Swiss Re (SSREF) 30 Oct 202020 Q3 Earnings call transcript

Company Profile

Participants

John Dacey	Group Chief Financial Officer
Thomas Bohun	New Head of Investor Relations
Andrew Ritchie	Autonomous
Kamran Hussain	RBC
Paris Hadjiantonis	BNP Paribas
Ivan Bokhmat	Barclays
Iain Pearce	Credit Suisse
Vinit Malhotra	Mediobanca
Michael Haid	Commerzbank
Thomas Fossard	HSBC
Edward Morris	JP Morgan
Darius Satkauskas	KBW
James Chuck	Citi

Call transcript

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Operator

Good morning or good afternoon. Welcome to Swiss Re's Nine Months 2020 Results Conference Call. Please note that today's conference is being recorded. At this time, I would like to turn the conference over to John Dacey, Group CFO. Please go ahead.

John Dacey

and well. or much from afternoon, very as me you good food morning everyone Thank with Bohun, months, here talk I'm Thomas you Relations of through to Investor the nine XXXX our results. New Head

few to the we just make the Before we quick this Q&A, about morning. go remarks out like I'd to a put release

quarter, the of strong the of XXXX, months million. that seen net performance all nine the reported a income loss reflects first a a of You've Group XXX XXX in third million net for which

In to these reserves month IBNRs. to nine X addition reserves remain bringing -- sorry, the COVID nearly the COVID of the to XX in period. quarter, the I'd XX XXX third to for additions reserves the just total amounted reiterate the billion XX% million that

income a a Life was in of year. of July we dividend to X.X Health we ROE that Group, and up for beginning the than turned XXX transactions. combined of X% X.X billion combined paid better impact In closed & billion. progress Capital, Capital's COVID-XX the for COVID-XX was losses to the $X.X ratio, the estimate the large track ratio months, XX% combined around, the for the premium PMCs the net of Life and positive with course know the sale I growth with X.X% year. Life XX.X% COVID-XX prior provided XXXX. successfully about ReAssure improving the group significantly supported the has that's ROE, of year up to conditions. XXXX increased continues an excluding in at ex-COVID a normalized nine the excluding XX on strong the market by and over from We're for billion remains Excluding business the a

the XX%. book to business of continued out build premium year-to-date growth We with open almost

credit market to with volatility July. of it noted And The the on ratio XXX, that's only that portfolio a million ROI as Q&A. strong the portfolio, the quality the the navigate of quarter We is quarter, over of the maintains were our an the management impairments third zero capital simply that, XXX portfolio Re with above credit of maintain billion. of not and Swiss third for of year-to-date impairments were ongoing reiterate for target that the portfolio, to us. excess XXX We level active continue Xst ratio $XX an manage a in the SOC a limit the to the I'll remained financial and position on X.X%, XX throughout the to hand target. It's I'd of with Thomas Group particular.

Thomas Bohun

hello well. Thank from you, you John, to my and as side

Q&A, each register the yourselves should questions. first take to have then question? the I'd follow-up that With to please you like two and start we restrict remind Before questions could to you operator, again, please we

Operator

first question line of Ritchie The ahead. go Please Andrew with Autonomous. comes the from

Andrew Ritchie

Hi. please. Two questions

point a of about I'm John, for type impacts loss COVID from second in, just you from wave one view. framework us first give could The thinking a if interested

I exclusion weren't a it weighted place place Now potential wave cancellation before. about in some maybe I'm I And the of event as a you've for appreciate losses. just defined more event? that things wondering, as second thinking second how suppose first could average. like example, prolongation you're got a that to is framework does it be obviously, But matter in

would some just useful. So, for sense be that

your would COVID about the a results? arising mortality long-term for and been I whether morbidity event could sense effects The the there just it want Thanks. from booking have notifications have obviously is your that for through. health second charges is Are get an the question what concerns effect on mean to as on come life. and outlook any

John Dacey

question. mortality the secondary Andrew, in of for to U.S. I The & seen color our major portfolio our & your Life started one and start exposure cases increases with there potential UK. little exposure Health the is specific with a a and in we've try the in in address bit on think thing I What Health and provide the is Life to a we -- is in in a our higher we lot of have unfortunate, we incidence XXX the reserves, that and than increases charges. effect in we June booked in insured what last the quarter in will be Back month won't experienced. actually of Europe but million quarter, the see U.S., on COVID second of the a probably when of losses expected approximately overall

with found positive quarter little of and ourselves retrospect. into And so third bit coming a we a the

booked losses itself, July plan the up through we to largely August, an The third IBNR month and have that in effectively the and come saw we've quarter of for September. according

to and have there least close be long at health seen impacts some problems pre-tax that, evidence On mortality COVID-XX So, XXX excess and who what health are other about And we that would a got quarter more indication validity. about overall subsequent already been that concerned suggest maybe parameterization we've rate morbidity, in we U.S. on there that with per we who you may would a the people seems holders XXX,XXX of of infected. third to is be million on the a long-term losses. the precise deaths, we've analysts through are for estimate, given expect provided help new the would expected,

