Your Swiss Insurer. Helvetia Group Full-year results 2013

Transcription

1 Your Swiss Insurer. Helvetia Group Full-year results 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 2013 financial year. 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 legally binding. 1

3 Programme Highlights Financial figures Asset management Swiss business Conclusion Stefan Loacker Paul Norton Ralph-Thomas Honegger Philipp Gmür Stefan Loacker Q&A 2

4 Key messages of the 2013 financial year Strong annual result emphasises the group's successful development Profit growth Sustainable sound home market Increased profit contributions by our foreign markets Well diversified portfolio Strong results in life and non-life business New business margin of 1.6% Combined Ratio at 93.6% due to decreasing claim ratios despite severe weather events (all foreign markets < 100%) Net income Business volume 2013 CHF 364 million CHF 7'477 million Good business development Business volume: Life +8.2% (OC)* ) Non-life +4.3% (OC)* ) Growth impulse by life CH, DE and AT Combined ratio 93.6% RoE 9.3% Proposed dividend CHF Well capitalised Direct yield stable at 2.7% 218% Solvency I / SST coverage between 150 and 200% (HY 2013) Upgrade: S&P Rating from A- to A * ) Original currency 3

5 Your Swiss Insurer. Financial figures

6 Result by business area Solid operating result in a challenging environment (in CHF million) Other activities 5% 42% Life Non-life 53% +9.2% % % -13.1% Total Life Non-life Other activities 5

7 Result by geography Sound performance in our foreign markets (in CHF million) % % 3% CH 7% DE 6% IT 7% 69% ES Others Corporate +9.8% % +18.6% +32.5% -28.7% n/a 11 Total CH DE IT ES Other insurance units* ) -2 Corporate * ) This segment consists of the countries Austria and France as well as the reinsurance business. 6

8 Business volume in original currency: +6.3% (in CHF million) By business area Direct business by country , ,282 6,979 6, Life Non-life Reinsurance CH DE IT ES AT FR

9 Life Key points /12 13/12 (OC) Business volume 4,731 4, % +8.2% Net profit % +10.1% New business volume (in PVNBP) New business margin (in % PVNBP) 3,315 3, % 1.6% 0.9% +0.7% pts. Group life Switzerland as main driver for growth (+16.3%) / regular premiums increased by 5.1% Unit- and index-linked products make up 28% of total premium volume in individual life (2012: 21%) Pleasant growth contribution from most of our foreign markets Solid increase in earnings of 10.7% despite further reserve strengthening Improvement of new business margin due to increased reinvestment yield 8

10 Direct yield and guarantees in life business Stable gross margin* ) benefits policy holders and shareholders Switzerland EU Total 3.60% 3.46% 3.28% 2.79% 2.71% 2.62% 1.02% 0.97% 0.84% 2.95% 2.86% 2.75% 0.72% 0.79% 0.72% 0.75% 0.84% 0.75% ) 2.07% 1.92% 1.90% 2.58% 2.49% 2.44% 2.20% 2.02% 2.00% Margin Average guaranteed interest * ) Before legal quote 9

11 Non-life Key points /12 13/12 (OC) Business volume 2,551 2, % +4.3% Net profit % +10.2% Combined ratio 93.6% 93.7% -0.1% pts. Transport as main driver for growth (acquisition of Gan Eurocourtage in 2012) Germany and Italy with declining volumes according to plan due to portfolio adjustments and market environment Claims ratio improved by 1.4% despite severe weather events Planned increase of cost ratio in the short term due to portfolio adjustments and acquisitions with comparatively higher cost ratios Combined ratio with an overall pleasing improvement of 0.1% pts. 10

12 Combined ratio non-life (in %) -0.1% pts. 93.7* ) * ) Claims ratio development Total NatCat Claims ratio Administration cost ratio Acquisition cost ratio Portfolio adjustments support improvement of claims ratio (excluding NatCats) Cost ratio has increased due to acquisitions with higher cost ratios and portfolio optimisation in Italy and Germany All business units produce positive technical results (all combined ratios < 100%) * ) Previous year s cost ratio respectively combined ratio restated due to first-time application of amended IAS 19 11

13 Cost ratio walk 0.2% pts. 0.8% pts. 0.4% pts. 0.1% pts. 28.7% 28.9% 30.2% 2012 reported IAS 19 etc restated * ) Portfolio optimisation Acquisitions Other 2013 reported * ) Restated due to first-time application of amended IAS 19 12

14 Changes in Equity Increased equity due to good group result (in CHF million) 7.4% 11.4% % 8.8% Hybrid capital Unrealised gains/losses (net) (including policyholder share) 81.2% 4,050 4, % 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 31/12/2013 * ) Contains unrealised gains/losses 13

