Introduction to Zurich A value proposition for investors April 2021 Investor Relations and Rating Agency Management Group Finance Content MAIN SECTIONS OTHER IMPORTANT INFORMATION (use symbols to navigate through the document) (use symbols to navigate through the document) Group overview, strategy, and financial targets Contact details and other information Property & Casualty (P&C) Disclaimer Life Farmers Investments and capital management Sustainability Back to content page © Zurich © 2 GROUP OVERVIEW Our proposition to investors RESILIENT RESPONSIBLE AND BUSINESS MODEL CLEAR STRATEGY IMPACTFUL BUSINESS A balanced and diverse Focus on customer Tackling climate change global business Industry leading capital Inspiring confidence in a levels with conservatively Simplify digital society managed balance sheet Ensuring work Attractive return on equity Innovate sustainability © Zurich © 3 GROUP OVERVIEW A truly global and highly diversified group KEY FACTS1 A BALANCED GLOBAL BUSINESS2 USD 50bn Total revenues (excl. result on UL investments) BOP by business (%) BOP by region (%) USD 226bn Total group investments (economic view) 8% 26% 6% 32% USD 4.2bn Business operating profit (BOP) 45% USD 3.8bn Net income attributable to shareholders (NIAS) 29% 54% 182% SST regulatory solvency ratio2 USD 38bn Shareholders’ equity Europe Property & Casualty (incl. Farmers Re) North America (incl. Farmers) CHF 56bn Market cap Life (incl. Farmers Life) Asia Pacific Farmers Management Services Latin America 1 Values are for the full year 2020 unless otherwise noted. Investments, solvency ratios, shareholders’ equity and market cap are as of December 31, 2020. 2 © Zurich © Adjusted average BOP for FY-16 to FY-20. BOP split by business excludes Group Functions & Operations and Non-Core Businesses. BOP split by region excludes additionally Group Reinsurance. 4 GROUP OVERVIEW Genuinely global franchise with distinct capabilities NORTH AMERICA #4 in commercial insurance #2 in crop insurance ASIA PACIFIC #6 in US personal lines EMEA #5 in P&C, #1 in Life retail through Farmers Exchanges2 #2 in P&C direct #4 insurance company overall Top 3 #4 in P&C, #9 in Life global #6 in P&C3 commercial #4 in P&C insurer1 LATIN AMERICA #3 in P&C #4 in Life Source: Axco, Company reports and presentations, local statistics (2020 or most recent available), Dowling & Partners, SNL Financial, Strategic Insight, Zurich internal data. 1 Based on FY-20 NEP. Data includes only primary insurance and is on a more comparable basis. Zurich includes alternative markets in North America and municipal business in the UK and excludes SMEs. 2 For all references to Farmers Exchanges see the disclaimer and cautionary statement. 3 © Zurich © Pro-forma for the acquisition of Adira Insurance, based on FY-19 data. 5 GROUP STRATEGY AND TARGETS Simple execution, higher ambition 2016 – 2019 ACHIEVEMENTS 2020 – 2022 AMBITION SIMPLIFIED AND FLEXIBLE ORGANIZATION 1 Delayered structure BOPAT ROE >14% Simplified IT landscape Simplified products and services IMPROVED EFFICIENCY Cumulative cash remittances USD >11.5bn Over-delivered on USD 1.5bn savings program Reduced corporate center expenses STRENGTHENED BUSINESS AND CULTURE SST2 Strengthened position of our key countries >160% Improved the Commercial profitability Built culture of customer focus and innovation Reinvigorated growth with low earnings volatility Earnings per share growth3 >5% p.a. 1 Business operating profit after tax return on equity, excluding unrealized gains and losses. 2 From FY-20 the basis for the target capitalization has been changed to the Swiss Solvency Test (SST), previously the target range was based on the Group’s internal Z-ECM basis. 3 © Zurich © Before capital deployment. 6 GROUP OVERVIEW Strong capital position and cash generation VERY STRONG FINANCIAL STRONG CAPITAL POSITION, GROUP HIGHLY CASH GENERATIVE, CASH STRENGTH SWISS SOLVENCY TEST 1 (%) REMITTANCE (USDbn) 3.7 3.8 AA (very strong) / 240% 3.9 3.4 3.4 0.2 outlook ‘stable’ 221% 222% 0.5 0.1 216% 2.8 1.2 220% 1.4 1.2 1.4 204% 1.5 0.1 1.1 1.1 200% 189% 0.9 0.7 Aa3 (excellent) / 182% 0.9 0.4 1.5 outlook ‘stable’ 180% 2.5 2.3 2.3 1.7 2.0 160% 1.5 -0.2 -0.1 140% -0.6 -0.8 -0.8 -1.0 A+ (superior) / -0.9 -0.9 outlook ‘stable’ 120% FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 100% 1.8 3.2 3.0 3.7 4.1 3.8 FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 Property & Casualty Group Functions Life Non-Core Businesses SST Farmers Net income attributable SST target capital of ’160% or above’ to shareholders 1 Estimated Swiss Solvency Test (SST) ratio as of January 1, 2021, has been calculated based on the Group's Internal Model, which has been approved by the Swiss Financial Market Supervisory Authority FINMA. The SST ratio as of January 1 has to be filed with FINMA by end of April each year and is subject to review by FINMA. FINMA agreed to the use of standard yield curves for the main © Zurich © currencies to calculate the SST, starting end of Q1 2020. SST ratio as of January 1, 2020 has been re-calculated on the same basis for disclosure purposes in order to allow better comparison. 