Zurich Insurance Group Ltd · SIX:ZURN
Zurich Insurance — H1 2016 Earnings Presentation
18 slides from Zurich Insurance's earnings presentation, Aug 11, 2016
Slide 1: Global Life Source of earnings – Briefing document
Global Life Source of earnings – Briefing document Half year results 2016
Slide 2: Background: source of earnings
Background SOURCE OF EARNINGS What is the purpose of source of earnings? • Sources of Earnings (SoE) reporting presents the key drivers of life IFRS results in more detail than the traditional insurance profit and loss account. This information is a shareholder view of earnings, generally excluding
Slide 3: Margin overview: revenue components
Margin overview Key components REVENUES COMPONENTS DESCRIPTION Loadings & Fees Unit linked (UL) fund • For UL contracts, fund based fees are one of the main sources of income and we based fees net of show these separately within Loadings and Fees. Investment management charges investment expense are
Slide 4: Margin overview: expense components
Margin overview Key components EXPENSES COMPONENTS DESCRIPTION Operating costs Overheads & Admin • These are the regular expenses of the business including depreciation and amortization of software and intangibles. It excludes acquisition costs and expenses directly related to income (e.g. investmen
Slide 5: How to interpret and use the KPIs (1/2)
Key performance indicators How to interpret and use the KPIs (1/2) H1 H2 H1 Adjusted KPIs 2015 2015 2016 DESCRIPTION UL fund based fees 0.6% 0.6% 0.6% Interpretation • This KPI is based on fund based fees generated from both on and off-balance sheet Av. UL AUM unit linked funds, and compared against
Slide 6: How to interpret and use the KPIs (2/2)
Key performance indicators How to interpret and use the KPIs (2/2) H1 H2 H1 Adjusted KPIs 2015 2015 2016 DESCRIPTION Investment Margin 0.6% 0.8% 0.6% Interpretation Av. NL reserves • The investment margin mostly comprises spread return on assets backing non unit- linked policyholder reserves. The di
Slide 7: Analysis by region: North America
Analysis by region North America NEW BUSINESS SALES & EARNINGS1 ADJUSTED KPIs & OVERVIEW New business value product split KPIs H1-15 H1-16 As a % of UL fund based fees 0.1% 0.1% Average UL AuM Unit-linked Savings & annuity Other loadings 28.3% 26.1% GWP & Deposits Corporate Protection Investment mar
Slide 8: Analysis by region: Latin America
Analysis by region Latin America NEW BUSINESS SALES & EARNINGS1 ADJUSTED KPIs & OVERVIEW New business value product split KPIs H1-15 H1-16 As a % of UL fund based fees 0.5% 0.5% Average UL AuM Savings & annuity Other loadings 30.1% 26.4% GWP & Deposits Unit-linked -8% Investment margin 3.4% 4.3% Ave
Slide 9: Analysis by region: EMEA
Analysis by region EMEA NEW BUSINESS SALES & EARNINGS1 ADJUSTED KPIs & OVERVIEW New business value product split KPIs H1-15 H1-16 As a % of UL fund based fees 0.6% 0.6% Average UL AuM Savings & annuity Other loadings 7.1% 6.9% GWP & Deposits -2% Investment margin 0.5% 0.4% Average NL reserves Indivi
Slide 10: Analysis by region: APAC
Analysis by region APAC NEW BUSINESS SALES & EARNINGS1 ADJUSTED KPIs & OVERVIEW New business value product split KPIs H1-15 H1-16 As a % of Pension & other corporate Savings & annuity UL fund based fees 0.7% 0.8% Average UL AuM Unit-linked Other loadings 17.7% 20.3% GWP & Deposits 1% Investment marg
Slide 11: Analysis by region: Other
Analysis by region Other NEW BUSINESS SALES & EARNINGS1 OVERVIEW Other region mirrors the segmental reporting in the Group Annual Report. Global New business value product split Life manages its business through four main regions and the residual “Other” region includes business units that do not fa
Slide 12: Appendix
Z) ZURICH Appendix
Slide 13: Historical margins & KPIs
Historical margins & KPIs Highlighting distorting impacts MARGIN HISTORY (USDm) IMPACTS (USDm) ADJ. MARGIN (USDm) Business Operating Profit H1-15 H2-15 H1-16 H1-15 H2-15 H1-16 H1-15 H2-15 H1-16 UL fund based fees 406 410 360 0 1 0 0 2 406 410 360 Premium & Other loadings 1'410 1'427 1'363 0 0 0 1'41
Slide 14: Total margins by region
Total margins by region As reported and adjusted for distorting impacts USDm As reported Adjusted USDm As reported Adjusted Total Global Life H1-15 H1-16 Delta H1-15 H1-16 Delta EMEA H1-15 H1-16 Delta H1-15 H1-16 Delta UL fund based fees 406 360 -11% 406 360 -11% UL fund based fees 375 331 -12% 375
Slide 15: Key performance indicators: calculations
Key performance indicators1 Key financial data used in the calculations (net of minorities) USDm USDm Total Global Life H1-15 H2-15 H1-16 EMEA H1-15 H2-15 H1-16 Average UL AuM 130'291 130'472 125'069 Average UL AuM 119'477 118'369 112'829 GWP & Deposits 13'485 12'474 13'521 GWP & Deposits 11'048 10'
Slide 16: Key performance indicators: financial data charts
Key performance indicators Key financial data used in the calculations (net of minorities) USDbn USDbn Average unit-linked AuM GWP & Deposits 132 130 130 16 2 1 2 1 0 1 0 1 125 13 14 5 5 2 5 2 0 0 12 0 5 4 1 1 1 4 5 1 1 0 1 0 1 0 118 119 118 3 13 11 0 11 113 10 APE Average total reserves 219 2.5 0 2
Slide 17: Movements from 2015 to 2016
Movements from 2015 to 2016 Commentary on key variances ADJUSTED MARGIN MOVEMENTS COMMENTARY GL BOP is USD 667m, 1% below prior year with a strong performance in EMEA and Total Global Life H1-15 H1-16 Delta Latin America offset by North America. The weakening of Latin American and European currencie
Slide 18: Disclaimer and cautionary statement
Disclaimer and cautionary statement Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the ‘Group’).
Zurich Insurance Group — H1 2016 Earnings Presentation on 6ix