Investors’ intro pack 2020

September 2020 © Zurich September 2020 September Content (use symbols to navigate through the document) MAIN SECTIONS Sustainability and Farmers Life Property & Casualt Group overview, strategy and financial targets capital capital management y ( P&C) (use symbols to navigate through the document) IMPORTANT INFORMATION OTHER Other symbols Back Back to content page Contacts Disclaimer Investors' intro pack 2020 pack intro Investors' 2 © Zurich September 2020 September propositionOurto investors GROUPOVERVIEW global business diverse and A balanced strong liquidity strong withlevels leading capital Industry Resilient balance sheet balance managed conservatively consistent and Stable, + discipline underwriting and Focus customers on Strategy customer Focus on the Investors' intro pack 2020 pack intro Investors' Simplify Innovate 3 © Zurich September 2020 September 3 2 1 A trulyhighlyglobal diversifiedandgroup GROUPOVERVIEW KEY FACTS KEY Adjusted Adjusted average BOP for FY each year and is subject to review by FINMA. Going forward the Group SolvencyThewill Swiss apply Test standard(SST) ratio yieldas of curvesJanuary as 1, 2020 allowedhas been by FINMAcalculated basedfor are Values for on thethe year full Group’s2019 internalunless otherwisemodel, as agreednoted. , solvency ratios, shareholders’ equity and market cap a USD USD 205bn USD USD 4.1bn USD 5.3bn USD USD 35bn USD 52bn CHF 59bn 1 129% 129% 222% - 16 to FY Net attributableincome to shareholders (NIAS) operatingBusiness profit (BOP) group Total investments (economic view) revenuesTotal (excl. result Market Market cap Shareholders’ equity EconomicZurich Capital (Z SST solvency regulatory ratio - 19. 19. BOP split by business excludes Group Functions & Operations and Non - ECM) ratio on on UL investments) 2 A BALANCED BUSINESS GLOBALA BALANCED - Core Businesses. B Farmers ManagementFarmers Services Life Farmers (incl. Life) Farmers (incl. Re) Property & Casualty wi r e as of December 31, 2019. 26% BOP BOP by business (%) th FINMA. The year full ratio has to be filed with FINMA by end of April of th 28% e calculation of the SST. OP OP split by region excludes additionally Group . 46% 3 Latin Pacific Asia North (incl.America Farmers) Investors' intro pack 2020 pack intro Investors' 6% BOP BOP by (%)region 54% 8% 32% 4 © Zurich September 2020 September 3 2 1 Source: Genuinelyglobalfranchise with distinct capabilities GROUPOVERVIEW Global commercial insurer Pro For on Based FY - all all forma forma for the acquisition of Axco references , Company reports and presentations, local statistics (2019 or most recent available), Dowling & Partners, SNL Financial, Str - Top 3 19 19 NEP. Data includes only primary and is on a more comparable basis. Zurich includes alternative markets to Farmers Exchanges Adira 1 Insurance, based on FY see the NORTH disclaimer #3 insurance company overall LATINAMERICA #2 in crop insurance #4 in commercial insurance through Farmers Exchanges #7 in US personal lines and and - 18 data. cautionary statement . 2 #2 global travel insurer #4 insurance company overall EMEA in in North America and municipal business in the UK excludesand SMEs. ate gic Insight, Zurich internal data. ASIA ASIA PACIFIC Investors' intro pack 2020 pack intro Investors' #5 in P&C #11 P&C,in #9 in life #9 in P&C #5 in P&C, #3 in life #3 in P&C 3 5 © Zurich September 2020 September Strong positioncapital and generation cash GROUPOVERVIEW HIGHLY CASH GENERATIVE, GENERATIVE, HIGHLYCASH CASH REMITTANCE ( STRENGTH FINANCIAL VERY STRONG - 1.2 FY 1.0 3.9 3.7 0.9 2.4 - 0.1 14 - 1.5 FY 0.6 1.8 0.9 3.9 1.7 - 0.5 15 - 1.1 FY 0.8 3.2 2.8 2.0 - 0.1 0.4 16 - A+ (superior) / outlook ‘stable’ Aa3 (excellent) / outlook ‘stable’ AA FY 0.2 3.0 3.7 1.2 1.1 2.5 - - 17 0.9 - (very strong) / outlook ‘positive’ - 1.4 FY 0.8 3.8 1.5 1.5 3.7 - 0.2 18 - FY 0.1 3.4 1.2 0.9 2.3 4.1 - - 19 0.9 USD Non Group Functions Farmers Life Property & Casualty IFRS IFRS NIAS bn - Core Core Businesses ) Z STRONG POSITION,CAPITAL Z - ECM 100% 120% 140% 60% 80% 124% FY FY - 18 - 10 RATIO (%)RATIO DEVELOPMENT 119% 103% FY - Business 11 profit 14% 114% FY - 12 Insurance 127% FY - risk - 13 2% 122% FY - 14 - change Market ECM (%) ECM - 121% FY 2% - 15 125% FY Dividend - accrual 16 - 9% Investors' intro pack 2020 pack intro Investors' 132% FY - 17 124% FY Other 3% - 18 129% FY - 19 129% FY - 19 Range Target 6 © Zurich September 2020 September advantagechange of industry strategyOur flexible operatingand us model to take position GROUPSTRATEGY EXTERNAL EXTERNAL ENVIRONMENT Regulation technology Innovation and economic uncertainty Geopolitical and Customer revolution OUR STRATEGY OUR Innovate Simplify customer Focus on the OUR OPERATING OPERATING OUR MODEL COMMERCIAL Go to market

