Key achievements. Michel M. Liès, Group CEO

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2 Today s agenda Key achievements Financial performance Business and strategy outlook Michel M. Liès, Group CEO George Quinn, Group CFO Michel M. Liès, Group CEO 2

3 Key achievements Michel M. Liès, Group CEO 3

4 Priorities for the Group CEO Achievements 203 Group strategy Continued delivery on our financial targets Productivity emphasis to control management expenses Organic and transactional expansion into High Growth Markets Address low returns in L&H L&H Re: USD bn capital extraction; profitable new business; management actions to improve returns to 0-2% ROE by 205 Admin Re : strong cash generation and dividends to the Group Capital and asset management Re-balancing assets to mid-term plan completed; de-leveraging ahead of plan; Group SST ratio 229% ; S&P excess capital over AA level estimated at > USD 0bn per end 203 Growing regular dividend 2 and business, plus special dividend 2 Outperform our peers in P&C P&C Re: successful renewals, lower but attractive economic rate levels, complemented by net premium growth from expiry of QS Corporate Solutions: on track to achieve profitable growth targets SST 2/203, as filed with FINMA at the end of October 203, consolidated Group view based on a projection for mid-203 to mid-204. Impact of March 203 USD 750m and October 203 CHF 75m subordinated contingent write-off securities not reflected in SST 2/203 2 Proposed dividends to be paid in the form of Swiss withholding tax exempt distributions from legal reserves from capital contributions; such reserves totalling CHF 5.2bn as at 3 December 203 4

5 Capital management Growing regular dividends and profitable business growth remain our priorities Strong capital position allows Swiss Re to continue to grow the regular dividend and take advantage of business growth opportunities Therefore the BoD will propose to the AGM A dividend of CHF 3.85 and A special dividend of CHF 4.5 per share Swiss Re's dividend policy Highest priority is growing our regular dividend with long-term earnings; at a minimum we aim to maintain the regular dividend Business growth where it meets our profitability requirements Redeploying additional USD 3bn of excess ROE by 205 Proposed dividends to be paid in the form of Swiss withholding tax exempt distributions from legal reserves from capital contributions; such reserves totalling CHF 5.2bn as at 3 December 203 5

6 Group financial targets On track ROE 700 bps above risk free average over 5 years (20-205) EPS growth 0% average annual growth rate, adjusted for special dividends in % in USD % +0% E avg E = reported ROE = 700 bps above US Gov 5 years E 205E = reported EPS = avg. annual growth (base: 200), adjusted for special dividends Delivering the financial targets remains Swiss Re's top priority EPS growth rate has been adjusted from 0% to 5% for 204 to account for the proposed CHF 4.5 per share special dividend (approx USD.6bn) expected to be distributed in April 204. Methodology is in line with the approach taken for the special dividend of CHF 4.00 per share paid in April Assumes constant foreign exchange rate 3 Excl. CPCI 6

7 Financial performance George Quinn, Group CFO 7

8 203 Financial highlights Excellent Group performance Group net income USD 4.4bn Return on equity 3.7%, earnings per share USD 2.97 (CHF 2.04) Group combined ratio 85.3% Return on investments 3.6% Reinsurance net income USD 3.6bn Strong underwriting performance in P&C continues L&H impacted by reserve strengthening for Australian group disability business Corporate Solutions with profitable growth, net premiums earned +27.9% Admin Re gross cash generation USD 52m, net income USD 423m Book value per common share USD (CHF 82.76) S&P excess capital over AA level estimated at > USD 0bn per end 203 Proposed regular dividend CHF 3.85 Proposed additional special dividend CHF 4.5 Proposed dividends distribute approx USD 3.bn of capital to shareholders Distributions to be made in the form of Swiss withholding tax exempt distributions out of legal reserves from capital contributions 8

9 Key figures USD m, unless otherwise stated P&C Re L&H Re Corporate Solutions Admin Re Group items Total FY 203 Total FY 202 Total Q4 203 Total Q4 202 Premiums earned and fee income Net income/loss Return on investments 2.8% 4.% 2.4% 5.%.7% 3.6% 4.0% 3.8% 3.0% Return on equity 26.4% 5.4% 9.6% 6.8% 2.2% 3.7% 3.4% 5.4% 9.7% Combined ratio 83.3% - 95.% % 83.% 86.6% 90.5% Operating margin - 5.2% % 8.6% -.% 8.2% Earnings per share (USD) (CHF) P&C Re L&H Re Corporate Solutions Admin Re Group items Common shareholders' equity of which unrealised gains Book value per common share (USD) (CHF) Excluding contingent capital instruments (USD 02m, of which USD 352m in P&C Re, USD 750m in L&H Re); basis for ROE and BVPS calculations 9

