The document is an agenda and presentation slides for an EVM (Economic Value Management) teach-in at Swiss Re on March 31, 2008. The presentation introduces EVM methodology, figures, and compares EVM to embedded value. EVM is Swiss Re's integrated economic framework used for planning, pricing, reserving and managing the business. It separates underwriting and investment performance, recognizes profits at inception based on expected cash flows, and measures performance after capital costs. Sample EVM calculations and investment performance examples are provided to illustrate the methodology.

1. ab
Economic Value Management (EVM)
Teach-in
31 March 2008
ab
Today’s agenda
Welcome and introduction Susan Holliday
EVM methodology
EVM figures
From Embedded Value to EVM
Summary
Questions & answers
EVM Teach-in
31 March 2008
Slide 2

2. ab
Today’s agenda
Welcome and introduction
EVM methodology George Quinn
EVM figures
From Embedded Value to EVM
Summary
Questions & answers
EVM Teach-in
31 March 2008
Slide 3
EVM methodology
ab
Economic steering at Swiss Re
Economic Value Management (EVM) is Swiss Re’s integrated economic
measurement and steering framework used for planning, pricing, reserving
and managing the business
Consistency throughout the
Target performance cycle:
setting
Strategy Planning Target setting/planning/
pricing/reserving
All measurements used Capital allocation/capital
throughout the performance budgeting
cycle are based on EVM
methodology Performance
Performance measurement/
Pricing compensation
measurement
EVM Teach-in Tracking
31 March 2008 renewals
Slide 4

3. EVM methodology
EVM results are meant to respond
ab
to three basic questions:
Are our underwriting activities creating economic value on a stand-
alone basis?
Are our investment activities creating economic value after risk
adjustments?
Can we assess different underwriting and investment opportunities on
a like for like basis?
EVM profit is the common measure of economic value creation that
guides steering decisions
EVM Teach-in
31 March 2008
Slide 5
EVM methodology
To answer these three questions,
ab
the EVM framework…
Splits performance of fund raising activities (underwriting) and fund
investment activities (asset management)
Recognises all profits on new business at inception, changes in
estimates as they occur, and excludes future new business
Values assets and liabilities on a market consistent basis
Reflects best estimates
Measures performance after capital costs (i.e. cost to shareholders of
taking risk)
EVM Teach-in
31 March 2008 The following slides illustrate how these
Slide 6 principles apply in EVM ...

4. EVM methodology
Separation of underwriting and
ab
investment activities
Separation of
underwriting and Splits performance of fund raising activities (underwriting) and fund
investment investment activities (asset management)
activities in line
with basic financial Overall economic
economics balance sheet
principles
Economic
Market liabilities
value
assets
Economic
Asset management net worth Underwriting
balance sheet balance sheet
Replicating Replicating Economic
Market portfolio Asset management pays portfolio liabilities
value underwriting risk-free
assets returns for the funds that
Economic are raised
net worth
EVM Teach-in
31 March 2008 - Investment decisions - Underwriting decisions
- Management of
Slide 7 existing business
EVM methodology
ab
Replicating reinsurance liabilities
Replicating portfolios Expenses, taxes, and Underlying business cash
frictional costs flows
The replicating portfolio provides the
cash flows needed to meet expected
future payments
Cash flow years 1 2 3 4 5
The choice of replicating instruments Discount
depends on the financial market risk back at risk
exposure embedded in the liabilities free rate
A simple example: Discounted economic cash flows
Expected mortality claims payments (equals market value of replicating portfolio)
in 5 years can be replicated by a 5
year zero-coupon bond with the
same maturity and payout
Net Economic
The market value of the bond today replicating = value of
equals the economic value of the
EVM Teach-in portfolio liabilities
expected claims payments
31 March 2008
Slide 8 Market value of replicating portfolio = Economic value of liabilities

5. EVM methodology
ab
Measurement of underwriting activities
A standard replication example (I/III)
Example Recognises all profits on new business at inception
EVM calculation Measurement CHF thousands Inception Year 1 Year 2 Year 3
for a simple fire at inception
risk XL contract at Premiums
inception
Claims
Expenses
New business value
Taxes
creation at day 1
Capital costs
Undiscounted
Expected
cash flows 2 600 -1 000 -700 -700
EVM profit
300
Premium
received at
2%
inception Production
2.25%
2 600 cost
EVM Teach-in -2 300 2.5%
31 March 2008
Slide 9
EVM methodology
ab
Measurement of underwriting activities
A standard replication example (II/III)
Example Measurement is based on market prices and best estimates
EVM calculation Measurement CHF thousands Inception Year 1 Year 2 Year 3
for a simple fire at inception
risk XL contract at Premiums
inception
Claims
Expenses
New business value
Taxes
creation at day 1
Capital costs
Undiscounted
Expected
cash flows 2 600 -1 000 -700 -700
EVM profit
300
Premium
received at
2%
inception Production
2.25%
2 600 cost
EVM Teach-in -2 300 2.5%
31 March 2008
Slide 10 Transfer price of funds (TPF) = risk free rates at inception

