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Highlights of Swiss Re's Sustainability Approach

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Highlights of Swiss Re's Sustainability Approach Highlights of Swiss Re’s Sustainability approach How we accelerate sustainable progress May 2021 Table of contents Swiss Re Group – who Driving sustainable we are and what we do operations Slide 3 Slide 54 Our approach to Engaging sustainability our people Slide 12 Slide 60 Creating solutions Corporate for sustainability Governance Slide 27 Slide 68 Being a Compensation responsible investor framework Slide 46 Slide 90 Highlights of Swiss Re’s Sustainability approach| May 2021 2 Who we are and what we do? We make the world more resilient We aim to operate as ‘One Swiss Re’ Risk Knowledge Client Collaboration A leading global reinsurer Leadership & Access Reinsurance Capital Strength Our People A specialised risk partner with direct Risk Knowledge Client Collaboration Leadership & Access Corporate Solutions Capital Strength access to corporate customers Our People A globally leading digital B2B2C Risk Knowledge Client Collaboration Leadership & Access iptiQ Capital Strength insurance platform Our People A balanced approach to accountability, Risk Knowledge Client Collaboration Leadership & Access Group foundation Capital Strength shared values and strengths Our People Highlights of Swiss Re’s Sustainability approach| May 2021 4 Our strategy offers more than traditional risk transfer sigma research SONAR New emerging risks insights SwiftRe® Surety Client Portal Magnum Ex Tool CatNet® MPL for explosions PUMA FacEasy Engineering underwriting PULSE Online risk management Public sector Traditional risk Large and complex risk transfer transfer transactions Highlights of Swiss Re’s Sustainability approach| May 2021 5 Reinsurance has built up industry-leading competitive advantages Core Transactions Solutions Traditional reinsurance offerings Tailored and structured reinsurance Additional value-adding services Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People How we win Brand and Scale and Ability to Balance sheet Joint risk Tech, innovation reputation presence execute strength sharing and R&D Putting Increase support to Regional & Balance Transactions Solutions support strategy National clients with traditional between small, mid-sized and differentiation in Core and into action covers large deals Transactions 4-5% p.a. Diversified book of >40% of our clients mid-term premium growth Transactions with ~200 utilise one or more of outlook in Core market1 deals across regions our Solutions 1 Swiss Re Institute forecast of global ceded premium CAGR, 2020-2030 Highlights of Swiss Re’s Sustainability approach| May 2021 6 Corporate Solutions has taken actions to restore stability and underwriting profitability Good progress in implementing management actions Strategic priorities • Pruning actions largely completed by the end of 2020 While implementing management actions, Corporate Solutions will grow selectively in line with its strategic priorities Risk Knowledge Client Collaboration Leadership & Access Capital Strength • 12% price increases achieved in 2019 Our People and 15% further increases in 2020 • 2020 combined ratio of 116.5% Combined ratio target <97% in 2021 De-commoditise our Grow with Expand through tech- core business differentiating assets driven solutions Access to commercial lines risk pool and to corporate clients remains strategic to Swiss Re Group Highlights of Swiss Re’s Sustainability approach| May 2021 7 iptiQ – a global B2B2C digital insurance platform aimed at both digital and traditional affinity distribution partners B2B2C model Global expansion accelerating • iptiQ has become a standalone division, reporting directly to Corporates Insurers B2C the Group CEO B2B • Successful launch of iptiQ P&C in Europe with 6 distribution partners already live Risk Knowledge Client Collaboration Ecosystems Banks Leadership & Access • COVID-19 accelerates shift to digital sales distribution Capital Strength Our People channels, providing further long-term growth opportunities >500k customers with 40 partners in 5 markets We are further expanding our B2B2C offering while increasing scale of our existing partnerships Highlights of Swiss Re’s Sustainability approach| May 2021 8 Swiss Re operates a truly global and diversified Group Premiums Americas EMEA Asia «We make the EVM1 USD 24bn USD 19bn USD 15bn world more US GAAP2 USD 19bn USD 13bn USD 8bn resilient» >150 countries >100 000 P&C clients supported >175 million Premiums per country1 family members supported through L&H Re Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People Swiss Re’s global access to risks and diversified earnings generation is exceptional in the insurance industry 1 EVM premiums and fees, FY 2020 2 US GAAP net premiums earned (including