Introduction to Zurich - A value proposition for investors - Zurich Insurance

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Introduction to Zurich - A value proposition for investors - Zurich Insurance
Introduction to Zurich
A value proposition for investors

April 2021
Investor Relations and Rating Agency Management
Group Finance
Introduction to Zurich - A value proposition for investors - Zurich Insurance
Content

           MAIN SECTIONS                                             OTHER IMPORTANT INFORMATION
           (use symbols to navigate through the document)            (use symbols to navigate through the document)

                   Group overview, strategy, and financial targets           Contact details and other information

                   Property & Casualty (P&C)                                 Disclaimer

                   Life

                   Farmers

                   Investments and capital management

                   Sustainability                                            Back to content page
© Zurich

                                                                                                                      2
Introduction to Zurich - A value proposition for investors - Zurich Insurance
GROUP OVERVIEW

           Our proposition to investors

                       RESILIENT                                                  RESPONSIBLE AND
                    BUSINESS MODEL                        CLEAR STRATEGY        IMPACTFUL BUSINESS

                            A balanced and diverse
                                                            Focus on customer        Tackling climate change
                            global business

                            Industry leading capital
                                                                                     Inspiring confidence in a
                            levels with conservatively      Simplify
                                                                                     digital society
                            managed balance sheet

                                                                                     Ensuring work
                            Attractive return on equity     Innovate
                                                                                     sustainability
© Zurich

                                                                                                                 3
Introduction to Zurich - A value proposition for investors - Zurich Insurance
GROUP OVERVIEW

           A truly global and highly diversified group

               KEY FACTS1                                                                                                A BALANCED GLOBAL BUSINESS2

                         USD 50bn             Total revenues (excl. result on UL investments)                                           BOP by business (%)                              BOP by region (%)

                       USD 226bn              Total group investments (economic view)                                                                                                           8%
                                                                                                                                         26%                                               6%
                                                                                                                                                                                                            32%

                        USD 4.2bn             Business operating profit (BOP)                                                                             45%

                        USD 3.8bn             Net income attributable to shareholders (NIAS)                                              29%                                               54%

                                  182%        SST regulatory solvency ratio2

                         USD 38bn             Shareholders’ equity
                                                                                                                                                                                          Europe
                                                                                                                                      Property & Casualty
                                                                                                                                      (incl. Farmers Re)                                  North America (incl. Farmers)
                         CHF 56bn             Market cap
                                                                                                                                      Life (incl. Farmers Life)                           Asia Pacific
                                                                                                                                      Farmers Management Services                         Latin America
© Zurich

           1   Values are for the full year 2020 unless otherwise noted. Investments, solvency ratios, shareholders’ equity and market cap are as of December 31, 2020.
           2   Adjusted average BOP for FY-16 to FY-20. BOP split by business excludes Group Functions & Operations and Non-Core Businesses. BOP split by region excludes additionally Group Reinsurance.

                                                                                                                                                                                                                          4
Introduction to Zurich - A value proposition for investors - Zurich Insurance
GROUP OVERVIEW

           Genuinely global franchise with distinct capabilities

                                                              NORTH AMERICA
                                                                          #4 in commercial insurance
                                                                          #2 in crop insurance                                                                     ASIA PACIFIC

                                                                          #6 in US personal lines                   EMEA                                                      #5 in P&C, #1 in Life retail
                                                                          through Farmers Exchanges2
                                                                                                                                                                              #2 in P&C direct
                                                                                                                    #4 insurance company overall
                         Top 3                                                                                                                                                #4 in P&C, #9 in Life
                         global                                                                                                                                               #6 in P&C3
                      commercial                                                                                                                                              #4 in P&C
                                                                      LATIN AMERICA
                        insurer1
                                                                      #3 in P&C

                                                                      #4 in Life

           Source: Axco, Company reports and presentations, local statistics (2020 or most recent available), Dowling & Partners, SNL Financial, Strategic Insight, Zurich internal data.
           1   Based on FY-20 NEP. Data includes only primary insurance and is on a more comparable basis. Zurich includes alternative markets in North America and municipal business in the UK and excludes SMEs.
© Zurich

           2   For all references to Farmers Exchanges see the disclaimer and cautionary statement.
           3   Pro-forma for the acquisition of Adira Insurance, based on FY-19 data.

                                                                                                                                                                                                                      5
GROUP STRATEGY AND TARGETS

           Simple execution, higher ambition

               2016 – 2019 ACHIEVEMENTS                                                                                      2020 – 2022 AMBITION

               SIMPLIFIED AND FLEXIBLE ORGANIZATION
                    Delayered structure                                                                                                                BOPAT ROE1                                  >14%
                    Simplified IT landscape
                    Simplified products and services

                                                                                                                                                       Cumulative cash
               IMPROVED EFFICIENCY
                                                                                                                                                       remittances                          USD >11.5bn
                   Over-delivered on USD 1.5bn savings program
                   Reduced corporate center expenses

               STRENGTHENED BUSINESS AND CULTURE
                   Strengthened position of our key countries
                                                                                                                                                       SST2                                       >160%
                   Improved the Commercial profitability
                   Built culture of customer focus and innovation
                   Reinvigorated growth with low earnings volatility                                                                                   Earnings per share
                                                                                                                                                       growth3                                    >5% p.a.

           1   Business operating profit after tax return on equity, excluding unrealized gains and losses.
© Zurich

           2   From FY-20 the basis for the target capitalization has been changed to the Swiss Solvency Test (SST), previously the target range was based on the Group’s internal Z-ECM basis.
           3   Before capital deployment.

