Full Year 2021 Muenchener Rueckversicherungs Gesellschaft in Muenchen AG Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst : Two questions. The first one is just on the nat cat large loss budget, I'm possibly being a bit slow here. Just working out, is the 12 points to 13 points move simply left pocket to right pocket and no actual increase in prudency overall? So should we expect the ex large loss ratio to reduce equally? And is there any element there of higher prudency year-on-year? And then just a quick one on Slide 60. It suggests the off-balance sheet reserve and associates has increased over EUR 1 billion in Q4. I'm just trying to work out what that relates to. Christoph Jurecka - Mnnchener Rnckversicherungs-Gesellschaft Aktiengesellschaft in Mnnchen - CFO & Member Management Board Sure. Yes, the first question, to be very clear, yes, it's only a shift, nothing else. And to make it even clearer, the 94 target we have, our internal breakdown would be 13% outlier, 51 basic losses, 30 expenses. That's our expectation, how the 94 in the plan would develop. So I hope that's clear. It's really -- it's only a shift and nothing else. On the unrealized gains on the various asset classes, as mentioned, I think you mentioned Page 60. And then you're looking at the associates, if I understand correctly?

Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst : Sorry. But was there a reclassification or did the valuation of that basket simply go up by over EUR 1 billion quarter-on-quarter? It suggests it went from EUR 1.5 billion to EUR 2.6 billion in Q4. Christoph Jurecka - Mnnchener Rnckversicherungs-Gesellschaft Aktiengesellschaft in Mnnchen - CFO & Member Management Board Well, I mean, it's not a listed or liquid assets so the valuation is not done every single time we close, especially not when it comes to just showing reserves. So it's -- in reality, it's a smoother development like what you would probably read out of that slide. But as a matter of fact, it's actual value creation.