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Investors’ DayZurich, 4 April 2018

Investors' Day | Zurich, 4 April 2018

Time Content Management

09:30 - 10:00 Registration

10:00 - 10:40 Update on Group strategy Christian Mumenthaler

10:40 - 11:00 Underwriting priorities Edi Schmid

11:00 - 11:20 Financial strength and capital generation John Dacey

11:20 - 12:05 Q&A session

12:05 - 13:15 Lunch

13:15 - 13:45 Reinsurance update and Q&A Moses Ojeisekhoba

13:45 - 14:15 Corporate Solutions update and Q&A Agostino Galvagni

14:15 - 14:45 Life Capital update and Q&A Thierry Léger

14:45 - 14:50 Wrap-up Christian Mumenthaler

Agenda – Investors’ Day 2018

2

Update on Group strategyChristian Mumenthaler, Group Chief Executive Officer

Investors' Day | Zurich, 4 April 2018 4

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

Client Access

RiskKnowledge

CapitalStrength

Reinsurance

•#1 global property reinsurer

• Top 2 global reinsurer

Corporate Solutions

• Top 5-10 in Excess Layer market

•Growing in Primary Lead segment

Life Capital

• Leading UK life & pension consolidator

• Leading L&H B2B2C platforms in core markets

P&C Reinsurance L&H Reinsurance

•#1 global reinsurer in High Growth Markets


…that represent a highly rewarding combination for shareholders

The strong value creation of our individual businesses… …has consistently produced peer-leading margins

Total contribution to Economic Net Worth (USD bn) US GAAP net operating margins average 2012-17

14% 7%

1.9

2016

4.2

2015 2017

6.3

2012

5.2

3.7

2014

5.2

2013

Ordinary dividends in

each year more than covered by economic

value creation

Reinsurance marketSwiss Re Group ¹

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

P&C Reinsurance L&H Reinsurance Corporate Solutions

Life Capital Group Items Ordinary dividends

UnderwritingInvestment Operating expenses


…to benefit P&C Reinsurance and Corporate Solutions

Current market environment improved

Improvements in P&C pricing…

…to benefit the return profile of our investment portfolioIncreasing interest rates…

Long-term opportunities remain

…we can access global risk pools through all Business UnitsRisk pools continue to grow…

…we are the #1 global reinsurer in High Growth MarketsOpportunities in High Growth Markets…

…we develop innovative solutions to increase insurance coverage

Protection gap still expanding…

We are benefiting from a more positive current environment and promising long-term opportunities

5%overall market growth

expected1

8% market growth

expected in High Growth

Markets1

6

¹ Source: Swiss Re Institute; expected premium growth per annum in reinsurance in nominal USD terms over the next five years


P&C Reinsurance’s strong track record of generating shareholder value leads the industry

7

UnderwritingInvestmentOperating expenses

Strong new business profits driven by P&C Reinsurance’s leading client

platform

Peer-leading underwriting

margins are driven by both, capital

allocation (beta) & risk selection (alpha)

…resulting in peer-leading margins

19%

P&C Reinsurance L&H Reinsurance Corporate Solutions Life Capital

0.3

1.2

1.5

1.7

1.2

2017

-1.5

20162015201420132012

USD 4.4bn EVM new business

underwriting profit since 2012

¹ Based on weighted average of P&C Re segments of Munich Re, Hannover Re, SCOR, Everest Re and Alleghany

EVM profit – new business (USD bn)

Economic underwriting profits in excess of EVM capital costs...

US GAAP net operating margins average 2012 - 17

15%

Swiss Re P&C Re P&C reinsurers 1



Swiss Re L&H Re L&H reinsurers1

EVM profit – new business (USD bn)

L&H Reinsurance’s franchise value continues to increase

8

Strong new business profit

mostly from EMEA and Asia reflecting

the Group’s increased footprint

Outperformance vs. market supported by decisive and timely

management actions on underperforming blocks of business


10% 6%

Economic underwriting profits in excess of EVM capital costs...

US GAAP net operating margins average 2012 - 17

1.01.1

0.7

0.5

0.60.6

201720162013 20152012 2014

USD 4.5bn EVM new business

underwriting profit since 2012

¹ Based on weighted average of L&H Re segments of Munich Re, Hannover Re, SCOR and RGA

…resulting in peer-leading margins


UnderwritingInvestmentOperating expenses


Swiss Re’s reinsurance client franchise represents the biggest source of our competitive advantage

9

We have strong direct relationships with our customers…

% of premiums from non-intermediated business,

FY 2017

P&C Reinsurance L&H Reinsurance EVM profit - new business (USD m)

Client example

Swiss Re

APAC

Americas

EMEA


51% 96%

0

100

200

300

400

500

600

700CAGR 11%

20172016201520142013201220112010

L&H ReinsuranceP&C Reinsurance

Direct relationships drive our access to large & tailored transactions

…with distinct client interactions


Underwriting year (UWY)

Commercial insurance has been an attractive business for our shareholders, generating long-term underwriting profits in excess of EVM capital costs

10

Swiss Re wrote commercial business with EVM underwriting profits in excess of capital costs of > USD 2bn since 2000

Commercial business premiums grew with a compounded annual growth rate of 10%


This translates into an average annual EVM profit in excess of EVM capital costs of USD 125m

Underwriting performance of Swiss Re’s commercial insurance business¹, USD bn

World Trade Centre

Carve-out of Corporate Solutions as separate BU

1.6

0.4

2003

1.6

0.4

2002

1.3

0.4

2001

1.0

-1.0

2000

0.7

-0.3

2017

3.8

-0.6

2016

3.8

0.0

2015

3.5

-0.2

2014

3.6

0.3

2013

3.5

0.3

2012

3.1

0.3

2011

2.5

0.2

2010

2.3

0.3

2009

2.0

0.2

2008

2.2

0.2

2007

2.3

0.5

2006

1.7

0.6

2005

1.5

0.0

2004

HIM, California Wildfires

Earthquake Chile

Earthquake Japan

Hurricane Katrina, Rita, Wilma

¹ Reflects commercial business written by underwriting year, gross of intra-group retrocessions, net of external cessions; excludes commercial business written in derivative form

EVM gross premiums written

EVM profit - underwriting

Average annual EVM profit


USD >5bn reserves left in Reinsurance

when carved-out in 2012

TFC impact from positive reserve developments of

7%pts on average per year

11

Corporate Solutions’ performance has been attractive, in particular when considering the total financial contribution

Total financial contribution (TFC) refers to the estimated contribution of Corporate Solutions business written within Swiss Re Group, incl.