                                                                                                                                                                                                             6
GROUP OVERVIEW

           Strong capital position and cash generation

               VERY STRONG FINANCIAL                                                     STRONG CAPITAL POSITION, GROUP                                            HIGHLY CASH GENERATIVE, CASH
               STRENGTH                                                                  SWISS SOLVENCY TEST 1 (%)                                                 REMITTANCE (USDbn)

                                                                                                                                                                                             3.7      3.8
                                                AA (very strong) /                       240%                                                                            3.9                                    3.4     3.4
                                                outlook ‘stable’                                                                       222%                                                           0.2               0.1
                                                                                                                              221%                                       0.5                 1.2
                                                                                                                     216%                                                          2.8                           1.2
                                                                                         220%                                                                                                          1.4              1.4
                                                                                                            204%                                                                   0.1
                                                                                                                                                                         1.5                 1.1
                                                                                                                                                                                   1.1                          0.9
                                                                                         200%      189%                                                                                                                 0.7
                                                Aa3 (excellent) /                                                                               182%                     0.9       0.4                 1.5
                                                outlook ‘stable’                          180%
                                                                                                                                                                                             2.5                2.3     2.3
                                                                                                                                                                         1.7       2.0
                                                                                          160%                                                                                                         1.5
                                                                                                                                                                                            -0.2                -0.1
                                                                                          140%                                                                          -0.6      -0.8                -0.8              -1.0
                                                A+ (superior) /                                                                                                                             -0.9                -0.9
                                                outlook ‘stable’                          120%                                                                         FY-15      FY-16    FY-17     FY-18     FY-19   FY-20

                                                                                         100%                                                                            1.8       3.2       3.0       3.7       4.1    3.8
                                                                                                   FY-15 FY-16 FY-17 FY-18 FY-19 FY-20

                                                                                                                                                                           Property & Casualty            Group Functions
                                                                                                                                                                           Life                           Non-Core Businesses
                                                                                                          SST
                                                                                                                                                                           Farmers                        Net income attributable
                                                                                                          SST target capital of ’160% or above’
                                                                                                                                                                                                          to shareholders

           1   Estimated Swiss Solvency Test (SST) ratio as of January 1, 2021, has been calculated based on the Group's Internal Model, which has been approved by the Swiss Financial Market Supervisory
© Zurich

               Authority FINMA. The SST ratio as of January 1 has to be filed with FINMA by end of April each year and is subject to review by FINMA. FINMA agreed to the use of standard yield curves for the main
               currencies to calculate the SST, starting end of Q1 2020. SST ratio as of January 1, 2020 has been re-calculated on the same basis for disclosure purposes in order to allow better comparison.

                                                                                                                                                                                                                                7
GROUP STRATEGY AND TARGETS

           We have adapted plans to the changed environment and
           expect to meet our 2020 – 2022 targets
            ILLUSTRATIVE BOPAT ROE DEVELOPMENT (%)

                                                                                                                                             ~15%
                                                                                                                         ~0.0-0.5%
                   14.2%
                                                                                                     ~2.0-2.5%
                                ~1.5-2.0%
                                                                                    ~0.5-1.0%
                                                 ~1.5-2.0%          ~1.0-1.5%

                   FY-19        Growth in    Investment income   Business growth   Productivity   Portfolio quality        Capital            FY-22
                               equity base                                                                            allocation / other   illustrative
© Zurich

                                                                                                                                                          8
GROUP STRATEGY AND TARGETS

           Actions during the crisis have earned the trust and confidence
           of our stakeholders, while our ESG approach is well recognized
               STRENGTHENED CUSTOMER FOCUS                                           HIGHER EMPLOYEE SATISFACTION                                           INDUSTRY LEADING ESG RATINGS3

                                          Retail NPS
                                            move2                                                        NPS place to work
                                                                                                                                                                                              ‘AA’ rating
                                      1
                                                       +3                                                        +22

                                                       +7
                                                                                                                                                                                       #1 in insurance group
                                                       +8
                                                                                                                                                                                               #3
                                                       +13
                                                                                                                                                                                     amongst industry peers
                                                                                                  Oct-19                     Jul-20
                                                       +3
                                                                                                                                                                                       Absolute score of 4.4
                                                                                      Support during COVID-19 crisis:
                                                       +2                                                                                                                                  (out of 5.0)
                                                                                      • Rapid move to working from home
                                                       +4                             • Implementation of new digital tools
                                                                                      • Hospitalization benefits for employees                                                        ‘A-’ Management Level
                                                       +3                               and their families

           1   For all references to Farmers Exchanges see the disclaimer and cautionary statements.
© Zurich

           2   FY-20 vs. FY-19. North America NPS data reflects commercial business.
           3   MSCI ESG rating report July 2020, DJSI score Nov 2020, Sustainalytics ESG Risk Report Dec 2020, FTSE Industry Classification Benchmark (ICB), Dec 2020, CDP Climate Change Score 2020.

                                                                                                                                                                                                               9
Property & Casualty
PROPERTY & CASUALTY

           P&C – our value proposition

            STRONG & BALANCED FRANCHISE              HIGH QUALITY EARNINGS                      WELL PLACED TO GAIN FROM
                                                                                                PRICING CYCLE

            • Leading global commercial insurer,     •   Consistent reserving approach          •   Focus on rate increases started
                profitable retail franchise              resulting in stable reserve releases       ahead of market
            •   Equally weighted to EMEA and North   •   Reduced catastrophe and large loss     •   Strong capabilities which are not
                America, with growing business in        volatility                                 easily replicated
                APAC and Latin America
© Zurich

                                                                                                                                        11
PROPERTY & CASUALTY

           A balanced footprint and business mix leveraging an open
           distribution architecture
               FOOTPRINT                                                BUSINESS MIX                                                 DISTRIBUTION
               FY-20 Gross written premiums by region       (%)1        FY-20 Gross written premiums by line of business (%)         FY-20 Gross written premiums by distribution channel (%)

                                          6%                                                    8%                                                         7%
                                   8%                                                                          21%                                   8%

                                                                                      18%
                                                            43%                                                                                14%
                                           USD                                                     USD                                                      USD
                                          35.5bn                                                  35.5bn                                                   35.5bn

                                43%                                                      16%                                                                              71%
                                                                                                               36%

                              EMEA                   APAC                     Motor            Liability             Worker Injury               Brokers        Banks and affinities
                              North America          Latin America            Property         Special lines                                     Agents         Direct
© Zurich

           1   The split excludes Group Reinsurance and Eliminations.
                                                                                                                                                                                           12
PROPERTY & CASUALTY