Products Shared services Customer data GROUP Capital Brand

Investors' intro pack 2020 pack intro Investors' Products

RETAIL Go to market to Go 7 © Zurich September 2020 September 3 2 1 Continuedexecution strategicall onpriorities GROUPSTRATEGY STRENGTHENED CUSTOMER FOCUS STRENGTHENED Comparison Comparison not meaningful as the program was partially suspended in references2018. For all to Farmers Exchanges see the disclaimer and cautionary FY statement. - 19 vs 19 FY vs 2 - 18. 18. NPS n.m. +13 1 +4 +5 +3 +2 - 3 3 Retention - +1 - +3 +4 +5 0 1 1 1 NEW PARTNERSHIPS NEW DISTRIBUTION REALLOCATION CAPITALOF Acquisitions Disposals Retail Retail Life P&C and Legacy wealth liabilities INNOVATIVE PROPOSITIONS SUPPORTING A BETTER A BETTER SOCIETY SUPPORTING Innovation Innovation in Insurance Awards Winner of Gold Investors' intro pack 2020 pack intro Investors' award – Efma Accenture +25% Sales 1 8 © Zurich September 2020 September 2 1 Simpleexecution,higherambition GROUPTARGETS 2016 Before capital deployment. OperatingBusiness Profit after tax return on equity, excluding unrealized gains and losses. STRENGTHENED BUSINESSSTRENGTHENED CULTURE AND IMPROVEDEFFICIENCY ORGANIZATIONSIMPLIFIEDAND FLEXIBLE – 2019 ACHIEVEMENTS 2019 Reinvigorated growth with low earnings volatility Built culture of customer focus and innovation Improved the Commercial profitability Strengthened position of our key countries Reduced corporate center expenses Over Simplified products and services Simplified IT landscape Delayered structure - delivered on USD 1.5bn savings program 2020 – 2022AMBITION growth per Earnings share Z remittances Cumulative cash BOPAT ROE - ECM 2 1 USD>11.5bn 100 >5%p.a. Investors' intro pack 2020 pack intro Investors' >14% - 120% 9 © Zurich September 2020 September 1 We all will usetoleversfurther drive expansion ROE GROUPTARGETS ILLUSTRATIVE BOPAT BOPAT (%) ROE ILLUSTRATIVE DEVELOPMENT HY - 19 19 adjusted for timing of dividend payment and normalization of natural catastrophe losses and performance. HY 13.5% - 19 1 equity equity base Growth in Growth in ~1.5 - 2.0% Investment Investment income ~1.0 - 1.5% Business growthBusiness ~2.0 - 2.5% Productivity ~0.75 - 1.5% Portfolio Portfolio quality ~1.0 - 1.5% Capital allocationCapital / other ~ 0.5% Investors' intro pack 2020 pack intro Investors' illustrative FY ~15% - 22 10 © Zurich Property Property & Casualty © Zurich September 2020 September 1 players Leadingcommercialone insurer, ofand the few genuinely global CASUALTYPROPERTY& FOOTPRINT The split excludesThesplit Group Reinsurance and Eliminations. FY - 19 Gross written19 Gross premiums by region (%) North America EMEA 43% 8% 8% 34.1bn USD Latin America Latin APAC 41% 1 BUSINESS MIX BUSINESS FY - 19 Gross 19 writtenGross premiums by line of business (%) Property Motor 20% 16% Special linesSpecial Liability 9% 34.1bn USD 21% 34% Worker Injury Worker CUSTOMER CUSTOMER UNITS FY - 19 Gross 19 writtenGross premiums by customer unit (%) 35% Retail and otherRetail insurance Commercial insurance Investors' intro pack 2020 pack intro Investors' 34.1bn USD 65% 1 12 © Zurich September 2020 September 3 2 1 We CASUALTYPROPERTY& CATASTROPHES CATASTROPHES (%) LOSS AY RATIO EXCLUDING Excludes premiumExcludes tax and levies. business.crop Crop impact reflects difference to a normalized combined ratio for the crop yearAccident businessloss ratio Northin (AY America.LR) excludes Additionally, prior year reserve catastro development (PYD). Catastrophes (Cat) include major and mid PYD Cat 1 1 show - 65.7% 2.6% FY 1.8% - 16 continuous improvementratio thecombinedcontinuous P&C in - 64.7% 5.8% FY 1.4% - 17 1 - Crop Crop impact 2.3ppts - 63.6% 4.0% FY 2.3% - 18 2 - 63.4% 63.0% FY 3.2% 2.3% 0.4% - 19 RATIO RATIO (%) UNDERWRITING (OUE) OTHEREXPENSE 15.4% FY - 16 2 14.2% FY - 17 - 1.9ppts 14.1% FY - 18 - sized ph 13.5% FY es loss ratio includes a 0.2 percentage points impact from the catastropheschallenging includingyear for thesignificant weather - 19 COMMISSION RATIO COMMISSIONRATIO (%) 14.7% FY - 16 - related events. 15.9% FY - 17 +2.3ppts Investors' intro pack 2020 pack intro Investors' 16.9% FY 2 - 18 17.0% FY - 19 13 © Zurich September 2020 September 2 1 ratioCombined and BOPstrongly improved CASUALTYPROPERTY& COMBINED RATIO RATIO (%) COMBINED Accident yearAccident loss ratio (AY LR) excludes prior year reserve development (PYD).Catastrophes include major and mid 98.1% 65.7% 31.7% - FY 2.6% 1.8% - Expense Expense Ratio 16 Catastrophes 100.9% 64.7% 31.8% - FY 5.8% 1.4% - - sized catastrophes, including significant weather related events. 