• development of historical loss reserves remaining in the Reinsurance BU after the carve out from Reinsurance in 2012

• related investment income and additional tax expenses

UnderwritingInvestment Operating expenses

Total financial contribution (TFC) impact

Corporate Solutions as reported

Corporate Solutions total financial contribution

US GAAP - Net operating margins, average 2012-17

6%

16%

+3%pts

+7%pts

TFC impact from investment

income on reserves of 3%-pts on average

per year




Corporate Solutions has comparably strong TFC

underwriting margins

Investments into future growth drives higher

expense margins compared to peer average

12

Net operating margins compare favourably versus peers, driven by a strong underwriting margin

UnderwritingInvestment

15%42% 23% 21% 9%18%11% 17% 10% 7% -19%

Operating expenses

2013 2014 2015 2016 20172012

6%

Corporate Solutions

Peer average1

US GAAP net operating margins incl. TFC on average 4%pts above peer average


Corporate Solutions

Peer average1

Corporate Solutions

Peer average1

Corporate Solutions

Peer average1

Corporate Solutions

Peer average1

Corporate Solutions

Peer average1

¹ Based on the weighted average of reported results of six Corporate Solutions peers



ReAssure maintains a market-leading closed book platform in the UK

13

ReAssure’s closed book transactions track record

Life Capital’s dividend stream is driven by the closed book business(USD 3.8bn since 2012)³

5

4

3

2

1

0

Policy count (in million)

2017120162015201420132012201120102009200820072006200520042003

Current closed bookTransactions

USD bn

ReAssure is a major cash

generator of the Group

Recent transactions delivered a

return average of >12%

MS&AD participation2

increases ability to pursue further

closed book transactions

1.1

0.40.40.40.4

1.1

201720162015201420132012


Funding from Group for Guardian

transaction in 2016:

USD 1.6bn

¹ L&G transaction pro-forma, reinsurance agreement effective from 1 January 20182 Announced in October/ December 2017; completed in January 20183 For FY 2012- 15 published results refer to Admin Re®



Life Capital businesses capture growth opportunities in attractive primary L&H risk pools

14

The protection gap in sum

assured terms is > USD 100trn and growing

Positive customer journeys and cost leadership remain key differentiators

B2B2C platforms delivering

dynamic growth


Gross premiums written, life insurance business (USD m)

elipsLife premium volume

¹ Cumulative numbers do not include acquired portfolios


iptiQ new policies development

0

100

200

300

400

500

20102008 20142012 2016 2018

# new policies written, cumulative¹

201820172014 2015 2016


Our near-term priorities remain unchanged

15

broadenand diversify client

base to increase access to risk

optimise resources and

platforms to support capital allocation

systematically allocate capital to risk pools / revenue streams

emphasise differentiation

I

II III

IV

Growth

through systematic capital

allocation

Risk Knowledge

supporting capital allocation

Large & tailored transactions

Corporate Solutions

Life Capital

High Growth Markets

Research & Development

Technology

Swiss Re’s strategic framework Near-term priorities

We are a risk knowledge company that invests in risk pools

People & Culture

RoE ≥ risk free

+700bps

ENW per share growth

+10% p.a.

Group financial targets over-the-cycle


R&D builds on our thought leadership position, bringing us closer to the needs of our clients

Insurance “beta”

Target Liability Portfolio

Strategic Asset Allocation

R&D improves top down capital allocation leading to outperformance

50-60%

Estimated annual underwriting outperformance:

>USD 1bn1

Product design

Product pricing

Underwriting criteria

How R&D drives value at Swiss Re:

40-50%

Client services

Thought-leadership publications

Curated data

Cost efficiency

Business process disruption & improvement

R&D improves risk selection and further portfolio steering given allocation

R&D provides services and thought leadership enabling higher pricing

R&D provides new ideas to reduce the cost of generating a given unit of revenue

~450 FTE in 13 R&D teams

Insurance “alpha”

>200 R&D initiatives

ongoing (50% focusing on technology)

¹ Based on average annual gross underwriting margin outperformance vs. peers in the last five years

16


Advances in technology are impacting the insurance value chain and reshaping the competitive landscape

Today Tomorrow

Impact of technology on insurance

17

Limited demonstrated business impact but heightened interest and hype

Long-term fundamental changes to the insurance value chain

Blurred industry boundaries and shifting insured risks (from personal to commercial lines)

Digitalisation improves the

design and pricing of new and

existing insurance products

Insurers expected to leverage new technology to acquire new

customers, improve underwriting and

increase efficiency


We remain focused on improving our business and developing solutions for ourselves and our clients to secure access to risk pools through our business segments and strategic partnerships


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

18

1 2

34

OUR CLIENTS OURSELVES

OUR EXPOSUREOUR DATA

Examples: Magnum, Life Guide, CatNet, Liability Risk Drivers

Swiss Re tech strategy

Examples: ATLAS, digital claims, document intelligence

Examples: iptiQ, elipsLife, dynamic parametric pricing platform, Pulse Example: Stargate platform

Increase our clients’ competitivenessProvide tools and solutions for clients’ value chains

Improve our value chainApply technology to Swiss Re’s value chain

Harvest full potential of dataBuild up competitive advantage from proprietary data

Get closer to riskSeek access to risk pools through tech platforms

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


Increase our clients’ competitivenessExample: Magnum is our market-leading automated underwriting solution for life & health

19

>10 millionapplications processed in

2017

>40 clients

worldwide

Available in 29 countries and 17 languages

Magnum Pure is our advanced, automated underwriting solution

Easily build and optimise the ideal customer journey and underwriting rules

Receive unprecedented insights into the underwritten business

Magnum Mobile offers innovative underwriting for mobile devices

Integrates into an agent’s or client’s insurance app

Enable their customers to be underwritten anytime, anywhere

Our solutions

Value for our insurance clients: Automation drives scalability

Consistent, predictable underwriting decisions

Risk management standards across channels and products

Rules-driven assessment, aligned to Swiss Re’s LifeGuide underwriting philosophy

Faster, efficient underwriting decisions

Shorter application times, quicker decisions, easy and secure reports & analytics

Easy creation of tailored rules, for smoother go-to-market

Magnum represents a tailored and integrated underwriting platform which delivers significant value to our clients and strengthens our relationship

1


OUR DATA OUR EXPOSURE

1


Improve our value chainSelected examples: We leverage scalable technology platforms to streamline internal processes

20

Multi-year effort to provide us with an industry-leading steering and reporting platform

2

ATLAS – New general ledger and financial steering capabilities

Our ambition is to have every piece of data fully digitised and automatically understood

Document intelligence

60 million contract pages

processed automatically

>15 million documents covered by intelligence

platform

Expand leadership position in terms of volumes and turnaround times of digitised bookings

Digital claims and technical accounting

80% of all client documents digitised by

2020 (43% today)

7 solutionsrunning on one single platform

>1.4million digitised

bookings by 2020

(~0.7million today)

90% process

standard-isation

5-dayclosing of quarters

Major roll out in 2018-2023

80%efficiency gains in processing

client documents by 2020(63% today)



2


Get closer to risk Example: iptiQ is our L&H B2B2C platform with industry leading end-to-end digital capabilities

21

Sales: digital front-end platform

Omni-channel: accessible from various devices

Data & reporting: integrated & automated management information reporting

Underwriting: industry-leading automated underwriting

A truly digital experience…

Self-service: empower customers to self-manage policies

Fully digital B2B2C insurance solution allowing “plug & play” with any client and partner, enabling vast consumer access and contextual sales

Live in 5 markets

12 distributors onboarded

Dynamic growth to continue

3

…with compelling competitive advantages

Cost efficient due to disintermediation of traditional insurance distribution and no retail distribution legacy

Knowledge based differentiation with industry leading R&D capabilities

Balance sheet strength of Swiss Re Group to support growth


OUR DATA OUR EXPOSURE3


External data Weather, IoT/wearables

Harvest full potential of dataExample: Stargate platform provides the opportunity to transform Swiss Re into a truly data-driven knowledge organisation

22

4

Stargate platform

Stargate platform accelerates the integration of Swiss Re’s data landscape

Data

Internal dataStructured/unstructured

Machine learning Data visualisation

Methodology

Analytics at scaleData integration/GDPR compliance

Upskilled workforce2 000 users by 2020

People

DemocratisationData and analytics

>50 initiatives across the group to be implemented by the end of 2019

Scalable enterprise wide platform for integrating, analysing & deriving insights on massive data sets




We are a risk knowledge company that invests in risk pools

23

• We have built leading (re)insurance businesses based on three differentiating factors: Client Access, Risk Knowledge and Capital Strength

• These businesses ensure access to growing risk pools in the long term

• The overall market outlook has improved for our P&C businesses and we will benefit from the positive momentum

