Investor Day – Delivering and building for the future
December 5, 2018 London
Zurich Insurance Group © Zurich December December 5, 2018 Agenda 15:20 15:20 14:25 13:30 12:15 11:30 11:00 10:30 10:00 09:30 TIME (GMT) – – – – – – – – – 16:05 15:10 14:15 13:15 12:15 11:15 11:00 10:30 10:00 Break Coffe Q&A targets track our on to deliver Well the for future building and Delivering TOPIC Break Break out session 4 Break out session 3 Break out session 2 break Lunch e e break out session out session 1 North America, Switzerland, Australia NorthAmerica, Australia Switzerland, Ireland teams and North America, Switzerland, Australia and Ireland teams NorthAmerica, Australia Switzerland, Ireland teams and NorthAmerica, Australia Switzerland, Ireland teams and George Quinn Greco Mario SPEAKER Investor Investor Day 2 © Zurich December December 5, 2018 FINANCIAL APROSPECTUS MAYTHATBE OBTAINED FROM THE ISSUER ANDTHAT WILL CONTAINDETAILED INFORMATION ABOUT THE COMPANY ANDMANAGEMENT ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION, ANDANYPUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITEDSTATES WIL THIS COMMUNICATION DOES NOT CONTAIN OFFER AN OF SECURITIES FOR SALE IN THE UNITEDSTATES; SECURITIES MAYNOT BEOFFERED OR SO This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction. Persons requiring advice should consult an independent adviser. It should be noted that past performance is not a guide to future performance and that interim results are not necessarily in performance of Farmers Group, Inc. and Farmers Reinsurance Company. in the Farmers Exchanges. Neither Farmers Group, Inc., nor its parent companies, Zurich Insurance Company Ltd and Zurich Insuran its Exchanges are California domiciled interinsurance exchanges owned by their policyholders with governance oversight by their B All references to ‘Farmers Exchanges’ mean Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and publicly update or revise any of these forward results of operations of Zurich Insurance Group Ltd and its Groupand on whether the targets will beachieved. Zurich Insuran and morbidity experience; (vii) policy renewal (iii) performance of financial markets; (iv) levels of interest rates ( Zurich nature, they are subject to known and unknown risks and uncertainties and can beaffected by other factors that could cause a of general economic, financial and insurance market conditions and expected developments. Unduereliance should not be placed profit, return on equity targets, expenses, pricing conditions, dividend policy and underwriting and claims results, as well plans Certain statements in this document are forward Disclaimer i) i) general economic conditions and competitive factors, particularly in key markets; the Farmers Exchanges. Financial information about the Farmers Exchanges subsidiaries are appointed as the attorneys or objectives of Zurich Insurance GroupLtd or the Zurich Insurance Group (the ‘Group’). Forward Insurance GroupLtd or the Group to differ materially from those expressed or implied in the forward looking statements (or f STATEMENTS. - - and in looking statements, whether to reflect new information, future events or circumst - - fact for the Farmers Exchanges and in that capacity provide certain looking statements, including, but not limited to, statements that are predictio lapse rates; and (viii) changes in laws and regulations and in the policies of regulators may have a direct bearing onthe and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality is is proprietary proprietary to the Farmers Exchanges, but is provided to support an understanding of the ( ii) ii) the risk of a global economic downturn, in the financial services industries in particular; - looking statements include stat non - claims as statements statements regarding the Group’s understanding dic ce ctu ative of full year results. administrative and management services to oar ce Group Ltd undertakes noobligation to ns of or indicate future ances or otherwise. the al results and plans and objectives of Group Ltd, have any ownership interest on ds ir ir subsidiaries and affiliates. The three rom such statements because, by their of ements ements regarding the Group’s targeted Governors. Farmers Group, Inc. and past results). Factors such as LD L B IN THE UNITEDSTATES E MADEMEANS BY OF events Investor Investor Day , A , , , trends, S WELL AS 3 Strategic update – Delivering and building for the future
Mario Greco, Group Chief Executive Officer © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 Keymessages the the next phase Preparing for focus Customer footprint More focused portfolio mix Improving future Fit for the We are now ready to start a new phase and are positioned to deliver future earnings growth earnings future deliver to positioned are and phase a new start to ready are now We growth profitable drive and relationships customer ourto deepen offerings expandingservice and capabilities our are strengthening We non from capital releasing while acquisitions targeted through markets attractive in positions leading have built We volatility lower as as well growth earnings support will mix business of our rebalancing The dividend growingand attractive an support generation cash and sheet balance strong our restored; have been efficiency and discipline targets; financial ouron delivering are fully We - core operations core Investor Investor Day 5 © Zurich STRATEGIC STRATEGIC December December 5, 2018 1 We are delivering on ourtargets 2017 Ratio as ofSeptember 30, 2018. estimate Reflectsmidpoint +/ an error with margin of - 2019 2019 TARGETS UPDATE DIVIDEND CASH REMITTANCES Z EXPENSE SAVINGS BOPAT ROE - ECM >USD >USD 9.5bn 100 USD 1.5bn >12% and increasing NIAS NIAS payout ~75% Minimum CHF 18 - 120% - 5%. STATUS CHF CHF 18 for FY >USD 134% at USD 1.1bn at FY 12.3% at HY 7bn in 2017 9M - - 18 18 - 17 1 - 18e - 18e Investor Investor Day 6 © Zurich STRATEGIC STRATEGIC December December 5, 2018 We look different to the company we were in 2016 FROM UPDATE Balance sheet Dispersed footprint Product Complex Group - based provider company structure TO Strong Increased Empowered local units Strong Focused Customer Disciplined management team capital capital base and service offering - led execution balanced company footprint Investor Investor Day 7 © Zurich STRATEGIC STRATEGIC December December 5, 2018 2 1 and relative terms We havesignificantly reduced expenses both in absolute BREAKDOWN OF EXPENSE SAVINGS Seven peersSeven comparable based (4 the2 in U.S., based inEurope, 1 in APAC). available, expenses or,ifOther underwriting not time,administrative over expenses evolution curren peerbased reporting on USD 10.3bn USD UPDATE Group Cost base Cost FY 31% 59% 11% - 15 Business Units Business USD 1.1bn USD Operations FY 38% 42% 20% Cumulative Cumulative savings net - 18e (%) Rest of periodRest of USD 0.4bn USD ~45% ~35% ~20% P&C OTHER UNDERWRITING
Saving Increasing 100 105 110 115 70 75 80 85 90 95 FY - 15 Zurich ci es. Peers EXPENSES 2 FY - 16 (INDEXED (INDEXED TO 2015) Investor Investor Day FY - 17 1 8 © Zurich STRATEGIC STRATEGIC December December 5, 2018 2 1 businesses Our portfolio hasa growing exposure to lower volatility BOP SPLIT BY BUSINESS Including Farmers Life. Including Management Farmers Services Farmers and Includes Re. UPDATE Farmers FY 1 46% 25% 29% - 16 Life (%) 2 P&C HY 42% 31% 27% - 18 P&C NEP BY CUSTOMER UNIT Retail &Other FY 45% 55% - 16 Commercial (%) HY 40% 60% - 18 Investor Investor Day 9 © Zurich STRATEGIC STRATEGIC December December 5, 2018 3 2 1 commercial portfolio and support an improved combined ratio Changes to new business mix are steadily improving our NEW BUSINESS GWP Average Average facultativeceded pools/co captives reinsurance, and for premiums Excluding premiumsExcluding ceded for facultative reinsurance,captives and pools/co Specialties FY 50% 22% 27% of FY - 16 UPDATE - 16, FY - 17 HY and Property FY 26% 29% 45% - 17 (%) - 18, weighted by NEP. Based on a normalized level catastrophes. level of anormalized Based on NEP. by 18, weighted 1 Casualty HY 30% 34% 36% - 18 TOTAL GWP Specialties FY 50% 25% 25% - - - reinsurance agreements. reinsurance agreementsreinsurancecorporate forbusiness in EM 16 (%) 2 Property FY 49% 25% 26% - 17 Casualty HY 41% 28% 30% - 18 EA and APAC.EA AY AY COMBINED RATIO Casualty Property - 10ppts (%) Investor Investor Day 3 Specialties 10 © Zurich STRATEGIC STRATEGIC December December 5, 2018 1 the more developing markets of APAC and Latin America Our Life business is growing and iscashgenerative, including in LIFE BOP Impact of the change tocapital the change UK gains tax indexation of Impact relief. UK, Ireland & Zurich InternationalUK, Ireland & & Latin America APAC UPDATE FY 1,111 (USDm) 592 323 237 - 42 - 15 FY 1,130 +6% 307 326 582 - 85 - 16 North America North Continental Europe FY 1,258 226 606 428 - - 2 17 1 FY - 18e APAC AND LATIN AMERICA CASH REMITTANCES FY 33 - 15 FY 63 - 16 FY 114 - 17 Investor Investor Day FY - 18e (USDm) 11 © Zurich STRATEGIC STRATEGIC December December 5, 2018 2 1 We havea leading market position in Lifeprotection HY Pro Source: FY - - 17 or most recently available17 ormost recentlyfor Ireland.new Ireland policies Australia and GWP, Basedperiod. on market sharesrefer to In - 18 18 LIFE NBV BY PRODUCT forma of Zurich forma ABI, FECU ABI, Protection savings and pensions Corporate Unit Annuity Savings & UPDATE 78% - linked , ICEA, and One Path One Life and Susep - 1% , SVV 16% , Swiss , deal yet not completed. 7% Re. (%) PROTECTION MARKET SHARE
