Your Swiss Insurer. Helvetia Group Business Profile

Transcription

1 Your Swiss Insurer. Helvetia Group Business Profile September 2013

2 Cautionary statement regarding forward-looking statements This document is prepared by Helvetia Group and may not be copied, altered, offered, sold or otherwise distributed to anybody by the recipient without the consent of Helvetia Group. Although all reasonable effort has been made to ensure that the facts stated herein are correct and the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to and an overview of the business of Helvetia Group. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed as accurate by Helvetia Group. Neither Helvetia Group nor any of its directors, officers, employees and advisors nor any other person is liable in any way for any loss howsoever arising directly or indirectly from the use of this information. The facts and information contained in this document are as up to date as is reasonably possible and may be subject to revision in the future. Neither Helvetia Group nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document. This document may contain projections or other forward-looking statements related to Helvetia Group which, by their very nature, involve inherent risks and uncertainties, both general and specific, and there is a risk that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These include (1) changes in general economic conditions, in particular in the markets in which we operate; (2) the performance of financial markets; (3) changes in interest rates; (4) changes in currency exchange rates; (5) changes in laws and regulations, including accounting policies or practices; (6) risks associated with implementing our business strategies; (7) the frequency, magnitude and general development of insured events; (8) mortality and morbidity rates; (9) policy renewal and lapse rates. We caution you that the foregoing list of important factors is not exhaustive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties. All forward-looking statements are based on information available to Helvetia Group on the date of its publication and Helvetia Group assumes no obligation to update such statements unless otherwise required by applicable law. The purpose of this document is to inform Helvetia Group s shareholders and the public of the business activities of Helvetia Group in the first half of This document does not constitute an offer or a solicitation to exchange, buy or subscribe to securities, nor does it constitute an offering circular as defined by Art. 652a of the Swiss Code of Obligations or a listing prospectus as defined by the listing rules of the SIX Swiss Exchange. Should Helvetia Group make one or more capital increases in the future, investors should make their decision to buy or subscribe to new shares or other securities solely on the basis of the relevant offering circular. This document is also available in German. The German version is binding. 1

3 Business profile Slides 3-22 About Helvetia Slides 3-11 Helvetia key figures at a glance Slides Strategy Slides Financial figures half-year 2013 Slides Appendix to the financial figures Slides

4 Who we are Helvetia Insurance at a glance Strong position in home market Switzerland More than 2.7 mn clients Business volume of about CHF 7.0 bn Focused insurer in selected European markets Focused on retail and SME customers Strong capitalisation «A»-Rating 3

5 Profile of Helvetia Multi-market Player focused on designated European Markets Strong position in the Swiss Home Market Focus on affluent regions of Central and Southern Europe with stable market structures and growth potential Geographic diversification in order to limit concentration of risks Focused on retail and SME customers Optimisation of risk profile Reduction of large individual as well as industrial risks Concentrating on profitable segments Active in life- non-life and reinsurance business Demand for private pension solutions boosted by ageing of the population and growing public deficits Balancing the profitable non-life, the potentially stronger life and the cyclical reinsurance book Healthy technical underwriting, conservative asset management and solid capitalisation High quality of the portfolio due to selective underwriting policy Solide investment structures with sustainable earnings potential Strong capital position with 'A' rating and low leverage 4

6 Our promise "To excel in growth, profitability and customer loyalty" Benefit for customers Top quality supplier and premium Swiss brand Strong service culture: individual, personal, competent High-quality distribution network supported by renown cooperation partnerships More than 150 years of experience as an all branche insurance company Not everything for every customer: - Regional focus - Customer focus - Product focus Benefit for Shareholders Reliable dividend payer generating attractive returns Efficient risk management together with a sustainable investment policy results in low earnings volatility Continious and sustained growth through a combination of operating in selected markets and a profitable product portfolio Focus on on long-term investor relationships and stable core shareholders Investor focus: - Long term investment - Steady and reliable partner 5

7 Our business model Characterised by dynamic growth and striving for efficiency Accounts for 60% of the Groups total business, of which 70% are generated in Switzerland Portfolios abroad with great potential for growth to be further developed High profitability of the portfolio thanks to risk-sensitive pricing and actuarial discipline Disciplined underwriting strategy / selectively underwriting large corporate risks Opportunistic niche market player with excellent business relationships, strict underwriting policy and high industry diversity Life business with growth potential Reinsurance policy limits loss event impact on the earnings to one percent of the premiums International, qualitative high class and persistently profitable reinsurance portfolio Lucrative non-life business Rather follows profit targets than premium volume and works always profitable Selective reinsurance business 6

8 Customer needs in focus Overall focus on customer centricity We focus on the needs of private individuals as well as small and medium-sized enterprises We consistently centre our product development and sales efforts on the needs of our customers Strong service culture Superior customer satisfaction & loyalty Focused product development Our decentralised and flexible organisation enables us to react quickly to shifts in demand First-class distribution network Multi-Channeling approach Our distribution partners Strong tied agents network High quality broker relations Exclusive and renown cooperation partners instead of an own bancassurance solution Strong cross-selling potential abroad (life / non-life) 7