• Our scale, access to clients, risk data and advanced platforms position us well to play a major role in the technological revolution in the insurance space

• Swiss Re’s tech strategy is embedded in our business strategy and is implemented with a combination of in-house developments and strategic partnerships


Underwriting prioritiesEdi Schmid, Group Chief Underwriting Officer


Competitive advantage achieved through underwriting priorities

25

Focus on consistently

achieving high underwriting

margins

Target liability portfolio

optimises capital allocation

R&D as basis for continued

underwriting outperformance

• Target liability portfolio as basis for active steering of deployed capital

• Sound capital allocation to the most attractive risk pools

• Investment into R&D

• Access existing and new risk pools

• Knowledge-based underwriting capabilities

Underwriting priorities

• Beta: Allocating capital to the right risk pools

• Alpha: Selecting better risks at better economics

• Forward-looking view on risk pools

• Smart analytics leveraging big data

• Broadly diversified underwriting book

Competitive advantage



4.4%pts difference

Outperformance in L&H Reinsurance has been pronounced

• Superior risk selection and portfolio steering drive outperformance in L&H Reinsurance

• Underwriting margin increased in 2017 in both, life and health segments

• Underperformance in 2014 is the result of decisive and timely management actions related to pre-2004 US individual life business

Swiss Re’s average 4.3%

Peers’ average -0.1%

PeersSwiss Re

1 Gross underwriting margin = 1- technical combined ratio = 1- (benefit ratio + acquisition cost ratio)Note: weighted average of peers, which include Hannover Re, Munich Re, RGA and SCOR.

Gross underwriting margin1 (L&H Reinsurance)

26

Key success factors

-5.0%

-2.5%

0.0%

2.5%

5.0%

7.5%

201320122011201020092008 2017201620152014


Long-term higher underwriting margins than peers in P&C

Gross underwriting margin1 (P&C Reinsurance and Corporate Solutions)

27

1 Gross underwriting margin = 1- technical combined ratio = 1- (loss ratio + acquisition cost ratio)Note: weighted average of peers, which include Alleghany, Everest Re, Hannover Re, Munich Re and SCOR

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

8.5%pts difference

Swiss Re’s average 17.2%

Peers’ average 8.7%

PeersSwiss Re

201320122011201020092008 2017201620152014

Key success factors

• Track record reflects superior risk selection (alpha) and active capital allocation (beta)

• Large & tailored transactions allowed for differentiated pricing

• Underwriting discipline maintained and expected to benefit from price improvements


Underwriting discipline and reserving linked via feedback loops, allowing reserves adequacy to remain strong

Reserving strength is demonstrated by being in the upper half of a range of best estimates

Possible distribution of P&C reserves (USD 53bn in 2017) Illustrative • Reserving process provides transparency on best estimate of ultimate claims

• Strong governance around reserving in all regions and lines of business, independently assessed at Group level to be in the 60th to 80th percentile of the best estimate range

• Reserves remain strong and resilient to inflation

• Strong feedback loops between underwriting, claims and reserving teams allow rapid update on reserves and pricing adjustment

• Reserving at Swiss Re is not a way of managing capital nor creating artificially high reserve buffers

mid-point

Swiss Re has robust reserving process and governance

Managing inflation

• Inflation drivers are closely monitored: medical costs, wages, social costs, other claims relevant items

• Claims inflation assumptions made in costing are included in initial reserves

• As experience emerges, costing assumptions are replaced by projections of experience and reflected in reserves

mid-point

60th percentile

80th percentile

Best estimate range

28


R&D in underwriting is a key contributor to Swiss Re’s success

29

Life

Focus of R&D in underwriting

Property

Specialty

Casualty

Health

Economic, legal, political, changes

Mortality trends

Lapse trends

Cyber

Climate change

Credit default probabilities

Ca

pit

al a

lloca

tio

n

Nat cat perils

Critical illnessR

isk

sele

ctio

n

Fo

rwa

rd-l

oo

kin

g v

iew

Morbidity trends

Liability Risk Drivers –

our forward looking

costing tool

Magnum –our automated

L&H underwriting

solution

Dynamic pricing

platform for parametric insurance

CatNet –our natural

hazards online information

tool

Diff

ere

nti

ati

ng

se

rvic

es




1 2

3


Measuring correlation between sea surface temperature and hurricane activity

Our focus areas in underwriting R&D address key market developments

• Correlation reflected in our proprietary nat cat model and considered in our costing and scenario assessment

• Incorporate research for better mortality improvement assumptions and life scenario assessment

• Recommendations on life underwriting practices with opioid use in the population

• Understanding which cyber scenarios constitute threats from an insurance point of view

• Developing methodologies to estimate exposure and insurance claims – for both explicit and non-affirmative cyber covers

• Adapt costing & business practice to address findings, e.g. exclusions of claims based on practices that lead to over diagnosis of non-critical disease status, or tighten range/description of diagnosis that lead to valid CI claims

Nat cat perils Critical illnessCyber

Sources: Nat cat perils: NOAA, Mortality trends: CDC, CI: Korea cancer statistics

Cyber extreme event analysis (example ‘malware epidemic’)

Mortality trends

Sea surface temperature anomaly

Assessing cyber extreme event scenarios and quantifying the insured loss (PML estimation)

Monitoring of medical practice and disease incidence rates to steer business performance

Assessing the growing impact of opioid epidemic in the U.S., Canada, UK, and Germany on mortality

30

Cancer incidence screeningDrug overdose death rates

0

20

40

60

80

100

120

140

0 3 6 9 12

# of years after start screening program

Female MaleAge-standardised

Th

yro

id i

ncid

en

ce

Ko

rea

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

% o

f a

ffe

cte

d i

nsu

red

s w

ith

(p

art

ial)

b

usi

ne

ss i

nte

rru

pti

on

at

da

y x

# of days to resolution

Assumed gradual recovery based on step-function approximation

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

1965 1975 1985 1995 2005 2015

De

gre

e C

els

ius

Monthly

3-yr running mean

0

5

10

15

20

25

30

35

2 0 0 1 2 0 0 6 2 0 1 1 2 0 1 6

De

ath

s p

er

10

0,0

00

in

th

e U

.S.

Year

15-24 25-3435-44 45-5455-64 65 and over

Age groups


R&D driven insights into risk pool performance to dynamically steer and shape our Target Liability Portfolio

31

Illustrative

47 portfolios owned by senior leaders, overseeing and

assessing performance of portfolios

Historical capital allocation versus market and UW

performance

Targeted approach for growth, profitability (margin) and risk

Strong insights into our positioning vs market, and core economics of each portfolio: EVM,

US GAAP, Risk

Portfolio-specific R&D quantifies future market

trends

UW = underweight; OW = overweight desirable neutral less desirable

1

Property Re

Non proportional

Americas

Name 1 OW OW OW/UWGrowth,

Profitability

2

Property Re

Non proportional

EMEA

Name 2 OW OW OW/UWGrowth,

Profitability

3Critical Illness

AsiaName 3 UW Neutral OW/UW

Growth,

Risk

4Property Commercial

AmericasName 4 UW UW OW/UW

Growth,

Risk

5 Liability Re Americas Name 5 UW Neutral OW/UWRisk,

Profitability

Target Liability Portfolio Historical positioning Current positioning

No.

