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1 News relese Swiss Re reports full-yer 2018 net income of USD 421 million, fter bsorbing USD 3.0 billion of lrge clims nd USD 599 million US GAAP ccounting chnge impct Group net income of USD 421 million despite high nturl ctstrophes nd mn-mde losses; 2018 ws the fourth-costliest yer for the insurnce industry ccording to the Swiss Re Institute Excluding the impct of the US GAAP ccounting chnge on recognition of equity investments, Group net income would hve been USD 894 million Property & Csulty Reinsurnce net income of USD 370 million; impcted by estimted lrge clims of USD 2.3 billion Life & Helth Reinsurnce solid net income of USD 761 million Corporte Solutions net loss of USD 405 million; estimted lrge clims burden of USD 0.7 billion Life Cpitl net income of USD 23 million; exceptionl gross csh genertion of USD 818 million The Group s return on equity (ROE) ws 1.4%; return on investments (ROI) ws 2.8%; running yield stble t 2.9% Jnury 2019 renewls premium volume up 19%; price qulity incresed by 1% Bord of Directors to propose higher dividend of CHF 5.60 per shre; Swiss Re to seek uthoristion for new public shre buybck progrmme Anette Bronder ppointed Group Chief Operting Officer nd member of the Group Executive Committee, effective 1 July 2019 Zurich, 21 Februry 2019 Swiss Re delivered full-yer net income of USD 421 million in The result includes estimted lrge clims of USD 3.0 billion, net of retrocession nd before tx, which significntly ffected both Property & Csulty Reinsurnce (P&C Re) nd Corporte Solutions ernings. In ddition, n estimted pre-tx USD 599 million impct due to chnge in US GAAP ccounting guidnce effective s of 1 Jnury 2018 ffected net income. Life & Helth Reinsurnce (L&H Re) reported solid result, driven by trnsctions, nd Life Cpitl generted exceptionl gross csh of USD 818 million. Bsed on the Group s very strong cpitl position nd supported by confidence in Swiss Re s long-term cpitl genertion, the Bord of Directors will propose to the Annul Generl Meeting (AGM) higher dividend of CHF 5.60 nd the uthoristion of new public shre buy-bck progrmme to be executed prior to the 2020 Medi Reltions, Zurich Telephone New York Telephone Singpore Telephone Investor Reltions, Zurich Telephone Swiss Re Ltd Mythenqui 50/60 CH-8022 Zurich Telephone Fx

2 AGM in ccordnce with Swiss Re s cpitl mngement priorities nd subject to obtining ll necessry legl nd regultory pprovls. Swiss Re Group Chief Executive Officer, Christin Mumenthler, sys: There ws no respite from lrge nt ct events nd mn-mde dissters in Our finncil strength enbled us to support our clients in these tough times. It ws the second chllenging yer in row for the industry nd us. Our P&C businesses were hevily impcted by the events. Corporte Solutions results were disppointing. But even in chllenging conditions, I m optimistic bout Swiss Re s future. In the Jnury renewls of our P&C Re business, we were ble to grow while keeping our running costs flt. We expect further price improvements in the renewls lter this yer, especilly in the loss-ffected mrkets dominted by nturl ctstrophes nd lrge mn-mde events Following reltively benign first hlf of the yer, the second hlf sw number of mjor nturl ctstrophes, notbly typhoons Jebi nd Trmi in Jpn, hurricnes Florence nd Michel, the Crr, Cmp nd Woolsey wildfires in the US, windstorm in Cnd nd hilstorm in Austrli nd severl mn-mde dissters. Despite the estimted combined clims of USD 2.2 billion from nturl ctstrophes nd USD 0.8 billion from lrge mn-mde losses, Swiss Re reported net income of USD 421 million, compred to USD 331 million in The net income lso reflected n estimted negtive pre-tx impct of USD 599 million due to the previously reported chnge in US GAAP on recognition nd mesurement of equity investments tht took effect on 1 Jnury Excluding the impct of the chnge in ccounting guidnce, net income would hve been USD 894 million. The Group s ROE for 2018 ws 1.4%, lrgely in line with lst yer. Excluding the impct of the chnge in US GAAP ccounting guidnce, the estimted Group ROE would hve been 2.9%. Ernings per shre (EPS) were USD 1.37 or CHF 1.34, compred to USD 1.03 or CHF 1.02 in the previous yer. Gross premiums written for the Group incresed by 4.7% to USD 36.4 billion, primrily driven by premium growth cross the Group s life nd helth businesses. Swiss Re s investment portfolio provided solid contribution in 2018, performing well with no mteril impirments nd running yield tht trended upwrd during the yer. Overll, there were no significnt chnges to Swiss Re s sset lloction during 2018 nd the Group remins flexible should there be chnge in the investment outlook or if ny mrket opportunities rise. The return on investments (ROI) for 2018 ws 2.8%, reflecting negtive impct from the chnge in US GAAP ccounting guidnce. Excluding the impct of the ccounting guidnce the ROI would hve been 3.3%. The result 2

3 ws primrily driven by net investment income, which contributed more significntly thn in prior yers, reflecting higher qulity of ernings. This compred to ROI of 3.9% in 2017, with the decrese lmost entirely ttributble to reduced contribution from equity securities. The Group s nonprticipting net investment income incresed to USD 4.1 billion in 2018 compred to USD 3.7 billion the prior yer. The Group s fixed income running yield ws stedy t 2.9%. Common shreholders equity decresed by 16.3% to USD 27.9 billion t the end of 2018 compred to the end of the previous yer. The decline minly reflected pyments to shreholders of USD 2.9 billion for the 2017 regulr dividend nd the shre buy-bck progrmmes s well s decrese in unrelised investment gins of USD 2.8 billion. Book vlue per common shre ws t USD or CHF t the end of 2018, compred to USD or CHF t the end of Swiss Re Group Chief Finncil Officer, John Dcey, sys: We fred well in n environment of chllenging insurnce nd investment risks. Our diversified business model helped to mitigte the ssocited losses. Most importnt, our cpitl position nd confidence in our long-term sustinble cpitl genertion remin very strong nd they support our ttrctive cpitl mngement ctions. Incresed dividend of CHF 5.60 per shre nd new shre buy-bck progrmme proposed The Group s cpitl position remins very strong with Group SST rtio comfortbly bove the 220% SST rtio trget level. Bsed on this, combined with the Group s sustined cpitl genertion, Swiss Re s Bord of Directors will propose reclibrtion of the dividend to CHF 5.60 per shre in 2018, representing 12% increse. The dividend will be pid fter shreholder pprovl t the AGM on 17 April Consistent with the estblished cpitl mngement priorities, Swiss Re plns to continue to return excess cpitl to shreholders. The Bord of Directors will propose to the AGM further public shre buy-bck progrmme, to be executed prior to the 2020 AGM subject to the necessry regultory pprovls. The first trnche of up to CHF 1.0 billion (purchse vlue) would commence t the discretion of the Bord shortly fter the 2019 AGM pprovl. The second trnche of up to CHF 1.0 billion (purchse vlue) would be lunched t the discretion of the Bord, nd will be conditionl on the 2019 development of the Group s excess cpitl position, for exmple signifcnt increse s result of the successful reduction of Swiss Re s holding in ReAssure to below 50%. 3

4 P&C Re results ffected by high nturl ctstrophe nd mn-mde losses; focus on innovtive solutions for its clients Estimted combined clims of USD 2.0 billion from 2018 s lrge nturl ctstrophes nd USD 0.3 billion from 2018 s lrge mn-mde losses led to P&C Re net income of USD 370 million. The ROE ws 3.7%. The combined rtio ws 104.0%, reflecting the impct from severl nturl ctstrophes nd mn-mde losses. P&C Re continued to experience positive prior-yer development in Amid continued chllenging mrket, Swiss Re mintined its disciplined underwriting pproch, ensuring it receives dequte prices for the protection it provides. As result, gross premiums written remined t USD 16.5 billion for the yer. During 2018, P&C Re continued to strengthen its differentition s fullservice solutions provider nd long-term prtner for its clients. In this, technology plyed n importnt role. One exmple of such client-oriented solutions is Swiss Re s prtnership