Swiss Re Ag · SIX:SREN
Swiss Re — Bellevue Meets Management Seminar 2017
28 slides from Swiss Re's conference presentation, Jan 12, 2017
Slide 1: Where Strategy Drives Returns
Where Strategy Drives Returns Bellevue Meets Management Seminar Christian Mumenthaler, Group Chief Executive Officer Zurich, 12 January 2017
Slide 2: Today’s agenda
Today’s agenda Business and strategy update 3 Near-term priorities 10 Capital management 17 Wrap-up 23 Bellevue Meets Management Seminar | Zurich, 12 January 2017 2
Slide 3: Business and strategy update
Business and strategy update Bellevue Meets Management Seminar | Zurich, 12 January 2017 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, 2015) by business segment (in %, as at YE 2015) 13.2 10.3 6.7 Corporate Solutions 9% Life Capital 11% P&C Re 49% Americas Europe Asia (incl. Middle East /Africa
Slide 5: In the currently challenging environment we see attractive long-term opportunities
In the currently challenging environment we see attractive long- term opportunities Key challenges Long-term opportunities • Soft market in the P&C world • Growing risk pools (GDP growth and – demand/supply imbalance demographic trends) – industry consolidation • High Growth Markets • Interest rates
Slide 6: Strong results in the first nine months of 2016 demonstrate Swiss Re’s resilience
Strong results in the first nine months of 2016 demonstrate Swiss Re’s resilience to the market environment Solid Group ROE in current market 11.6% ROE Risk-adjusted price quality Reduction in flow business & growth in large transactions maintained at 102%1 Strong investment performance from Asset M
Slide 7: Swiss Re has been an agile capital allocator – we are now executing the next phase
Swiss Re has been an agile capital allocator – we are now executing the next phase of our strategy Historic Outlook 2012 - 2014 2015 - 2016 Short-term Long-term Conventional P&C Re Transactions • Long-term, we are optimistic about the growth prospects of L&H Re all our businesses • Short-tem, we see
Slide 8: This differentiation approach has enabled Swiss Re to generate higher margins and outperform
This differentiation approach has enabled Swiss Re to generate higher margins and outperform Net operating margin (NOM)1 2012 – 9M 2016 NOM – Split by components – Avg. 2012-9M 2016 20% 17% 13% 15% 10% 26% 19% 5% -6% -9% 0% 2012 2013 2014 2015 9M 2016 Swiss Re Reinsurers 2 Swiss Re Reinsurers 2 Oper
Slide 9: With our strategic framework, Swiss Re is well placed to face the industry challenges
With our strategic framework, Swiss Re is well placed to face the industry challenges and seize opportunities Swiss Re’s strategic framework Near-term priorities I systematically allocate capital to risk pools / Large & tailored transactions revenue streams Growth Corporate Solutions through systema
Slide 10: Near-term priorities
Near-term priorities Bellevue Meets Management Seminar | Zurich, 12 January 2017 10
Slide 11: We invest in R&D to further strengthen our competitive advantage
Knowledge We invest in R&D to further strengthen our competitive advantage R&D activities amount to nearly 400 FTEs in 2016 How R&D drives competitive Estimated allocation of R&D focused FTE across Swiss Re advantage: • Unique selling proposition to Casualty Customer clients: Structured R/I Solution
Slide 12: Technological innovation gives us the opportunity to further differentiate and support our clients
Knowledge Technological innovation gives us the opportunity to further differentiate and support our clients Selected initiatives on Group level (across the value chain) Cooperation and investments Internal digital competence centres Cooperation through accelerator programmes Digital & Smart Analyti
Slide 13: Large and tailored transactions in Reinsurance provide attractive growth in a challenging market
Growth Large and tailored transactions in Reinsurance provide attractive growth in a challenging market • Further cement differentiated economics model with clients through: – direct C-suite interaction model – delivering useful knowledge to clients – common growth opportunities with clients Return
Slide 14: Corporate Solutions will continue to grow in relevance with unchanged focus on profitability
