Swiss Re Ag · SIX:SREN

Swiss Re — Bank am Bellevue meets management (January 2006)

20 slides from Swiss Re's conference presentation, Jan 12, 2006

  1. Slide 1: The right business mix for 2006

    ab The right business mix for 2006 Ann Godbehere Chief Financial Officer Bank am Bellevue meets management Zurich, 12 January 2006 ab Agenda „ Market environment „ Swiss Re’s strategic priorities „ Nat cat reinsurance after Katrina „ Renewals 2006 Bank am Bellevue Ann Godbehere Zurich, 12 January 20

  2. Slide 2: Changing risk landscape creates opportunities for strong players

    Changing risk landscape creates ab opportunities for strong players 5 major hurricanes in 2005, including highest insured loss ever 2 major storms and floods in Europe in 2005 Major typhoons in 2004 Tsunami in 2004 4 major hurricanes in 2004 Pharma claims Financial Institutions Bank am Bellevue D&O

  3. Slide 3: Swiss Re's strategic priorities

    ab Swiss Re’s strategic priorities Actively manage the cycle for profits Actively manage Optimise organic Extend leadership Accelerate the the cycle for and transactional in Asia balance sheet profits growth Products Client Markets Financial Services Slide 5 Swiss Re’s successful approach to ab non-

  4. Slide 4: Pre-Katrina prices were at high levels but declining

    Pre-Katrina prices were at high ab levels but declining „ Lloyds’ indices indicate prices at Lloyds’ premium rates (Index, 1994=100) attractive levels but decreasing 140 pre-Katrina 130 „ Katrina will 120 cause rates to stabilise/rebound 110 100 90 80 70 60 50 40 1990 93 96 99 02 05 Bank am Bellevue

  5. Slide 5: Acquisition of GEIS: key rationale for transaction

    ab Swiss Re’s strategic priorities Optimise organic and transactional growth Actively manage Optimise organic Extend leadership Accelerate the the cycle for and transactional in Asia balance sheet profits growth Products Client Markets Financial Services Slide 9 ab Acquisition of GEIS Key rationale

  6. Slide 6: Acquisition of GEIS: attractive and complementary businesses

    ab Acquisition of GEIS Attractive and complementary businesses GE Insurance Solutions P&C Reinsurance Primary Commercial Ins. L&H Reinsurance NPE 2004 (USD): 3.8bn(1) NPE 2004 (USD): 1.2bn(1) NPE 2004 (USD): 1.2bn(1) Headcount: 701(2) Headcount: 560(2) Headcount: 214(2) „ Strong US regional and „ Di

  7. Slide 7: Acquisition of GEIS: powerful business fit in Europe and Asia

    ab Acquisition of GEIS Powerful business fit in Europe and Asia Swiss Re (GPW) GE Insurance Solutions Europe „ GE Insurance Solutions Continental Europe (excl. GER, UK) P&C portfolio brings new products and client + 10%(1) relationships to Swiss Re’s portfolio CHF 6.5bn Germany „ Addition of strong

  8. Slide 8: Extend leadership in Asia

    ab Swiss Re’s strategic priorities Extend leadership in Asia Actively manage Optimise organic Extend leadership Accelerate the the cycle for and transactional in Asia balance sheet profits growth Products Client Markets Financial Services Slide 15 Asian economies will see strong ab sustained growth

  9. Slide 9: Asia will experience increasing insurance demand

    Asia will experience increasing ab insurance demand Economic growth Real premium index (1990=100) (4% above industrialised economies 1990-2005) 500 Increased stability 450 (attracting 23% of world 400 Foreign Direct Investment) 350 300 250 Demographics 200 (60% of world population) 150 100 50 Global

  10. Slide 10: Swiss Re has an already strong position in Asia

    Swiss Re has the advantage of ab an already strong position in Asia Swiss Re premiums in Asia (2004) No. 1 or 2 in Asia’s two largest markets: Total CHF 2.5 billion Australia & Japan; and in all key Asian markets 17% Emerging Asia already comprises half of Swiss Re’s P&C premiums and one-third of L&

