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
: And I'm always delighted to see delivering despite all these upsets and headwinds and everything. I have 3 questions. First one is the net outflows
from the life companies and asset management were, I think, EUR 13 billion. The figure we see for a general account is EUR 6.8 billion, and I think
there's just under EUR 1 billion from Unit-Linked. So there seems to be a big gap. And I just wondered what is that?
The second is -- and I sort of asked this in half year, but the benefits of discounting less the unwind, full insurers not particularly factor, but it's true
for you as well is it's a very, very big benefit this year. I can't remember the figure, but I think at half year, it was about EUR 0.5 billion. So it's probably
unfair to annualize it, but it's probably not going to be [passed] over to EUR 1 billion for the year. And if you say, well, over EUR 7.5 billion it's a big
chunk of the earnings. How are you -- how should one think about managing the drag as this difference between discounting and unwind kind of
slows down going forward?
And then I was hoping you could give a little bit more on cash because clearly, if you're not refinancing and you've actually spent a little bit of
money on layer and stuff. You must be even more cash rich than before. And I just wondered, maybe you could explain where it's coming from or
any kind of qualitative would be very helpful.
I had a last question on the last -- sorry, MPS, if somebody breaks on contract to a EUR 1 billion, which would, I guess, would be quite nice, what's
the likelihood that MPS is sold to a party where you would effectively say well, now there's a break clause?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Monte dei Paschi di Siena -- that you have a contract, you are exclusive distributor for Monte dei Paschi di Siena in Italy, understand that if there's
a change of control and the break clause is invoked, you have effectively put up some which is less a EUR 1 billion or over a EUR 1 billion. And I just
wondered how you see the probability of things developing in Italy in that direction.
Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst
: I just have one left. Is there any progress on the 3 areas where you've highlighted previously about potential cash unlock in the future? I think there
were Japan, Hong Kong and XL? Or is this more meant to be a -- perhaps just a timing aspect of this. Is this more a year-end aspect? Or is this some
time in the future, perhaps 18 months down the line?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: I just had 2 follow-up questions. One is, I think you probably answered it, but I just want to double check what is the leverage now given you've
reduced that by EUR 1.2 billion. And the other question is on Health in the U.K. It's almost like a personal question. I've got a relative saying it's
greater thing buying a private insurance contract, basically because people buy it because they want to claim. It's not just in case I will claim. How
close are you to managing this given that potentially you have a change in behavior here?
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Yes, (inaudible) sorry.
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