9 Shareholder structure with long-term focus* 4.0% Raiffeisen Switzerland 4.0% Vontobel Group Free Float Pool members 30.1% Patria Mutual 61.9% 38.1% Free float * by investor type Free float* by geography Private individuals 27.4% Banks and insurers Other institutional investors 58.4% Investors based abroad 33.5% Swiss investors 66.5% 14.2% * As at and without dispo position 8

10 Our strategic ambition Strengthen expansion of market positions Expand sales reach and productivity New strategic alliances and pushing of external growth with selected acquisitions Sustainably improve profitability Non-life: secure top position as regards earning power Life: improve capital efficiency and increase profit contribution of foreign markets Secure solid risk/return profile Improve customer loyalty in line with need Improve broker and agent stability Consistent product and sales focus on customer life cycle The Helvetia Group strategy is targeted on expanding our stable business portfolio in the existing country markets 9

11 Our strategic initiatives Strengthen expansion of market positions Expand multi-channeling approach in all country markets Establish «European» life product development step by step Pursue an active M&A strategy Sustainably improve profitability Industrialise the business process and push Group-wide IT bundling Group-wide, strategic steering of life business Optimise financial structure in accordance with supervisory requirements Group-wide development of actuarial methods for non-life business (NL margin management) Improve customer loyalty in line with needs Optimise CRM approach for managing sales processes Quality management of business processes (EFQM) Enhance brand profile / Group-wide branding concept 10

12 Financial objectives Medium-term financial objectives Status FY 2012 Growth objectives Organic growth above the market average CHF 6,979 million Profitability objectives 94-96% combined ratio (NL) % new business margin* (L) 93.7% 0.9% Cost objectives Further improvement of cost efficiency Capital objectives Solvency I > 175% Rating class : A 227% A Return on equity 10-12% (temporary slightly below 10% due to low interest environment) 9.1% Payout ratio 30-50% 46% Previous year s figures adjusted * On basis of PVNBP 11

13 Business profile Slides 3-22 About Helvetia Slides 3-11 Helvetia key figures at a glance Slides Strategy Slides Financial figures half-year 2013 Slides Appendix to the financial figures Slides

14 Our market positions Strong growth potential due to small market positions Helvetia markets generate volume of US $ 772 billion and represent 16.7% of world market. Ambition Helvetia strives to strengthen the current attractive business portfolio in its current markets and to extend its market shares continuously CHF 113 mn* CHF 810 mn 31% life 69% non-life $ 242 bn Niche position No. 2 $ 61 bn TOP 5 $ 232 bn TOP 30 $144 bn TOP 16 $ 21 bn TOP 12 CHF 3,979 mn 80% life 20% non-life CHF 299 mn 38% life 62% non-life CHF 402 mn 31% life 69% non-life $ 72 bn TOP 29 CHF 1,161 mn 58% life 42% non-life Source: sigma 3/2013, Swiss Re * Impact of the acquired Gan Eurocourtage portfolio will become visible mostly on 2013 figures. 13

15 2012 business configuration (in CHF million) By business area By geography Non-life 35% 2,413 Reinsurance 3% 215 ES 6% 402 9% 627 Other insurance units 16% 1, bn IT 7.0 bn Life 62% 4,351 DE 12% % 3,979 CH 14

16 Key figures (1/2) After tax profit (in CHF million) Business volume (in CHF million) Our focus Profitable growth ,755 7,172 6,979 HY: 179 HY: 4, * Net combined ratio (NL) (in %) Value of new business (L) (in CHF million) Our focus Strong technical results Profitability and efficiency enhancement HY: 94.9 HY: * * Previous year s figures adjusted 15

17 Key figures (2/2) Shareholders' equity (in CHF million) Solvency I (in %) Our focus Financial strength 3,158 3,378 3, HY: 3,561 HY: * 2010 Dividend (per share in CHF) Payout ratio / Dividend yield (in %) 4.5% * 5.4% 4.9% Our focus Sustained dividend policy * * Previous year s figures adjusted 16

18 Well-diversified investment portfolio By asset class FY 2012 (Dec 11 in brackets) Equities** Loans Unitlinked assets Mortgages Investment property Alternative investments / investment funds / derivatives 3% 2% 4% (3%) (2%) 4% (4%) (4%) 5% (5%) 10% (10%) 13% (14%) 37.7 bn Other* 59% (58%) Bonds Performance by asset class FY % Equities 6.0% Bonds 4.9% Mortgages 2.7% Investment property 5.5% Average Sovereigns under observation FY 2012 Non- life Life Total Italy Spain as % of investments 3.1% other PIIGS as % of investments 0.0% Total , ,117.7 as % of investments 3.1% * Money market instruments and investments in associates ** Net equity exposure after hedging: 2.0% 17