15 Dividend policy Dividend per share in CHF Dividend yield / payout ratio 4.5% 5.4% 4.9% 3.9% % 49% 46% ** ) 43% * ) * ) Dividend of CHF is 3% above prior year Payout ratio of 43% Attractive dividend yield of 3.9% * ) Recommendation to the Shareholders Meeting ** ) Previous year s payout ratio restated due to first-time application of amended IAS 19 14

16 Your Swiss Insurer. Asset management

17 Investments - overall performance (in CHF million) % +0.6% 0.0% 0.0 % 3.3% -1.4% 1.9% 986 1, 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 (2.7% direct yield), only 10 bp lower than in the previous year. Yields on real-estate remain stable whereas bond and dividend yields on equities dropped by 9 bp, respectively 12 bp. Mortgage yields decrease by 25 bp due to an on overall shorter duration. Investment performance (1.9%) is depressed due to the impact of higher interest rates on our bond portfolio which could not be compensated by a strong performance in equities (21.1%). Real-estate performance (3.9%) slightly below the previous year due to our defensive valuation approach. Decline of valuation reserves in equity, mainly driven by increased interest rates which could not be compensated by a positive contribution from equities. 16

18 Direct yield and performance 2013 (in CHF million) Investment performance: total portfolio Equities Bonds Investment property Mortgages Other Current income % % % % 48 G/L Investment result % % % % 56 Unrealised G/L Total % % % % 64 Equities New and reinvestment of maturing funds in 2013 Bonds Investment property Mortgages Direct yield 3.1% 2.2% 4.7% 1.9% 2.5% Weighted by asset class Avg. 12% 74% 9% 5% 100% 17

19 Well-diversified investment portfolio By asset class (Dec 12 in brackets) Alternative investments / investment funds / derivatives Other* ) Equities** ) Loans Unitlinked assets Mortgages 4% (4%) 5% (5%) 10% (10%) 3% 2% 5% (3%) (2%) (4%) 39.6 bn 58% (59%) Well-diversified investment portfolio Slight increase of in ratio of equites Defensive investment strategy remains in place 13% (13%) Investment property Bonds * ) Money market instruments and investments in associates ** ) Net equity exposure after hedging: 2.5% 18

20 Bond credit ratings (1/2) Rating quality remained very solid 58% 57% 58% 51% 47% 27% 31% 25% 27% 28% 12% 9% 13% 12% 15% 10% 10% AAA AA A < A and not rated

21 Bond credit ratings (2/2) Bonds with rating < A as at 31/12/ % 2.4 bn 41.0% 0.5% 11.8% 27.8% 1.0 bn 59.9% BBB BB B NR 50.2% 16.6% Italian government bonds Spanish government bonds Other 49.0% 1.0 bn 34.4% Government bonds Corporate bonds Financial securities 20

22 Your Swiss Insurer. Swiss business

23 Swiss market Business volume: CHF 4,371 million (+9.9%) (in CHF million) Profit after Tax * ) +9.8% Business volume life 3,574 3, % Combined ratio in % (net) * ) -0.6% pts. Gross premiums non-life % 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: Slight growth (mostly driven by motor vehicle business); remaining excellent earnings strength * ) Previous year s profit after tax and combined ratio restated due to first-time application of amended IAS 19 22

24 Highlights: Life business Switzerland Pleasing growth in regular premiums (in CHF million) /12 Business volume direct life 3,574 3, % Total individual life % Regular premiums % Single premiums % (thereof capital redemption products) 21 0 n/a Total group life Regular premiums Single premiums 2,630 1,134 1,496 2,262 1,079 1, % +5.1% +26.5% Individual life: Regular premiums with continuous growth; positive growth of single premiums due to tranche product Group life: Continuous growth of regular premiums, strong increase of single premiums by new business Technical performance: Good technical result and further enhancement of reserves and bonus reserves Acquisition: Premiums of last year's acquired SEVV portfolio fully consolidated 23

25 Verification of compliance with legal quota (OR) *) Legal quota exceeded again (in CHF million) Gross income (business subject to legal quota) % % Benefits in favour of policyholders (business subject to legal quota) % % Operating result (business subject to legal quota) Operating result (business not subject to legal quota) Operating result (group business Switzerland) * ) All figures under Swiss statutory reporting (OR), not IFRS 24

