Swiss Re AG · SIX:SREN
Swiss Re — Swiss Equities Conference 2005
18 slides from Swiss Re's conference presentation, May 3, 2005
Slide 1: Swiss Equities Conference
ab Swiss Equities Conference John Fitzpatrick Chief Executive Officer Life & Health Business Group London, 3 May 2005 Cautionary note on ab forward-looking statements Certain statements contained herein are forward-looking. These statements provide current expectations of future events based on cert
Slide 2: Swiss Re at a glance
ab Agenda Swiss Re: A global approach 2004 embedded value Swiss Re’s strategic priorities: Life & Health Business Group Outlook and conclusions Appendix John Fitzpatrick Swiss Equities Conference London, 3 May 2005 Slide 3 ab Swiss Re at a glance Net income amounted to CHF 2.5 billion Prem
Slide 3: Swiss Re's evolution to a global firm
ab Swiss Re’s evolution to a global firm Working as a global firm Organisational Formation Integration Triple 20 Launch of New BG of Divisions of Union Re program e-business structure alignment Integration of Bavarian Re Build Financial Set-up of Creation Acquisition Acquisition Acquisition Formatio
Slide 4: Swiss Re's mission is to be the authority on managing capital and risk
Swiss Re’s mission is to be the ab authority on managing capital and risk Our goals Be the global market leader in P&C and L&H reinsurance Be the premier provider of capital, risk and asset management solutions in business-to-business financial services with a specific focus on insurance and oth
Slide 5: Highlights of 2004 embedded value
ab Agenda Swiss Re: A global approach 2004 embedded value Swiss Re’s strategic priorities: Life & Health Business Group Outlook and conclusions Appendix John Fitzpatrick Swiss Equities Conference London, 3 May 2005 Slide 9 ab Highlights of 2004 embedded value The 2004 embedded value was
Slide 6: Increase of embedded value of CHF 1.1 billion
Increase of embedded value of ab CHF 1.1 billion CHF millions 2003 2004 Opening embedded value 16 281 16 003 Embedded value earnings 1 078 2 001 Exchange rate movements -831 -862 Capital movements -525 -83 Close embedded value 16 003 17 059 Embedded value up due to 86% increase in embedded value e
Slide 7: Strategic priorities
ab Agenda Swiss Re: A global approach 2004 embedded value Swiss Re’s strategic priorities: Life & Health Business Group Outlook and conclusions Appendix John Fitzpatrick Swiss Equities Conference London, 3 May 2005 Slide 13 ab Swiss Re’s strategic priorities I. Actively manage the cycle fo
Slide 8: How Swiss Re has managed the cycle in the past
How Swiss Re has managed the ab cycle in the past Non-life pricing (Lloyd’s non-marine price index3)); 1994 = 100 Non-life margins increase: Non-life margins decrease: Non-life margins increase: 150 Swiss Re grows non-life Swiss Re expands life Swiss Re grows non-life business above market business
Slide 9: Risk is a growth business: Reinsurance outpaced insurance and GDP growth
ab Swiss Re’s strategic priorities I. Actively manage the cycle for profits II. Optimise organic and transactional growth Excellence in execution III. Extend leadership in Asia IV. Accelerate the balance sheet through risk securitisation John Fitzpatrick Swiss Equities Conference London, 3 May 2005
Slide 10: L&H: Optimise organic growth
L&H: Optimise organic growth ab Maintain risk management disciplines True market leader market share (2004) Swiss Re 21% 8% GE ERC 9% 20% 6% RGA Munich * Hannover Market follower Monoline Multiline Î Focusing on growth opportunities John Fitzpatrick Traditional life and health business Swiss Equit
Slide 11: Admin Re: Cumulative capital invested
ab Admin Re: Cumulative capital invested Swiss Re has acquired more than 40 individual blocks of business since 1998 3 793 Cumulative capital invested (USDm) 2 659 2 271 1 951 1 531 711 291 1998 1999 2000 2001 2002 2003 2004 US Admin Re UK Admin Re John Fitzpatrick Swiss Equities Conference UK A
Slide 12: Extend leadership position in Asia
ab Extend leadership position in Asia Official opening of Japan branch – May 2004 – First global reinsurer to establish branch in Japan Taiwan Ministry of Finance grants reinsurance branch licence – July 2004 – First global reinsurer to establish branch in Taiwan Focus on training and developm
Slide 13: Accelerate the balance sheet: Improving capital management
ab Swiss Re’s strategic priorities I. Actively manage the cycle for profits II. Optimise organic and transactional growth Excellence in execution III. Extend leadership in Asia IV. Accelerate the balance sheet through risk securitisation John Fitzpatrick Swiss Equities Conference London, 3 May 2005
Slide 14: Accelerate the balance sheet: Improving margin
Accelerate the balance sheet: ab Improving margin Tranche A Retained 10% Placed at Risk portfolio Securitised 6.96% 87% (Admin ReSM) pre-tax Tranche B Sourced at Tranche C IRR of 11+% Retained 13% after tax 10% 90% Quota share: Investors Swiss Re believes current structure is scaleable and can be
Slide 15: L&H contribution to the group-wide strategic priorities
L&H contribution to the group-wide ab strategic priorities Actively manage the cycle for profits Optimise organic and transactional growth Pricing review in the US Increased investment in Admin Re Continue focus on internal and client Develop inforce transactions in Europe risk management pr
Slide 16: Target matrix
ab Target matrix Individual growth targets replaced by overall growth in EPS target Avg target Business targets Key figures 2004 2005/06 Property & Casualty Combined ratio 98.4% 96% Life & Health Return on operating revenues 9.1% 9% Financial Services Premium business, traditional: Combined ratio 92
Slide 17: Conclusions
ab Conclusions Swiss Re has the financial strength, product knowledge and people skills to realise today’s market opportunities Risk continues to be a growth industry, particularly in emerging Asian markets, capturing above-GDP growth and profiting from emergence of new risks Swiss Re successf
Slide 18: Operating environment: Regulatory developments continue at pace
Operating environment: ab Regulatory developments continue at pace EU Reinsurance Directive likely to be finalised in 2005 – solvency basis for life reinsurers consistent with direct P&C basis Solvency II – target capital set by management and reviewed by regulator – UK anticipating regime in 20