19 Business profile Slides 3-22 About Helvetia Slides 3-11 Helvetia key figures at a glance Slides Strategy Slides Financial figures half-year 2013 Slides Appendix to the financial figures Slides

20 Strategy implementation: Growth+ Development of business volume Performance in half-year 2013 (in CHF million) ~ 7 bn 5,712 6,711 6,755 7,172 6,979 Selective growth: Solid growth of 4.9% in non-life buisness Pleasant growth in life business with 5.5% (regular premiums IL +8.0%, GL +15.8) Promising acquisitions: Integration of the French transport portfolio Gan Eurocourtage Closing of acquisition of majority interest in Chiara Assicurazioni (non-life) and acquisition of remaining minorities of Chiara Vita (life) Portfolio integration of SEV insurance mutual to Helvetia Switzerland HY: +5% Multi-channelling: Increased cross-selling potential due to improved bancassurance position in Italy Implemented affinity group approach in Switzerland 19

21 Promising acquisitions 2010 Alba & Phenix 25% increase (CHF 170 mn) in Swiss non-life book Strengthens distribution in high profitable market Improves visibility in Western Switzerland Increases efficiency through cost synergies Successful integration / rebranding in SEVV Business volume of CHF 20.5 mn 4% growth in regular premiums in single life business Opening up new customer segments for life and non-life 2012 Gan Eurocourtage 2012 Chiara Vita 2012 Chiara Assicurazioni 182% growth (EUR 150 mn) No. 2 in French transport insurance market Complement product range in hull business Transfer of experts and know-how as well as innovational strength Complete takeover by acquiring the remaining minorities of 30% (total premium volume EUR 480 mn) Renewal of distribution agreement with Banco di Desio for additional10 years Non-life premium volume of EUR 32 mn (no motor business) Greatly enhanced distribution capabilities in NL due to direct banking network access of Chiara Assicurazioni 20

22 Strategy implementation: Profitability+ Development of administration cost ratio non-life (net in %) Development of claims ratio non-life (excl. NatCat) (net in %) HY: 8.7 Performance in half-year 2013 Solid results in a challenging environment: Profit growth to CHF 179 mn (+13%) Non-life: Combined ratio in target corridor despite severe weather events Short-term increase of cost ratio due to portfolio adjustments, acquisition and investments in business development Decline in claims ratio positive effect of portfolio adjustments in Italy and Germany Life: Stable margin between current investment income and average interest guarantees Strong balance sheet: CHF 3.6 bn equity equity (without preferred securities) Strong capital position even under solvency I and SST Rating: «A» with outlook stable HY 11 HY 12 HY 13 21

23 Strategy implementation: Customer loyalty+ Current highlights New brand positioning Improvement in customer relations Switzerland: Switzerland: Helvetia promotes dialogue with ist customers via its blog Switzerland and Spain: implementation of a groupwide CRM, further countries to follow Group-wide adaption of a standardised brand and marketing campaign Launch of "Customer loyalty" as new strategic initiative in Switzerland Increase brand awareness intensified Swiss Ski sponsoring Top marks: e.g. Helvetia Italy: highest customer satisfaction in motor business Helvetia Austria: three top ranked products in life and non-life New brand positioning: with new claim «Your Swiss Insurer» Helvetia Germany: one of the leading service provider in life 22

24 Business profile Slides 3-22 About Helvetia Slides 3-11 Helvetia key figures at a glance Slides Strategy Slides Financial figures half-year 2013 Slides Appendix to the financial figures Slides

25 Highlights of the half-year results 2013 Solid results in a challenging environment Profit growth Group profit for the period of CHF 179 million (+13.4%) emphasises the solid development of earnings in a challenging economic environment Sustainably sound home market Stable profit contributions by our foreign markets: DE, IT and ES Well diversified portfolio Robust results in life and non-life business New business margin of 1.4% back in target corridor Combined Ratio at 94.9% despite severe weather events Good business development Increase of business volume to CHF 4,775 million Growth impulse by life CH, DE and AT Well capitalised Pleasing investment result, direct yield stable at 2.8% (annualised) 210% Solvency I / SST coverage between 150 and 200% Upgrade: S&P Rating from A- to A 24

26 Your Swiss Insurer. Financial figures

27 Result by business area Solid operating result in a challenging environment (in CHF million) % /06/ /06/ Total Life Non-life Other activities Data for the first half-year of 2012 has been adjusted in accordance with amendments to the accounting and valuation principles. 26

28 Result by geography Sound performance of segments despite tough market environment (in CHF million) % /06/ /06/ Total CH DE IT ES Other insurance units* Corporate * This segment consists of the countries Austria and France as well as the reinsurance business. 27

29 Business volume in original currency: +4.7% (in CHF million) By business area Direct business by country ,775 4,683 4,528 4,416 HY 12 Life Non-life Reinsurance HY 13 HY 12 CH DE IT ES AT FR HY 13 28