10 P&C Reinsurance Continued strong underwriting performance Net premiums earned USD m, % +7.9% Combined ratio % Net income, ROE USD m, % +2.6%pts +0.% % 83.3% ROE: 26.4% FY 202 FY 203 Increase in premiums earned mainly driven by expiry of a quota share retrocession in 202 and new business written in Americas Gross premiums written increased by 7% FY 202 FY 203 Net impact from large nat cats in 203 was 7.2%pts, 2.9%pts below expected 203 benefited by 7.4%pts from prior year net reserve releases; 202: 8.%pts Adjusting for expected nat cat and prior year development CR is 93.6%, reflecting large manmade and attritional losses Q4 203 combined ratio 84.0% ; Q4 202: 88.2% FY 202 FY 203 Net investment result down USD 0.4bn, mainly due to lower gains on private equity investments and the shift of Principal Investments to the Group Return on investments 2.8%; 202: 3.2% Exceptionally low tax expense in 203 Q4 203:.7%pts impact from lower than expected nat cats and 8.%pts from reserve releases. As adjusted combined ratio of 93.8% 0

11 L&H Reinsurance Strong new business growth, reserve strengthening in Australia Operating revenues USD m Operating margin % +9.3% -3.4%pts Net income, ROE USD m, % -5.8% FY 202 FY 203 Premiums earned and fee income increased by 9.9% Growth driven by pre-2004 US YRT business recaptured in Q 203 and new Health business in Europe and Asia, including large transactions Increase in running yield to 3.5% as a result of asset re-balancing; 202: 3.2% 8.6% 5.2% FY 202 FY 203 Reserve strengthening in Australian group disability business of USD 369m, of which USD 70m in Q4 203 Adverse performance of the YRT business recaptured in Q 203 USD 6m Higher expenses of USD 3m reflecting growth initiatives Operating margin excl. VA/GMDB/B36 is 4.8% ROE: 5.4% FY 202 FY 203 Net realised gains lower at USD 386m; 202: USD 709m Return on investments 4.%; 202: 4.7% VA/GMDB/B36 net gain of USD 47m; 202: USD 83m loss Exceptionally low tax expense in 203 Operating margin is calculated as operating income divided by total operating revenues. See appendix slide 36 for calculation details

12 Corporate Solutions Continued profitable growth Net premiums earned USD m, % Combined ratio % Net income, ROE USD m, % +27.9% -.%pts +42.3% % 95.% ROE: 9.6% FY 202 FY 203 Gross premiums written net of intra-group transactions increased to USD 3.6bn, corresponding to a growth rate of 4.5%; underlying growth rate significantly higher due to nonrecurring effects in the prior year Since the creation of Corporate Solutions in 200, gross premiums written have increased by a CAGR of 5.3% FY 202 FY 203 Nat cat impact 4.4%pts,.8%pts below expected Favourable reserve development of USD 62m, benefiting CR by 2.%pts Adjusting for expected nat cat and reserve development CR is 99.0% CR on basis of estimated TFC to Swiss Re Group 88.3% FY 202 FY 203 Insurance derivative accounted weather and nat cat business USD 9m; 202: USD 55m Return on investments 2.4%; 202: 3.2% ROE on basis of estimated TFC to Swiss Re Group 6.0% Estimated total financial contribution (TFC) of Corporate Solutions business written within Swiss Re Group, as shown at Investors' Day 202, incl. development of historical loss reserves remaining in Reinsurance for CR and ROE, as well as related investment income and additional USD 0.5bn shareholders' equity for ROE 2

13 Admin Re Strong gross cash generation, ROI and earnings Gross cash generation USD m, % -56.4% 96 Return on investments % +0.2%pts Net income, ROE USD m, % +3.% FY 202 FY 203 USD 357m dividends paid to the Group in GCG of USD 52m includes USD 20m from business transfer to L&H Re Prior year included USD 804m cash proceeds and release of capital related to sale of Admin Re US 4.9% 5.% FY 202 FY 203 Return on investments of 5.% primarily driven by net investment income from corporate and government bonds and realised gains from the sale of government bonds Net realised gains of USD 283m; 202: USD 270m Running yield on fixed income portfolio 4.2%; 202: 4.3% ROE: 6.8% FY 202 FY 203 Net income supported by net realised gains from investments of USD 283m and favorable tax impacts of USD 99m, partially offset by sale adjustments of USD -86m on Admin Re US 202 include USD 399m loss on sale of Admin Re US Gross cash generation (GCG) is the change in excess capital over and above the target capital position 3

14 Group investment result Strong performance Avg. invested assets USD bn, basis for ROI calculation -5.9% Return on investments % -0.4%pts Total return % -5.5%pts % FY 202 FY 203 Decrease mainly driven by the sale of Admin Re US and a reduction of unrealised gains Re-balancing complete, net purchases of corporate bonds USD 9.bn and equities USD 2.5bn in 203 Short duration position in anticipation of higher interest rates; DV0 of USD -5.6m 4.0% 3.6% FY 202 FY 203 Group ROI of 3.6% for 203, driven by net investment income on fixed income and realised gains of USD.bn primarily from re-balancing the investment portfolio ROI excluding fx of 3.6%; 202: 4.2% Impairments of USD 4m; 202: USD 62m -0.% FY 202 FY 203 Total return impacted by m-t-m losses from higher interest rates, partially offset by credit spread tightening and a rise in equity markets Group fixed income running yield at 3.2% (Q4 203: 3.3%); 202: 3.2% 202 includes cash management activity which is excluded from ROI scope in 203 4

