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: Kamran M. Hossain - JPMorgan Chase & Co, Research Division - Analyst
: Two questions from me. The first one is just on the ordinary dividend. I mean, I guess, you achieved your target this year. Solvency is very strong.
You did grow. But in theory, you should have plenty of surplus capital. Are there any constraints that we should worry about kind of from externally,
maybe a kind of brief comment around S&P surplus there would be helpful.
And the second question, I guess, on the guidance for 2022, you've talked about inflation-linked bonds having a positive impact in the first half.
In terms of the life retrocession benefit in 2026, could you maybe kind of clarify exactly how much do you think that will be? And maybe kind of
what percentage above the 110% mortality you think that things are kind of running at this point?
Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst
: There's 2 of them. The first one is on inflation. I guess the first one is, is there any development on maybe average claim size, propensity of claims
settling given the U.S. court systems reopening? And is this the inflation you're concerned about and hence, the reserve addition? Or is it more
general inflation, and if so, I guess, where will we see this when you publish your reserve triangles?
The second one is just on the gross and the net losses that you disclosed. It's really helpful disclosure. So thanks for that. But the Ida loss increase
sort of EUR 250 million quarter-on-quarter; the German floods by over EUR 150 million quarter-on-quarter. Is this reflected -- I guess, is this your
retro, or was this the ILS component? And if it's the retro, is this sort of reflected in the pricing that you paid this year? Or is there a risk to that going
forward?
Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst
: Just as a quick follow-up on the gross and the net. Yes, I've seen that was mainly on the gross. It was just checking that, I guess, when we come to
think about next year in retro pricing, obviously, we're a long way out at this stage. But is that -- had the retrocessionaires has been notified of these
gross loss step outs when you came to price for this year or not?
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