Swiss Re Ag · SIX:SREN
Swiss Re — Investor Presentation (September 2010)
14 slides from Swiss Re's investor presentation, Sep 13, 2010
Slide 1: Investors and Media meeting
a Investors and Media meeting Monte Carlo, 13 September 2010
Slide 2: Today's agenda
Today’s agenda a Introduction Stefan Lippe, CEO Market outlook Brian Gray, CUO Solvency II Michel Liès, CMO Questions & answers Investors & Media meeting | Monte Carlo | 13 September 2010 2
Slide 3: Introduction: Our vision
a Introduction Stefan Lippe, CEO Investors & Media meeting | Monte Carlo | 13 September 2010 3 Our vision a Clients The preferred partner Investors An excellent investment To be the leading player in the Employees wholesale The place to succeed re/insurance industry Competitors A serious challenge S
Slide 4: Defining leadership in wholesale re/insurance
Defining leadership in wholesale re/insurance a For investors For competitors For employees For society Be an excellent Be a serious Be the place to Be a credible partner investment challenge succeed Restore AA rating A top competitor for Appropriate goals and Socially responsible every opportunity
Slide 5: Market outlook: Economic conditions for reinsurance
a Market outlook Brian Gray, CUO Investors & Media meeting | Monte Carlo | 13 September 2010 7 Economic conditions for reinsurance A mixed picture a Excess capital is back – Non-life reinsurance capital has returned to pre-crisis levels – Client capital and retention management is accelerating R
Slide 6: P&C in classic late soft cycle; L&H recovering
P&C in classic late soft cycle; L&H recovering a P&C – Companies relying on reserve releases (financial year loss ratio is 6 points better than accident year in H1 2010 for US/Bermuda players) – Substantial business in the market is priced at levels that destroys value – First half claims events i
Slide 7: Low yields pressure UW results
Low yields pressure UW results Example: Germany a 2008 insurance Germany: 14% Asset leverage: 325% Tax rate 24% 12% NPW/surplus 73% ROE 10% 8% 6% 4% 4.7% yield (as in 2000) 2% 2.7% yield (as in 2008) 0% 85% 87% 89% 91% 93% 95% 97% 99% 101% Combined Ratio A combined ratio near 90% is needed for a 10%
Slide 8: European natural catastrophe
European natural catastrophe The recent past a Insured Loss Year Event EUR bn 2007 Windstorm Kyrill 4.2 Floods in UK 3.1 2008 Windstorm Emma 0.7 Hailstorm Hilal 0.4 2009 Windstorm Klaus 2.3 Windstorm Quinten 0.3 Earthquake in Italy 0.4 Hailstorm Felix 0.5 Hailstorm Wolfgang 0.8 Floods Istanbul 0.3 2
Slide 9: Swiss Re's cyclical approach
Swiss Re's cyclical approach Reliable, consistently-priced capacity a Price Illustrative Swiss Re Market Time Swiss Re will continue to offer high-quality, consistently-priced capacity, as the market fluctuates Investors & Media meeting | Monte Carlo | 13 September 2010 15
Slide 10: Solvency II – our appraisal
a Solvency II Michel Liès, CMO Investors & Media meeting | Monte Carlo | 13 September 2010 16 Solvency II – our appraisal a Solvency II will – impact decision making and capital management for European based companies – influence internal business processes supporting risk reporting and disclosure
Slide 11: Solvency II – the opportunities
Solvency II – the opportunities a The change from Solvency I to … creates new capital drivers for Solvency II … regulatory capital requirements Under Solvency I many fundamentals of Underwriting (UW) risk the insurance business model have been neglected in the regulatory regime Insufficient dive
Slide 12: Solvency II – Swiss Re as a partner
Solvency II – Swiss Re as a partner a We have many years of practical experience with economic models and the Swiss Solvency Test We benefit from our strong expertise in risk and capital management We provide essential reinsurance capacity to the insurance market We can assist our clients in
Slide 13: Questions & answers; Corporate calendar & contacts
a Questions & answers Investors & Media meeting | Monte Carlo | 13 September 2010 21 Corporate calendar & contacts a Corporate calendar 04 November 2010 Third Quarter 2010 results Conference call 17 February 2011 Annual Results 2010 Zurich 15 April 2011 147th Annual General Meeting Zurich Investor R
Slide 14: 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