15 Investment mix Balanced Group asset allocation Re-balancing complete Corporate bonds close to upper end of mid-term plan Net sales of government bonds USD 4.2bn in 203 in part driven by the short duration position Equities and alternatives slightly above mid-term plan range due to strong market performance and growth in Principal Investments portfolio Principal Investments included Portfolio part of Equities and alternatives actuals and included in mid-term plan ranges 00% 90% 80% 70% 60% 50% 40% 30% 20% 0% 0% % 0-5% % 5-0% 28% 20-30% 5% 5-0% 32% 35-55% 23% 0-20% End FY 203 Mid-term plan Other (incl. derivatives) Equities and alternatives (incl. Principal Investments) Corporate bonds (incl. loans, municipals and credit ETFs) Securitised products Government bonds (incl. agency) Cash, cash equivalents and short-term investments 5

16 Common shareholders' equity 203 Increase from strong net income more than offset by dividends and reduction in unrealised gains USD m Gov bonds -3.6 Corp bonds -.4 Sec products -0. Equities and others.2 Tax. Total Common shareholders' equity 3 Dec 202 Net income attributable to common shareholders Dividends Other Foreign currency translation adjustments Net change in unrealised gains/losses Common shareholders' equity 3 Dec 203 6

17 Business and strategy outlook Michel M. Liès, Group CEO 7

18 P&C Re: January 204 treaty renewals Overall economic price quality remains attractive Risk adjusted price quality.5% % Up for renewal Jan % 07% Estimated outcome Active cycle management, reflects anticipated market trends for 204 Volume 2 down 6% to USD 9.2bn Decrease in risk adjusted price quality driven by rate and exposure changes, claims inflation, partially offset by higher interest rates Property Cat rates softened in most markets, though remain attractive Price levels increased in some Motor markets, otherwise flat or slightly softening; identified and wrote attractive new Casualty business in the US Despite larger declines in price adequacy, non-proportional business remains significantly more attractive than proportional business 34% of P&C Re's 203 premium earned was non-proportional business Swiss Re's risk adjusted price quality provides an economic view on price quality, ie includes rate and exposure changes, claims inflation and interest rates 2 Gross premium volume, treaty portfolio; estimated outcome vs up for renewal Jan 204 8

19 P&C Underwriting Strong and stable underwriting track record 30% 5% 20% 0% 00% 90% 80% 70% % % 3% 2% % 60% 0% 5-year US Treasury risk-free rates (RHS) Group combined ratio (LHS) Group combined ratio, 5y moving avg (LHS) 2 5 year average combined ratio trend demonstrates Swiss Re's commitment to active cycle management and disciplined underwriting 204 combined ratio estimated at 95% for Swiss Re Group, P&C Reinsurance and Corporate Solutions Assuming an average large loss burden and no material impact from prior year development 2 Historical combined ratios as published; 2009 and later based on new org. structure and calculation method, as initially disclosed at Investors' Day 202 9

20 Corporate Solutions Strategy implementation on track Achievements in 203 Profitability Quality of portfolio remains at consistently high level Notable improvement of claims ratio Growth Strengthening of local teams in existing offices Expansion of distribution channels by obtaining Singapore direct insurance license Efficiency New US IT platform rolled out, migration to be completed in 204 Outlook 204 estimated combined ratio 95%, driven by continued high quality of the portfolio and declining expense ratio, as premium generated from growth initiatives begins to outpace the investment Net reserves and assets building with business growth, supporting higher total investment return and ROE, as well as return of capital to the Group 205: execution of strategy to result in gross premium written net of intra-group transactions of USD 4-5bn at 0-5% 2 ROE in USD bn 3 year CAGR: 5.3% +38.% +4.5% +6.% Assuming an average large loss burden and no material impact from prior year development 2 In years with "normal" nat cat experience and current modest investment yields E 20

21 Admin Re Increased GCG and dividend forecasts Strategy Selective growth Build and enhance Admin Re franchise in the UK market All transactions must meet Group investment criteria and hurdle rates Value extraction Actively manage portfolios of assets and blocks of businesses Consistently create value through capital and tax synergies Operational excellence Keep improving the unique and scalable operating platform Focus on transformation and management actions (business efficiency, reduce cost) Outlook E: GCG forecast raised by USD 50m, dividend by USD 200m Expect low-to-mid single digit returns on equity in the near term Improved optionality for mid term, including possibility for Third party capital to enter Use of leverage for new business funding Gross cash generation USD m GCG generated Revised base case E USD 300m annual GCG expected on average for E Management actions E ~2 550 ~2 650 Aspirational E (incl. mgt actions) Dividends USD m Expected in 204-6E Already paid in Future GCG will not be linear and may be negative in particular quarters, eg due to new transactions; GCG targets will be updated on an annual basis 2