fee income from policyholders), FY 2020 Highlights of Swiss Re’s Sustainability approach| May 2021 9 We monetise our R&D capabilities, cementing Swiss Re as the leading knowledge company R&D value driver framework Strategic focus areas Project examples Business steering R&D for UW priorities Key perils risk views and pricing tools Risk engineering services Insurance beta Flood risk solutions Rapid Damage Assessments Capital Efficiency allocation Market intelligence Insurance markets and cycle analysis Macroeconomic R&D Data, (automated) solutions Magnum, Life Guide, Commer- Risk selection Engineering digital, SwiftRe 2.0 cialisation and pricing Process re-engineering Group data integration Risk Knowledge Client Collaboration Leadership & Access Capital Strength Our People 550 9 focused R&D teams and ~100 2021 R&D FTEs R&D programmes 6 Group- and BU-clustered activities Highlights of Swiss Re’s Sustainability approach| May 2021 10 Our Group targets and capital management priorities remain unchanged Group financial targets Capital management priorities Over-the-cycle targets Priority I Priority II Ensure superior capitalisation Grow the regular dividend Rf + 700 at all times and maximise with long-term earnings, and bps financial flexibility at a minimum maintain it Return on equity1 Capital management priorities Deploy capital for Repatriate business growth where excess capital to 10% it meets our strategy and shareholders ENW per share growth2 profitability targets Priority IV Priority III 1 700bps above 10y US government bonds. Management to monitor a basket of rates reflecting Swiss Re’s business mix 2 The 10% ENW per share growth is calculated as: (current-year closing ENW per share + current-year dividends per share) / Highlights of Swiss Re’s Sustainability approach| May 2021 11 (prior-year closing ENW per share + current-year opening balance sheet adjustments per share) What is Swiss Re’s approach to sustainability? Through our Group Sustainability Strategy, we aim to reinforce our efforts to make the world more resilient and sustainable, thus helping to maintain our competitiveness, today and in future Building on our successful track record, we continue to implement our Group Sustainability Strategy Through our Group Sustainability Strategy, we reinforce our efforts to make the world more resilient and sustainable Read more online More details on slides 14, 15, 19 and 28 Highlights of Swiss Re’s Sustainability approach| May 2021 13 Our most material topics are identified through a holistic and structured process Our Group We draw on our Sustainability internal risk expertise Strategy guides us in and dialogue with deciding what is most stakeholders to material identify material topics We follow a Key elements include: structured process to ✓ Business opportunities determine what topics ✓ Sustainability risks in are most material for core business our industry to achieve ✓ Emerging risks our goal of advancing ✓ Stakeholder insights sustainability ✓ Data from third-party providers Read more online Highlights of Swiss Re’s Sustainability approach| May 2021 14 Our sustainability ambitions cover areas where we have significant positive impact to support sustainability and strengthen resilience Ambition Mitigating climate risk Building societal Driving affordable and advancing the resilience insurance with digital energy transition solutions Key 2020 • Weather-related nat cat protection • 296 000 beneficiaries of L&H insurance • Continued engagement with key through partnership with Women's World stakeholders on embracing opportunities achievements • 130 (sub-)sovereigns advised on climate Banking offered by digitalisation in a responsible risk resilience and USD 10.7 billion in and ethical way protection offered • Provided insurance protection to smallholder farmers against various natural • Increased access to insurance via digital • Further involvement in offshore wind farm perils means, thus helping to closing the projects in Asia • Jointly organised a four-part virtual event protection gap. Examples include our iptiQ series with UNEP FI on Sustainability platform and a parametric insurance • Revised thermal coal policy Leadership in Insurance structure for the Indian state of Nagaland Links to UN SDGs Read more online Highlights of Swiss Re’s Sustainability approach| May 2021 15 Swiss Re has a long tradition of sustainability and reinforces this with further ambitious steps towards net-zero emissions Signing of More details on next slides and on slides 55 - 59 Adopted FSB TCFD recommendations Net-zero 100% GHG Signing of Reduced investing Reduced providing powered emissions in thermal re/insurance First sustainability- by renewable coal companies to thermal coal in operations related publication sources 2003 2009 2015 2017 2019 2023 2050 1979 2007 2012
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