Analysts conference call Agenda Introduction Ann Godbehere Stefan Lippe Michel Liès Outlook Questions & answers Ann Godbehere All Appendix Page 2
Highly successful renewal for Swiss Re Swiss Re s renewed portfolio increased 14% (incl. Insurance Solutions) with rates up 1% overall growth in economic profit of 21% 75% of Insurance Solutions non-life book retained to date (70% in January 2007 renewals, 91% in July 2006 renewals) Continuing attractive market conditions with industry focused on return on capital employed Page 3 Overall volume increased 14% with rates up 1% Total traditional portfolio CHF 9.0bn % 4% CHF 10.3bn 60% 40% 20% 0% -4% Total Pending renewle 01.01.2007-20% Cancelled or replaced 76% Renewed Increase on renewal 4% 16% 14% This represents 6% increase on the renewed block, comprising: Rates 1% Change in share 3% Exposure growth 2% New Insurance business/ Solutions replacement 114% Pending Estimated outcome Rate changes are pure improvements of quality of our book Changes to loss expectancy and claims inflation are included in exposure growth All renewal figures are estimated and calculated at constant foreign exchange rates Page 4
Products Stefan Lippe Head of Products Page 5 High profitility levels further increased in 2007 Swiss Re le to renew very profitle enlarged book (CHF 10.3bn) despite undance of capacity All markets reflect trend seen last year towards higher client retentions due to better capital position and strong profitility levels Market is showing some signs of softening but Swiss Re successfully renewed portfolio with further increase in profitility of 1% Page 6
Raised quality to Swiss Re standards and still exceeded target retention on IS book Total treaty portfolio Insurance Solutions 60% 40% 20% 0% CHF 1.8bn -3% Total Pending renewle 01.01.2007-23% -10% -18% Business Rewritten not retained business 46% 2% Renewed Increase on renewal All renewal figures are estimated and calculated at constant foreign exchange rates 19% New business/replacement 3% This represents 4% increase on the renewed block, comprising: Rates 2% Change in share 4% Exposure change -2% CHF 1.3bn 70% Pending Estimated outcome IS business not retained includes CHF 170m (10%) withdrawn by Swiss Re (mainly Inwards Cat Retro) Excluding withdrawn covers retention ratio for January was 78% Page 7 75% of renewle IS business retained to date exceeding target Retention ratio of non-life treaty business in January renewals was 70%; including the July 2006 renewals, 75% of the treaty business retained (CHF 2.0bn) Excluding certain portfolios withdrawn by Swiss Re (mainly Inwards Cat Retro) the January retention ratio was 78% Excluding the ove mentioned withdrawn covers the overall retention ratio to date was 81% Main reasons for business not renewed were inadequate prices and broader terms and conditions On a number of treaties where both Swiss Re and IS participated clients reduced the combined share in accordance with their limits this was more than compensated by new business Page 8
Treaty business profitility further increased Proportional Achieved price as % of technical reference price Non-proportional Achieved price as % of technical reference price % Total % Property Liility Motor A&H Specialty Total Property Liility Motor A&H Specialty Total 2006 2007 2006 2007 Property affected by some softening but rates Property again benefited from excellent price levels remain at strong price levels for large programmes and cat business in the US as well as higher interest rates Liility reflects increasing pressure on rates compensated by higher interest rates Liility affected by some early cycle pressure Motor virtually unchanged with prices at solid levels which is more than offset by higher interest rates Motor achieved higher margins to reflect volatility A&H showed slight margin reduction A&H saw stle margins at very favourle levels Specialty maintained margins at high levels Specialty reflects profit growth in Marine and Engineering and a slight reduction in Aviation Page 9 * Specialty includes Marine, Engineering, and Aviation lines Favourle conditions prevail Property proportional Property non-proportional 135 125 115 105 190 Overall attractive 180 170 rate levels but 160 non-cat exposed 150 portfolios with some rate reductions 2006 price levels maintained on average Liility proportional Motor non-proportional 150 145 135 125 115 105 Highly selective underwriting; focus on profitle business; margins flat due to higher interest rates 135 125 115 105 95 90 Price increases reflect recent claims developments Page 10 Source: Swiss Re P&C treaty portfolio (nominal rates per unit of exposure) more details in appendix
Key takeaways Fourth year in succession that Swiss Re has maintained quality at peak levels Despite some market softening, profitility of Swiss Re portfolio further increased All business was rated on common tools 14% growth from IS at same quality as Swiss Re Shares lost due to client limits more than compensated by new business from IS clients Page 11 Exceeded retention target without compromising quality; rates for Swiss Re increased Client Markets Michel Liès Head of Client Markets Page 12