Future attractiveness

Target weightingLOB and RegionUS GAAP

returnRisk impact

Premium

trends

Actual vs expected

performance

Portfolio

Owner

Portfolio

weighting

Economic

return

Loss

trends

Portfolio

weightingPriority


Nat cat – Long-term growth through active portfolio management and distinctive R&D

32

Disciplined growth and capital deployment over the cycle…

Premiums earnedCAGR 8%

20172015201020051999

…and market leading R&D behind consistent underwriting success

2017

2015

2010

2005

1999

20

18

16

12

14

10

8

22

6

4

2

0

USD bn

1999-2017

Premiums1

Incurred loss

Expected loss

Premiums1 / Expected loss

EVM capital deployed

EVM capital deployed, USD bn

Premiums1/Expected loss

Note: Data is presented on an underwriting year basis for P&C Reinsurance. The chart shows Cat XL business. There is additional Nat cat exposure in proportional and per risk treaties1 Gross premiums written net of commissions


US Liability – Recent growth through tailored transactions followed by strong push for rate improvements

33

US Liability reinsurance, underwriting year view

EVM gross premiums earned,USD bn

1999

Loss ratio %,Premium rate (1999=100)

2015 201720102005

Rate index 1

Gross premiums earned

Loss ratio

Note: Data is presented on an underwriting year basis for P&C Reinsurance 1 The Council of Insurance Agents & Brokers (CIAB) rate change, General Liability

• Disciplined underwriting with increased focus on profitability and risk management

• Rate improvement at 1/1/2018 renewals and further rate increases expected

• Mid-market growth envisaged as large verdict trend against large corporations continues

• Liability reserves remain strong

Grew significantly in hardening market

Contracted quickly, underweight in 2011

Grew in response to positive rate development

Grew mainly through tailored transactions


Corporate Solutions Property – Solid underwriting performance driving long-term profit

1 EVM gross premiums written by underwriting year, gross of intra-group retrocessions, net of external cessions2 The Council of Insurance Agents & Brokers (CIAB) rate change3 Loss ratio calculated as claims / gross premiums written

34

…with strong loss ratio performance

Rate index2

EVM GPW1, USD m

2017201520102007

0

100

50

201720102007

Loss ratio3, %

Man-made loss ratio

Total loss ratio

2007-17: Average economic profit margin: 13%,Economic profit: >USD 1bn

Strong technical underwriting: average loss ratio < 50%

Swiss Re Group-wide balance sheet absorbs nat cat volatility where economically attractive

Active cycle management – long-term growth goal based on strict underwriting disciplineEVM gross premiums written

Rate index2

Disciplined market participant…


Critical Illness (Asia) – Profitable, strong growth market made possible by proprietary R&D

EVM profit,USD m

EVM premiums1,USD m

201720152010

EVM profit EVM premiums

35

Creating a new, profitable and growing market

Market leading R&D in critical areas

Over-diagnosis through emerging technologies (e.g. liquid biopsy)

Early warning system (e.g. detect trends in big data)

Global standards benchmarking

Secular demand growth from mega-trends (e.g. emerging middle class)

Technically demanding product

Margin management capability (e.g. differentiated risk charge per market)

1 PV premium for new business on EVM basis (net of all reinsurance)

Strong underlying strategic fundamentals


As a knowledge company we invest in R&D which continues to be the basis of our underwriting outperformance

36

• Active monitoring of performance and trends to allocate capital to most attractive risk pools

• Advanced research and modelling capabilities to enhance risk selection

• Leverage technology to develop industry leading practices and tools

• Develop forward-looking perspective on risk pools

36

Optimise capital

allocation

Ensure access to existing and new risk pools

Create client value through differentiated

services


Financial strength and capital generationJohn Dacey, Group Chief Financial Officer


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

38

Group targets over-the-cycle

actual 700 bps above 10y US Govt. bonds

10.6%

13.7%

Over-the-cycle target

2017201620152014

10.5%

2013

13.7%

2012

13.4%

Rf + 700 bps1

10.8%

2017 Over-the-cycle target

20162015201420132012

10%

Group Return on Equity Group ENW per share growth2

actual target

9.4%

11.0%

1.0%

5.4%7.2%

9.4%9.2%

9.6%9.4%

8.8%10%

17.0%

24.6%

10% 10% 10% 10% 10%

• Group ROE was below the over-the-cycle target in 2017, reflecting USD 4.7bn of estimated losses from natural catastrophes

• Group ENW per share growth target achieved in 2017, driven by a strong performance of our L&H businesses and investment activities

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)


(600)

(400)

(200)

0

200

400

600

800

As reported Pro forma 2018 rules (estimated)

2016

Higher volatility in US GAAP reported earnings expected due to accounting changes

39

• US GAAP “available-for-sale” classification for equity securities and certain alternative investments (AI) no longer applicable starting in 2018

• All unrealised gains on equity investments were transferred to retained earnings as of 1 January 2018

• The Group’s net realised gains will fully reflect the impact of equity market movements going forward

• Approx. USD 4.8bn of the Group’s investments impacted by the new standard, in addition to USD 1.8bn existing fund investments where the change in market value is already recognised in earnings

• A 10% downward move in fair values for the combined exposure of USD 6.6bn would reduce pre-tax earnings by approx. USD 0.6bn (net of hedges)

Impact of US GAAP rule change on equities and AI investment resultUSD m

Portfolio segments in scope for the rule change

USD mEnd

FY 2017Equity securities 3 326

Private equity 1 382

Hedge funds 359

Real estate 4 091

Principal Investments 2 422

Equity securities 539

Private equity 1 883

Total market value 11 580

Partially impacted

Fullyimpacted

2015 2017

Equity / AI investment result


Our capital management priorities remain unchanged

• The Board of Directors will propose to the AGM 2018 a regular dividend of CHF 5.00 per share (3% increase)

• The Board will also propose to the AGM a further public share buy-back programme of up to CHF 1bn purchase value commencing at the discretion of the Board subject to AGM approval1

• Beyond Board approval1, considering the capital management priorities, there will be no other pre-conditions to the commencement of the proposed share buy-back programme

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 & profitability requirements

IV. Repatriate further excess capital to shareholders

Swiss Re’s capital management priorities

Capital management actions

SST 17262%

SST 18269%

Group SST ratio

AA-/Aa3/A+

RatingPayout

ratio 47%

USD 7.7bn2

ordinary dividend (FY 13 to FY 17)

AcquisitionsBusiness reinvestments

USD 6.7bnspecial dividend &

buy-back(FY 13 to FY 17)

ExtraordinaryPayout ratio 41%

3

4

4

I II

IIIIVCapital management priorities

1 Subject to legal and regulatory requirements being satisfied2 Includes AGM 2018 proposal for ordinary dividend of CHF 5 per share3 Includes AGM 2018 proposal for share buy-back programme of up to CHF 1bn purchase value4 Payout ratio calculated as capital repatriation over GAAP net income; assumes AGM approval of the proposed ordinary dividend of CHF 5.00 per share


Our Group’s capital position remains very strong, even after significant losses from natural catastrophes and continued peer-leading capital repatriation to shareholders

41

• Group economic solvency remains very strong, comfortably above the Group’s capitalisation target of 220%

• Group SST 2018 ratio reflects proposed capital management actions (increased ordinary dividend and new public share buy-back programme3)

• Swiss Re remains well positioned to respond to market opportunities

50.1 51.3 52.3

22.5 22.8 23.2

261% 262% 269%

0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2016 2017 2018

USD bn, %

SST RBC – MVM2

SST TC – MVM2

Group SST ratio calculation1:

SST target capital (TC)SST risk-bearing capital (RBC)

USD 5.3bn MVM USD 5.2bn MVM USD 5.9bn MVM

1 SST ratio calculation as defined by FINMA2 MVM = Market Value Margin = cost of capital of the present value of future regulatory risk capital associated with the portfolio of assets and liabilities3 Pro-rata share of USD 0.8bn of 2018/2019 public share buy-back programme used for SST