26 Highlights: Non-life business Switzerland Slight growth at robust result (in CHF million) /12 Total premiums non-life % Property % Transport % Motor vehicle % Liability % Accident/health % Combined Ratio (net) 84.7% 85.3%* ) -0.6% pts. Claims ratio (net) 56.1% 56.7% -0.6% pts. Cost ratio (net) 28.6% 28.6%* ) +0.0% pts. Slight growth of total premiums in non-life business Growth drivers are motor vehicle and liability business Slight improvement of combined ratio; claims ratio improved by 0.6% pts. due to solid portfolio quality; cost ratio unchanged * ) Previous year s cost ratio respectively combined ratio restated due to first-time application of amended IAS 19 25

27 Your Swiss Insurer. Conclusion

28 Ambition Helvetia on track Growth+ Profitability+ Customer loyalty+ Strongly expand market position Sustainably improve profitability Improve customer loyalty in line with needs 27

29 Financial objectives Medium-term financial objectives Status 2013 Growth objectives Organic growth above the market average CHF 7,477 million Profitability objectives 94-96% combined ratio (NL) % new business margin* ) (L) 93.6 % 1.6% Cost objectives Further improvement of cost efficiency ~ Capital objectives Solvency I > 175% Rating class : A 218% A Return on equity 10-12% (temporary slightly below 10% due to low interest environment) 9.3% Payout ratio 30-50% 43% * ) On basis of PVNBP 28

30 Your Swiss Insurer. Appendix

31 Business volume by geography 2013 (in CHF million) Life Non-life Total /12 13/12 (OC) /12 13/12 (OC) /12 13/12 (OC) Switzerland* ) 3,574 3, % +12.3% % +0.2% 4,371 3, % +9.9% EU 1,157 1, % -3.0% 1,754 1, % +6.3% 2,911 2, % +2.4% Germany % +16.3% % -4.6% % +1.9% Italy* ) % -13.6% % -2.4% 1,080 1, % -8.9% Spain % +1.6% % -2.5% % -1.2% Austria % +11.9% % +1.6% % +5.5% France % % % % Direct business* ) 4,731 4, % +8.2% 2,551 2, % +4.3% 7,282 6, % +6.8% Assumed reinsurance % -9.4% Total 7,477 6, % +6.3% * ) Including deposit volumes (not reported as premiums under IFRS) 30

32 Life business volume 2013 (in CHF million) Currency-adjusted growth Individual life whereof unitand index linked Group life Deposits Total Life Switzerland* ) Germany , , % +39.9% +16.3% % +12.3% 301** ) 127 -** ) % +15.5% n/a % Italy* -20.2% % +6.3% -13.6% Spain Austria Total % +26.9% +4.0% % % +59.6% % 1, , , % +28.4% +13.3% +20.4% +8.2% * ) Including deposit volumes (not reported as premiums under IFRS) ** ) The former group life contracts are reported now under individual life due to contractual conception 31

33 Non-life business volume 2013 (in CHF million) Currency-adjusted growth Property Transport Motor vehicle Liability Accident/ health Total NL Switzerland Germany Italy Spain France Austria Total % -4.9% +2.2% +1.5% %* ) +0.2% % +13.1% -14.8% -5.4% -1.7% -4.6% % -7.5% -11.3% +11.2% +13.6% -2.4% % -4.6% -0.3% -5.1% -12.1% -2.5% % % +3.9% -2.6% % % -23.7% +1.4% +3.1% +3.3% +1.6% , % +77.8% -4.9% +0.9% +2.9% +4.3% * ) Sale of Alba/Phenix's accident and health business 32

34 Traditional embedded value (in CHF million) ,647 31/12/12 EV yield +12.0% 31/12/13 1,670 Adjusted equity 1,780 1,828 + Value of insurance portfolio 1, Solvency cost ,647 Embedded value 2,923 2, Expected added value Value of new business Operating variances Economic variances Capital movements Currency translation/ other

35 Assumptions for EV calculation Switzerland EU Assumptions for calculation Risk discount rate (RDR) 5.8% 5.5% 6.5%-8.5% 7.0%-9.5% Yield on bonds 1.8%-3.0% 1.1%-2.2% 3.7%-4.8% 4.2%-5.3% Yield on equities 5.8% 6.0% 6.5% 7.0% Yield on real estate 4.5% 4.5% 5.1% 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 34

36 Life reserves with interest guarantee (in CHF billion) EU 5.9 Individual life % interest guarantee 1.75% interest guarantee CH 23.9 Group life 14.9 Other 5.7 Retirement 4.1 extra-mandatory assets 9.2 mandatory % of Swiss life reserves are subject to the BVG minimum interest rate 35