30 Combined ratio non-life +1.2% pts. 93.7* * Claims ratio development Total NatCat HY 11 HY 12 HY 13 Claims ratio HY 12 HY 13 Administration cost ratio Acquisition cost ratio Claims ratio remains on prior year level despite higher NatCat claims burden improvement of 2.3% pts. excluding NatCats Gross claims ratio clearly reduced due to lower claims cessions despite higher NatCats Cost ratio has increased due to acquisitions and portfolio optimisation in Italy and Germany * Previous year s cost ratio respectively combined ratio restated due to first-time application of amended IAS 19 and adjusted as a result of revised allocation of structural costs. 29

31 Cost ratio walk 0.1% pts. 0.4% pts. 0.6% pts. 0.4% pts. 0.4% pts. 27.3% 27.4% 27.8% 29.2% HY 12 reported IAS 19 etc. HY 12 restated Cost allocation HY 12 adjusted * ) ** ) Portfolio optimisation Acquisitions Other HY 13 reported * ) Restated due to first-time application of amended IAS 19. ** ) Adjustment as a result of revised structure cost allocation. 30

32 Value of new business Higher margins driven by improved capital market environment New business volume (in CHF million) Value of new business (in CHF million) New business profitability (in %) 2,012 3,096 2, % 0.9% 1.4% HY HY 13 HY HY 13 HY HY 13 New business volume and profitability are based on the present value of new business premiums (PVNBP). 31

33 Direct yield and guarantees in life business Stable gross margin* ) benefits policy holders and shareholders Switzerland EU HY 13** 1.89% 0.88% 2.77% HY 13** ) ) 2.49% 0.76% 3.25% % 0.79% 2.71% % 0.97% 3.46% % 0.72% 2.79% % 1.02% 3.60% Margin Average guaranteed interest Half-year results 2013 CH EU Total Direct yield** ) 2.77% 3.25% 2.86% Average guaranteed interest 1.89% 2.49% 2.00% Margin 0.88% 0.76% 0.86% * ) Before legal quote ** ) Direct yield annualised 32

34 Changes in Equity Equity influenced by rising interest rates and dividend payment (in CHF million) 7.4% 11.4% % 8.7% Hybrid capital Unrealised gains/losses (net) (including policyholder share) 81.2% 4,050 3, % Equity, reserves and minority interests Equity as at 31/12/2012 Group profit for period G/L* recognised in equity Dividends Other Equity as at 30/06/2013 * Contains unrealised gains/losses 33

35 Swiss Solvency Test Improved SST coverage ratio Range confirmed Update on model approval process Six out of seven of our internal models have conditional approval from FINMA. The approval process is on track and proceeding as planned SST coverage ratio For the end of 2012* Helvetia Group reports a consolidated SST coverage ratio whithin the range 150 to 200% We also expect a sound development of the SST coverage ratio within the first half of 2013 Sensitivity analysis (in CHF million) Equities -30% Interest rates -100 bp Credit Spreads +100 bp SST -9% pts. -13% pts. -23% pts. * Excluding temporary alleviations which can be used in accordance with FINMA for the period

36 Your Swiss Insurer. Asset management

37 New and reinvestment of maturing funds in HY 13 Invested capital by asset class Direct yield by asset class* ) 3.0%** ) 2.1% 1.8% 2.2% Mortgages 7% 10% Equities Total volume: CHF 1.0 bn Equities Bonds Mortgages Average Segment split of new bond investments 53% 83% 36% Bonds 11% Corporate Financial Government * ) * Direct yield annualised ** ) Average dividend yield of our equities portfolio (excl. capital gains) 36

38 Well-diversified investment portfolio By asset class By IFRS category (Dec 12 in brackets) (in CHF billion) Equities ** ) Loans Unitlinked assets Alternative investments / investment funds / derivatives 4% 2% (3%) 4% (2%) 4% (4%) (4%) 5% (5%) Other* ) Trading / derivatives % HTM 3.4 9% % AFS 9% (10%) 39.2 bn 39.2 bn Mortgages 13% (13%) 59% (59%) % Investment property % Investment property Bonds LAR * ) Money market instruments and investments in associates ** ) Net equity exposure after hedging: 2.1% 37

39 Bond credit ratings (1/2) Rating quality remained very solid 58% 57% 58% 51% 50% 27% 31% 25% 12% 9% 13% 27% 26% 12% 14% 10% 10% AAA AA A < A and not rated HY 13 38

40 Bond credit ratings (2/2) Sector allocation as at 30/06/2013 Risk profile of financials 4.5% 1.1% 11.8% 23.1 bn 45.1% 16.9% 24.9% 10.4 bn 52.6% AAA AA A < A Not rated 43.1% 0.8% Financials States/supranationals Corporates 26.3% 26.4% 10.4 bn 46.5% Secured Unsecured (straight bonds) Government guarantee Subordinated 39

