Swiss Re AG Q2 2022 Earnings Call (Q&A) Transcript

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

Question: Kamran M. Hossain - JPMorgan Chase & Co, Research Division - Analyst : Two questions. The first one is, I guess, on strategy and reinsurance. It looks like you're increasing the level of cat business you're putting on where it seems sensible given what's going on in the market, it seems like it's actually truly getting hard there. Could you maybe talk about how much headroom you actually have to increase cat risk, both on kind of a rate agency basis and then also on an internal risk appetite? The second question is on CorSo. I mean, the numbers, I think, Christian, you said it's been a very good result, and it has been for some time. The ex kind of combined ratio, underlying combined ratio, [ex the], I guess, the deal you did suggest it's kind of closer to [91%], potentially, you had a little bit of bad luck in the first half as well. Is there any reason that CorSo shouldn't have a kind of [sub-90%] combined ratio in the near term.

Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst : Yesterday, we heard quite a bit about reserve risk and the read across from whether it be reviver statutes or inflation potential. It sounds like, it sounds like you (technical difficulty) recognize the higher inflation risk, and you wouldn't assume any more risk than normal assumptions heading into the Q3 reserve review. Is that a fair statement from what you've said so far? And I guess that I'd probably say, it seems quite optimistic given the spike in inflation? Or is that -- is it because you just view it as a short-term spike in nature? And the second one, just thinking about leverage, you mentioned the headline IFRSs in the correct way because of the unrealized gains, et cetera, I guess we can always strip that out. But even then we'd still be close to 40%, and of course, the peers will be lower in that regard. I guess, other reinsurers -- insurers are happy giving their targets, would you be willing to give an appropriate range for leverage? Or how should we be thinking about it? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2022 / 12:00PM, SRENH.S - Q2 2022 Swiss Re AG Earnings Call (Q&A)

Question: Teik L. Goh - RBC Capital Markets, Research Division - Analyst : I hope you can hear me okay? Just 2 questions, please. The first one is just going back to topic on inflation. So I'm just trying to get a sense of how you're stress testing your inflation assumptions within reserving. So maybe things like what is the inflation stress that you're assuming under SST capital, as well as anything anecdotally you can share perhaps what is the SST ratio sensitivity to, say, a 1% increase in inflation assumption. The second one, just going back to the CorSo reserve strengthening. Could you confirm that this was covered under the ADC to a P&C Re? And also, how much of reserves have been ceded to P&C Re to ADC since inception to-date?