Hannover Rueck SE International Investors' Day (Virtual) Transcript

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

Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst : It's a quick one on retro really. I think it does fit in here just thinking about the capital management structure. It's been a key differential versus peers in respect of volatility. And it's clear in P&C. And it could be coming apparent in life and health as well those kinds of things. So it begs the question as to what prevents peers from replicating this approach? Do you think it's cultural or is it a structural decision? And given you've drawn down a bit on retro in recent years, is it possible, do you think, to expect price change at upcoming renewals on your retro to be better than the market price change like it's been recently given your long-standing relationships?

Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst : Just a couple of questions on NatCat really. The first one is S&P recently published a report like when they're now looking at NatCat performance relative to budgets. Do you have an expectation that capital charges on NatCat could be loaded for those companies where budgets haven't proven to be as robust as yourselves? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 14, 2021 / 7:00AM, HNRGn.DE - Hannover Rueck SE International Investors' Day (Virtual) And the second question is -- it's more of a statement followed by a question. But one bearish view in the industry I hear is it would suggest that climate change is leading to increased frequency, severity of NatCats. And therefore, budgets in general aren't set robustly enough. But your budget is actually proven to be spot on as you provided over the last 10 years. The question, therefore, is, is the last 10-year average any normal in your view that would imply all budgets accurate and implicitly the peers budgets aren't? Or do you think yours is still overly conservative perhaps in the last 10 years isn't a fair reflection?