41 Government and supranational bond exposure Governments / supranationals Government bonds by country (Dec 12 in brackets) 9.1% 9.6% 3% 3% (2%) 3% (3%) (3%) 5% (5%) 35% (37%) 19.0% 10.0 bn 6% 6.2 bn (5%) 62.3% 6% (6%) 6% (8%) 7% (8%) 18% (15%) Country Regional authorities excl. countries / incl. cities Near-government enterprises Supranational banks Switzerland (35%) (AAA) Austria (6%) (AAA) Belgium (3%) (AA) Italy (18%) (BBB) Germany (5%) (AAA) Other (5%), of which: Luxemburg (7%) (AAA) Spain (3%) (BBB) 0.00% Greece (CCC) France (6%) (AA) Finland (3%) (AAA) 0.00% Portugal (BB) Netherlands (6%) (AAA) Slovakia (3%) (A) 0.00% Ireland (BBB) 40

42 Investments - overall performance (in CHF million) %* % +0.2% +0.1% -0.1 % 1.6% -1.3% 0.3% Current income Gains / losses FX gains / losses on bonds Derivatives Group result unreal. G/L (gross) Overall Group result Unit-linked Total (incl. UL) Stable current investment income in spite of low interest rates (2.8% direct yield, annualised), only 12 bp lower than in the previous year; bond and mortgage yields decrease by 12 respectively 20 bp (annualised), real-estate and dividend yields on equities remain at a high level Investment performance (0.3%, not annualised) is only slightly positive due to negative contribution of bonds (-0.7%), equities (8.1% performance before hedging) and real-estate (2.2% performance) contribute positively to result Decline of valuation reserves in equity because of increased interest rate * Half-year annualised 41

43 Your Swiss Insurer. Swiss business

44 Swiss market Total gross premiums: CHF 3,119 million (+7.8%) (in CHF million) Profit after Tax % Gross premiums life 2,559 2, % Combined ratio in % (net) * -1.2% pts. Gross premiums non-life % 30/06/ /06/2012 Life: Pleasing growth of regular premiums in group life as well as individual life; demand for full insurance solutions in group life continues; SEVV portfolio fully consolidated Non-life: Excellent performance with slight growth (mostly driven by motor vehicle business) * Previous year s combined ratio restated due to first-time application of amended IAS 19 and adjusted as a result of revised allocation of structural costs. 43

45 Highlights: Non-life business Switzerland Slight growth at robust result (in CHF million) HY 13 HY 12 13/12 Total premiums non-life % Property % Transport % Motor vehicle % Liability % Accident/health % Combined Ratio (net) 85.4% 86.6%* -1.2% pts. Claims ratio (net) 57.9% 59.9% -2.0% pts. Cost ratio (net) 27.5% 26.7%* +0.8% pts. Slight growth of total premiums in non-life business Growth driver is motor vehicle business; transport and property is declining Combined ratio has slightly decreased; claims ratio improved by 2% pts. thanks to solid portfolio performance; cost ratio slightly increased because of the implementation of new generations table, changes of pension and supplementary fund as well as planned investments in business development * Previous year s cost ratio respectively combined ratio restated due to first-time application of amended IAS 19 and adjusted as a result of revised allocation of structural costs. 44

46 Highlights: Life business Switzerland Pleasing growth at regular premiums (in CHF million) HY 13 HY 12 13/12 Total premiums direct life 2,559 2, % Total individual life % Regular premiums % Single premiums % Total group life Regular premiums Single premiums 2,166 1,113 1,053 1,837 1, % +4.9% +35.7% Individual life: Regular premiums with continuous growth; growth of single premiums under prior-year period due to the fact that that the tranche product "Helvetia Value Trend" is only partly invoiced Group life: Continuous growth of regular premiums, strong increase of single premiums by new business Technical performance: Very good technical result and further enhancement of reserves Acquisition: Premiums of last years acquired SEVV portfolio fully consolidated 45

47 Your Swiss Insurer. Conclusion

48 Ambition Helvetia on track Growth+ Profitability+ Customer loyalty+ Strongly expand market position Sustainably improve profitability Improve customer loyalty in line with needs 47

49 Business profile Slides 3-22 About Helvetia Slides 3-11 Helvetia key figures at a glance Slides Strategy Slides Financial figures half-year 2013 Slides Appendix to the financial figures Slides

50 Business volume by geography half-year 2013 (in CHF million) Life Non-life Total HY 13 13/12 13/12 (LC) HY 13 13/12 13/12 (LC) HY 13 13/12 13/12 (LC) Switzerland 2, % +9.4% % +0.9% 3, % +7.8% EU % -10.1% 1, % +7.3% 1, % +0.6% Germany % +13.0% % -7.1% % -2.4% Italy* % -21.6% % -6.2% % -15.1% Spain % +1.1% % -2.4% % -1.4% Austria % +8.1% % +4.4% % +5.7% France % % % % Direct business 3, % +5.5% 1, % +4.9% 4, % +5.3% Assumed reinsurance % -17.5% Total 4, % +4.7% * Including deposit volumes (not reported as premiums under IFRS) 49

