Investor Day – Delivering and building for the future December 5, 2018 London Zurich Insurance Group Agenda TIME (GMT) TOPIC SPEAKER 09:30 – 10:00 Delivering and building for the future Mario Greco 10:00 – 10:30 Well on track to deliver on our targets George Quinn 10:30 – 11:00 Q&A 11:00 – 11:15 Coffee break 11:30 – 12:15 Break out session 1 North America, Switzerland, Australia and Ireland teams 12:15 – 13:15 Lunch break 13:30 – 14:15 Break out session 2 North America, Switzerland, Australia and Ireland teams 14:25 – 15:10 Break out session 3 North America, Switzerland, Australia and Ireland teams 15:20 – 16:05 Break out session 4 North America, Switzerland, Australia and Ireland teams © Zurich © December 5, 2018 Investor Day 2 Disclaimer Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the ‘Group’). Forward-looking statements include statements regarding the Group’s targeted profit, return on equity targets, expenses, pricing conditions, dividend policy and underwriting and claims results, as well as statements regarding the Group’s understanding of general economic, financial and insurance market conditions and expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and plans and objectives of Zurich Insurance Group Ltd or the Group to differ materially from those expressed or implied in the forward looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in key markets; (ii) the risk of a global economic downturn, in the financial services industries in particular; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity experience; (vii) policy renewal and lapse rates; and (viii) changes in laws and regulations and in the policies of regulators may have a direct bearing on the results of operations of Zurich Insurance Group Ltd and its Group and on whether the targets will be achieved. Zurich Insurance Group Ltd undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. All references to ‘Farmers Exchanges’ mean Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and their subsidiaries and affiliates. The three Exchanges are California domiciled interinsurance exchanges owned by their policyholders with governance oversight by their Boards of Governors. Farmers Group, Inc. and its subsidiaries are appointed as the attorneys-in-fact for the Farmers Exchanges and in that capacity provide certain non-claims administrative and management services to the Farmers Exchanges. Neither Farmers Group, Inc., nor its parent companies, Zurich Insurance Company Ltd and Zurich Insurance Group Ltd, have any ownership interest in the Farmers Exchanges. Financial information about the Farmers Exchanges is proprietary to the Farmers Exchanges, but is provided to support an understanding of the performance of Farmers Group, Inc. and Farmers Reinsurance Company. It should be noted that past performance is not a guide to future performance and that interim results are not necessarily indicative of full year results. Persons requiring advice should consult an independent adviser. This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction. THIS COMMUNICATION DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS. © Zurich © December 5, 2018 Investor Day 3 Strategic update – Delivering and building for the future Mario Greco, Group Chief Executive Officer STRATEGIC UPDATE Key messages Fit for the We are fully delivering on our financial targets; discipline and efficiency have been restored; future our strong balance sheet and cash generation support an attractive and growing dividend Improving The rebalancing of our business mix will support earnings growth as well as lower volatility portfolio mix More focused We have built leading positions in attractive markets through targeted acquisitions while footprint releasing capital from non-core operations Customer We are strengthening our capabilities and expanding service offerings to deepen our focus customer relationships and drive profitable growth Preparing for We are now ready to start a new phase and are positioned to deliver future earnings growth the next phase © Zurich © December 5, 2018 Investor Day 5 STRATEGIC UPDATE We are delivering on our targets 2017-2019 TARGETS STATUS BOPAT ROE >12% and increasing 12.3% at HY-18 EXPENSE SAVINGS USD 1.5bn USD 1.1bn at FY-18e Z-ECM 100-120% 134% at 9M-181 CASH REMITTANCES >USD 9.5bn >USD 7bn