17 - 1.7ppts 1 AY LR catastrophes)(excl. 97.8% 63.6% 32.4% - FY 4.0% 2.3% - 18 2 96.4% 63.4% 32.1% - FY 3.2% 2.3% - 19 PYD BUSINESS OPERATING PROFITOPERATING BUSINESS ( 67 1,891 2,437 FY - 485 133 - Non Non 16 127 - - technical technical result controlling interest - - 231 124 1,847 1,546 FY 191 - 17 - 137 Investment Investment income Realized capital gains +6% USD m - - 115 48 ) 1,932 2,085 FY 574 - 18 - 258 Investors' intro pack 2020 pack intro Investors' Underwriting result - 131 1,961 2,878 FY 922 211 - 19 - 84 14 © Zurich September 2020 September 4 3 2 1 reinsurance Balanceand sheet largeloss volatility well managedthrough CASUALTYPROPERTY& GROUP CATASTROPHE PROTECTION CATASTROPHE ( GROUP REINSURANCE Only relevantOnly for U.S. windstorm. USD This 200m cover can be used only once, either for aggregated losses Franchise ordeductible for an of individualUSD 25m, i.e. occurrencelosses or greaterevent. than USD 25m count towards Europe erosioncat treaty calculated of with the EUR/USD retention (annualexchange aggregaterate as of de July 31, 2020. U.S. wind U.S.swap wind Combined global cat treaty Global aggregate cat treaty all perils all Europe 1,000 502 461 200 1 4 U.S. all U.S.perils all 1,000 3 600 600 200 115 Retention cat Regional treaties Global cat treaty Rest of world all perils all 1,000 200 300 200 10% 10% co - participation Global Global aggregate cat treaty cat USDm 750 250 200 2 ) MAIN MAIN TREATIES ADDITIONAL EXCESS SURETY LOSSOFGLOBAL • • • • Aggregate limit: USD 1,100m USD 25m retention Other regions: USD 375m coverage per customer in excess of USD 50m retention North America: USD 350m coverage per customer in excess of Designed to manage earnings volatility U.S. U.S. liability quota share U.S. property quota share Global property per risk aggregate du ctible). Investors' intro pack 2020 pack intro Investors' 15 © Zurich September 2020 September 3 2 1 reducingearningsvolatility reinsuranceOureffective has beenprotectingin earnings and CASUALTYPROPERTY& Q3 Volatility Volatility is measured as difference between lowest and highest ratio for on Based theFY Direct2016 indicated period.Written Premiums (excluding accepted reinsurance), are Impacts netincluding of Retailreinsurance and and pre Commercial business. - 17 NET IMPACT FROM SIGNIFICANT CAT CAT IMPACT ( NET SIGNIFICANT FROM 17 Hartford QBE Travelers Zurich Chubb AIG Harvey 0.4 0.5 Irma 0.6 0.7 0.7 0.9 Maria 1.9 - tax. Source: Company reports, AM Best, IR analysis. EQ Mexico 3.0 U.S. P&C market share 1.9% 0.5% 0.7% 3.9% 2.1% 5.1% 3.3% 2.4% Other (%) 2 USD Total bn ) 1 % of HY SH equity <1% 2% 4% 2% 2% 3% 3% 5% - 17 LOWER LARGE LOSSLARGE ( LOWERVOLATILITY Q1 Q1 - 16 - 14 2ppts 8ppts ppts ) 3 Investors' intro pack 2020 pack intro Investors' Q4 Q4 - 15 - 19 16 © Zurich Life © Zurich September 2020 September protectionunitand lifeOur business where is othersriskandwant to be;low focusedon LIFE FOOTPRINT FY - 19 19 Annual premium equivalent by region (%) 6% North America EMEA 3% 27% 4.3bn USD Latin America Latin Pacific Asia 64% - linkedbusiness BUSINESS MIX BUSINESS FY - 19 19 Annual premium equivalent by line of business (%) Traditional Traditional Unit FY Savings Savings & annuity - 19 19 Technical reserves by line of business (%) & & other - linked 30% 41% 15% 227bn 4.3bn USD USD 18% Corporate Corporate 37% 59% Protection contracts & investment Unit - linked DISTRIBUTION DISTRIBUTION MIX Banks Corporate & protection business FY - 19 19 Annual premium equivalent by pillar (%) 32% Investors' intro pack 2020 pack intro Investors' 4.3bn USD 39% 29% Others 18 © Zurich September 2020 September ongoingyieldslow focusprotectionOur onpositionsbusiness ourlifewell business for LIFE PROTECTION PROTECTION 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 EMEA +14% GWP Latin America Latin ( USD +7% bn ) FY Asia Pacific Asia - 18 +50% FY - 19 North America +13% +18% Total GWP SPLIT(%) EMEA 29% 19% 51% Latin America Latin 3% 91% Protection 7% Asia Pacific Asia 5% Capital efficientCapital 93% 2% North America 1% Investors' intro pack 2020 pack intro Investors' 99% Other 0% Total 52% 13% 34% 19 © Zurich September 2020 September Revenuestreams havemarket dependency low LIFE DRIVERS OFDRIVERS OPERATING PROFIT EXPENSES INCOME IFRS PROFITABLITIY Technical marginTechnical (net of deferrals) Acquisition Acquisition costs Loadings & feesLoadings Operating costsOperating Inv. Inv. margin FY - 19 19 BOP ( USD m Unit ) 2,667 - linked fund based fees 1,486 - 2,350 823 690 3,489 - 1,399 1,055 terms What we pay to distributors net of deferred costs over policy The costs we incur runningthe business for claims costs Revenues on mortality and other ‘risk’products, after allowing assets Returns on our assets, plus share of returns on policyholder costs Policy charges and fees mainly designed to cover distribution Investors' intro pack 2020 pack intro Investors' 20 © Zurich September 2020 September 1 margins Wea havegrowing lifewith business reliance less on investment LIFE BUSINESS OPERATING PROFITOPERATING BUSINESS ( Based on Based source of earnings disclosures. Peers: Allianz, Latin America Latin 1,130 FY 889 249 - 76 85 - 16 Asia Pacific Asia - 1,258 2 FY 831 132 296 - 17 1 +10% USD North America m 31 1,010 1,554 FY ) 319 8 - , Generali. 