Analysts conference call 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 2
Disclaimer No statements made herein regarding earnings enhancements or otherwise are profit forecasts, and no statements made herein should be interpreted to mean that Swiss Re s earnings or earnings per share for 2006, 2007 or any subsequent period will necessarily match or exceed the historical published earnings per share of Swiss Re. This announcement does not constitute an offer to sell or the solicitation of an offer to subscribe or purchase any of the securities described herein in Switzerland, in the United States or in any other jurisdiction. Any such offer would be made by means of a prospectus or offering memorandum in compliance with applicle securities laws, which prospectus or offering memorandum would contain detailed information out Swiss Re, its business and operations and its management, and the proposed acquisition, as well as financial statements. Any securities of Swiss Re to be offered and sold in the United States will not be registered under the U.S. Securities Act of 1933 and will not be offered and sold in the United States except on the basis of applicle exemptions from registration. Any such securities will, subject to exceptions, not be offered in Canada or Japan or to or for the benefit of any national, resident or citizen of Canada or Japan. This presentation is intended for distribution in the United Kingdom only to (a) persons who have professional experience in matters relating to investments falling within Article 19 of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order) or (b) high net worth entities, and other persons to whom it may otherwise be communicated, falling within Article 49(1) of the Order (all such persons being referred to as relevant persons). This document must not be acted upon by persons who are not relevant persons. Page 3 Agenda Introduction Ann Godbehere Stefan Lippe Michel Liès Questions & answers Ann Godbehere Michel Liès Stefan Lippe Appendix Page 4
Overall volume exceeds CHF 9.3bn and renewed portfolio increases 8% Total traditional portfolio % CHF 9.2bn CHF 9.3bn 60% 40% 20% 0% Total renewle 01.01.06-4% -18% Cancelled or replaced 78% Renewed 6% This represents 8% increase on the renewed block, comprising: Rates 1% Change in share 3% Exposure growth 4% Increase on renewal 13% 4% 101% New business/ replacement Estimated outcome Rate changes are pure improvements of quality of our book Increased loss expectancy and claims inflation are included in exposure growth All renewal figures are estimated and calculated at constant foreign exchange rates Page 5 Products Stefan Lippe Head of Products Page 6
Profitility further increased in 2006 Improvement in economic profit on renewed book approximately 7% Higher profitility achieved despite higher modelled claims expectancy in nat cat and casualty Premium volume increased by 1% to CHF 9.3bn despite higher client retentions and shift to higher layers Preferred terms and conditions for AA balance sheet achieved Three guiding principles quality, quality, quality Page 7 Our AA strength is rewarded Page 8 Private layers ( shares) obtained in most markets Clients prepared to compensate Swiss Re with a lead fee or reduced commissions In many cases cedants approach Swiss Re directly whereas other reinsurers participate through intermediaries Some intermediaries reduce their commissions in order to have Swiss Re participate More effective exclusion clauses and sub-limits Waiving of downgrade and special funding clauses
Treaty business profitility increased Proportional Achieved price as % of technical reference price % Non-proportional Achieved price as % of technical reference price % Total Property Liility Motor Specialty Total Property Liility Motor Specialty Total 2005 2006 2005 2006 Page 9 Liility shows benefit of more selective underwriting Motor reflects fall in original rates but still at technical reference price Offshore marine in the Gulf of Mexico renews mainly on 1 April Property shows impact of nat cat increases from already high levels Liility reflects higher risk capital and lower interest rates Motor challenged to maintain adequacy in light of lower interest rates and higher risk charges more details in appendix Very attractive underwriting conditions Property proportional Property non-proportional 135 125 115 105 Profitility maintained at high levels 190 180 170 160 150 140 Hurricanes sharply reversed declining trend Liility proportional Motor non-proportional 150 145 140 135 125 115 105 Highly selective underwriting and focus on more profitle business 140 135 125 115 105 95 90 Higher nominal rates achieved only partially compensated for lower interest rates and higher risk charges Page 10 Nominal rates per unit of exposure more details in appendix
Significant hardening in nat cat market Tight retrocession market positive for net writers New capital had negligible impact Increases of often achieved for US hurricane exposures Offshore energy increases over plus improved terms and conditions majority of Gulf of Mexico risks only renew in April Swiss Re s rate adequacy measures are fully risk and capital adjusted and relate to actual modelled exposures Page 11 but US nat cat represents only 3% of January renewals more details in appendix Client Markets Michel Liès Head of Client Markets Page 12