6. EVM methodology
ab
Measurement of underwriting activities
A standard replication example (III/III)
Example Measures performance after capital costs (includes a projection of capital costs)
EVM calculation Measurement CHF thousands Inception Year 1 Year 2 Year 3
for a simple fire at inception
risk XL contract at Premiums
inception
Claims
Expenses
New business value
Taxes
creation at day 1
Capital costs
Undiscounted
Expected
cash flows 2 600 -1 000 -700 -700
EVM profit
300
Capital costs
Premium -90
received at
2%
inception Production
2.25%
2 600 cost
EVM Teach-in -2 300 2.5%
31 March 2008
Slide 11
EVM methodology
ab
Measurement of underwriting activities
Insufficient premium income
Example A contract that generates an EVM loss at inception should be declined
EVM calculation EUR thousands Inception Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
for a Continental
European
Premiums
proportional
motor contract at Claims
inception Expenses
Taxes
New
business loss Capital costs
at day 1 Future exp.
cash flows 1 870 -443 -482 -410 -349 -278 -214 -45
EVM loss: -60
4%
4.25%
Premium Production 4.5%
received at cost 4.75%
inception -1 930 4.9%
1 870
EVM Teach-in 4.9%
31 March 2008 5.1%
Slide 12

7. EVM methodology
ab
Illustration
Did underwriting activities generate economic profit?
CHF thousands
New business profit after capital costs 300
PV of premiums 2 600
PV of claims -1 840
PV of commissions -110 EVM value of new business
PV of expenses -110
PV of taxes -150
PV of capital costs -90
Previous business profit after capital costs 59
Change in premiums 60
Change in claims 20
Change in EVM value of
Change in commissions -5
Change in expenses -4
previous years business
Change in taxes -8
Change in capital costs -4
Total profit 359 Release of capital costs and
Release of capital costs 100 risk-free return on
shareholders’ funds
Income before capital costs 459
EVM Teach-in
EVM profit is defined as total return generated for shareholders after
31 March 2008 allowing for capital costs. An EVM profit of zero means that all production
Slide 13
costs including the cost of capital are covered
EVM methodology
ab
Measurement of underwriting activities
Focus on profit recognition in EVM
EVM B/S TPF at T0 EVM recognises all profits at inception based on the present value
of all future expected cash flows
Market
value of Economic
repl. liabilities
Subsequent experience variances are recognised as previous years
portfolio development
EVM previous years results are calculated as the present value of
An upward shift of the yield
curve has a symmetrical the difference between previous and revised cash flow estimates
impact on both sides of the
underwriting balance
sheet:
Total EVM profit is the sum of new business and previous years
profit
EVM B/S TPF at T1
Market Changes in interest rates do not affect the underwriting result on
value of Economic
repl. liabilities the in-force book, as the projected cash flows are matched by the
portfolio risk free replicating portfolio
EVM Teach-in
31 March 2008
Slide 14

8. EVM methodology
ab
Investment performance in EVM
Interest rates affect EVM Overall economic
investment results only if balance sheet
the actual investment
portfolio does not fully Economic
Market liabilities
match the replicating
value
portfolio and economic net assets
worth Economic
Asset management net worth Underwriting
In case of a full asset balance sheet balance sheet
liability match, changes in
interest rates have Replicating Replicating Economic
Market portfolio portfolio liabilities
symmetrical effects on both value
sides of the balance sheet assets
Economic
no change in economic net worth
net worth
The EVM investment result depends on the actual investment mix compared with the benchmark
EVM Teach-in
portfolio
31 March 2008
Slide 15
EVM methodology
ab
Investment activities
Performance calculation in EVM
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before capital costs after capital
investment costs costs
return
Benchmark return
EVM Teach-in (return on minimum
31 March 2008
risk portfolio)
Slide 16

