Swiss Re AG · SIX:SREN
Swiss Re — J.P. Morgan European Insurance Conference 2017
24 slides from Swiss Re's conference presentation, May 31, 2017
Slide 1: Differentiation at the core of Swiss Re's strategy
Differentiation at the core of Swiss Re’s strategy J.P. Morgan European Insurance Conference, 31 May 2017 Moses Ojeisekhoba, Chief Executive Officer Reinsurance
Slide 2: Today's agenda
Today’s agenda Swiss Re Group at a glance Reinsurance deep dive: focus on differentiation Q&A J.P. Morgan European Insurance Conference | 31 May 2017 2
Slide 3: 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, 2016) by business segment (in %, 2016) 15.1 10.9 7.2 Corporate Solutions 9% Life Capital 12% P&C Re 45% Americas Europe Asia (incl. Middle East /Africa) 45% 33%
Slide 4: 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 5: As a risk knowledge company, Swiss Re is well placed to invest in risk pools
As a risk knowledge company, Swiss Re is well placed to invest in risk pools Swiss Re’s strategic framework Near-term priorities I systematically allocate capital to risk pools / Large & tailored transactions revenue streams Growth Corporate Solutions through systematic capital II III Life Capital a
Slide 6: Swiss Re's performance and business model enable significant capital distribution
Swiss Re’s performance and business model enable significant capital distribution Dividend flows since new structure in 2012 USD 14.8bn distribution to shareholders1 Swiss Re Ltd PI2 USD 16.7bn3 USD 1.9bn3 USD 2.7bn3 Reinsurance Corporate Solutions Life Capital Swiss Re's capital management prioriti
Slide 7: Both over-the-cycle Group financial targets have been exceeded in 2016
Both over-the-cycle Group financial targets have been exceeded in 2016 Group targets over-the-cycle Group Return on Equity Group ENW per share growth2 13.7% 13.7% 17.0% 10.5% 10.6% 10.0% 11.0% 9.2% 9.3% 9.4% Rf + 10% 7.2%10% 10% 10% 700 5.4% bps1 10% 2013 2014 2015 2016 Over- 2013 2014 2015 2016 Ove
Slide 8: Swiss Re reports a solid first quarter 2017
Swiss Re reports a solid first quarter 2017 • Solid Q1 2017 Group net income of USD 656m after USD 350m expected insurance claims from Cyclone Debbie • P&C Reinsurance net income USD 321m, ROE 10.8%; P&C Reinsurance portfolio remains attractive following April renewals • L&H Reinsurance net income U
Slide 9: Today's agenda
Today’s agenda Swiss Re Group at a glance Reinsurance deep dive: focus on differentiation Q&A J.P. Morgan European Insurance Conference | 31 May 2017 9
Slide 10: Differentiation is at the core of our strategy, combining tailored offering with unique interaction
Differentiation is at the core of our strategy, combining tailored offering with unique interaction Our strategy: Focus to differentiate Unique client interaction Client example Global client Americas APAC EMEA Swiss Re • Right service for right client, based on client • More than 12 414 distinct in
Slide 11: The positive impact of our differentiation strategy is confirmed by client surveys
The positive impact of our differentiation strategy is confirmed by client surveys Client loyalty result development 50 • Net Promoter Score1 NPS1 45 40 From 2011 to 2016, we increased our score 35 from 30 to 47 30 2011 2012 2013 2014 2015 2016 P&C Flaspöhler2 Asia 1 • Flaspöhler (P&C)2 2 EMEA We ar
Slide 12: Reinsurance strategy: focus on differentiation
Reinsurance strategy: focus on differentiation Simplify and drive efficiencies to enable long-term sustainable growth in Core our traditional reinsurance business Engage in a broader strategic dialogue with clients, delivering innovative, Transactions customised deals Add value to clients’ original
Slide 13: In P&C Reinsurance we actively manage the pricing cycle and allocate capacity according to price adequacy
Core Transactions Solutions In P&C Reinsurance we actively manage the pricing cycle and allocate capacity according to 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 Winds
Slide 14: In L&H Reinsurance profitable new business has improved the diversification of our overall portfolio
Core Transactions Solutions In L&H Reinsurance profitable new business has improved the diversification of our overall portfolio US GAAP premiums by product line US GAAP premiums by country/region USD 11.5bn USD 11.5bn 6% 12% 3% 6% 4% 12% 5% USD 8.0bn USD 8.0bn 1% 7% 9% 2% 1% 9% 32% 5% 7% 10% 10% 40
Slide 15: There is increasing demand from clients for large transactions that go beyond traditional core business
Core Transactions Solutions There is increasing demand from clients for large transactions that go beyond traditional core business • Combining multiple risks and/or triggers Efficiency of • Holistic earnings and capital protection cover risk transfer • Non-life retrospective covers and Life in-forc
Slide 16: Transactions are a strong differentiator, offering a profitable opportunity for growth
Core Transactions Solutions Transactions are a strong differentiator, offering a profitable opportunity for growth Development of transactions1 EVM underwriting profit in USD bn 0,8 L&H P&C 0,6 +24%2 49% 57% 0,4 47% 57% 12% 51% 0,2 20% 51% 88% 53% 43% 49% 43% 80% 0,0 2010 2011 2012 2013 2014 2015 20
Slide 17: Swiss Re Institute builds on our thought leadership position
Core Transactions Solutions Swiss Re Institute builds on our thought leadership position, bringing us closer to the needs of our clients The Swiss Re Institute delivers to its internal and Swiss Re Institute value proposition external stakeholders Influential thought leadership We combine our powerf
Slide 18: Technology enables solutions across multiple lines of business and the value chain
Core Transactions Solutions Technology enables solutions across multiple lines of business and the value chain Technology allows both a deeper understanding of risks and new services for clients • Swiss Re is leveraging technology to better understand risk, improve underwriting and increase the effi
Slide 19: Digital & Smart Analytics capabilities enable solution development for our clients
Core Transactions Solutions Digital & Smart Analytics capabilities enable solution development for our clients LEOPARD Magnum underwriting • Magnum is Swiss Re's automated underwriting Automated Exposure • LEOPARD is a Swiss Re developed tool allowing solution and claims engine for assessing biometr
Slide 20: Our differentiation approach has enabled Swiss Re to generate higher margins and outperform
Our differentiation approach has enabled Swiss Re to generate higher margins and outperform Net operating margin (NOM)1 2012 –2016 NOM – Split by components – Avg. 2012- 2016 20% 17% 13% 15% 10% 26% 20% 5% -7% -9% 0% Swiss Re Reinsurers 2 Swiss Re Reinsurers 2 Operating expenses Gross income Swiss R
Slide 21: Key takeaways
Key takeaways • Swiss Re is well positioned to face industry challenges and seize opportunities due its diverse capability across regions and position as a knowledge company • Differentiation is at the core of our Reinsurance strategy, which leads to a high level of client satisfaction and delivers
Slide 22: J.P. Morgan European Insurance Conference | 31 May 2017
J.P. Morgan European Insurance Conference | 31 May 2017 22
Slide 23: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 2017 4 August Half Year 2017 Results Conference call 2 November Nine Months 2017 Key Financial Data Conference call Investor Relations contacts Hotline E-mail +41 43 285 4444 [email protected] Philippe Brahin Jutta Bopp Manfred Gasser +41
Slide 24: 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
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