Zurich Insurance Group AG (OTCQX:ZURVY) Q3 2022 Earnings Conference Call November 10, 2022 7:00 AM ET Company Participants Jon Hocking - Head, Investor Relations and Rating Agency Management George Quinn - Group CFO Mario Greco - Group CEO Conference Call Participants Andrew Sinclair - Bank of America Merrill Lynch Kamran Hossain - JPMorgan Chase & Co. William Hawkins - KBW William Hardcastle - UBS Michael Huttner - Berenberg Andrew Ritchie - Bernstein Autonomous Dominic O'Mahony - BNP Paribas Exane Ashik M ...

Financial Data and Key Metrics Changes - The company reported its highest first half business operating profit since 2008, achieving a significant milestone despite challenging market conditions [3][4] - Business operating profit for Property and Casualty (P&C) rose 32% to $2.1 billion, with a record low combined ratio of 91.9% [5] - Life business operating profit grew by 13%, driven by underlying growth and a reduced level of COVID claims compared to the previous year [8] Business Line Data and Key Metrics Changes - P&C gross written premiums increased by 13% on a like-for-like basis, with commercial insurance rate increases of 9% remaining stable [5] - Farmers Exchanges' gross written premiums increased by 15%, supported by the inclusion of the MetLife business and organic growth [8] - The Life business maintained a focus on protection and unit-linked products, contributing to its strong performance [6][8] Market Data and Key Metrics Changes - The company added over 850,000 customers in the first half of the year, indicating strong customer growth [4] - The company received an upgrade to AAA in its ESG rating from MSCI, reflecting its commitment to sustainability [9] Company Strategy and Development Direction - The company announced a CHF1.8 billion share buyback to offset the earnings per share impact from the sale of its German life back book, aiming to reduce capital volatility [4] - The management emphasized a focus on transforming Zurich into a leaner, more agile insurer, primed for future challenges [4] - The company plans to discuss its ambitions for the next strategic cycle in November, indicating a forward-looking approach to industry transformation [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unprecedented market conditions driven by the war in Europe, higher inflation, and the lingering effects of the pandemic [3] - The company expects continued margin improvement in commercial insurance, with pricing trends remaining ahead of loss cost trends into 2023 [15] - Management expressed confidence in the company's positioning to lead industry transformation with sustainable products and services [9] Other Important Information - The company is implementing the new IFRS 17 framework, with a detailed explanation planned for a webcast [9] - The management highlighted the importance of customer satisfaction, with significant improvements noted in various markets [96] Q&A Session All Questions and Answers Question: Capital and Buyback Impact - A participant inquired about the capital sensitivity and the binding constraints on capital, particularly in relation to the share buyback [12] - The CFO responded that the company has plenty of flexibility regarding capital and does not expect significant constraints [13][14] Question: Proceeds from Back Book Deal - A question was raised about the earmarking of proceeds from the back book deal and potential M&A opportunities [18] - The CFO indicated that while there is flexibility, the focus remains on organic growth and execution of existing plans [20] Question: Inflation and Reserve Adjustments - A participant asked about the areas of reserve adjustments in light of inflation [25] - The CFO explained that while some adjustments were made, the overall impact was not significant, with a focus on maintaining a consistent approach [29] Question: Farmers' Margin Recovery Timeline - A question was posed regarding the timeline for Farmers' margin recovery [38] - The CFO indicated expectations for recovery by the end of the next year, with a focus on maintaining expense control [40] Question: Inorganic Capital Allocation Priorities - A participant inquired about the company's inorganic capital allocation priorities [62] - The CFO noted that while there are opportunities, the company has been cautious and focused on existing markets [66] Question: Tactical Reinsurance and Crop Rates - A question was asked about the tactical reinsurance strategy in the US property market and crop rate adequacy [69] - The CFO responded that while there is a desire to accept more risk, the company is also focused on limiting exposure to natural catastrophe risks [70]

