Acquisition of MetLife Inc.’s U.S. P&C business

December 11, 2020 © Zurich and support Farmerssupport and Exchanges strategy Leveraging Zurich’s strength to increase stable fee earnings 2 1 MESSAGESKEY December 11,December 2020 4 3 Financially attractiveFinancially resourcesexternal and debt throughinternal Funded Exchangesaccelerated Growthat FMS deepened Distributiondiversified and strengthenedposition Farmers Exchangesmarket stablefee earnings toZurich increase share of See Farmers Management Services (FMS); pro 2019 For all slide references - 5 forma. for details to Farmers of transaction 3 and Farmers and Exchanges structure business see the . operating disclaimer profit and and Estimatedcash returnon investment from of~10% year 3oftransaction ROEand EPS expected tobe accretive toZurich from firstfull year of transaction; resourcesand hybrid debt Zurich’s share transaction of the employer channel and MetLife’s standard P&C products across independent agent network Potential toaccelerate growth at Farmers Exchanges and FMS marketing platform and a deepened presence inindependent agent and affinity channels Entryfor Farmers Exchanges intothe employer distribution channel via a leading worksite with toppositions 10 in all regionsUnited ofthe States Transaction gives Farmers Exchanges a nationwide presence ranking 6 year 3; pro Farmers Exchanges cautionary (BOP). statement - forma Farmers contribution toGroup BOP . 1 GWP toincrease ~18% 4 of USD 2.43bnof USD expected tobe funded roughly equally from internal 2 with corresponding increase in FMS 3 increased by ~3ppts to31% 3 throughFarmers use of brand in Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business th in personal lines 3 earnings from 2 and 2 © Zurich 1 earnings increased Contribution toZurichearningsfrom Farmers stable fee RATIONALEZURICH December 11,December 2020 3 2 FY Based on average cash remittances over net income attributable to shareholders from Farmers from 2012 Pro BOP split by business excludes Group Functions & Operations and Non - 19 ZURICH GROUPBOP - forma based on steady state earnings of acquired business post synergies. 28% 24% BOP BOP by business (%) Property & Casualty 47% 1 Life BOP BOP by business pro 31% Farmers 23% - Core Businesses. - forma (%) 45% 2 – 2019. ~100% Strong conversion of Farmers earnings to cash of Farmers earnings conversionStrong earnings to Group contribution Stable fee light Capital GDP worldgrowingand with the linein ProfitableU.S. market, personallines largest in - based Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business - based business based 3 3 © Zurich from year 3 oftransactionandimmediate accretion toearnings Attractive financials for Zurich withestimated cashROIof ~10% FINANCIALS KEY December 11,December 2020 2 1 EXPECTED ZURICHEXPECTED P&L IMPACTS ( Pro Based on the assumption of USD hybrid 1.2bn debt issuance and a 2ppts increase in Farmers - forma as 2020. 30, per September Deal related related Deal Farmers Re FMS BOP charges BOP ~230m ~145m ~30m USD m BOP and ~60% BOP in and split ~40% primarily Recognized and over 2022 2021 share agreement in FarmersAdditional BOP Refrom first full year of quota amortizationdistribution of agreement intangiblep.a. of and ~40m net ofUSD from in 2021 ~5% equating ~7% to a 2023From ) outside of BOP outside Re’s all lines quota share agreement. MGEP margin,MGEP phasing with SHEET IMPACTS SHEET ZURICHEXPECTEDBALANCE CASHAND 60m p.a. 60m ~23.7% ~+USD - 4ppts Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business net income of generation Cash in excess transaction post leverage ratio Moody’s ratio SST Lower 1 1,2 4 © Zurich the Farmers Exchanges to beco Purchase priceofUSD3.94bn OVERVIEWTRANSACTION December 11,December 2020 1 SIMPLIFIED TRANSACTION STRUCTURE For Zurich Insurance Group all references Debt Debt investors 1 to Farmers Exchanges 1 3 Farmers Group, Inc see MetLife U.S. P&C rd party reinsurers Farmers Re the (FGI) disclaimer 2 . and and 1 cautionary , withexpected2021 closingin Q2 3 statement 4 5 . Farmers Exchanges - financed by Zurich and