37 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 1.75%* ) - Conversion rate 6.80% At the discretion of the insurer Helvetia CH business volume Group life: CHF 2,630 million Individual life: CHF 944 million Helvetia CH 2012 market share : 10.0% Number 3 provider 2012: 12.0% Number 4 provider * ) As of 01/01/

38 Overview of net combined ratios (in %) CH DE IT ES AT FR Group *) ARI Claims ratio (net) Cost ratio (net) Combined Ratio Combined Ratio 2012** ) Change from * ) 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

39 Non-life technical account (in CHF million) Gross Share RE Net Gross Share RE Net Premiums earned 2, ,207 2, ,167 Insurance benefits -1, ,400-1, ,405 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) 62.9% 63.4% 63.6% 64.9% Cost ratio* ) 28.7% 30.2% 27.5% 28.8% Combined ratio* ) 91.6% 93.6% 91.1% 93.7% * ) Previous year s cost ratio respectively combined ratio restated due to first-time application of amended IAS 19 38

40 Investment result by business area (in CHF million) Life Non-life Other* ) Total /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 1,037 1, ,212 1, Unit-linked Income from financial assets and investment property 1,142 1, ,317 1, Direct yield 2.7% 2.9% 2.7% 2.8% 2.7% 2.8% Performance 1.7% 5.5% 2.3% 5.9% 1.9% 5.5% * ) Incl. elimination of intra-group interest and dividend income 39

41 Direct yield and performance (in CHF million) Current income Direct yield G/L Investment result Yield Unrealised G/L Total Yield Equities % % % Life % % % Non-life 3 3.2% % % Bonds % % % Life % % % Non Life % % % Investment property % % % Life % % % Non Life % % % Mortgages % % % Life % % % Non Life 3 2.3% % % 40

42 Group investment result compared to 2012 (in CHF million) ,178 1, Current G/L equities/ G/L G/L Currency Other 2013 income funds* ) bonds investment influence property * ) Also includes alternative investments and equity derivatives 41

43 Investment property By country By use 26% 5.1 bn 5.1 bn 74% 92.6% Austria (3.4%) Switzerland (92.6%) Germany (1.9%) Italy (0.5%) Spain (1.2%) France (0.4%) Residential Commercial 42

44 Direct yield in life business (in CHF million) Switzerland 2.5% 2.4% 2.3% 4.0% 4.2% 4.1% Bonds 13,312 14,761 14, Investment property 4,278 4,412 4, % 3.3% 3.3% 2.8% 2.7% 2.5% Equities Loans / Mortgages 3,862 4,009 4, EU 3.9% 3.7% 3.5% 4.0% 4.7% 3.5% Bonds 3,955 4,499 4, Equities

45 Equity exposure* ) vs market trends Equity index weighted according to exposure Equity exposure Equity exposure delta-adjusted Equity exposure after hedging 3.9% 3.8% 3.6% 3.6% 3.6% 3.2% 1.6% 1.3% 1.2% 3.9% 3.8% 1.6% 4.2% 4.5% 4.6% 4.8% 4.3% 4.3% 4.5% 4.0% 2.0% 2.0% 2.1% 2.1% 5.3% 5.2% 2.5% Equity index indexed as at 31/12/2011 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 * ) Equity exposure incl. group equity funds 44

46 Investments in original currency Switzerland EU 3% 1% 3% 10% CHF 29.9 bn 9.7 bn EUR USD Other 86% 97% (in CHF billion) Bonds Equities Investment Other CHF 58% % % % 10.3 EUR 38% % % % 1.5 USD 3% % 0.4 8% Other 1% 0.2 8%

47 Currency hedges vs currency trends FX EUR/CHF* ) FX USD/CHF* ) FX GBP/CHF* ) Level of currency hedging 76% 76% 75% 69% 69% 61% 85% 79% 72% 75% 73% 71% 71% 70% 68% 70% 63% 70% 66% 66% 67% 66% 65% 66% 66% 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 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 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 3.3 billion is hedged comprehensively and permanently The currency exposure is dominated by our exposure to the Euro. After an exchange rate target was set by the SNB, the Euro hedges were steadily reduced but kept at a certain level for security reasons. USD and GBP were mostly hedged. 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 31/12/

48 Bond credit ratings Sector allocation as at 31/12/2013 Risk profile of financials 3.6% 1.1% 12.5% 23.0 bn 44.6% 18.0% 27.6% 10.3 bn 49.7% AAA AA A < A Not rated 42.9% 0.5% Financials States/supranationals Corporates 26.0% 10.3 bn 25.8% 47.7% Secured Unsecured (straight bonds) Government guarantee Subordinated 47