Group SST sensitivities

Estimated impact on Group SST ratio 2018

267%

Credit spreads (-50bps)

Interest Rates (+50bps)

Equity Markets (+25%)

Equity Markets (-25%)

Interest Rates (-50bps)

Credit spreads (+50bps)

Real estate (-25%)

Real estate (+25%)

271%

259%

277%

276%

263%

264%

274%

Our capital strength remains resilient to market movements

42

Group SST target capital 2018, USD bn

Group regulatory capital requirement

10.1

7.7

12.0

3.2

13.1

19.9

3.3

23.2SST target capital

Other impacts

Total risk (99% TailVar)

Diversification

Credit

Financial market

Life and health

Property and casualty

220% Group SST target

capitalisation

269% Group SST

2018


Swiss Re maintains a leading capital position in the reinsurance sector and industry

43

Group SST to Solvency II walk1

329%

269%

Group Solvency IIratio

Deferred taxesEligibility of capitalValuation (discounting)

Modelling differences

Risk measure (1-year risk)

Group SST ratio 2018

Average of insurers3

Average of reinsurers2

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

• Due to important differences, Solvency II equivalent ratio is significantly higher

• For 2018, our comparable Group Solvency II ratio is estimated to be >40%pts higher than our Group SST ratio

239%

210%

>310%

1 Comparison was produced on a best effort basis using Swiss Re's SST calculation for 2018; For more details on differences between SST and Solvency II please refer to our “SST vs. Solvency II – comparison analysis” published on our website (http://media.swissre.com/documents/2016_sst_presentation.pdf). Please note that the difference from “capital cost recognition” has been eliminated in 2017 with FINMA's change in SST ratio definition. Differences between SST and Solvency II also explained in the booklet “Measuring economic performance & solvency at Swiss Re” published on our webpage.2 Average of Munich Re, Hannover Re, SCOR3 Average of Allianz, Aviva, Axa, Generali


Economic net worth creation is at the core of our steering framework…

Economic Value Management (EVM) is Swiss Re’s integrated economic valuation and accounting framework for planning, pricing, reserving & steering our business:

EVM allows consistent performance measurement across product lines and asset investments (on a risk adjusted basis, i.e. post cost of capital)

EVM ensures that costing and ALM is based on economic principles

Total shareholder return

performance is best tracked by

ENW generation

Consistent comparison of

economic returns across the Group supports active

portfolio steering

ENW per share growth vs total return to shareholders1 over time

44

1 Reflects share price development and dividends paid in USD. Shown on a cumulative basis and indexed from Dec. 2005 2 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 December 2005

Total return to shareholders

0%

50%

100%

150%

200%

250%

300%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ENW per share growth2



21.317.0

11.8

2.5

1.7

14.3

0.9 3.4

6.9

yearly avg. per share

45

...and drives our strong solvency capital generation

1 Available capital: SST RBC – MVM, excluding projected dividends and share repurchases. Swiss Re’s economic target capital: 220% x (SST target capital – MVM), internal economic target as defined by Swiss Re’s Board of Directors in the Group Risk Policy2 Includes change in other EVM items (including foreign exchange impacts on ENW), change in MVM and change in other SST valuation differences with EVM3 Includes foreign exchange, interest rate and other impacts on Swiss Re’s economic target capital on a best effort basis4 Includes the sum of paid (2014 – 2017) and projected (2018) dividends and public share buy-backs

Change in available capital¹ Change in economic target capital¹

Swiss Re’s Solvency capital generation – five year aggregated view from Group SST 2013 to 2018

CHF 12 CHF 10 CHF 7 CHF 8

Net solvency capital

generation

Total contributionto ENW

Gross solvency capital

generation

Capacity deployment

(capital allocation)

Other items²

Other items³

Change in excess capital

Capital repatriation4

Change in suppl.capital

• Solvency capital generation is based on Swiss Re’s Group SST capitalisation target of 220%

• Gross solvency capital generation is a long-term proxy for reinvestment and dividend capacity

• Net solvency capital generation measures how much capital is available for capital repatriation after reinvestments into the business

• Change in excess capital highlights disciplined capital management with average annual share repatriation of CHF 8 per share

More details on following slides


Solvency capital generation is directly linked to Swiss Re’s economic reporting (EVM)

Published 2017 EVM income statement1

46

6.3 5.2 3.7 4.21.9

2013 2014 2015 2016 2017

Take a look at the booklet “Measuring economic performance & solvency at

Swiss Re” on our homepage

2016 2017

USD bn

Total contribution to ENW

FY 2013-17

21.3

1 As published on page 57 of Swiss Re’s 2017 Financial Report


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

47

Subordinated debtContinued focus on optimising capital structure and cost of capital

Continued focus on innovative, cost efficient contingent capital instruments at Group Holding level

Outlook

Contingent capital

Corporate Solutions

ReinsuranceGroup (SRL)

Life Capital

-3.4

-2.0

+2.73+0.62

+0.5

YE 2012 – YE 20171

• SST supplementary capital includes traditional funded subordinated debt and funded contingent capital instruments. In line with Swiss Re’s target capital structure, Swiss Re has reduced its traditional funded subordinated debt instruments by USD 1.5bn since YE 2012

• At the same time, the Group has significantly strengthened its financial flexibility through senior debt deleveraging and the issuance of USD 1.0bn contingent capital instruments at the Reinsurance level and USD 2.7bn pre-funded subordinated debt facilities at Group level (not counting as SST supplementary capital until drawn)

Established funding platforms in all Business Units to fund capital & liquidity requirements

Implementation and maintenance of target capital structure

Change in supplementary

capital Group SST 2013-181

- 0.9

Third party capital MS&AD’s commitment is currently utilised at 15%+0.7

Change in supplementary capital

1 Change in supplementary capital is calculated using YE 2012 and YE 2017 figures2 Reflects issuance of USD 1.0bn and redemption of USD 0.4bn3 Reflects pre-funded subordinated debt facilities, currently fully undrawn

USD bn

Letters of credit

Senior debt

In line with Reinsurance requirements

Support business growth in Life Capital in line with leverage targets

-6.9 +2.0


Investment into business (capital allocation) reflects our strategy and growth areas in a competitive environment

48

• Since 1/1 2013, the Group deployed capital of USD 6.9bn (at Swiss Re’s Group SST capitalisation target of 220%, net of FX and interest rate impacts and diversification)

• Capital was mostly deployed to L&H Reinsurance, Corporate Solutions and Life Capital

Capital allocation by business segments (incl. asset risks)USD bn


Corporate Solutions Life Capital

-9%

1/1 20181/1 2013

+40%

1/1 20181/1 2013

+49%

1/1 2013 1/1 2018 1/1 20181/1 2013

+101%

Capacity deployment Group SST 2013-18

6.9


Peer-leading capital repatriation supported by strong dividend upstream by BUs

49

USD bn

Capital repatriationGroup SST 2013-18¹

14.3

1 Capital repatriation includes dividends and share repurchases paid 2014-17 and projected for 20182 Capital repatriation includes AGM 2018 proposal for regular dividend and share buy-back programme of up to CHF 1bn purchase value, of which a pro-rata share of USD 0.8bn is used for SST

