Swiss Re AG · SIX:SREN

Swiss Re — pres valueprop

15 slides from Swiss Re's investor presentation, Mar 30, 2007

  1. Slide 1: Swiss Re's longevity value proposition

    ab Swiss Re’s longevity value proposition Product & Knowledge Fair 2007 Rüschlikon 30 March 2007 Alberto Izaga Head of Life & Health Products Member of the Executive Board

  2. Slide 2: Financial Times 23 March 2007

    ab Financial Times 23 March 2007 Slide 2

  3. Slide 3: Swiss Re & longevity

    ab Swiss Re & longevity „ Historically Swiss Re has avoided longevity risk. Why? – Historical trends in mortality experience – Significantly different price expectations between buyers and sellers „ Swiss Re’s mortality strategy has ‘paid off’ Slide 3

  4. Slide 4: Swiss Re Life & Health operating income 1999-2006

    ab Swiss Re Life & Health operating income 1999 - 2006 1.8 1.7 1.7 1.6 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1999 2000 2001 2002 2003 2004 2005 2006 Source: Swiss Re annual report Life & Health Operating Income CHFbn Operating income includes net realised investment gains on non-pa

  5. Slide 5: Historical trends in mortality experience

    ab Historical trends in mortality experience Age-standardised death rates, US males Historical Index 2,000 1,800 Deaths per 100,000 1,600 W W II 1940-1945 W W I 1914-1918 1,400 AIDS 1990-1995 Influenza 1918 Influenza 1957 Influenza 1968 1,200 1,000 800 600 400 200 1900 1910 1920 1930 1940 1950 1960

  6. Slide 6: What has changed?

    ab What has changed? „ Significantly greater awareness of changes in life expectancy by – Trustees – CEOs, CFOs – Media – M&A professionals „ Price expectations between buyers and sellers have converged „ Mortality improvements have started to slow down ………. unfortunately ‘immortality’ is not achiev

  7. Slide 7: Life expectancy at birth

    ab Life expectancy at birth World USA UK Europe France Germany Latin Japan America 1950-1955 47 69 69 66 67 68 51 64 1960-1965 53 70 71 70 71 70 57 69 1970-1975 58 72 72 71 72 71 61 73 1980-1985 61 74 74 72 75 74 65 77 1990-1995 64 75 76 73 78 76 68 80 2000-2005 65 77 78 74 79 79 72 82 2010-2015 68

  8. Slide 8: Swiss Re's longevity value proposition

    ab Swiss Re’s longevity value proposition „ Swiss Re’s ‘longevity’ „ Swiss Re’s financial strength „ Swiss Re - the mortality expert „ Swiss Re’s financial services expertise „ Longevity is a good balance to our mortality portfolio „ Potential sellers are our clients Slide 8

  9. Slide 9: Swiss Re's 'longevity'

    ab Swiss Re’s ‘longevity’ 1863 Founding of the company 1906 San Francisco Earthquake, Swiss Re establishes its reputation 1910 First branch office in New York 1950-1956 Opening of offices in South Africa, Canada, Australia, Hong Kong 1968-1976 Creation of several advisory and service companies in As

  10. Slide 10: Swiss Re's financial strength

    ab Swiss Re’s financial strength Standard & Poor’s AA- (Very strong) / Stable Outlook(1) Moody’s Aa2 (Excellent) / Negative Outlook(2) A.M. Best A+ (Superior) / Stable Outlook(3) „ Life & Health market share(4) 21% - world ranking 1 „ Swiss Re available capital(5) CHF40.6bn „ Swiss Re 2006 net incom

  11. Slide 11: Swiss Re - the mortality expert

    ab Swiss Re - the mortality expert Total premiums earned 2006: CHF 11.0 billion Admin ReSM 8% Traditional 72% Life Traditional Health 20% Slide 11 Source: Swiss Re 2006 Annual Report

  12. Slide 12: Swiss Re's financial services expertise

    ab Swiss Re’s financial services expertise „ Leading position in credit solutions and hedging techniques „ Assets under management of CHF172.5bn „ Excellent track record for third-party asset management through Conning Asset Management „ Leading position as structurer and underwriter of insurance-li

  13. Slide 13: Longevity is a good balance to Swiss Re's mortality portfolio

    Longevity is a good balance to Swiss ab Re’s mortality portfolio - illustrative Release As priced Extra Mortality Mortality Improvement Deterioration Strain Mortality sum at risk Slide 13 Annuity reserves

  14. Slide 14: Potential sellers are our clients

    ab Potential sellers are our clients Reinsurance Property and casualty insurance companies Life insurance companies Captives Public sector / governments Large corporations Financial institutions Institutional investors Financial services Swiss Re 03/2007 Slide 14

  15. Slide 15: Key messages

    ab Key messages „ Historically we have focused on mortality „ Significantly greater awareness of changes in life expectancy „ Price expectations between buyers and sellers have converged „ Swiss Re is uniquely placed to succeed „ We will do deals shortly Slide 15

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