and financed byZurich to customary regulatory approvals. regulatory to customary occur subject to Q22021in expected of transaction Closing • • • • • 5 4 3 2 1 Farmers Exchanges 10 from 2.25% Farmers Re up to 26%, with from currentthe all the in increase an and resources Farmers Exchanges of USD 1.51bn for consideration cash to Farmers Exchanges transferred immediately liabilities and assets certain less U.S. P&C business MetLife of USD 3.94bn consideration for cash U.S. of MetLifeP&Cbusiness 100% FGI acquires debt of hybridissuance external and sources from internal is funded Inc. (FGI) Group,that Farmers subsidiary its to loan internal an Zurichprovides - year exclusive distribution agreement between agreement distribution exclusive year 1 1 and MetLife and fromfunded internal consideration Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business - lines quota share quota lines 1 5 © Zurich 1 increased scale in aconsolidating market Transaction gives Farmers a trulynationwide presence and RATIONALEFARMERS EXCHANGES December 11,December 2020 3 2 FY FY For Includes Includes Alaska and Hawaii (not - Farmers Exchanges Farmers Exchanges pro - 19 19 pro 19 all Berkshire Hathaway (GEICO) references U.S. - forma; Source: Financial. SNL Farmers Exchanges PERSONAL LINES P&C LINES DWP ( PERSONAL American Family Liberty Mutual to Farmers Nationwide Progressive State Farm State Travelers MetLife - Allstate forma USAA Exchanges 1 1 pictured 1 3.6 see ). 9.4 10.0 10.0 the disclaimer 16.5 18.6 20.1 22.0 and and USD cautionary 32.3 32.7 bn 35.1 ) 2 statement . 59.9 A TOP 10 Change Change in market position / FY USD 7,436m / / 10.8% USD 7,436m 2 nd West → U.S. 3 2 nd PERSONAL LINES PLAYER NATIONWIDEPLAYERLINES PERSONAL USD 4,994m / / 8.5% USD 4,994m 6 South South West th → ~15.7m policies in forcein policies ~15.7m - 19 19 pro 4 USD / 5.5% 20.1bn th - 7 forma DWP ( Nationwide th → USD 3,145m / / 4.2% USD 3,145m Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business 10 6 Mid West th th USDm → 6 ) / pro th - forma market share (%) USD 2,306m / / 2.6% USD 2,306m 10 South South East USD 1,462m / / 2.8% USD 1,462m th 13 USD 714m / / USD 4.1% 714m 24 Mid Atlantic → North East th th 2 → 9 → th 10 10 th th 6 © Zurich Farmers Exchanges distribution deepened anddiversified RATIONALEFARMERS EXCHANGES December 11,December 2020 1 FY For - 19 all references 12% GWP Farmers Independent Independent agents Exclusive agents 6% 20.7bn USD BY DISTRIBUTION(%) CHANNELS Exchanges to Farmers 83% Exchanges Direct, worksite marketing, affinity 1 see Farmers 18% the disclaimer 13% Exchanges 24.3bn USD and and pro cautionary - 70% forma statement ~35,000 ~11,300 3,800+ . 250+ dedicated sales force dedicated sales affinity relationshipsActive via marketing channel worksite from in scope employer relationships Active relationships fromMetLife new relationships incl.~3,000 Independent agent agents Farmers Exchangesexclusive Metlife’s FY - 19 GWP Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business Home Auto Farmers BY LINE OF BUSINESS (% OF BUSINESS BY LINE 11% 28% Business insurance Specialty Exchanges 9% 24.3bn USD 1% pro - forma 51% Other ) 7 © Zurich products to accelerateproducts growth Potential to leverage of breedFarmers best brand and RATIONALEFARMERS EXCHANGES December 11,December 2020 2 1 INTO CHANNELEMPLOYER BRAND FARMERS ABILITY TO LEVERAGE 2020 Kantar Kantar Research, 2020 For all references Metlife 6.9 U.S. brand awareness (%) to Farmers data as ~4x Exchanges of October 1 Exchanges Farmers see 28.0 04, 2020, 2 the disclaimer unaided and and brand cautionary awareness OPPORTUNITY TO LEVERAGE PAST SUCCESS IN THE INDEPENDENT AGENT CH AGENTPAST OPPORTUNITYSUCCESSINDEPENDENT IN THE TO LEVERAGE statement : « 2003 What . brands of auto , home or +5% life Total GWP insurance have you heard 2019 of ?». • • Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business relationships Farmers’agent independent home productsautointoand Roll relationships agentindependent intoincremental MetLife WestForemostand products LeverageBristolsuccessful - out