49 Financial bonds by country of issuer's origin 1% 2% 3% 4% 6% 5% 6% 10.3 bn 34% The 10 largest counterparties make up around 39% of the Group's financial bonds portfolio and are distributed over the following categories: Mortgage bonds from various issuer 8% Swiss cantonal banks Supranational organisations 8% 9% 14% Switzerland (34%) Luxembourg (6%) Ireland (1%) Germany (14%) UK (5%) Other (6%) Austria (9%) Italy (4%) France (8%) USA (3%) Netherlands (8%) Australia (2%) 48

50 2% 1% 8% Corporate bonds by country of issuer's origin 5% 6% 2% 2% 3% 2.9 bn 33% The 10 largest counterparties make up around 44% of the Group's corporate bonds portfolio and are distributed over the following categories: Transport (public and private) Public health service Energy 12% 14% Utilities Telecommunication 12% France (33%) Austria (5%) UK (1%) Netherlands (14%) Germany (3%) Other (8%) Switzerland (12%) Australia (2%) USA (12%) Luxembourg (2%) Italy (6%) Norway (2%) 49

51 Government and supranational bond exposure Governments / supranationals Government bonds by country 8.9% 18.9% 9.8% (Dec 12 in brackets) 3% 3% (3%) (2%) 5% 3% (5%) (3%) 3% (3%) 5% (5%) 5% 9.9 bn (5%) 6.2 bn 62.4% 5% (6%) 6% (8%) 7% (8%) 19% (15%) 36% (37%) Country Regional authorities excl. countries / incl. cities Quasi-government enterprises Supranational banks Switzerland (36%) (AAA) Austria (5%) (AAA) Belgium (3%) (AA) Italy (19%) (BBB) Germany (5%) (AAA) Other (5%), of which: Luxembourg (7%) (AAA) Spain (3%) (BBB) 0.00% Greece(CCC) France (6%) (AA) Finland (3%) (AAA) 0.00% Portugal (BB) Netherlands (5%) (AAA) Slovakia (3%) (A) 0.00% Ireland (BBB) 50

52 Investment portfolio by IFRS category (in CHF billion) % 3.4 9% % Available for Sale (AFS) Loans and Receivables (LAR) % 39.6 bn Investment Property Trading / Derivates % Held to Maturity (HTM) 51

53 Durations Modified duration* ) Share in % Bonds (booked in life) Bonds (booked in non-life) 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. 52

54 Equity / comprehensive income (in CHF million) G/L recorded in equity CHF -90 million Comprehensive income CHF +274 million 4,050 4,131 3,831 Total equity as at 31/12/2012 Group profit for the period Unreal. G/L (net) Revalued pension benefit obligation Policyholder participation Deferred tax liabilities, net invest. hedge, FX translation Dividends Other Total equity as at 31/12/2013 Preferred securities Equity (without preferred securities) 53

55 Changes in unrealised gains/losses (in CHF million) Changes in fair value Gains/losses transferred to the income statement , Unrealised gains/losses on assets Equities Bonds 461 1, Other Total 821 1, Unrealised gains/losses (gross) as at 31/12/2012 Bonds Equities Other Unrealised gains/losses (gross) as at 31/12/

56 Unrealised gains/losses Breakdown between shareholders and policyholders (in CHF million) 137 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 100 1, Liabilities Equity Equity

57 Group solvency and sensitivities (1/2) (in CHF million) Solvency I 218% (reported) Sensitivity analysis 3, Hybrid capital Sensitivity Solvency I 1,710 NL: 386 2,025 Equities Interest rates Credit Spreads* ) -30% -100 bp +100 bp -16% pts. -20% pts. -10% pts. 227% 218% L: 1, Required capital Surplus cover Available capital * ) Contains corporate spreads and sovereign spreads for PIIGS countries 56

58 Group solvency and sensitivities (2/2) Solid capitalisation under SST Update on model approval process Approval process is on track and proceeding as planned Sensitivity analysis (in CHF million) Equities -30% Interest rates -100 Bp Credit Spreads +100 Bp SST -9% pts. -13% pts. -23% pts. SST coverage ratio For the end of H coverage ratio within the range 150% to 200% 0% 80% 100% 150% 200% 57

59 Retroactive restatement due to IAS 19 (in CHF million) Effect due to IAS 19 Equity -109 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. Further effects within the reporting period due to first time application of additional changes and amendments (without restatement): Introduction of new mortality tables Amendment to the pension and supplementary fund regulations 58

60 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 7.5 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. 59

61 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 2013 *** ) Roland Bentele as of 1 st April

62 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 Luxembourg 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% 61

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

64 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)