Presentation
2023 Management Dialogues
Agenda
Time
09:30 - 09:45 09:45 - 10:10
10:10 - 10:30
10:30 - 10:45
10:45 - 12:15
12:15 - 13:30
|
Content |
Management |
|
|
Outlook and priorities |
|
|
|
Managing natural catastrophe risks |
Martin Bertogg, Philipp Rüede |
|
|
Finance and reserving update |
|
|
|
Break |
||
|
Dialogue with management |
All |
|
|
Lunch |
|
Management Dialogues 2023 |
2 |
Outlook and priorities
|
Management Dialogues 2023 |
3 |
Reinsurance is entering a more conducive market environment - not seen for over a decade
- While several macroeconomic, geopolitical and environmental challenges persist, the operating environment for reinsurers is materially more positive than in the past few years, driven by three principal factors:
P&C price hardening
Worldwide P&C reinsurance market prices1
|
100 |
|
|
80 |
|
|
60 |
|
|
2010 |
YTD |
|
2023 |
COVID-19 losses fading out
US deaths associated with COVID-192
|
2020 |
2021 |
2022 |
2023 |
Investment yields increasing
|
6% |
Recurring income yield |
5.1% |
|||||
|
5% |
Fixed income reinvestment yield |
||||||
|
4% |
|||||||
|
3.0% |
|||||||
|
3% |
|||||||
|
2% |
|||||||
|
1% |
|||||||
|
2018 |
2019 |
2020 |
2021 |
Q1 |
Q2 |
Q3 |
Q4 |
|
2022 |
2022 |
2022 |
2022 |
|
1 |
Source: |
Management Dialogues 2023 |
4 |
|
2 |
Source: |
||
Our 2023 Group net income target reflects the positive outlook across our businesses
USD
>3bn
US GAAP
net income
2023 target1
Enhanced P&C results
Expected earn-through of business written in 2022 as well as contribution from 2023 business support the reported combined ratio target of <95% in P&C Re and <94% in Corporate Solutions
Increased L&H Re profitability
Estimated normalisation of COVID-19 and reduced drag from our pre-2004 US book drive our USD ~900m L&H Re net income target
Recurring investment income uplift
Assuming continued reinvestment at higher interest rate levels, recurring investment income from fixed income securities would increase by USD ~400m in 2023
Continued cost discipline
Higher cost efficiency as well as streamlined organisational structure support ambition to maintain operating expenses flat in spite of premium growth
|
1 |
|
Management Dialogues 2023 |
5 |
Attachments
Disclaimer
Group Insurance Market is Thriving Worldwide with Latest Rising Trends | ICICI Prudential Life, Zurich, Aetna, Humana
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