Swiss Re Ag · SIX:SREN
Swiss Re — Vontobel Summer Conference 2014
28 slides from Swiss Re's conference presentation, Jun 11, 2014
Slide 1: Vontobel Summer Conference
Vontobel Summer Conference Matthias Weber, Group Chief Underwriting Officer Interlaken, 11 June 2014
Slide 2: Agenda
Agenda Introduction to Swiss Re Drivers of outperformance Growth opportunities Outlook and Q&A 2 Vontobel | Summer Conference | 11 June 2014 2
Slide 3: Differentiated through history
Differentiated through history Swiss Re is a global operator, with over 60 offices in more than 20 countries Swiss Re has both a superior capital rating1 and 150 years of experience in providing reinsurance solutions for our clients A long history of paying claims is valued by clients; during
Slide 4: Swiss Re is broadly diversified
Swiss Re is broadly diversified By geography and product line Net premiums earned1 2013 (USD 28.8 bn) by region (in USD bn) … and by business segment: 11.5 11.3 6.0 Admin Re® Corporate 5% Solutions 10% P&C Re 50% Americas Europe Asia L&H Re (incl. Middle East /Africa) 35% 40% 39% 21% Swiss Re benefi
Slide 5: P&C Reinsurance: 2014 renewals
P&C Reinsurance: 2014 renewals Overall price quality remains at an attractive level January 2014 treaty renewals1 -2% YTD 2014 renewals (January – April) USD 9.8bn USD 9.6bn Treaty portfolio volume Up for renewal Estimated USD 11.2bn USD 11.2bn 1 Jan 2014 outcome April 2014 treaty renewals +14% USD
Slide 6: P&C Reinsurance: 2014 renewals
P&C Reinsurance: 2014 renewals Portfolio weighting by line of business and region Gross premium volume, treaty portfolio Up for renewal YTD April Estimated outcome YTD April By line of business 13% 13% Casualty 34% 43% Nat Cat 25% 19% Property 1 Specialty 1 28% 25% By region 29% 45% 32% 46% EMEA Ame
Slide 7: Group financial targets
Group financial targets On track ROE 700 bps above risk free EPS growth 10% average ENW per share growth plus average over 5 years (2011- annual growth rate, adjusted dividends 10% avg. annual 2015) for special dividends1 growth rate over 5 years in % in USD2 in USD2 144.5 14.9 13.0 11.9 123.1 13.4
Slide 8: Agenda
Agenda Introduction to Swiss Re Drivers of outperformance Growth opportunities Outlook and Q&A 8 Vontobel | Summer Conference | 11 June 2014 8
Slide 9: Swiss Re's strength in underwriting
Swiss Re's strength in underwriting P&C premium and underwriting profit comparison Swiss Re’s P&C premium and underwriting profit share vs top reinsurers 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 Premiums U/W profit (turquoise = loss) In 2011, the u/w result was highly negat
Slide 10: Strategic underwriting priorities
Strategic underwriting priorities Build sustainable competitive advantage Portfolio steering Steer risk to maximise absolute economic profit, subject to risk appetite, regulatory and balance sheet restrictions Risk selection Outperform in an inefficient and in- transparent market Innovation, large a
Slide 11: Differentiated through knowledge, expertise and solutions
Differentiated through knowledge, expertise and solutions Global Claims and Underwriting Manuals – Global Underwriting Manual (Lifeguide) is consistently ranked as the leading underwriting manual world wide, available in 73 countries, in 11 languages and has over 1 million page hits every month –
Slide 12: Agenda
Agenda Introduction to Swiss Re Drivers of outperformance Growth opportunities Outlook and Q&A 12 Vontobel | Summer Conference | 11 June 2014 12
Slide 13: Natural catastrophe protection gap
Natural catastrophe protection gap Vontobel | Summer Conference | 11 June 2014 13
Slide 14: Large protection gap between insured and economic natural catastrophe losses world-wide
Large protection gap between insured and economic natural catastrophe losses world-wide Catastrophe related losses in USD billion, at 2013 prices 450 90% 400 80% 350 70% 300 60% 250 50% 200 40% 150 30% 100 20% 50 10% 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013E Insured losses Uninsured losses
Slide 15: Demand for natural catastrophe capacity will continue to increase
Demand for natural catastrophe capacity will continue to increase Increase in largest industry loss scenarios per region 2012 vs. 2020E EQ: Earthquake (500 yrs) TC/WS: Tropical Cyclones/Winter Storms (100 yrs); TC includes storm surge FL: River Flood (250 yrs) Demand for nat cat insurance expected
Slide 16: Urbanisation trends and infrastructure growth
Urbanisation trends and infrastructure growth Vontobel | Summer Conference | 11 June 2014 16
Slide 17: Urbanisation provides an opportunity: most top megacities in Asia by 2025
Urbanisation provides an opportunity: By 2025, 7 of the world's top 10 megacities will be in Asia Population in millions (2025) Tokyo 38.66 Delhi 32.94 Shanghai 28.40 Mumbai (Bombay) 26.56 Ciudad de México (Mexico City) 24.58 New York-Newark 23.57 São Paulo 23.17 Dhaka 22.91 Beijing 22.63 Karachi 20
Slide 18: Large mortality protection gap
Large mortality protection gap Vontobel | Summer Conference | 11 June 2014 18
Slide 19: The mortality protection gap
The mortality protection gap Life insurance opportunities for closing Mortality protection gap Protection needed Protection Income to maintain living in place standard Net financial assets / savings Relevant life insurance Asia – Pacific: Mortality protection gap per working person with dependents:
Slide 20: High growth markets
High growth markets Vontobel | Summer Conference | 11 June 2014 20
Slide 21: Stabilising growth in non-life
Stabilising growth in non-life High Growth Markets with strongest growth rates Real premium growth rate for non-life insurance by region, 2010 to 2015F 25% Non-life premium growth is expected to 20% remain stable at around 8% in 2014 15% – emerging Asia will 10% maintain stable strong growth at ab
Slide 22: Life insurance in High Growth Markets is improving
Life insurance in High Growth Markets is improving Real premium growth rate for life insurance Real growth of life by region, 2010 to 2015F insurance premiums in 20% emerging markets is 15% expected to accelerate to 8.5% in 2014 from 6.2% 10% in 2013, supported by – a further recovery of China 5%
Slide 23: Actions for profitable growth in the HGMs
Actions for profitable growth in the HGMs Dedicated strategies across all lines of business HGM initiatives Reinsurance: organic growth, partnerships eg with local market reinsurers Corporate Solutions: organic growth, new offices, acquisitions Lines of business with particular HGM angle: – Na
Slide 24: Agenda
Agenda Introduction to Swiss Re Drivers of outperformance Growth opportunities Outlook and Q&A 24 Vontobel | Summer Conference | 11 June 2014 24
Slide 25: Priorities for the Group CEO in 2014
Priorities for the Group CEO in 2014 Focus on strategy execution • Maintain industry leading underwriting track record Group strategy • Productivity emphasis to control management expenses • Continue to re-direct capital and talent to High Growth Markets • P&C Re: strict focus on risk selection and
Slide 26: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 3 July 2014 Investors' Day London 6 August 2014 Second Quarter 2014 results Conference call 7 November 2014 Third Quarter 2014 results Conference call 19 February 2015 Annual Results Conference call Investor Relations contacts Hotline E-mail +41 43 28
Slide 27: Vontobel | Summer Conference | 11 June 2014
Vontobel | Summer Conference | 11 June 2014 27
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