Swiss Re Ag · SIX:SREN
Swiss Re — 24th Vontobel Summer Conference 2016
26 slides from Swiss Re's conference presentation, Jun 8, 2016
Slide 1: Vontobel Summer Conference
Vontobel Summer Conference Agostino Galvagni, CEO Corporate Solutions Interlaken, 8 June 2016
Slide 2: Today's agenda
Today’s agenda • Swiss Re Group 3 • Corporate Solutions 11 • Appendix 22 24th Vontobel Summer Conference | June 2016 2
Slide 3: Swiss Re Group
Swiss Re Group 24th Vontobel Summer Conference | June 2016 3
Slide 4: Swiss Re is well diversified across geographic regions and business segments
Swiss Re is well diversified across geographic regions and business segments Net premiums earned1 Economic Net Worth3 by region (in USD bn) by business segment 13.2 10.3 6.7 Corporate Solutions 9% Life Capital 11% P&C Re 49% Americas Europe Asia (incl. Middle East /Africa) 44% 34% 22% L&H Re 31% of
Slide 5: Swiss Re faces various challenges and opportunities
Swiss Re faces various challenges and opportunities Industry Low margins consolidation Current Low yield, low Volatility in High growth environment; Growth Markets regulatory changes Evolution of primary Reshuffling of players with rich value chain customer insights Future Impact of New and enlargin
Slide 6: Our strategic framework is the basis for achieving our financial targets over the cycle
Our strategic framework is the basis for achieving our financial targets over the cycle Areas of strategic action Group financial targets I systematically allocate capital to risk pools / ROE ≥ revenue streams risk free + 700bps1 II III broaden optimise and diversify client resources and platforms m
Slide 7: The strategic framework also drives our Business Units' 2016 priorities
The strategic framework also drives our Business Units’ 2016 priorities I II III IV Reinsurance Corporate Solutions Life Capital • Portfolio steering, • Selective and profitable • Successfully integrate transactions and growth Guardian business underwriting discipline • Expand into Primary Lead • Se
Slide 8: Swiss Re's Group capitalisation remains very strong
Swiss Re’s Group capitalisation remains very strong SST risk-bearing capital SST target capital SST ratio USD bn 70 245% 250% 241% 240% 60 223% 223% 230% 213% 50 220% 208% 210% 40 200% 30 190% 20 180% 170% 10 160% 38.5 18.5 40.7 19.1 48.7 19.8 52.2 21.6 52.6 23.6 50.1 22.5 0 150% 2011 2012 2013 2014
Slide 9: Swiss Re's performance and business model enable significant capital distributions
Swiss Re’s performance and business model enable significant capital distributions • Group risk tolerance framework Dividend flows since new structure in 2012 determines the amount of excess capital available at legal entities and BU’s for repatriation to the Group holding company USD 12.1bn • Since
Slide 10: All Business Units contributed to Swiss Re's strong Q1 2016 results
All Business Units contributed to Swiss Re’s strong Q1 2016 results • Swiss Re reports first quarter net income of USD 1.2bn, supported by solid underwriting and strong investment results; ROE of 14.6% • P&C Reinsurance delivers strong results with net income of USD 587m, reflecting benign nat cat e
Slide 11: Corporate Solutions
Corporate Solutions 24th Vontobel Summer Conference | June 2016 11
Slide 12: Corporate Solutions has transformed itself since launch in 2010
Corporate Solutions has transformed itself since launch in 2010 2010 2015 Baseline year Achieved Gross premiums written1 USD 2.6bn USD 3.9bn Return on equity 7.4%2 14.8% Employees ~1 000 ~2 400 Offices 32 52 Operating platform Harmonise and upgrade Operational sustainability Improve and maintain
Slide 13: Corporate Solutions' portfolio is well diversified across lines of business, geographies and industries
Corporate Solutions’ portfolio is well diversified across lines of business, geographies and industries By line of business By geography GPW 2015 GPW 2015 12% 14% 9% 11% 21% 20% 22% Credit & Surety 31% 29% Asia Pacific Special Lines Latin America 58% Casualty 37% 36% EMEA Property North America By i
Slide 14: The commercial insurance market is very diverse and fragmented. Corporate Solutions ranks 26th