Financial Data and Key Metrics Changes - The company reported a strong start to the year with top-line growth of 8% on a reported basis and 12% on a like-for-like basis, driven by the strength of commercial insurance [4][5] - The solvency test ratio improved to 234% at the end of the quarter, up from 212% at the beginning of the year, benefiting from a rising yield environment [6][7] Business Line Data and Key Metrics Changes - The property casualty business experienced a top-line growth of 8% on a reported basis, with North America showing particularly strong growth with gross written premiums (GWP) up 17% [4][5] - The life business continued to perform well, with strong growth in new business volumes, although the new business margin was lower than the previous year due to mix effects [5] Market Data and Key Metrics Changes - Rate increases in the commercial insurance sector were reported at 9% for the quarter, with some stabilization expected to continue into April [4][5] - Farmers Exchanges, owned by policyholders, grew GWP by 29%, benefiting from the inclusion of the acquired MetLife P&C business [5] Company Strategy and Development Direction - The company aims to exceed all targets for 2022, which is the final year of the strategic cycle, focusing on maintaining strong growth across all business lines [4] - There is a preference for commercial lines over retail lines due to current market conditions, with a cautious approach to new risks [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining margins despite inflationary pressures, citing a favorable rate environment and strong underlying growth [5][10] - The retail market is viewed as more challenging, with expectations for it to become more attractive in the future as rates catch up with inflation [13][14] Other Important Information - The company is actively managing inflation risks, particularly in short-tail lines, and is focused on ensuring that underwriting processes reflect current exposure accurately [18][43] - There is ongoing attention to social inflation and its potential impact on claims, with management noting that there is currently no evidence of a significant change in outlook [52][53] Q&A Session Summary Question: Confidence in loss trends and inflation impact - Management confirmed confidence in written loss trends despite elevated inflation levels, citing internal numbers that have historically been more pessimistic than market outcomes [10][11] Question: Insights on inflation and solvency - Management discussed the relevance of inflation risks, particularly in short-tail lines, and noted that the solvency ratio remains strong with no immediate changes expected [18][20] Question: Retail market outlook - Management indicated that while the retail market is currently challenging, there is optimism for future growth as rates begin to respond to inflation [13][14] Question: Crop insurance risks - Management explained that crop insurance is heavily influenced by commodity prices and government involvement, with risks being actively managed [66][69] Question: Underwriting margin trends in Europe - Management acknowledged that the 2% rate increase in Europe is below inflation rates, but noted that it does not currently pressure margins due to favorable loss-cost experience [58][59] Question: Operational cost inflation in the U.S. - Management highlighted that operational cost inflation is a challenge, but the U.S. team has managed it effectively through targeted increases for high-demand skill groups [60]

Financial Performance Highlights - Zurich Insurance Group's FY21 Business Operating Profit (BOP) increased by 35% to $5.7 billion, the highest since 2007[5, 67] - The Group's net income attributable to shareholders (NIAS) increased by 36% in 2021[81, 265] - Cash remittances for 2021 amounted to $4.4 billion[11, 62, 221, 256] - The proposed dividend increased by 10% to CHF 22 per share[6, 61, 71, 257] Business Segment Performance - Property & Casualty (P&C) gross written premiums (GWP) increased by 11% like-for-like[5, 69, 87, 228] - Life BOP increased by 27%, with new business value up 22% on a reported basis[6, 70, 240] - Farmers Exchanges GWP increased by 7% like-for-like[6, 70, 218] - Farmers Management Services BOP increased by 5% like-for-like[6, 70] Key Ratios and Metrics - The Group's Swiss Solvency Test (SST) ratio was 212% as of Q4-21, a 31 percentage point improvement compared to Q4-20[6, 71, 218, 221, 328] - The P&C combined ratio improved to 94.3%, the lowest in 15 years[5, 69, 213] - Net promoter score improved, with approximately 2.2 million net new customers acquired[5, 68, 213, 233] Strategic Initiatives and Outlook - The Group is on track to meet or exceed its 2022 targets[5, 67, 221] - The sale of the Italian life and pension back book is expected to add approximately 11 percentage points to the SST ratio[59, 252, 329] - The Group expects mid-to-high single digit growth in net earned premiums for P&C in 2022[84, 269]