MetLife’sout standard ANNEL 8 © Zurich Farmers a BUSINESSFARMERSMODEL December 11,December 2020 1 For dedicated toproductsselling Farmers New WorldLife through Farmers exclusive Life insurance company all (e.g. underwriting, underwriting, (e.g. policy administration, premium collection, Providesnon references investment management, and accounting and reporting) agents to Farmers - claims and ancillary services to the Exchangesand services claims ancillary unique Farmers Group,Inc. Exchanges see the business disclaimer Reinsurance companyto used Farmers ReinsuranceCo. reinsure the Exchanges and and cautionary structure statement . Fees as % of Gross Premiums Earned Services brand and distribution exclusive (e.g. assets agents, direct callcenters) Carry underwritingCarry the Farmersown wellas as and risk handle claims, in placing business outside Farmers exclusiveagents KraftLake Brokerage Brokerage dedicated to of the Exchangesof Farmers Exchanges Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business FarmersSolutions Financial Farmers exclusiveagents Broker in providing clientswith investment services 1 - dealer to support Policyholdersowned Zurich owned 9 © Zurich MetLife’sP&C business U.S. OVERVIEW December 11,December 2020 1 GWP Source: Source: MetLife company reports (GWP), FinancialSNL (Geographic mix), MetLife data (Product mix; distribution channel). FY 3.5 - ( 17 USD METLIFE bn FY ) +2% 3.6 - 18 FY 3.7 - 19 GEOGRAPHIC MIX GEOGRAPHIC South South East Mid West 12% 16% FY 12% USD 3.6bn - 19 DWP DWP 19 (%) 1 19% North East Mid Atlantic an excellent complement toFarmers 21% 20% South West PRODUCT MIX 33% FY Auto USD 3.6bn - 19 NWP NWP 19 (%) Home 67% Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business DISTRIBUTION CHANNEL Affinity Worksite marketing 46% FY USD 3.6bn - 19 NWP NWP 19 (%) 4% Independent Independent agents 50% 10 © Zurich 2 1 financials with robust MetLife’sP&C business U.S. OVERVIEW December 11,December 2020 4 3 STATUTORY COMBINEDRATIO(%) STATUTORY INCOMENET ( Anticipated pre Underlying run Reflects closing of small commercial and consumer direct program ( Reflects mainly higher investment income due to actual equity being in of excess allocated equity used for management reporti METLIFE 97.4% FY FY 197 - - 17 17 - - rate includes intra closing adjustments of ~USD to reduce 0.4bn capital and surplus. - group group charges which will be excluded upon completion of the transaction; underlying combined 93.9% FY FY 345 - - 18 18 USD m ) combined ratio 97.2% FY FY Underlying 245 - - 19 19 MyDirect 3 ) to new business. ~91% 9m 9m 93.6% 230 - - 20 20 CAPITAL ANDSURPLUS ( (US GAAP)( ADJUSTEDEARNINGS UNDERLYING FY 249 - 2,266 FY 19 ng - 17 and and impact of repayment of intercompany debt before completion of transaction. ratio based on underlying run Deal perimeter 24 2,322 FY USD - 1 18 Discontinued m operations Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business ) - rate adjustments post completion. 45 2 2,159 FY recurring items - 19 Other Other non 51 - USD m Q3 Underlying 2,110 run ) - 20 368 - rate 4 3 11 © Zurich Disclaimer cautionaryand statement December 11,December 2020 THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS.AS WELLFINANCIAL MANAGEMENT,AND COMPANY ABOUT THE INFORMATIONDETAILED WILL CONTAIN ISSUERTHAT AND THE MEANS O MADE BY WILL BE UNITEDSTATES IN THE MADE OF SECURITIESTO BE PUBLIC OFFERING ANY AND FROMEXEMPTIONREGISTRATION, OR OFFEREDOR SO BE SECURITIESNOT MAY UNITED STATES; AN OFFEROFSECURITIESIN THE FOR SALE CONTAIN DOES NOTTHIS COMMUNICATION This communication does not constitute aninvitation or an offer thefor sale purchase ofsecuritiesor in anyjurisdiction. requiringPersons shouldadvice consult an independentadviser. It should noted be that past is performance not a guide toPlease performance. also notefuture that interim not results are Exchanges, but is to provided support an understanding Inc. andReinsurance FarmersGroup,Comp Farmers of theof performance Insurance Company Ltd ownership and Zurich interestInsurance Group have any Ltd, in