5-10% 10-20% ≥ 20% 2 (%) 1 dividual Protection. dividual STRONG FRANCHISE AND FINANCIALS (HY Internal rate of return # # of customers of underwriters - 18) Investor Investor Day >15% >40m ~400 12 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 2 1 attractive dividend payout Our very strong capital position and cash generation support an CAPITAL STRENGTH Cumulative Cumulative FY Ratio as ofSeptember 30, 2018. estimateReflectsmidpoint +/ an error with margin of S&P S&P financial strength rating Z - ECM, 9M - 15 to FY - 18 (%) - 17, based on cash remitted and dividend intheyear.17, dividend paid cash basedand remitted on 1 stable 134% AA - - 5 %. CASH COVER OF DIVIDEND Cash remittance 10.3 (USD bn Dividends paid Dividends ) 2 8.0 Investor Investor Day 13 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 3 2 1 Geographic refocus on countries with high potential WE HAVE ACHIEVED LEADING POSITIONS IN ATTRACTIVE MARKETS… New South Wales Compulsory Third Party Wales liability. South Compulsory New a On pro a On pro - - forma basis,forma deal yet not completed. basis, takes Life)and forma deal Theranking refers yet not completed. Group intoac Individual (#3 Life to including P&C Life P&C Life Travel Crop Deals Deals announced Change in ranking in Change n.m. n.m. n.m. 6 4 8 #6 #2 #1 #1 #2 #2 2 1 count TAL’s acquisition of SunCorp Life. Life. of SunCorp TAL’s acquisition count NON …WHILE EXTRACTING CAPITAL FROM 2018 2017 - STRATEGIC BUSINESSES Venezuela Life P&C and CTP NSW Endsleigh Singapore life portfolio portfolio legacy malpractice Medical savings and pensions Workplace book annuity Closed Taiwan P&C East Middle P&C 3 run - off Investor Investor Day 14 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 We are building a customer centric organization COMPANY… IN 2016 WE CHOSE TO BECOME A CUSTOMER balance sheet sheet balance provider customer Manufacturer Manufacturer and Owner of the of the Owner relationship market success success market Higher ROEs and consolidation Low ROEs and eventual - LED …WHICH …WHICH REQUIRES DEEPENING CUSTOMER RELATIONSHIPS CAPTURE KNOW Investor Investor Day CAPTIVATE 15 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 3 2 1 Customer LOWER LOSS RATIO HIGHER RETENTION Based on Based on Retention provides interestin the Farmers Farmers ownership Exchanges. has no Group Zurich Insurance foronly. Provided informational purposes Auto (%) Auto the company with ratiotenureLoss by retention Household certain non certain n (%) based a on rolling 3 month average 13/1 survival combined et promoter score (NPS) surveys. Detractors (score 0 (score surveys. Detractors(NPS) score et promoter 2 – - claims administrative servicesthe Farmers andmanagement as to Exchanges its attorney Up to 2 to Up years loyalty leads Detractors 3 2 - 5 years 1.2x Promoters 5+ years to higher profits 3 - 6), 9 (score Promoters rate. - 10). 1 1 LOWER HIGHER PRODUCT DENSITY ratio (%) Commission per customer # of products - ACQUISITION in - fact and receivesand feesfactfor New business New Motor Gr 3x Detractors oup, Inc., a wholly owned subsidiary of the subsidiary owned a Inc., wholly oup, COSTS 1.6 its 3 services. Property/Liability Retained business 1.6x 2x Promoters 2.6 3 Investor Investor Day Group Life Group 2x Group, Group, 16 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 3 2 1 Our focus on customers yielding is positive results NET PROMOTER Transactional net promoter score for the specific touchpoints. the specificnetforTransactional promoter score See slide1 on 16 footnote September EMEA +7 2018 trailing 12 months America SCORE North +12 . (Y average. Farmers change For Exchanges - O America - Latin Y CHANGE) +5 Pacific 1 Asia +8 +3 in 9M 2 - 18 9M vs. - 17 . EXAMPLES OF ACTIONS TAKEN AND IMPACT ON TNPS and streamlined streamlined and model repair Increased claims communication repair approval process car digitalized Revamped and improvements website Care center and training times waiting call Reduced Investor Investor Day +10ppts +11ppts +8ppts +6ppts 3 17 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 capture a higher share of New Zurich Customer Active Management (ZCAM) unit helps INTEGRATED INTO EXISTING CRM GENERATE PERSONALIZED INSIGHTS IN REAL TIME, Examples Examples data one from sample buy family family insurance buy 26% propensity Customers also Motorpurchase 72% of customers with own accident insurance also also insurance accident own of customers with insurance house family of customers withand with an SUV an have the with to buy life policies for their their for families life policies to buy TOOLS highest customer and distributor CHANNELS CUSTOMER SINGLE VIEW WITH INSIGHTS TO DISTRIBUTION VIA ROMA, 184 ID: ABC123K00P999L A10099904Q B1234567P value Investor Investor Day 18 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 1 customer experience We are See See slide1 on footnote Smart Home/ Smart building building out ourservice offerings to Property Wellcare Mobility Cyber 16. customers Prevent protect our and to Empower customers more convenient and Make customers’ homes safer vehicles commuters make and their great Support drivers and live live properties properties safer and healthier from cyber attacks ACTIVE COLLABORATIONS 1 insurance in 2017 in insurance ~USD 100m GWP in cyber ~AUD 47m 2017 revenues in devices ~74m connected with IoT, leader Global in Across>20 states drivers connected~1.2m improve improve IN DEVELOPMENT Investor Investor Day 19 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 3 2 1 distribution agreements and innovation We continue toenhance our access to customers through new WE HAVE ADDED FURTHER DISTRIBUTION AGREEMENTS… See See slide1 on 16. footnote yet. agreementof the partOnePath Distribution closed not acquisition,Life announced agreementsDistribution Partner: Penetration of ~20% Penetration 2 Country / Scope:/ Country in thelast 12 in our existing major major agreements our existing in months. Customers: ~13.5m ~2.9m ~2.5m ~1.5m ~3m ~6m 1 MILLENNIALS AND SME …AND DEVELOPED INNOVATIVE APPROACHES TO TARGET s 3 Investor Investor Day 20 © Zurich STRATEGIC STRATEGIC UPDATE December December 5, 2018 Keymessages the the next phase Preparing for focus Customer footprint More focused portfolio mix Improving future Fit for the We are now ready to start a new phase and are positioned to deliver future earnings growth earnings future deliver to positioned are and phase a new start to ready are now We growth profitable drive and relationships customer ourto deepen offerings expandingservice and capabilities our are strengthening We non from capital releasing while acquisitions targeted through markets attractive in positions leading have built We volatility lower as as well growth earnings support will mix business of our rebalancing The dividend growingand attractive an support generation cash and sheet balance strong our restored; have been efficiency and discipline targets; financial ouron delivering are fully We - core operations core Investor Investor Day 21 Finance update – Well on track to deliver on our targets
George Quinn, Group Chief Financial Officer © Zurich FINANCE FINANCE UPDATE December December 5, 2018 Keymessages shareholders Rewarding management Capital growth in Life High quality profitability Increasing P&C targets Delivering our Focused on delivering an attractive and growing dividend growingand an attractive delivering on Focused returns enhance and strategy our support to way focused and disciplined a in investing non from capital further release to options reviewing are actively We further contributioncash the growingwhile unitand protection on focus Our profitability increasing while volatility reducingis underwriting anddisciplinedP&C in mix Changingbusiness targets financial Group all on deliver to track On - linked continues to support high quality growth in Life BOP, Life in growth quality high support to continues linked - core businesses while businesses core Investor Investor Day 23 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 3 2 1 businesses contributing Well on track to achieve all2017 Continuing operations only. only. See operations Continuing Ratio as ofSeptember 30, 2018. estimateReflectsmidpoint +/ an error with margin of Business GWP GROWTH FARMERS EXCHANGES PROFIT GROWTH LIFE BUSINESS OPERATING REDUCTION P&C COMBINED RATIO Operating Operating Profitaftertax losses excluding unrealized gains and equity, on return footnote slide 1 on 3 +4% p.a. +6% p.a. 16. HY FY FY - 6ppts - - - 17 vs FY 17 vs FY 18 FY vs - - - 15 15 15 - 2019 - 5 %. . targets, with all FY - REMITTANCES REMITTANCES 17 &FY 12.3% HY CUMULATIVE CASH CUMULATIVE >7.0 3.7 BOPAT BOPAT ROE - 18 - 18e 2017 (USDbn) > Target Target (%) 12.0% > 9.5 - 1 2019 FY - 2016 16 - FY EXPENSE SAVINGS SAVINGS EXPENSE Target - 2019 - 18e Q3 134% CUMULATIVE NET CUMULATIVE Z - - 18 ECM Ratio ECM Investor Investor Day Target range 100% 120% (%) ( ~ USD 1,100 2 m 1,500 ) 24 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 2 1 Unchangedattractive ROE development ILLUSTRATIVE BOPAT ROE DEVELOPMENT Including Including relief.indexation FY - 17 Irma Maria,recognized adjustedHarvey, of the and for hurricanes relatedthe impact chargesrestructuring tothe Group’s FY 12.1% - 17 expected impact of OnePath in impact expected acquisitionLife 1 and marketand equity base equity Growth in Growth impacts 1.5 - 2% OnePath Life acquisition) Farmers growth 0.5 Life & (incl. (incl. - 1% 2 improvement Loss ratio ~0.5% Australia, Expense ~1.75% savings (%) subject to regulatory approval to regulatory subject ~0.5% US taxUS allocation / Other Capital ~0.5% illustrative . ~14% 2019 OnePath Life closure of closure impact of impact Potential delay delay in ~ 0.5% illustrative 2019 through BOP and the change tocapital andthe the change UK gains BOP tax through operating items 0 Non - 1% - Venezuela Disposal ~1% NIAS ROE NIAS Investor Investor Day 12% 25 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 1 P&C combined ratio is improving with reduced volatility CATASTROPHES REDUCTION IN AY COMBINED RATIO EXCLUDING Volatility is measuredand ratiothe indicatedlowest as period. for differencebetweenhighest 100.0% FY - 15 (%) - 3.5ppts 97.3% FY - 16 96.5% FY - 17 2016/2017/2018 2014/2015 LOWER LARGE Q1 Q1 - 16 - 14 Q2 - 16 Q2 - Q3 LOSS 14 - 16 Q3 Q4 VOLATILITY - - 14 16 Q1 Q4 - 2ppts 8ppts 17 - 14 Q2 - 17 Q1 Q3 ( - p 15 - pts 17 Q4 Q2 ) 1 - - 17 15 Q1 - Q3 18 Investor Investor Day - 15 Q2 - 18 Q4 Q3 - 15 - 18 26 © Zurich FINANCE FINANCE December December 5, 2018 1 We are achieving the top UNDERLYING P&C PRIOR YEAR