Swiss Re Ag · SIX:SREN
Swiss Re — Baader Helvea Swiss Equities Conference 2017
26 slides from Swiss Re's conference presentation, Jan 13, 2017
Slide 1: Swiss Re's differentiation approach drives performance
Swiss Re’s differentiation approach drives performance Baader Helvea Swiss Equities Conference, 13 January 2017 Gerhard Lohmann, Chief Financial Officer Reinsurance
Slide 2: Today's agenda
Today’s agenda Business update 3 Deep dive on Reinsurance 8 Capital management 17 Swiss Equities Conference, Bad Ragaz | 13 January 2017 2
Slide 3: Business update
Business update Swiss Equities Conference, Bad Ragaz | 13 January 2017 3
Slide 4: Swiss Re is well diversified across geographic regions and business segments
Swiss Re is well diversified across geographic regions and business segments Net premiums earned1 Economic Net Worth3 by region (in USD bn, 2015) by business segment (in %, 2015) 13.2 10.3 6.7 Corporate Solutions 9% Life Capital 11% P&C Re 49% Americas Europe Asia (incl. Middle East /Africa) 44% 34%
Slide 5: In the currently challenging environment we see attractive long-term opportunities
In the currently challenging environment we see attractive long- term opportunities Key challenges Long-term opportunities • Soft market in the P&C world • Growing risk pools (GDP growth and – demand/supply imbalance demographic trends) – industry consolidation • High Growth Markets • Interest rates
Slide 6: Strong results in the first nine months of 2016 demonstrate Swiss Re's resilience
Strong results in the first nine months of 2016 demonstrate Swiss Re’s resilience to the market environment Solid Group ROE in current market 11.6% ROE Risk-adjusted price quality Reduction in flow business & growth in large transactions maintained at 102%1 Strong investment performance from Asset M
Slide 7: With our strategic framework, Swiss Re is well placed to face the industry challenges
With our strategic framework, Swiss Re is well placed to face the industry challenges and seize opportunities Swiss Re’s strategic framework Near-term priorities I systematically allocate capital to risk pools / Large & tailored transactions revenue streams Growth Corporate Solutions through systema
Slide 8: Deep dive on Reinsurance
Deep dive on Reinsurance Swiss Equities Conference, Bad Ragaz | 13 January 2017 8
Slide 9: Swiss Re's largest Business Unit continues to deliver strong results
Swiss Re’s largest Business Unit continues to deliver strong results in a challenging environment • Differentiation is at the core of our strategy and Return on Equity delivers financial results in % P&C Re L&H Re • Our differentiation approach continues to show a 26.0 26.7 22.4 high level of client
Slide 10: Differentiation is at the core of our strategy
Differentiation is at the core of our strategy, combining tailored offering with unique interaction Client segmentation and tailored offering Unique client interaction Client example Global client Americas APAC EMEA Swiss Re • Segmentation based on buying preferences addresses • More than 11 600 dis
Slide 11: Differentiation approach has enabled higher margins and outperformance
Swiss Re’s differentiation approach has enabled the Group to generate higher margins and outperform Net operating margin (NOM)1 2012 – 9M 2016 NOM – Split by components – Avg. 2012-9M 2016 20% 17% 13% 15% 10% 26% 19% 5% -6% -9% 0% 2012 2013 2014 2015 9M 2016 Swiss Re Reinsurers 2 Swiss Re Reinsurers
Slide 12: Technology is an enabler for differentiated solutions and provides tangible benefits
Technology is an enabler for differentiated solutions and provides tangible benefits Technology solutions are being developed across lines of business and the value chain Product Design Distribution & Sales Underwriting Business Management Claims • Leveraging technology to better understand risks, i
Slide 13: Transactions are a strong differentiator, offering a profitable opportunity for growth
Transactions are a strong differentiator, offering a profitable opportunity for growth Development of transactions1 • EVM underwriting profit from transactions EVM underwriting profit in USD bn substantially increased over the past 6 years All figures as priced • In 2015, 35% of total EVM new busine
Slide 14: In P&C Reinsurance we manage our capacity according to price adequacy
In P&C Reinsurance we manage our capacity according to developments in the price adequacy 6-year comparison of Nat Cat Capacity and LTPA Tropical Cyclone North Atlantic Earthquake California 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Windstorm Europe Earthquake Japan 2011 2012 2013
Slide 15: L&H Reinsurance remains strategically attractive and delivers returns in line with target
L&H Reinsurance remains strategically attractive for Swiss Re and delivers returns in line with our target Swiss Re L&H Re net income and ROE • Significant management actions in 2014 set the 300 20% foundation for profitable growth • Since the beginning of 2015 the segment 250 shows strong underlyin
Slide 16: Our expansion in High Growth Markets is focused on sustainable growth
Our expansion in High Growth Markets is focused on sustainable growth Premium development in HGM1 • Growth trend despite adverse fx development US GAAP Gross Earned Premiums (USD bn) while maintaining disciplined underwriting • Diversified portfolio across focus markets and 6 product themes 5 +17% •
Slide 17: Capital management
Capital management Swiss Equities Conference, Bad Ragaz | 13 January 2017 17
Slide 18: We target an optimal risk portfolio to balance short-term considerations with long-term value
We target an optimal risk portfolio to balance short-term considerations with creating long-term shareholder value Swiss Re applies a holistic capital allocation approach… Strategic Capital Business Performance ambition allocation planning assessment …to systematically deploy capital to risk pools L
Slide 19: Business Unit structure and capital allocation have supported strong value generation and dividends
Our Business Unit structure and our capital allocation have supported a strong value generation and flow of dividends 2012 – 2016: • We aim to maximise USD 13.2bn3 distribution shareholder value to shareholders Avg. ordinary • Utilised funds in Avg. pay-out ratio1: dividend pay-out 68% different way
Slide 20: SST 2016 and comparable Solvency II ratio show leading capital position
Swiss Re’s SST 2016 and comparable Solvency II ratio show the Group’s leading capital position Solvency II peer comparison (May 2016) • SST and Solvency II are both comprehensive, 312% economic and risk-based solvency regimes • Due to important differences, SST ratio can be significantly lower than
Slide 21: We invest in our financial steering and reporting capabilities
We invest in our financial steering and reporting capabilities to become industry leader in financial management • Optimising processes and increasing standardisation to maximise efficiency • Improving operational risk management through a single source of financial data • Creating innovative multi-
Slide 22: We continue to focus on our over-the-cycle Group and Business Units' targets
We continue to focus on our over-the-cycle Group and Business Units’ targets Group financial performance Return on Equity ENW per share growth2 13.7% 11.6% Rf + 10.0% 10.5% 700 11.6% bps1 4.0% 2014 2015 9M 2016 Over the 2014 2015 Over the cycle cycle Target Target Business Units’ Return on Equity P&
Slide 23: Swiss Re's capital allocation aims to deliver sustainable shareholder value
Swiss Re’s capital allocation aims to deliver sustainable shareholder value Long-term shareholder value …underpinned by our creation… capital management priorities We target a portfolio of asset and liability risks to balance 1 short-term considerations with long-term value creation Ensure superior
Slide 24: Swiss Equities Conference, Bad Ragaz | 13 January 2017
Swiss Equities Conference, Bad Ragaz | 13 January 2017 24
Slide 25: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2017 23 February Annual Results 2016 Conference call 16 March Publication of Annual Report 2016 21 April 153rd Annual General Meeting Zurich Investor Relations contacts Hotline E-mail +41 43 285 4444 [email protected] Philippe Brahin Jutt
Slide 26: 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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