18 186 EMEA - 30 1,037 1,486 FY 204 269 - 19 6 Group Group Re MARGINS (%, AVERAGE AVERAGE MARGINS (%,FY AND LOADINGS TECHNICAL INCOME OF FEES, FROM SHARE Peer 1 64% Peer 2 75% - 16 - 19) 1 Peer 3 75% Investors' intro pack 2020 pack intro Investors' Zurich 88% 21 © Zurich Farmers © Zurich September 2020 September 1 A FARMERSEXCHANGES For dedicated to selling products dedicated to selling Farmers New World Life through Farmers exclusive through Farmers exclusive unique Life company all all (e.g. underwriting, policy (e.g. premium administration, underwriting, collection, Provides non Provides references investment management, and investment accounting and reporting) agents to Farmers - claims claims and Exchanges to ancillary the services business 1 Farmers Group, Inc. Exchanges see the Reinsurance Reinsurance company used to disclaimer structure Farmers Reinsurance Co. reinsure reinsure the Exchanges and and cautionary statement . Fees as % of Gross Premiums Earned Services brand and distribution assets (e.g. exclusive brand agents, and assets distribution direct (e.g. exclusive call centers) Carry underwriting risk underwriting Carry and as Farmers handle the well own claims, in placing business outside placing in outside business Farmers exclusive agents Farmers exclusive Kraft Kraft Lake Brokerage Brokerage Brokerage dedicated to of the Exchanges the of Farmers Exchanges Farmers Financial Solutions Investors' intro pack 2020 pack intro Investors' Farmers exclusive agents Farmers exclusive Broker in providing clients with providing clients in investment services investment 1 - dealer dealer to support Policyholders owned Policyholders Zurich owned 23 © Zurich September 2020 September 2 1 Leading FARMERSEXCHANGES MARKET (%)MARKET SHARE LINESPERSONAL U.S. Nationwide Exchanges Farmers Mutual Liberty USAA Allstate Progressive Berkshire Based on Based 2019 direct written premiums of USD 361bn. Personal lines defined For as private auto and homeowners & all all references 1 2.8% to player 4.6% Farmers 5.1% 1 6.1% 9.0% 9.1% 9.7% 2 Exchanges in 16.6% see the the disclaimer BUSINESS (%)BUSINESS FY U.S. personalU.S. - Home Auto and and 19 GWP OFGWP BY LINE 19 13% cautionary 27% 10% Business insuranceBusiness Specialty USD statement 1% 20.7 bn . 49% lines Other insurance FY farmowners - 19 GWP BY STATE (%)GWP 19BY STATE 43% multi peril for U.S. excluding territories. Source: SNL of Marchas 31, 2020 3% USD Arizona Washington 4% 20.7 4% bn 16% 30% All others All Colorado CHANNELS MAIN DISTRIBUTION ~32,000 ~11,600 Investors' intro pack 2020 pack intro Investors' agents Independent agents Exclusive . 24 © Zurich September 2020 September 2 1 strategy Farmers Exchanges FARMERSEXCHANGES FOCUS AREAS… AREAS… FOCUS EXECUTION KEY ACCELERATING ON Includes 21 Includes For all all references st Century business outside of California and Hawaii, business insurance independent agents, and other businesses. insurance Grow in life and business Expand in the eastern U.S. Enhance agent productivity and loyalty Improve customer experience to Farmers 1 Exchanges see the disclaimer 1 drives and and cautionary growth INTO NEW SEGMENTS INTO NEW AND INNOVATING …WHILE EXPANDING statement partnerships Distribution connected home Telematics/ delivery Rideshare & Millennials . through its customer GWP GWP ( - centered Discontinued Discontinued operations 19,473 19,908 FY USD 435 - 17 bn ) Investors' intro pack 2020 pack intro Investors' 20,201 20,325 FY +2% 125 - 18 2 Continuing Continuing operations 20,639 20,656 FY 17 - 19 25 © Zurich September 2020 September 3 2 1 ContinuedimprovementFarmersin Exchanges FARMERSEXCHANGES COMBINED RATIO RATIO (%) COMBINED Surplus Surplus Combined ratio before quota share reinsurance. For all all references ratio based 101.6% 94.3% FY 7.3% to Catastrophe Catastrophe losses - 17 on on Farmers Farmers 1 Exchanges Exchanges 2 see surplus Combined Combined ratio (excl. catastrophe losses) the 99.9% 93.0% FY 6.9% disclaimer - 18 . and and cautionary statement 100.0% 93.2% FY 6.8% - 19 . SURPLUS 3 1 38.7% FY 5.5 surplusratio - 17 Surplus Surplus ratio (%) 39.5% FY Farmers ExchangesFarmers surplus (USDbn) 5.5 - 18 Investors' intro pack 2020 pack intro Investors' 41.5% FY 6.0 - 19 26 © Zurich September 2020 September 2 1 ManagementServices Stable FARMERS BUSINESS Margin on Margin gross earned premiums of the Farmers Exchanges. For all references Including policyto feesFarmers and Exchangesdeposits. see the disclaimer and caut OPERATING contribution 1,415 1,692 FY 220 57 Farmers Re Farmers - 17 PROFIT ( Farmers Life Farmers 176 1,424 1,643 FY USD - 18 to 43 m Farmers ManagementFarmers Services ) Group fee - based 1,456 1,707 FY 236 earnings 15 - 19 business , primarily KEY DRIVERS KEY FMS MGEP margin (%) LifeFarmers GWP ( lines quotaall share treaty (%) Re Farmers participation in the ion USDm driven ary statement. 