9. EVM methodology
ab
Example 1
Full ALM match and interest rates go down
Assumption: Actual investment portfolio (consisting of risk-free
bonds) matches benchmark in terms of currency structure and
duration
Scenario: Parallel decrease of global interest rates of 100bps
Balance sheet is largely immunised against changes in interest
rates
CHF bn
4.0 -4.0 0 0 0 0
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before costs after capital
investment capital costs costs
EVM Teach-in return
31 March 2008
Slide 17
EVM methodology
ab
Example 2
Long duration position and interest rates go down
Assumption: Actual investment portfolio (consisting of risk free
bonds) has a longer duration than the benchmark. The balance
sheet is exposed to interest rate risk
Scenario: Parallel decrease of global interest rates of 100bps
Swiss Re’s actual investment portfolio outperforms the benchmark
CHF bn
-4.0 -0.2
5.0 0.8 -0.1 0.7
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before costs after capital
investment capital costs costs
EVM Teach-in return
31 March 2008
Slide 18

10. EVM methodology
ab
Example 3
Investment in corporate bonds and spreads widen
Assumption: Actual investment portfolio (consisting US AAA-rated
corporate bonds) underperforms the benchmark (credit spreads
widen). The balance sheet is exposed to credit risk
Scenario: Total return of corporate bond portfolio: 1.3%
CHF bn
1.8
-4.0 0.3
-1.9 -0.2 -2.1
EVM Teach-in
Mark-to- Cost of Tax credit, fx, EVM income Capital EVM loss
31 March 2008 market funds expenses before costs after capital
Slide 19
investment capital costs costs
return
EVM methodology
ab
Example 4
Assets partially invested in equities
Assumption: Actual investment portfolio consists of 8% equities
(S&P 500 index) and 92% risk-free bonds. The balance sheet is
exposed to equity risk
Scenario: S&P 500 annual total index return: 15.8%
Swiss Re’s actual investment portfolio outperforms the benchmark
CHF bn
-4.0 -0.4
5.4 1.0 -0.5 0.5
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before capital costs after capital
investment costs costs
EVM Teach-in return
31 March 2008
Slide 20

11. EVM methodology
ab
Capital costs in EVM
EVM capital costs consist of:
1. Risk free return on capital representing
shareholders base cost of capital
2. Market risk premium (MRP) representing
the shareholders’ expected excess returns
on market risk exposure, applicable to all
business activities that generate systematic Total required
market risk return on capital
3. Frictional capital costs (FCC) representing
shareholders required compensation for
agency costs, cost of potential financial
distress and regulatory/illiquidity costs
EVM Teach-in
31 March 2008
Slide 21
EVM methodology
ab
EVM and market consistent embedded
value (MCEV) have significant commonalities
EV EVM MCEV
Market consistent ✘ ✔ ✔
Separate presentation of assets and
liabilities ✘ ✔ ✘
Explicit charges for capital costs and
credit risk ✘ ✔ ✔
Applicable to all products ✘ ✔ ✔
EVM Teach-in
31 March 2008
Slide 22

12. ab
Today’s agenda
Welcome and introduction
EVM methodology
EVM figures George Quinn
From Embedded Value to EVM
Summary
Questions & answers
EVM Teach-in
31 March 2008
Slide 23
EVM figures
ab
EVM 2006 income statement by business unit
Property & Life & Financial Group
CHF m Casualty Health Markets items Total
Profit
New business profit 1 695 391 995 -71 3 010
Previous years business profit 137 328 0 225 690
Total profit after capital costs 1 832 719 995 154 3 700
Release of capital costs 1 578 1 007 857 99 3 541
Income before capital costs 3 410 1 726 1 852 253 7 241
EVM 2006 is unaudited
The EVM production process is not subject to the same control environment as annual
EVM Teach-in
and quarterly US GAAP reporting
31 March 2008
Slide 24

13. EVM figures
ab
Drivers of 2006 EVM results
Property & Casualty
– New business profit CHF 1 695m, driven by low natural catastrophe losses and
improving pricing, terms and conditions
– Previous years business profit CHF 137m, reflecting moderate net positive claims
development
Life & Health
– New business profit CHF 391m, driven by GE Life UK transaction and improved
margins on traditional
– Previous years business profit of CHF 328m reflecting positive experience variances
and claims projections due to favourable mortality and morbidity developments
Financial Markets
– Total EVM profit CHF 995m, driven by strong returns in fixed income, equities and
alternative investments
Group items
– Total EVM profit CHF 154m, mainly driven by favourable pension fund performance
and improved diversification leading to lower frictional capital costs
Insurance Solutions
EVM Teach-in
31 March 2008 – The Insurance Solutions acquisition was accounted for as a 2006 balance sheet
transaction that added CHF 1.9bn to economic net worth
Slide 25
EVM figures
ab
EVM 2006 investment result
EVM 2006 investment result of Financial Markets
CHF bn
-4.0 -0.4
6.2 1.8 -0.8 1.0
Mark-to- Cost of Tax, fx, EVM income Capital EVM profit
market funds expenses before costs after capital
investment capital costs costs
return
EVM Teach-in
31 March 2008
Slide 26