theFarmersExchanges. Financial informa Exchangesfact fortheFarmers and in that capacity certain provide non domiciled inter to Exchanges” “Farmers Insurance Exchange,Farmers mean All references FireInsurance Exchange,Insurance Exchange Truck and Ltd no Group undertakes obligation to publicly theseany of forward update orrevise potentiallyor theof Group a memberby exposing covered to the Group additional if losses terms orconditions are retroactiv insurance policies besubject mayas by theand writtenand interpretedto Group regulatory, legislative, governmental and li related statements, such statements on made the basisof were circumstances prevailing at acertain time and on the basisof regulators direct a on bearing may have the results operations of Zurich of Insurance Group Ltd and its and on Group whether increased and lapselitigationmortality policy rates; (viii)renewal (vii)and morbidity activityexperience; and regulatory interestlevels of exchangservices industriesrates financial of andcurrencyperformance in particular;markets;(iv)(iii) statements (or past from results). Factors such as ( other factors that could cause actual results and plans and objectives Zurich m of Insurance Group Ltd theto or Group differ expecteddevelopments. Undueshould reliance not be placed onsuch statements because, subjecttheirnature, theyare by to k conditions, dividend policy and underwriting and claims results, as well as statements regarding the understanding Group’s of Forward Insurance Group Ltd theGroup). or Zurich Insurance Group (the Certain statements in this document forward are - insurance exchanges bytheirpolicyholders owned with oversight governance Farmers theirBoards Governors. by of - looking looking statements, including, but not limited to, statements that predictioare i ) general economic ) conditions and competitive factors, the aglobal risk of particularly(ii) markets; in keyeconomic downtu - claims and services ancillary servicesto Ex the Farmers - looking statements include statements regarding the Group - looking looking statements, to new whetherreflect e r ac ates; (v) frequency, severity and developmentof severity insured claims (vi)frequency,events; ates; (v) tions; changes and (ix) in laws and regulations and in the policies of nec ate tig ely spe ge the changes. Neither Farmers Group, Inc., norits changes. Group, Farmers Neitherparent companies, Zurich ation rially from those rially from impliedor expressed in the forward essarily indicativeresults. essarily full of year ns orindicateof trends, future events, plans objectives or Zurich of now neral economic, neral financial and insurance market conditions and amended by way of legislativeof amended byway regulatory action.or Zurich Insurance cific terms and conditions (in particular applicable exclusions) of information, events orcircumstances future otherwise. or tio targets Specifically will beachieved. in relation with the COVID the any - n about Exchangesthe Farmers to is proprietary the Farmers Group, Inc. and its Group, subsidiaries appointed are as the attorneys related developments affecting the extentpotential of losses n and unknown risks and uncertainties and canby beaffected ’s targeted’s on profit, return equitytargets, expenses, pricing ir subsidiariesir and affiliates. ExchangesCalifornia are The three . LD LD F A Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business IN THE UNITED STATES ABSENT REGISTRATIONSTATES ABSENT UNITED IN THE PROSPECTUS THAT MAY BE OBTAINED FROM OBTAINED BE PROSPECTUS MAY THAT rn, in the financial - looking - 19 - in - 12 © Zurich For furtherinformation December 11,December 2020 Patricia Heina Patricia Events Vitale Gianni Matlock Michèle Samuel Han Bonsante Francesco Burden Richard RelationsInvestor and Rating Agency Management CALL US +41 44 625 38 44 38 625 44 +41 26 48 625 44 +41 50 28 625 44 +41 57 32 625 44 +41 68 00 628 44 +41 40 96 628 44 +41 VISIT OR FOLLOW US VISIT FOLLOW OR   Followus Financial resultsand Financial reports InvestorRelations website Acquisition of Inc.’s MetLife U.S. AcquisitionP&C business 13