Swiss Re Leading Global Re/InsurerSwiss Re Group | Company presentation | April 2020 We monetise our R&D capabilities, cementing Swiss Re as the leading knowledge company 14 Market

Swiss Re – Leading Global Re/InsurerCompany presentation as of April 2020

Swiss Re Group | Company presentation | April 2020

Swiss Re – Leading Global Re/Insurer

2

Capital Management

page 19

P&C and L&H Reinsurance

page 28

Corporate Solutionspage 40

Overview and Group Strategy

page 4

Life Capitalpage 47

Asset Management

page 53

Global Re/Insurance & Protection Gap

page 61

Swiss Re Group | Company presentation | April 2020 3

Group financial targets

over-the-cycle

A truly global reinsurer1…

…strongly diversified2

1 2019 net premiums earned by region, incl. fee income 3 10-year outlook: 5% for P&C reinsurance and 4% for L&H reinsurance; source: Swiss Re Institute 2019 5 92% of credit bonds are investment grade rated 7 Economic Net Worth 2 2019 Economic Net Worth by segment, excl. Group items 4 As of 1/2020 6 Average 2015-2020

47%

31%

22%

EMEAAmericas Asia

32%

48%

7%

13%

Life Capital

P&C Re Corporate Solutions

L&H Re

RoE ≥ risk free

+700bps

ENW7 per share growth

+10% p.a.

Profitable long-term growth opportunities • Reinsurance market growth of 4-5%3 p.a.

• No 1 reinsurer in High Growth Markets

• Life Capital open book 2015-19 GPW CAGR of 30%

• Corporate Solutions focusing on restoring profitability

Financial strength and defensive profile • Group SST ratio of 232%4, well above target level of 220%

• Capital strength remains resilient to market movements

• AA- S&P credit rating, A.M. Best A+

• Strong diversification benefit

• Low investment risk5

Sector-leading capital management • Net solvency capital generation of USD 1.8bn6

• Capital repatriation CAGR of 10% over 2012-2019

• Disciplined M&A strategy and organic deployment

• Share buybacks of USD 4.1bn executed since FY 2015

Swiss Re Group | Company presentation | September 2018

Financial highlights

4

Overview and Group Strategy


Swiss Re Group at a glance

Commercial insurance arm of the Group and provides risk transfer solutions to large and mid-sized corporations around the world

Offers traditional reinsurance products, insurance-based capital market instruments and risk management services globally through two segments – Property & Casualty and Life & Health

Manages life and health insurance books, providing alternative access to the life and health risk pool, helping to generate stable returns

1 As of 1/20202 As of 8 April 2020

Reinsurance Corporate Solutions Life Capital

Swiss Re is a leading and highly diversified global re/insurer, founded in Zurich (Switzerland) in 1863

• Swiss Re Group’s Swiss Solvency Test Ratio for 2020 is 232%1

• Financial strength2 of the Swiss Re Group is currently rated: Standard & Poor’s: AA- (stable); Moody’s Aa3 (stable); A.M. Best: A+ (stable)

• AAA sustainability rating from MSCI (July 2019)

5


Based on three differentiation drivers, we have built leading insurance businesses

6

Reinsurance Corporate Solutions Life Capital

Foundation of our strength with increasing earnings power

Returning to profitability and focused on competitive advantages

Transitioning to a digital B2B2C player

Client Access

RiskKnowledge

CapitalStrength


Our client access capabilities are unique

7

We maintain strong direct relationships with our reinsurance clients…

Client employees

Swiss Re employees

APAC

Americas

EMEA

of premiums from non-intermediated business

P&C Re

>50%L&H Re

>90%

…while also partnering with non-insurance players for innovative B2C insurance propositions

Swiss Re is a trusted partner for insurance and non-insurance companies

Partner industriesSwiss Re units

Corporate Solutions

Reinsurance

Life Capital

...

OEM

Real estate

Technology

Finance

...

Others

Current discussions with

>100 non-insurance partners

Illustrative – Partnership portfolioIllustrative – Global client


We operate a truly global and diversified Group

8

Premiums per country1

USD 0

>175 million family members supported

through L&H Re

>150countries

Swiss Re’s global access to risks and diversified earnings generation is exceptional in the insurance industry

USD >3bn

«We make the world more resilient»

Americas EMEA Asia

>100 000P&C clients supported

EVM1

US GAAP2

USD 22bnUSD 18bn

USD 21bnUSD 12bn

USD 14bnUSD 8bn

Premiums

1 EVM premiums and fees, FY 20192 US GAAP net premiums earned (including fee income from policyholders), FY 2019


2019 reported Group net income

USD 727m

US casualty impact on P&C Reinsurance

Proactive measures to address ongoing US casualty market

trends

Corporate Solutions turnaround

Decisive management actions and pronounced increase in

US casualty claims

Elevatednat cat losses

Multiple nat cat events and late reported losses on

Typhoon Jebi

Excellent investment result

Strong equity and fixed income performance and SulAmérica divestment

Main elements driving the Group’s 2019 results


Swiss Re’s strong economic earnings track record 2015-2019

10

Total contribution to ENW forms the basis for Swiss Re’s attractive capital management actions

EVM profit new business

EVM profit previous years’ business

EVM profit investments

EVM profitEconomic value is created if total economic return generated for shareholders is aboveexpected total return for taking risk (capital costs)

Capital cost release, debt costs and taxIncludes base cost of capital(risk-free return and market risk premium) and frictional capital costs

Total contribution to ENW

Represents total economic return generated for shareholders

(economic earnings) and is the key element of gross excess capital

generation

USD 419mavg. 2015 -2019

USD -582mavg. 2015 -2019

USD 396mavg. 2015 -2019

USD 232mavg. 2015 -2019

USD 2 742mavg. 2015 -2019

USD 2 974mavg. 2015 -2019


ENW per share growth vs. total shareholder return1

2

EVM results represent the market relevant information aligned with total return to shareholders

1 Reflects share price development and dividends paid in USD; indexed at year-end 2005 and shown on a cumulative basis to 28 February 20202 Calculated as: (current-year closing ENW per share + current-year dividends per share) / (prior-year closing ENW per share + current-year opening balance sheet adjustments per share); shown on a cumulative basis and indexed

from 31 December 2005

ENW per share vs. share price development

Total shareholder returnENW per share growth2

70

80

90

100

110

120

130

Swiss Re share price (CHF) ENW per share (CHF)

0%

50%

100%

150%

200%

250%

300%

2005 2007 2009 2011 2013 2015 2017 201970

80

90

100

110

120

130

2013 2014 2015 2016 2017 2018 2019

Swiss Re’s total shareholder return is best tracked by ENW developments


Swiss Re’s capital repatriation remains peer-leading

Dividends and share buyback per share (CHF, CAGR in %)

1

1 In light of the current volatility in the financial markets and global economic situation precipitated by the COVID-19 pandemic, at its post-AGM meeting the Board of Directors concluded that the proposed share buyback programme for 2020 will not be launched. The 0.60 CHF per share for 2020 reflects the last portion of the 2019/2020 share buyback completed in February 2020

Swiss Re maintained its very strong capital position and is well positioned to respond to market opportunities while continuing to focus on its capital management priorities

12

3.00

3.50 3.85 4.25 4.60 4.85 5.005.60 5.90

4.004.15

4.40 3.303.40

4.20 3.10

0.60

20172014

8.00

2012 20152013 20182016 2019 2020

8.258.70

7.50

8.65

7.90

9.20

6.50

+10%

Ordinary dividends Special dividends and share repurchases

1


Value creation with increasing book value and paid dividends

Book value per share and accumulated paid dividends (CHF, CAGR in %)

