Zurich Financial Services & AMS An evolving partnership April Samulewicz Global Head of Talent Attraction & Recruitment CoE Zurich Mark Smith Client Relationship Director Alexander Mann Solutions
Alexander Mann Solutions Pioneered Recruitment Process Outsourcing (RPO) in 1996 Global reach and presence with over 1,100 specialist staff in 60+ countries Over 47 RPO clients in 30+ languages Three Global Client Services Centres allow 24/7 delivery Technology independent, offering our clients choice and flexibility Pure-play RPO, Contingent Workforce Management and bespoke Professional Services AMS received a Gold Award for Global Innovation at Siemens and Best Global Support function at Zurich Ranked Global Market Leader and the leader in Breadth of Services in RPO 2008, 2009 & 2010 by HRO Today magazine
Our Partnership Journey From RPO provider to Trusted Advisor 5 year UK RPO Contract Signed Graduate Schemes Contractor RPO Global Life Award Recruitment Training Contract Renewal Global Employer Brand 2005 2006 2007 2008 2009 2010 Executive Search Assessment & Selection Redeployment Exit Surveys 20% Direct Hiring & Brand development 92% Market Watch Employer of Choice Brand Experience Time to Hire 50 42 40 41 30 28 31 26 21 11 3 Days If I worked at Zurich I would have a +20% good work/ life balance +17% Zurich is a secure place to work 1 I have a clear understanding of what +11% Pre 2005 2006 2007 2008 2009 it would be like to work at Zurich AMS Zurich only employs the best people +7% Zurich pays very well compared to +6% other employers in their industry Working at Zurich would be great for +4% my career Cost per Hire 7500 6500 5950 5000 4253 3577 3026 2500 1925 I am excited by the type of work I +3% would do at Zurich My friends would be impressed if I +3% worked for Zurich Zurich offers flexible +2% 0 career opportunities Pre 2005 2006 2007 2008 2009 AMS -0% Zurich offers excellent training The leaders at Zurich are inspirational -3% 3 3.5 4 4.5 5 5.5 (Neutral) (Slightly Agree) (Agree) Zurich Benchmark: Graduate (Sept 2010)
Three business segments General Insurance Global Life Serving individuals, small and mediumsized businesses, commercial enterprises and major multinational corporations Offering life insurance, investments, savings and pension propositions to individuals and groups USD 34,157m Gross written premiums and policy fees, 2009 USD 26,029m Gross written premiums, policy fees and insurance deposits, 2009 USD 3,463m Business operating profit, 2009 USD 1,477m business operating profit, 2009 1 Result concerns FMS only Farmers Including Farmers Management Services (FMS) and Farmers Re USD 2,690m FMS management fees and other related revenues, 2009 1 USD 1,554m Business operating profit, 2009
Group strategic focus Customer centricity Deep customer understanding Group-wide customer satisfaction metrics Profitable growth Improved market management Selective acquisitions Operational transformation More transactional excellence and expense management Industrialization through dedicated Target Operating Models and The Zurich Way People management Better employee engagement, performance culture Systematic planning for future staffing requirements Financial discipline Disciplined, risk-adjusted long-term view Follow-through measurement of business decisions Organizational agility Clear accountability and focused responsibility More competitive organization
Group aspirations for business segments Growth Farmers Global Life General Insurance: Widen market margin outperformance and pursue market-level growth Improve Combined Ratio by 3-4 pts relative to competitors and hold market position Market average Starting position Market average Direction Aspiration GI Margin Global Life: Ongoing market share capture combining volume growth and sustainable new business margin Rank Top 5 of European peers by New Business Value Farmers: Ongoing market share capture combined with consistent margin performance Achieve top tier market share growth in US Personal Lines Source: Published company financials, internal analyses
Clear mission and a step change in aspirations We aspire to become the best global insurer as measured by our customers, our shareholders and our people: At Zurich, our mission is to help our customers understand and protect themselves from risk. Customer Centricity Top quartile customer satisfaction Growth at or above the overall insurance market across the cycle AA-level financial strength Shareholder Value Top tier performance in each of our businesses 16% BOPaT ROE across the cycle Paying a sustainable and attractive dividend Top-quartile Total Shareholder Returns (TSR) Employer of Choice High quality engagement scores High quality retention rates 7