51 Life business volume half-year 2013 (in CHF million) Currency-adjusted growth Individual life Group life Unit-linked Deposits Total Life Switzerland Germany 352 2, , % +17.9% +28.4% % 70 ** ) - ** ) % % % Italy* -21.7% -45.8% % -21.6% Spain Austria Total % +1.2% +27.5% % % % % 701 2, , % +15.8% +26.8% -17.3% +5.5% * ) Including deposit volumes (not reported as premiums under IFRS) ** ) The former group life contracts are reported now under individual life due to contractual conception. 50

52 Non-life business volume half-year 2013 (in CHF million) Currency-adjusted growth Property Transport Motor vehicle Liability Accident/ health Total NL Switzerland Germany Italy Spain France Austria Total % -1.7% +3.1% +0.9% % +0.9% % +25.3% -14.7% -9.7% +0.8% -7.1% % -4.3% -11.9% +9.0% +2.6% -6.2% % -11.8% -1.4% -4.6% -12.6% -2.4% % % +1.6% +2.2% % % +14.5% +1.4% +3.3% +3.2% +4.4% , % % -4.4% -1.0% -2.1% +4.9% 51

53 Traditional embedded value (in CHF million) ,647 31/12/12 EV yield +10.5% 30/06/13 1,670 Adjusted equity 1,683 1,828 + Value of insurance portfolio 1, Solvency cost ,647 Embedded value 2,756 2,756 31/12/2012 Expected added value Value of new business Operating variances Economic variances Capital movements Currency translation/ other 30/06/

54 Assumptions for EV calculation Switzerland EU Assumptions for calculation HY 13 HY 12 HY 13 HY 12 Risk discount rate (RDR) 5.5% 5.5% 6.5% - 9.5% 7.0% % Yield on bonds 1.7% - 2.5% 1.1% - 2.1% 3.9% - 4.9% 4.0% - 5.6% Yield on equities 5.5% 6.5% 6.5% 7.5% Yield on real estate 4.5% 4.5% 5.0% 4.9% Due to strongly diverging interest rates since end of 2011, the EV of each country has been calculated with separately defined risk discount rates 53

55 Life reserves with interest guarantee (in CHF billion) EU 5.6 Individual life % interest guarantee 1.5% interest guarantee CH 23.1 Group life 14.4 Other 5.5 Retirement 4.0 extra-mandatory assets mandatory 21.2% of Swiss life reserves are subject to the BVG minimum interest rate 54

56 The Swiss pension scheme 3-pillar-concept Pillar 1 Pillar 2 Pillar 3 General state insurance AHV (1948) Occupational pension plan for employees BVG (1985) Private coverage Purpose Basic level of provision Ensure living standard Coverage of individual requirements Responsibility Government Employer's responsibility Personal responsibility Financing Employer (50%) Employee (50%) Employer (min. 50%) Employee 100% self-financing Parameters - - Min. quota 90% - Min. interest rate 1.5% - Conversion rate 6.9% At the discretion of the insurer Helvetia CH business volume 2012 Helvetia CH 2012 market share - Group life: CHF 2,262 million : 10.0% Number 3 provider Individual life: CHF 921 million 2012: 12.0% Number 4 provider 55

57 Overview of net combined ratios (in %) CH DE IT ES AT FR Group *) RE Claims ratio (net) Cost ratio (net) Combined Ratio HY Combined Ratio HY **),***) 98.6 **) 96.1 **),***) 97.6 **) **) 84.8 **) 93.7 **),***) 96.2 **) Change from HY * ) The Group ratio reflects the non-life business segment, which includes the direct business, while reinsurance is included in the Other business segment. ** ) Previous year s combined ratio restated due to first-time application of amended IAS 19. *** ) Previous year s combined ratio adjusted as a result of revised allocation of structural costs. 56

58 Non-life technical account (in CHF million) HY 13 HY 12 Gross Share RE Net Gross Share RE Net Premiums earned 1, ,088 1, ,074 Insurance benefits Technical costs Technical result Investment income, net Other non-technical expenses and income Pre-tax profit Taxes Profit after tax Claims ratio (incl. profit participation) 61.8% 65.7% 64.1% 65.9% Cost ratio* 28.3% 29.2% 26.7% 27.4% Combined ratio* 90.1% 94.9% 90.8% 93.3% * Previous year s cost ratio respectively combined ratio restated due to first-time application of amended IAS 19, without consideration of revised structure cost allocation. 57

59 Investment result by business area (in CHF million) Life Non-life Other* Total HY 13 HY 12 HY 13 HY 12 HY 13 HY 12 HY 13 HY 12 13/12 Current income (net) Current income on Group investments Rental income Gains and losses on Group investments (net) Equities, investment funds alternative investments, derivatives Bonds Investment property Other Income from Group financial assets and investment property Unit-linked Income from financial assets and investment property Direct yield 2.9% 3.0% 2.6% 2.9% 2.8% 2.9% Performance 0.3% 2.3% 0.3% 2.6% 0.3% 2.3% * Incl. elimination of intra-group interest and dividend income 58

60 Direct yield and performance (in CHF million) Current income Direct yield* G/L Investment result Yield Unrealised G/L Total Yield Equities % % % Bonds % % % Investment property % % % Mortgages % % % * Not annualised 59