with cr mnufcturers to develop vehicle-specific insurnce rting tht primry insurers worldwide cn use to determine insurnce premiums. The innovtive ssessment system tkes the integrtion of sfety-relevnt driver ssistnce systems into ccount. The new pproch will reduce the burden for insurers to ssess ll individul sfety fetures nd their effect on ccident frequency nd severity. L&H Re continues to deliver solid results nd profitble growth L&H Re delivered net income of USD 761 million in These results were minly driven by lrge trnsctions in Cnd nd New Zelnd nd solid performnce in Asi nd EMEA, prtly offset by unfvourble experience in the US. Investment results were solid but lower thn in the prior yer, reflecting lower relised gins nd mrk-to-mrket losses on equity securities. The ROE ws 11.1%. The fixed income running yield for the yer slightly incresed to 3.4%. Gross premiums written for 2018 incresed by 9.1% to USD 14.5 billion, reflecting growth cross ll mrkets nd driven by lrge trnsctions in Asi, positive impct of intr-group retrocession greements nd fvourble currency fluctutions. In L&H Re, Swiss Re continued to utilise technology to bring true vlue to its clients through its mrket-leding utomted underwriting solution, Mgnum. Aligned to Life Guide, the leding underwriting mnul, Mgnum enbles primry insurnce clients to utomte the ssessment nd decisionmking process nd provides them with useful dt insights. Currently operting in 26 countries nd 17 lnguges, Mgnum is processing more thn 12 million pplictions ech yer, with up to 80% of cses being instntly ccepted. 4

5 Corporte Solutions results impcted by nturl ctstrophe events nd exceptionlly high severity nd frequency of lrge mn-mde losses; strong growth in the Primry Led business Corporte Solutions reported net loss of USD 405 million in 2018, significntly impcted by lrge mn-mde losses nd nturl ctstrophe events leding to combined lrge clims burden of USD 0.7 billion. Fourth qurter losses included mjor stellite loss, lrge industril fire in Germny nd nturl ctstrophes, such s Hurricne Michel nd the Cmp nd Woolsey fires. The ROE for 2018 ws -19.4% with combined rtio of 117.5%. Gross premiums written 1 incresed by 13.6% to USD 4.6 billion, driven by growth in the Primry Led business, 2 which more thn offset the ctive pruning of the US Generl Libility portfolio. Rtes, s well s terms nd conditions modertely improved in 2018 but re still unstisfctory. After 3% price increse in 2018, the positive momentum is expected to continue in Corporte Solutions will continue to tke trgeted ctions to ddress pst performnce nd price deficiencies nd to further improve profitbility. During 2018, Corporte Solutions continued to mke progress on its longterm strtegy, with continued investments into its Primry Led cpbilities, extending its globl network coverge to over 120 countries. Life Cpitl genertes exceptionl gross csh genertion; open book growth in line with expecttions In 2018, Life Cpitl delivered nother exceptionl gross csh genertion of USD 818 million, driven by strong underlying emerging surplus, the proceeds from the sle of the initil 5% stke in ReAssure to MS&AD Insurnce Group Holdings Inc (MS&AD) nd the finlistion of the 2017 yer-end sttutory vlution. In December 2018, Swiss Re reched n greement with MS&AD for further investment of GBP 315 million in ReAssure. This trnsction closed on 20 Februry 2019 resulting in totl shreholding by MS&AD in ReAssure of 25%. The Business Unit generted net income of USD 23 million, despite the negtive impct of the UK investment mrket performnce on the unit-linked nd prticipting income, driven by net relised investment gins nd fvourble underwriting experience. The result ws lso impcted by the costs ssocited with the integrtion of the Legl & Generl portfolio 1 Including premiums for insurnce in derivtive form, net of internl fronting for the Reinsurnce Business Unit. 2 Primry Led trnsctions involve being the sole insurer or the leder of co-insurnce pnel providing coverge immeditely bove the client s deductible. 5

