Israel An attractive Market for Insurer

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1 Zurich Insurance Company Israel An attractive Market for Insurer Bruno Bräm, Technical Director Zurich Switzerland Zurich Switzerland November 22, 2012

2 Disclaimer and cautionary statement By attending this meeting where this presentation is made you agree to be bound by the following limitations. Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted profit improvement, return on equity targets, expense reductions, pricing conditions, dividend policy and underwriting claims improvements, as well as statements regarding our 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 Zurich Group p( (the Group ) p) 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 our key markets; (ii) the risk of the global economic downturn and a 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. Farmers is a trade name and may refer to Farmers Group, Inc. or the Farmers Exchanges, as the case may be. Farmers Group, Inc., a management and holding company, along with its subsidiaries, is wholly owned by Zurich Insurance Group Group. The Farmers Exchanges are three reciprocal insurers, Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange, including their subsidiaries and affiliates, owned by their policyholders, and managed by Farmers Group, Inc. and its subsidiaries. It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of the 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. rporate Switzerland 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.

3 Structure of Zurich Insurance Group Ltd Zurich Insurance Group Ltd Business gments Core Seg Global Life (GL) General Insurance (GI) Farmers Market facing GI Business North America Commercial Europe Global Corporate Middle East & Africa Asia-Pacific Latin America Switzerland rporate Switzerland Founded 1872 in Zürich Represented in 170 countries employees globally Our goal is to become the best global insurer measured by our customers, shareholders h and employees. Global Corporate in Europe Global Corporate Switzerland

4 Zurich Insurance Group Ltd Key facts and figures YE 2011 >60,000 >170 USD68.6billion Employees Countries GWP & fees CHF Proposed dividend 242% Solvency I ratio AA-/stable Financial strength rporate Switzerland Our goal is to become the best global insurer measured by our customers, shareholders and employees. Source: Zurich Q presentation

5 Among the Best Best Global Insurer Best Construction ti Insurance Provider Excellence Award for Customer Satisfaction European Business Insurer of the Year rporate Switzerland Reactions Magazine, September 2009 National Underwriter Risk Manager Choice, October 2009 StrategicRISK Magazine, May 2009 Greenwich Associates, 2010 Interbrand, 2010

6 Zurich Insurance Group Financial Results YE 2011 Robust operating performance Strong capital and solvency position Well diversified portfolio of businesses with continued focus on sustained profitability, operating efficiency i and effective risk management. Investments in growing markets. Strong gperformance by all core businesses in a challenging economic environment. Total GWP and fees of USD 68,6 billion. Solvency I 242% & Swiss Solvency Test 225% (HY) Zurich s investment portfolio benefits greatly from diversification and is balanced in terms of Financial risk. strength rating S & P AA-/stable Moody s Aa3/stable A.M. Best A+/stable Sources: Rating Agency websites rporate Switzerland Our financial strength enables us to be a long term partner for you with high capacity 6

7 Relative share price out performance made Zurich a Top 3 global insurer by market cap 1 January AIG Allianz AXA Generali Manulife Metlife Prudential Aviva Allstate 39 #10 Zurich 1 June # rporate Switzerland 0 AIG Allianz Zurich Metlife Prudential AXA Travellers Ace Chubb Generali Source: Bloomberg

8 rporate Switzerland Global servicing with local know how Zurich s global presence and Hub Structure

9 History of our business in Israel Continues growth and sustainable profit! rporate Switzerland Harel had 2 different responsible magers and Zurich 5 6 for this period.

10 Israel Insurance Market in brief porate Switzerland

11 Legal frame easy to obtain information porate Switzerland

12 Corruption Rank compared to region rporate Switzerland 7.2 Source: Transparency International Corruption Source Index

13 Outlook on the market porate Switzerland

14 Israel on IMD Rankings IMD World Competitiveness Yearbook 2012 The Institute for Management Development ranked Israel 19 th out of 59 countries for Additional Sources: IMD World Competitiveness Yearbook

15 Israel on IMD Rankings IMD World Competitiveness Yearbook 2012 Resilience of the economy Entrepreneurship Additional Sources: IMD World Competitiveness Yearbook

16 Israel on IMD Rankings IMD World Competitiveness Yearbook 2012 Israel s ranking compared to other IMD countries, Business Efficiency and Infrastructure Israel s ranking compared to other IMD countries, Economic Performance and Government Efficiency Additional Sources: IMD World Competitiveness Yearbook

17 Israel on WEF Rankings World Economic Forum Global Competitiveness Index The World Economic Forum ranked Israel 26 th out of 144 countries for in terms of competitiveness. The Forum also ranked Israel: 1 st in Quality of scientific research institutionstions 3 rd in Venture capital availability 4 th in PCT patents, applications/million pop. p 5 th in Strength of investor protection 5 th in Firm-level technology absorption 6 th in Capacity for innovation 6 th in Company spending on R&D And 8 th in University-industry industry collaboration in R&D Additional Sources: World Economic Forum Global Competitiveness Index

18 Expenditure on R&D As % of GDP, 2010 (latest available year) Israel is 1 st in the OECD in expenditure on R&D (research & development) as % of GDP, demonstrating innovation, development and creativity. Additional Sources: OECD 18

19 Finally. Thank you zurich.com rporate Switzerland