  11. Slide 11: Asia will become a major contributor to Swiss Re's revenues

    Asia will become a major ab contributor to Swiss Re’s revenues Swiss Re premiums in Asia : Property & Casualty 11% (CAGR 05-10E) Life & Health 19% Combined 13% 50 Reinsurance market premiums (USD billions) 40 30 33.2 20 CAGR 8.8% 11.6 13.1 10 10.3 CAGR 4.3% 11.0 6.0 6.7 6.9 0 Bank am Bellevue 2002 2

  12. Slide 12: Outlook on a new insurance business model

    Outlook on a new insurance ab business model Reinsurers are positioned to play a leading role in securitising insurance risk New reinsurance model Insurer A „ Reinsurers already act as aggregators of risk portfolios Insurer B „ Reinsurers offer the benefits of scale Capital and expertise to securiti

  13. Slide 13: Benefits of peak risk protection

    ab Benefits of peak risk protection Risk The transfer of peak risks to capital markets enables the insurance industry to better withstand large events, i.e. volatility is reduced as large claims are spread over many capital markets participants „ Catastrophe bonds (cat bonds) provide protection for

  14. Slide 14: Large well diversified balance sheets designed to handle large events

    ab Agenda „ Market environment „ Swiss Re’s strategic priorities „ Nat cat reinsurance after Katrina „ Renewals 2006 Bank am Bellevue Ann Godbehere Zurich, 12 January 2006 Slide 27 After Katrina, Rita and Wilma ab Large well diversified balance sheets designed to handle large events Market capitalis

  15. Slide 15: More hurricanes striking US mainland

    ab More hurricanes striking US mainland… Number of hurricanes making US landfall (per year, 1900-2005) 7 6 1943 – 69 average: 2.0 1970 – 94 average: 1.2 5 1995 – 05 average: 2.2 4 3 2 1 0 Bank am Bellevue 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Ann Godbehere Zurich, 12 January 2006 Hu

  16. Slide 16: Swiss Re's view on nat cat

    How will the insurance industry ab and its environment react? Rating agencies „ Taking exposure instead of premiums as reference for catastrophe increases the need for capital in primary insurance „ Wave of downgrades hit the industry after Katrina Modelling firms „ Models published and announced wi

  17. Slide 17: Renewals 2006: industry perspective

    ab Agenda „ Market environment „ Swiss Re’s strategic priorities „ Nat cat reinsurance after Katrina „ Renewals 2006 Bank am Bellevue Ann Godbehere Zurich, 12 January 2006 Slide 33 ab Renewals 2006 Industry perspective „ Underwriting conditions remain attractive „ Competition on price rather than wo

  18. Slide 18: Renewals 2006: Swiss Re's perspective

    ab Renewals 2006 Swiss Re’s perspective „ Continued focus on economic profit after cost of capital rather than volume „ Continued firm stance on terms and conditions „ Pricing levels remain above cycle reference premium and are pushing upwards in some segments „ Swiss Re’s rapid pricing model revisi

  19. Slide 19: Corporate calendar & contacts

    ab Corporate calendar & contacts 14 February 2006 January 2006 non-life renewals, Conf. call 27 February 2006 Extraordinary General Meeting 2 March 2006 Annual results 2005, Analysts’ meeting 11 April 2006 Life & Health embedded value 2005 21 April 2006 142th Annual General Meeting 4 August 2006 Int

  20. Slide 20: Disclaimer

    ab Disclaimer No statements made herein regarding earnings enhancements or otherwise are profit forecasts, and no statements made herein should be interpreted to mean that Swiss Re’s earnings or earnings per share for 2006, 2007 or any subsequent period will necessarily match or exceed the historica

Swiss Re — Bank am Bellevue meets management (January 2006) on 6ix