Swiss Re AG · SIX:SREN
Swiss Re — Kepler Cheuvreux 15th Swiss Seminar (April 2014)
28 slides from Swiss Re's conference presentation, Apr 1, 2014
Slide 1: Kepler Cheuvreux 15th Swiss Seminar
Kepler Cheuvreux 15th Swiss Seminar Matthias Weber, Group Chief Underwriting Officer Zurich, 1 April 2014
Slide 2: Agenda
Agenda Introduction to Swiss Re Alternative capital Key growth drivers Outlook and Q&A 2 Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 2
Slide 3: Differentiated through history
Differentiated through history Swiss Re is a global operator, with over 60 offices in more than 20 countries Swiss Re has both a superior capital rating1 and 150 years of experience in providing reinsurance solutions for our clients A long history of paying claims is valued by clients; during
Slide 4: Swiss Re is broadly diversified by geography and product line
Swiss Re is broadly diversified by geography and product line Net premiums earned1 2013 (USD 28.8 bn) by region (in USD bn) … and by business segment: 11.5 11.3 6.0 Admin Re® Corporate 5% Solutions 10% P&C Re 50% Americas Europe Asia L&H Re (incl. Middle East /Africa) 35% 40% 39% 21% Swiss Re benefi
Slide 5: P&C Underwriting
P&C Underwriting Strong and stable underwriting track record 130% 5% 120% 124.0 108.4 4% 117.0 110% 114.1 101.1 98.3 98.2 97.3 104.7 100% 107.8 93.9 95.4 3% 104.0 92.8 93.1% 98.4 98.4 97.9 97.4 90% 93.7 96.8 95.0 90.4 90.2 2% 80% 85.3 83.1 1% 70% 60% 0% 5-year US Treasury risk-free rates (RHS) Group
Slide 6: Group financial targets
Group financial targets On track ROE 700 bps above risk free EPS growth 10% average ENW per share growth plus average over 5 years (2011- annual growth rate, adjusted dividends 10% avg. annual 2015) for special dividends1 growth rate over 5 years in % in USD2 in USD2 144.5 13.0 13.4 13.7 11.9 119.4
Slide 7: P&C Re: January 2014 treaty renewals
P&C Re: January 2014 treaty renewals Overall economic price quality remains attractive Risk adjusted price quality1 111.5% -3.6% • Active cycle management, reflects 111% anticipated market trends for 2014 107% • Volume2 down 6% to USD 9.2bn • Decrease in risk adjusted price quality driven by rate an
Slide 8: Agenda
Agenda Introduction to Swiss Re Alternative capital Key growth drivers Outlook and Q&A 8 Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 8
Slide 9: Alternative capital has regained market share
Alternative capital has regained market share Estimated size of global market (USD bn) 45 40 35 30 25 20 15 10 5 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sidecar ILW Collateralized RI ILS Alternative capital market share accounts for 11% globally and about 17% in the US, exceeding the 2007 l
Slide 10: Differentiation through access and solutions
Differentiation through access and solutions Swiss Re underwrites P&C business both Expected economic profit by source directly with clients and via brokers (split Globals division, January 2014 renewals approximately 50/50) Our client centric focus has strengthened Unique relationships througho
Slide 11: Differentiated through knowledge, expertise and solutions
Differentiated through knowledge, expertise and solutions Global Claims and Underwriting Manuals – Global Underwriting Manual (Lifeguide) is consistently ranked as the leading underwriting manual world wide, available in 73 countries, in 11 languages and has over 1 million page hits every month –
Slide 12: Agenda
Agenda Introduction to Swiss Re Alternative capital Key growth drivers Outlook and Q&A 12 Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 12
Slide 13: Natural catastrophe protection gap
Natural catastrophe protection gap Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 13
Slide 14: Large protection gap between insured and economic natural catastrophe losses world-wide
Large protection gap between insured and economic natural catastrophe losses world-wide Catastrophe related losses in USD billion, at 2013 prices 450 90% 400 80% 350 70% 300 60% 250 50% 200 40% 150 30% 100 20% 50 10% 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013E Insured losses Uninsured losses
Slide 15: Demand for natural catastrophe capacity will continue to increase
Demand for natural catastrophe capacity will continue to increase Increase in largest industry loss scenarios per region 2012 vs. 2020E EQ: Earthquake (500 yrs) TC/WS: Tropical Cyclones/Winter Storms (100 yrs); TC includes storm surge FL: River Flood (250 yrs) Demand for nat cat insurance expected
Slide 16: Urbanisation trends and infrastructure growth
Urbanisation trends and infrastructure growth Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 16
Slide 17: Urbanisation provides an opportunity: top 10 megacities in Asia
Urbanisation provides an opportunity: By 2025, 7 of the world's top 10 megacities will be in Asia Population in millions (2025) Tokyo 38.66 Delhi 32.94 Shanghai 28.40 Mumbai (Bombay) 26.56 Ciudad de México (Mexico City) 24.58 New York-Newark 23.57 São Paulo 23.17 Dhaka 22.91 Beijing 22.63 Karachi 20
Slide 18: Large mortality protection gap
Large mortality protection gap Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 18
Slide 19: The mortality protection gap
The mortality protection gap Life insurance opportunities for closing Mortality protection gap Protection needed Protection Income to maintain living in place standard Net financial assets / savings Relevant life insurance Asia – Pacific: Mortality protection gap per working person with dependents:
Slide 20: High growth markets
High growth markets Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 20
Slide 21: Stabilising growth in non-life
Stabilising growth in non-life High Growth Markets with strongest growth rates Real premium growth rate for non-life insurance by region, 2010 to 2015F 25% Non-life premium growth is expected to remain 20% stable at around 8% in 2014 15% – emerging Asia will 10% maintain stable strong growth at ab
Slide 22: Life insurance in High Growth Markets is improving
Life insurance in High Growth Markets is improving Real premium growth rate for life insurance Real growth of life by region, 2010 to 2015F insurance premiums in 20% emerging markets is 15% expected to accelerate to 8.5% in 2014 from 6.2% in 10% 2013, supported by – a further recovery of China 5%
Slide 23: Actions for profitable growth in the HGMs
Actions for profitable growth in the HGMs Dedicated strategies across all lines of business HGM initiatives Reinsurance: organic growth, partnerships eg with local market reinsurers Corporate Solutions: organic growth, new offices, acquisitions Lines of business with particular HGM angle: – Na
Slide 24: Agenda
Agenda Introduction to Swiss Re Alternative capital Key growth drivers Outlook and Q&A 24 Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 24
Slide 25: Priorities for the Group CEO in 2014
Priorities for the Group CEO in 2014 Focus on strategy execution • Maintain industry leading underwriting track record Group strategy • Productivity emphasis to control management expenses • Continue to re-direct capital and talent to High Growth Markets • P&C Re: strict focus on risk selection and
Slide 26: Corporate calendar & contacts
Corporate calendar & contacts Corporate calendar 11 April 2014 150th Annual General Meeting Zurich 7 May 2014 First Quarter 2014 results Conference call 3 July 2014 Investors' Day London 6 August 2014 Second Quarter 2014 results Conference call 7 November 2014 Third Quarter 2014 results Conference c
Slide 27: Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014
Kepler Cheuvreux | 15th Swiss Seminar | 1 April 2014 27
Slide 28: 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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