22 Principal Investments Clear mandate and investment strategy HGM direct investments in Oct: total commitment of USD 425m to FWD 8 Nov: 4.9% stake in SulAmérica 20 Nov: investment of USD 493m for a 4.9% stake in New China Life Outlook Mandate: generate long-term economic value via investments in insurance-related businesses by leveraging our core competencies: The provision of capital to the insurance industry A deep understanding of the insurance value chain and insurance risk universe Investments now better aligned with mandate = insurancerelated and more High Growth Markets Focus on longterm value creation Investments by sector Total end FY 203: USD 2.3bn 2% 3% 26% 40% HGM Insurance Developed Market Insurance Financial Services Funds Non Insurance Focus of investments: insurance sector High Growth Markets Special situations (restructuring, acquisition, privatisation or other dislocation situations) Critical KPI for investments is underlying book value growth through the cycle Subject to mid-term plan asset allocation Portfolio to build in line with growth of Group Additional investments funded significantly from redeploying portfolio divestments 22

23 Priorities for the Group CEO in 204 Focus on strategy execution Group strategy Maintain industry leading underwriting track record Productivity emphasis to control management expenses Continue to re-direct capital and talent to High Growth Markets Outperform our peers in P&C P&C Re: strict focus on risk selection and portfolio management; differentiate through knowledge, expertise and services Corporate Solutions: deliver on our commitment of continuing profitable growth, with particular focus on High Growth Markets Perform in L&H L&H Re: deliver on fixing pre-2004 US issues, grow new business, demonstrate progress towards 205 ROE target of 0-2% Admin Re : continue operational transformation, selective UK growth to enhance UK franchise Performance and capital management Keep growing regular dividends and profitable business Redeploy additional USD 3bn of excess ROE by financial targets remain our top priority 23

24 Appendix 24

25 Appendix Business segment results Q4 203 Income statement Business segment results 203 Income statement Business segment results 203 Balance sheet Shareholders' equity and ROE Q4 203 Shareholders' equity and ROE 203 Expected nat cat premiums and claims P&C Reinsurance and Corporate Solutions Nat cat and large man-made claims P&C Reinsurance Underwriting performance P&C Reinsurance: 204 January renewals Portfolio weighting by line of business and region L&H Reinsurance Income break-down L&H Reinsurance operating margin calculation basis Corporate Solutions Underwriting performance Net investment income Net realised gains/losses Net unrealised gains/losses Return on investments basis Return on investments (ROI) Overall investment portfolio Government bonds Corporate bonds Securitised products Equities and Alternative Investments Sensitivities Common shareholders' equity Q4 203 Number of shares Premiums by country Exchange rates Corporate calendar & contacts Cautionary note on forward-looking statements 25

26 Business segment results Q4 203 Income statement Reinsurance P&C Re L&H Re Corporate Solutions Admin Re Group items Consolidation Total Q4 203 Total Q4 202 USD m Revenues Premiums earned Fee income from policyholders Net investment income/loss non participating Net realised investment gains/losses non participating Net investment result unit-linked and with-profit Other revenues Total revenues Expenses Claims and claim adjustment expenses Life and health benefits Return credited to policyholders Acquisition costs Other expenses Interest expenses Total expenses Income/loss before income tax expenses Income tax expense/benefit Net income/loss before attribution of noncontrolling interests Income attributable to non-controlling interests Net income/loss after attribution of non-controlling interests Interest on contingent capital instruments Net income/loss attributable to common shareholders

27 Business segment results 203 Income statement Reinsurance P&C Re L&H Re Corporate Solutions Admin Re Group items Consolidation Total FY 203 Total FY 202 USD m Revenues Premiums earned Fee income from policyholders Net investment income/loss non participating Net realised investment gains/losses non participating Net investment result unit-linked and with-profit Other revenues Total revenues Expenses Claims and claim adjustment expenses Life and health benefits Return credited to policyholders Acquisition costs Other expenses Interest expenses Total expenses Income/loss before income tax expenses Income tax expense/benefit Net income/loss before attribution of noncontrolling interests Income attributable to non-controlling interests Net income/loss after attribution of non-controlling interests Interest on contingent capital instruments Net income/loss attributable to common shareholders

28 Business segment results 203 Balance sheet 3 December 203, USD m Reinsurance P&C Re L&H Re Corporate Solutions Admin Re Group items Consolidation End FY 203 End FY 202 Assets Fixed income securities Equity securities Other investments Short-term investments Investments for unit-linked and with-profit business Cash and cash equivalents Deferred acquisition costs Acquired present value of future profits Reinsurance recoverable Other reinsurance assets Goodwill Other Total assets Liabilities Unpaid claims and claim adjustments expenses Liabilities for life and health policy benefits Policyholder account balances Other reinsurance liabilities Short-term debt Long-term debt Other Total liabilities Shareholders' equity thereof contingent capital instruments Non-controlling interests Total equity Total liabilities and equity

29 Shareholders' equity and ROE Q4 203 Reinsurance P&C Re L&H Re Corporate Admin Group Total USD m Solutions Re items Q4 203 Common shareholders' equity at 30 September Net income attributable to common shareholders Dividends Other (incl. fx) Net change in unrealised gains/losses Common shareholders' equity at 3 December Contingent capital instruments Shareholders' equity at 3 December Non-controlling interests Total equity at 3 December ROE calculation USD m Reinsurance P&C Re L&H Re Corporate Solutions Admin Re Group items Total Q4 203 Net income/loss attributable to common shareholders Opening common shareholders' equity Average common shareholders' equity ROE, annualised % 32.8% -.4% 7.6% 5.7% 6.5% 5.4% Total is after consolidation 2 Based on published net income attributable to common shareholders 29