Financial highlights in USD millions for the nine months to September 30 2010 2009 Change Business operating profit (BOP) 3,526 4,066-13% Net income attributable to shareholders 2,393 2,935-18% General Insurance combined ratio 97.8% 96.9% -0.9pts Global Life new business value 571 520 10% 2 Farmers Mgmt Services managed GEP margin 7.4% 7.2% 0.2pts Shareholders' equity 31,011 29,304 6% Return on common shareholders' equity (ROE) 10.7% 16.3% -5.5pts Business operating profit (after tax) ROE 12.2% 17.4% -5.1pts
Business operating profit by segment in USD millions for the nine months to September 30 2010 2009 Change General Insurance 1,961 2,508-22% Global Life 1,098 1,157-5% Farmers (including Farmers Re) 1,295 1,132 14% Other Operating Businesses -573-298 -92% Total Core BOP 3,781 4,499-16% Non-Core Businesses -256-433 41% Total BOP 3,526 4,066-13%
Our commitment to society
Our customer promise
Current print campaign European General Insurance
The result Rank 93 94 95 96 97
Our employee promise Empowered to perform We invest in on-boarding for future success Recognition for performance and contributions Rich opportunities to develop Challenging work assignments Growth, development and international opportunities Connected to Zurich Connected to the business, strategy, colleagues, customers and communities Work-life balance is embraced Focused on the future Our future strategy is exciting Strong Zurich leadership capabilities are cultivated and developed We are committed to corporate social responsibility
Employer of Choice Zurich s Employer of Choice Framework Employees Expectations Employer s Promise Impact on Workforce My rewards My ability to have impact My Job and my work Me M y Work Experience My career path My opportunity to learn and develop My knowledge knowledge of the of the business & customers business & customers Rich Opportunities to Develop Empowered to Perform Connected to Zurich Focused on the Future Attract Perform Develop Affiliate Employees have expectations and we as an employer make a promise to meet these expectations. GEES and external benchmarks show how well we meet and deliver on these expectations internally and externally. We measure the impact on workforce via defined KPIs in HR dashboard Business Performance o Revenue growth o Market share o Earnings o Customer satisfaction The ultimate impact on business performance is measured via financial and customer satisfaction metrics. 15
Discovery, Understanding & Alignment through Corporate Brand Employee Engagement Surveys Historic Employer Brand EoC Brand Workshops Zurich Values & Culture Employer Aspirations Compelling EVP Employer Realities Defining our EoC Brand Personality
Creating the Employer Brand TM
Bringing out Employer Brand to life through every phase of the Employment Cycle Example touchpoints: Recruitment campaigns Social media Campus marketing Careers website ATS Candidate experience Pre-joiner experience Recruiter sell delivery Example touchpoints: Onboarding Induction Employee referral Internal mobility Internal communications Employee experience Example touchpoints: Alumni program Boomerang campaigns 02.06.2010 18
And the toolkit to delivery. Local Countries Functionspecific Campaignspecific
Zurich Employer Promise Delivering the Promise Pre-Joiner Site Employee Referral Empowered to Perform Connected to Zurich Internal Mobility Competency Interview Tool Rich Opportunities to Develop Focused on the Future December 2, 2010 20
Delivering the Promise - Pre-joiner website Globally standardised warm, engaging welcome Ability to live chat with other pre-joiners to network immediately Manage pre-day 1 to do list to ensure productivity from the start Allows feedback into candidate experience to refine process & touch points 21
Delivering the Promise - Employee Referral Scheme Employee centric personalized awards Flexibility to spend & accumulate Innovative promotion campaign to promote & continually refresh Encourage the development of employee networking and connection with external and alumni audiences 22
Delivering the Promise- Internal Mobility site Increase retention rates through transparent development options Deliver significant cost savings in external recruitment Support delivery of Employer Promise / EVP deeper connection into Zurich & transparent view of opportunities to develop Building internal candidate marketplace as attractive as external marketplace 23
Delivering the Promise Competency Interview builder Technology enabled interview building template Standard Zurich Leadership Competency questions Ability for Hiring Manager to enter own role-specific technical questions Interview Tips Supporting Training courses Online training to support roll-out Competency based interview template built for purpose in less than 10 minutes 24
Leveraging RPO Financial Benefits Significant Cost Savings Risk & Scalability Scope expansion e.g. exec Search, redeployment, contract Performance Benefits Access to Specialist SME Strategic Resourcing Approach Clear & Measurable Analytics Focus on Quality of Hire Maintaining leading edge Strategic Benefits Constant innovation Access to Market Insight Proven Global leader
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