Growth Corporate Solutions will continue to grow in relevance with unchanged focus on profitability • Short-term outlook is challenging with likely reduction of deployed capacity in the Excess Layer segments • Long-term prospects remain positive Return on Equity – Corporate Solutions • Key initiativ
Slide 15: Life Capital increases access to attractive risk pools in open and closed L&H books
Growth Life Capital increases access to attractive risk pools in open and closed L&H books • A primary L&H powerhouse with insurance clients, pension funds and distribution partners • Differentiating through leading edge underwriting and servicing capabilities Return on Equity – Life Capital • Growi
Slide 16: We have invested in High Growth Markets, establishing a strong presence
Growth We have invested in High Growth Markets, establishing a strong presence and intend to maintain our leading position Asia Latin America Africa China #1 int. P&C reinsurer #2 int. L&H reinsurer #8 int. Commercial insurer India ` Mexico #2 int. P&C reinsurer #1 P&C reinsurer #3 int. L&H reinsure
Slide 17: Capital management
Capital management Bellevue Meets Management Seminar | Zurich, 12 January 2017 17
Slide 18: We target an optimal risk portfolio to balance short-term considerations with long-term shareholder value
We target an optimal risk portfolio to balance short-term considerations with creating long-term shareholder value Swiss Re applies a holistic capital allocation approach… Strategic Capital Business Performance ambition allocation planning assessment …to systematically deploy capital to risk pools L
Slide 19: Our Business Unit structure and our capital allocation have supported a strong value generation
Our Business Unit structure and our capital allocation have supported a strong value generation and flow of dividends 2012 – 2016: • We aim to maximise USD 13.2bn3 distribution shareholder value to shareholders Avg. ordinary • Utilised funds in Avg. pay-out ratio1: dividend pay-out 68% different way
Slide 20: Swiss Re maintains a leading capital position in the reinsurance sector and industry
Swiss Re maintains a leading capital position in the reinsurance sector and industry Solvency II peer comparison (May 2016) • SST and Solvency II are both comprehensive, 312% economic and risk-based solvency regimes • Due to important differences, SST ratio can be significantly lower than Solvency I
Slide 21: We continue to focus on our over-the-cycle Group and Business Units’ targets
We continue to focus on our over-the-cycle Group and Business Units’ targets Group financial performance Return on Equity ENW per share growth2 13.7% 11.6% Rf + 10.0% 10.5% 700 11.6% bps1 4.0% 2014 2015 9M 2016 Over the 2014 2015 Over the cycle cycle Target Target Business Units’ Return on Equity P&
Slide 22: Swiss Re’s capital allocation aims to deliver sustainable shareholder value
Swiss Re’s capital allocation aims to deliver sustainable shareholder value Long-term shareholder value …underpinned by our creation… capital management priorities We target a portfolio of asset and liability risks to balance 1 short-term considerations with long-term value creation Ensure superior
Slide 23: Wrap-up
Wrap-up Bellevue Meets Management Seminar | Zurich, 12 January 2017 23
Slide 24: We focus on near-term priorities to achieve attractive growth and leverage our risk knowledge
We focus on near-term priorities to achieve attractive growth and leverage our risk knowledge Swiss Re’s strategic framework Near-term priorities I systematically allocate capital to risk pools / Large & tailored transactions revenue streams Growth Corporate Solutions through systematic capital II I
Slide 25: Our Vision: We make the world more resilient
Our Vision We make the world more resilient. Bellevue Meets Management Seminar | Zurich, 12 January 2017 25
Slide 26: Bellevue Meets Management Seminar | Zurich, 12 January 2017
Bellevue Meets Management Seminar | Zurich, 12 January 2017 26
Slide 27: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2017 23 February Annual Results 2016 Conference call 16 March Publication of Annual Report 2016 21 April 153rd Annual General Meeting Zurich Investor Relations contacts Hotline E-mail +41 43 285 4444 [email protected] Philippe Brahin Jutt
Slide 28: 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 an