The commercial insurance market is very diverse and fragmented. Corporate Solutions ranks 26th overall… Top-30 Players beyond top-30 Top-10 represent ~25% Top 11-30 represent ~10% of market of market Corporate Solutions 4 Insurers with GMP capabilities Insurers with multiregional focus Insurers with
Slide 15: …but is a leader in the Excess Layer Market, and expanding into the next segment
…but is a leader in the Excess Layer Market, and expanding into the next segment 2015 commercial insurance market premium: USD 700bn in USD bn Excess Layers Wholesale Main characteristics Penetration 120 (large corporations) Deal size Primary Lead Deal complexity 60 (mid-sized corporations) Global M
Slide 16: We are on our way to become a Primary Lead insurer
We are on our way to become a Primary Lead insurer Ambition: Generate additional premiums of USD 1.0bn – 1.5bn by 2020 EMEA: North America: • Italy (P&C, FinPro, Marine) • Canada (P&C) • France (P&C, Marine) • US (Property, FinPro; 2016: Casualty) • Germany (P&C; 2016: FinPro) • UK (2016: P&C, FinPr
Slide 17: Our distribution footprint is global and growing
Our distribution footprint is global and growing 52 offices across 20 countries North America: 23 offices EMEA: 12 offices Asia Pacific: 10 offices Latin America: 7 offices Local presence & Local presence & Local insurance insurance license reinsurance license license Note: Latin America includes Mi
Slide 18: Three key factors differentiate us from competitors
Three key factors differentiate us from competitors Corporate Solutions' value proposition Opens doors and attracts • Leading brand talents • Financial strength • "We are here to stay“ ~720 transactions with • Large net capacity USD 100m capacity or more in 2015 • Innovation ~60 innovative transacti
Slide 19: Corporate Solutions is well positioned to manage the cycle, with focus on profitable growth
Corporate Solutions is well positioned to manage the cycle, with focus on profitable growth Gross premiums written1 EBIT Net income USD m USD m USD m 230 833 250 45 180 167 45 777 40 160 40 630 661 200 153 35 140 35 124 30 120 101 30 150 110 25 100 80 80 25 20 80 20 100 15 60 15 10 40 10 50 5 20 5 0
Slide 20: Key messages
Key messages • Swiss Re remains well positioned to face the current re/insurance sector environment and deliver sustainable shareholder value • Enhanced strategic framework implemented to enable the Group’s Swiss Re transformation into the most successful capital allocator in insurance risks, Group
Slide 21: Q&A
Q&A 24th Vontobel Summer Conference | June 2016 21
Slide 22: Appendix
Appendix 24th Vontobel Summer Conference | June 2016 22
Slide 23: Underwriting and investment performance of the Group are both strong and stable
Underwriting and investment performance of the Group are both strong and stable 130% 5% 120% 4% 110% 114.1 101.1 98.3 98.2 97.3 95.4 100% 93.9 104.7 92.8 91.3 3% 104.0 89.3 90% 98.4 98.4 97.9 97.4 90.2 93.7 96.8 2% 80% 90.4 85.7 87.4 83.1 85.4 1% 70% 60% 0% 1 5-year avg US Treasury risk-free rates (
Slide 24: We strengthened our presence in our 12 key High Growth Markets
We strengthened our presence in our 12 key High Growth Markets Mexico Turkey UAE India China Dubai office opened Sun Alliance China in 2012 acquisition in 2015 Hong Kong Colombia Seguros Confianza acquisition in 2014 Chile Brazil South Africa Singapore Malaysia UBF acquisition in Office opened in 20
Slide 25: Innovation capabilities in several areas, acknowledged by the market
Innovation capabilities in several areas, acknowledged by the market Bespoke structures New risks Derivative solutions • Multi-line/multi-year • Cyber risk: • Temperature and weather solutions Partnership with related derivatives • Non-damage business IBM • Crop shortfall derivatives interruption •
Slide 26: Legal notice
Legal notice ©2016 Swiss Re. All rights reserved. You are not permitted to create any modifications or derivative works of this presentation or to use it for commercial or other public purposes without the prior written permission of Swiss Re. The information and opinions contained in the presentati