           Leading global commercial insurer, profitable franchise across
           both customer units
               CUSTOMER UNITS                                                          COMMERCIAL INSURANCE RANKING                                             UNDERWRITING PROFITABILITY
               FY-20 Gross written premiums by customer unit        (%)1               FY-20 Net earned premiums       (USDbn)2                                 FY-20 AY CR ex Catastrophes and COVID-19 (%)3

                                                                                                                                                                            90.9%                         93.7%
                             34%

                                          USD
                                         35.5bn
                                                         66%

                                                                                                                                                                         Commercial                 Retail and SME

                                 Commercial insurance
                                 Retail and SME

           1   The split excludes Group Reinsurance and Eliminations.
© Zurich

           2   Source: Company reports. Data includes only primary insurance on a more comparable basis. Zurich view includes alternative markets in North America and municipal business in the UK and excludes SME.
           3   Accident year combined ratio excluding Catastrophes and COVID-19 impacts (frequency benefits, Cover-More operating loss included in underwriting result, and premium refunds).
                                                                                                                                                                                                                        13
PROPERTY & CASUALTY

           Consistent reserve releases and reduced large loss volatility

               NET PRIOR YEAR RESERVE DEVELOPMENT (% OF NEP)                                                     LARGE LOSS VOLATILITY (ppts)1

                                                                                                                              8ppts              3ppts
                                              -1.4%
                                                                                                 -1.6%
                            -1.8%

                                                              -2.3%            -2.3%

                                                                                                                      Q1-14

                                                                                                                                                         Q4-20
                                                                                                                                      Q1-16
                            FY-16            FY-17            FY-18            FY-19             2020

                                                   Indicated range (1-2% of NEP)
© Zurich

           1   Volatility is measured as difference between lowest and highest ratio for the indicated period.

                                                                                                                                                                 14
PROPERTY & CASUALTY

           Balance sheet and large loss volatility well managed through
           reinsurance
               GROUP CATASTROPHE REINSURANCE PROTECTION                                                                      GLOBAL SURETY EXCESS OF LOSS
               (USDm)
                                                                                                                               • Designed to manage earnings volatility
                                                                                                                               • North America: USD 325m coverage per customer in excess
                                                    200
                                             115                                                                                    of USD 75m retention
                         200                                                                                                   • Other regions: USD 362.5m coverage per customer in excess
                                               1,000                                                                                of USD 37.5m retention
                                                                       200
                        1,000
                                                                                                                               • Aggregate limit: USD 1.1bn
                                                                                                   200
                                                600                   1,000                        250
                         458
                                                                                                                             MAIN ADDITIONAL TREATIES
                                                                       300                        8002
                         499                    650
                                                                       200                                                              Global property per risk
                        Europe             U.S. all perils        Rest of world             Global aggregate
                       all perils1                                  all perils                 cat treaty
                                                                                                                                        U.S. property quota share
                      Global aggregate cat treaty            Global cat treaty               10% co-participation
                      Combined global cat treaty3            Regional cat treaties
                                                                                                                                        U.S. liability quota share
                      U.S. wind swap4                        Retention

           1   Europe cat treaty calculated with EUR/USD exchange rate as of March 31, 2021 (EUR 390m in excess of EUR 425m).
           2   Franchise deductible of USD 45m, i.e. losses greater than USD 45m count towards erosion of the retention (annual aggregate deductible).
© Zurich

           3   This USD 200m cover can be used only once, either for aggregated losses or for an individual occurrence or event.
           4   Only relevant for U.S. windstorm.

                                                                                                                                                                                             15
PROPERTY & CASUALTY

           Well placed to gain from improved pricing in commercial

               DISTINCTIVE CAPABILITIES                                                P&C COMMERCIAL RATE CHANGE1                                              IMPROVED TERMS & CONDITIONS

                                 Leader in complex international                         North America                                                                   Increased use of Zurich
                                 programs                                                                                                                                standard wordings
                                                                                                             18%            18%           18%
                                                                                              12%

                                 Superior risk engineering and                                                                                                           Higher deductibles and self-
                                 captive services                                            Q1-20         Q2-20          Q3-20          Q4-20                           insured retentions

                                 Strengthened customer service                           EMEA
                                                                                                                                                                         Exclusions for industries and
                                 for key clients, reliable partner
                                                                                                                           15%            15%                            coverages out of appetite
                                 for brokers                                                                 12%
                                                                                              5%
                                                                                                                                                                         Smaller line sizes
                                                                                            Q1-20          Q2-20          Q3-20          Q4-20
                                 Advanced analytics capabilities
© Zurich

           1   GWP development due to premium rate change as a percentage of the renewed portfolio (excl. the crop business) against the comparable prior year period.
                                                                                                                                                                                                         16
PROPERTY & CASUALTY

           Growing at the right point of the cycle

               GWP GROWTH LIKE-FOR-LIKE (%)1                                                                                ACCIDENT YEAR COMBINED RATIO EXCL. CATASTROPHES
                                                                                                                            AND COVID-19 (%)
                                                                                                   8.1%

                                                                                                                                        97.3%                                            -2.6ppts
                                                                           6.1%                                                                          96.5%           96.1%
                                                                                                                                                                                 95.4%

                                                                                  3.8%      3.8%                                                                                                    92.8%

                                                                 2.3%
                                1.7%
                                          1.2% 1.5%
                                                          0.4%

                        -3.4%
                           FY-16            FY-17            FY-18           FY-19            FY-20                                     FY-16            FY-17           FY-18   FY-19          FY-20

                                       GWP like-for-like growth (%)1         Rate change (%)2
© Zurich

           1   In local currency and after adjusting for closed acquisitions and disposals.
           2   GWP development due to premium rate change as a percentage of the renewed portfolio (excl. the crop business) against the comparable prior year period.