87.76 82.76

101.12 96.04107.64 103.37

91.72 97.46

10.50

18.50 25.75

30.35 35.20

40.20

45.80

3.00

2012 201820162013 2014 20172015 2019

90.76 93.26

119.62 121.79

137.99 138.57131.92

143.26+7%

Accumulated paid dividendsBook value per share

13


We monetise our R&D capabilities, cementing Swiss Re as the leading knowledge company

14

Market intelligence

R&D value driver framework Strategic focus areas

450 R&D FTEs

13R&D teams

80R&D programmes

Business steering

Capitalallocation

Commer-cialisation

Risk selectionand pricing

Efficiency

Project examples

Advance Nat Cat risk view Chinese cancer research

Insurance markets and cycle analysis Macroeconomic R&D

MagnumLife Guide

Nat Cat pricing toolsRisk engineering services

Analytics for contract wordingGroup data integration

Insurance beta

Insurance alpha

Data, solutions, publications

Process re-engineering


Swiss Re’s tech strategy is embedded in our business strategy and ensures effective innovation management

15

1 2

34

OUR CLIENTS OURSELVES

OUR EXPOSUREOUR DATA

Swiss Re tech

strategy

Increase our clients’ competitiveness

Apply tech to improve our own value chain

Harvest the full potential of our proprietary data

Get closer to risk through digital platforms

Clear and pragmatic business objectives

iptiQ state-of-the-art digital B2B2C business; largest investment representing ~50% of total spend

USD ~300mtotal investments p.a. in key tech projects

Our tech strategy is implemented with a combination of in-house developments and strategic partnerships

ATLAS new general ledger allowing closing within 5 days; co-innovation project with SAP (SAP FPSL1)

Automotive and mobility solutionspartnerships with car manufacturers for insurance product co-development (e.g. ADAS risk score with BMW)

Selected examples:

1 FPSL = Financial Product Sub-Ledger


Swiss Re outperforms its peers with higher margins

Peer-leading margins

US GAAP net operating margins average 2012-19

11% 7%

Swiss Re Group Main competitors¹

¹ Based on weighted average of Munich Re, Hannover Re, SCOR and RGA

UnderwritingInvestment Operating expenses

• Differentiation approach has enabled Swiss Re to generate higher margins and outperform

• Swiss Re outperformed peers on average by 5%pts since 2012, mainly driven by its superior underwriting performance (risk selection, capital allocation and differentiation)

Swiss Re is leading insurance business that represents a highly rewarding opportunity for shareholders


We are committed to our over-the-cycle Group financial targets

17

Group targets over-the-cycle

13.7%

10.5%

13.7%

10.6%

10

0

14

4

2

12

6

8

2013 2014 2015 2016 2017 2018 2019 Over-the-cycle

target

11.0% 10.8%

0

5

10

20

2013 20152014

17.0%

2016 2017 2018 2019 Over-the-cycle

target

10%

1 700 bps above 10y US Govt. bonds. Management to monitor a basket of rates reflecting Swiss Re’s business mix2 The 10% ENW per share growth target is calculated as: (current-year closing ENW per share + current-year dividends per share) / (prior-year closing ENW per share + current-year opening balance sheet adjustments per share)

Group ENW per share growth2Group return on equity

actual 700 bps above 10y US Govt. bonds

Rf + 700 bps1

9.4%

1.4%

9.4%9.2%9.6%9.4% 9.3%

2.5%

10%

actual target

10% 10% 10% 10% 10% 10%

1.0%

7.2%

5.4%

4.4%

8.2%

9.6%


Signing of

Shift of investment portfolio

to follow ESG investment benchmarks

Reduced providing re/insurance

to thermal coal

FormalSustainability Risk

Framework developed

Signing of

100% GHGneutral

Adopted FSB TCFD recommendations

Reduced investing in thermal

coal companies

Commitment to Commitments to UN

Climate Action Summit

Net-zero GHG

emissions in operations

Obtain 100% of power

from renewable sources

Net-zero GHG

emissions across entire

business

Stop providing re/insurance

to most carbon-intensive oil & gas production

First sustainability-related publication

2003

2007/08

2009

2012

2015 2017

20182016

2019 2023

2020 2030

2050

1979

18

Swiss Re has a long tradition in sustainability



19

Capital Management


We remain focused on our capital management priorities

20

SST 19251%

SST 20232%

Group SST ratio

AA-/Aa3/A+

RatingPayout ratio

55%1

USD 8.1bnordinary dividend (FY 15 to FY 19)

AcquisitionsBusiness reinvestments

USD 4.1bn2

buybacks executed(FY 15 to FY 19)

ExtraordinaryPayout ratio 27%1

I II

IIIIVCapital management priorities

Swiss Re’s capital management priorities remain unchanged

I. Ensure superior capitalisation at all times and maximise financial flexibility

II. Grow the regular dividend with long-term earnings, and at a minimum maintain it

III. Deploy capital for business growth where it meets our strategy and profitability requirements

IV. Repatriate further excess capital to shareholders

1 Payout ratio calculated as capital repatriation over total contribution to ENW2 In light of the current volatility in the financial markets and global economic situation precipitated by the COVID-19 pandemic, at its post-AGM meeting the Board of Directors concluded that the proposed share buyback programme for 2020 will not be launched


SST ratio development

1 SST 220% target capitalisation was introduced in 20172 MVM = Market Value Margin = Minimum cost of holding capital after the one-year SST period until the end of a potential run-off period

21

• Group SST ratio remains very strong and above the target of 220%. The decrease reflects higher SST target capital and Market Value Margin (MVM2)

• Increase in SST available capital driven by strong investment contribution and higher supplementary capital, partly offset by capital distribution to shareholders

• Strong growth in insurance risk as well as lower interest rates increase SST economic target capital and MVM leading to the observed decrease in the ratio

• Increase in MVM year-on-year mainly driven by the impact of lower interest rates and business growth in Asia and the US

44.8 46.1 46.3

40.6 41.9

17.2 17.6 17.2 16.2 18.0

261% 262% 269%

251%

232%

0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2016 2017 2018 2019 1/2020

USD bn, %

SST available capital

SST economic target capital

Group SST ratio calculation

SST economic target capitalSST available capital

SST target capitalisation1

(220%)

SST risk-bearing capital - MVM

SST target capital - MVM=

USD 5.3bn MVM

USD 5.2bn MVM

USD 5.9bn MVM

USD 7.0bn MVM

USD 9.4bn MVM

Illustrative

Swiss Re maintains a very strong Group capital position, with Group SST ratio above target


Swiss Re’s capital strength resilient to market moves and insurance events

Financial market sensitivities Insurance stresses

1 Excluding the impact of earned premiums for business written and reinstatement premiums that could be triggered as a result of the event2 Based on 99.5% VaR annualised unexpected loss

215%

194%

206%

218%

210%

Resulting estimated Group SST ratio 1/2020

205% 215% 225% 235% 245%

Credit spreads (-50bps)

Interest rates (+50bps)

Equity markets (+25%)

Equity markets (-25%)

Interest rates (-50bps)

Credit spreads (+50bps)

Real estate values (-25%)

Real estate values (+25%)