7 GROUP STRATEGY AND TARGETS We have adapted plans to the changed environment and expect to meet our 2020 – 2022 targets ILLUSTRATIVE BOPAT ROE DEVELOPMENT (%) ~15% ~0.0-0.5% 14.2% ~2.0-2.5% ~1.5-2.0% ~0.5-1.0% ~1.5-2.0% ~1.0-1.5% FY-19 Growth in Investment income Business growth Productivity Portfolio quality Capital FY-22 equity base allocation / other illustrative © Zurich © 8 GROUP STRATEGY AND TARGETS Actions during the crisis have earned the trust and confidence of our stakeholders, while our ESG approach is well recognized STRENGTHENED CUSTOMER FOCUS HIGHER EMPLOYEE SATISFACTION INDUSTRY LEADING ESG RATINGS3 Retail NPS move2 NPS place to work ‘AA’ rating 1 +3 +22 +7 #1 in insurance group +8 +13 Absolute score of 4.4 Oct-19 Jul-20 (out of 5.0) +3 Support during COVID-19 crisis: +2 • Rapid move to working from home ‘A-’ Management Level +4 • Implementation of new digital tools • Hospitalization benefits for employees +3 and their families 1 For all references to Farmers Exchanges see the disclaimer and cautionary statements. 2 FY-20 vs. FY-19. North America NPS data reflects commercial business. 3 © Zurich © MSCI ESG rating report July 2020, DJSI score Nov 2020, FTSE Industry Classification Benchmark (ICB), Dec 2020, CDP Climate Change Score 2020. 9 Property & Casualty PROPERTY & CASUALTY P&C – our value proposition STRONG & BALANCED FRANCHISE HIGH QUALITY EARNINGS WELL PLACED TO GAIN FROM PRICING CYCLE • Leading global commercial insurer, • Consistent reserving approach • Focus on rate increases started profitable retail franchise resulting in stable reserve releases ahead of market • Equally weighted to EMEA and North • Reduced catastrophe and large loss • Strong capabilities which are not America, with growing business in volatility easily replicated APAC and Latin America © Zurich © 11 PROPERTY & CASUALTY A balanced footprint and business mix leveraging an open distribution architecture FOOTPRINT BUSINESS MIX DISTRIBUTION FY-20 Gross written premiums by region (%)1 FY-20 Gross written premiums by line of business (%) FY-20 Gross written premiums by distribution channel (%) 6% 8% 7% 8% 21% 8% 18% 43% USD USD 14% USD 35.5bn 35.5bn 35.5bn 43% 16% 71% 36% EMEA APAC Motor Liability Worker Injury Brokers Banks and affinities North America Latin America Property Special lines Agents Direct 1 © Zurich © The split excludes Group Reinsurance and Eliminations. 12 PROPERTY & CASUALTY Leading global commercial insurer, profitable franchise across both customer units CUSTOMER UNITS COMMERCIAL INSURANCE RANKING UNDERWRITING PROFITABILITY FY-20 Gross written premiums by customer unit (%)1 FY-20 Net earned premiums (USDbn)2 FY-20 AY CR ex Catastrophes and COVID-19 (%)3 90.9% 93.7% 34% USD 35.5bn 66% Commercial Retail and SME Commercial insurance Retail and SME 1 The split excludes Group Reinsurance and Eliminations. 2 Source: Company reports. Data includes only primary insurance on a more comparable basis. Zurich view includes alternative markets in North America and municipal business in the UK and excludes SME. 3 © Zurich © Accident year combined ratio excluding Catastrophes and COVID-19 impacts (frequency benefits, Cover-More operating loss included in underwriting result, and premium refunds). 13 PROPERTY & CASUALTY Consistent reserve releases and reduced large loss volatility NET PRIOR YEAR RESERVE DEVELOPMENT (% of NEP) LARGE LOSS VOLATILITY (ppts)1 8ppts 3ppts -1.4% -1.6% -1.8% -2.3% -2.3% 16 14 20 - - FY-16 FY-17 FY-18 FY-19 FY-20 - Q1 Q1 Q4 Indicated range (1-2% of NEP) 1 © Zurich © Volatility is measured as difference between lowest and highest ratio for the indicated period. 14 PROPERTY & CASUALTY Balance sheet and large loss volatility well managed through reinsurance GROUP CATASTROPHE REINSURANCE PROTECTION GLOBAL SURETY EXCESS OF LOSS (USDm) • Designed to manage earnings volatility • North America: USD 325m coverage per customer in excess 200 115 of USD 75m retention 200 • Other regions: USD 362.5m coverage per customer in excess 1,000 of USD 37.5m retention 200 1,000 • Aggregate limit: USD 1.1bn 200 600 1,000 250 458 MAIN ADDITIONAL TREATIES 2 300 800 499 650 200 Global property per risk Europe U.S. all perils Rest of world Global aggregate all perils1 all perils cat treaty U.S. property quota share Global aggregate cat treaty Global cat treaty 10% co-participation Combined global cat treaty3 Regional cat treaties U.S. liability quota share U.S. wind swap4 Retention 1 Europe cat treaty calculated with EUR/USD exchange rate as of March 31, 2021 (EUR 390m in excess of EUR 425m).