2 ) 1 by 8.00% 1,026 FY 7.0% - 17 Farmers 1.00% 1,048 FY 7.0% - Investors' intro pack 2020 pack intro Investors' 18 0.25% 1,069 FY 7.0% - 19 27 © Zurich Investment and Investment capital and management © Zurich September 2020 September 1 Low riskstrategy asset focusedonliability matching INVESTMENTAND CAPITAL MANAGEMENT FY Duration numbersDuration are calculated as DV10 (dollar value of 10bp of move interestin rates over the period on the asset values) - 19 GROUP GROUP 19INVESTMENTS Mortgages income Fixed 2% 7% 5% 2% USD 205bn 5% Equities estate Real 78% Cash private equity Hedgefunds, FY - Financial creditFinancial Non guaranteed governmentand Government 19 FIXED INCOME FIXEDINCOME SECURITIES 19 - financial credit 10% 12% 6% 4% USD 161bn 7% 18% Covered bonds Asset backed securities state credit agencies, Municipals, 43% di vided by market value of fixed income investments. Other FY - 19 DURATION (# DURATION 19 9.0 Life 11.6 Assets Investors' intro pack 2020 pack intro Investors' years Liabilities 4.4 ) 1 P&C 4.8 29 © Zurich September 2020 September Wellhigh balancedandquality fixed incomeportfolio INVESTMENTAND CAPITAL MANAGEMENT FY - 19 ASSET QUALITY ASSET 19 government guaranteed Government and 0% AA AAA 25% 35% 33% 3% 70 3% BBB A Credit, Credit, private debt Unrated grade Non 2% - investment 33% 25% 15% 21% 91 5% GUARANTEED BY GUARANTEED COUNTRY FY - 19 GOVERNMENT & GOVERNMENT & GOVERNMENT GOVERNMENT 19 UK 6% 7% Other 9% 19% 9% USD 70bn 12% 24% 14% U.S. Capital GoodsCapital SECTOR FY Technology Transportation - Energy 19 NON 19 Government owned, 6% no no guarantee 5% 6% Other - FINANCIAL CREDIT BY CREDIT FINANCIAL 6% 18% 7% USD 29bn Investors' intro pack 2020 pack intro Investors' 10% Communications 16% Consumer NonConsumer 11% 14% Consumer CyclicalConsumer Utility - Cyclical 30 © Zurich September 2020 September 2 1 Capital managedconservativelyfinancial to AA strength INVESTMENTAND CAPITAL MANAGEMENT GROUP SOLVENCY (%)SOLVENCY GROUP each each year and is subject to review by FINMA. TheSolvencySwiss Test (SST) ratio as of January 1, 2020 has been calculated forwardGoing basedthe on Group the will applyGroup’s standardinternal yield model,curves as agreedas allowed by FINMA for the calculation of the SST. 120% 160% 200% 240% 80% 185% 114% FY SST yield(standard curves as allowed by FINMA) - 12 217% 127% FY - 13 196% 122% FY - 14 121% 189% FY - 15 204% 125% FY - 16 FY 132% 216% 1 - 17 SST (Swap curves) FY 124% 221% - 18 198% FY 129% 222% - 19 2 Q1 101% 186% - Z 20 - ECM CAPITAL MANAGEMENT POLICYMANAGEMENT CAPITAL (Z wi 100% 120% 90% th FINMA. The yearfull ratio has to be filed with FINMA by end of April of >140% <90% - 100% - - 120% 140% 100% 120% 120% 140% - - Below Below tolerance level, action required toleranceWithin level acceptable on temporary basis Target range Mitigating actions considered Mitigating actions required - ECM RATIO, RATIO, %) ECM Investors' intro pack 2020 pack intro Investors' 31 © Zurich September 2020 September 3 2 1 Solvencyratios resilientto market movements INVESTMENTAND CAPITAL MANAGEMENT FY Credit Credit Spreads (CS) include mortgages and including/excluding Euro sovereign spreads.The impact of theZ changes to the required capital is approximated and takesSensitivities are best into estimateaccount and marketlinear, i.e.insuranceand will vary dependingrisks. on prevailing market conditions at the time. - 19 Z 19 CS excl. CS Euro excl. sovereign +100bps - ECM SENSITIVITY IMPACT IMPACT ( SENSITIVITY ECM Credit Credit spreads +100bps USD appreciation +10% Interest Interest rate +50bps Interest Interest rate Equities Equities +20% Equities Equities Actual value Actual - 50bps - 20% 3 3 ppts ) 1,2 - 21ppts - - 15ppts 14ppts - 4ppts +2ppts +4ppts +5ppts - ECM sensitivity netis of profit sharing FY - 19 SST SENSITIVITY IMPACT SSTIMPACT 19 SENSITIVITY ( CS excl. CS Euro excl. sovereign +100bps Credit Credit spreads +100bps with policyholders. USD appreciation +10% Interest Interest rate +50bps Interest Interest rate Equities +20% Equities Equities Equities Actual value Actual - 50bps - 20% 3 3 ppts ) 1,2 Investors' intro pack 2020 pack intro Investors' - 32ppts - 23ppts - 10ppts - 7ppts +0ppts +5ppts +7ppts 32 © Zurich September 2020 September Z INVESTMENTAND CAPITAL MANAGEMENT Tax Senior debt Equivalence