235%

220%

242%

242%

224%

226%

238%

220% Group SST

target capitalisation

232% Group SST 1/2020

229%

Resulting estimated Group SST ratio 1/20201

220% Group SST

target capitalisation

232%Group SST 1/2020

1 in 200-year Atlantic hurricane

1 in 200-year Californian earthquake

1 in 200-year Pandemic

1 in 200-year European windstorm

1 in 200-year Japanese earthquake

(USD 6.4bn2)

(USD 4.4bn2)

(USD 3.1bn2)

(USD 2.4bn2)

(USD 3.7bn2)


Group SST ratio Group Solvency II equivalent

ratio

Average of reinsurance

peers Solvency II ratio

Average of insurance peers

Solvency II ratio

232%

>260%

238%

210%

Comparison of Group SST / Solvency II ratio1

1 Comparison was produced on a best effort basis, with Solvency II ratio estimate for Swiss Re not allowing for any long-term guarantee adjustments2 Average of Hannover Re, Munich Re, SCOR3 Average of Allianz, Aviva, AXA, Generali

1/2020 Year-end 2019

2 3

• SST and Solvency II are both comprehensive economic and risk-based solvency regimes

• Due to important differences, Solvency II equivalent ratio is higher for the Swiss Re Group

• The Group benefits from peer-leading diversification resulting in superior capital efficiency and attractive capital management actions

• Swiss Re has strong financial flexibility and is well positioned to respond to market shocks and growth opportunities

23

Swiss Re maintains a leading capital position in the re/insurance sector


1 SST available capital: includes change in other EVM items (including foreign exchange impacts on ENW) and change in SST valuation differences with EVM on a best effort basis; SST economic target capital: includes foreign exchange, interest rate and other impacts on Swiss Re’s economic target capital on a best effort basis

2 Includes the sum of paid dividends (2016-2020) and executed public share buybacks (2016-2019) as well as the authorised 2020 public share buyback (a pro-rata share of the originally proposed 2020 share buyback programme of CHF 0.8bn is used, however, in light of the current volatility in the financial markets and global economic situation precipitated by the COVID-19 pandemic, at its post-AGM meeting the Board of Directors concluded that the proposed share buyback programme for 2020 will not be launched)

• Solid economic earnings (USD 3.0bn on average) drove Swiss Re’s strong solvency capital generation over the last five years (USD 1.8bn net solvency capital generation on average per year or CHF 5 yearly average per share)

• The Group has deployed USD 7.7bn of capital over the past five years, mainly to insurance risk pools

• Swiss Re Group SST includes peer-leading capital repatriation of USD 13.6bn2 in total or USD 2.7bn2 per year

Swiss Re’s solvency capital generation – five year aggregated view from Group SST 2015 to 2020

Capital management14.9

8.8

-6.4

-7.7

Other items (incl. fx)1Economic earnings (Total contribution

to ENW)

1.6

Capital deployment (capital allocation)

Net solvency capital generation

-1.6

Change in supplementary capital

-13.6

Capital repatriation2 Change in excess capital

CHF 8CHF 5CHF 9yearly average

per share

Strong solvency capital generation over the last five years


15% 14%

24%

14%

37.236.0

25

Group available capital

USD bn• Significantly strengthened Group financial flexibility through

senior debt deleveraging, issuance of contingent capital and pre-funded subordinated debt facilities (not counting as SST supplementary capital or rating agency capital until drawn)

• Financial flexibility further enhanced with Alternative Capital Partners (ACP) by attracting third-party capital into selected risk pools to enable further growth

• Notional amount of funded subordinated debt increased in 2019 due to:

- Issuance by SRZ of EUR 750m and USD 1bn dated subordinated debt and USD 1bn perpetual fixed spread callable notes

- Issuance by ReAssure of GBP 1bn subordinated debt

- Redemption of SRZ’s GBP 500m perpetual subordinated debt and USD 750m perpetual subordinated notes with contingent write-off

• Notional amount of senior debt decreased due to senior debt maturities, repayment of a Life Capital senior bank loan and reduction in LOC usage

Additional USD 2.7bn pre-funded subordinated debt available on demand

6.5 6.9 6.7

7.0 5.23.1

6.75.5

2019

47.7

57.4

1.9

54.2

2013 2016

LOC1

Senior debt2

Subordinated leverage ratio5

Subordinated debt3

Core capital4

Senior leverage ratio616%

15% 16%

24%20%

10%

37.2 36.6 36.1

1 Drawn unsecured LOC and related instruments (2013 and 2016 shows drawn and undrawn)

2 Senior debt excluding non-recourse positions3 Funded subordinated debt and contingent capital instruments

(2016 also shows undrawn pre-funded facilities)

4 Core capital of Swiss Re Group is defined as economic net worth (ENW) as of year-end 2019

5 Funded subordinated debt divided by sum of funded subordinated debt and ENW (2016 also shows undrawn pre-funded facilities) (target: less than 20%)

6 Senior debt plus LOCs divided by total capital (target: less than 25%)

Swiss Re’s target capital structure and financial flexibility is supported by the Group’s strong funding platforms


USD bn

Capital repatriationGroup SST 2015-201,2

13.6

1 Incl. the sum of paid dividends (2016-2020) and executed public share buybacks (2016-2019) as well as the authorised 2020 public share buyback (a pro-rata share of the 2020 share buyback programme of CHF 0.8bn is used)2 In light of the current volatility in the financial markets and global economic situation precipitated by the COVID-19 pandemic, at its post-AGM meeting the Board of Directors concluded that the proposed share buyback programme for 2020 will not be launched

Swiss Re

Corporate Solutions Life CapitalL&H Reinsurance

Received capital contribution of USD 1.0bn in 2017 and

USD 0.6bn in 2019

Received capital contribution of USD 1.6bn in 2016

(Guardian) and USD 0.8bn in 2017-2019

Ordinary dividends

Per share in CHF

USD 8.1bn

4.854.60

Share buybacks USD 4.6bn

3.305.00 3.40 4.20

in year paid

P&C Reinsurance

2.52.0

1.3 1.4

2016 20192017 2018

0.4 0.7 0.7 0.3

201920172016 2018

0.3 0.2 0.1

2016 2017 2018 2019

0.0 0.41.1 1.1

0.5

2016 2017 2018 2019

1.1 1.1 1.3 0.90.2

20182016 2017 202022019

5.60 3.10

1.6 1.6 1.6 1.7 1.8

2016 20202017 2018 2019

5.90 0.60

Peer-leading capital repatriation


Increased Nat Cat risk exposure supported by more active use of hedging tools1

Breakdown of capital relief from various hedging tools

• ACP enables Swiss Re to recapture Nat Cat market share and to proactively manage risk exposure per peril

• The business we write offers attractive returns on capital for both ACP investors and Swiss Re shareholders

• Through risk sharing, Swiss Re earns a commission towards covering our operating expenses

• Hedging of TC North Atlantic enables the business to grow in other perils and therefore improve diversification of risk retained on our balance sheet

• Sidecar platform contributes the majority of the capital relief

We manage our net risk exposure by ceding excess risks to third-party capital investors

USD bn

1 As of July in each respective year

65%

5%

99% shortfall basis in 2019

0

5

10

15

2015 20162013 2014 2017

13%

2018

20%

2019

99% shortfall net of retro

99% shortfall relief

Capital relief as a % of shortfall gross of retro

10%

20%

Sidecar platform

Other

Cat bonds + ILW

Retro 65%

5%

Alternative Capital Partners (ACP) allows Swiss Re to grow our nat cat portfolio in a risk controlled manner