January renewals represent 67% of Swiss Re s traditional book 8 000 6 000 CHF millions +8% 4 000 2 000 +36% +22% +3% 0 Europe expiring renewed Americas expiring renewed Asia expiring renewed Credit Solutions expiring renewed Property proportional Property non-proportional Liility Motor A&H Specialty Credit & Surety Total: CHF 10.3bn Europe 59% Americas 22% Asia 10% Credit Solutions 9% Weighting of non-proportional covers increased from 35% to 36% Profitle growth achieved through successful integration of IS book Page 13 Strongest growth in most profitle lines of business CHF millions Property Property Liility Motor Accident Specialty Credit & Total proportional non-proportional & Health Surety renewed Growth 17% 26% 13% 14% -24% 22% 3% 14% Premiums expiring ( old SR) 1 740 1 580 1 210 1 635 695 1 245 940 9 045 Premiums 2007 (total) 2 040 1 990 1 370 1 860 530 1 515 965 10 270 Split of renewed book Profitility on the 2007 book further increased (1% on Swiss Re book and 2% on IS book) Growth in estimated economic profit of 21% Terms and conditions generally stle Page 14 Total: CHF 10.3bn Property proportional 20% Property non-proportional 19% Liility 13% Motor 18% Accident & Health 3% Specialty 18% Credit & Surety 9%
Growth in Specialty lines creating diversification and earnings expansion CHF millions Marine Engineering Aviation Other lines Total (treaty business only) renewed Growth 40% 20% 18% -15% 22% Premiums expiring 450 490 195 1 245 Premiums 2007 630 590 165 1 515 Split of renewed book Page 15 Total: CHF 1.5bn Marine 42% Engineering 39% Aviation 8% Other 11% Strong Marine growth reflects the sizele IS portfolio in Europe and new business in the Americas Engineering growth mainly driven by Europe, new business and solid underlying market conditions Aviation growth (treaty only) due to successful integration of IS business, but reduced shares in view of market softening. Airline facultative business significantly reduced by more than 25% in Q4 2006 59% Europe Combined book successfully consolidated 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Page 16 CHF millions Europe expiring Europe renewed Growth Premiums 2007 Specialty 13% 1 080 A&H -2% 215 Motor 9% 1 540 Liility -1% 655 Property non-proportional 9% 1 255 Property proportional 7% 1 325 Total 8% 6 070 84% of Europe s treaty book renews in January Stronger client balance sheets led to higher retentions Property large cat programmes stle with softer rates mainly for smaller regional programmes and non-cat business Liility reduced for pricing reasons Motor saw strong renewals in Germany and UK, reduction in France A&H affected by higher client retentions Specialty growth in Marine and Engineering IS portfolios successfully integrated; 67% retention ratio reflects Swiss Re s already high market penetration more details in appendix
22% Americas Renewals dominated by strong demand for cat capacity CHF millions 2 500 2 000 1 500 1 000 500 0 Americas expiring Americas renewed Growth Premiums 2007 Specialty 76% 305 A&H -34% 255 Motor 40 Liility 31% 635 Property non-proportional 95% 615 Property proportional 70% 400 Total 36% 2 250 Page 17 46% of America s treaty book renews in January All lines of business experienced significant increase in client retentions Property non-proportional saw very profitle price levels more than compensating for increased retentions Liility experienced some price softening; Swiss Re selectively renewed A&H affected by higher client retentions Specialty shows strong growth in Marine and Engineering Americas benefits from a complementary IS book with an excellent 87% retention ratio more details in appendix 10% Asia Strong growth in emerging markets 1 200 1 000 800 600 400 200 0 CHF millions Asia expiring Asia renewed 52% of Asia s treaty book renews in January, predominantly in emerging markets Successful renewal of profitle business in China (mainly Motor) and in Australia/New Zealand IS Asian book very small Growth Premiums 2007 Specialty 24% 180 A&H -33% 10 Motor 40% 280 Liility 23% 80 Property non-proportional 4% Property proportional 19% 315 Total 22% 985 Page 18 more details in appendix
9% Credit Solutions Leading position in key clients and market segments further consolidated CHF millions 1 000 950 900 850 800 Credit Solutions expiring Credit Solutions renewed Growth Premiums 2007 Credit & Surety 3% 965 89% of credit & surety book renews in January Favourle renewal outcome despite rise in availle capacity and increased client retentions Terms and conditions generally stle Some softening expected for the credit environment but earnings levels remain strong Proactive portfolio and risk management by means of hedging and securitisation (Crystal Credit) Page 19 Outlook Ann Godbehere Chief Financial Officer Page 20
Florida Hurricane Catastrophe Fund On 22 January 2007 the Florida Legislature increased the Florida Hurricane Catastrophe Fund (FHCF), providing up to USD 19bn of additional coverage For Swiss Re less than CHF 150 million of Florida hurricane premiums are at risk less than 0.5% of Swiss Re's total premiums Swiss Re believes that the private (re)insurance market can provide long term solutions to natural catastrophe risk Page 21 Outlook Page 22 Market conditions remain excellent across most lines of business as reinsurance industry focused on return on capital employed Swiss Re enjoys preferred position with better-than-average pricing and preferred terms & conditions Focus on delivering economic profit growth through strict underwriting discipline and active shifting of capacity between lines and regions Future nat cat renewals will be impacted by Kyrill and recent developments in Florida Expected to translate into published combined ratio below 95%