RESERVE DEVELOPMENT Underlying PYD (prior year reserve development) excludes impact from the UK Ogden of Ogden year from reserverate PYD theUK change (prior development) impact Underlying excludes UPDATE H1 1.6% - 16 H2 2.0% - 16 - H1 2.6% end of our PYD guidance - 17 (% OF NET EARNED PREMIUMS) H2 1.8% - 17 - 1.6ppts inH1 H1 - 2.5% 17. - 18 1 1.0% 2.0% Average favorableAverage PYD Ogden excl. 2.1% Investor Investor Day 27 © Zurich FINANCE FINANCE December December 5, 2018 1 optimizing combined ratio and overall return We continue P&C BUSINESS AND GEOGRAPHICAL MIX Calculated as allocated capital divided Calculated as net allocateddivided earnedby capital premium. Workerscompensation Liability Motor Property Specialties FY UPDATE 10% 21% 28% 27% 15% - 15 HY 16% 27% 27% 20% 9% - to focus 18 EMEA America North APAC Latin America 7% FY 49% 39% on - 15 5% (% NEP) changing the business HY 47% 37% 8% 8% - 18 INDICATIVE INDICATIVE PERFORMANCE 2018 OF P&C BUSINESSES 100% AY Combined AY ratio (%) 0% APAC Capital intensity ratio (%) 2% EMEA mix America North 4% and on 1 8% America Latin 10% 12% Investor Investor Day income yield yield income (%) Investment 28 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 2 1 retention ratio and lower activation costs at the same time Through our customer focus approach we expect to increase the NET PROMOTER SCORE Activation costs include commissions and and salesadditional activitiesas commissions well ascosts. include other costs Activation touchpoints. specific netforTransactional promoter score FY 43 - 17 1 HY 55 - 18 P&C RETENTION RATES FY 79% - 16 FY 80% - 17 (%) HY 82% - 18 BUSINESS LOWER COSTS FOR RETAINED Activation costs per lead costs Activation Motor TPL Motor New business New >4x Household >2x Retained business (EUR) Investor Investor Day 2 Liability >2x 29 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 2 1 by both revenue growth and higher efficiency Life business generates sustainable annual BOP growth, driven LIFE BOP Acquisition costs and and FY costs Acquisition the of Impact APAC & Latin America APAC FY 1,130 582 307 326 - 85 - 16 ( USDm change tocapital the UK change gains tax indexation +11% - ) 115 FY 1,258 606 341 428 - 17 one - 17 - 2 - off impact of the change to the UK capitalto the UK gains tax indexation oftheimpact change reliefoff are notincluded. UK, Ireland & Zurich InternationalUK, Ireland & HY 360 166 250 - 17 - 18 relief. REVENUES Continental Continental Europe FY 1,958 1,264 1,386 4,670 61 - (USD 16 m +8% ) North America North FY 2,003 1,256 1,658 5,064 147 - 17 One - off 1 OPERATING FY 1,419 589 390 393 47 - 16 EXPENSES - 3% Investor Investor Day (USD FY 1,373 520 332 442 79 - 17 m ) 2 30 © Zurich FINANCE FINANCE December December 5, 2018 important important drivers of Life revenues all regions in Loadings and fees together with technical margins are the most (USD APAC & LATIN AMERICA REVENUES m ) UPDATE Other loadings and fees and Other loadings BY BY MARGIN FY 1,386 59% 22% 14% 4% - 16 FY 1,658 26% 13% 57% 3% (%) - 17 Unit 83% - linked fees Technical MarginTechnical BY BY MARGIN INTERNATIONAL UK, IRELAND AND ZURICH FY 1,264 43% 37% 16% 4% - 16 Investment Margin (%) REVENUES FY 1,256 41% 39% 18% 3% - 17 (USD 80% m ) (USD CONTINENTAL EUROPE m ) FY BY BY MARGIN 1,958 55% 13% 16% 15% - 16 FY 2,003 52% 15% 14% 19% (%) - 17 Investor Investor Day REVENUES 67% 31 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 2 1 expected continueto Underlying favorable development across all Life businesses Acquisition costs and and FY costs Acquisition = Unit UL APAC & LatinAPAC International UK, & Ireland Continental REGIONS America Europe - Zurich linked. - 17 one - off impact of the change to the UK capitalto the UK gains tax indexation oftheimpact change reliefoff are notincluded GWP & GWP deposits & GWP deposits GWP & GWP deposits KEY KEY DRIVERS AND EXPECTED 10,243 10,997 FY FY FY 3,624 - - - 16 16 16 13,626 FY FY FY 9,949 4,309 (USDm) (USDm) (USDm) - - - 17 17 17 Trend Trend +11 Trend +3% +2% % Loadings / Loadings / Loadings / fees ratio fees ratio fees ratio fees ~ ~10% ~4% 21 TRENDS AND MARGINS BY REGION % UL AuM UL AuM Non 43,298 91,365 FY FY FY 6,240 - UL reserves UL reserves - - - 16 16 16 (USDm) (USDm) 48,795 82,269 FY FY FY 6,748 1 1 (USDm) - - - 17 17 17 1 . Trend Trend Trend +5 +2 + 6 % % % Technical UL UL fees ~0.6% ~0.6% ratio ratio ratio ~6% fees Operating costs costs Operating costs Operating costs Operating FY FY FY 589 390 393 - - - 16 16 16 Investor Investor Day FY FY FY 520 332 442 ( ( (USDm) USDm USDm - - - 17 17 17 ) ) 2 2 2 Trend Trend Trend +2 + +7 2% % % 32 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 2 1 Highly cashgenerative nature of our Life business NEW BUSINESS VALUE VALUE IN FORCE Expected Expected changes Certainty FY FY FY FY undiscounted net cashflows undiscounted net cashflows undiscounted - - - - 17 16 17 16 in 2017. undiscounted undiscounted equivalent includes acquisition costs and excludes cost of capital, cost excludes and costs acquisition equivalent includes Certainty equivalent PV Certainty equivalent PV Real Real - - world expected world expected world Reported NBV Reported VIF net (USD of tax profit releasedof tax profit by the in bn ( USDbn 2 2 1 1 ) ) 6.8 0.8 8.6 1.0 9.3 1.1 10.9 1.2 - force business estimatedestimatebusinessbest real force using economic world 15.2 1.8 2.1 18.8 non >2x >2x - hedgeable hedgeable risk guarantees. andtimeand value 2016 of options to reflect basis comparable on LIFE NET CASH REMITTANCES assumptions. Expected Expected > USD 1.0bn 2018 - (USD 2021 p.a. for bn ) Investor Investor Day methodology methodology 33 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 2 1 Good performance of our closed M&A transactions RCIS ACQUISITION Includes acquisitions in Ireland 2018.Latin America,closed in UKand acquisitions Includes Australiaand retailannual for (APE) theacquired fr Zurich equivalent Aggregatedpremium lifebusiness protection insurance excluding catastrophes catastrophes excluding AY combinedRCISratio FY 83% - 16 FY 80% - 17 (%) FY - 18e MACQUARIE LIFE ACQUISITION Post Pre Life Zurich Australia APE Total for Q1 Q1 - - 15 acquisition - - 17 acquisition Q3 - 15 Q3 - 17 +1% +9% Q1 - 16 Q1 - (AUDm) Q3 18 - 16 1 om Macquarie Life. Macquarie COVER Cover - FY More sales More - MORE - 16 ACQUISITION (USDm) +30% FY - 17 Investor Investor Day HY - 18 2 34 © Zurich FINANCE FINANCE December December 5, 2018 1 FX SPLIT ARGENTINA ASSET AND LIABILITY As of September30, As 2018. unit Excludes Assets Liabilities risk in (%) UPDATE 1 USD 58% 63% our LatAm Non - USD 37% 42% - linked assets liabilities.and business well managed ARGENTINA FX MANAGEMENT USD long USD position Dec - - 16 Dec - 17 Sep - 18 COMMENTS duration of investment portfolio position and shortening include taking Balance sheet protection measures capital market challenges macroeconomic imbalances and Strategy in Argentina addresses currency, duration and guarantees management by matching Active FX and asset USD USD net long - Investor Investor Day liability average average - 35 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 1 Focused on delivering an attractive and growing dividend OPERATING CAPITAL GENERATION and and year.is ofthe indicated for NIAS year year) Defined the asNIAS financial dividend inthe subsequent Group over (paid Mariain 2017, Z Z - - ECM operating profits (%) operating profitsECM ECM operating profits (USDbn) operating profitsECM FY 11% 3.4 - 17 charges relatedrestructuringcharges tothe Group’s HY 7% - 18 (%) and and NET CASH REMITTANCES the change tocapital the the change UK gains tax indexation FY 3.7 - 17 FY > (USD - 3.3 18e bn ) relief ratio a in2017. payout reported on isNIAS basis93% for FY adjusted for NIAS PAYOUT RATIO major one - off impacts such as the such impacts off FY 77% - 17 (%) FY Investor Investor Day hurricanes Harvey, Harvey, hurricanes Irma - 18e 1 policy Dividend 75% - 17. 36 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 acquisition acquisition and disposal approach We are focused on shareholder returns and adisciplined DIVIDENDS AND OTHER SHAREHOLDER RETURNS Amount of dividends paid paid of dividends Amount and sharesand in repurchased USD 9.0bn 2016, 2017 2018and (USD bn ) M&A TRANSACTIONS AND DISPOSALS purchase price of announced announced price of purchase other capital actionsother in2016, capital impact of divestments and of impact transactions and and Z transactions USD 3.3bn Net amount between Net amount 2017 2018and - ECM (USD bn Investor Investor Day ) 37 © Zurich FINANCE FINANCE UPDATE December December 5, 2018 Keymessages shareholders Rewarding management Capital growth in Life High quality profitability Increasing P&C targets Delivering our Focused on delivering an attractive and growing dividend growingand an attractive delivering on Focused returns enhance and strategy our support to way focused and disciplined a in investing non from capital further release to options reviewing are actively We further contributioncash the growingwhile unitand protection on focus Our profitability increasing while volatility reducingis underwriting anddisciplinedP&C in mix Changingbusiness targets financial Group all on deliver to track On - linked continues to support high quality growth in Life BOP, Life in growth quality high support to continues linked - core businesses while businesses core Investor Investor Day 38 North America – Poised for long-term value creation