6 cquisition nd development costs relting to ongoing investments in Life Cpitl s open book businesses. The ROE decresed to 0.4%. Gross premiums written in 2018 incresed to USD 2.7 billion, driven by growth in the open book businesses combined with the impct of intr-group retrocession greements nd fvourble currency movements. Life Cpitl will continue its strtegy to grow its individul nd group businesses in Europe nd in the US. iptiq s B2B2C digitl insurnce offering is ttrctive to n incresing number of distribution prtners, with 19 hving been onborded to dte. Swiss Re continues to explore potentil initil public offering (IPO) of its UK closed book business ReAssure in As Swiss Re hs previously communicted nd demonstrted by the dditionl investment of MS&AD in ReAssure, securing third-prty cpitl to pursue further closed book trnsctions is n importnt prt of Swiss Re s strtegy. There cn be no ssurnce tht the explortion will result in n IPO of ReAssure, nd there is no certinty s to the timing of, or the detils relting to, ny such IPO, including its terms, structure or the size of Swiss Re s shreholding in ReAssure following n IPO 3. Further public sttements will be mde if nd when pproprite. Strong outcome of Jnury P&C Re renewls supported by lrge trnsctions Swiss Re renewed USD 10.0 billion compred to the USD 8.4 billion premium volume up for renewl on 1 Jnury This represents n increse of 19%, benefiting from lrge trnsctions nd growth in the core business. Price qulity incresed by 1% nd improvements were most pronounced in the loss-ffected property nd csulty lines. Swiss Re expects further price improvements in the forthcoming renewls lter this yer. Anette Bronder ppointed Group Chief Operting Officer nd member of the Group Executive Committee, effective 1 July 2019 Anette Bronder hs been ppointed Group Chief Operting Officer nd member of the Group Executive Committee, effective 1 July 2019, succeeding Thoms Welluer who will be retiring t the end of June. She hs more thn 20 yers of experience in opertions, consulting nd delivery services. She joins Swiss Re from T-Systems Interntionl, where she ws Member of the Mngement Bord, responsible for building up nd mnging the growth res Internet of Things, Public Cloud nd Cybersecurity. Prior to tht, she held vrious globl senior mngement roles t Vodfone nd Hewlett Pckrd, covering design nd delivery of digitl services. In the event tht Swiss Re Ltd, the ultimte holding compny of ReAssure, ceses to be the mjority shreholder of ReAssure, Swiss Re Ltd is expected to gurntee the bonds of Swiss Re ReAssure Limited (which is not expected to be prt of the ReAssure Group post-ipo). 6

7 Swiss Re is plesed to ppoint such strong cndidte to its Group Executive Committee, in prticulr strengthening its expertise in technology nd digitl trnsformtion. Swiss Re Chirmn, Wlter B. Kielholz, sys: Anette Bronder s strtegic technology knowledge nd strong trck record in opertions delivery mke her the idel cndidte to support Swiss Re in being t the forefront of technologicl chnges tht re tking plce in our industry - nd to not only led our Group Opertions function but to lso help us ccelerte the digitistion of our whole vlue chin. Swiss Re committed to continue leding ction on climte chnge nd sustinbility efforts In July 2018, Swiss Re estblished therml col policy to support trnsition to low-crbon economy. Under the col policy, Swiss Re will not provide re/insurnce to businesses with more thn 30% exposure to therml col cross ll lines of business. It is further step in refining Swiss Re s pproch to mnging crbon-relted sustinbility risks nd supporting the trnsition to low-crbon economy. Bck in 2016 Swiss Re stopped investing in compnies tht generte 30% or more of their revenues from therml col mining or tht use t lest 30% therml col power genertion. Swiss Re ws one of the first in the re/insurnce industry to pply ESG fctors consistently throughout the investment portfolio nd pply ESG benchmrks in equity nd credit mrkets. These inititives directly support Swiss Re s vision to mke the world more resilient. Group Chief Executive Officer, Christin Mumenthler, sys: At the current rte of ction, climte chnge will likely led to more nturl dissters, with implictions for every spect of society nd everyone not to mention the consequences tht could spill over to future genertions. It will tke whole of society pproch to limit globl wrming before time runs out. I m optimistic tht this will be possible, building on the current momentum. At Swiss Re, we mke it priority to continue leding ction on climte chnge nd sustinbility efforts, both on the sset nd libility side of our business, nd within nd beyond our industry. 7