27



28

P&C and L&H Reinsurance


Differentiation is at the heart of Swiss Re’s Reinsurance franchise

Client Access

RiskKnowledge

CapitalStrength

We leverage our key assets

Our client relationships have been built over time, with strong C-suite

access

We dedicate resources to generating actionable insights

which we use and share with clients

Capacity is important to our clients and helps us gain access to

exclusive deals


0%

2%

4%

6%

8%

10%

12%

14%

16%

0% 2% 4% 6% 8% 10% 12% 14% 16%

Swiss ReReinsurance3

In recent years, both Reinsurance segments have performed in line with their ROE targets

• P&C Re’s average performanceremains strong despite significant recent Nat Cat activity

• L&H Re delivers peer-leading ROEs underpinned by underwriting rather than investment returns

Avg. dividend flows4 as % of equity, 2015-2019

Avg. ROE, 2015-20192

bubble size = cumulative net income, 2015-2019, (calculations in USD)

Our financial performance reflects our market-leading capabilities

30

Reinsurance delivers a market-leading1 combination of shareholder returns and capital repatriation

1 Peer group includes Alleghany, Everest Re, Hannover Re, Munich Re Reinsurance, Partner Re, Renaissance Re, RGA, SCOR2 Annualised 9M 2019 YTD actuals 3 Dividend flow for Swiss Re Reinsurance reflects dividends paid by the Reinsurance Business Unit to Swiss Re Group4 Dividend flows include ordinary dividends paid to shareholders as well as special dividends and share buybacks


However, the market is changing and we are taking actionR

ein

sura

nce

ca

pit

al i

n U

SD

bn

Inte

rest

ra

te in

%31

Global trad. reinsurance capital (LHS) Alternative capital (LHS)

We seek to grow and maintain our market-leading position in the face of evolving industry conditions

US 10Y interest rate (RHS)

Reinsurance industry development1 and interest rate evolution

1 Source: Swiss Re Institute2 Swiss Re pricing index; indicative for 2019

0%

1%

2%

3%

4%

5%

6%

7%

0

100

200

300

400

1994 1998 2002 2006 2010 2014 2018

Inte

rest

ra

te in

%

Worldwide Cat Market Price Index2

Future outperformance requires

• Increasing scale and efficiency

• Leveraging technology

• Pushing the edge with innovation

Industry change due to

• Low interest rates and increased capital

• Growing protection gap

• More cost-conscious buyers

• Technology advancement and digitisation

Historical outperformance was driven by

• Active cycle management and capital deployment


CoreTraditional reinsurance

offerings

TransactionsTailored and structured

reinsurance

SolutionsAdditional value-adding

services

Competitive dynamics

How we win

Specialised with a few sophisticated competitors

Crowded and increasingly commoditised

Selected major competitors and non-traditional players

Brand & Reputation

Balance Sheet Strength

Scale & Presence

Joint Risk Sharing

Tech, innovation and R&D

Ability to Execute

32

We have developed a clear strategy to succeed in this environment


We aim to grow and balance our portfolios on multiple dimensions

2014 mid-term2018

Core

Transactions

Solutions

Core

Transactions

Solutions

Core

Transactions

Solutions

Illustrative

Property Casualty Specialty Life Health Property Casualty Specialty Life Health

AsiaEMEA

40% 20%40%

Americas AsiaEMEA

35% 35%30%

Americas

Property Casualty Specialty Life Health

AsiaEMEA

35% 35%30%

Americas

Breakdown by Core, Transactions and Solutions is based on EVM profit – new businessBreakdown by Region and Line of Business is based on EVM Capital – new business

33


Americas EMEA Asia

2010

12%

44%

2%

18%

16%

3%

1%

50%

19%

7%

25%

3%

2019

7.4

19.0

CAGR 11%

Property Nat Cat Casualty Specialty Life Health

Portfolio developments 2010-19

EVM premium (USD bn)

7.8 9%

16%10%

17%

24%

21%

12%

2010 2019

14%

24%

5%

39%

9%

18.4

CAGR 10%

6%

18%

2019

14%

27%9%

20%

12%

14%

2010

5%6%

22%

48%

3.3

13.6

CAGR 17% • Scale of the business

• Strong client access

• Diversification between P&C Re and L&H Re

• Risk knowledge

Core strengths

34

Reinsurance has significantly grown and diversified its portfolio, building on core strengths


Net income (USD m, LHS), Return on equity (%, RHS)

USD 16.1bnin 2018

USD 19.3bnin 2019

• Net impact of 2019 large nat cat events 3.5%pts above expectations. Unfavourable prior-year development impacted the combined ratio by 3.5%pts

• Strong increase in net premiums earned of 19.8% driven by profitable growth from large transactions and nat cat business in an improved market environment

• Underwriting margin affected by large losses from typhoons Hagibis and Faxai, Hurricane Dorian as well as wildfires, floods and hailstorms in Australia; additional current year impact from ADC with Corporate Solutions2. Adverse prior-year development from Typhoon Jebi and claims inflation in US casualty

• Investment margin improved from gains on sales of fixed income securities and market value gains on equity securities

• Decrease in expense margin due to higher revenues while managing expenses

7.810.7

2.9

-1.4

-6.4-5.5

3.8

2018 2019

4.3

-0.5pts

Operating expensesUnderwriting Investment

83.8 83.7

111.5

104.0107.8

201720152013 2014

85.7

93.5

2016 2018 2019

1 Net operating margin = EBIT / total revenues2 Note that since 2012 P&C Reinsurance has benefitted from positive development of Corporate Solutions reserves remaining in the

Reinsurance BU, and associated investment income

-413

26.0 26.7

22.4

16.4

-3.5

3.7 4.41 000

-1 000

3 000

0

2 000

4 000

25

5

10

-5

0

15

20

30

2018

3 228

20162013

3 564

2014

3 008

2015

2 100

2017

370 396

2019

Return on equityNet income

Combined ratio (%)Net premiums earned Net operating margin1 (%)

2019 P&C Reinsurance results impacted by large losses and adverse trends in US casualty


1 Price change defined as change in discounted premiums net of commissions / discounted expected claims; price change is adjusted for portfolio mix effects and loss assumptions

2 Assuming an average large loss burden and excluding prior-year reserve development3 Adjusted to exclude business now reported on a deposit accounted basis (premiums of ~USD 0.9bn)

36

Increase on renewable

0.4

Total renewable 1 January3

Cancelled

-1.1

Renewed& restructured

1.0

New business Estimated outcome3

9.8

8.2

10.0

+2%

% of total 100% -11% 89% +4% +10% 102%

USD bn

P&C Reinsurance renewals

• Volume up 2% YTD – driven by 14% growth in nat cat business

• 5% nominal price increases, excluding impact of interest rates and updated loss assumptions

• Price quality1 is flat overall: sufficient rate increases achieved to offset the negative impact of lower interest rates and higher loss assumptions

• Further price improvements expected in forthcoming renewals in 2020

• 2020 combined ratio estimate2

of 97%, reflecting price changes and scale effects

Price change1 +0%- Nominal price change +5%- Impact of lower interest rates -3.5%- Impact of higher loss assumptions -1.5%

Exposure change +2%

Solid volume growth at attractive price quality, leading to improvement in estimated combined ratio for 2020

Solid outcome of January renewals for P&C Reinsurance


P&C Reinsurance strategy in action

37

SOLUTIONS

TRANSACTIONS

COREUS GAAP operating expense ratio (%)