30 Shareholders' equity and ROE 203 Reinsurance P&C Re L&H Re Corporate Admin Group Total USD m Solutions Re items FY 203 Common shareholders' equity at 3 December Net income attributable to common shareholders Dividends Dividend-in-kind (shift of Principal Investments) Other (incl. fx) Net change in unrealised gains/losses Common shareholders' equity at 3 December Contingent capital instruments Shareholders' equity at 3 December Non-controlling interests Total equity at 3 December ROE calculation USD m Reinsurance P&C Re L&H Re Corporate Solutions Admin Re Group items Total FY 203 Total FY 202 Net income/loss attributable to common shareholders Opening common shareholders' equity Average common shareholders' equity ROE 2 9.2% 26.4% 5.4% 9.6% 6.8% 2.2% 3.7% 3.4% Total is after consolidation 2 Based on published net income attributable to common shareholders 30

31 Expected nat cat premiums and claims Nat cat premiums and claims USD m FY 203 P&C Re Corporate Solutions Expected net premiums Expected net claims Actual net nat cat claims USD m Est. Corporate FY 204 P&C Re Solutions Expected net premiums Expected net claims Only events exceeding USD 20m included, net premiums after acquisition costs 3

32 P&C Reinsurance and Corporate Solutions Nat cat and large man-made claims Nat cat FY 203 Total est. net claims Q4 203 net change P&C Re Corporate Solutions Hurricane Sandy October Floods in Central Europe May/June Floods in Calgary June Flash floods Toronto July Hail storms, Germany September Hurricanes Ingrid & Manuel, Mexico September 76 - Typhoon Fitow October Winterstorm Christian, Europe October Typhoon Haiyan November Winterstorm Xaver, Europe December Man-made Satellite loss February Landslide loss, Utah April Fertilizer plant explosion, Texas April Fire at petrochemical plant, USA June Marine loss MOL Comfort, Japan July Fire at sugar factory, Saudi Arabia July European casualty loss July Fire at chip plant, China September Water damage at power station, Russia September Only events exceeding USD 20m included, net premiums after acquisition costs 32

33 P&C Reinsurance Underwriting performance Combined ratios in %, premiums and underwriting result in USD m FY 202 FY 203 Main drivers of change Property 74.2% 7.8% Lower than expected nat cat losses, prior accident year reserve releases Casualty 94.0% 0.9% Liability 54.6% 90.8% Large net reserve releases in 202 Net premiums earned Underwriting CR result Q % % 89.7% Motor Accident (A&H) Specialty Marine Engineering Credit 08.5% 3.7% 68.0% 84.7% 69.8% 70.9% 09.9% 94.5% 74.5% 87.% 68.3% 89.7% Hailstorms in Germany and less prior year reserve releases Prior accident year reserve releases Various larger claims and lower prior year reserve releases Overall improved result partially offset by large man-made loss in Russia Less favourable claims experience % 23.7% 89.3% 83.2% 98.9% 96.9% Other Specialty (Aviation, etc) 3.6% 36.7% Benign claims experience in both periods % Total 80.7% 83.3% % 33

34 P&C Reinsurance: 204 January renewals Portfolio weighting by line of business and region Gross premium volume, treaty portfolio Up for renewal Jan 204 Estimated outcome By line of business 7% 36% 22% 25% 8% 5% 23% 44% Casualty Nat Cat Property Specialty By region 26% 26% 48% 28% 24% 48% EMEA Americas Asia Continue to allocate capital to lines with the most favourable risk adjusted returns Casualty book is growing in all three regions Excluding nat cat 34

35 L&H Reinsurance Income break-down USD m Net income of which approximately: Q 202 Q2 202 Q3 202 Q4 202 FY 202 Q 203 Q2 203 Q3 203 Q4 203 FY Net realised gains VA, pre-2000 GMDB, impact from B Mortality and morbidity compared to expectations Changes in models and assumptions Pre-2004 Post Level Term (as presented at Investors' Day 3 ) Yearly Renewable Term business (recaptured in Q 203) VA/GMDB/B36: Full year 203 is favourable mainly due to B36 gains from increase in risk free rates, partially offset by VA which had negative results from updated mortality assumptions Mortality and morbidity experience in 203 was unfavourable due to the reserve strengthening in Australian group disability business; excluding this, mortality and morbidity experience was favourable 203 PLT impact of USD -49m lower than in 202 (USD -2m); 203 YRT impact USD -6m Net realised gains excludes realised gains related to reinsurance transactions (VA, pre-2000 GMDB, B36, etc) 2 Excluding impacts from pre-2004 US business. Includes Australian group disability business strengthening of Q2 203: USD -82m, Q3 203: USD -2m; Q4 203: USD 70m. Full year 203 fx adjusted: USD 369m 3 Investors' Day 203, includes underwriting income, investment income and expenses 35

