Swiss Re Ag · SIX:SREN

Swiss Re — Merrill Lynch Banking & Insurance Conference 2005

16 slides from Swiss Re's conference presentation, Oct 6, 2005

  1. Slide 1: Swiss Re – Merrill Lynch Banking & Insurance Conference

    ab Swiss Re Ann F. Godbehere Chief Financial Officer Merrill Lynch Banking & Insurance Conference London, 6 October 2005 ab Agenda „ Introduction „ Link from Swiss Re’s vision to its targets: Swiss Re’s four strategic priorities „ Natural catastrophes „ Conclusions „ Q&A „ Appendix Merrill Lynch Ban

  2. Slide 2: Swiss Re at a glance; Target matrix and 1H2005 results

    ab Swiss Re at a glance „ Founded in 1863 and developed into one of the world’s largest and globally active multi-line reinsurers „ Wholesale manager of capital and risk focused on reinsurance and related trading activities „ Strong financial position in the industry with AA rating „ Global leadersh

  3. Slide 3: Making strategy work

    ab Agenda „ Introduction „ Link from Swiss Re’s vision to its targets: Swiss Re’s four strategic priorities „ Natural catastrophes „ Conclusions „ Q&A „ Appendix Merrill Lynch Banking & Insurance Conf. London, 6 October 2005 Slide 5 ab “Making strategy work” Organisational Vision 2015 Four strategic

  4. Slide 4: From a vision to targets

    ab From a vision to targets Insurance industry scenarios 2015 Growth Margin „ Risk transfer markets to „ Continuation of business show growth above GDP, say cycles 6% pa nominal „ Low investment return „ Accelerate process of environment industry consolidation / Enabling strategy „ Securitisation of

  5. Slide 5: Active cycle management

    Active cycle management ab Swiss Re directs capital to attractive non-life opportunities Each line of business and geography show its own cycle and pattern Illustrative „ Nat cat „ USA „ Property „ Europe „ Liability Technical profitability „ Special lines „ Asia „ Industry sectors Merrill Lynch Ban

  6. Slide 6: Swiss Re's way to tackle non-life cycles

    Swiss Re’s way to tackle ab non-life cycles Geographic split 2004* 13% „ Being optimally diversified to – benefit from different product and geographic cycles 52% 35% – allocate capital where business (life vs non-life) generates best returns for shareholders North America Europe „ Having tools in p

  7. Slide 7: Asia as a growth market; Accelerate the balance sheet

    ab Asia as a growth market Premiums per GDP, life and non-life, 2003 „ Step change in 12% demand function. When GDP per 10% capita gets close to United States USD 10 000, 8% insurance penetration rises to Germany 6% a level above 4% Malaysia Spain with a steep slope Czech Republic 4% „ We have a str

  8. Slide 8: Organisation aligned to strategic priorities

    Organisation aligned to strategic ab priorities effective as per 12 Sept 2005 Growth Asia Accelerate the balance Cycle management sheet Products Client Markets Financial Services (S. Lippe) (M. Liès) (J. Fitzpatrick) „ Optimise capital „ Link client segmentation to cycle „ Continuous allocation base

  9. Slide 9: Rising weather related natural catastrophe loss trends

    Rising weather related natural ab catastrophe loss trends Weather related* nat cat insured losses 1970 – 2004 (property and business interruption) USD bn, at 2004 prices 40 35 30 25 20 ø USD 16.7bn 15 10 ø USD 2.3bn ø USD 4.7bn 5 Merrill Lynch 0 Banking & Insurance Conf. 1970 1975 1980 1985 1990 199

  10. Slide 10: Global frequency of events will impact reinsurance rates

    Global frequency of events will ab impact reinsurance rates Countries affect. by floods 6 of the 20 costliest Nat Cat Major events in 2005: Countries affect. by storms events ever occurred in 2004: events in 2004 „ Hurricanes Ivan, Charley, „ Hurricanes Rita, Katrina, Dennis events in 2005 Frances,

  11. Slide 11: Current expectations for January 2006 renewals

    ab Agenda „ Introduction „ Link from Swiss Re’s vision to its targets: Swiss Re’s four strategic priorities „ Natural catastrophes „ Conclusions „ Q&A „ Appendix Merrill Lynch Banking & Insurance Conf. London, 6 October 2005 Slide 21 Current expectations for January ab 2006 renewals „ Experienced na

  12. Slide 12: Conclusions

    ab Conclusions „ Nat cat events, mortality and other insurance risks not correlated with financial markets, Swiss Re - as a pure reinsurer – provides diversification to investors „ Business sector has a long track record of GDP+ growth; Asia creates new momentum „ Swiss Re focuses on delivering abov

  13. Slide 13: Swiss Re's history

    ab Appendix Merrill Lynch Banking & Insurance Conf. London, 6 October 2005 Slide 25 ab Swiss Re’s history 1863 Foundation of the company 1864 Business relations in 7 countries (Germany, Italy, France, Austria, England, Belgium and Russia) 1906 San Francisco Earthquake, Swiss Re establishes its reput

  14. Slide 14: Scenarios 2015: Growth

    Scenarios 2015: ab Growth Insurance industry Consequences for Swiss Re „ Retail and wholesale risk transfer markets „ Business focus continues to be on wholesale continue to show growth financial services above GDP, say 6% pa nominal „ Grow market share 1% over the cycle „ World insurance to grow fr

  15. Slide 15: Scenarios 2015: Enabling strategy

    Scenarios 2015: ab Enabling strategy Insurance industry Consequences for Swiss Re „ Distribution channels for reinsurance „ Swiss Re to develop multi-channel access continue to be a mix of direct and to risk broker as today „ Continue to strengthen direct client franchise, e-solutions and broker rel

  16. Slide 16: World-wide ILS outstanding: Life and catastrophic events

    World-wide ILS outstanding: ab Life and catastrophic events USD millions 18 000 16 000 15 363 14 000 12 781 12 000 10 850 10 000 12 145 8 000 7 178 6 408 9 724 5 857 6 000 3 080 5 408 4 000 3 552 2 166 1 921 1 648 4 442 2 000 879 319 951 3 057 3 219 2 795 1 330 1 216 1 632 1 771 879 Merrill Lynch 0

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