Economic profit (USD m)

• >170 transactions closed in 2019

• Transactions contributed ~20% to economic profit in 2019

• Operating leverage supported by 20% growth in earned premiums

• Efficiency gains across the value chain allow to invest in the future

6.9% 6.2%

2018 2019

-0.7%pts

• Innovative data analytics capability developed to model supply chain risk

• Launch of innovative telematics solution with Pioneer

• Solutions contributed ~7% to economic profit in 2019


124184

2018 20191

+48%

1 EVM FY 2019 results to be published on 19 March 2020

421524

2018 20191

+24%

48%

32%

20%

37%

22%

19%

5%

7%

4%

3%

3%

Americas

Asia

EMEA

Property

Liability

Motor

Marine

Accident & health

Engineering

Credit & surety

Other specialty

Portfolio split by region and line of business (% of net premiums earned)


L&H Reinsurance continued to deliver strong results in 2019

38

Running yield and ROI (%)Net premiums earned

• Stable running yield. ROI supported by realised gains from fixed income securities and equity security market value gains

• Premiums earned increased slightly. Adjusted for an intra-group retrocession agreement with Life Capital and unfavourable fx movements, increase driven by Asian health business growth

• Underwriting result included a negative adjustment to the carrying value of an existing treaty following the acquisition of Quilter’s UK closed book business by ReAssure, reflecting the decrease in interest rates since treaty inception. Related to this adjustment, L&H Re rebalanced its asset portfolio, realising gains of a corresponding magnitude

11.4 12.3

3.3 2.7

-5.3 -5.0

20192018

9.4 10.0

+0.6pts

Underwriting Investment Operating expenses Net income (USD m, LHS), Return on equity (%, RHS)

420

-462

968 807 761 8996.4

-7.9

16.212.8

15.3

11.112.4

0

500

-1 000

0

-500

1 000

1 500

-10

-5

5

10

15

20

201620142013 2015

1 092

2017 2018 2019

Net income Return on equity

USD 12.7bnin 2018

USD 12.8bnin 2019

4.13.2 3.4 3.6

4.33.7

5.0

3.83.5 3.4 3.4

201720162013

3.5

2014 2015

3.3

2018

3.3

2019

Running yield ROI

Net operating margin1 (%)

1 Net operating margin = EBIT / (total revenues – net investment result unit linked & with profit)


L&H Reinsurance strategy in action

39

SOLUTIONS

TRANSACTIONS

CORE

• >30 transactions closed in 2019

• Transactions contributed ~30% to economic profit in 2019

• Higher result in 2018 driven by large deals in Asia

• Modest absolute reduction in expense base combined with slightly higher top line

43%

27%

30%

61%11%

12%

9%7%

Americas

EMEA

Asia

Medical

Mortality

Critical illness

Disability

Other593

495

2018 20191

-17%

US GAAP operating expense ratio (%)


Portfolio split by region and line of business (% of net premiums earned)

1 EVM FY 2019 results to be published on 19 March 2020


309 344

201912018

+11%

• Magnum Go bringing the benefits of automation and instant underwriting decisions to more clients

• In-force customer experience improving customer retention and consumer health through analytics and behavioural actions

• Solutions contributed ~20% to economic profit in 2019

6.0% 5.8%

2018 2019

-0.2%pts



40

Corporate Solutions


Corporate Solutions remains key to Swiss Re’s differentiation strategy

Client Access

RiskKnowledge

CapitalStrength

Implement management actions

De-commoditise our core business

Grow with differentiating assets

Expand through tech-driven solutions


Focused value proposition in a large pool of commercial insurance risks

Our market presenceCommercial

insurance market

Large Corporates(turnover > USD 500m)

Mid Corporates(turnover >25m)

SMEs(turnover <25m)

Excess Layers: Top 5 – 10

International Programmes: Entering now

Primary Lead:Market entry in 2016

Bringing international programme capabilities where few others excel

Tackling complex risks with bespoke solutions

Providing innovative, efficient products which reduce costs for clients who do not want to pay for complexity

Serving only through innovative business models and joint ventures, e.g. Bradesco JV

Our proposition

SMEs:Only through JVe.g. Bradesco

Not targeted2010-19 commercial insurance market premiums CAGR, despite market softening

Excess Layers SMEs

Primary Lead

International Programmes Workers’ Compand Commercial Auto

SegmentationCorporate Solutions’ addressable market

Workers’ Comp andCommercial Auto:None

3%

Gross premiums written, 20191

40%

20%

40% USD ~300bn

14%

7%

14%

35%

30%

1 Source: Swiss Re Institute

USD ~800bn


~35%

Corporate Solutions portfolio

(USD 4.7bn GPWin 2018) Agriculture

Special Risks

Aerospace

Marine

Selected FinPro lines

US General Liability

Targeted portfolios (premiums) Pruning

>95%

~75%

>50%

~50%

~45%

~30%

Actions taken

Exit US E&S Casualty & reduce majority of Lead Umbrella

Reduce Financial Professional Healthcare exposure

Significantly reduce General Aviation & Space exposure

To be continued with new digital proposition

Significantly reduce exposure, excl. Brazil JV and Mexico

Significantly reduce Special Risks exposure

2018 reported CR: 137%

Decisive actions announced in H1 2019 to reinforce balance sheet

Reducing large limits & capacity deployed in targeted portfolios representing GPW of USD ~900m (~20% of premiums)


Combined ratio (%)Net premiums earned

• Profitability continued to be adversely impacted by underwriting performance, partially offset by income from investment activities and realised gains from insurance in derivative form

• 2019 adjusted2 combined ratio of 112%

Net income (USD m, LHS), Return on equity (%, RHS)

USD 3.9bnin 2018

USD 4.2bnin 2019

• Net premiums earned increased by 6.1% as rate increases and growth in selected lines of business more than offset active pruning of several portfolios

• Underwriting margin reflects reserve increases as well as high frequency and severity of large and medium-sized man-made losses, primarily in prior accident years

• Investment margin improved, bolstered by higher market value gains from equity securities and insurance in derivative form

• Expense margin slightly lower, benefitting from increased revenue, and despiteUSD 40m restructuring costs

95.1 93.0 93.2

101.1

133.4

117.5

127.9

20192014 20172013 20162015 2018

319 357

-741

-405

-647

9.6 12.515.5

6.0

-32.2

-19.4

-34.1 -40

-30

-20

-10

0

10

20

-800

-600

-400

-200

0

200

400

20162013

279

2014 20172015

135

2018 2019

Net income Return on equity

Net operating margin1 (%)

2019 Corporate Solutions results reflect decisive management actions

1 Net operating margin = EBIT / total revenues2 Reflecting impact of ADC premium and restructuring costs, assuming an average large nat cat loss burden and excluding prior-year

reserve development

5.48.7

-8.1

-18.4

-17.3

-11.1

1.9

2018 2019

-16.7

-5.6%pts

Underwriting Investment Operating expenses


Gross premiums written of USD 231m of planned pruning activities executed in 2019, predominantly in US general liability. Majority of pruning activity takes place in 2020 with ~90% of pruning objective to be achieved by end of 2020

Portfolio pruning

Operating expense savings

Decisive actions taken in 2019, with the majority of the savings realised in 2020. On track to achieve gross expense savings in excess of USD 100m in 2021

Rate increases

12% price increases achieved in 2019. Strong momentum continued in January 2020. Strongest increases in loss-affected property lines. Specialty correcting but changes vary between sub-lines