Risk types covered Risk measure General information - ECM and SST areconservativemoreand ECM SST than II Solvency Most Most onerous impact Pre capital Available to entire applied Groupthe No concept equivalence, of • • • • • • • (~AA) Value at 99.95%risk Reinsurance Reinsurance credit risk Operational risk Business risk risk Life liability NatCat Premium and reserve risk credit) investment Market (including risk - tax risk Z - ECM Pre Liability to entire applied Groupthe No concept equivalence, of • • • • • • • Expected shortfall 99%(~BBB) Receivables credit risk Receivables Reinsurance credit risk Life risk business risk Life liability NatCat Premium, reserve and UPRrisk credit) investment Market (including risk - tax risk SST Post Liability countries to use Possibility regimes for local third in equivalent subsidiaries • • • • • • • • Internal model (ZIP): Value at (~BBB)99.5%risk Scenarios credit risk Receivables Reinsurance credit risk Operational risk Business risk NatCat Premium, reserve and UPRrisk credit) investment Market (including risk - tax risk SOLVENCYII • • • • • • • Standard formula entities): (other Investors' intro pack 2020 pack intro Investors' Operational Operational risk asset Intangible risk and premium, reserve (including Non risk underwriting Health Life risk underwriting Counterparty default risk Market risk NatCat - life underwriting life risk ) 33 © Zurich September 2020 September 2 1 Z INVESTMENTAND CAPITAL MANAGEMENT Transitional requirements Adjustments to yield curves Ultimate forward rate (UFR) of yield curves Entry point to extrapolation Base for risk Yield curves and - Yield curve Yield parameters as of end March 2020. For EUR GBP and same yield curves are used as under Solvency II. ECM and SST areconservativemoreand ECM SST than II Solvency Most Most onerous impact - free free yield curves transitionals 2 2 None None point datafrom last observable Flat extrapolation years EUR,50GBP:USD, 30CHF: years all market Useavailable data Swaps Z - ECM None - USD:3.45% EUR,3.75%GBP: 2.25%CHF: 50GBP:USD, years 20EUR:years 15CHF: years Government bond (CHF) GBP,Swaps (EUR, USD) credit risk risk credit adjustment: 30bps(USD) SST 1 until until 2032 lasting curves technical yield provisions, and for Various measures, especially transitional matching adjustment + (USD)and 100bps(CHF) 46bpsadjustment: (EUR), 32bpsvolatility + 15bps(USD) GBP) and - USD:3.75% 3.75%EUR,GBP: 2.75%CHF: 50GBP:years USD, 20years EUR: 25CHF:years Swaps credit risk risk credit adjustment: 10bpsCHF,(EUR, SOLVENCYII Investors' intro pack 2020 pack intro Investors' 34 © Zurich September 2020 September 2 1 Moderateleveragewith cover interest Aa levels at INVESTMENTAND CAPITAL MANAGEMENT GROUP CAPITAL CAPITAL GROUP STRUCTURE (%) Estimated Estimated by Zurich Insurance Group. on Based IFRS balance sheet. 2014 76% 13% 12% Senior debt Senior 2015 76% 14% 11% Subordinated Subordinated debt 2016 73% 17% 10% 1 2017 75% 16% 9% Shareholders Shareholders equity 2018 72% 16% 12% 2019 74% 15% 11% MOODY’S FINANCIAL LEVERAGE (%) & EARNINGS EARNINGS COVERAGE & MOODY’S(%)LEVERAGE FINANCIAL 24.3% 2014 9.5 Financial leverageFinancial (Aa = 15 24.1% 2015 6.7 26.4% 2016 9.2 - 30%) 23.7% 2017 Earnings coverageEarnings (Aa = 8 9.3 Investors' intro pack 2020 pack intro Investors' 25.8% 2018 10.1 - 12x) 22.6% 2019 13.2 2 35 © Zurich September 2020 September 2 1 Low ofand cost risk balancedmaturity profile INVESTMENTAND CAPITAL MANAGEMENT CDS SPREAD AMONG BEST OF PEERS PEERS OFSPREAD ( CDS AMONG BEST Maturity Maturity profile based on first call date for subordinated debt and maturity 5y EUR date for CDS.seniorsub Source: debt.Bloomberg. 2020 refinancing needs com 400 600 200 2010 2011 2012 Zurich 2013 2014 Axa 2015 Generali 2016 bps 2017 ) Allianz 1 2018 2019 2020 2021 BALANCED REFINANCING ( REFINANCING NEEDS BALANCED 2020 0.4 0.4 0.3 0.7 pl 2022 eted during Q1 1.6 0.6 2.2 1.1 0.5 1.6 2024 1.1 - 20. 0.3 2026 1.9 0.2 2.0 Senior 0.2 2028 1.0 0.8 1.8 Subordinated USD 0.6 2030 bn 0.2 ) Investors' intro pack 2020 pack intro Investors' 2 2032 0.3 2038 0.2 0.6 36 © Zurich September 2020 September remittance Wea havestrongly generativecash reflectedbusiness in high cash INVESTMENTAND CAPITAL MANAGEMENT FY Expected payout (%) Payout (%) FY Cash remittances ( FY NIAS ( FY BOP ( - - - - 12 12 to FY 20 20 to FY 12 to FY 12 to FY USDbn USDbn - - - - 22 19 19 19 ) ) USDbn ) Property & Casualty Casualty 90% 98% 16.2 16.6 17.8 75% 82% 10.6 Life 6.8 8.4 Farmers 101% 90% 12.7 9.3 9.2 Businesses Non nm nm 1.1 0.2 0.0 - Core Group Functions and Operations - - - nm nm 7.3 6.7 6.6 Investors' intro pack 2020 pack intro Investors' Group 85% 94% 26.2 27.8 34.5 37 © Zurich September 2020 September 2 1 Wefocused arecontinuing onto rewardourshareholders