Questions & answers Page 23 Appendix Page 24
Rates up 1% and CHF 9.0bn premiums renewed on old Swiss Re Total traditional portfolio CHF 9.0bn -4% -20% 4% 16% 4% CHF 9.0bn 60% 40% 20% 76% This represents 6% increase on the renewed block, comprising: Rates 1% Change in share 3% Exposure growth 2% 0% Total Pending Cancelled Renewed Increase New renewle or on business/ 01.01.2007 replaced renewal replacement All renewal figures are estimated and calculated at constant foreign exchange rates Page 25 Pending Estimated outcome Rate changes are pure improvements of quality of our book Changes to loss expectancy and claims inflation are included in exposure growth Proportional treaty business reflects some rate erosion in direct markets Some pressure on rates, largely compensated by higher interest rates Property 135 125 115 105 Liility 150 145 135 125 115 105 Motor Total 125 115 125 115 105 105 Page 26 Source: Swiss Re P&C treaty portfolio (nominal rates per unit of exposure)
Non-proportional treaty business further increases profitility Margins flat or increasing, supported by higher interest rates Property 190 180 170 160 150 Liility 170 160 150 Motor Total 135 125 115 105 95 90 190 180 170 160 150 Page 27 Source: Swiss Re P&C treaty portfolio (nominal rates per unit of exposure) 59% Europe Rates up 1% and IS successfully consolidated Traditional portfolio CHF 5.6bn -4% -16% 0.4% 14% 9% 4% CHF 6.1bn 60% 40% 20% This represents 1% increase on the renewed block, comprising: Rates 1% Change in share 0% Exposure growth 0% 108% 0% Total Pending renewle 01.01.2007 Cancelled or replaced Renewed Increase on renewal New business/ replacement Insurance Solutions Pending Estimated outcome Page 28 All renewal figures are estimated and calculated at constant foreign exchange rates
22% Americas Rates up 2% in renewals dominated by strong demand for cat capacity Traditional treaty portfolio % 4% CHF 2.3bn Page 29 % 60% 40% 20% 0% CHF 1.7bn -4% Total Pending renewle 01.01.2007-45% Cancelled or replaced 51% Renewed 4% 32% 45% This represents 8% increase on the renewed block, comprising: Rates 2% Change in share -1% Exposure growth 7% Increase on New business/ Insurance Solutions renewal replacement All renewal figures are estimated and calculated at constant foreign exchange rates Pending 136% Estimated outcome 10% Asia Rates up 1% and strong growth in emerging markets Traditional treaty portfolio % 3% 2% 1% CHF 1.0bn CHF 0.8bn -1% -15% 32% 60% 40% 84% This represents 38% increase on the renewed block, comprising: Rates 1% Change in share 29% Exposure growth 10% 122% 20% 0% Total Pending renewle 01.01.2007 Cancelled or replaced Renewed Increase on New business/ Insurance Solutions renewal replacement Pending Estimated outcome Page 30 All renewal figures are estimated and calculated at constant foreign exchange rates
Cautionary note on forward-looking statements Certain statements and illustrations contained herein are forward-looking. These statements 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, performance, achievements or prospects to be materially different from any future results, performance, achievements or prospects expressed or implied by such statements. Such factors include, among others: the impact of future investments, acquisitions or dispositions, and any delays, unexpected costs or other issues experienced in connection with any such transaction, including the ility to efficiently and effectively integrate the GE Insurance Solutions operations into our own; cyclicality of the reinsurance industry; changes in general economic conditions, particularly in our core markets; uncertainties in estimating reserves; the performance of financial markets; expected changes in our investment results as a result of the changed composition of our investment assets or changes in our investment policy; the frequency, severity and development of insured claim events; acts of terrorism and acts of war; mortality and morbidity experience; policy renewal and lapse rates; changes in rating agency policies or practices; the lowering or withdrawal of one or more of the financial strength or credit ratings of one or more of our subsidiaries; changes in levels of interest rates; political risks in the countries in which we operate or in which we insure risks; extraordinary events affecting our clients, such as bankruptcies and liquidations; risks associated with implementing our business strategies; changes in currency exchange rates; changes in laws and regulations, including changes in accounting standards and taxation requirements; and changes in competitive pressures. These factors are not exhaustive. We operate in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Page 31 Corporate calendar 1 March 2007 Annual results 2006, Analysts meeting 3 April 2007 Life & Health Embedded Value 2006 20 April 2007 143rd Annual General Meeting 8 May 2007 First quarter 2007 results Page 32
Investor Relations contacts Hotline +41 43 285 4444 Susan Holliday +41 43 285 6516 Andreas Leu +41 43 285 5603 Rolf Winter +41 43 285 9673 E-mail investor_relations@swissre.com Page 33