Swiss Re Ag · SIX:SREN

Swiss Re — FY2012 Earnings Presentation

20 slides from Swiss Re's earnings presentation, Mar 15, 2013

  1. Slide 1: Annual EVM results 2012

    a Annual EVM results 2012 Zurich, 15 March 2013

  2. Slide 2: EVM methodology

    EVM methodology a  An integrated economic valuation and  Key features accounting framework for business – Market consistent valuation of all planning, pricing, reserving, steering assets and liabilities – Shows direct connection between – Exclusion of potential future new risk-taking and value cre

  3. Slide 3: 2012 EVM Financial Highlights

    2012 EVM Financial Highlights Excellent performance with contributions from all business units and strong investment result a  Significant 29% increase in EVM premiums and fees, USD 31.7bn  EVM profit USD 4.2bn – Strong new business profit of USD 2.0bn, driven by excellent underlying business perf

  4. Slide 4: EVM key figures

    EVM key figures a Corporate Group Total Total USD million, unless otherwise stated P&C Re L&H Re Solutions Admin Re® items FY 2012 FY 2011  Premiums and fees 14 562 14 301 2 465 379 - 31 707 24 619  EVM income 3 261 880 471 621 -15 5 218 797  EVM profit (loss) 2 588 1 017 292 112 143 4 152 -1 704

  5. Slide 5: P&C Reinsurance

    P&C Reinsurance Strong new business performance and favourable prior-year claims development a PV new business premiums EVM profit Profit margin new business and fees USD m underwriting USD m % +15% +9.3pts 14 562 12 650 17.3% 2 588 8.0% -349 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012  Growth

  6. Slide 6: L&H Reinsurance

    L&H Reinsurance New business volumes and profit strongly increased a PV new business premiums EVM profit Profit margin new business and fees USD m underwriting USD m % +64% +6.7pts 14 301 10.4% 8 737 1 017 3.7% 80 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012  Increase in premiums and fees  New

  7. Slide 7: Corporate Solutions

    Corporate Solutions Profitable growth a PV new business premiums EVM profit Profit margin new business and fees USD m underwriting USD m +18% % +7.5pts 2 465 7.2% 2 085 292 -0.3% 2 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012  Continued growth in-line with  New business profit USD 97m  Profit

  8. Slide 8: Admin Re®

    Admin Re® EVM profit driven by gain on sale of Admin Re® US and investment result, partially offset by previous years' business loss a PV new business premiums EVM profit Gross cash generation1 and fees USD m USD m USD m -67% +296% 112 1 147 1 196 379 -1 022 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 3

  9. Slide 9: Investment activities

    Investment activities Strong result driven by fixed income gains a Outperformance EVM profit EVM income USD m USD m USD m 4 022 1 614 2 980 -2 478 -843 -1 107 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012  Outperformance primarily driven  Positive result mainly driven by  Represents the total r

  10. Slide 10: Economic net worth (ENW)

    Economic net worth (ENW) EVM income drives strong increase a USD bn 34 -1.1 1.7 33.9 32 5.2 30 28 29.0 -0.9 26 24 22 20 Economic net Changes in EVM EVM income Dividends Other incl. fx on Economic net worth accounting Economic net worth 31 Dec 2011 principles worth 31 Dec 2012  Changes in accounting

  11. Slide 11: Reconciliation EVM Economic Net Worth to US GAAP shareholders' equity

    Reconciliation EVM Economic Net Worth to US GAAP shareholders' equity a Total Corporate (after USD billions P&C Re L&H Re Reinsurance Solutions Admin Re® Group items consolidation) 2012 US GAAP shareholders’ 12.4 8.3 20.7 3.0 6.7 3.6 34.0 equity Discounting 4.4 0.5 4.9 0.4 -2.5 0.0 0.11 M-t-m on ass

  12. Slide 12: Group financial targets

    Group financial targets Well on track a ROE 700 bps above risk free EPS growth 10% average ENW per share growth plus average over 5 years annual growth rate, adjusted dividends 10% avg. annual (2011-2015) for special dividends1 growth rate over 5 years in % in USD2 in USD2 13.4 144.5 11.9 10.1 108.5

  13. Slide 13: Appendix

    a Appendix Annual EVM results 2012 13

  14. Slide 14: EVM segmental income statement 2012

    EVM segmental income statement 2012 a Corporate USD millions P&C Re L&H Re Reinsurance Solutions Admin Re® Group items Total Underwriting result New business result Premium and fees 14 562 14 301 28 863 2 465 379 31 707 Claims and benefits -8 691 -10 969 -19 660 -1 444 -350 - 21 454 Commissions -2 7

  15. Slide 15: EVM balance sheet 2012

    EVM balance sheet 2012 a Corporate Consoli- 31 December 2012, USD millions P&C Re L&H Re Reinsurance Solutions Admin Re® Group items dation Total Assets Investments 57 293 39 724 97 017 6 835 56 864 7 342 -7 252 160 806 Cash and cash equivalents 6 905 1 412 8 317 978 1 472 71 10 838 In-force busines

  16. Slide 16: MCEV and EVM 2012 comparison

    MCEV and EVM 2012 comparison MCEV recognises higher value than EVM a USD bn 45 0.7 0.4 40 5.7 40.7 35 30 33.9 25 20 Economic net Differences Differences Differences MCEV worth Life business Non-Life other 31 Dec 2012 31 Dec 2012 business (estimate)  In line with MCEV guidelines, swap yield curves a

  17. Slide 17: EVM developments in 2012 and 2013

    EVM developments in 2012 and 2013 a 2012 2013  EVM segment reporting has been  The method to calculate taxes will be aligned with US GAAP reporting, changed and aligned to the current SII reflecting the new Group structure guidance; the new approach will be based on US GAAP taxes plus  Swiss Re i

  18. Slide 18: Corporate calendar & contacts

    Corporate calendar & contacts a Corporate calendar 18 March 2013 AGM Briefing Call Conference call 10 April 2013 149th Annual General Meeting Zurich 02 May 2013 First Quarter 2013 results Conference call 24 June 2013 Investors' Day Zurich 08 August 2013 Second Quarter 2013 results Conference call 07

  19. Slide 19: Cautionary note on non-GAAP financial measures

    Cautionary note on non-GAAP financial measures a This presentation includes information on Economic Value Management (“EVM”) which contains non-GAAP financial measures. EVM is not based on US GAAP, which are the principles in accordance with which Swiss Re prepares its financial statements, and shou

  20. Slide 20: Cautionary note on forward-looking statements

    Cautionary note on forward-looking statements a 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

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