Swiss Re AG · SIX:SREN
Swiss Re — Deutsche Bank dbAccess German, Swiss & Austrian Conference 2014
31 slides from Swiss Re's conference presentation, Jun 12, 2014
Slide 1: Deutsche Bank dbAccess German, Swiss & Austrian Conference
Deutsche Bank dbAccess German, Swiss & Austrian Conference Michel M. Liès, Group Chief Executive Officer Berlin, 12 June 2014
Slide 2: Agenda
Agenda Michel M. Liès Introduction to Swiss Re Group Chief Executive Officer High growth markets Protection gaps Conclusion 2 Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 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 • This track record provides Swiss Re with preferential access
Slide 4: Swiss Re's Group strategy
Swiss Re's Group strategy Outperform our peers Strategic goal: • Reinsurance • Asset Management The leading • Admin Re® player in the Current wholesale position Smart expansion re/insurance • Corporate Solutions industry • Longevity & Health • High Growth Markets Deutsche Bank dbAccess | German, Swi
Slide 5: Swiss Re Group and its Business Units
Swiss Re Group and its Business Units Swiss Re Group Corporate Reinsurance Admin Re® Solutions P&C L&H Strategic goal Strategic goal Strategic goal • To be a focused, lean, • To be a recognised • To be the world's global player in large force in the closed life leading reinsurer commercial business
Slide 6: Swiss Re is broadly diversified by geography and product line
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 7: 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 (red = loss) • Average share of profit is well above share
Slide 8: Agenda
Agenda Michel M. Liès Introduction to Swiss Re Group Chief Executive Officer High growth markets Protection gaps Conclusion 8 Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014 8
Slide 9: Economic growth picking up in the world…
Economic growth picking up in the world… …but at different speeds 10% Real GDP growth 8% 6% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015* -2% -4% -6% High growth markets Developed markets World * Expected Source: Swiss Re Economic Research & Consulting De
Slide 10: Three of the world's five largest economies…
Three of the world’s five largest economies… …will be in Asia by 2023 120 Australia 100 GDP per capita in 2023 (USD thousand) Singapore 80 Hong Kong Japan 60 South Korea 40 Taiwan Malaysia 20 China Thailand Indonesia Philippines Vietnam India 0 (20) 1% 2% 3% 4% 5% 6% 7% 8% 9% Real GDP growth (2013-2
Slide 11: Economic growth in Emerging Asia…
Economic growth in Emerging Asia… …will drive insurance demand Share of global GDP 100% Global GDP share of Developed markets 80% emerging CEE 60% Asia reaches 25% in 2020 Africa 40% Latin America 20% Middle East 20.3% 25.3% 7.0% 8.7% 14.8% Emerging Asia 0% 2000 2005 2010 2015F 2020F Share of global
Slide 12: The 2012 S-curve for non-life insurance
The 2012 S-curve for non-life insurance Relationship between GDP and insurance penetration Insurance Direct penetration premiums as a % of GDP, 2010 (premiums as a % of GDP) 6% 5% United States Switzerland 4% Germany France 3% South Africa 2% Kenya Brazil China Russia 1% Zambia Angola India Tanzania
Slide 13: The 2012 S-curve for life insurance
The 2012 S-curve for life insurance Relationship between GDP and insurance penetration Insurance penetration Direct premiums as a % of GDP, 2009 (premiums as a % of GDP) 6% France Switzerland 5% 4% United States 3% India Germany 2% Brazil China 1% Kenya Mexico Zambia 0% Tanzania Nigeria Angola Russi
Slide 14: Structural change in insurance markets since 1962
Structural change in insurance markets since 1962 % of global non-life premiums % of global life premiums 100% 4% 4% 5% 3% 3% 5% 3% 13% 5% 4% 13% 90% 8% 11% 9% 5% 23% 4% 6% 80% 22% 30% 28% 11% 11% 8% 70% 30% 28% 30% 10% 60% 23% 30% 24% 50% 26% 33% 40% 33% 74% 70% 28% 30% 57% 52% 20% 41% 43% 36% 33%
Slide 15: 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 e.g. with local market reinsurers • Corporate Solutions: organic growth, new offices, acquisitions • Lines of business with particular HGM angle: –
Slide 16: Agenda
Agenda Michel M. Liès Introduction to Swiss Re Group Chief Executive Officer High growth markets Protection gaps Conclusion 16 Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014 16
Slide 17: Natural catastrophe protection gap
Natural catastrophe protection gap Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014 17
Slide 18: Large protection gap
Large protection gap Insured vs total 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 Uninsured lo
Slide 19: Demand for natural catastrophe capacity to increase…
Demand for natural catastrophe capacity to increase… …everywhere, but even faster in the High Growth Markets 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 y
Slide 20: Demand for natural catastrophe re/insurance increases with rising value concentration
Demand for natural catastrophe re/insurance increases with rising value concentration River flood exposure and storm surge exposure in China's Pearl River Delta Source: Swiss Re GEO Services Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014 20
Slide 21: Non-life insurance
Non-life insurance Emerging Markets with strongest growth rates, but growth everywhere Real premium growth rate for non-life • Non-life premium growth is insurance by region, 2010 to 2015F expected to remain stable at 25% around 8% in 2014 – emerging Asia will maintain 20% stable strong growth at ab
Slide 22: Large mortality protection gap
Large mortality protection gap Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014 22
Slide 23: The mortality protection gap is defined as…
The mortality protection gap is defined as… … the difference between the protection needed and the protection in- place to maintain dependents living standards following the death of the primary breadwinner Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014 23
Slide 24: Life insurance opportunities – closing the mortality protection gap
Life insurance opportunities – eg closing the mortality protection gap Asia - Pacific Mortality protection gap per working person with dependents in USDk 300 250 200 150 100 50 0 South Korea Vietnam Japan India Thailand Australia Hong Kong Taiwan Indonesia Singapore China Malaysia Source: Swiss Re A
Slide 25: Life insurance
Life insurance Emerging Markets with strongest growth rates 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% in 10% 2013, supported by – a further recovery of
Slide 26: Agenda
Agenda Michel M. Liès Introduction to Swiss Re Group Chief Executive Officer High growth markets Protection gaps Conclusion 26 Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014 26
Slide 27: Priorities for 2014
Priorities for 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 portfolio managem
Slide 28: 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 29: Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014
Deutsche Bank dbAccess | German, Swiss & Austrian Conference | Berlin, 12 June 2014 29
Slide 30: 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 31: 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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