Update on Corporate Solutions 2019 management actions

Growth in selected target areas 2019

ADC with P&C Re and additional reinsurance protectionImproved reinsurance structure

Pruning actions in targeted portfolios 2019 (USD 231m)

Special risks

US general liability

Marine

Aerospace

Agriculture

Selected FinPro lines

2019 pruning actions

Pronounced increase in severity and frequency of US casualty claims. H1 reserve increase and further strengthening in H2 including higher initial loss picks

Claims developments and reserving actions

Accident & health

Property

Credit & surety

Engineering

2019 premium change


• Higher normalised 2019 combined ratio (adj. for ADC premium and restructuring costs) vs. 2018 explained by higher initial loss picks and increase in small to medium-sized losses

• Strong rate momentum in 2019 to be partly earned through in 2020

• 65% of the portfolio pruning to be executed in 2020

• No change to the combined ratio target2 of 98% for 2021

Expected combined ratio development

1 Large nat cat below expectations and prior-year reserve development2 Assuming an average large nat cat loss burden and excluding prior-year reserve development

Net expense savings

Rate increases

~1%pt

2019 reported

combined ratio

2020 estimate2

115%

Normali-sation1

112%

128%

Portfolio pruning

Adjusted reinsurance

structure

Normalised 2019

combined ratio

105%

Restruct-uringcosts

Normalised 2019

combined ratio, adjusted

~1%pt

Impact ADC premium

~13%pts

~2%pts

~2%pts

~4%pts

~0%pts

Path to Corporate Solutions 2020 combined ratio of 105%

46



47

Life Capital


Focus on dynamically growing B2B2C businesses

GBP 1.2bncash proceeds

to Swiss Re

1 Subject to obtaining the required regulatory and anti-trust approvals2 Expected to be accounted for at fair value with movements in the Phoenix share price reflected in Swiss Re’s income statement3 Ultimate impact subject to movements in the Phoenix share price until closing

ReAssure sale expected to close mid-20201

GBP 3.25bntransaction valuation

• 13-17% stake in Phoenix post-closing2

• Economic profit3 and benefit to Group SST ratio of 12%pts expected at closing

+22%Open book GPW growth in 2019

• Further expansion in 2019

• New KPIs to be communicated mid-2020

Strategic milestone achieved with agreement to sell ReAssure, improving the Group’s return on capital profile


Title to go here two lines maximumiptiQ is our state-of-the-art digital white labelling B2B2C insurance platform

Client Access

RiskKnowledge

CapitalStrength

TravelCyber

MobilityHome

P&CL&H

Term & Whole LifeAccident

Critical IllnessHealth Add-Ons

28 partners Geographic reach

Key capabilities

60-day partner onboardingMulti-channel

End-to-end platformData-driven customer insights

Products

InsurersInsurance intermediaries

BanksEcosystems

Current footprint

Expansion opportunity

49

Leveraging Swiss Re’s differentiation drivers


iptiQ businesses are growing dynamically, with significant expansion opportunities

1 Core business only2 2019 projected

61

89

225

2017 2018 20192

25

71

2017 2018

~155

20192

Gross premiums written (GPW)1 Annualised new business premium (APN)1

USD m USD m

…leads to

~USD 1.0bn GPWin 10 years, at current sales levels

~USD 155m APNin biometric L&H risks vs. USD 200-300m for

UK’s largest provider of L&H protection products

CAGR +149%

CAGR +92%


We incubate and operate dynamically growing start-up businesses…

Financial returns profile

US GAAP and EVM returns profile – experience-based / illustrative

• High upfront investments in build and growth

• Businesses need scale to achieve profitability

• Economic profit break-even is achieved more quickly than US GAAP

• Significant Economic Net Worth of ~USD 600m for iptiQ projected for year-end 2019

• Experience from incubating start-up business with accelerated time to launch down to 10 months with mature platform and resources

Scale-up & break-even

Build & incubate

Steady state at target ROE

L&H EMEA ANZ

0 – 5 years 5 – 8 years 8+ years

L&H USP&C

Economic earnings profile

US GAAP earnings profile

Maturity profile

Estimated break-even Estimated break-even

51


1 Normalised EVM figures and multiples reflect impact of USD 100m p.a. costs invested to build the platform and sub-scale overrun costs above modelled expenses2 2019 projected3 Multiples used are based on peer comparison and observable metrics for similar high growth companies

…which increase Swiss Re’s economic value

Estimating the current value of iptiQ, as applied to…

USD 225m 20192 GPW

~5-7xP/GPW multiple3

~USD 1-1.5 bnTotal value

~USD 50m Normalised 20191 EVM

new business profit

~10-15xVNB multiplier3

~1.0xENW multiplier

~USD 600m20192 ENW

+

I

II

…high growth insurance companiesbased on equity and value of new business1

…InsurTech start-upsbased on gross premiums written

52



53

Asset Management


Asset Management is a key contributor to the Group’s value proposition

54

Flexible investment platform

Attractive returns

Long-term, sustainable returns

Average yearly pre-tax contribution of

USD 4.3bnto Swiss Re Group’s US GAAP results from

2015-2019

Leverage tech and advanced analytics

Strategic Asset Allocation

Target Liability Portfolio

Risk analytics

Bigdata

Scenario modelling

Industry-leading ESG approach

~100%assets considering ESG criteria

Systematic integration of ESG considerations

Financial markets expertise

Centre of excellence for the Group

Managing market risk… …to support our business


Cash and cash equivalents6%

Short-term investments4%

Government bonds 42%

Credit bonds34%

Equities 5%

Mortgages and other loans3%

Other investments (incl. policy loans)

6%

Overall investment portfolio

USD bn

EndFY 2019

Balance sheet values 179.9

Unit-linked investments -40.2

With-profit business -5.2

Assets for own account(on balance sheet only)

134.5

USD bn P&C Re L&H ReCorporate Solutions

Life Capital Group items Consolidation

EndFY 2019

EndFY 2018

Cash and cash equivalents 3.7 1.7 1.7 1.5 - - 8.6 4.8Short-term investments 3.3 1.7 0.4 0.5 - - 5.9 5.4Government bonds 30.3 14.3 5.3 6.5 - - 56.4 50.9Credit bonds 8.6 17.7 2.2 17.0 0.1 - 45.6 45.1Equities1 3.3 0.7 0.1 0.1 2.1 - 6.3 6.3Mortgages and other loans 6.8 3.5 - 2.2 3.0 -11.1 4.4 4.5Other investments (incl. policy loans) 6.2 1.3 0.2 0.9 0.4 -1.7 7.3 5.6Total 62.2 40.9 9.9 28.7 5.6 -12.8 134.5 122.6

1 Includes equity securities, private equity and Principal InvestmentsNote: Balance sheet values include ReAssure investments classified as Assets Held for Sale as of 31 December 2019. Included in Assets for own account are USD 23.9bn of ReAssure investments

55


42%

19%

6%5%

4%

4%

3%

2%1%

14%

United States United KingdomGermany FranceCanada JapanAustralia ChinaNetherlands ROW

45%

31%

9%

7%

4%4%

BBB A AAA AA <BBB NR

56

• Increase in government bonds driven by net purchases and market value gains stemming from declining interest rates as well as favourable fx impact

• Credit bonds include corporate bonds (USD 41.0bn) and securitised products (USD 4.6bn)

• Increase in credit bonds driven by market value gains and favourable fx impacts, largely offset by net sales