36 L&H Reinsurance operating margin Calculation basis Total FY 203 Total FY 202 USD m Revenues Premiums earned Fee income from policyholders Net investment income/loss non participating Net realised gains/losses insurance related derivatives Other revenues - Total operating revenues Expenses Life and health benefits Return credited to policyholders, net of investment return for unit linked and with profit products Acquisition costs Other expenses Total operating expenses Operating income Operating margin 5.2% 8.6% Total FY 203 Total FY 202 USD m Operating revenues reconciliation Total segment revenues Less net investment result unit-linked and with-profits Less net realised gains/losses nonparticipating and excluding insurancerelated derivatives Total operating revenues In % 3 FY 200 FY 20 Q 202 Q2 202 Q3 202 Q4 202 FY 202 Q 203 Q2 203 Q3 203 Q4 203 FY 203 Operating margin As per the Life and Health Reinsurance business segment note to the financial statements 2 The sum of two income statement line items: "Net investment result unit-linked and with-profits" and "Return credited to policyholders" 3 Operating margin for FY 200 and FY 20 are proforma as these periods pre-date the current segment structure 36

37 Corporate Solutions Underwriting performance Combined ratios in %, premiums and underwriting result in USD m FY 202 FY 203 Main drivers of change Property 00.7% 89.3% 203 benign nat cat experience; 202 negatively impacted by Hurricane Sandy Casualty 9.7% 08.4% 203 impacted by large European casualty loss and unfavourable prior year development Specialty Credit Other Specialty 96.2% 82.8% 02.0% 88.8% 74.5% 95.3% Continued strong performance in 203 Favourable prior year development in 203; both periods were impacted by satellite losses Net premiums earned Underwriting CR result Q % % % 80.3% 24.4% Total 96.2% 95.% % 37

38 Net investment income USD m P&C Re L&H Re Corporate Solutions Admin Re Income from assets backing with-profit and unit-linked business are credited to policyholders' accounts and are excluded from investment income available to shareholders Group items Consolidation Total FY 203 Total FY 202 Total Q4 203 Investment related income Government bonds Corporate bonds Securitised products Short-term investments Equities Real estate, PE, HF Investment expenses Other Insurance related income Policy loans Deposit interest and fee income Other Non-participating investment income Income from with-profit business Income from unit-linked business Total net investment income fixed income running yield of 3.2%, which is consistent with 202 of 3.2% as the negative impact from the sale of higher yielding assets in Admin Re US in 202 was offset by the impact of m-t-m losses and re-balancing activities in 203 Decrease in government bond income primarily due to net sales related to the re-balancing of the investment portfolio and the establishment of a short duration position as well as the sale of Admin Re US business in 202 Increase in income from equities primarily due to net purchases related to re-balancing of the investment portfolio Decrease in real estate, PE, HF mainly due to private equity minority interest income of USD 33m in 202 related to management of Private Equity Partners, which was sold in Q

39 Net realised gains/losses Corporate Solutions Admin Re Group items Consolidation Total FY 203 Total FY 202 Total Q4 203 USD m P&C Re L&H Re Investment related Government bonds Corporate bonds Securitised products Equities Real Estate, PE, HF Foreign exchange remeasurement and designated trading portfolios Other asset classes Insurance related Non-participating realised gains and losses Net gains/losses from with-profit business Net gains/losses from unit-linked business Total net realised gains and losses Investment related net realised gains primarily driven by re-balancing of the investment portfolio, active management of the listed equity portfolio and the sale of real estate Lower net realised gains from the sale of government bonds as compared to 202 Other asset classes includes gains related to re-purchase of external debt and m-t-m gains on hedge positions Unit-linked business related net realised gains primarily from m-t-m gains on equities as markets increased Insurance related net realised losses include write-down of own-used property in P&C Re; 202 includes the sale of Admin Re US The designated trading portfolios are foreign currency denominated trading fixed income securities which back certain foreign currency denominated liabilities 2 Income from assets backing with-profit and unit-linked business are credited to policyholders' accounts and are excluded from investment income available to shareholders 39

40 Net unrealised gains/losses Corporate Solutions Admin Re Group items End FY 203 End FY 202 USD m P&C Re L&H Re Government bonds Corporate bonds Securitised products Equities Other Total on-balance sheet Real estate Total off-balance sheet Total net unrealised gains/losses Decrease in unrealised gains on government bonds mainly due to higher interest rates in 203 Decrease in unrealised gains on corporate bonds primarily from higher interest rates, partially offset by tighter credit spreads during the year Decrease in unrealised gains on securitised products mainly from CMBS positions as interest rates have increased Increase in unrealised gains on equities as a result of rising equity markets in

41 Return on investments basis Investments included in the ROI calculation USD bn End FY 203 End FY 202 Total investment portfolio Unit-linked investments With-profit business Total (excl. unit-linked and with-profit) Cash and cash equivalents Policy loans Other insurance related Financial liabilities and other Total Includes securities in transit, repurchase agreements, securities lending and other assets backing insurance 4

42 Return on investments (ROI) USD m P&C Re L&H Re Corporate Solutions Admin Re Group items Consolidation Total FY 203 Total FY 202 Total Q4 203 Net investment income Net realised gains/losses (incl. fx) Other revenue Investment operating income Less minority interest income Less income from cash/interest income Less income from securities lending/repurchase agreements Basis for ROI Average investment assets at avg. fx rates ROI, annualised 2.8% 4.% 2.4% 5.%.7% n/a 3.6% 4.0% 3.8% Average assets calculation based on monthly average; 202 includes cash management activity which is excluded from ROI scope in