Swiss Re

Corporate Solutions Life CapitalL&H Reinsurance

Received capital contribution of USD 1bn in 2017

Received capital contribution of USD 1.6bn in 2016 for the

acquisition of Guardian

Ordinary dividends

Per share in CHF

7.7

4.854.604.253.85

Special dividends and share repurchases 6.5

3.304.404.155.00 3.40 3.80

in year paid

P&C Reinsurance

2.02.52.73.1

2017201620152014

0.70.40.30.0

20172014 20162015

0.20.30.20.7

201620152014 2017

1.10.40.40.4

2017201620152014

1.61.61.61.51.5

20152014 2016 2017 2018E2

1.21.11.11.51.6

20152014 2016 2017 2018E2


Swiss Re’s capital allocation aims to deliver sustainable shareholder value

• We invest in risk pools aiming to deliver industry-leading shareholder returns

• We remain committed to our financial targets and our capital management priorities are unchanged

• Our Group’s capital position remains very strong and resilient towards market movements

• Economic net worth creation is at the core of our EVM steering framework and drives our strong solvency capital generation

269% Group SST, comfortably

above our 220% capitalisation

target

CHF 8 per share of

annual average capital

repatriation since YE 2012

CHF 10 per share of

annual average gross capital

generation since YE 2012


ReinsuranceMoses Ojeisekhoba, CEO Reinsurance


Improvements in P&C reinsurance pricing

52

Current market environment improved

Increasing interest rates benefit our long tail lines in Life and Casualty

Long-term opportunities remain

We seek to benefit from a more positive current environment and promising long-term opportunities in the reinsurance market

Stronger global economic growth increases demand in and from primary markets

#1 global reinsurer in High Growth Markets, well positioned to take advantage of projected growth

Growth from innovative solutions to address the global protection gap

As a knowledge company we benefit from the growing importance of R&D and technology

Mortality protection gap > USD 105 trillion

5% overall market

growth1

1 Source: Swiss Re Institute, expected growth per annum in reinsurance in nominal USD terms over the next five years


Our engagement model is driven by identifying and responding to client needs

Global client

We tailor our level of engagement to clients’ individual needs and earning potential

Low touchclient

Client interactions over 12 monthsWe segment our clients based on

their stated needs

High touch with those clients who

value our services

Our deep understanding of client needs translates into

differential terms

We have strong direct relationships with our customers and brokers

236 distinct

interactions

1 516 distinct

interactions

High touchclient

% of premiums from non-intermediated business,

FY 2017


51% 96%

Increasing client engagement, knowledge sharing, premium and profit


Core Transactions Solutions

Differentiation is at the heart of what we do

54

Simplify and drive efficiencies in our

traditional business

Deliver innovative deals by combining our knowledge

and capital

Add value to clients’ original business by

providing tech enabled solutions

We access risk pools through the three pillars of our strategy

Differentiation


We are focused on continuing to improve the efficiency of our Core business

By simplifying processes, without compromising quality, we can focus on higher value-add deals and client services

Simplified L&H system landscapes

Digital harmonisation of L&H systems since 2007

10 regional landscapes

2007

10

2017

1

5

2010

4

2014

1 global landscape

• Simplified decision making, lower operational risk and reduced costs

Digitised and automated claims

Share of total P&C claims submissions processed automatically

• Reduced turnaround times and improved client experience

Simplified underwriting process in P&C

% of deals renewed with simplified

approach

45% 24%

Contribution of these deals to EVM

profit

Streamlined underwriting approach at 1/1 2018 renewals

• Increased efficiency in underwriting large numbers of smaller deals

2017

25%

2016

17%

2015

12%

2014

2%



2


We actively steer our P&C portfolio for growth and quality

Market price development

Property cat

Motor

General liability

Marine

Engineering

Credit & Surety

Aviation

Our success in 1/1 2018 renewals (largest 15 portfolios1)

1 Change between 1/17 and 1/18 renewals, size of bubble indicative of portfolio size by expiring premium 2 Long-Term Pricing Adequacy change3 EVM premium change4 Estimate for FY 2018, assuming an average large loss burden and no prior-year development

2% price increases in

1/1 renewals

8% volume growth

in 1/1 renewals

99% combined

ratio4

Pri

ce

ch

an

ge

2

Volume change3

Neutral Positive

Positive

Negative

Ne

utr

al

at 1/1 2018


We leverage our knowledge, capital and client relationships to address our clients’ needs with innovative, structured transactions

Transactions are an important contributor to earnings

Transactions EVM profit - new business

>170 transactions

closed in 2017

Designated resources help focus on deal

origination and execution

Demand for tailored

transactions remains strong

~30% average

contribution to our economic

profit over past 3 years

0

200

400

600

800 CAGR 11%

2017201620152014201320122010 2011

P&C L&H


We leverage technology in solutions to add value to our clients’ original business and value chain

Our innovation mind-set allows us to focus on commercialisation of proven solutions

Pilot / Proof of conceptWith clients and partners

DevelopmentBuild resources and

infrastructures

CommercialisationBring to market viable

solutions

Selected examples of commercialised solutions in P&C and L&H Reinsurance

Customer Retention

Management

Magnum

Claims Deep Dive

Automotive Solutions

Smart Homes

Liability Analytics

Parametric SwiftRe®

Life Guide



1


Deep dive on selected solutions

Parametric: Flight delay and nat cat protection insurance

• Sophisticated machine learning based pricing engine accurately prices flight delay risks and occurrence probabilities such as wind speed, rainfall & earthquake intensity

• Platform allows real-time steering and claims payments are fully automated

• Recent success: flight delay product launched in China with a major insurer, distribution is via WeChat

Life Guide: the L&H industry’s number one underwriting guide

• Life Guide is the industry’s #1 underwriting manual, used by 900+ companies with 9 000+ users in 100+ countries

• In 2017, underwriting professionals consulted Life Guide 20 million times, an increase of over 40% in the last five years

Customer Retention Management (L&H in-force)

• We offer strong interdisciplinary knowledge including customer analytics & propensity modelling, behavioural economics and targeted policyholder marketing campaigns

• Recent success: helped one large insurer to reverse its lapse trend, improving lapses by 13% and campaign results by >30%

Customer Retention

Management

Parametric

Life Guide



1


We have significantly grown and diversified our portfolio

Americas EMEA Asia

CAGR 10%

2017

14.24%

39%

3%

34%

7%

13%

2010

7.41%

50%

3%18%

16%

12%

HealthLifeSpecialtyCasualtyNat CatProperty

12%

24%

7%

11%

2010

7.8

12%

17%

21%

24%

16%

CAGR 6%

2017

12.1

11%

10%

35%

7%7%

2010

10%5%

23%

47%

10.3

2017

CAGR 18%

14%9%

20%

18%12%

27%

3.3

Portfolio developments 2010-17

EVM premium, USD bn

Overall portfolio CAGR of 10%

from 2010 to 2017

More balanced regional

portfolios

Increased diversification

of product lines


Material growth in L&H Reinsurance, increasing diversification of sources of earnings

L&H Reinsurance Asia key facts

20%30%

50%

CAGR 14%

2017

19.0

38%

30%

32%

2010

7.5

Americas EMEA Asia

Core: Health CAGR of 14% from 2010 to 2017

Transactions: accounted for ~40% of L&H Re Transactions1 over past 5 years

Solutions: Magnum – 150k mobile points of sale in China

Diversified mix of products across

durations and cash flow

generation

Asia: #1earnings contributor in L&H Re in

20171

Contribution from Core,

Transactions and Solutions

L&H Business split by regionEVM premium, USD bn

45%

33%

2017

17%

7.25%

Medical

Mortality Disability

Critical illness

Asia

1 EVM profit new business


Our differentiation strategy delivers improved economics

62

49% 54%42%

Differential terms are a strong contributor to our profits

Contribution of differentiation to total EVM profits

• We measure differentiation within our Globals and Large client segments

• Differentiation has grown to ~50% of our EVM profit

• Private deals through transactions are a strong driver of differentiation

201620152014

PrivateDeals

Share of Wallet

Volume

Preferential terms &

conditionsMargin

1

3

2 Share of business above a defined threshold

Deals with 100% share

Price and/or terms & conditions above market placement

Definition

Benefit of being considered as preferred partner and unique client access

Benefit of being considered as strategic partner and/or solution provider

Benefit of accessing business at better price or conditions

Rationale

We measure differentiation based on


Differentiation is at the heart of what we do in Reinsurance

• Current market environment is more constructive with positive long-term trends

• Our differentiation strategy positions us well for the future

- We are focused on improving the efficiency of our Core business

- We use our knowledge and capital to tailor Transactions to our clients’ needs

- Through Solutions we add value to our clients’ businesses and partner for growth