                                                                                                                                                                                                            17
Life
LIFE

           Life – our value proposition

            PROVEN TRACK RECORD IN BANK                   STABLE AND GROWING OPERATING              FOCUS ON PROTECTION AND
            AND DISTRIBUTION PARTNERSHIPS                 EARNINGS                                  CAPITAL LIGHT SAVINGS

            • ~70% of new business distributed            • Annual growth in operating earnings     • Major life insurer with competitive
                  through bancassurance and CLP               of more than 5% p.a. since FY-16          advantage in protection and unit-
            •     Key enablers to access large pools of   •   Earnings stream with high technical       linked business
                  new customers and extend footprint          margin and low market dependency      •   Well positioned for ongoing low yield
                                                                                                        environment
© Zurich

                                                                                                                                                19
LIFE

           Proven track record in bank and distribution partnerships,
           stable and growing operating earnings
            FOOTPRINT (%)                                  DISTRIBUTION MIX (%)                                    FY-20 BUSINESS OPERATING PROFIT
            FY-20 Annual premium equivalent region (%)     FY-20 Annual premium equivalent by pillar (%)           (USDm)

                                                                                                                                       +6%

                                                                                                                                       1,554        1,486            1,597
                                                                                                                                         8                  1,423
                                                                                                                                                       6            174
                                                                                                                            1,258       319         269         4         4
                         28%                                                                                        1,130                                   219     219
                                                                          29%                    31%                           1
                                                                                                                    249      296       186           204     269     269
                                                                                                                                               31
                                   USD                                                                               76       132
                                  3,625m
                                                                                                                                       1,010        1,037    945     945
                       6%                       63%                                                                 889       831
                         3%

                                                                                                                    -85       -2                     -30     -13      -13
                                                                                    40%
                                                                                                                   FY-16    FY-17      FY-18        FY-19   FY-20   FY-20
                                                                                                                                                                     excl.
                                                                                                                                                                    COVID-
                                                                                                                       EMEA                    Latin America          19
                                                                                                                                                                    impact
                       EMEA                Asia Pacific                                                                North America           Group Re
                                                                   Corporate savings        Banks          Other
                       North America       Latin America           and protection                                      Asia Pacific            COVID 19 impact
© Zurich

                                                                                                                                                                              20
LIFE

           Revenue streams with high technical margin and low market
           dependency
               DRIVERS OF IFRS PROFITABLITIY (USDm)                                                                                                 SHARE OF INCOME FROM FEES,
                                                                                                                                                    LOADINGS AND TECHNICAL
                                                                                                                                                    MARGINS (%)1

                INCOME                                                                                                                                                           88%
                                     Loadings & fees         2,649      838 3,487         Policy charges and fees mainly designed to cover
                                                                                          distribution costs                                                             76%
                                                                                                                                                                75%
                                                                                          Returns on our assets, plus share of returns on              64%
                                           Inv. margin                       574
                                                                                          policyholder assets

                                                                                           Revenues on mortality and other ‘risk’ products, after
                                    Technical margin                            1,001      allowing for claims costs

                EXPENSES
                                     Operating costs                          -1,451      The costs we incur running the business

                                    Acquisition costs                                     What we pay to distributors net of deferred costs
                                                                    -2,187                over policy terms
                                     (net of deferrals)
                OPERATING                                                                                                                             Peer 1   Peer 2   Peer 3   Zurich
                PROFIT                    FY-20 BOP               1,423

                    Unit-linked fund based fees
© Zurich

           1   Average of FY-16 -20 based on source of earnings disclosures. Peers: Allianz, Axa, Generali.

                                                                                                                                                                                          21
LIFE

           Focus on protection and unit linked business positions our life
           business well for ongoing low yields
            FY-20 GWP SPLIT (%)                                                           FY-20 NEW BUSINESS MIX (%)                                                  FY-20 SPLIT GROSS RESERVES &
                                                                                                                                                                      LIABILITIES (%)
                                                                                                   12%

                                                                                                                   38%
                                                                                           20%        USD                   FY-20 APE1
                                 5% 3%       2% 2%
                                                                                                     3,625m                                                             18%       20%           21%
                                                                     31%
                  47%
                                                                                                                                                                                                             58%
                                                                     14%                            30%
                                                                                                                                          -7%
                                            95%         100%                                                                         9%
                                93%
                  21%                                                                                                                                                   82%       80%           79%
                                                                     55%                                    FY-20 NBV1         18%         USD
                                                                                                                                                                                                             42%
                  32%                                                                                                                     788m
                                                                                                                                                    80%
                EMEA           Latin        Asia       North         Total
                              America      Pacific    America

                                                                                                         Protection         Corporate savings                                  Traditional & other
                       Protection         Capital efficient         Other                                Unit-linked        Savings & annuity                                  Unit-linked & investment contracts
© Zurich

           1 Annual   premium equivalent (APE) is reported before non-controlling interests. New business value (NBV) is reported net of non-controlling interests.

                                                                                                                                                                                                                    22
Farmers
FARMERS

           Farmers - our value proposition

               LEADING U.S. PERSONAL LINES                STABLE CONTRIBUTION FROM FEE-            HIGHLY CASH-GENERATIVE BUSINESS
               PLAYER                                     BASED EARNINGS

               • No. 6 in the largest personal lines      • Unique capital-light business model    • ~95% of net income attributable to
                                                                                                       shareholders converted to cash and
                   market in the       world1                 with fee income based on a               remitted to Group
               •   Acquisition of MetLife U.S. P&C            percentage of gross earned premium
                                                                                                   •   Non-regulated management services
                   business to further boost nationwide   •   Earnings contribution largely            business free from dividend
                   presence and market share                  unaffected by underwriting risk          restrictions
© Zurich

           1   FY-20 pro-forma; Source: SNL Financial.

                                                                                                                                            24
FARMERS

           A unique business structure

                                                                                                                                                                           Zurich owned
                                                                                                                                                                           Policyholders owned

                                         Farmers Group, Inc.                                                                                   Farmers Exchanges1
                                                                                                      Services
                   Provides non-claims and ancillary services to the Exchanges                                                Carry underwriting risk and handle claims, as well as own the
                   (e.g. underwriting, policy administration, premium collection,                                          Farmers brand and distribution assets (e.g. exclusive agents, direct
                     investment management, and accounting and reporting)                                                                              call centers)
                                                                                                      Fees as % of Gross
                                                                                                      Earned Premiums