14. EVM figures
ab
2006 Group economic net worth
Group economic net worth (ENW) is the difference between the
Overall economic market value of assets and the economic value of liabilities
balance sheet
ENW is the EVM estimate of shareholders’ funds
Economic
Market liabilities At 31 December 2006, ENW was CHF 39.2 billion
value
assets
Economic
net worth CHF bn
39.2
30.9
EVM Teach-in US GAAP shareholders' equity EVM economic net worth
31 March 2008
Slide 27
EVM figures
ab
EVM 2006 capital by business unit
Property & Life & Financial Group
CHF m Casualty Health Markets items Total
EVM capital (average) 18 104 12 183 4 381 219 34 887
EVM capital is the measure of capital that is required to support the
business
EVM capital is projected until the business runs off, and serves as
the basis for the allocation of capital costs
EVM capital takes internal risk, regulatory and rating agency capital
requirements into consideration
EVM Teach-in
31 March 2008
Slide 28 Figures reflect the new reporting structure introduced for 2007 GAAP reporting

15. ab
Today’s agenda
Welcome and introduction
EVM methodology
EVM figures
From Embedded Value to EVM George Quinn
Summary
Questions & answers
EVM Teach-in
31 March 2008
Slide 29
From Embedded Value to EVM
ab
EV to EVM – different presentation & terminology
EV EV - alternative presentation EVM
Assets Embedded
Value Economic
Marked to backing Statutory
liabilities liabilities
market statutory liabilities Market Market
liabilities value value
EV required CoC assets Embedded assets Economic
Market capital Value net worth
value Excess NW Embedded
Value
VIF
Consider these Re-present
components separately
Embedded
Statutory Value
liabilities liabilities
Net these components
EVM Teach-in VIF off against each other
31 March 2008 CoC
Slide 30

16. From Embedded Value to EVM
ab
EV to EVM – “Balance Sheet walk” (I/III)
Swiss Re’s Life & Health portfolio under EV and EVM is compared below (values as at 31 December
2006)
Step 1: Re-present EV results in EVM format (per before)
No change in value from this step
EV EV - alternative presentation
Assets Embedded
backing Statutory Value
Marked- statutory liabilities Market liabilities
to-market liabilities value
assets Embedded
EV required CoC CHF 22.6bn
capital Value
Excess NW Embedded
Value
VIF CHF 22.6bn
EVM Teach-in
31 March 2008
Slide 31
From Embedded Value to EVM
ab
EV to EVM – “Balance Sheet walk” (II/III)
Step 2: Adjust assets and capital allocated under EV to be consistent with the allocation of assets
and capital to the insurance operation under EVM (= replicating portfolio + EVM capital)
This step only represents a change in notionally allocated assets, i.e. no “real” value
created/destroyed in this step
EV (EV asset allocation) EV ’ (EVM asset allocation)
Embedded Embedded
Market Value
Value
Market value liabilities
liabilities
value assets
assets (EVM basis) Adj Embedded
Value CHF 12.2bn
(EV basis) Embedded
Value CHF 22.6bn
EVM Teach-in
31 March 2008
Change in notional asset allocation
Slide 32

17. From Embedded Value to EVM
ab
EV to EVM – “Balance Sheet walk” (III/III)
Step 3: Remaining measurement differences reflect the aggregate impact of the different EV &
EVM methodologies across the total Life & Health portfolio (as at 31 December 2006)
EV ’ (EVM asset allocation) EVM
Embedded
Economic
Market Value Market liabilities
value liabilities value
assets assets
Adj Embedded Allocated
(EVM basis) (EVM basis)
Value CHF 12.2bn economic
CHF 12.2bn
net worth 1)
Although the overall adjusted EV and EVM are similar, there may be substantial differences between
sublines and territories
EVM Teach-in
31 March 2008
Slide 33 1) Equal to L&H EVM capital
From Embedded Value to EVM
ab
Life & Health EV to EVM – 2006 earnings
New business profit 2006 (CHF m) EV EVM
is higher under EV New business profit 664 478
due to projection of
Previous business profit
investment income
Operating assumption changes 409 377
on higher yielding
assets Experience variances -35 -40
Profit after capital costs 1 038 815
Expected return on in-force 1 116
Expected return on ANW 336
Investment variances -35
Economic assumption changes -88
EVM capital costs 995
Corporate centre expense allocations in EVM but not EV -84
EV earnings/EVM income before capital costs 2 367 1 726
EVM Teach-in
31 March 2008 Main differences are capital allocation, capital costs, and assumed
Slide 34
investment returns (details see appendix)