43 Overall investment portfolio 54% invested in cash, short-term investments or government bonds USD bn End FY 203 Balance sheet values 58.2 Unit-linked investments With-profit business -3.5 Assets for own account (on balance sheet only) 30. Equities 8% Securitised products 5% Corporate bonds 24% Mortgages and other Other loans 7% 2% Cash and cash equivalents 6% Short-term investments 6% Government bonds incl. Agency 32% Corporate Admin Group Consolidation FY 203 FY 202 End End USD bn P&C Re L&H Re Solutions Re items Cash and cash equivalents Short-term investments Government bonds Corporate bonds Securitised products Equities Mortgages and other loans Policy loans Other investment related Other insurance related Total Comprised of listed equities, hedge funds equities, private equity and includes Principal Investments 2 Includes cat bonds and loans 3 Includes alternative investments such as hedge funds non equities and real estate, derivatives and other investments 43

44 Government bonds High quality portfolio USD m S&P rating 3 Dec 203 End FY 203 Government bonds valued at 99.6% of par 2 % of Total United States AA % United Kingdom AAA % Canada AAA % China AA % Australia AAA 76.9% Japan AA % Switzerland AAA 643.6% RoW and other AAA-NR % Non-Eurozone market value % Germany AAA % France AA % Netherlands AA % Eurozone other AAA-BB % Eurozone market value % Total market value % Decrease from 202 mainly due to net sales of USD 4.2bn to accommodate re-balancing and m-t-m losses of USD 3.6bn Represents S&P's local currency long term debt rating for the respective countries 2 Excluding interest only positions EEC/EU supersovereign 8% Eurozone other: USD 44m Finland 2% Other 7% EIB (European Investment Bank) 26% Austria 38% Other includes European peripheral exposure of USD 2m: Portugal BB USD 2m Italy nil Spain nil Greece nil Ireland nil 44

45 Corporate bonds Re-balancing complete USD m End FY 203 % of Total Resources % Basic industries 64 5.% Cyclical consumer goods % Cyclical services % Energy, utilities & mining % Financials % General industries % Information technologies 469.5% Non-cyclical consumer goods % Non-cyclical services % Total¹ % Pfandbriefe / covered bonds End FY 203 4% Banks 5% Specialty 5% Insurance 3% Real Estate, other 7% Total 00% 7% 6% 34% 5% 48% BBB A AA AAA <BBB 6% United States 2% 55% United Kingdom 3% Netherlands 3% Australia 6% Canada 5% Switzerland 7% Sweden 3% France Other Continued re-balancing into corporate bonds with net purchases of USD 9.bn in 203 Includes Pfandbriefe/covered bonds; excludes credit ETFs 45

46 Securitised products 54% AAA rated, 88% investment grade 38% 3% 4% Total: USD 6.5bn (98% par) 45% USD m End FY 202 End FY 203 Aaa Aa A BBB BB and below Est. % par CMBS % RMBS % Other ABS % Other Securitised % Total % Decrease of USD 98m mainly due to net sales and maturities in CMBS during the year Includes invested assets and off balance sheet investment exposures, excludes cat bonds and loans 46

47 Equities and Alternative investments Active management Equities USD m End FY 202 End FY 203 Listed Equities Private Equity Hedge Funds - equities Principal Investments Total market value Listed Equities by sector 3% % 2% % 4% 4% 6% 9% 0% 2% 48% Exchange-traded funds Non-Cyclical Consumer Goods Financials Information Technology Cyclical Services General Industrials Resources Non-Cyclical Services Basic Industries Cyclical Consumer Goods Utilities Alternative investments USD m End FY 202 End FY 203 Hedge Funds non equities Real Estate Total market value % Real Estate by geography 5% 67% Switzerland Indirect Real Estate Germany Increase in listed equities includes re-balancing with net purchases of USD 2.5bn in % of hedge funds and 58% of private equity investments are equity accounted; mark-tomarket recorded through net investment income Excludes Principal Investments 2 Principal Investments consists of listed equities (USD 826m) and Private Equity (USD 452m) 47

48 Sensitivities USD m, pre-tax Listed equity investments Private equity investments Hedge fund investments Government bonds Corporate bonds Securitised products Scenario Estimated impact on shareholders equity Estimated impact on economic net worth (EVM) Fall in market values of 25% Fall in market values of 25% Fall in market values of 25% Rise in interest rates of 00 bps Increase in spreads of 00 bps Rise in interest rates of 00 bps Increase in spreads of 00 bps Rise in interest rates of 00 bps Note: all sensitivities are assumed to take effect on 3 December 203 and no management actions are included in this analysis. Results are estimated as mutually exclusive events and reflect the estimated impact on the Group of given economic outcomes. All figures are net of hedging impacts (excluding minor equity hedges). 48

49 Common shareholders' equity Q4 203 USD m Gov bonds -0.7 Corp bonds -0. Sec products 0.0 Equities and others 0.4 Tax 0. Total Common shareholders' equity 30 Sep 203 Net income attributable to common shareholders Other Foreign currency translation adjustments Net change in unrealised gains/losses Common shareholders' equity 3 Dec