January renewals are dominated by Europe 6 000 CHF millions 5 000 4 000 3 000 2 000 1 000 0 Europe expiring renewed Americas expiring renewed Asia expiring renewed Risk Solutions expiring renewed Credit Solutions expiring renewed Property proportional Property non-proportional Liility Motor Specialty Credit & Surety Page 13 Total: CHF 9.3bn Europe 57% Americas 18% Asia 11% Risk Solutions 5% Credit Solutions 9% Continued to shape book towards most profitle segments Europe renewed more than CHF 5bn of treaty premium in January, mainly in property and motor Weighting of non-proportional covers has increased slightly from 34% to 35% Firm stance maintained on pricing Reduced position in more volatile segments CHF m Property Property Liility Motor Specialty C&S Total proportional non-proportional Growth -6% 25% -16% -3% 6% 12% 1% Premiums expiring 1 760 1 380 1 600 1 740 1 960 775 9 215 Premiums 2006 1 650 1 720 1 340 1 690 2 075 865 9 340 Split of renewed book Page 14 Total: CHF 9.3bn Property proportional 18% Property non-proportional 19% Liility 14% Motor 18% Specialty 22% Credit & Surety 9% Swiss Re remained disciplined on pricing and declined business where price was unsatisfactory, especially in liility and motor Achieved pricing is in excess of target renewal premiums Profitility on the new book better than expiring business, in spite of raising the bar (models and lower interest rates) The swing from marginally profitle liility to property was most marked in the US
57% Europe Book stle at high profitility levels CHF millions 6 000 5 000 4 000 3 000 2 000 1 000 0 Europe expiring Europe renewed Growth Premiums 2006 Specialty 5% 1 230 Motor -5% 1 440 Liility -11% 520 Property non-proportional 22% 965 Property proportional -6% 1 145 Total 0% 5 300 90% of Europe s treaty book renews in January Higher client retentions in all lines Property proportional: small loss in volume over-compensated by increased bottom-line Property non-proportional benefited from increased rates; most pronounced increase in profitility Cut liility with marginal profitility; terms and conditions remain firm Maintained margins in motor despite declining original rates and lower interest rates Page 15 more details in appendix 18% Americas Volatility reduced and profitility increased CHF millions 2 500 2 000 1 500 1 000 500 0 Americas expiring Americas renewed Growth Premiums 2006 Specialty -6% 605 Motor -43% 20 Liility -30% 490 Property non-proportional 34% 315 Property proportional -18% 245 Total -13% 1 675 44% of Americas treaty book renews in January Property saw significantly improved profitility in particular in accounts which experienced losses in 2005; continuing upwards trend is expected Property volumes increased despite higher attachment points, shift to higher layers and strong resistance to our rates in the broker market Cut US casualty business and price adequacy improved Page 16 more details in appendix
11% Asia Renewals achieve excellent 23% growth CHF millions 1 200 1 000 800 600 400 200 0 Asia expiring Asia renewed Growth Premiums 2006 Specialty 66% 240 Motor 18% 230 Liility 0% 65 Property non-proportional 23% 190 Property proportional 8% 260 Total 23% 985 Page 17 49% of Asia s treaty book renews in January, predominantly in emerging markets Further inroads in China achieved Remaining 2006 renewals are predominantly in the mature markets of Japan and Australia Growth is driven by proportional business ceded by newly formed insurance companies who typically need this kind of product Overall terms and conditions are stle, competition happens mainly on premiums more details in appendix 5% Risk Solutions Attractive opportunities push volume up 14% CHF millions 600 500 400 300 200 0 Risk Solutions expiring Risk Solutions renewed Growth Premiums 2006 Liility 6% 265 Property non-proportional 25% 250 Total 14% 515 Business written between October and January account for 39% of renewle portfolio Property: Hurricane events reduced market capacity for nat cat. Selective underwriting approach to allocate capacity to most profitle segments Liility: Successful business retention at satisfactory levels; competitive pressures can be felt stronger in Europe than in the US, especially in general liility Strict underwriting secured balanced portfolio mix exceeding technical targets Page 18 more details in appendix
9% Credit Solutions January renewals achieve 12% growth CHF millions 1 000 800 600 400 200 0 Credit Solutions expiring Credit Solutions renewed Growth Premiums 2006 Credit & Surety 12% 865 92% of credit & surety book renews in January Significant growth achieved despite increased client retentions and market capacity Terms and conditions generally stle Proactive portfolio and risk management: continued hedging strategy securitisation (Crystal Credit) Swiss Re s leading position in key clients and market segments further strengthened Robust credit environment expected to continue throughout the year resulting in strong earnings Page 19 more details in appendix Outlook Swiss Re has stilised at a strong profitility level Market conditions are still excellent Remaining 2006 renewals will benefit from capacity constraints Swiss Re enjoys preferred position in attractive market Swiss Re s strategy remains: maintain focus on solute economic profit continue to achieve better terms and conditions compared to the market average show leadership in maintaining price discipline Page 20 Expected to translate to a published combined ratio below 95%