                Farmers New World Life                       Farmers Reinsurance Co.                                       MetLife strategic           Kraft Lake         Farmers Financial
                                                                                                                             partnership               Brokerage             Solutions
                  Life insurance company                   Reinsurance company providing
                dedicated to selling products               reinsurance to the Exchanges                                   Exclusive relationship       Brokerage            Broker-dealer to
                 through Farmers exclusive                                                                                 to sell P&C products        dedicated to         support exclusive
                           agents                                                                                            via MetLife’s U.S.          Farmers           agents in providing
                                                                                                                              group benefits            exclusive              clients with
                                                                                                                             employer channel            agents           investment services
© Zurich

           1   For all references to Farmers Exchanges see the disclaimer and cautionary statement.

                                                                                                                                                                                                 25
FARMERS

           Farmers Exchanges1 with a truly nationwide presence and
           increased scale in a consolidating market
               FY-20 U.S. PERSONAL LINES P&C DWP (USDbn)2                                                    A TOP 10 U.S. PERSONAL LINES PLAYER NATIONWIDE2
                                                                                                             Change in market position / FY-20 pro-forma DWP (USDm) / pro-forma market share (%)

                                     State Farm                                                       60.4
                                                                                    35.7                                                                                       North East
                                         Allstate                                                                                                    Mid West
                                                                                                                                                                              22nd → 8th
                                    Progressive                                     35.1                                  West3                      8th → 6th            USD 716m / 4.2%
                 Berkshire Hathaway (GEICO)                                        34.3                                2nd   →   2nd             USD 3,015m / 4.1%
                                                                                                                    USD 7,241m / 10.6%
                                          USAA                             23.1                                                                  Nationwide
               Farmers Exchanges pro-forma1                           19.4                                                                       7th → 6th
                                 Liberty Mutual                       19.0                                                                   USD 19.4bn / 5.4%                 Mid Atlantic

                          Farmers Exchanges1                        16.0                                                                                                      14th → 10th
                                                                                                                                                                          USD 1,352m / 2.6%
                                     Nationwide              10.0                                                                   South West
                               American Family               10.0                                                                   6th → 6th
                                                                                                                                                                 South East
                                                                                                                                 USD 4,729m / 8.2%
                                       Travelers             9.7                                                                                                 9th → 9th
                                         MetLife       3.4                                                                                                  USD 2,313m / 2.6%

           1   For all references to Farmers Exchanges see the disclaimer and cautionary statement.
© Zurich

           2   FY-20 pro-forma; Source: SNL Financial.
           3   Includes Alaska and Hawaii (not pictured).

                                                                                                                                                                                                   26
FARMERS

           Large and diverse distribution footprint with diversified
           product mix1
               FY-20 DWP BY LINE OF BUSINESS                                            FY-20 DWP BY DISTRIBUTION                             MAIN DISTRIBUTION CHANNELS2
               (%)2                                                                     CHANNEL (%)2

                                                                                                                                                         Farmers Exchanges exclusive
                                           1%                                                                                                  ~11,300   agents
                                     10%                                                                      12%

                             11%                                                                                                                         Independent agent relationships
                                                                                                      18%                                     ~35,000    incl. ~3,000 new relationships from
                                                                                                                                                         MetLife
                                      USD 23.7bn            49%                                                 USD 23.7bn
                                                                                                                                                         Active employer relationships in
                                                                                                                                 70%
                                                                                                                                               3,800+    scope from Metlife’s worksite
                              29%                                                                                                                        marketing channel

                                                                                                                                                         Active affinity relationships via
                                                                                                                                               250+      dedicated sales force

                                                                                                       Exclusive agents
                         Auto          Specialty                     Other                             Independent agents
                         Home          Business insurance                                              Direct, worksite marketing, affinity
© Zurich

           1   For all references to Farmers Exchanges see the disclaimer and cautionary statement.
           2   FY-20 pro-forma; Source: SNL Financial.

                                                                                                                                                                                               27
FARMERS

           Stable contribution to Group earnings, primarily driven by
           Farmers Management Services fee-based business
               BUSINESS OPERATING PROFIT (USDm)                                                                            KEY DRIVERS

                                                                                                                                                                 194
                                                                                                                                                                          138
                                                               1,707                                                                                                               49
                              1,643                                                                                        Farmers Re GWP (USDm)
                                                                 15
                                      43                        236                            1,501
                           176                                                                         26
                                                                                           100

                                                                                                                                                                1,048    1,069     1,101

                                                                                                                           Farmers Life GWP (USDm)1
                              1,424                            1,456                           1,375

                                                                                                                                                                20,171   20,441   20,109

                              FY-18                           FY-19                           FY-20                         Farmers Exchanges GEP (USDm)         7.0      7.0      6.8
                                                                                                                            and FMS MGEP margin (%)2
                                                                                                                                                                FY-18    FY-19    FY-20
                             Farmers Management Services               Farmers Life        Farmers Re
© Zurich

           1   Including policy fees and deposits.
           2   Margin on gross earned premiums of the Farmers Exchanges. For all references to Farmers Exchanges see the disclaimer and cautionary statement.

                                                                                                                                                                                           28
Investment and capital management
INVESTMENT AND CAPITAL MANAGEMENT

           Conservative investment portfolio focused on high asset
           quality
               FY-20 GROUP INVESTMENTS (%)1                                               FY-20 ASSET QUALITY (%)                                                    FY-20 DURATION (# YEARS)2

                                                                                                                                                                                            12.9
                                                                                                       USD 78bn                 USD 99bn
                                         6%
                                                                                                       2% 0%                         1%                                         10.8
                                     5% 2%                                                                                      5%
                                7%                                                                         26%
                                                        34%
                                                                                                                                    35%
                              2%                                                                           4%
                                            USD
                                           226bn
                                                                                                           37%                                                                                      4.8       5.1
                                                                                                                                    25%

                                                                                                                                    15%
                                      44%
                                                                                                           31%
                                                                                                                                    19%

                                                                                                   Government and           Credit, private debt                                     Life               P&C
                                                                                                     government
                      Government and                      Equities
                                                                                                     guaranteed
                      government guaranteed
                      Credit,                             Hedge funds,
                      private debt                        private equity
                                                                                                      AAA          A            Non-investment
                      Mortgages                           Cash                                                                  grade                                                    Assets    Liabilities
                      Real estate                                                                     AA           BBB          Unrated
© Zurich

           1   Market value of the investment portfolio (economic view).
           2   Duration numbers are calculated as DV10 (dollar value of 10bp of move in interest rates over the period on the asset values) divided by market value of fixed income investments.