61 Group investment result compared to HY 12 (in Mio. CHF) HY 12 Current G/L equities/ G/L G/L Currency Other HY 13 income funds* bonds investment influence property * Also includes alternative investments and equity derivatives 60

62 Investment property By country By use 27% 5.0 bn 5.0 bn 73% 92.8% Germany(1.8%) Austria (3.1%) Switzerland (92.8%) Italy (0.5%) Spain (1.3%) France (0.5%) Residential Commercial 61

63 Direct yield in life business (in CHF million) Switzerland 2.5% 2.4% 2.3% 4.0% 4.2% 4.3% Bonds 13,312 14,761 14, HY 13* Investment property 4,278 4,412 4, HY 13* 3.5% 3.3% 3.3% 2.8% 2.7% 2.7% Equities Loans / Mortgages 3,862 4,009 4, HY 13* HY 13* EU 3.9% 3.7% 3.5% 4.0% 4.7% 3.8% Bonds 3,955 4,499 4, HY 13* Equities HY 13* * Half-year annualised except for equities 62

64 Equity exposure* vs market trends Equity index weighted according to exposure Equity exposure Equity exposure delta-adjusted Equity exposure after hedging 4.7% 4.4% 2.4% 3.8% 3.9% 3.8% 3.6% 3.6% 3.6% 3.2% 2.5% 1.7% 1.6% 1.3% 1.2% 3.9% 3.8% 1.6% 4.2% 4.5% 4.6% 4.0% 4.3% 4.3% 2.0% 2.0% 2.1% Equity index indexed as at Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 * Equity exposure incl. group equity funds 63

65 Investments in original currency Switzerland EU 3% 1% 2% 1% 10% CHF EUR 29.7 bn 9.5 bn USD Other 86% 97% Bonds Equities Investment funds Other CHF 58% 48% 39% 88% EUR 38% 25% 53% 12% USD 3% 19% 8% - Other 1% 8%

66 Currency hedges vs currency trends FX EUR/CHF* FX USD/CHF* FX GBP/CHF* Level of currency hedging 95% 92% 97% 86% 82% 78% 76% 76% 75% 69% 69% 61% 85% 79% 72% 75% 73% 71% 71% 70% 68% 70% 63% 70% 66% Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Helvetia holds investments in foreign currencies to cover liabilities in the same currencies and to diversify its investment base. This currency exposure of around CHF 3.2 billion is hedged comprehensively and permanently After an exchange rate target was set by the SNB, the Euro hedges were steadily reduced and partially replaced by currency options The hedges largely reduce the volatility of the investments in foreign currency in the income statement In comparison to the foreign currency exposure, the remaining currency movements in the result are relatively small * Indexed as at 30/06/

67 Financial bonds by country of issuer's origin 10 largest counterparties in financial bonds 5% 2% 4% 4% 33% Pfandbriefbank der Schweizerischen Hypothekarinstitute Pfandbriefzentrale der Schweizerischen Kantonalbanken Luzerner Kantonalbank N.V. Bank Nederlandse Gemeenten (BNG) 6% 8% 10.4 bn Zürcher Kantonalbank Basler Kantonalbank Hypothekenbank Frankfurt International Compagnie de Financement Foncier (CFF) 8% 9% 14% Kreditanstalt für Wiederaufbau Eurofima make up around 38% of the Group's financial bond portfolio Switzerland (33%) Luxembourg (6%) Ireland (1%) Germany (14%) UK (5%) Other (6%) Austria (9%) Italy (4%) France (8%) USA (4%) Netherlands (8%) Australia (2%) 66

68 Corporate bonds by country of issuer's origin 5% 2% 2% 3% 35% 5% 2.7 bn 10% 13% 15% France (35%) Italy (5%) Japan (1%) Netherlands (15%) Germany (3%) Other (7%) Switzerland (13%) Australia (2%) USA (10%) Luxembourg (2%) Austria (5%) UK (2%) 67

69 Sovereigns under observation Exposure to government bonds* (gross / in CHF million) Solvency I scenario sensitivities* (net / in %) Non- life Life Total Italy , ,094.3 Helvetia's strong balance sheet can cope very well with the direct risks associated with the PIIGS default scenario: Spain as % of investments 3.5% 20% default 50% default HY % pts. -25% pts. other PIIGS % pts. -23% pts. as % of investments 0.0% HY % pts. -26% pts % pts. -27% pts. Total , ,311.6 as % of investments 3.5% Without investments for account and risk of life policyholders. * Includes direct exposure to bonds as well as bond exposure of significant funds. 68

70 Equity / comprehensive income (in CHF million) G/L recorded in equity CHF -183 million Comprehensive income CHF -4 million 4,050 3,861 3,561 Total equity as at 31/12/2012 Group profit for the period Unreal. gains (net) Revalued pension benefit obligation Policyholder participation Deferred tax liabilities, net invest. hedge, FX translation Dividends Other Total equity as at 30/06/2013 Preferred securities Equity (without preferred securities) 69