Kathleen Savio, CEO North America Dalynn Hoch, CFO North America Paul Horgan, Head of North America Commercial Insurance © Zurich NORTH NORTH AMERICA December December 5, 2018 Keymessages strategy execution of Successful for the future Well positioned financial results Strengthened Leading i nsurer improvement Improvedcombined ratio by 1.3ppts serving insurer 5 commercialTop Scores across customers, distributors, andemployees distributors, customers,across Scores Net Promoter strong driving innovationand simplification, customers, on focus Relentless Markets Alternative in growth profitable and Insurance, Commercialin long creating on Focused individuals and small to large businesses through multiple distribution channels distribution multiple through businesses large to and small - with strong capabilities and a diversified ~USD 15bn ~USD a diversified and capabilities strong with term value through improved business and customer mix customer and business improvedthrough value term inHY - 18 compared to FY - 16with plansfor further Investor Investor Day GWP portfolio 40 © Zurich NORTH NORTH AMERICA December December 5, 2018 Zurich North America – 100+ years of service to our customers Investor Investor Day 41 © Zurich NORTH NORTH AMERICA December December 5, 2018 Zurich North America is aleading insurer with strong capabilities LEADING INSURER 90%+ Top 5 93 #3 #2 #2 #1 Crop insurer International Programs Group captives U.S. commercial insurer Of Of Top 100 contractors insured Fortune 500 insured Surety provider STRONG CAPABILITIES that help deliver desired desired business that deliver outcomeshelp predictive models and insights, Tools, and AnalyticsTechnology and ~5,000 Peopleand Culture partners distribution Deep withcustomers relationships key and Customers and Distributors actuaries underwriters , risk risk engineers , claims claims professionals Investor Investor Day , 42 © Zurich NORTH NORTH AMERICA December December 5, 2018 Note: FY We havea diversified and balanced portfolio BUSINESS UNITS - 17 data. Does not include Life. 17include data. Does not Commercial InsuranceCommercial (Alternative Markets) Retail Other and (NWP, (NWP, %) 59% 41% DISTRIBUTION CHANNELS National brokers Regional 13% brokers brokers Global 17% 26% 13% Direct salesDirect 7% administrators Program 11% 13% (GWP, (GWP, %) Crop agents Crop consultants Captive LINES OF BUSINESS Specialties 17% Property 31% (NWP, (NWP, %) Investor Investor Day 52% Casualty 43 © Zurich NORTH NORTH AMERICA December December 5, 2018 2 1 Disciplined BOP Other underwriting Life. BOP includes H1 H2 (USD FY 1,124 447 677 - 16 m ) 1 e xpenses. FY 548 250 798 - 17 execution has s HY 618 - 18 COMBINED RATIO trengthened financial results 97.8% FY - 16 - 102.8% 1.3ppts FY (%) - 17 96.5% HY - 18 OUE RATIO % 12.6% 12.6% FY Half Year - 16 (%) 2 ~ 10.7% 12.5% - FY 2ppts - 17 Investor Investor Day FY 11.4% - 18e 44 © Zurich NORTH NORTH AMERICA December December 5, 2018 2 1 Combined ratio gap exists when compared to top peers HY Top peers include the North America commercial business of AIG, CNA, Chubb, Hartford, and Travelers Hartford,and Chubb, AIG, CNA, business of commercial America peers theTop North include ratio is a full year combined 2018Industry IBNR estimate Dowling (Source: - 18 18 COMBINED RATIO Industry 99.1% 1 Zurich North America North Zurich (%) 96.5% Opportunity - 4ppts Top peersTop 92.4% ). 2 . Alternative Grow Markets 91.4% Improve Commercial Insurance 99.4% Investor Investor Day 45 © Zurich NORTH NORTH AMERICA December December 5, 2018 Strategic priorities laying the foundation to create long foundational capabilities:foundational Further Innovation mindset Operational simplification Technical expertise Value propositions experience Customer & distributor strengthen RETAIL & OTHER &RETAIL COMMERCIAL Grow profitably in profitablyGrow Solidify position in position Solidify Bolster Middle Market Middle Alternative MarketsAlternative Large Commercial presence - term value Investor Investor Day 46 © Zurich NORTH NORTH December December 5, 2018 insurance combined ratio We are executing on our plans to improve the commercial ROBUST TECHNICAL EXCELLENCE REBALANCE LONG PROFITABLE GROWTH IN TARGETED CUSTOMER SEGMENTS Increase use of risk engineering by growing virtual and field teams field virtual and growing Increase risk by of use engineering for development technical Enhance use of data Continued use of strategic reinsurance Continued selected Target lines special in growth Focused value and Solidify Enhance AMERICA position in position growth in Property in growth our go - added added - to services services - - the the large market market TAIL EXPOSURE and predictive analytics to generate analytics togenerate predictive risk and actionable approach in Middle Market Middle in approach customer space by launching segment segment value specific customer launching by space market facingmarket underwriters insights propositions INSURANCE INDICATIVE COMMERCIAL 99.4% HY - 18 COMBINED ~3ppts Investor Investor Day RATIO FY - 21 e (%) 47 © Zurich NORTH NORTH AMERICA December December 5, 2018 Market presence Enhanced go VALUE VALUE PROPOSITION customer customer needs and special lines to meet evolving Targeted solutions across standard and and experience to delivering a consistent appetite One brokers Middle Market customers “storefront - to - market approach to bolster Middle ” UNDERWRITING EXPERTISE selection underwriting teams, aiding in risk institutional knowledge for Access to meaningful insights and target industry segment Robust technical expertise in each OPERATING MODEL brokers engagement with customers and providing an efficient and effective Flexible underwriting model segments targeted geographies and industry Strong presence with brokers in Investor Investor Day 48 © Zurich NORTH NORTH December December 5, 2018 Note: All impacts areHY Note: fromAll growth Segment specific CAPTIVES: DIRECT MARKETS: +19% +6% (GWP) (GWP AMERICA ) MAINTAINING LEADING POSITION in Alternative Alternative in Markets portfolio through large and mega mega dealers large and through portfolio &Insurance Finance volatility low Growing growing with leading captive captive consultants leading with growing and fostering strong relationships Continue GROWING F&I PORTFOLIO - 16 to HY - 18. p lans exist to ensure continued profitable CROP: PROGRAMS: in Commercial Commercial fund) in (Premium (Premium retained (Programs) +3% LEVERAGING DISTINCTIVE CAPABILITIES +9 PROGRAM ADMINISTRATORS GROWING WITH TARGETED administrators administrators new programs to win key deeper withrelationships Building predictive analytics analytics predictive enhancing sales and Strengthening capabilities to profitably to profitably grow Investor Investor Day p rogram rogram 49 © Zurich NORTH NORTH AMERICA December December 5, 2018 Customer ELEMENTS OF RISK ENGINEERING VALUE PROPOSITION $100m+ $100m+ of potential losses avoided in 2018 - customer’s customer’s needs and mitigating risk Collaborative approach balancing the Custom solutions complying with regulatory needs Precautions in preparation for events and Proactive advice 20+ years of experience 400+ risk engineers with an average of Dedicated expertise centric value propositions driving stronger NPS RISK ENGINEERING TRANSACTIONAL HY 77 - 16 +15ppts HY 92 - 18 NPS Investor Investor Day Detractors Passives Promoters 50 © Zurich NORTH NORTH AMERICA December December 5, 2018 2 1 distributor and employee experience, lower expenses Simplifying SELECT EXAMPLES OF SIMPLIFICATION Based Distributor underwriting systems… Consolidated special8 on g on ross other underwriting expenses. otherross underwriting line forms… RNPS and and NPS RNPS Employee HY based on Replaced 4 8 operating environment resulting in improved - 16 to HY 16 - 18, reduced expenses 18, reduced HY based on … by … to 1 1 1 - 15 to HY 15 IMPACT REALIZED - 18. Distributor Employee expenses Improved Improved Reduced 1 RNPS NPS 2 28ppts 5ppts 20% Investor Investor Day 51 © Zurich NORTH NORTH AMERICA December December 5, 2018 i Fostering an innovation mindset across theorganization FOSTERING INNOVATION MINDSET dentify Innovation Center Idea Lab , pilot, pilot, and deliver deliver new solutions DELIVERED NEW & Insurance business & Insurance Finance our for consumer, to direct including channels, Collaborated with pre insurer to include first the becoming policy, new cyber Launched digital and use of chatbots Added - breach breach services cyber policy as part of our SOLUTIONS new customer interaction channels through channels new customer interaction network security monitoring and and network security monitoring insurtechs to calendars to expanddistribution Investor Investor Day 52 © Zurich NORTH NORTH AMERICA December December 5, 2018 Keymessages strategy execution of Successful for the future Well positioned financial results Strengthened Leading i nsurer improvement Improvedcombined ratio by 1.3ppts serving insurer 5 commercialTop Scores across customers, distributors, andemployees distributors, customers,across Scores Net Promoter strong driving innovationand simplification, customers, on focus Relentless Markets Alternative in growth profitable and Insurance, Commercialin long creating on Focused individuals and small to large businesses through multiple distribution channels distribution multiple through businesses large to and small - with strong capabilities and a diversified ~USD 15bn ~USD a diversified and capabilities strong with term value through improved business and customer mix customer and business improvedthrough value term inHY - 18 compared to FY - 16with plansfor further Investor Investor Day GWP portfolio 53 Switzerland – Positioned for long-term success