Zurich Insurance Group AG (OTCQX:ZURVY) Q4 2021 Earnings Conference Call February 10, 2022 7:00 AM ET Company Participants Jon Hocking - IR Mario Greco - CEO George Quinn - CFO Conference Call Participants Andrew Ritchie - Autonomous Louise Miles - Morgan Stanley Peter Eliot - Kepler Cheuvreux Will Hardcastle - UBS William Hawkins - KBW Michael Huttner - Berenberg James Shuck - Citi Vinit Malhotra - Mediobanca Thomas Fossard - HSBC Dominic O'Mahony - BNP Paribas Henry Heathfield - Morningstar Jon Hocking Th ...

Disciplined execution drives strong first half performance Half year results 2021 August 12, 2021 Investor and media presentation Zurich Insurance Group Content MAIN SECTIONS (use symbols to navigate through the document) : 2 � ● | --- | --- | --- | |-------|---------------------------|-------| | | Key highlights | | | | Group results and outlook | | | | Property & Casualty (P&C) | | | | Life | | | | Farmers | | | | | | . Back to content page OTHER IMPORTANT INFORMATION (use symbols to navigate through the ...

Zurich Insurance Group AG (OTCQX:ZURVY) Q2 2021 Earnings Conference Call August 12, 2021 7:00 AM ET Company Participants Richard Burden - IR Mario Greco - CEO George Quinn - CFO Conference Call Participants Louise Miles - Morgan Stanley Peter Eliot - Kepler Cheuvreux William Hawkins - KBW Michael Huttner - Berenberg Ritchie Andrew - Autonomous Will Hardcastle - UBS Ashik Musaddi - JPMorgan Vinit Malhotra - Mediobanca Thomas Fossard - HSBC Richard Burden Good morning, good afternoon. Welcome to Zurich Insura ...

Zurich Insurance Group AG (OTCQX:ZURVY) Q1 2021 Earnings Conference Call May 12, 2021 7:00 AM ET Company Participants Richard Burden - Head, Investor Relations George Quinn - Chief Financial Officer Conference Call Participants Jon Hocking - Morgan Stanley Peter Eliot - Kepler Cheuvreux Andrew Ritchie - Autonomous Will Hardcastle - UBS Vinit Malhotra - Mediobanca James Shuck - Citi Michael Huttner - Berenberg Ashik Musaddi - JPMorgan William Hawkins - KBW Michael Haid - Commerzbank Hanif Farooq - Credit Sui ...

Zurich Insurance Group AG (OTCQX:ZURVY) Q4 2020 Earnings Conference Call February 11, 2021 7:00 AM ET Company Participants Richard Burden - Head of Investor Relations and Rating Agency Management Mario Greco - Group Chief Executive Officer George Quinn - Group Chief Financial Officer Conference Call Participants Jon Hocking - Morgan Stanley Peter Eliot - Kepler Cheuvreux Andrew Ritchie - Autonomous Farooq Hanif - Crédit Suisse Michael Haid - Commerzbank James Shuck - Citi William Hawkins - KBW Michael Huttn ...

Strong results, executing on strategic priorities Annual results 2020 February 11, 2021 Investor and media presentation Zurich Insurance Group Content MAIN SECTIONS (use symbols to navigate through the document) � � | --- | --- | --- | |-------|---------------------------|-------| | | Key highlights | | | | Group results and outlook | | | | Property & Casualty (P&C) | | | | Life | | | | Farmers | | R Group Functions & Operations and Non-Core Businesses Group solvency, balance sheet and dividend proposal Bac ...