentum Excel with the basics Grow with our dif
Slide 78: Implementation of management actions ahead of plan
The implementation of our management actions is ahead of plan Normalised combined ratio development ~4%pts ~8%pts 110% ~12%pts ~2%pts ~4%pts 98% ≤98% ~2%pts FY 2018 Assumptions Portfolio pruning Rate increases Net expense Adjusted Man-made 9M 2020 FY 2021 target (normalised1) revisions savings reins
Slide 79: Shifting capital allocation towards a less volatile portfolio
Shifting our capital allocation towards a rebalanced, less volatile portfolio Portfolio split by region and sub-line Portfolio development % of gross premiums written Gross premiums written, USD bn 4.7 0.2 -0.2 ~4.8 USD 4.7bn USD 4.8bn 11% 12% APAC 22% -0.9 1.0 26% EMEA 11% 8% Latin America North Am
Slide 80: Foundation built on technical and operational excellence
Strong foundation built on technical and operational excellence Data-driven underwriting performance culture Improved cost discipline Global headcount1 Operating expense ratio ~2’800 ~19.5% Costing Reserving accuracy Profitability ~2’500 ~17.5% accuracy 2018 2020E 2018 2020E • Systematic steering an
Slide 81: Market conditions offer profitable growth opportunities
Market conditions offer profitable growth opportunities within our de-commoditised core Corporate Solutions is seeing ongoing strong pricing trends Compound price quality increase (%) • Corporate Solutions is experiencing rate increases above industry average given overweight position in large accou
Slide 82: Growing with differentiated Primary Lead propositions
Growing with differentiated Primary Lead propositions Evolution of Primary Lead capabilities Generating more Lead business with our differentiated propositions International Programmes Capture opportunities in international programme lead business leveraging leading proprietary technology platform ~
Slide 83: Developing our business model beyond risk transfer
We are developing our business model beyond risk transfer Example: International Programme Platform-as-a-Service Expand into risk-related Offer: distinctive, technology-enabled International Programme platform services Customers: insurance carriers, brokers • Build on existing Primary Revenue model:
Slide 84: Strategic engagement with corporates across Swiss Re Group
Corporate Solutions’ strategic engagement with corporates extends across Swiss Re Group Long-term relationships with corporate customers have fostered the possibility for strategic engagements across Swiss Re Group Swiss Re commercial insurance Swiss Re commercial insurance Swiss Re commercial insur
Slide 85: Becoming a specialised risk partner
Becoming a specialised risk partner with deep capabilities in selective lines and segments Financial targets Corporate Solutions is an integral part of Swiss Re's Group Combined ratio target1 strategy and provides complementary access to a strategically and financially attractive market ≤98% in 2021
Slide 86: Wrap-up
Wrap-up Christian Mumenthaler, Group Chief Executive Officer 86
Slide 87: We aim to operate as 'One Swiss Re'
We aim to operate as ‘One Swiss Re’ Risk Knowledge Leadership Client Collaboration & Access Capital Strength Reinsurance A leading global reinsurer Our People A specialised risk partner with direct Risk Knowledge Leadership Client Collaboration & Access Capital Strength Corporate Solutions access to
Slide 88: Key messages for today
Key messages for today • Very strong balance sheet and proactive approach to COVID-19 reserving allow for targeted growth • We see positive rate momentum in P&C Re and expect a normalised combined ratio of ≤96% in 2021 • We continue to focus on profitable growth across regions in L&H Re and to manag
Slide 89: Appendix
a Appendix : ~ Ey B { me | : Ln aaa a FFA a + e | ALE | = ie Ah Fe a a ail | a ey ie
Slide 90: Capital strength is resilient to market moves and insurance events
Our capital strength is resilient to market moves and insurance events Financial market sensitivities Insurance stresses Resulting estimated Group SST ratio 7/2020 Resulting estimated Group SST ratio 7/20201 Group SST 7/2020 223% Group SST 7/2020 223% Equity markets (-25%) 218% 1 in 200-year Atlanti
Slide 91: Drivers of US social inflation likely to stay
Drivers of US social inflation are likely here to stay for foreseeable future Driver Impact Driver Current trend Expectation for the future relevance ST1 LT2 • Tort case filings in state courts trending upwards Propensity to • Multi-district litigation is decreasing but the number of claimants in la
Slide 92: Corporate Solutions invests in technology, data and talent
Corporate Solutions continues to invest in technology and data infrastructure, as well as talent Advanced use of technology and data and analytics Enriched talent mix Analytical data model creating single version -900 Data and analytics to of truth for business steering support underwriting Supporte
Slide 93: Corporate calendar and contacts
Corporate calendar and contacts Corporate calendar 2021 19 February Annual Results 2020 Conference call 18 March Publication of Annual Report 2020 16 April 157th Annual General Meeting Zurich Investor Relations contacts Hotline E-mail +41 43 285 44 44 [email protected] Thomas Bohun Oliv
Slide 94: Investors' Day | Zurich, 20 November 2020
Investors' Day | Zurich, 20 November 2020 94
Slide 95: 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 96: Legal notice
Legal notice ©2020 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