• We actively allocate capital to areas with superior returns and have increased the diversification of our earning streams



Corporate SolutionsAgostino Galvagni, CEO Corporate Solutions


Corporate Solutions remains key to Swiss Re’s growth strategy

Excess Layers

Primary Lead Domestic

Primary Lead International

Strategic

Tactical

Primary Lead

Drive the market post

Q3 2017 events

Increaseproductivity

Global Master Policies

Top 5 – 10

Entering now

Ready as from 2020

Entered in 2016

Historical performance Market position

Note: Total financial contribution (TFC) refers to the estimated contribution of Corporate Solutions business written within Swiss Re Group, incl. development of historical loss reserves remaining in the Reinsurance BU as well as related investment income, and additional tax expenses

-10

0

10

20

30

-30

-20

3.1%

11.7%

Reported ROE

ROE incl. TFC

2012 2013 2014 2015 2016 2017

%

2018 priorities

Average 2012-2017 reported ROE

Average 2012-2017 ROE incl. TFC

Average ROE incl. TFC

Average reported ROE


We are actively addressing the key underwriting performance drivers

66

%pts

Note: Large natural catastrophe and large man-made includes losses exceeding USD 10m threshold

21.7 20.8

14.8 15.2

56.7 57.5

28.7

7.2

21.7

13.6

51.8

10.3

1.093.2

0.8

-5.0

FY 2016

101.1

FY 2017

133.4

4.05.41.5

FY 2015

Admin expenses

Acquisition costs

Loss ratio (excl. large losses)

Large man-made impact

Large natural catastrophe impact

Prior-year development

Combined ratio decomposition

• 2017 unfavourable prior-year development driven by large man-made losses with accident dates in 2015 and 2016. The magnitude and responsibility for these losses were only established in subsequent years

• Positive development on Corporate Solutions historical loss reserves remaining in the Reinsurance Business Unit (~4-5%pts of combined ratio per annum)

Prior-year development

Outlook for key drivers

• To manage future volatility, the reinsurance programme has been enhanced with lower attaching per-event cover and the addition of an aggregate cover

Large natural catastrophe impact

• Portfolio pruned to address underperforming areas (e.g. re-underwriting liability lines in North America)

• Steady price increases expected across Corporate Solutions’ portfolio following 2017 loss events

Loss ratio (excl. large losses)

• Investment in growth represents ~3-4%pts of combined ratio per annum

• Focus on productivity maintained, with ambition to reach and maintain admin expense ratio below 20% by 2020

Admin expenses


Corporate Solutions has shown a disciplined performance within its peer-group

67

2012 2013 2014

2015

Corporate Solutions (Combined Ratio published)

Peers

Source: Swiss Re InstituteNote: Quadrants are determined based on average combined ratio and gross premiums compound annual growth rate (CAGR); premium growth & bubble size are in USD; Size of bubbles corresponds to GPW; From 2011-2014: Unchanged set of 8 peers, 2015: peer group reduced to 7 due to M&A. 2016: 10 peers, 3 players added to ensure comparison is representative of market

2016

Corporate Solutions (Combined Ratio incl. TFC)

2017

Gross premiums growth

Co

mb

ine

d r

ati

o

Average 2012 - 20172012 - 2017

112.8%

101.4%

90%

3% 14%-8%

Gross premiums growth

Co

mb

ine

d r

ati

o


We strive for differentiation in all our offerings

Our ”Claims Commitment”

ExcessLayers

Primary LeadDomestic

Primary LeadInternational

Innovation

Large net capacity

Leading brand

Top 5-10

Entered in 2016

Entering now…

…with Global Master Policies readiness targeted by 2020

USD 0.5bn additional Primary

Lead GPW production since

2015 vs. USD 1.0-1.5bn target

by 2020

Primary Lead International capabilities

rolled out in 9 countries

Primary Lead Domestic

capabilities rolled out in 18

countries

Differentiating factors of Corporate Solutions’ value proposition

Corporate Solutions’ market position

Note: 2016 total commercial insurance market premium of USD 720bn; Excess Layers and Primary Lead segments total market premium of USD 180bn1 Product related innovation2 Service related innovation

“We’re here to stay”

Financial strength

21


Primary Lead International has a high degree of operational complexity

Exposure informationCompliance informationPolicy issuance informationCash flow informationClaim informationMid-term exposure change information

Legend:

Client HQ

Broker HQ

Carrier HQ

Carrier subsidiary/network partner

6+

Types of information flows, including:• Exposures• Compliance• Policy issuance• Cash flows• Claims 20+ Countries to cover

150+Countries to serve (multiple languages, currencies, regulatory regimes)

350+per year

Operational interactions for a typical program covering one line of business

1-4Lines of business administrated

Information flow

Network Management

Compliance

FinancialManagement

$

Key complexities in Primary Lead International Illustrative example: Information flow for a typical International Programme


ProgrammeStructuring

Programme Transparency

KnowledgeManagement

Information Exchange

• Integration into underwriting systems enables fast quote and policy turn-around

• Online, real-time programme overview for clients and brokers via Swiss Re PULSE

Our technology platform, operating model, and service mind-set are key to managing high operational complexity

70

International Financial Management

International Network Management

International Desk • Competitive set-up facilitating timely quote and policy issuance

• Full compliance with regulations across jurisdictions

• Active monitoring of service levels

Market-leading technology platform

Specialised operating model

Client centricity • Client Commitment being launched to foster strong client service mind-set

• Net Promoter Score of 54 in 2016 for excess layer clients

Ambition to outperform

Ambition to match peers

Ambition to match/ outperform peers



2


Introducing PULSE, a secure digital portal enabling clients and brokers to manage risk and insurance needs

Video

Programme &policy overview

Claims services

Risk engineering services

Knowledge & industry insights

Weather & nat cat exposure

Monitors and manages insurance programmes from one secure online platform.