USD mGovernment

bondsCredit bonds

EndFY 2018 50 876 45 076

EndFY 2019 56 399 45 624

Fixed income securities

Note: Includes ReAssure investments in Life Capital classified as assets held for sale as of 31 December 2019


Equities and alternative investments

39%

26%

18%

16%1%

Real estateby geography

SwitzerlandUSOther DirectGermanyIndirect

• Decrease in equity securities driven by net sales, mostly offset by market value gains

• Increase in private equity mainly driven by net purchases

• Increase in real estate driven by net purchases and market value gains

• Decrease in Principal Investments driven by the sale of SulAmérica, partially offset by market value gains

32%

16%15%

11%

9%

6%3%

2%2% 2%

Equity securitiesby sector

Exchange-traded funds

Non-Cyclical Consumer Goods

Financials

Information Technology

Cyclical Services

General Industrials

Basic Industries

Cyclical Consumer Goods

Resources

Utilities

Non-Cyclical Services

69%

15%

10%6%

Principal Investmentsby sector

HGM Insurance

PE Funds

Developed Market Insurance

Non Insurance

57

USD mEnd

FY 2018End

FY 2019

Equity securities 2 695 2 599

Private equity 1 463 1 626

Hedge funds 327 352

Real estate 4 430 4 802

Principal Investments 2 109 2 068

Equity securities 341 394

Private equity 1 768 1 674

Total market value 11 024 11 447

1%

Note: Includes ReAssure investments in Life Capital classified as assets held for sale as of 31 December 2019


• ROI driven by net investment income (3.0%) and net realised gains (1.7%)

• Net realised gains of USD 2.0bn due to fixed income sales and equity market performance

• Very low impairments of USD 5m

• Stable running yield, moderately impacted by the low interest rate environment

• Net investment income above prior year, mainly due to the sale of SulAmérica

• Industry-leading ESG approach with ~100% of invested assets following ESG benchmarks

• Asset allocation changes were minimal on a relative basis

• Increase in credit investments due to declining interest rates and credit spread tightening, partly offset by net sales

• Increase in equities reflect market value gains, partially offset by the sale of SulAmérica

Return on investments (ROI) Investment portfolio positioning (USD bn)

51.1 52.1

49.3 54.4

10.214.5

40

0

20

120

60

80

100

140

1.0

122.6

End FY 2018

0.9

End FY 2019

133.4

Net investment income (USD m, LHS) Running yield (%, RHS)

Equities and alternatives (incl. Principal Investments)

Cash and short-term investments

Credit investments

Government bonds

Other

2.8%in 2018

4.7%in 2019

577598

313301 367

504 682

3.23.3

3.02.9 2.9 2.9

2.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1 000

5 000

3 000

0

4 000

2 000

2 601 2 798

2013

2 788

2014

2 547

20182015 2016

2 765

2017

2 892 2 885

2019

Running yield Other NII (incl. expenses)Running yield NII

Group investments delivered excellent value in 2019, driven by a high quality investment portfolio

11.511.5


• Stable running yield (FY 2019: 2.8%) despite headwinds from declining yields driven by portfolio concentration in higher-income, longer-maturity securities (92% of fixed income unrealised gains are on securities with >5 years in maturity)

• Low interest rates will continue to put pressure on the running yield mainly through a higher market value of the asset base. As a counterbalance, the Group will continue to broaden its investment portfolio across asset classes (including real assets and private debt)

Higher yields concentrated in longer-maturity securities (FY 2019)

90

105

30

0

15

45

75

60

0.0%

1.0%

2.0%

3.0%

4.0%

Running

yield

2.8%

Less than five years

Greater thanfive years/non-fixed

Average invested assets (RHS, USD bn)Running yield (LHS)

2.9%

Investment portfolio well positioned to deliver consistent returns

2.7%


Sources: Barclays, Swiss Re

ESG makes economic sense: better risk-adjusted return

0.81

0.88

0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90

US Corp Int. (Traditional) Sustainability US Corp Int. (ESG BB+)

Enhancement Inclusion Exclusion

ESG benchmarksand criteria

Thematic investments

Sustainability risk assessments

Information ratio (risk-adjusted return)from end May 2014 to end December 2019

• ~100% of assets considering ESG criteria

• Swiss Re selected to the 2019 PRI Leaders’ Group

Key 2019 highlights

• 2019 green, social and sustainability bonds of USD 1.9bn

• New 2024 target of USD 4bn

• New absolute threshold for mining companies and power utility generators

Swiss Re’s industry-leading approach to responsible investing

60

Systematic integration of ESG criteria into investment process and portfolio



61

Global Re/Insurance & Protection Gap


Global cat losses totaled USD 146 billion in 2019, and 59% was uninsured

62Source: Swiss Re Institute


0

50

100

150

200

250

300

350

400

450

500

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Insured losses Uninsured losses 10-year moving average insured losses 10-year moving average total economic losses

Disaster losses still mostly uninsured

Source: Swiss Re Institute

Economic losses =

insured + uninsured

losses

63


Insured losses in 2019: USD 60 billion


Insured losses, 1970-2019 (USD bn at 2019 prices)

64

0

20

40

60

80

100

120

140

160

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Earthquake/tsunami Weather-related catastrophes Man-made disasters

Hurricane Andrew

HurricanesKatrina, Rita, Wilma

WTC

HurricaneSandy

Winter Storm Lothar

Hurricanes Ivan,Charley, Frances

HurricanesIke, Gustav

HurricanesHarvey, Irma, Japan, NZ

earthquakes, Thailand flood

Camp Fire, Typhoon

Jebi

Typhoons Hagibis,

Faxai

2019


Switzerland

Ireland

United States

Germany

United KingdomItaly

Spain

Portugal

Greece

India

South Africa

Angola

Morocco

EgyptNigeria

Ghana

Kenya

Cote d Ivoire

Ethiopia

Mozambique

0%

1%

2%

3%

4%

0.1 1 10 100

Average advanced markets

Average emerging markets

GDP per capita, 1000 USD

Source: Swiss Re Institute, S-Curve in non-life insurance 2018

• Swiss Re’s developed insurance “S-Curve” illustrates the various stages of insurance penetration

• Insurance penetration rises most sharply in middle-income countries

• With our focus on High Growth Markets, Swiss Re is well positioned to benefit from this trend

65

Direct premiums as a % of GDP, 2018


Nat CatExpected annual loss from storms, earthquakes and

floods

Estimated insurance coverage for primary nat

cat perilsUSD 222bn 24%

Mortality Income needed to maintain survivors’ living standards

Life insurance, financial assets, social security USD 386bn 45%

Health Total healthcare expenditure (funded)

Total healthcare expenditures minus

households’ stressful out-of-pocket expenses

USD 616bn 93%

Composite -- -- USD 1.2trn 54%


Note: All figures for 2018 and global; Protection gap is in premium equivalent terms

Need (N) Available (A)Protection Gap

(N – A)Insurance Resilience

Index (A ÷ N)

Swiss Re Group | Company presentation | April 2020 67Source: Swiss Re Institute

>1trn

60-80 bn profit potential

additional claim payments

Untapped resilience opportunity = New risk pools

175

91 9173

45 34

98

208

159

116 103

115

68

456

0

100

200

300

400

US &Canada

EMEAadvanced

Asia-Pacificadvanced

LatinAmerica andCaribbean

Middle Eastand Africa

EmergingEurope andCentral Asia

Asia-Pacificemerging

Advanced markets Emerging markets

US

D b

n

2000 2018

Protection gap in advanced and emerging economies

+27% of current profit pools


Swiss Re Public Sector Solutions enables the Group to broaden our client base and address the protection gap