in 2017-18e Minimum CHF 18 DIVIDEND NIAS payout ~75% CHF 18 for FY-17 1 © Zurich © Ratio as of September 30, 2018. Reflects midpoint estimate with an error margin of +/- 5%. December 5, 2018 Investor Day 6 STRATEGIC UPDATE We look different to the company we were in 2016 FROM TO Complex Group structure Disciplined execution Product-based company Customer-led company Focused and balanced footprint Dispersed footprint Strong capital base Balance sheet provider Empowered local units Increased service offering Strong management team © Zurich © December 5, 2018 Investor Day 7 STRATEGIC UPDATE We have significantly reduced expenses both in absolute and relative terms BREAKDOWN OF EXPENSE SAVINGS (%) P&C OTHER UNDERWRITING EXPENSES (INDEXED TO 2015)1 115 USD 10.3bn USD 1.1bn USD 0.4bn 110 11% 20% ~20% 105 Increasing 100 ~35% 59% 42% 95 90 85 Saving 80 38% ~45% 31% 75 70 FY-15 FY-18e Rest of period FY-15 FY-16 FY-17 Cost base Cumulative net savings Group Business Units Operations Zurich Peers2 1 Other underwriting expenses or, if not available, administrative expenses evolution over time, based on peer reporting currencies. 2 Seven comparable peers (4 based in the U.S., 2 based in Europe, 1 in APAC). © Zurich © December 5, 2018 Investor Day 8 STRATEGIC UPDATE Our portfolio has a growing exposure to lower volatility businesses BOP SPLIT BY BUSINESS (%) P&C NEP BY CUSTOMER UNIT (%) 29% 27% 55% 60% 25% 31% 46% 42% 45% 40% FY-16 HY-18 FY-16 HY-18 Farmers1 Life2 P&C Retail & Other Commercial 1 Includes Farmers Management Services and Farmers Re. 2 Including Farmers Life. © Zurich © December 5, 2018 Investor Day 9 STRATEGIC UPDATE Changes to new business mix are steadily improving our commercial portfolio and support an improved combined ratio NEW BUSINESS GWP (%)1 TOTAL GWP (%)2 AY COMBINED RATIO (%)3 -10ppts 25% 27% 29% 26% 30% 36% 22% 25% 25% 26% 28% 34% 50% 50% 49% 45% 41% 30% FY-16 FY-17 HY-18 FY-16 FY-17 HY-18 Casualty Property Specialties Specialties Property Casualty Specialties Property Casualty 1 Excluding premiums for ceded facultative reinsurance, captives and pools/co-reinsurance agreements for corporate business in EMEA and APAC. 2 Excluding premiums for ceded facultative reinsurance, captives and pools/co-reinsurance agreements. 3 Average of FY-16, FY-17 and HY-18, weighted by NEP. Based on a normalized level of catastrophes. © Zurich © December 5, 2018 Investor Day 10 STRATEGIC UPDATE Our Life business is growing and is cash generative, including in the more developing markets of APAC and Latin America LIFE BOP (USDm) APAC AND LATIN AMERICA CASH REMITTANCES (USDm) +6% 1,258 1,130 1,111 114 237 326 428 323 307 2261 63 33 592 582 606 -2 -42 -85 FY-15 FY-16 FY-17 FY-18e FY-15 FY-16 FY-17 FY-18e APAC & Latin America Continental Europe UK, Ireland & Zurich International North America 1 © Zurich © Impact of the change to the UK capital gains tax indexation relief. December 5, 2018 Investor Day 11 STRATEGIC UPDATE We have a leading market position in Life protection HY-18 LIFE NBV BY PRODUCT (%) PROTECTION MARKET SHARE (%)1 STRONG FRANCHISE AND FINANCIALS -1% 16% # of customers >40m 7% 20% ≥ 2 # of underwriters ~400 20% 78% - 10 Internal rate of return >15% (HY-18) Savings & Annuity 10% Unit-linked - 5 Corporate pensions and savings Protection 1 FY-17 or most recently available period. Based on GWP, new policies for Ireland. Australia and Ireland market shares refer to Individual Protection. Source: ABI, FECU, ICEA, Susep, SVV, Swiss Re. 2 Pro-forma of Zurich and One Path Life, deal not yet completed. © Zurich © December 5, 2018 Investor Day 12 STRATEGIC UPDATE Our very strong capital position and cash generation support an attractive dividend payout CAPITAL STRENGTH CASH COVER OF DIVIDEND (USDbn)2 10.3 Z-ECM, 9M-18 (%)1 134% 8.0 AA- S&P financial strength rating stable Cash remittance Dividends paid 1 Ratio as of September 30, 2018. Reflects midpoint estimate with an error margin of +/- 5%. 2 Cumulative FY-15 to FY-17, based on cash remitted and dividend paid in the year. © Zurich © December 5, 2018 Investor Day 13 STRATEGIC UPDATE Geographic refocus on countries with high potential WE HAVE ACHIEVED LEADING POSITIONS IN ATTRACTIVE MARKETS… …WHILE EXTRACTING CAPITAL FROM NON-STRATEGIC BUSINESSES Deals announced Change in ranking Crop n.m. #2 Middle East P&C Taiwan P&C Travel n.m.