Insightful: easy accessto real-time policy, claim and risk improvement information

In control: review policies, submit loss notifications, track progress of a risk improvement or monitor natural hazard exposurefor risks worldwide



1


Latin AmericaNorth America EMEA Asia Pacific

Averageanticipated increase

% of total Corporate Solutions 2017 premiums

59% 10% 22% 9%

2018 anticipated rate increases in Corporate Solutions’ portfolio

• Magnitude, pace and duration of change are a function of current price deficiency and actual loss experience

• Medium-paced, steady increase expected for 2018 with the following underlying dynamics:

– Highest increase expected in property, followed by casualty and selected special lines (e.g. marine, engineering)

– Strongest price increases expected in large corporate segment followed by middle market and small and medium enterprises

We are well positioned to benefit from the expected gradual market turn

Note: Average anticipated increase is based on weighted average of total 2017 premiums

>10%

0%


Sustainable productivity improvements driven by a series of process and technology initiatives

73

• Core systems enhanced for Underwriting, Claims, Risk Engineering and Primary Lead business

• Emerging technologies leveraged (e.g. Text Mining, Artificial Intelligence, Robotics)

Improvements enabled by technology

• Alignment of business processes with complexities of product offerings

• Optimisation of work allocation across functions and locations

Process improvements

Example: Underwriting Front Desk Automation (FDA) Example: Lean Underwriting (LU)

• FDA automates the extraction of key submission information from emails into our underwriting processing platform, through scanning attachments via an algorithm

• LU introduces a faster and leaner end-to-end underwriting process for less exposed, middle market business

50%50%

Efficiency gainin Underwriting

process for deals in scope of LU

Productivity increase in submission

induction



2


Corporate Solutions remains a key part of Swiss Re’s growth strategy

74

• The challenges faced in 2017 are addressed in order to restore profitability

• Focus on driving the market post the 2017 nat cat events and increasing productivity

• Expansion into Primary Lead continues to be the strategic priority; technology-enabled service excellence is the differentiating element of our offering

• Transformational M&A opportunities remain a long-term option


Life CapitalThierry Léger, CEO Life Capital


Life Capital businesses provide Swiss Re access to attractive primary risk pools

76

Individual L&H Market GPWGroup L&H Market GPWUK Closed Book Market Reserves

BusinessUK life & pension closed book consolidator

Group protection solutions through intermediaries

White-labelled individual protection products through distributors

ProductsProtection, annuities, unit-linked insurance

Group life, disability, income protection Term life, whole life, disability, critical illness

Clients Insurers, banks, PE firmsPension providers, pension funds, corporates and affinity groups

Distribution partners

Source: Swiss Re Institute 2017; Reinsurance share of Group and Individual L&H risk pools indicative only

~ USD 440bn

14% 1%

~ USD 150bn ~ USD 300bn

4%

Total risk pool (market) Swiss Re share


Life Capital delivers a solid financial performance and increases GCG target for 2016-2018

77

• Strong GCG generated in 2016 and 2017, confirming ability to upstream significant cash to Group

• Additional closed book transactions expected to contribute to future GCG

• ROE movements in line with income performance, with 2016 benefiting from significant one-off gains

• ROE supported by new transactions at or above 11% Group hurdle rate

• ROE contribution from investments into open books to materialise in medium term

• Equity base impacted by significant unrealised gains

721543

945

521

998

0.6%

6.8%

2.2%

10.4%7.5%

Gross Cash Generation(GCG)

Gross Premiums Written

Return on Equity (ROE)

20172016201520142013

Financial performance Comments

8271 163

1 7611 4891 346

Closed Books / other Open Books

USD m unless otherwise stated

Selective growth

pursued for closed books

business

Open books expected to

maintain dynamic growth

USD 2.3-2.5bn of GCG

expected for 2016-2018


Growing ReAssure remains a key element of Life Capital’s strategy

78

GBP bn

95%

Oct 2017

13%3.8

Jan 2018

15%

85%

3.9

87%

3.55%

Feb 2018

MS&AD Swiss Re

2011 2014 2015 2017

Alico UK

Assets of GBP 1.6bn

HSBC UK Life

Assets of GBP 4.0bn

Guardian

Assets of GBP 12.5bn

Legal & General

Assets of GBP 33.0bn

Transaction track recordOne transaction closed on average every 18 months since 2012

MS&AD equity investment into ReAssure Transaction valued ReAssure at GBP 3.5bn

Strong transaction

track record: ~1 deal every 18 months

Proven integration capabilities

MS&AD participation

strengthens ability to pursue

transactions


elipsLife is transforming from a Swiss start-up to an international player

79

elipsLife footprint

Country Market entry

Market share1

CH 2009 ~3.9%

NL 2011 ~3.6%

DE 2017 <1%

IT 2017 <1%

IE 2018 <1%2

1 Refers to market shares for those business lines elipsLife is actively writing business in: mortality, accident and disability2 Excludes medex business3 2018 numbers subject to change: USD 400m refer to retained business from 2017 plus new business written at beginning of 2018; medex business excluded4 2018 insured lives number estimated; medex business excluded

Top line growth98% of 2017

business renewed for

2018

Leverage lean,

standardised platform to scale fast

On track with expansion into US, the largest single Group L&H market

Source: Swiss Re Institute

+23%

2018E

400

2017

325

+20%

2018E

1 200

2017

1 000

GPW in-force3

USD m

Insured lives4

000’s




2014 20172015 2016

iptiQ’s dynamic growth expected to continue

80

545

199

1 315

18

Policies

Ø weekly new policies sold @ year-end run rate

Distribution Partners

No. of partners / selected brands

Year

2 3 5 12

~2.7x

~2.4x

Sophisticated cloud based data models

Serving primary insurance clients

and other partners

B2B2C model attractive to

increasing number of distribution

partners




B2BB2C

81

Video



Evolution of capabilities

Life Capital transitions from closed book consolidator to dynamic primary B2B2C business

82

• Origination

• Integration

• GCG extraction

• Customer focus

• Cost leadership

• Enabling platforms

• Origination

• Integration

• GCG extraction

• Global open books

• Open > Closed books

• Ecosystem relevant

• Customer focus

• Cost leadership

• Enabling platforms

• Origination

• Integration

• GCG extraction

Yesterday

Today

Tomorrow

Pursue selective growth with

rigorous opportunity assessment

Continue focusing on

GCG extraction

Further optimise financing of

growth via 3rd

party capital

Wrap-upChristian Mumenthaler, Group Chief Executive Officer


We are a risk knowledge company which invests in risk pools

Swiss Re's tech strategy is embedded in our business strategy and is conducted in-house and through partnerships

§

OUR CLIENTS

1OUR-

SELVES

OUR DATA

OUR EXPOSURE

2

4 3

Our investments in R&D are key contributors to Swiss Re's underwriting outperformance

Life Capital is transitioning from a closed book consolidator into a dynamic B2B2C business

Differentiation is at the heart of Reinsurance’s disciplined growth strategy

Corporate Solutions is well positioned to benefit from market improvements and to pursue its expansion into Primary Lead

Primary Lead

Product-ivity

Pricing

Our Group capital position remains very strong and our ENW creation drives our strong capital generation

SST 2018

269%


Cautionary note on forward-looking statements

86

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 and acts of war;

• mortality, morbidity and longevity experience;

• the cyclicality of the insurance and reinsurance sectors;

• instability affecting the global financial system;

• deterioration in global economic conditions;

• the effect of market conditions, including the global equity and credit markets, and the level and volatility of equity prices, interest rates, credit spreads, currency values and other market indices, on the Group’s investment assets;

• changes in the Group’s investment result as a result of changes in the Group’s investment policy or the changed composition of the Group’s investment assets, and the impact of the timing of any such changes relative to changes in market conditions;

• 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;

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

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

• the outcome of tax audits, the ability to realise tax loss carryforwards, the ability to realise 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 business models;

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

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

• uncertainties in estimating reserves;

• 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;

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

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

• changes in accounting standards;

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

• changing levels of competition, including from new entrants into the market; and

• operational factors, including the efficacy of risk management and other internal procedures in managing the foregoing risks and the ability to manage cybersecurity 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.


Investor Relations contacts

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

Philippe Brahin Jutta Bopp Manfred Gasser+41 43 285 7212 +41 43 285 5877 +41 43 285 5516

Chris Menth Iunia Rauch-Chisacof+41 43 285 3878 +41 43 285 7844

Corporate calendar & contacts

87

Corporate calendar

201820 April 154th Annual General Meeting Zurich4 May First Quarter 2018 Key Financial Data Conference call3 August Half-Year 2018 Results Conference call1 November Nine Months 2018 Key Financial Data Conference call


Legal notice

88

©2018 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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