Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — Zurich Financial Services — UBS Conference 2008
13 slides from Zurich Insurance's conference presentation, Jun 27, 2008
Slide 1: UBS Conference - Is there really an advantage in being global?
UBS Conference - Is there really an advantage in being global? Inga Beale London, June 27, 2008
Slide 2: Disclaimer and cautionary statement
Disclaimer and cautionary statement Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted prof
Slide 3: What does 'Global' mean?
What does ‘Global’ mean? • Does global footprint define a company as being global…or is it more? • Can a company be global if it operates in a single country or region? • Does global consistency mean global advantage? • Which is superior global or local? • How does economic globalization impact the
Slide 4: A global organization – the textbook view
A global organization – the textbook view Advantages …and potential pitfalls Strategic - competitive advantage …diseconomies of scale - scale and influence …cultural arrogance Efficiency - scalability through …lack of flexibility standardization …diseconomies of scale - economies of scale, fixed, …d
Slide 5: Global trends impacting the insurance industry and their implications
Global trends impacting the insurance industry and their implications Global Trends Implications Rules The Rise of the Global Titans Industry consolidation will increase scale of fewer global insurers of the Game The New Investors Underperformance will not be tolerated by new breed of investors Incr
Slide 6: Our strategy leverages our global position and improves customer experience
Our strategy leverages our global position and improves customer experience Global Advantage Capital Operational ROE Profitable Transformation Margin 16%1 Volume Growth Customer Experience 1 Business operating profit (after tax) return on common shareholders’ equity © Zurich Financial Services - UBS
Slide 7: Group capital efficiency: diversification benefits of our global book
Group capital efficiency: diversification benefits of our global book Group diversification benefits are significant Diversification benefit within GI and Global Life 100% Diversification benefit between GI and Global Life 41% General 75% Insurance sum of 59% 54% BUs 5% General 40% Insurance stand-
Slide 8: Zurich applies a differentiated focus to unlock and grow business value
Zurich applies a differentiated focus to unlock and grow business value Global IB Focus on volume growth Farmers Life EGI Legend for GI BDs IB International GC Businesses EGI Europe General Insurance NAC GC Global Corporate NAC North America Commercial Focus on margin enhancement © Zurich Financial
Slide 9: We take a global approach to our key life distribution channels and propositions
We take a global approach to our key life distribution channels and propositions Global distribution Global propositions • A global channels approach to distribution will drive excellence Private Banking Clients in channel International / Expats Countries management • Selected Corporate Life Bancass
Slide 10: Zurich General Insurance operating model leverages global operations for local delivery
Zurich General Insurance operating model leverages global operations for local delivery General insurance Global global functions Global Risk Underwriting Engineering Market facing business divisions Global Corporate North Europe Inter- America General national Commercial Insurance Businesses Group
Slide 11: Group operating efficiency: Regional platforms
Group operating efficiency: Regional platforms • Zurich has already implemented radical steps to optimize its capital pooling in Europe, and there is more to come. • The use of Zurich Ireland as the one regulated entity for all EEA related general insurance businesses is efficient in terms of capita
Slide 12: The Zurich Way initiatives – 2008 target
The Zurich Way initiatives – 2008 target by function by business USD 800m division USD 800m USD 700m USD 700m Growth/ 32% Distribution Europe General 21% 35% Insurance 31% USD 500m USD 500m 16% 36% 17% Claims 18% North America 22% 34% Commercial 16% 28% 43% Global 34% U/W 20% 17% Corporate 36% 15% 1
Slide 13: A track record of performance improvements
A track record of performance improvements Business Operating Profit BOPaT-ROE1 in USD millions 2 20% 19.5% 18.7% 7'000 6'614 6'0352 6'000 15% 13.6% 12.6%2 5'000 3'947 9.8% 4'000 10% 2'988 2 3'000 2'316 5.1% 2'000 5% 1'175 1'000 0 0% 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Shareh