50 Number of shares in millions FY 203 Total shares of which Treasury shares and shares reserved for corporate purposes 28.5 Shares outstanding (as at 3 December 203) Shares outstanding (weighted average) Shares outstanding is the number of shares eligible for dividends and is used for the BVPS and EPS calculation 50

51 Premiums by country 203 Gross premiums written and fees assessed against policyholders by country USD m Life&Health Non-Life Total FY 203 USA UK China Australia France Canada Germany Japan Ireland Italy Netherlands Switzerland Republic of Korea Spain Bermuda South Africa Israel India Mexico Other Total Country split based on the country where the premium was generated or an approximation thereof 5

52 Exchange rates Average rates Closing rates CHF/USD EUR/USD GBP/USD FY Q FY Change FY 202/FY % 3.9% -.27% Change Q3 203/FY %.53%.30% CHF/USD EUR/USD GBP/USD FY Q FY Change FY 202/FY % 4.55%.84% Change Q3 203/FY % 2.22% 2.47% Gross premiums written FY 203 split by main currencies CAD 4% AUD 6% CNY 8% GBP 8% Other 3% EUR 8% USD 43% 52

53 Corporate calendar & contacts Corporate calendar 8 March 204 Publication of Annual Report 203 and EVM March 204 Annual General Meeting (AGM) Briefing Conference call April th Annual General Meeting Zurich 7 May 204 First Quarter 204 results Conference call 3 July 204 Investors' Day London 6 August 204 Second Quarter 204 results Conference call 7 November 204 Third Quarter 204 results Conference call Investor Relations contacts Hotline Investor_Relations@swissre.com Eric Schuh Ross Walker Chris Menth Simone Lieberherr Simone Fessler

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55 Cautionary note on forward-looking statements Certain statements and illustrations contained herein are forward-looking. These statements (including as to plans objectives, targets and trends) and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical fact or current fact. Forward-looking statements typically are identified by words or phrases such as anticipate, assume, believe, continue, estimate, expect, foresee, intend, may increase and may fluctuate and similar expressions or by future or conditional verbs such as will, should, would and could. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause Swiss Re s actual results of operations, financial condition, solvency ratios, liquidity position or prospects to be materially different from any future results of operations, financial condition, solvency ratios, liquidity position or prospects expressed or implied by such statements or cause Swiss Re to not achieve its published targets. Such factors include, among others: further instability affecting the global financial system and developments related thereto; deterioration in global economic conditions; Swiss Re s ability to maintain sufficient liquidity and access to capital markets, including sufficient liquidity to cover potential recapture of reinsurance agreements, early calls of debt or debt-like arrangements and collateral calls due to actual or perceived deterioration of Swiss Re s financial strength or otherwise; the effect of market conditions, including the global equity and credit markets, and the level and volatility of equity prices, interest rates, credit spreads, currency values and other market indices, on Swiss Re s investment assets; changes in Swiss Re s investment result as a result of changes in its investment policy or the changed composition of its investment assets, and the impact of the timing of any such changes relative to changes in market conditions; uncertainties in valuing credit default swaps and other credit-related instruments; possible inability to realise amounts on sales of securities on Swiss Re s balance sheet equivalent to their mark-to-market values recorded for accounting purposes; the outcome of tax audits, the ability to realise tax loss carryforwards and the ability to realise deferred tax assets (including by reason of the mix of earnings in a jurisdiction or deemed change of control), which could negatively impact future earnings; the possibility that Swiss Re s hedging arrangements may not be effective; the lowering or loss of one of the financial strength or other ratings of one or more Swiss Re companies, and developments adversely affecting Swiss Re s ability to achieve improved ratings; the cyclicality of the reinsurance industry; uncertainties in estimating reserves; uncertainties in estimating future claims for purposes of financial reporting, particularly with respect to large natural catastrophes, as significant uncertainties may be involved in estimating losses from such events and preliminary estimates may be subject to change as new information becomes available; the frequency, severity and development of insured claim events; acts of terrorism and acts of war; mortality, morbidity and longevity experience; policy renewal and lapse rates; extraordinary events affecting Swiss Re s clients and other counterparties, such as bankruptcies, liquidations and other credit-related events; current, pending and future legislation and regulation affecting Swiss Re or its ceding companies, and the interpretation of legislation or regulations by regulators; legal actions or regulatory investigations or actions, including those in respect of industry requirements or business conduct rules of general applicability; changes in accounting standards; significant investments, acquisitions or dispositions, and any delays, unexpected costs or other issues experienced in connection with any such transactions; changing levels of competition; and operational factors, including the efficacy of risk management and other internal procedures in managing the foregoing risks. These factors are not exhaustive. Swiss Re operates in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance on forward-looking statements. Swiss Re undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. This communication is not intended to be a recommendation to buy, sell or hold securities and does not constitute an offer for the sale of, or the solicitation of an offer to buy, securities in any jurisdiction, including the United States. Any such offer will only be made by means of a prospectus or offering memorandum, and in compliance with applicable securities laws. 55