INVESTMENTAND CAPITAL MANAGEMENT DIVIDEND POLICYDIVIDEND Net income attributable to shareholders. Proposed dividend, subject to approval by shareholders. Minimum target Minimum of prior year level increases Dividend based on sustainable earnings growth ratio of NIAS2 payout ~75% 1 DIVIDEND PER SHARE (CHF)PER DIVIDEND SHARE FY 11 - 08 FY 16 - 09 FY 17 - 10 FY 17 - 11 FY 17 - 12 FY 17 - 13 FY 17 - 14 FY 17 - 15 Investors' intro pack 2020 pack intro Investors' FY 17 - 16 FY 18 - 17 FY 19 - 18 +5% FY 20 - 19 38 © Zurich Sustainability © Zurich September 2020 September 4 3 2 1 recognizedby externalbodies Group’sThefocus and achievementssustainability on widely is SUSTAINABILITY OUR RATINGS OUR FTSE Industry Classification Benchmark (ICB), December 2019. Sustainalytics RobecoSAM MSCI ESG Report,Rating Company Benchmarking Scorecard 2019, 99% percentile. ESG rating Report September 2019, 98% percentile. 1 September 2020. #2 Absolute Absolute Score of in insurance in insurance group in insurance in insurance group ‘AA’ Leader, (out of (out of 5.0) rating #4 4 1 4.4 3 2 OUR LONG OUR TERM COMMITMENT Investors' intro pack 2020 pack intro Investors' 40 © Zurich September 2020 September ofin the aspects all business Zurichembedsenvironmental,social and governance issues SUSTAINABILITY COMMUNITY COMMUNITY MEMBER INVESTOR INSURER EMPLOYER GOVERNANCE CORPORATE employees in skills based volunteering Investing in local and global community programs to create social impact, enhance resilience and engage avoid 5m tons of CO2 and benefit 5m people Impact investment portfolio of USD 4.6bn per Dec 2019, with an ambition of USD 5bn to help Proactive engagement with customers to support their transition to a low carbon economy Delivering solutions to customers that create positive social and environmental impact Focus on employee engagement resulting in strong employee net promoter score (ENPS) improvement Pro including financial, customer and people metrics A remuneration architecture ensuring outcomes in sync with business performance results oversight, and fostering ESG integration in the business An independentand diverse Board ensuring corporateeffective governance and strategic - active active promotion of diversity at the workplace with 11 countries EDGE certified Investors' intro pack 2020 pack intro Investors' 41 © Zurich Other important Other important information © Zurich September 2020 September Investinginto Zurich • • • • • • • • SIXEXCHANGE SWISS Trading currency: Trading CHF ZURN.VX symbol: VXsymbol: Equity Bloomberg ZURN CH0011075394ISIN: ( number Swiss security ZURN Ticker symbol: type: Swiss Blue Shares Product Chip SIXSwiss Listing: Exchange, Switzerland Valorennummer ): 1107539 • • • • AMERICAN DEPOSITARY PROGRAM US RECEIPT Website E the outside USA the in USA information: For further ZURVYSymbol: ADR Nature: NewBank Depository: The Mellon of York - mail www.adrbnymellon.com [email protected] 2016806825+1 +1 - 888 - BNY - ADRS Investors' intro pack 2020 pack intro Investors' 43 © Zurich September 2020 September furtherForinformation Patricia Patricia Heina Events Gianni Vitale Michèle Matlock Samuel Han Francesco Bonsante Richard Burden and Rating AgencyInvestor Relations Management CALL US +41 44 625 38 44 +41 44 625 48 26 +41 44 625 28 50 +41 44 625 32 57 +41 44 628 00 68 +41 44 628 96 40 VISIT OR FOLLOW US FOLLOWORVISIT   Follow Follow us Financial results and reports Investor Relations website Investors' intro pack 2020 pack intro Investors' 44 © Zurich September 2020 September ANDCOMPANYTHEABOUT DETAILED INFORMATION CONTAIN WILL THATAND OF SECURITI ANY OFFERING PUBLIC ANDREGISTRATION, EXEMPTIONFROM S FOR SECURITIES OF OFFER ANCONTAIN NOT DOES COMMUNICATION THIS INVITATION AN OR OFFER ANCONSTITUTENOT DOES COMMUNICATION THIS ADVISER.INDEPENDENT ANCONSULT SHOULD ADVICE REQUIRING PERSONS FUTUR TO A IS GUIDE NOT PERFORMANCE PASTBE THAT NOTEDSHOULD IT COMPANY. FARMERSREINSURANCE GROUP,AND INC. FARMERS IS EXCHANGESFARMERS THE ABOUT INFORMATION FINANCIAL EXCHANGES. PARENT NORITS COMPANIES GROUP,INC., FARMERS NEITHER EXCHANGES. ASATTORNEYSTHE APPOINTEDARE SUBSIDIARIES ITS INTER DOMICILED CALIFORNIA AREEXCHANGES EXC INSURANCE FARMERS MEAN EXCHANGES” “FARMERS TO REFERENCES ALL FORWARD OR REOF WAYLEGISLATIVE BY AMENDED RETROACTIVELYARE CONDITIONS LITIGATION PO INSURANCE EXCLUSIONS)OF APPLICABLE(IN PARTICULAR CONDITIONS WITH COVID THERELATION OPERATION OF RESULTSONTHEBEARING A DIRECT MAYHAVE REGULATORS INCREAS (VIII) RATES; LAPSE ANDPOLICY (VII) RENEWAL EXPERIENCE; EX CURRENCY AND RATES INTEREST (IV) OF LEVELS MARKETS;FINANCIAL MARKETS;KEY PARTICULARLY IN FACTORS, COMPETITIVE AND CONDITIONS EXPRESSEDTHOSE FROM MATERIALLY DIFFER GROUP TO THE OR GROUPLTD CAN AND UNCERTAINTIES RISKS AND UNKNOWNAND