Swiss Re Ag · SIX:SREN

Swiss Re — Helvea Baader Swiss Equities Conference 2016

26 slides from Swiss Re's conference presentation, Jan 14, 2016

  1. Slide 1: Swiss Re's strategy and performance in a volatile market

    Swiss Re’s strategy and performance in a volatile market Helvea Baader, Swiss Equities Conference Guido Fürer, Group Chief Investment Officer, 14 January 2016

  2. Slide 2: Today's agenda

    Today’s agenda • Swiss Re Group at a glance • Group strategic framework and capital allocation • Swiss Re’s asset management • Importance of long-term investors for growth and financial stability • Conclusion Helvea Baader, Bad Ragaz | 14 January 2016 2

  3. Slide 3: Swiss Re Group at a glance

    Swiss Re Group at a glance Helvea Baader, Bad Ragaz | 14 January 2016 3

  4. Slide 4: Swiss Re Group at a glance

    Swiss Re Group at a glance Swiss Re is a leading and highly diversified global reinsurer, founded in Zurich (Switzerland) in 1863 The Group offers traditional reinsurance products and related services for property and casualty, as well as for life and health businesses The Group also offers commerci

  5. Slide 5: Leadership through geographic and product diversification

    Leadership through geographic and product diversification Net premiums earned1 2014 (USD 31.3bn) by region (in USD bn) … and by business segment: 12.2 11.3 7.8 Corporate Solutions 11% Admin Re® 3% P&C Re Americas Europe Asia 50% (incl. Middle East /Africa) 39% 36% 25% L&H Re 36% of which HGMs incl.

  6. Slide 6: Strong flow of internal and external dividends since 2012

    Strong flow of internal and external dividends since the introduction of Swiss Re's Business Unit structure in 2012 USD 10.6bn1 distribution to shareholders Swiss Re Ltd USD 8.0bn2 USD 3.0bn2 USD 1.4bn2 USD 2.2bn2 Corporate Reinsurance Admin Re® Solutions P&C L&H Life Capital3 Swiss Re's capital man

  7. Slide 7: Group strategic framework and capital allocation

    Group strategic framework and capital allocation Helvea Baader, Bad Ragaz | 14 January 2016 7

  8. Slide 8: The insurance industry and Swiss Re face various challenges and opportunities

    The insurance industry and Swiss Re face 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

  9. Slide 9: Our strategic framework will drive value creation

    Our strategic framework will drive value creation… Target liability Strategic asset Business portfolio allocation steering I Leadership systematically allocate capital to risk Talent & across pools / revenue streams geographies footprint II broaden III optimise Innovation and diversify resources and

  10. Slide 10: …and enable us to achieve our financial targets

    …and enable us to achieve help our financial targets Group financial targets ROE ENW per share growth Rf+700bps 10% per annum 2016 Over the cycle 2015 2016 Over the cycle Year-end ENW + dividends from current year divided by 700bps above risk free (10-year US Gov Bonds1) previous year end ENW; all p

  11. Slide 11: Swiss Re's asset management

    Swiss Re’s asset management Helvea Baader, Bad Ragaz | 14 January 2016 11

  12. Slide 12: Investment environment

    Investment environment  We continue to expect a moderate global growth environment, led by the US. Economic growth in Europe stays moderate, while China is set to experience a further slowdown. Overall risks remain skewed to the downside  Over the longer-term, our investment strategy thinking is i

  13. Slide 13: Financial market developments: The risk of asset price bubbles

    Financial market developments: The risk of asset price bubbles • Market volatility set to remain elevated • US equity indices are close to record-high levels, while interest rates stay very low • Around 40% of the Eurozone government bond market trades with negative yields • Monitoring the risk of a

  14. Slide 14: Asset management operating platform is used by multiple stakeholders

    Asset management operating platform is used by multiple stakeholders within Swiss Re Reinsurance, e.g. Life Capital, e.g. Corporate Solutions, e.g. Environmental & Agriculture Insurance-linked securities Admin Re® Transactions Markets Asset Management Operating Platform Principle Investment Treasury

  15. Slide 15: Swiss Re's investment process leads to an optimal investment portfolio

    Swiss Re's investment process leads to an optimal investment portfolio Mandate Group & Business Units Top-down Asset Allocation Implementation/ Objectives Investment View Execution Define strategic Develop a Derive asset Implement mandates priorities taking into fundamental macro allocation based on

  16. Slide 16: Swiss Re continues to maintain a high quality, well-balanced asset mix

    Swiss Re continues to maintain a high quality, well- balanced asset mix 100% 1% 1% 1% 1% 11% 8% 8% 7% 90% Other 80% 70% 33% 35% 38% 44% Equities & alternatives 60% (incl. Principal Investments) 50% Credit investments 40% 32% 39% 30% 41% 37% Government bonds 20% 10% 23% 17% 12% 11% 0% End FY 2013 End

  17. Slide 17: Steady investment performance through active asset re-balancing

    Steady investment performance through active asset re-balancing despite continued low yield environment 7% 6.3% 6% 5.3% 5.0% 5% 4.7% 4.4% 4.0% 4% 3.7% 3.8% 3.5% 3.6% 3% 2% 1.8% 1% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 2015 10-year avg US Treasury risk-free rates ROI Running yield 1

  18. Slide 18: Importance of long-term investors for growth and financial stability

    Importance of long-term investors for growth and financial stability Helvea Baader, Bad Ragaz | 14 January 2016 18

  19. Slide 19: Long-term investors can support growth and financial stability

    Long-term investors can support growth and financial stability Infrastructure Activate long-term investors by supports growth creating an asset class 2015 GDP growth1 in Long-term advanced investor asset economies: +USD 1 base: 2.0% infrastructure capital USD 70trn2 Only ~10% of  +USD 3 GDP global

  20. Slide 20: Non-bank private capital markets intermediation should be strengthened

    Non-bank private capital markets intermediation should be strengthened Financing source year 2014, non-financial corporate sector, % 100% 23% 80% 70% 60% 40% 77% 20% 30% 0% Euro area US Capital market financing Bank financing Source: ECB, US Fed Helvea Baader, Bad Ragaz | 14 January 2016 20

  21. Slide 21: Swiss Re is actively engaged to promote the insurance sector's role as long-term investors

    Swiss Re is actively engaged to promote the insurance sector’s role as long-term investors Helvea Baader, Bad Ragaz | 14 January 2016 21

  22. Slide 22: Conclusion

    Conclusion Helvea Baader, Bad Ragaz | 14 January 2016 22

  23. Slide 23: Conclusion

    Conclusion • Swiss Re is a leading global (re-)insurer and benefits from geographic and business mix diversification • Swiss Re’s capital allocation aims to achieve profitable growth and deliver sustainable shareholder value • Building upon the successful strategy introduced in 2011, Swiss Re moves

  24. Slide 24: Helvea Baader, Bad Ragaz | 14 January 2016

    Helvea Baader, Bad Ragaz | 14 January 2016

  25. Slide 25: Corporate calendar & contacts

    Corporate calendar & contacts Corporate calendar 2016 23 February Annual Results 2015 Conference call 16 March Publication of Annual Report 2015 and EVM 2015 22 April 152nd Annual General Meeting Zurich 29 April First Quarter 2016 Results Conference call Investor Relations contacts Hotline E-mail +4

  26. Slide 26: 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

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