Global Risk Briefing for AmbassadorsTour d’horizon of the changing risk landscape from a reinsurer’s perspective by Martyn Parker, Chairman Global Partnerships, 10 March 2016

Ambassadors Meeting | Rüschlikon, 10 March 2016

• Swiss Re is a leading and highly diversified global re/insurance group, with 70 offices in more than 30 countries

• Swiss Re offers traditional reinsurance products and related services for property and casualty, as well as for life and health businesses. The Group also offers Commercial insurance through Corporate Solutions and manages closed books of life business via Admin Re®

• Swiss Re has both a superior capital rating1, more than USD 100 billion of assets under management and more than 150 years of experience

Swiss Re is a leading and highly diversified global re/insurance group

P&C Re50%

L&H Re36%

Corporate Solutions11%

Admin Re®3%

EMEA AsiaAmericas

44% 34% 22%

Net premiums earned2 2015 (USD 30.2bn)by region … and by business segment

1 as at 2 March 2016: Standard & Poor’s: AA- (stable); Moody’s Aa3 (stable); A.M. Best: A+ (stable)2 Includes fee income from policyholders

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Ambassadors Meeting | Rüschlikon, 10 March 2016 3

VISION:

We make the world more resilient.

MISSION:

Together, we apply fresh perspectives,

knowledge and capital to anticipate

and manage risk. That’s how we

create smarter solutions for our

clients, helping the world rebuild,

renew, and move forward.

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Ambassadors Meeting | Rüschlikon, 10 March 2016

Our motivation : The growing protection gapNatural catastrophe losses 1970 – 2015 (in 2015 USD billion)

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Source: Swiss Re Economic Research & Consulting and Cat Perils.

0

50

100

150

200

250

300

350

400

450

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Uninsured losses (nat-cat)

Insured losses (nat-cat)

10-year moving average insured losses

10-year moving average total economic losses

Ambassadors Meeting | Rüschlikon, 10 March 2016

Closing the protection gap and providing solutions for emerging risks will improve global resilience

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Nat Cat: USD 1.3 trillion 2005-20141

Mortality:USD 105 trillion globally2

Casualty accumulation:

e.g. estimated US asbestos litigation costs USD 85bn3

Connected car: EUR 50bn market of telematics-based car insurance by 2020?5

Connected health: 20% market share for

wearables-based health insurance

products by 2025?6

Emerging risk pools

Protection gap

Sources: 1 Swiss Re Sigma 5/2015 2 Swiss Re Economic Research & Consulting 3 Guy Carpenter September 20154 ABI Research and Swiss Re estimate 5 Ptolemus Consulting estimate 6 Roland Berger estimate

Cyber: USD 10bn market by 2020?4

Ambassadors Meeting | Rüschlikon, 10 March 2016 6

VietnamAgriculture yield cover

Pacific Islands Earthquake and

tropical cyclone risk

UruguayEnergy

production shortfalls

due to drought

IndiaWeather insurance

for farmers

CaribbeanHurricane,

earthquake and excess rainfall risk

BeijingAgricultural risk

TurkeyEarthquake pool

Louisiana Hurricane risk

MexicoEarthquake/hurricane

and livestock risk

BangladeshFlood

insurance

African Risk CapacityGovernment drought

insurance pool

FloridaHurricane risk

United KingdomFlood risk

Shenzhen typhoon/rainfall Thailand

Crop insurance

• First dedicated public sector team in the reinsurance industry

• Over 200 closed transactions since 2006

• Develop insurance, reinsurance and capital markets solutions onall perils (natural disasters, weather risks, pandemics, etc.)

• Global footprint

• Pioneer in emerging and industrialised markets

Public-private partnerships to address the protection gap

Ambassadors Meeting | Rüschlikon, 10 March 2016

2015/16 floods in the UK –a reminder of why Flood Re is needed

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Ambassadors Meeting | Rüschlikon, 10 March 2016

S&P calculates potential sovereign rating impact of natural catastrophes

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0 0.5 1 1.5 2 2.5 3

Dominican Republic…Chile EQ

Bangladesh TCJapan EQ

Vietnam TCPeru EQ

Thailand FLTurkey EQ

Philippines EQDominican Republic…

Italy EQMexico EQ

Hungary FLIsrael EQ

Colombia EQNew Zealand EQ

Indonesia EQPortugal EQPakistan EQ

Philippines TCAustria EQMexico TCGreece EQ

Hypothetical rating downgrade in notches

Net rating impact (select cases with more than 1/4 notch impact)

Flood

Tropical Cyclone

Earthquake

Source: Swiss Re, Standard & Poor's calculations. © Standard & Poor's 2015.

S&P states:

“…natural disasters (earthquakes, tropical

storms, floods, and winter storms), which can be

expected once in every 250 years, can weaken

sovereign ratings”.

“Insurance coverage can act as a mitigant”

Ambassadors Meeting | Rüschlikon, 10 March 2016

Tailwinds – expectancy on the insurance industry

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“…promote mechanisms for disaster risk transfer and insurance …. in order to reduce the financial impact of disasters …”

“One way to mitigate the economic and ratings impact of natural disasters is catastrophe insurance.”

“Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all”.

“The G7 initiative on climate risk insurance aims to increase the number of people covered by this kind of insurance by 400 million by 2020”.

Ambassadors Meeting | Rüschlikon, 10 March 2016

New partnership with Veolia arising from 100 Resilient Cities initiative

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“Cities don’t just need money to pay for recovery. They need their infrastructure and services to be up and running”

Andrew Salkin, Chief Operating Officer, 100 Resilient Cities

• 100RC challenged Swiss Re and Veolia to develop a comprehensive solution to address the needs of cities covering both recovery of critical services and the required funding.

• Swiss Re, a leading reinsurance company, assists cities in understanding their risk exposures and risk transfer needs.

• Veolia, an international infrastructure company, manages and improves the infrastructure assets of cities in the energy, water and waste management.

Ambassadors Meeting | Rüschlikon, 10 March 2016

Swiss Re's commitment 2014 UN Climate Summit in NYC

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"By the year 2020, Swiss Re commits to have

advised 50 sovereigns and sub-sovereigns on

climate risk resilience and to have offered them

protection of USD 10bn against this risk."

Michel LièsCEO Swiss Re Group

Legal notice

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