KNOWN TO SUBJECTARE AND CONDITIONS MARKETINSURANCEANDFINANCIAL ECONOMIC, GENERAL CONDITIONS, DIVIDEND EXPENSES,PRICING TARGETS, ONEQUITY RETURN INSURA ZURICH THE OR GROUPLTD INSURANCE ZURICH OF OBJECTIVES OR FORWARD ARE THIS IN DOCUMENT STATEMENTSCERTAIN Disclaimer - OKN TTMNS WEHR ORFET NEW INFORMATION, REFLECT TO WHETHERSTATEMENTS, LOOKING - RELATED DEVELOPMENTS AFFECTING THE EXTENT OF POTENTIA OF THEEXTENT AFFECTING DEVELOPMENTSRELATED - 9RLTD TTMNS SC TTMNS W SUCHSTATEMENTS STATEMENTS,19 RELATED - NUAC ECAGS OWN EXCHANGES INSURANCE - IN - FACT FOR THE FOR FACT - LOOKING STATEMEN LOOKING ED LITIGATION ACTIVITY AND REGULATORY ACTIONS; AND (IX) CHANGES(IX) AND ACTIONS; REGULATORY ANDACTIVITY LITIGATION ED AMR ECAGS N NTA AAIY RVD ETI NON PROVIDE CERTAINTHAT IN CAPACITY AND EXCHANGES FARMERS CHANGE RATES; (V) FREQUENCY, SEVERITY AND DEVELOPMENT OF INSURED OF DEVELOPMENT AND SEVERITY (V)FREQUENCY, RATES;CHANGE LICIES AS WRITTEN AND INTERPRETED BY THE GROUP AND MAY BE SUBJECBEMAY AND GROUP BYTHE INTERPRETEDAND WRITTEN LICIES AS POLICY AND UNDERWRITING AND CLAIMS RESULTS, AS WELL ASWELLSTATEMEN ASRESULTS, CLAIMS AND POLICY UNDERWRITINGAND (THEFORWARD GROUP). GROUP NCE ES TO BE MADE IN THE WILL BE MADE BY MEANS OF A OF PR BYMEANS BE WILL MADE STATESUNITEDTHE MADEIN BE TO ES NOT ARENEC RESULTS THATNOTE INTERIM ALSO PLEASE PERFORMANCE. E GROUPLTD, H INSURANCE ZURICH AND LTD COMPANYINSURANCE ZURICH , UAOY CIN UIHISRNEGOPLDUDRAE NOOBLIGA UNDERTAKESLTDINSURANCE GROUP ACTION. ZURICH GULATORY EXPOSIN POTENTIALLY OR THE OF GROUP MEMBERBY COVEREDA LOSSES L S IN FINANCIALTHEDOWNTURN, ECONOMIC A OF GLOBALTHE (II) RISK ALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD OR BEOFFERED NOTMAY SECURITIES STATES;UNITEDTHE ALEIN S OF ZURICH INSURANCE GROUP LTD AND ITS GROUP AND ON WHETHER THEWHETHERON GROUP AND ITS AND GROUPLTD INSURANCE ZURICH OF S PROPRIETARY TO THE FARMERS EXCHANGES, BUT IS PROVIDED TO SUPPORT TO PROVIDED IS BUT EXCHANGES, FARMERSTHE TO PROPRIETARY R AE NTEBSSO ICMTNE PEALN T ETI T ACERTAIN AT PREVAILING CIRCUMSTANCES OF BASIS ONTHE ERE MADE OR IMPLIED IN IN FORWARD THEIMPLIED OR FOR THE SALE OR PURCHASE OF SECURITIES IN JURISDICTION. IN ANY SECURITIES PURCHASEOF OR SALETHE FOR EXPECTED DEVELOPMENTS. UNDUE RELIANCE SHOULD NOT BE PLACED ON SU ON BEPLACED NOT SHOULD RELIANCE UNDUE DEVELOPMENTS.EXPECTED HANGE, FIRE INSURANCE EXCHANGE, TRUCK INSURANCE EXCHANGE AND THE AND EXCHANGE INSURANCE TRUCK EXCHANGE,INSURANCE FIRE HANGE, ED BY THEIR POLICYHOLDERS WITH GOVERNANCE OVERSIGHT BY THEIR BOA BYTHEIR OVERSIGHT GOVERNANCE WITH THEIR POLICYHOLDERS ED BY S ICUIG U O IIE O TTMNS THATPREDICTIO ARE TO, STATEMENTS NOT BUTLIMITED INCLUDING, TS, MANAGEMENT, AS WELL AS FINANCIAL STATEMENTSFINANCIALASWELL ASMANAGEMENT, OR OTHERWISE. CIRCUMSTANCES OR EVENTSFUTURE EAFCE B TE ATR HT OL AS CUL EUT AN RESULTSCAUSEACTUAL COULD THATFACTORS BY OTHER BEAFFECTED - LOOKING STATEMENTS (OR FROM PAST RESUPAST FROM (OR STATEMENTS LOOKING - LOOKING STATEMENTS INCLUDE STATEM INCLUDE STATEMENTS LOOKING IN LAWS AND REGULATIONS AND IN THE POLICIES OF IN POLICIES THE AND REGULATIONSAND LAWS IN - CLAIM ERVICES INDUSTRIES IN PARTICULAR; (III) PERFORMANCEOF (III) PARTICULAR; INDUSTRIESIN ERVICES IN THE UNITED STATES ABSENT REGISTRATION OR OR REGISTRATION ABSENT STATESIN UNITEDTHE ORGLTR, EILTV, OENETL AND GOVERNMENTAL LEGISLATIVE,REGULATORY, TO T OSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER THE FROM OBTAINED MAYBE THAT OSPECTUS CLAIMS EVENTS; (VI) MORTALITY AND MORBIDITY MORBIDITY AND (VI) MORTALITYEVENTS; CLAIMS S SERVICES AND ANCILLARY SERVICES TO THE FARMERSTHE TO SERVICES ANCILLARYANDSERVICES S TS REGARDING THE GROUP’S UNDERSTANDING OF OF GROUP’S THEUNDERSTANDING REGARDING TS SAIY NIAIEO UL YEARRESULTS.FULL OF INDICATIVE ESSARILY IME AND ON THE BASIS OF SPECIFIC ANDTERMSSPECIFIC OF BASIS ONTHE AND IME AVE ANY OWNERSHIP INTEREST IN IN FARMERSTHEINTEREST ANY OWNERSHIP AVE G THE GROUP TO ADDITIONAL LOSSES IF TERMS OR OR TERMS IF LOSSES ADDITIONALGROUP TO G THE SO RIDCT UUE VNS TED, PLANS TRENDS, EVENTS, INDICATE FUTURE OR NSOF LTS). FACTORS SUCH AS ( SUCHAS FACTORS LTS). AN UNDERSTANDING OF THE PERFORMANCE OF OF OF PERFORMANCETHE UNDERSTANDINGAN THESE ANYOF UPDATEREVISE PUBLICLYOR TO TION ENTS REGARDING THE GROUP’S TARGETED PROFIT, PROFIT, THETARGETEDGROUP’S REGARDING ENTS AGT WL EAHEE. SPECIFICALLY IN ACHIEVED.BE WILL TARGETS RDS OF GOVERNORS. FARMERS GROUP, INC. AND INC. GROUP, FARMERS OF GOVERNORS.RDS INSURANCE ZURICH OF OBJECTIVES PLANSAND D IR SUBSIDIARIES AND AFFILIATES. THE THREETHE AFFILIATES. AND SUBSIDIARIES IR HSAEET BCUE B HI AUE THEYTHEIRNATURE, BY BECAUSE, CHSTATEMENTS Investors' intro pack 2020 pack intro Investors' I ) GENERAL ECONOMIC ) ECONOMIC GENERAL 45 © Zurich Insurance Company Ltd