Agriculture

Drought

Hurricane

Flood

Earthquake

Health

UruguayEnergy production shortfalls

due to drought

GuatemalaNat cat business interruption risk

CaribbeanHurricane, earthquake and excess rainfall risk

Pacific Alliance(CHL, COL, MEX, PER)

Earthquake risk

United StatesFlood risk

MexicoEarthquake/hurricane

and livestock risk

California/UtahEarthquake risk

Louisiana Hurricane risk

TurkeyEarthquake

pool

BangladeshFlood insurance

United KingdomFlood risk

FloridaHurricane risk

IndiaWeather insurance

for farmers

African Risk Capacity

Government drought insurance pool

ThailandCrop

insurance

KenyaLivestock insurance

Pacific Islands Earthquake and tropical cyclone risk

PhilippinesEarthquake and tropical cyclone risk

Guangdong Typhoon/rainfall

BeijingAgricultural risk

VietnamAgriculture yield cover

Heilongjiang Multiperil disaster risk

EgyptHospital cash

Mesoamerican Coral ReefProtection of reef damage

following a storm

• 1st team in the reinsurance industry to be fully dedicated to the public sector

• +570 bound transactions since 2011 demonstrate the need for the covers we offer

• Global footprint providing tailored support to the specific needs of our public sector clients

• Always at the forefront, we are a pioneer in emerging and industrialized markets

68

Swiss Re Group | Company presentation | April 2020 691 Task Force for Climate-related Financial Disclosures

Find out more:

Swiss Re’s 2019 Sustainability Report TCFD1 disclosures in Swiss Re’sAnnual Report

What lies ahead:

Sustainability in underwritingFurther integrate sustainability into business propositions

Sustainability RisksRevise Sustainability Business Risk FrameworkDevelop carbon steering mechanisms

Responsible InvestingFurther quantify, manage and reduce investment exposure to climate risk

Targets and metricsProgress on net-zero CO2 ambitions (operations by 2030, Asset and Liability side by 2050)Increasingly measure and quantify sustainability performance

https://reports.swissre.com/sustainability-report/2019/

https://reports.swissre.com/2019/financial-report/sustainability/climate-related-financial-disclosures-tcfd


Certain statements and illustrations contained herein are forward-looking. These statements (including as to plans, objectives, targets, and trends) and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical fact or current fact.

Forward-looking statements typically are identified by words or phrases such as “anticipate”, “assume”, “believe”, “continue”, “estimate”, “expect”, “foresee”, “intend”, “may increase”, “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 the Group’s actual results of operations, financial condition, solvency ratios, capital or liquidity positions or prospects to be materially different from any future results of operations, financial condition, solvency ratios, capital or liquidity positions or prospects expressed or implied by such statements or cause Swiss Re to not achieve its published targets. Such factors include, among others:

• the frequency, severity and development of insured claim events, particularly natural catastrophes, man-made disasters, pandemics, acts of terrorism or acts of war;

• mortality, morbidity and longevity experience;

• the cyclicality of the reinsurance sector;

• central bank intervention in the financial markets, trade wars or other protectionist measures relating to international trade arrangements, adverse geopolitical events, domestic political upheavals or other developments that adversely impact global economic conditions;

• increased volatility of, and/or disruption in, global capital and credit markets;

• the Group’s ability to maintain sufficient liquidity and access to capital markets, including sufficient liquidity to cover potential recapture of reinsurance agreements, early calls of debt or debt-like arrangements and collateral calls due to actual or perceived deterioration of the Group’s financial strength or otherwise;

• the Group’s inability to realize amounts on sales of securities on the Group’s balance sheet equivalent to their values recorded for accounting purposes;

• the Group’s inability to generate sufficient investment income from its investment portfolio, including as a result of fluctuations in the equity and fixed income markets, the composition of the investment portfolio or otherwise;

• changes in legislation and regulation, or the interpretations thereof by regulators and courts, affecting the Group or its ceding companies, including as a result of comprehensive reform or shifts away from multilateral approaches to regulation of global operations;

• the lowering or loss of one of the financial strength or other ratings of one or more companies in the Group, and developments adversely affecting its ability to achieve improved ratings;

• uncertainties in estimating reserves, including differences between actual claims experience and underwriting and reserving assumptions;

• policy renewal and lapse rates;

• uncertainties in estimating future claims for purposes of financial reporting, particularly with respect to large natural catastrophes and certain large man-made losses, as significant uncertainties may be involved in estimating losses from such events and preliminary estimates may be subject to change as new information becomes available;

• legal actions or regulatory investigations or actions, including in respect of industry requirements or business conduct rules of general applicability;

• the outcome of tax audits, the ability to realize tax loss carryforwards and the ability to realize deferred tax assets (including by reason of the mix of earnings in a jurisdiction or deemed change of control), which could negatively impact future earnings, and the overall impact of changes in tax regimes on the Group’s business model;

• changes in accounting estimates or assumptions that affect reported amounts of assets, liabilities, revenues or expenses, including contingent assets and liabilities;

• changes in accounting standards, practices or policies;

• strengthening or weakening of foreign currencies;

• reforms of, or other potential changes to, benchmark reference rates;

• failure of the Group’s hedging arrangements to be effective;

• significant investments, acquisitions or dispositions, and any delays, unforeseen liabilities or other costs, lower-than-expected benefits, impairments, ratings action or other issues experienced in connection with any such transactions;

• extraordinary events affecting the Group’s clients and other counterparties, such as bankruptcies, liquidations and other credit-related events;

• changing levels of competition;

• the effects of business disruption due to terrorist attacks, cyberattacks, natural catastrophes, public health emergencies, hostilities or other events;

• limitations on the ability of the Group’s subsidiaries to pay dividends or make other distributions; and

• operational factors, including the efficacy of risk management and other internal procedures in anticipating and managing the foregoing risks.

These factors are not exhaustive. Swiss Re operates in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance on forward-looking statements. Swiss Re undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

This communication is not intended to be a recommendation to buy, sell or hold securities and does not constitute an offer for the sale of, or the solicitation of an offer to buy, securities in any jurisdiction, including the United States. Any such offer will only be made by means of a prospectus or offering memorandum, and in compliance with applicable securities laws.

Cautionary note on forward-looking statements

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Investor Relations contacts

Hotline E-mail+41 43 285 4444 [email protected]

Philippe Brahin Daniel Bischof Deborah Gillott+41 43 285 7212 +41 43 285 46 35 +41 43 285 25 15

Olivia Brindle Marcel Fuchs Zuzanna Prabucka+41 43 285 64 37 +41 43 285 36 11 +41 43 285 48 56

Corporate calendar & contacts

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Corporate calendar

202031 July H1 2020 Results Conference call30 October 9M 2020 Key Financial Data Conference call



Legal notice

©2020 Swiss Re. All rights reserved. You are not permitted to create any modifications or derivative works of this presentation or to use it for commercial or other public purposes without the prior written permission of Swiss Re.The information and opinions contained in the presentation are provided as at the date of the presentation and are subject to change without notice. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the details given. All liability for the accuracy and completeness thereof or for any damage or loss resulting from the use of the information contained in this presentation is expressly excluded. Under no circumstances shall Swiss Re or its Group companies be liable for any financial or consequential loss relating to this presentation.

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