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
: Good morning. It's Kamran Hossain from J.P. Morgan. A couple of questions. The first is, I guess, on losses from Russia-Ukraine. I guess you said
your update in Q2, and I understand you don't perhaps have enough information to kind of get your arms around how big the problem or scale
of this you might be. But to what extent are your underlying clients exposed to aviation leasing because that seems to be the front and center of
where claims might come from? And then any scenario analysis that you've done, how concerned are you about that?
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MAY 04, 2022 / NTS, HNRGn.DE - Q1 2022 Hannover Rueck SE Earnings Call
The second question is just on the guidance. Obviously, I think it's positive that you touched the guidance today, and you've already booked some
reserves for Russia, Ukraine. To what extent do you think there are other buffers in the business at the moment that can help to offset potential
impacts from Russia-Ukraine later this year? So far this year, you've had the life at you've got inflation in bonds, which really helped. Are there any
other things that we should think about when considering kind of guidance and the full year target? Thank you, Kamran. Maybe I'll take the question
on the guidance. Generally, we have our very strong reserving as a buffer, which helped and indeed, the inflation linker in this period of higher
inflation do help and are expected to help in the course of the year. Also we'll perform a review of our COVID reserving here. We'll see how things
develop, but potentially there might be some upside potential here, particularly the credit and surety line, which performed actually relatively well
compared to our initial expectations at the beginning of the COVID pandemic. So a number of potential drivers for conservatism, which supports
the guidance in spite of potential downside due to the Ukraine, Russian war and the direct or indirect consequences.
Maybe I'll give the floor to Sven on the losses and how we want to go about it going forward, including aviation.
Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst
: First of all, just big picture, any signs of inflationary pressure materializing within P&C? I guess was this notable in the cat losses? And also, any
developing trends occurring given the U.S. court reopening on social inflation? Second one is just looking at the gross to net on the cat losses. It
looks like you've already passed through about 15% this time around. A simple question, would this have been the same under the prior year retro
protection presumably not? And given the case session reduction, can you give us any sort of material impact what that's had year-on-year? I just
did a quick glance and looked at the last 4 years, and it looks like you passed through between 30% to 35% over those years. And I just wanted to
know if there's anything specific on these losses that would make it different, or if that's just the retro protection change?
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MAY 04, 2022 / NTS, HNRGn.DE - Q1 2022 Hannover Rueck SE Earnings Call
Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst
: That's great color. There was just one more just linked with the social inflation in the U.S. courts reopening, if possible.
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