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
: The first question is just on the 2024 target of 14%. Now this might be -- sound slightly unfair, but I summed up the last 5 years return on equity,
and I guess something like 7%. Can you maybe talk about how to give people a little bit more confidence that from being -- having seen quite a
lot of bad luck over the last 5 years as a company that you can hit the 2024 target of 14%. And kind of within that, so in the second part of the
question, can you maybe talk about kind of to what extent you kind of considered additional bad luck, et cetera, in the cat budget for the coming
year.
Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst
: The first one is on the dividend. And just my starting point would be to assume that -- assume some form of year-on-year growth, now maybe a
wrong assumption. Given your capital base at the midpoint of the range even -- I'm assuming that even after the January renewal nat cat growth,
I think that probably is pretty surplus around the $4 billion to $5 billion above the bottom end of the range. So, perhaps, can you give us a bit more
clarity on the opportunities that you're holding back for from growing the dividend and particularly in light of the fact that you've got an attractive
14% ROE by 2024?
Second question is on the casualty reserves. It looks like they've increased $500 million in 2021, of which most of that was in the second half. Your
report suggested North American livability and cyber. So just any more clarity you can give on that would be helpful, particularly maybe on the
cyber where it would be nice to get sort of what that size is relative to the premium, which I think is only around $300 million or $400 million when
we last discussed?
Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst
: It's a simple one, hopefully. Just looking at the COVID IBNR numbers, it looks like it dropped from 43% to 31% the full year from half year. Some of
this is probably just due to the life and health increase in proportion. Is it possible to get the numbers for P&C specific, how that's developed HoH?
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