                                                                                                                                                                                                                    30
INVESTMENT AND CAPITAL MANAGEMENT

           Highly diversified credit and private debt portfolio

            FY-20 RATING OF CREDIT, PRIVATE DEBT SECURITIES (%)

                      USD 31.7bn          USD 22.1bn                  USD 18.1bn               USD 8.6bn                USD 6.6bn      USD 11.8bn
                              1%             2%                               1%               1%                       1%     3%
                      7%                                              12%                                 4%   1%
                                                                                               4%                                         21%
                                                                                                                              29%
                                                                         18%
                                                50%
                           54%
                                                                                                                                          36%

                                                                         51%                        89%
                                                                                                                              67%         21%
                                                39%
                           30%                                                                                                            2%
                                                                         18%                                                              21%
                                 7%                   6%
                      1%                   3%
                  Non-financial credit   Financial credit        Municipals, agencies,   Asset backed securities       Covered bonds     Other
                                                                     state credit

                                                           AAA   AA       A        BBB   Non-investment grade       Unrated
© Zurich

                                                                                                                                                    31
INVESTMENT AND CAPITAL MANAGEMENT

           Capital managed conservatively to AA financial strength

               Group Swiss Solvency Test (%) 1                                                                                    9m-20 SST Sensitivities Impact (ppts)2

                   240%                                    216%          221%         222%
                                              204%
                                189%                                                                182%
                   200%                                                                                                                                  Interest rate +50bps                                                 +15ppts
                   160%
                    120%                    SST target capital of “160% or above”                                                                        Interest rate -50bps         -19ppts
                     80%                             equivalent to AA
                     40%
                      0%                                                                                                                             USD appreciation +10%                                          +1ppts
                                FY-15        FY-16         FY-17        FY-18         FY-19        FY-20
                                                                                                                                                      USD depreciation -10%                            -2ppts

               Q1-20 SST VS. SOLVENCY II FOR EUROPEAN UNION                                                                                                     Equities +20%                                             +8ppts
               ENTITIES (%)
                                                                ~90ppts                                                                                          Equities -20%                  -9ppts

                                                                                                                                                   Credit spreads +100bps3 -21ppts

                                                                                                                                        CS excl. EUR sovereign +100bps3                    -14ppts

                                              SST1                                 Solvency II

           1   On Swiss Solvency Test (SST) see footnote on page 6. The ratio as of January 1, 2020 has been re-calculated on the same basis for disclosure purposes in order to allow better comparison.
© Zurich

           2   Sensitivities are best estimates and reflect the impact on the pension plans in the UK. For the interest rate sensitivities shocks are applied to the liquid and the non-liquid part of the yield curve.
           3   Credit Spreads (CS) include mortgages and including/excluding EUR sovereign spreads. CS sensitivities include changes to the volatility adjustment applied to interest rates curves.

                                                                                                                                                                                                                                        32
INVESTMENT AND CAPITAL MANAGEMENT

           Moderate leverage with interest cover at Aa levels

               GROUP CAPITAL STRUCTURE (%)1                                                     MOODY’S FINANCIAL LEVERAGE (%) & EARNINGS
                                                                                                COVERAGE

                        11%           10%       9%           12%          11%             11%                  26.4%                         25.8%
                                                                                                  24.1%                      23.7%
                       14%            17%       16%                       15%             16%                                                               22.6%         22.3%
                                                             16%

                                                                                                                                                             13.2
                                                                                                                                                                           12.3
                       76%            73%       75%                       74%             74%                                 9.3             10.1
                                                             72%                                                 9.2
                                                                                                   6.7

                      FY-15          FY-16     FY-17        FY-18        FY-19        FY-20       FY-15        FY-16         FY-17           FY-18          FY-19        FY-20

                              Senior debt    Subordinated debt      Shareholders equity                   Financial leverage (Aa = 15-30%)           Earnings coverage (Aa = 8-12x)
© Zurich

           1   Based on IFRS balance sheet

                                                                                                                                                                                      33
INVESTMENT AND CAPITAL MANAGEMENT

           Low average debt cost and balanced maturity profile

               CDS SPREAD AMONG BEST OF PEERS (BPS)1                                                                          BALANCED REFINANCING NEEDS (USDbn)2

                 600
                                                                                                                                          2.2
                                                                                                                                                                    2.1
                                                                                                                                                                    0.2
                                                                                                                                          0.6 1.8                                1.8
                                                                                                                                                                                                     1.7
                 400
                                                                                                                                                0.5                                           1.3
                                                                                                                                                                                 0.8
                                                                                                                                                       1.2
                                                                                                                                                                                              0.4
                                                                                                                                                                    1.9
                 200                                                                                                                0.8
                                                                                                                                          1.6                                                                                 0.6
                                                                                                                                                                                       0.6
                                                                                                                                    0.3          1.2                                                       0.5
                                                                                                                                                             0.3                 1.0          0.9                       0.3
                                                                                                                                                                          0.2                              0.3
                                                                                                                                    0.5
                                                                                                                                                                                                           0.2

                       2011   2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022                                               2021         2023         2025         2027         2029         2031         2033         2039

                                          Zurich        Axa         Generali         Allianz                                                                              Senior         Subordinated
© Zurich

           1   5y EUR sub CDS. Source: Bloomberg.
           2   Maturity profile based on first call date for subordinated debt and maturity date for senior debt. Includes the placement of USD 1.75bn of dated subordinated debt announced on January 12, 2021.

