The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Congratulations. These are truly astounding results. I have two questions. The first one is on rate rises, the second one is on cash and third is on
Cattolica. On rate rises, I've spoken to a lot of your peers -- like my colleagues, I'm not unusual in any way -- so Groupama, Unipol, AXA, and one of
them...
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: This is better?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Sorry, is volume low?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Sorry about that. So rate rises. So your mainly personal lines. I just spoke with AXA. We've spoken with Groupama and Unipol before and all of them
in various markets of France -- actually it's more European, and Unipol's [obviously] Italy -- say that they're having trouble raising rates at the same
pace as perceived inflation of -- so perceived, I'm never quite sure what that means. So I just wondered if you can comment on that and whether
that would affect margins, because obviously there are other things, you've got frequency and things. So that's the difficulty in raising prices.
The second is on cash. So EUR 8.4 billion net cash remittance for the last 3 years, which is an amazing number, given that your initial target was
over EUR 7.5 billion. But the next -- it makes the next target look really like -- I'm not saying it's easy, nothing is easy, but it looks -- it's EUR 8.5 billion,
you kind of think, "That's not much," and I just wondered, maybe you can comment how much conservatism you've built in or give us a feel because
it doesn't -- it feels a little bit low relative to what you've achieved.
And then the final one is on Cattolica. Given the accounting and the change in -- from equity accounting to full consolidation, et cetera, et cetera,
I just wondered if you can give a kind of indication of what the figure would have been in 2021 had you fully earned it throughout the year, so we
can have an idea of when to create the model or what to put into '22? I can't ask you on '22, but that's the best thing.
Question: Steven Haywood - HSBC, Research Division - Analyst
: Just one question from me. In the outlook in the press release, you mentioned (inaudible) risk of downgrade. Can you give any more color on this
and any implications on your targets? And then you also mentioned the outcome of extensive analysis of Life portfolios. Has there been further
work done here since your Investor Day presentation in December, and can you give us any idea of what might have been done since then? And
obviously, with the current market conditions, does this increase the likelihood of sort of Life in-force transactions or management actions?
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