8 Consolidted Group (Totl) 5 Gross premiums written FY 2017 FY 2018 FY Net income P&C Reinsurnce Return on equity Return on investments Running yield Common shreholders equity Gross premiums written Net income/loss Combined rtio L&H Reinsurnce Return on equity Gross premiums written Net income Running yield Return on equity Corporte Solutions Gross premiums written Net loss Combined rtio Life Cpitl Return on equity Gross premiums written Net income Gross csh genertion Return on equity Excludes for reference only, the impct of the recent chnge in US GAAP guidnce on recognition nd mesurement of finncil instruments, which ws effective for the Group s of 1 Jnury 2018 nd ws not retroctively pplied. 5 Also reflects Group items, including Principl Investments. 8

9 The foregoing nd the 2018 Finncil Review of the Swiss Re Group contin updtes on our business nd results nd preliminry unudited finncil informtion for The updtes on our business nd results will be included in our 2018 Annul Report, together with our udited finncil sttements for 2018 nd other disclosures we re required to include or historiclly hve included in n nnul report. The foregoing nd the 2018 Finncil Review of the Swiss Re Group re not intended to be substitute for the full 2018 Annul Report, which will be published on the Swiss Re website on 14 Mrch Video presenttion nd slides A video presenttion nd trnscript of Swiss Re s results for medi nd nlysts nd the ccompnying slides re vilble on Medi conference nd cll Swiss Re will hold medi conference with dil-in possibility this morning t 10:30 m (CET). If you pln to dil in, you re kindly requested to cll 10 minutes prior to the strt using the following numbers: Switzerlnd: +41 (0) Germny: +49 (0) UK: +44 (0) Frnce: +33 (0) US: +1 (1) Hong Kong: Investors nd nlysts conference cll Swiss Re will hold n investors nd nlysts conference cll this fternoon t 1.30 pm (CET) which will focus on Q&A. You re kindly requested to dil in 10 minutes prior to the strt using the following numbers: Switzerlnd: +41 (0) Germny: UK: +44 (0) Frnce: +33 (0) US: +1 (1) Swiss Re The Swiss Re Group is one of the world s leding providers of reinsurnce, insurnce nd other forms of insurnce-bsed risk trnsfer, working to mke the world more resilient. It nticiptes nd mnges risk from nturl ctstrophes to climte chnge, from geing popultions to cyber crime. The im of the Swiss Re Group is to enble society to thrive nd progress, creting new opportunities nd solutions for its clients. Hedqurtered in Zurich, Switzerlnd, where it ws founded in 1863, the Swiss Re Group opertes through network of round 80 offices globlly. It is orgnised into three Business Units, ech with distinct strtegy nd set of objectives contributing to the Group s overll mission. 9

10 For logos nd photogrphy of Swiss Re executives, directors or offices, click here. For medi b-roll plese send n emil to medi_reltions@swissre.com Cutionry note on forwrd-looking sttements Certin sttements nd illustrtions contined herein re forwrd-looking. These sttements (including s to plns, objectives, trgets nd trends) nd illustrtions provide current expecttions of future events bsed on certin ssumptions nd include ny sttement tht does not directly relte to historicl fct or current fct. Forwrd-looking sttements typiclly re identified by words or phrses such s nticipte, ssume, believe, continue, estimte, expect, foresee, intend, my increse, my fluctute nd similr expressions, or by future or conditionl verbs such s will, should, would nd could. These forwrd-looking sttements involve known nd unknown risks, uncertinties nd other fctors, which my cuse the Group s ctul results of opertions, finncil