                                                                                                                                                                                                                                     34
INVESTMENT AND CAPITAL MANAGEMENT

           We have a strongly cash generative business reflected in high
           cash remittance

                                        Property &                    Non-Core     Group Functions
                                                     Life   Farmers                                  Group
                                         Casualty                     Businesses   and Operations

             BOP (USDbn)
                                           11.3      8.2     10.3        0.0            -4.4         25.3
             FY-15 to FY-20

             NIAS (USDbn)
                                           11.0      6.4      7.4        0.2            -5.2         19.8
             FY-15 to FY-20

             Cash remittances (USDbn)
                                           12.2      5.4      7.8        0.6            -5.1         21.0
             FY-15 to FY-20

             Remittance / NIAS (%)        112%       84%     106%        nm              nm          106%

             Expected remittance
             payout (%)                   90%        75%     95%         nm             100%         85%
             FY-21 to FY-22
© Zurich

                                                                                                             35
INVESTMENT AND CAPITAL MANAGEMENT

           We are focused on continuing to reward our shareholders

               DIVIDEND POLICY1                                                                             DIVIDEND PER SHARE (CHF)

                                                                                                                                       +4%
                                             NIAS2 payout ratio of ~75%                                                                         20      20
                                                                                                                                        19
                                                                                                                           18
                                                                                                                  17

                                             Dividend increases based on sustainable
                                             earnings growth

                                             Minimum target of prior year level3

                                                                                                                 FY-16    FY-17        FY-18   FY-19   FY-201

           1   The dividend is subject to the approval by the shareholders at the Annual General Meeting.
© Zurich

           2   Net income attributable to shareholders.
           3   Minimum dividend target is CHF 20 per share based on FY-20

                                                                                                                                                                36
Sustainability
SUSTAINABILITY

           We want to be known as one of the most responsible and
           impactful businesses in the world

            A CHANGING CLIMATE                       WORK SUSTAINABILITY                    CONFIDENCE IN A DIGITAL SOCIETY

            • Science-based CO2 reduction targets    • Prioritize current workforce over    • Ethical use of data & AI
                                                       external hires and outsourcing
            • Mitigate climate risk                                                         • Data protection and cyber security
                                                     • Support and develop the skills our
            • Innovation for sustainable solutions     people need for the future of work   • Business resilience and digitalization
© Zurich

                                                                                                                                       38
SUSTAINABILITY

           Our commitments in action

               ACHIEVEMENTS

                                                                                                                                        TARGETS
                                                                     -30% in CO2
                       USD 6bn                                         emissions in                   270
                       invested                                      operations since              companies                            • GROUP
                                                                          2015
                    in impact bonds                                                                  in scope for                         Align our business to a 1.5°C future
                     infrastructure                                                                  coal and oil
                                                                                                    sands policy
                       and private                +75 pts
                                                                                                  implemented by
                                                                                                                                        • OPERATIONS
                         equity                improvement in
                                                                                                         2021                             Reduce CO2 emissions by 50% by 2025
                                                eNPS2 score                     53% of
                                                 since 2017                    positions
                               +22%                                           filled internally
                                                                                                                                        • INVESTMENTS
                               green                                                                    170 000                           Reduce CO2 emissions in green building investments by
                                                                                                         people                           30% and in equity and credit investments by 25% by 2025
                              buildings
                                                                                                      benefited from
                              in investment             12 Countries
                                                                                                        the Zurich
                             portfolio since               with EDGE                                    Resilience                      • PEOPLE AND COMMUNITY
                                   2010                   certification 1                             Flood Alliance                      Help improve the mental wellbeing of 10 million people
                                                                                                        since 2017                        (2024 target of Zurich Z Foundation)
© Zurich

           1   EDGE Certification is a leading global assessment methodology and business certification standard for gender equality.
           2   Employee Net Promoter Score (eNPS).

                                                                                                                                                                                                    39
SUSTAINABILITY

           Delivery against our ambition is widely recognized by external
           assessors
               OUR RATINGS1                                                                                 OUR LONG-TERM COMMITMENT

                                                                                ‘AA’ rating1

                                                                         #1 in insurance group2

                                                                                     #3
                                                                        amongst industry peers3
                                                                                                            OUR ENGAGEMENT PARTNERS
                                                                          Absolute Score of 4.4
                                                                               (out of 5.0)4                •   Lead author of the World Economic Forum Global Risk Report
                                                                                                            •   Founding member of the Net Zero Asset Owner Alliance
                                                                                                            •   Member of Coalition for Climate Resilient Investment
                                                                        ‘A-’ Management Level5              •   Member of Insurance Development Forum

           1   MSCI ESG Rating Report July 2020                                                   4   FTSE Industry Classification Benchmark ( ICB ), Dec 2019
© Zurich

           2   S&P Global ESG Score 2020 (previously RobecoSAM), 100% percentile                  5   CDP Climate Change 2020 score.
           3   As defined and reported by Sustainalytics ESG Risk Report, December 3, 2020

                                                                                                                                                                             40
Appendix
APPENDIX - CAPITAL MANAGEMENT

           SST is more conservative than Solvency II

              General information
                                                             SST                                                SOLVENCY II
                    Most onerous impact

              Risk measure                 Expected shortfall 99% (~BBB)           Value at risk 99.5% (~BBB)

                                           • Market risk (including investment     Internal model (ZIP):                Standard formula (other entities):
                                               credit)                             • Market risk (including             • Market risk
                                           •   Premium, reserve and UPR risk          investment credit)                • Counterparty default risk
                                           •   NatCat risk                         • Premium, reserve and UPR           • Life underwriting risk
                                           •   Life liability risk                    risk                              • Health underwriting risk
              Risk types covered           •   Life business risk                  • NatCat risk                        • Non-life underwriting risk
                                           •   Reinsurance credit risk             • Business risk                         (including premium, reserve
                                           •   Receivables credit risk             • Operational risk                      and NatCat)
                                                                                   • Reinsurance credit risk            • Intangible asset risk
                                                                                   • Receivables credit risk            • Operational risk
                                                                                   • Scenarios
                                           No concept of equivalence, applied to   Possibility to use local regimes for subsidiaries in equivalent third
              Equivalence
                                           the entire Group                        countries

              Tax                          Pre-tax                                 Post-tax
© Zurich

                                                                                                                                                             42
APPENDIX - CAPITAL MANAGEMENT

           SST is more conservative than Solvency II

                 Yield curves and transitionals
                                                                                      SST1                                                 SOLVENCY II
                        Most onerous impact

