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
: I had 3 questions. The first one, on the wage rises, you kind of said this was above the claims inflation. I just wondered if you could give an indication
of where we are. I normally think of it in terms of payback, but I think I'm being a bit optimistic saying it a payback. I think it's more future profits
rather than payback, but maybe you might say that it's payback a bit. On the operating or organic capital generation, I noticed at the half year, net
of dividend, it was 0 in the solvency roll forward. And I just wondered if you can kind of say where we are now for the second half, I know that the
COVID impacts have not come through in the second half, but I still don't know what the basic -- base numbers should be. And then finally, you
spoke about the kind of trying to make up for the nonsale of AXA Life Europe. And you said, reinsurance might free cash or capital. And I just
wanting to check if that would be the figure you have in mind is still the EUR 1 billion, which was the original sale amount?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Can I just ask? I'm sorry, could you just remind me, maybe what was the original guidance on the operating capital generation given in the past?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Yes, got it. Sorry about that.
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Yes. That's right. Yes.
Question: Kamran Hossain - RBC Capital Markets, Research Division - Analyst
: I've got a couple of questions. The first one is just about benefits on COVID. Now clearly, there's a lot of noise about commercial lines and claims
costs there. And we all know the kind of natural motor offset. Can you talk about other areas in the business where you're seeing benefits? And to
what extent are we seeing them in the numbers? The one I've got in mind is kind of health insurance and whether people are actually using it or
not.
And the second question is just about the, I guess, thinking about the second half on revenues, kind of very slight decline in the first half, a tail of
2 quarters. Do you think we're back up to kind of growth in H2 on revenues? Or would you be a little bit more cautious than that?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Look, one is, we kept some guidance for your 5-year plan and withdrawn some. I wanted to ask why you would do guidance on the EPS, given that
you have fairly clear numbers on the impact of COVID. Couldn't you have just said, well, ex COVID, our targets ex COVID? That's one question or
maybe just explain your thinking around that I suppose the fear I'm expressing is that you may be rebasing 2020 for the next 3-year plan indirectly
in that way, probably not even thinking about it clearly, because these are really volatile times. And the second one is on the technical margin in
Life. I really -- I was confused. Is it -- is what you're saying that the mortality is next to cost? And maybe you could give a figure on that?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Just also a very quick follow-up question, if I may. It's just on the P-GAAP, I don't know, the reserve in buffer, the EUR 6 million odd. You have EUR
0.1 billion positive coming from France and Europe. Is that the full extent of the kind of prudence in reserves from the frequency, which you may
have not booked in the first half? That seems to be what your peers have done, but the number seems low. So I'm just -- I'm sure there's more, but
I'm just wondering if you can maybe talk a little bit about that.
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: And the short term, can I see it anywhere?
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