Juan Beer, Chief Executive Officer Bettina Bornmann, Chief Financial Officer Sandro Meyer, Head of Life © Zurich SWITZERLAND December December 5, 2018 Keymessages Strategy Retail Life Commercial Switzerland group assets group our leveraging prioritization phased a with areas focus six around centered plan A strategic growth to return and pools profit of the number increase to and potential upside significant the to capture capabilities distribution and customer our driving focus A clear landscapeandpensions life changing long A consistent a with and replicate, to difficult advantages, competitiveandclear record track strongperformance with leader A market long for positioned well and profitability solid with business composite leading A strong - term growth and profitability and growth term - term strategy, delivering low volatility and steady profitable growth in a in growth profitable steady and volatility low delivering strategy, term good basis for future profitable growth profitable future for goodbasis Investor Investor Day 55 © Zurich SWITZERLAND December December 5, 2018 strengths in and beyond ice hockey Switzerland, a small country with many differentiating RETAIL LIFE COMMERCIAL Investor Investor Day 56 © Zurich SWITZERLAND December December 5, 2018 3 2 1 potential, both in P&C and Life We are operating in aprofitable market that offers upside INSURANCE MARKET GROWTH Source: OECD OECD Source: individual P&C markethealth insurance.Swiss excluding Federal and StatisticsOffice (2017). FINMA Source: Pension assets Pension assets P&C GWP FY FY 20.0 886 - - 15 15 (CHFbn) StatisticalDatabase,2018 Pension Markets in Focus report, ( CHFbn) 2 FY FY +6% +2% 20.3 924 3 - - 16 16 FY FY 20.7 994 - - 17 17 1 P&C MARKET Combined FY - 17 GWP 17 GWP 29% Labor Labor 91.5% FY - 10% 15 ratio ratio force statistics 2018.statisticsforce split by LOB split 30% 1,2 32% (%) 90.8% FY - 16 (%) Specialty &others Specialty liabilityProperty & Motor health & Accident 94.9% FY - 17 LIFE MARKET Labor Force LaborForce Pension assets by pensionarrangementsplit Asset 160.3 27.7 US US 32.0 2.9 GB GB 10% (millions) 90% 20.0 ( 2.6 CA CA CHFtn) 1 3 13.0 3 AU AU 1.7 Investor Investor Day pension plans pension Occupational plans pension Personal 9.0 1.6 NL NL 67.2 (%) 1.4 JP JP 3 4.9 1.0 CH CH 57 © Zurich SWITZERLAND December December 5, 2018 4 3 2 1 the We are well positioned to continue our strong contribution A STRONG MARKET Life market share share Life market share P&C market Average ofFY Average premiums Includes non Includes (as ofFY FINMA Source: 28.1% 16.5% Swiss AXA Life Group Group results, including P&C combined a ratio 89%of Zurich 23.6% 11.9% 13.7% 1.8% AXA - direct commercial insurance business of business insurance commercial direct - 16, FY 2 Mobiliar (%, based(%, (%, based(%, Zurich of 13.6% 12.8% 8.3% 4.5% - 17 HY and the independent VITAthe independent - 17). 3 Helvetia Allianz 10.9% POSITION 9.3% on on - GWP GWP 18 figures Helvetia Baloise of 32 7.3% 9.4% of 21 . CHFbn) CHFbn) foundation and ZIAGand foundation Baloise Allianz 6.2% 5.4% 1 1 CHF 384m CHF (as of FY (as of A WELL DIVERSIFIED FY FY (Zurich (Zurich - - 17 17 BOP 17 GWP - 17). Invest AG) of Invest AG) (%) (%) CHF 2.7bn CHF 38% 29% BUSINESS P&C (as of FY (as 0.6 4.2bn CHF CHF bn - 71% Life 17 62% ). A BOP share BOP share share GWP STRONG (%) ( % ) CONTRIBUTOR 4 Switzerland to Investor Investor Day 85% 90% 4 10% 15% Rest of Group Rest of 58 © Zurich SWITZERLAND December December 5, 2018 1 a strong performance track record We are the market leader in FY GWP - 17 growth from 2016 to 2017growth 43 95% 4.4 KEY KEY FIGURES #1 % insurance customer insurance commercial per products intermediated relationships of are customers our listed companies SMI of all commercial in insurance GWP non from is partly - due to a shift of portfolio from P&C Retail( Insurancefrom Commercial to P&C due a of portfolioshiftto GROWTH GROWTH & PROFITABILITY P&C P&C CI P&C CI GWP FY FY 87% 805 P&C Commercial Insurance (CI)with - - 13 13 combined FY FY 80% (CHFm) 753 - - 14 14 ratio ratio FY FY 81% 715 - - (%) 15 15 FY FY 89% 739 - - 16 16 approx. 100m). approx. CHF FY FY 94% 100 738 838 - - 17 17 1 FY Customer segments Customer mix Business - 17 17 GWP SPLIT 19% 40% 13% 27% 3% 38% 60% (%) Investor Investor Day Domestic programs International Motor lines Special Liability health & Accident Property 59 © Zurich SWITZERLAND December December 5, 2018 global capabilities, technicalexcellence and long We have a strong position in internationalprograms through our A UNIQUE relationships relationships established personal customer 15 Best in class class Best in Net servicing international programs international servicing employees 200 and innovation and development product joint in Active customer RELATIONSHIP MODEL years years median Promoter Promoter Score ( relationship model/ relationship duration involvement dedicated to dedicated r - NPS ) of DELIVERED A STRONG PROPOSITION WELL sole sole risk transfer Propositions along entire entire value chain along Technical awards awards in Swiss insurance with average Employees in 13 years of service13years excellence 2016 way beyond way beyond and and innovation 2017 - term relationships FY - 17 17 KEY FIGURES international programs international 250 with 500 program program customer 6.0 corresponding to corresponding assignments countries in 72 650 customers products international international risk engineeringrisk 7,700 7,700 policies issued policies per international per international Investor Investor Day with programs 22,000 22,000 hours 60 © Zurich SWITZERLAND December December 5, 2018 1 Pensionsmarket is paying off in terms of growth and profitability Our strategic positioning in the Individual and Corporate Life & FY ZIAG (Zurich Invest AG). ZIAG (Zurich CHFm 50% - 65 1 17 17 KEY FIGURES #3 st Invest Invest fee brokers byagents and distributed APE Balanced share of business market the outgrowing constantly life insurance, in (semi model CLP light capital into players mover big among income from Zurich income - autonomous model) AG FY Corporate new business business new Corporate Retail - 17 47% 14% APE LIFE new business mix newbusiness 12% 7% 288 83 79% 41% ( CHFm mix (%) ) (%) Risk Investments (ZIAG) Vita) Pensions (incl. traditional & Protection Investments (ZIAG) Unit - linked 1 1 GROWTH GROWTH BOP BOP Life NBV Life APE LIFE LIFE FY FY FY 323 221 68 - - - & PROFITABILITY 15 15 15 (CHFm) (CHFm (CHFm ) ) +33% FY FY FY +4% +7% 340 206 76 - - - 16 16 16 Investor Investor Day FY FY FY 371 238 119 - - - 17 17 17 61 © Zurich SWITZERLAND December December 5, 2018 3 2 1 well for profitable growth in the Corporate Life & Pensionsmarket Our semi MODEL: A TRIPARTITE RELATIONSHIP SEMI Considers ASGA, Vita, Gemini, Vita,Gemini, ASGA, ConsidersCIEPP, Nest, PK Swisscanto. Pro,Profond and PKG, Swiss Life, Baloise,AXA,Allianz, Considers Helvetia PAX.and of premiums Consists b multi employer employer multi cover, servicescover, iometrical risk management Independent - Distribution, foundations AUTONOMOUS Asset - of the independent VITAof the independent autonomousand capital light businessmodel positions us BUSINESS Invest AG Invest Zurich Zurich foundation. SAVINGS VITA OCCUPATIONAL VITA VITA GWP FY 1,427 - 13 BUSINESS ( CHFm FY 1,486 - 14 ) 1 +13% FY 1,962 - 15 RETIREMENT FY 2,241 - 16 FY 2,294 - 17 MARKET INVESTMENT YIELDS Semi Full FY FY - - - 13 13 insurance insurance - autonomous FY FY - - 14 14 model FY FY - model - 15 15 2 FY FY 3 - - 16 16 Investor Investor Day FY FY - - 17 17 (%) Ø Ø 1.4% 4.2% 62 © Zurich SWITZERLAND December December 5, 2018 offering Our protection CORPORATE PROTECTION Risk - only regular GWP GWP regularonly FY 72 - 13 FY 83 - 14 ( CHFm ) and investment solutions complement our +14% FY 95 - 15 FY 103 - 16 FY 120 - 17 ( CORPORATE AND RETAIL INVESTMENT SOLUTIONS Zurich Invest 10 15 20 25 (CHFbn) 5 AuM FY 15 - Fee Fee (CHFm) income 13 AG ) FY 16 - 14 +14% FY 18 Assets (CHFbn) management under - 15 FY 20 - 16 Investor Investor Day FY 22 - 17 Fee Fee income (CHFm) 0 30 60 90 63 © Zurich SWITZERLAND December December 5, 2018 3 2 1 from which reinvigorateto growth in Our brand and ourcustomer base represent a strong foundation FY consider the portfolio shift.the portfolio consider from GWP reduction 2018 Moments in with cooperation aided Based awareness done on study - 17 17 KEY FIGURES #2 #3 #1 awareness brand insurance Motor in Retail P&C in of Truth FY - study. 16 1 to 1.3m FY 1.7 #2 - 17 partly due to a shift of portfolio from P&C Retail to Commercial Insurance (approx. Retail(approx. Insurancefrom Commercial to P&C partly a due of portfolioshiftto satisfaction customer claims in customer per products customers 2 MetrixLab. FY By customer segment By customer ofBy line business - 17 17 GWP 39% 17% 27% 6% SPLIT 61% 50% (%) (%) P&C Retail enterprises(SME) Small midsized and Private Special lines liabilityProperty & health & Accident Motor CHF 100m). CAGR figure is on an underlying basis doesn’t figure and is an underlying on 100m).CAGR CHF GROWTH GROWTH P&C Retail P&C Retail P&C Retail P&C Retail FY FY 2,349 92% - - 15 15 & PROFITABILITY GWP GWP combined ( CHFm) - FY FY 4ppt 2,300 91% - 2% - - r 3 16 16 atio atio s Investor Investor Day (%) FY FY 2,155 - 87% 100 - - 17 17 3 64 © Zurich SWITZERLAND December December 5, 2018 leveraging We are executing a plan centered around six expectations. clients’ We exceed or match our EXPERIENCE CUSTOMER CoverWallet our PEOPLE & Group Group Zurich Customer Active Management Active Customer Zurich CULTURE: CULTURE: with distribution partners. distribution with relationships our and channel We agents strengthen our tied BRAND: POWER DISTRIBUTION assets We We We We position Zurich as Zurich as a position foster foster of transparency a culture ‘warm’ and ‘approachable’ ‘warm’ ‘approachable’ and sustainable sustainable business portfolio. and balanced We a develop EXTENSION PROFIT POOL and an an and Natural Hazard Radar Hazard Natural open, honest communication culture. communication honest open, focus areas brand. productsand clarify processes our We and simplify SIMPLIFICATION CI Robot Investor Investor Day responsibilities 65 . © Zurich SWITZERLAND December December 5, 2018 Keymessages Strategy Retail Life Commercial Switzerland group assets group our leveraging prioritization phased a with areas focus six around centered plan A strategic growth to return and pools profit of the number increase to and potential upside significant the to capture capabilities distribution and customer our driving focus A clear landscapeandpensions life changing long A consistent growth profitable future for goodbasis a with and replicate, to difficult advantages, competitiveandclear record track strongperformance with leader A market long for positioned well and profitability solid with business composite leading A strong - term growth and profitability and growth term - term strategy, delivering low volatility and steady profitable growth in a in growth profitable steady and volatility low delivering strategy, term Investor Investor Day 66 Australia Life – Accelerating growth