condition, solvency rtios, cpitl or liquidity positions or prospects to be mterilly different from ny future results of opertions, finncil condition, solvency rtios, cpitl or liquidity positions or prospects expressed or implied by such sttements or cuse Swiss Re to not chieve its published trgets. Such fctors include, mong others: the frequency, severity nd development of insured clim events, prticulrly nturl ctstrophes, mn-mde dissters, pndemics, cts of terrorism nd cts of wr; mortlity, morbidity nd longevity experience; the cycliclity of the insurnce nd reinsurnce sectors; instbility ffecting the globl finncil system; deteriortion in globl economic conditions; the effect of mrket conditions, including the globl equity nd credit mrkets, nd the level nd voltility of equity prices, interest rtes, credit spreds, currency vlues nd other mrket indices, on the Group s investment ssets; chnges in the Group s investment result s result of chnges in the Group s investment policy or the chnged composition of the Group s investment ssets, nd the impct of the timing of ny such chnges reltive to chnges in mrket conditions; the Group s bility to mintin sufficient liquidity nd ccess to cpitl mrkets, including sufficient liquidity to cover potentil recpture of reinsurnce greements, erly clls of debt or debt-like rrngements nd collterl clls due to ctul or perceived deteriortion of the Group s finncil strength or otherwise; ny inbility to relise mounts on sles of securities on the Group s blnce sheet equivlent to their vlues recorded for ccounting purposes; chnges in legisltion nd regultion, nd the interprettions thereof by regultors nd courts, ffecting us or the Group s ceding compnies, including s result of shifts wy from multilterl pproches to regultion of globl opertions; the outcome of tx udits, the bility to relise tx loss crryforwrds, the bility to relise deferred tx ssets (including by reson of the mix of ernings in jurisdiction or deemed chnge of control), which could negtively impct future ernings, nd the overll impct of chnges in tx regimes on business models; 10

11 filure of the Group s hedging rrngements to be effective; the lowering or loss of one of the finncil strength or other rtings of one or more Swiss Re compnies, nd developments dversely ffecting the Group s bility to chieve improved rtings; uncertinties in estimting reserves; policy renewl nd lpse rtes; uncertinties in estimting future clims for purposes of finncil reporting, prticulrly with respect to lrge nturl ctstrophes nd certin lrge mn-mde losses, s significnt uncertinties my be involved in estimting losses from such events nd preliminry estimtes my be subject to chnge s new informtion becomes vilble; extrordinry events ffecting the Group s clients nd other counterprties, such s bnkruptcies, liquidtions nd other credit-relted events; legl ctions or regultory investigtions or ctions, including those in respect of industry requirements or business conduct rules of generl pplicbility; chnges in ccounting stndrds; significnt investments, cquisitions or dispositions, nd ny delys, unexpected costs, lower-thn-expected benefits, or other issues experienced in connection with ny such trnsctions; chnging levels of competition, including from new entrnts into the mrket; nd opertionl fctors, including the efficcy of risk mngement nd other internl procedures in mnging the foregoing risks nd the bility to mnge cyber security risks. These fctors re not exhustive. The Group opertes in continully chnging environment nd new risks emerge continully. Reders re cutioned not to plce undue relince on forwrd-looking sttements. Swiss Re undertkes no obligtion to publicly revise or updte ny forwrd-looking sttements, whether s result of new informtion, future events or otherwise. This communiction is not intended to be recommendtion to buy, sell or hold securities nd does not constitute n offer for the sle of, or the solicittion of n offer to buy, securities in ny jurisdiction, including the United Sttes. Any such offer will only be mde by mens of prospectus or offering memorndum, nd in complince with pplicble securities lws. 11