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
: Fantastic. And thank you for all these numbers. I have 2 questions. The first one is your cash is now at the top end or the top half of your target
range. And you're raising your free cash flows, but there's going to be more coming, the dividend didn't actually cost that much. What's the plan
for this cash, particularly if at some stage, the Vienna Insurance disposal does get ahead?
The second is can you just go back on that U.S. mortality. So my understanding is -- well, my understanding is confused. I'm really sorry. I know you
explained it but I'm not -- I'm simply really slow. The -- you did a deal funded by funds, I don't know how that impacts the earnings which reduces
-- presumably reduces the cost of mortality, but you're still saying mortality will be higher in 2022 than 2021. I don't get the benefit of the reinsurance
deal. How come? If you could maybe address that, it would be helpful.
Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: I understand -- my question is if you reinsure and it costs you and you still have higher cost, I don't get -- I don't understand it. It sounds as if it's all
negative, it's not offset anywhere from the reinsurance. It's like you're paying money for nothing. I'm exaggerating here, of course. So I'm trying to
explain why I'm still confused.
Question: Steven Haywood - HSBC, Research Division - Analyst
: Did you mention on the call that you would update us about third-party solutions for your VA book and the first quarter results stage. Is that correct?
And what kind of solutions are you investigating on that? And secondly, I think you mentioned this earlier about being Solvency II ratio of each
unit is above your operating level, but you're not willing to upstream excess capital out of these units currently to reach that operating level due
to your -- the near-term view of the markets and the capital required in this business. Is there any point in time that you think there might be more
excess capital to be up streamed from the business units rather than the regular recurring upstream?
|