Tim Bailey, CEO Australia Life Mark Henderson, CFO Australia Life © Zurich AUSTRALIA December December 5, 2018 Keymessages strengthened Position focused Customer in Australia Life insurance financials Strong change Structural provides a strong platform for future success future for platform a strong provides and market life the in positionGroup’s the strengthens further acquisition Life OnePath share market growing strongly while levels, industry below a to led has focus customer Our focus customer and execution strong with companies favor will which change industry from benefit to positioned are well We growth p.a. 24% Since opportunities goodgrowth and fundamentals attractive offers market life Australian The 2013 we have reduced our cost ratio by ratio cost ourreduced we have in premiums in 30ppts improvement in TNPS TNPS in improvement 15ppts, supporting and 16% p.a. growth p.a. 16% reduction in lapse rates to rates lapse in reduction Investor Investor Day in BOP andBOP in 68 © Zurich AUSTRALIA December December 5, 2018 Australia Zurich is one ofthe most recognized life insurance brands in Investor Investor Day 69 © Zurich AUSTRALIA December December 5, 2018 1 Zurich Australia Life akeyis contributor within theAPAC region STRONG LIFE FOOTPRINT IN APAC As of FY As 324 - 17, APE (USDm) only Lifeand only 16% adjusted for OnePath Life adjusted acquisition 6% 53% 1 n.m. 24% . GROUP AUSTRALIA LIFE MAKES A SIGNIFICANT CONTRIBUTION TO position Market (Life) Group 1 19% BOP BOP #3 (In share Market - APE force premium) force 3% Investor Investor Day 14% NBV 7% 70 © Zurich AUSTRALIA December December 5, 2018 2 1 Australia hasanattractive economy and a growing life GDP GROWTH AT UPPER END OF DEVELOPED MARKETS KPMG Life Life Insights; KPMGInsurance Bank World Data; 10yr CAGR 10yr 4.1% AU CAGR calculation based on linked series current local currency 2008 linked based on local currency seriescalculation current CAGR (%) 2.8% US FY FY percentages 2.6% GB are for the 12 for 2.5% DE months months 1.1% CH starting April 1.starting 1 – 2017. LIFE GWP 1.13% FY - 13 INCREASING AS 1.25% FY - 14 A PERCENTAGE OF 1.29% FY - 15 market 1.38% FY - 16 Investor Investor Day GDP 2 1.43% FY - 17 71 © Zurich AUSTRALIA December December 5, 2018 2 1 and Bank most important channels for retail business Australian market growth is supported by MARKET IN FY QuarterlyMonitor. Risk Distribution NMG - 17 in FY 9.1 - force adjusted force - 15 - Change as percentage of annual in FORCE PREMIUMS Business New 1.0 for OnePath Life acquisition; Lapses 1.4 repricing In - 10% - 0.9 force INDIVIDUAL LIFE - forcepremium NMG QuarterlyMonitor. Risk Distribution NMG FY 9.6 - 16 Business New 0.9 (AUD bn Lapses 1.4 ) 1 repricing In - 9 0.8 force % FY 10.0 - in 17 - force repricing; DISTRIBUTION MIX ZURICH’S PRO Direct 19% 18% - FORMA IN Bank 4% (%) IFA Investor Investor Day Group Life Group 2 - FORCE 59% IFA 72 © Zurich AUSTRALIA December December 5, 2018 3 2 1 Zurich Australia Life hasdelivered consistent profitable growth RETAIL IN FY FY integration Calculated as expenses (excluding - - 16 and FY 16 FY 285 numbers adjusted to include one quarterone adjustednumbers toinclude - 13 - - 17 BOP numbers exclude integration 17 costs.exclude BOP numbers FY FORCE PREMIUMS 329 - 14 +24% FY 369 - 15 FY 463 - 16 2 FY (AUD 673 - 17 costs) of the retail m divided divided by ) life insurance protection business acquired from Macquarie acquired from business lifeprotection insurance inforce premium. inforce COST RATIO FY 34% - 13 FY 31% (%) - 14 1 - 15ppts FY 28% - 15 FY 23% - 16 2 FY 20% - 17 Life . BUSINESS OPERATING PROFIT FY 66 - 13 FY 64 - 14 +16% FY 79 - 15 Investor Investor Day FY 92 - 16 2 FY ( AUD 121 - 17 m ) 73 3 © Zurich AUSTRALIA December December 5, 2018 2 1 challenged, however Zurich’s remains portfolio profitable Disability Income Insurance (DII) profitability hasbeen ( INDUSTRY RETAIL NET PROFIT AUDm Margin reflects weighted averageFY reflectsweightedMargin across markand changes assumption economic exclude Benchmarking Economic Product NMG FY 336 Lump sum (AUDm) Lump - 13 ) 1 FY 360 - 14 FY 658 - 15 DII (AUDm) FY 593 - 16 Study - 13 to FY FY ; 486 NMG Quarterly Risk NMG - 17 - to - market. - 17 after ofnettax profit revenue. by premium gross divided FORCE ZURICH Distribution Monitor; figures reflect retail channel primary insurers (excluding reinsurers);afternetreflect profitretailfigures tax adjusted primary insurers(excluding t channel Monitor; Distribution Lump sum Lump MIX WITH WITH FAVORABLE 40% (%) 7% Lump sum + DII sum + Lump 53% FY - 17 17 IN DII only - MARGIN VS ZURICH WITH HIGHER PROFIT Zurich 1.5% DII - 5.6% INDUSTRY Industry 15.9% Investor Investor Day (%) Lump Sum Lump 2 11.8% o 74 © Zurich AUSTRALIA December December 5, 2018 1 will support future success Continuing and enhancing customer and adviser engagement CUSTOMER LOYALTY PROGRAM MARKET LEADING ADVISER QUOTE & APPLICATION TOOL NMG Quarterly Risk Distribution Monitor. market average market below Lapse rate0.7ppts TNPS+30ppts in 2018 1 Investor Investor Day 75 © Zurich AUSTRALIA December December 5, 2018 1 distribution capabilities in Australia Macquarie Life AN EXCELLENT STRATEGIC FIT Includes retailIncludes product set product attractive Highly differentiated and business existing Zurich’s Pure withretail aligned risk portfolio One administration administration One platform strong customer service propositions with focus Complementary distribution Access toMacquarie wrap platform BIGGER. BRIGHTER. BOLDER life insurance protection business acquired from Macquarie acquired from business lifeprotection insurance Z+M L = B 3 1 acquisition strengthened our position and AWARD WINNING NEW PROPOSITION Life. COMPLETION PROFITABLE Q1 - Total new business value Totalvalue newbusiness(AUDm) 17 Q2 - 17 GROWTH GROWTH POST Q3 - 17 115% Q4 - Investor Investor Day 17 Q1 - 18 Q2 - 18 76 © Zurich AUSTRALIA December December 5, 2018 2 1 Comparison of Macquarie Life and OnePath Life acquisitions Completed Signed Acquisition mechanismAcquisition No. agreement Distribution channels Key products Key Inforce Includes of employees of premium premium retail life insurance protection business acquired from Macquarie Life. Macquarie acquired fromretail business lifeprotection insurance Part ~100 platform 10y IFA 0.3bn) (~AUD protection life Retail 2016 October 2016 March MACQUARIE 9 portfolio transfer 9 portfolio LIFE agreement 1 2 Legal entity acquisition entity Legal ~850 distribution bank 20y Bank Group, IFA, 0.4bn) (~AUD protection life Group Retail 2019 March Expected 2017 December ONEPATH LIFE life protection (~AUD 1.2bn) (~AUD protection life partnership Investor Investor Day 2 2 77 © Zurich AUSTRALIA December December 5, 2018 2 1 insurers Structural change of Australian market favors large specialized PRO Completion inprogress. Completion 2017FY pro AIA+CBA - 23% 4.0 FORMA INDUSTRY MARKET SHARE Group - TAL+SUN forma view, based on inforce business, NMG inforce basedview, on forma 22% 3.8 Retail ZUR+OPL 14% 2.4 MarketShare 11% MLC 1.9 AMP 11% 1.9 Others Quarterly Risk 9% 1.5 (AUD bn WES 6% 1.1 ) 1 Distribution MET 4% 0.7 Monitor. 2 2 2 2 2 2 2 Insurer RAPID SHIFT OF OWNERSHIP TOWARDS MULTINATIONALS 2015 Ownership 2015 mgmt. company wealthAustralian bank Australian company insurance Swiss based HK insurance Dai GI company Australian bank Australian bank Australian bank Australian bank Australian company mgmt. wealthAustralian - ichi Life Life ichi Group 2018 Ownership 2018 20% stake by Sony 20% stake Sony life by Zurich by Acquired company insurance Swiss based HK insurance Dai Dai bank Australian AIA by Acquired Zurich by Acquired Life Nippon by Acquired in new business forClosed - force managed Life managed Resolution forceby - - ichi Life Life ichi Group Life ichi Group Investor Investor Day 78 © Zurich AUSTRALIA December December 5, 2018 2 1 contracting environment while increasing profitability Zurich is consistently growing new business market share in a INDIVIDUAL Q2 NMG - 18 Q1 vs Quarterly Risk Total market - 17. Q1 4.4% 224 10 - 17 LIFE MARKET APE Distribution Zurich Monitor. Q2 5.1% 234 12 - 17 Zurich market Zurich (%) share (AUD m Q3 5.9% ) 226 13 1 - 17 - 13% Q4 6.2% 220 14 - 17 Q1 6.0% 192 12 - 18 Q2 8.3% 193 16 - 18 + business margin 21ppts New Investor Investor Day 2 79 © Zurich AUSTRALIA December December 5, 2018 Keymessages strengthened Position focused Customer in Australia Life insurance financials Strong change Structural provides a strong platform for future success future for platform a strong provides and market life the in positionGroup’s the strengthens further acquisition Life OnePath share market growing strongly while levels, industry below a to led has focus customer Our focus customer and execution strong with companies favor will which change industry from benefit to positioned are well We premiums in growth p.a. 24% andBOP in growth p.a. 16% supporting 15ppts, by ratio cost ourreduced we have 2013 Since opportunities goodgrowth and fundamentals attractive offers market life Australian The 30ppts improvement in TNPS TNPS in improvement and reduction in lapse rates to rates lapse in reduction Investor Investor Day 80 Ireland – Huge opportunity, clear ambition