71 Changes in unrealised gains/losses (in CHF million) Changes in fair value Gains/losses transferred to the income statement Unrealised gains/losses on assets 1'350 HY Equities Bonds 609 1, Other Total 865 1, Unrealised gains/losses (gross) as at 31/12/2012 Bonds Equities Other Unrealised gains/losses (gross) as at 30/06/

72 Unrealised gains/losses Breakdown between shareholders and policyholders (in CHF million) 138 Total unrealised G/L Shareholders' unrealised G/L in equity Policyholders' unrealised G/L in equity Policyholders' unrealised G/L in liabilities Minority interest in unrealised G/L and deferred tax 751 Liabilities 97 1, Liabilities Equity Equity 2012 HY 13 71

73 Group solvency and sensitivities (in CHF million) Solvency I 210% (reported) Sensitivity analysis: IFRS equity and Solvency I 3,542 Hybrid capital , % 189% 220% 227% 210% 1,690 NL: 391 L: 1, HY 13 Required capital Surplus cover Available capital Equities -30% Interest +100 bp Credit spreads * +100 bp * Contains corporate spreads and sovereign spreads for PIIGS countries. 72

74 Durations Modified duration* ) Share in % Bonds Other interest rate instruments and loans Total interest rate instruments and loans Liabilities life and non-life Duration gap of 0.3** ) (before consideration of real estate as additionally matching asset class) * ) Based on the current SST model. Real estate durations are not taken into account. ** ) The duration gap represents the exposure of risk-bearing capital to interest rate changes. 73

75 Retroactive restatement due to IAS 19 (in CHF million) Effect due to IAS 19 Amendments to IAS 19 (effective since January 2013) have material impact on the recognition of employee benefits: Abolition of the "corridor" approach Immediate recognition of G/L in the statement of comprehensive income, option to defer recognition of G/L no longer allowed Increased volatility in the balance sheet and income statement expected Equity -109 Further effects within the reporting period due to first time application of additional changes and amendments (without restatement): Introduction of new generation tables Amendment to the pension and supplementary fund regulations 74

76 About Helvetia Group Helvetia is a Europe-wide all-line insurance provider with core competences in risk management (life and non-life insurance business, reinsurance) as well as in pensions. The Group is active in Central and Southern Europe through its regional offices and subsidiaries. The Group is headquartered in St. Gallen, while the Swiss company's headquarters are located in Basel. With approximately 5,200 employees, Helvetia provides services to more than 2.7 million customers in six European countries. Around 2,500 people work for the company in Switzerland. The Group generated a business volume of about CHF 7.0 billion in the past financial year and a net profit of about CHF million. The registered shares of Helvetia Holding are traded on the SIX Swiss Exchange under the symbol HELN. 75

77 Management structure of Helvetia Group CEO Stefan Loacker General Secretariat * ) Christophe Niquille Internal Audit * ) Simon Schneider Finance Paul Norton Investments Ralph-Thomas Honegger Strategy & Operations Markus Gemperle HR International Markus Isenrich Switzerland Philipp Gmür Germany Wolfram Wrabetz Austria Burkhard Gantenbein Italy Francesco La Gioia Spain Jose Maria Paagman France ** ) Vincent Letac Members of the Group Executive Management Support functions * ) reports to the Chairman of the Board of Directors ** ) Vincent Letac has succeeded Alain Tintelin as CEO as of 1 st July

78 Group structure Helvetia Holding AG St. Gallen 100% Helvetia Insurance St. Gallen 100% Helvetia Beteiligungen AG St. Gallen 100% Helvetia Holding Suizo Madrid 100% Helvetia Compañia Suiza Sevilla 99% Helvetia Life Basel 100% Helvetia Reinsurance St. Gallen Helvetia Europe Luxemburg 100% Helvetia Versicherungen Vienna 100% Helvetia Finance St. Helier (Jersey) 100% Helvetia Head Office for Germany Frankfurt Helvetia Life Frankfurt 100% Helvetia Vita Milan 100% Helvetia Head Office for Austria Vienna Helvetia International Frankfurt 100% Chiara Vita Milan 100% Helvetia Head Office for France Paris Helvetia Assurances S.A. Paris 100% Helvetia Head Office for Italy Milan Padana Assicurazioni Milan 100% Chiara Assicurazioni Milan 51% 77

79 Important dates Publication of annual financial results for Ordinary Shareholders' Meeting Publication of half-year results for

80 Contact details Investor Relations Susanne Tengler Head of Investor Relations Helvetia Group Dufourstr. 40 CH 9001 St.Gallen Telephone: +41 (0) Simon Weiss Investor Relations Manager Helvetia Group Dufourstr. 40 CH 9001 St.Gallen Telephone: +41 (0) Corporate Communications & Brand Management Martin Nellen Head of Corporate Communications Helvetia Group Dufourstr. 40 CH 9001 St.Gallen Telephone: +41 (0)