                                                             Swaps (EUR, GBP, USD)
                 Base for risk-free yield curves                                                                      Swaps
                                                             Government bond (CHF)

                                                             CHF: 15 years                                            CHF: 25 years
                 Entry point to extrapolation
                                                             EUR: 20 years                                            EUR: 20 years
                 of yield curves
                                                             USD, GBP: 50 years                                       USD, GBP: 50 years
                                                             CHF: 2.1%                                                CHF: 2.6%
                 Ultimate forward rate (UFR)2                EUR, GBP: 3.6%                                           EUR, GBP: 3.6%
                                                             USD: 3.3%                                                USD: 3.6%
                                                             - credit risk adjustment: -30bps (USD) and -10bps        - credit risk adjustment: -10bps (EUR, CHF, GBP) and -
                                                             (EUR, GBP)                                               13bps (USD)
                 Adjustments to yield curves2                + volatility adjustment: 5bps (EUR) for IT, ES and GER   + volatility adjustment: 5bps (EUR), 10bps (CHF), 8bps
                                                                                                                      (GBP) and 25bps (USD)
                                                                                                                      + matching adjustment

                                                                                                                      Various transitional measures, especially for yield
                 Transitional requirements                   None
                                                                                                                      curves and technical provisions, lasting until 2032
© Zurich

           1   For EUR and GBP same yield curves are used as under Solvency II.
           2   Yield curve parameters as of end March 2021.
                                                                                                                                                                               43
Other important information
For further information

           CALL US                                    VISIT OR FOLLOW US

           INVESTOR RELATIONS AND RATING AGENCY
           MANAGEMENT
           Richard Burden         +41 44 628 96 40
           Francesco Bonsante     +41 44 628 00 68
           Samuel Han             +41 44 625 32 57
           Michèle Matlock        +41 44 625 28 50
           Fabian Wiederkehr      +41 44 625 33 08

           EVENTS
           Patricia Heina          +41 44 625 38 44

                                                        Investor Relations website

                                                        Follow us
© Zurich

                                                                                      45
Useful hyperlinks

           CALENDAR AND EVENTS                               ANALYSTS’ RECOMMENDATIONS AND CONSENSUS

           PRESENTATIONS                                     ZURICH STOCK INFORMATION AND SHARE PRICE (ZURN)

           INVESTOR DAY                                      DIVIDENDS

           FINANCIAL RESULTS AND REPORTS                     RATINGS

           OTHER SUBSIDIARY REPORTS                          BONDS

           SUSTAINABILITY REPORTS, PUBLICATIONS AND VIDEOS
© Zurich

                                                                                                               46
Investing in Zurich

           SIX SWISS EXCHANGE                                            US AMERICAN DEPOSITARY RECEIPT PROGRAM

           •   Listing:                SIX Swiss Exchange, Switzerland   •   Depository:                The Bank of New York Mellon
           •   Product type:           Swiss Blue Chip Shares            •   Nature:                    ADR
           •   Ticker symbol:          ZURN                              •   Symbol:                    ZURVY
           •   Swiss security number
               (Valorennummer):        1107539                           •   For further information:
           •   ISIN:                   CH0011075394
           •   Bloomberg symbol:       ZURN VX Equity                        in the USA                 +1-888-BNY-ADRS
           •   Reuters symbol:         ZURN.VX                               outside the USA            +1 201 680 6825
                                                                             E-mail                     shrrelations@bnymellon.com
           •   Trading currency:       CHF
                                                                             Website                    www.adrbnymellon.com
© Zurich

                                                                                                                                      47
Disclaimer and cautionary statement

           Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of Zurich
           Insurance Group Ltd or the Zurich Insurance Group (the Group). Forward-looking statements include statements regarding the Group’s targeted profit, return on equity targets, expenses, pricing
           conditions, dividend policy and underwriting and claims results, as well as statements regarding the Group’s understanding of general economic, financial and insurance market conditions and
           expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other
           factors that could cause actual results and plans and objectives of Zurich Insurance Group Ltd or the Group to differ materially from those expressed or implied in the forward-looking statements (or
           from past results). Factors such as (i) general economic conditions and competitive factors, particularly in key markets; (ii) the risk of a global economic downturn, in the financial services industries in
           particular; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity
           experience; (vii) policy renewal and lapse rates; (viii) increased litigation activity and regulatory actions; and (ix) changes in laws and regulations and in the policies of regulators may have a direct
           bearing on the results of operations of Zurich Insurance Group Ltd and its Group and on whether the targets will be achieved. Specifically in relation with the COVID-19 related statements, such
           statements were made on the basis of circumstances prevailing at a certain time and on the basis of specific terms and conditions (in particular applicable exclusions) of insurance policies as written
           and interpreted by the Group and may be subject to regulatory, legislative, governmental and litigation-related developments affecting the extent of potential losses covered by a member of the Group
           or potentially exposing the Group to additional losses if terms or conditions are retroactively amended by way of legislative or regulatory action. Zurich Insurance Group Ltd undertakes no obligation to
           publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

           All references to “Farmers Exchanges” mean Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and their subsidiaries and affiliates. The three Exchanges are California
           domiciled inter-insurance exchanges owned by their policyholders with governance oversight by their Boards of Governors. Farmers Group, Inc. and its subsidiaries are appointed as the attorneys-in-
           fact for the three Exchanges and in that capacity provide certain non-claims services and ancillary services to the Farmers Exchanges. Neither Farmers Group, Inc., nor its parent companies, Zurich
           Insurance Company Ltd and Zurich Insurance Group Ltd, have any ownership interest in the Farmers Exchanges. Financial information about the Farmers Exchanges is proprietary to the Farmers
           Exchanges but is provided to support an understanding of the performance of Farmers Group, Inc. and Farmers Reinsurance Company.

           It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of full year results.

           Persons requiring advice should consult an independent adviser.

           This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction.

           THIS COMMUNICATION DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT
           REGISTRATION OR EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS
           THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS.
© Zurich

                                                                                                                                                                                                                        48
© Zurich Insurance Company Ltd
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