Anthony Brennan, Chief Executive Officer David O’Dowd, Head of Life & Pensions © Zurich IRELAND December December 5, 2018 Keymessages of efficiency Virtuous circle execution P&C disciplined above market Life growing customer needs Evolving Ireland improvement efficiency of circle a virtuous provides business growing a with combined discipline Expense proposition direct our strengtheningand opportunitiesniche growing while execution disciplinedon are focused and P&C in profitability restoring in market the have led We p.a 8% of rate a compoundat grow business the seen has strategy distribution and product Our position a strong in us puts distributors for business of doing ease and products the right andretirement, savings inneeds customerevolving driving are Demographics growth further for ambition a clear and having opportunityhuge with market a in operating profitability, and growth above market of record strong a with insurer composite leading The . since 2005 against a flat market with Zurich becoming the #2 player with 21% share 21% with #2 player the becomingZurich with market flat a against2005 since Investor Investor Day 82 © Zurich IRELAND December December 5, 2018 needs Ireland, a young and dynamic market with evolving customer Investor Investor Day 83 © Zurich IRELAND December December 5, 2018 2 1 continue ourtrack record of growth We are the leading composite insurer and are well placed to LIFE FY Specialist FY basedLife on 36% - 17 APE by line of business business byof17 APE line 347 EUR 31% product lines such as lines such product Market 21% share m 13% - 10% 1 17 APE; FY P&Cbased on 3% 8% Savings Retirement drawdown pension Corporate Individual pension Annuities Protection farm insurance and SMEfinancial and farm insurance (%) position Market #2 1 - 17 GWP . PROPERTY & CASUALTY (P&C) l FY ines. 39% - 17 GWP by line of business line business 17 byofGWP EUR 27% 331 Market 10% share 11% m 1 8% 15% Motor Property Specialised &specialists International programs Liability (%) position Market #6 1 2 BUSINESS OPERATING PROFIT FY P&C 37 30 - - 7 15 Life FY 46 25 71 - 16 FY 46 28 73 Investor Investor Day - 17 HY (EURm 28 11 - 18 ) 84 © Zurich IRELAND December December 5, 2018 Source: Source: demographics provides significant opportunities for insurance One of the mostdynamic economies in Europe with attractive GDP GROWTH IRELAND VS 100% 110% 120% 130% 140% 150% IMF, 80% 90% 2006 World Economic Outlook Outlook Economic 2008 Europe 2010 Ireland Database; CSO, Eurostat(2017), projections. population OECD 2012 EUROPE 2014 (%, (%, 2016 indexed to 2007 2018 2020 ) A YOUNG AND GROWING POPULATION 10 20 30 40 50 60 70 80 90 0 1 10 20 30 40 50 60 70 (000’s (000’s of people) 80 Investor Investor Day 90 Age 85 © Zurich IRELAND December December 5, 2018 1 consistent Life outperformance Our focus on customer and distributor needs resulted in a ZURICH ZURICH VS. MARKET GROWTH Based on APE excluding APEBased excluding on FY 8% - 05 Zurich market Zurich (%) share FY investment - 07 - only only FY business. - 09 1 MarketAPE (EURm) Zurich APE CAGR Zurich +8% FY - 11 FY - 13 FY - 15 FY 21% - 17 NBV APE ( (EUR EURm FY FY 267 20 m - - 16 16 ) ) +54% +30% FY FY 347 31 - - 17 17 Investor Investor Day 9m 9m - - 18 18 86 © Zurich IRELAND December December 5, 2018 2 1 growth savingsin and pension funds Delivering products that meet customer needs drives strong TO DELIVER ADDRESSING CUSTOMER NEEDS Data as per 19,September 2018 levels volatility individual returnsappropriateinvestor riskof towith profiles. Prismaare a funds diversified multi Customer Simplified productSimplified addressing addressing needs Tools to support Tools intermediary by needs by s segmented . - assetunit - linked fund rangeavailable linked fund for unit ASSETS UNDER MANAGEMENT IN PRISMA FUNDS 1,000 1,500 2,000 2,500 500 0 Prisma 2 - linked savings and pension products; they they products; pension and linked savings 2014 Prisma 3 Prisma 4 2015 Prisma 5 aim to generate long 2016 Prisma 6 (EUR - term capital growth by targetingby specificcapital termgrowth m ) 1, 2 2017 Investor Investor Day 2018 87 © Zurich IRELAND December December 5, 2018 2 1 us to leverage our strengths and drive future growth Changing customer needs present significant opportunities for GROWING RAPIDLY THE NUMBER OF PEOPLE ENTERING RETIREMENT IS Unit linked Retirement Drawdown single single premium. linked Unit Retirement Drawdown CSO. Source: 1,000 1,100 1,200 1,300 Population agedPopulation 65 andover 500 600 700 800 900 2020 1 (000’s) 2025 2030 2035 LINKED RETIREMENT DRAWDOWN MARKET WE ARE INCREASING OUR SHARE OF THE GROWING UNIT Total market (EURbn) 15.8% FY 1.2 - 15 16.3% FY 1.3 - Zurich market Zurich (%) share 16 2 Investor Investor Day 21.5% FY 1.8 - 17 88 © Zurich IRELAND December December 5, 2018 with growth with growth have led improved to efficiency Expense discipline and investment in digitalization combined Application simplification Process Process re Straight Straight through processing - engineering Digitalize Digitalize the core API API technology Life units costs per policy policy per costs Life units 100% FY - 15 FY 93% - 16 (%, indexed indexed (%, to FY 85% 2015 - 17 ) Investor Investor Day FY 82% - 18e 89 © Zurich IRELAND December December 5, 2018 1 through disciplined underwriting In P&C we ZURICH ZURICH IRELAND VS MARKET Source : 111% Insurance Irish Market FY - 14 105% Ireland have Factfile, company data. FY Factfile, company Zurich IrelandZurich 119% FY - 15 107% led the market in turning around profitability COMBINED RATIOS 104% FY - - 17 is ratio anestimate.market combined 16 95% ~ 97% FY - 17 (%) 94% 1 P&C GWP P&C ACCIDENT FY FY ( 78% 311 EURm - - 14 14 YEAR LOSS RATIO ) FY FY 74% 315 - - 15 15 - 16ppts +7% (%) FY FY 66% 365 - - 16 16 Investor Investor Day FY FY 62% 379 - - 17 17 90 © Zurich IRELAND December December 5, 2018 improved improved customer propositions and experience and lower cost We are transforming our direct P&C business to deliver ACTIONS Home delivered, motor in rollout in motor delivered, Home platform core Consolidated propositions Simplified journey customer Simplified approach first Digital RESULTS Improved Improved 60 % quote to bind of quotes online fastest fastest experience experience training for staff More efficient – – Improved 80 Faster of new distribution % communication partnerships digital digital on boarding experience Investor Investor Day – 91 © Zurich IRELAND December December 5, 2018 1 areas suchas farminsurance We haveopportunities to grow in a range of profitable niche BUSINESS VIA DIRECT CHANNEL OPPORTUNITY Market GWP estimated.MarketGWP GWP GWP channel Direct channel Broker ( EURm ) 1 TO GROW Other FY FY 112 108 14 14 28 4 - - 17 17 FARM Zurich OUR OUR UNIQUE PROPOSITION x2 #2 #1 growth in GWP 2014 since in growth Farm in market 13% share with the last 5 in doubling brokers, with50% share, years Investor Investor Day 92 © Zurich IRELAND December December 5, 2018 Keymessages of efficiency Virtuous circle execution P&C disciplined above market Life growing customer needs Evolving Ireland improvement efficiency of circle a virtuous provides business growing a with combined discipline Expense proposition direct our strengtheningand opportunitiesniche growing while execution disciplinedon are focused and P&C in profitability restoring in market the have led We p.a 8% of rate a compoundat grow business the seen has strategy distribution and product Our position a strong in us puts distributors for business of doing ease and products the right andretirement, savings inneeds customerevolving driving are Demographics growth further for ambition a clear and having opportunityhuge with market a in operating profitability, and growth above market of record strong a with insurer composite leading The . since 2005 against a flat market with Zurich becoming the #2 player with 21% share 21% with #2 player the becomingZurich with market flat a against2005 since Investor Investor Day 93 © Zurich BIOGRAPHIES December December 5, 2018 Biographies Investor Investor Day 94 © Zurich BIOGRAPHIES December December 5, 2018 Born: 1959 Born: Italian Nationality: Executive Officer Group Chief Mario Greco Milan as as claims head division. of the Milan in Group) RAS (Allianz joined he 1995, the segment. insurance In in a partner subsequently and leader where became he partner a in 1992 officefrom Milan 1986 1994, until & Company’s in McKinsey working career in management consulting, Greco started Mr. professional his the Executive Committee. Executive member Officer and of in March2016 Zurich as ChiefGroup more for than 20 years. He joined senior served executive positions in having the industry, insurance in experience broad Greco has Mario Skillsand experience was appointed CEO of Generali. of Generali. CEO was appointed General as In 2012 CEO Insurance. he first as CEO Global Life and from 2010, 2007 to 2012, served he at Zurich, From Group. Financial of Eurizon CEO and in October2005, he was appointed of EurizonVita as Milan CEO in Group IMI the 2005, Sanpaolo joined he Portugal, Greece April Turkey. and In for Spain, Italy, France, responsibility withexecutive AG’s Allianz board, At the end of2004, GrecoMr. joined 2000, became he CEO. company’s the in director and managing appointed year. In 1998, he was the following the business of charge insurance He became general manager in University. monetary theory Rochester from and economics international a and master's Rome degree in from University the economics of in a degree bachelor's Greco holds Mr. background Educational of the Festival. Lucerne a member of trustees of the board of The Geneva Association and member Greco is board a Mr. appointments External Investor Investor Day 95 © Zurich BIOGRAPHIES December December 5, 2018 Born: 1965 Born: U.S. Nationality: America CEO North KathleenSavio 1966 Born: British Nationality: Financial Officer Group Chief George Quinn which delivers products and services services and products delivers to customers which Alternative Markets NorthAmerica, Zurich for 2017, she through served as the Head of January that for business in 2018. 