Zurich Insurance Group Ltd · SIX:ZURN

Zurich Insurance — Investor Presentation (December 2003)

13 slides from Zurich Insurance's investor presentation, Dec 10, 2003

  1. Slide 1: Insurance Accounting

    Insurance Accounting Kevin Senior 10 December 2003 1 December 10, 2003

  2. Slide 2: Agenda

    Agenda • Overall background • Local GAAP • Swiss GAAP FER • The Future • Key Performance Measures 2 December 10, 2003

  3. Slide 3: Overall Background

    Overall Background • Current state of flux • Trend towards harmonisation • Dynamics between industry, regulators and politicians • Impact on the Swiss Insurance Industry • Impact on the users of accounts 3 December 10, 2003

  4. Slide 4: Local GAAP

    Local GAAP • Emmentalische Mobiliar • Pax 4 December 10, 2003

  5. Slide 5: Local GAAP

    Local GAAP • Is it a good basis of comparison? - Insurance companies exempt from requirement to disclose financial year movement on hidden reserves in the notes for insurance reserves - Valuation of investments - bonds - Deferred acquisition costs - Lot of scope for differing policies eg claims hand

  6. Slide 6: Swiss GAAP FER

    Swiss GAAP FER • Allianz • Generali • Helvetia Patria • Mobiliar • National • Swiss Re • Vaudoise 6 December 10, 2003

  7. Slide 7: Swiss GAAP FER

    Swiss GAAP FER • Developed from local GAAP – higher level of sophistication - prescribed format for accounts - hidden reserves not permissable (potentially) 7 December 10, 2003

  8. Slide 8: Swiss GAAP FER

    Swiss GAAP FER • Is it a good basis for comparison? - no substantial differences in principle between insurers and everyone else • BUT - Swiss GAAP FER 14 lays out presentation principles - treatment of unrealised gains and losses - valuation of reserves 8 December 10, 2003

  9. Slide 9: Swiss GAAP FER 14

    Swiss GAAP FER 14 • Giving exemptions from other standards rather than setting out new principles • 5 pages of presentational requirements • 2 pages on valuation principles, 3 paragraphs on technical reserves 9 December 10, 2003

  10. Slide 10: The Future

    The Future • Baloise (IAS) • Converium (US GAAP) • Swiss Life (IAS) • Zurich Financial Services (IAS) 10 December 10, 2003

  11. Slide 11: The Future

    The Future • Swiss Exchange have mandated that all listed companies adopt IAS or US GAAP by 2005 • More robust set of standards • Principle versus rule based • IAS 39 • ED5 • Phase 2..... 11 December 10, 2003

  12. Slide 12: Key performance measures

    Key performance measures • Combined Ratio - Cost ratio - Claims ratio • Technical result • Back year deterioration • Premium Income • Embedded Value (EV) 12 December 10, 2003

  13. Slide 13: Conclusion

    Conclusion • It is not easy! • Moves towards greater transparancy to be welcomed • Interpret and compare with caution 13 December 10, 2003

Zurich Insurance Group — Investor Presentation (December 2003) on 6ix