18. ab
Today’s agenda
Welcome and introduction
EVM methodology
EVM figures
From Embedded Value to EVM
Summary George Quinn
Questions & answers
EVM Teach-in
31 March 2008
Slide 35
Summary
ab
Summary and outlook
EVM is Swiss Re’s internal economic framework for performance
measurement and steering
EVM allows comparison of performance across all lines of business
EVM framework:
– Splits performance of investment and underwriting activities
– Recognises all closed book profits at inception (excludes franchise
value)
– Values all assets and liabilities in a market consistent way
– Reflects current best estimates
– Measures performance after allowing for capital costs
2006 Group economic net worth CHF 39.2 billion, 2006 EVM
income before capital costs CHF 7.2 billion, EVM profit after capital
costs CHF 3.7 billion
EVM Teach-in
31 March 2008 2007 EVM figures will be disclosed with Q1 2008 results on
Slide 36 6 May 2008

19. ab
Today’s agenda
Welcome and introduction
EVM methodology
EVM figures
From Embedded Value to EVM
Summary
Questions & answers George Quinn/John Baxter
EVM Teach-in
31 March 2008
Slide 37
ab
Appendix
EVM Teach-in
31 March 2008
Slide 38

20. EVM methodology
ab
EVM definition of new business
General principle
EVM recognises all expected cash flows from contractual obligations at inception.
Deferral and fund methods of accounting are not used. In any calendar year, new
business is defined as business with an inception date within the calendar year
P&C
Insurance or reinsurance contracts written or renewed within the calendar year are
recognised as new business. This also applies to multi-year transactions. Future
renewals are not included in the valuation
Life & Health
New business includes: new individual business cessions in the year, renewals of
existing group schemes, increments to existing group schemes, new group
schemes, new blocks of Admin Re business and new cessions in the year on any
Admin Re blocks still open to new business, and renewals of business that is
subject to active annual renewal
EVM Teach-in Financial Markets
31 March 2008
All investment and trading activities are marked-to-market and recognised as new
Slide 39 business
EVM figures
ab
US GAAP vs. economic balance sheet
Group GAAP balance sheet Group economic balance sheet
Business
Investment liabilities
assets Investment
Business
Value assets
liabilities
above B/S
Other
Business liabilities
assets
GAAP equity
Other assets Business
Other liabilities
assets
ENW
Other assets
EVM Teach-in
31 March 2008
Slide 40

21. EVM figures
ab
EVM discount rates
The risk-free discount rates that are used to value insurance
contracts are called transfer price of funds (TPF) rates
TPF rates are based on Libor swap spot rates, reported for 25
currencies and 50 years on a monthly basis
A charge is deducted from Libor swap spot rates for all currencies
and durations, to reflect credit risk in Libor swap markets
EVM Teach-in
31 March 2008
Slide 41
From Embedded Value to EVM
ab
EV & EVM
Balance sheet item EV EVM
Assets Investment assets covering Marked-to-market allowance as Market value
statutory liabilities part of VIF-calculation
Investment assets covering net Market value Market value
worth
Premiums and fees receivable Discounted at risk discount rate Discounted at risk free rate
(RDR)
Retrocession assets Discounted at RDR (allowance Discounted at risk free rate,
for credit risk implied in RDR) with explicit allowance for
counterparty credit risk (CDS
spreads)
Liabilities Claims and benefits payable Discounted at RDR Discounted at risk free rate
Future maintenance expenses Discounted at RDR Discounted at risk free rate
Future tax payments Discounted at RDR Discounted at risk free rate
Options and guarantees Stochastic models Stochastic models
EVM Teach-in
31 March 2008
Slide 42