2012 From assumed Officer Savio Executive Chief the of role Officer Executive of Chief the to position appointment Executive Committee October 2017 in her upon She became at a Zurich. member of the across experience several working disciplines Kathleen has Savio more 25 than years of Skillsand experience CFO and is a member of the Executive Committee. CFO.Mr. Quinnjoined Zurich in May 2014 as Group 2005. In March2007 he became Swiss Re Group’s CFO for Swiss Re Americas based in New York in financialservices. Mr. Quinnbecame the regional FinancialOfficer (CFO)for Swiss Re Group’s Officer based inZurich and later served as Chief joinedSwiss Re in 1999 as GroupChief Accounting with the insuranceand reinsurance industry.He London,where he held several positionsworking George Quinnstarted his career at KPMG 1988 in Skillsand experience - Designate Designate Zurich NorthAmerica. Ms.for units. She joined Zurich in 1991. in Zurich joined She units. key corporate business marketing within and and underwriting product roles in also held has Initiatives NorthAmerica Corporate and Marketing Commercial. Before assuming Administrative Officer for North America of Chief position she the held appointment brokers. and Prior captive to that consultants program agents, direct, administrators, crop including channels, distribution multiple through for Marketing and Distribution. She She Distribution. Marketing for and Commercial,as well as Strategic Communications for Communications that role, she led Investor Investor Day 96 © Zurich BIOGRAPHIES December December 5, 2018 Born: 1970 Born: U.S. Nationality: North America CFO Zurich Dalynn Hoch 1964 Born: U.S. Nationality: Insurance Commercial America Head of North Paul Horgan head of the the head of 2009 Zurich in as joined Hoch Ms.Switzerland. Transformation Zurich, Finance in Global Zurich’s was of head Hoch Before named CFO, being October 2012. Zurich since with current position her has in been Hoch Analysis functions. & Insights & Expense Planning Management and Business Corporate Tax, Treasury, Actuarial, Controller's, America, the has for leadership responsibility Officer Zurich North for As Chief Financial Skillsand experience serving at the Reinsurance, company’s Group NorthAmerica; Head of Corporate in of Global in 2007 has served Zurich and as Head and Canada. businessthe HeU.S. in joined specialties and performance and commercial of all management the for responsible direction, is and Zurich NorthAmerica for Commercial Insurance the Paul Horgan is Head of NorthAmerica Skillsand experience ZurichNorth America Commercial the KPMG Mentoring Program Minneapolis. Program the MentoringKPMG in Partner was She the SEC other offerings filings. and debt dispositions; and acquisitions diligence; due multi large, managing primary accomplishments included where she was Her Minneapolis, partner. in was at KPMG Hoch LLP Ms. Zurich, Prior to joining team. FinancePlanning markets, finance. and underwriting roles inalternative a served of senior number in he Zurich, Before joining the industry. insurance Horgan has more 30 than Mr. years experience in NorthAmerica. Corporate in Officer Global for Underwriting Chief and Switzerland; headquarters Zurich, worldwide in - in - charge charge Co and of Recruiting - location clients; Sarbanes Sarbanes 404 clients; Oxley location & Performance Management Investor Investor Day - chair of chair 97 © Zurich BIOGRAPHIES December December 5, 2018 Born: 1969 Born: SwissNationality: Switzerland CFO Zurich Bornmann Bettina 1970 Born: SwissNationality: Switzerland CEO Zurich Juan Beer Finance Switzerland. Finance 1998 to 2008, most recently as Head of Corporate thereafter at where KPMG, she worked from experience valuable at gained UBS and she had Previously, she was Head Group Controlling. of between 2011 and Life Insurance 2015 and Officer for Swiss Life Private Financial Placement between 2009 2011 and she Chiefhad been worked and at previously Swiss Life Group 2015. spring She Officer in as Financial Chief Life Switzerland Zurich joined Bettina Bornmann Skillsand experience Head Switzerland, of Corporate business in Global as Zurich's Executive Chief Officer of leadership management and of senior positions series a This Management. includes Countryand Management Market as as in well Segment Underwriting, in Sales positions and Relationship various has held sincethen as apprentice and an 1987 in Group Zurich Insurance He first joined sinceFebruary 2018. Zurich Switzerland for Beer Juan Officer Executive (CEO) been Chief has Skillsand experience Zurich's strong capital base earnings. base and strong capital Zurich's reinsurance strategies of protection enabling executed redirected successfullythe Group'sand Reinsurance, he Head of Group Global Zurich's most his recent as role Center. In Technical and Global Head and Marineportfolio of theP&C Property, Lines Officer Zurich’s for Engineering Underwriting Chief Global Corporate business, Global Officer Zurich's for Underwriting Chief Global in Spain, business Commercial Insurance Program International Business Zurich's for Investor Investor Day 98 © Zurich BIOGRAPHIES December December 5, 2018 Born: 1964 Born: Italian Swiss / Nationality: Switzerland Zurich Insurance Head of Life Sandro Meyer serves serves 2018. as Head July of Life since of Head and of Corporate Life & Pensions (CLP) August 2010, Meyer In Sandro assumed role the Management the model. Customer Relationship Corporate NorthAmerica Global introducefor to President Vice as Senior relocated to Chicago Program 2006, International Business. In he Network as (ZEBN) Corporate’s part of Global 2006, the Employee upZurich he built Benefit Between as Life International. known 2001 and the career his strategic formerly in business unit launched and Corp. Winterthur Reinsurance 1994 in Zurich from Meyer Sandro joined Skillsand experience Investor Investor Day 99 © Zurich BIOGRAPHIES December December 5, 2018 Born: 1971 Born: Australian / British Nationality: Australia Life CFO Zurich Henderson Mark 1974 Born: British Nationality: Australia Life CEO Zurich Tim Bailey UK and Hong Kong including Ernst&Young, atroles workedin Corporates and Consulting Australia, in services and in joining Zurich financial to prior has and ateam 45hasof more than yearsexperience20 rolein responsible Sydney, currentMark In his isfor Chief Actuary Zurich Pacific.Lifeof Asia held various positions in including finance Regional business in 2015.He April joined 2006 Zurich in and and InvestmentsLife Zurich’s of Australian Officer MarkHenderson appointed was theFinancial Chief Skillsand experience business,responsibleTimfor wastheLife early forGlobal Zurich’s Chief Previously,as RiskOfficer Zurich Australia.theInsurer largest Individual in Life expected completetomake 2019in earlyand will ANZ'sof businessriskwhich OnePath Lifeis Life& Investmentsannounced itsintended acquisition business. More Zurich Macquarie'srecently,life risk and through theacquisition and integration of thegrowth Australian in its market both organically leadership, &Zurich LifehasInvestmentsaccelerated Australia,on 1January 2015.Under Tim's became Tim and CEO Investments, Life Zurich Skillsand experience College, College, Oxford. Philosophy, and Politics Economics from(PPE)Trinity Actuarial and Institute holds aDegreeMasters in educated Fellow theof in Australianthe isaUK, Winterthur and Bacon &Woodrow. Markwas and theUK. Corporate Governance areasof including Strategy,Finance, Riskand Tim industry, ahasnumber acrossheld seniorroles 20 With years experience Insurancein theLife having Zurich AXAjoined from UK 2008. in and Strategy and Planning DirectorUK for Life, development the of Global segmentstrategyLife Global of LifeStrategyhe wherethe led overall Zurich statutoryPriorheboards. Headthatto was RiskManagement Executive and Teams three Lifeas a memberof both theGlobal Lifeand Group acrossidentification and Global risksof mitigation – for both for both Zurich globally Investor Investor Day 100 © Zurich BIOGRAPHIES December December 5, 2018 Born: 1976 Born: Irish Nationality: Zurich Ireland & Pensions Head of Life David O’Dowd 1968 Born: Irish Nationality: Ireland CEO Zurich Brennan Anthony Operations & I.T. functions.Operations the interactions between managing the for Sales, was and responsible functions Propositions and Marketing the 2011, Director both in leading Associate Commercial He Director. was appointed 2008 Germany Italy. In was and David appointed both into launches oversaw productcrossborder Development.Product this he role in While 2006 in Executive Manager, David was appointed Actuarial management number of a held roles, 1996. in Having Zurich joined O’Dowd David Skillsand experience Germany Italy. European markets and including key other and Ireland in growth continued Zurich’s for has responsible been Anthony As CEO, appointed Life as BusinessIreland. CEO ofour in October 2009 was In he companies. insurance most of Ireland’s successful in one of functions across number managing a experience practical in has 1985, since over 30 years Zurich AnthonyWith Skillsand experience Pensions in Ireland. Pensions Business domestic leads Life and Zurich’s role nowhe this in and of Head of Life & Pensions position January In 2017, to the was David appointed Ireland. of Insurance the current President Actuaries and Ireland in of of the Society a is Fellow Anthony Ireland. in General Life and businesses Insurance both for Ireland Zurich of CEO, position 2016 the to July was appointed In Anthony Investor Investor Day – responsible responsible 101 © Zurich December December 5, 2018 Notes Investor Investor Day 102 © Zurich December December 5, 2018 Notes Investor Investor Day 103 © Zurich December December 5, 2018 Notes Investor Investor Day 104 © Zurich December December 5, 2018 Notes Investor Investor Day 105 © Zurich December December 5, 2018 Notes Investor Investor Day 106 © Zurich December December 5, 2018 For further information Patricia Patricia Heina Events Gianni Michèle Matlock Samuel Han Francesco Bonsante Richard Burden Investor CALL US Vitale Relations and Rating Agency +41 44 625 38 44 +41 44 625 48 26 +41 44 625 28 50 +41 44 625 32 57 +41 44 628 00 +41 44 628 96 40 68 Management VISIT OR FOLLOW US Follow us Follow Financial Financial website Relations Investor results andreports results Investor Investor Day 107 CALENDAR: February 7, 2019, Annual results 2018 March 19-20, 2019, Morgan Stanley European Financials Conference, London April 1-2, 2019, HSBC West Coast Conference, San Francisco April 3, 2019, Annual General Meeting May 9, 2019, Update for the three months ended March 31, 2019 August 8, 2019, Half year results 2019
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