Questions & answers Page 21 Appendix Page 22
Total treaty business Overall volume stle and 6% increase on renewed portfolio Traditional treaty portfolio % CHF 8.0bn CHF 8.0bn 60% 40% 20% 0% Total renewle 01.01.06-4% -19% Cancelled or replaced 77% Renewed 5% This represents 6% increase on the renewed block, comprising: Rates 1% Change in share 2% Exposure growth 3% Increase on renewal 14% 4% New business/ replacement Estimated outcome Rate changes are pure improvements of quality of our book Increased loss expectancy and claims inflation are included in exposure growth All renewal figures are estimated and calculated at constant foreign exchange rates Page 23 Treaty business overall profitility increased Split of renewed book CHF m Property Liility Motor Specialty Total Growth 6% -20% -3% 6% 0% Premiums expiring 2 940 1 350 1 740 1 960 7 990 Premiums 2006 3 1 075 1 690 2 075 7 960 Property 39% Liility 14% Motor 21% Specialty 26% % Achieved price as % of technical reference price 2005 2006 Page 24 Property Liility Motor Specialty Total Price adequacy on risk adjusted basis increased, despite higher modelled claims expectancy
Proportional treaty business remains attractive Motor: Decrease in rates in the direct market Property 135 125 115 105 Liility 150 145 140 135 125 115 105 Motor Total 125 125 115 115 105 105 Page 25 Source: Swiss Re P&C treaty portfolio (nominal rates per unit of exposure) Non-proportional treaty business increases profitility Liility: Profitility stilised at high level despite downward pressure in original rates Property 190 180 170 160 150 140 Liility 170 160 150 140 Motor Total 140 135 125 115 105 95 90 170 160 150 140 Page 26 Source: Swiss Re P&C treaty portfolio (nominal rates per unit of exposure)
Major programme restructuring Page 27 Cat rating example: US hurricane Rate on line Layers 2005 2006 Retention 150 200 xs 150 20% 200 xs 350 13% 350 xs 550 8% Total capacity 900 Retention 350 xs 350 30% 150 xs 450 22% 200 xs 600 17% 400 xs 800 12% Total capacity 0 Most larger clients have restructured their programmes by increasing retentions and buying higher layers. This means that the higher RoL at the lower layers are replaced by lower RoL on the higher layers. Average rate on line comparisons across the whole portfolio are therefore meaningless. Swiss Re's rate adequacy measures are much more helpful in assessing changes in risk adjusted returns, after cost of capital. 57% Europe Book stle at high profitility levels Traditional treaty portfolio % CHF 5.3bn CHF 5.3bn -4% 83% 3% 10% 4% -13% 60% 40% 20% This represents 4% increase on the renewed block, comprising: Rates 1% Increased shares 1% Exposure growth 2% Page 28 0% Total renewle 01.01.06 Cancelled or replaced Renewed Increase on renewal New business/ replacement All renewal figures are estimated and calculated at constant foreign exchange rates Estimated outcome
18% Americas Volatility reduced and profitility increased Traditional treaty portfolio % CHF 1.9bn CHF 1.7bn 60% 40% 20% -1% -32% 67% 8% This represents 12% increase on the renewed block, comprising: Rates 3% Increased shares 8% Exposure growth 1% 11% 1% 87% Page 29 0% Total renewle 01.01.06 Cancelled or replaced Renewed Increase on renewal New business/ replacement All renewal figures are estimated and calculated at constant foreign exchange rates Estimated outcome 11% Asia Renewals achieve excellent 23% growth Traditional treaty portfolio 140% % CHF 0.8bn 38% CHF 1.0bn 5% 123% -5% 65% 15% 60% 40% 20% -30% This represents 23% increase on the renewed block, comprising: Rates 2% Exposure growth 21% Page 30 0% Total renewle 01.01.06 Cancelled or replaced Renewed Increase on renewal New business/ replacement All renewal figures are estimated and calculated at constant foreign exchange rates Estimated outcome
5% Risk Solutions Attractive opportunities push volume up 14% Traditional re-/insurance business 140% % CHF 0.4bn CHF 0.5bn 25% 114% 60% 40% 20% -19% 81% 8% This represents 10% increase on the renewed block, comprising: Rates 2% Decreased shares -1% Exposure growth 9% Page 31 0% Total renewle October 05 January 06 Cancelled or replaced Renewed Increase on renewal New business/ replacement All renewal figures are estimated and calculated at constant foreign exchange rates Estimated outcome 9% Credit Solutions January renewals achieve 12% growth Traditional re-/insurance business 140% CHF 0.8bn CHF 0.9bn % -2% 98% 12% 2% 112% 60% This represents 12% increase on the renewed block, comprising: Increased shares 10% Exposure growth 2% 40% 20% Page 32 0% Renewle based on 2005 Cancelled or replaced Renewed Increase on renewal New business All renewal figures are estimated and calculated at constant foreign exchange rates Estimated outcome