22. From Embedded Value to EVM
ab
EV & EVM
Balance sheet item EV EVM
Capital cost Financial market risk premiums Implied in RDR Explicit market risk premiums
charges reflecting financial market risk
Risk capital costs Implied in RDR Explicit charge of 4% on ENW
Costs associated with PV of spread between RDR and for frictions related to the cost
conservatism in regulatory investment yield on assets of financial distress, agency
reserves supporting margins in costs and liquidity costs from
regulatory reserves regulatory requirements
Cost of holding additional PV of spread between RDR and
capital required to meet investment yield on assets
regulatory/rating agency supporting required capital
requirements
Tax on Allowed for implicitly The tax on the investment
investment income on economic net worth
income on is an explicit charge in the EVM
capital profit calculation.
Embedded value Shareholders funds (Net Worth) Required capital less Cost of Group economic net worth is
(EV) or economic Capital plus valuation market value of assets less
EVM Teach-in
net worth (EVM)
31 March 2008 differences between regulatory market value of liabilities and
and EV values (VIF) plus surplus capital cost provisions
Slide 43 capital in L&H entities
From Embedded Value to EVM
ab
EV & EVM – comparison of terminology used
Key measures EV EVM
Return-on-capital Internal rate of return (IRR) Economic return on capital
(EROC) = EVM net income /
economic net worth
Shareholder net worth Embedded Value (EV) Economic net worth
Value added by new Value added by new business EVM profit on new business
business
Value added by inforce Operating assumption changes EVM profit on previous years’
business business
Experience variances
EVM Teach-in
31 March 2008
Slide 44

23. ab
Corporate calendar & contacts
Corporate calendar
18 April 2008 144th Ordinary Annual General Meeting (Zurich)
06 May 2008 First Quarter 2008 Results and 2007 EVM (Conf. Call)
05 August 2008 Second Quarter 2008 Results (Conference Call)
08 September 2008 Investors’ meeting (Monte Carlo)
25 September 2008 Investors’ day (Zurich)
06 November 2008 Third Quarter 2008 Results (Conference Call)
Investor Relations contact
Hotline +41 43 285 4444
Susan Holliday +44 20 7933 3890
Andreas Leu +41 43 285 5603
Marc Habermacher +41 43 285 2637
Chris Menth +41 43 285 3878
EVM Teach-in
31 March 2008 E-mail Investor_Relations@swissre.com
Slide 45
Cautionary note on
ab
forward-looking statements
Certain statements and illustrations contained herein are forward-looking. These statements and illustrations provide current expectations of future events based on
certain assumptions and include any statement that does not directly relate to a historical fact or current fact. Forward-looking statements typically are identified by
words or phrases such as "anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may increase" and "may fluctuate" and similar
expressions or by future or conditional verbs such as "will", "should", "would" and "could". These forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause Swiss Re's actual results, performance, achievements or prospects to be materially different from any future results,
performance, achievements or prospects expressed or implied by such statements. Such factors include, among others:
changes in global economic conditions and the risk of a global economic mortality and morbidity experience;
downturn; policy renewal and lapse rates;
direct and indirect impact of continuing deterioration in the credit markets, and changes in rating agency policies or practices;
further adverse rating actions by credit rating agencies in respect of structured
the lowering or loss of one of the financial or claims-paying ratings of one or
credit products or other credit-related exposures and of monoline insurance
more of our subsidiaries;
companies;
political risks in the countries in which we operate or in which we insure risks;
the occurrence of other unanticipated market developments or trends;
extraordinary events affecting our clients and other counterparties, such as
the ability to maintain sufficient liquidity and access to capital markets;
bankruptcies, liquidations and other credit-related events;
the cyclicality of the reinsurance industry;
risks associated with implementing our business strategies;
uncertainties in estimating reserves;
the impact of current, pending and future legislation, regulation and regulatory
the effect of market conditions, including the global equity and credit markets, and legal actions;
and the level and volatility of equity prices, interest rates, currency values and
the impact of significant investments, acquisitions or dispositions, and any
other market indices ;
delays, unexpected costs or other issues experienced in connection with any
expected changes in our investment results as a result of the changed such transactions, including, in the case of acquisitions, issues arising in
composition of our investment assets or changes in our investment policy; connection with integrating acquired operations;
the frequency, severity and development of insured claim events; changing levels of competition; and
acts of terrorism and acts of war; operational factors, including the efficacy of risk management and other
internal procedures in managing the foregoing risks.
EVM Teach-in not exhaustive. We operate in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance
These factors are
on forward-looking statements. We undertake no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future
31 March 2008
events or otherwise.
Slide 46