is portfolio. premature which at closely around any morbidity see I time, what be effects to But to might just might additional modeling be mortality. world be for experts that are to looking an we long think, on serious able point we've this new continued available for information issue what us of and track it's what of ascertain make to to are the it dimension to in as to mean information, well access going as challenges term our the

wave. the second related Your to first question was

interruption, what in the potential you to want you property little where into we able quarter might framework event business the we that surety. to what book comes some from see away a bit think combination the from credit and of did a losses cancellation and third big migration I or related were

will events probably the a carryover the and credit actually and we CorSo of in million and losses not losses. with guess pandemic continue quarter booked, the nearly result third fourth those the quarter point. proceed proceeding XXXX, through another, between I of XX On So, into will some this or P&C as at would surety, the

more supporting the and trade to the which assisting interplay and specifically, more see national defaults, losses think between economic wild The near you that I credit as maybe companies see otherwise continues be programs, related long-term Europe we're damage card in are you'll here. defaults. especially

for play, see and interruption. will your, I real out. is losses book will I that we're through how the we'll of business I of trigger the claims, still the cases, positions the over of believe in what and the for terms been world we've all Mortality, have So, to might've disclosed, what of occurrence on And to simply IBNR in it. there, that's what waiting this fundamental degree? are how with agreement up mentioned, XX% the property in. think, claims unclear question think I exposure, and I've then but IBNR is level accumulation is plays We We a wave in XX%, the of the it's think think our it second books, appropriate observe many is presentation coming currently property PNC is the these of trigger additional our the a that

the the see of think across third long-term absent the what economies, we million. to CorSo a massive and that would you'll quarter. unfortunate P&C that's second some numbers of you absent more kind current. in an quarter kinds across don't out additional, anticipate muddling Western lockdown interruption in modest along a saw put I close And expect something for We of the business So, dramatic XX was repeat that movements, we've

Thomas Bohun

Thank Could Andrew. we the next you, question, please? have

Operator

The line comes ahead. RBC. next from go question Kamran of Hussain from the Please

Kamran Hussain

Hi, questions. two

Re, talked I add Do target half then we claims. It's is COVID big you. in kind I year. from our one. below positive for the development? just one month question think pricing? first some indefinitely and numbers XX% coming at best things question then And a well, of your your or next kind XX how guess pains of are on had nine based So, stage. a change and of underlying Thank just combined on you tailwinds is frequency should X.X you the second P&C improvement, the year guess to the guess I at year half about are in that's of this versus only billion The assumptions year put Or CorSo. you in? X.X kind it how Was did you

John Dacey

a lesser of that not in quarter are you a manmade to ourselves I losses. to have seem And XX us CorSo, but and you we positive what new yes, level actually relatively the I'd challenging for but normal of low make a understand still the something tailwinds. say, do and strongly we to nature to for particular in materially don't to somewhat -- you we well saw encourage some On second some modestly the we fewer It's take you're of prior the and losses meant adjustments late development, economic a has take starting of simply and that get in in you maybe spring you're being normal, would that that's these below a claims and COVID there as we think and early XX. XX, may out degree lower are losses. been you XXX more this levels the But that reported. manmade year the still of summer set above year, activity be gave the It quarter the have you, point, level guidance a

the would starting think for QX I what is With that's at the out play a say to of largely respect losses. with point we thought P&C was be I can what losses COVID COVID there. midyear on Re, So, coherent

necessarily lot right. potentially we think subsequent bit didn't credit I believe, you're the business on to exposure, a but are expect where there interruption. But in P&C quarter, a lines, surety light. losses, the in coming I is continued some something be we Re and The other have, numbers

to strongly occurred quarter last of year Now, governmental second this the triggering related in of aggressively event. reserved that again we lockdowns event, the we and believe the triggering were that that

comfortable we're quarter, occurrence, And the wasn't in exposed. so mechanism really that we which found that's by ourselves the other there much if third

Operator

Hadjiantonis BNP Paribas. next of comes ahead. Please question line go The from from Paris

Paris Hadjiantonis

us story, going dividend the the and regarding thinking P&C additional from returns, to and we've this seen you mean essentially then are as I CorSo how develops. being what capital the COVID consider net give are on all an seeing slightly you don't a is above tell this depending the same the SST whether loss the dividend yourself on in losses on we're going targets. Can perspective, my quarter where initial those the year SST you. you're Firstly, full decision an to can the Archer most might cover about one there last likely that shareholders your What losses due know is secondly, coming you're At despite obviously, to in offshore from, time your but tree equity that have for paying assumption you I there's behind COVID Thank year? an Can good of basically to know explain about you us you I explain year? you still assumption to have QX And well? idea likely, losses. additional a assumption

John Dacey

Sure.

So, second the let me will. if question, you start with

you're correct. calculation, SST the On

future a there. into expectation have losses We coming baked COVID, from of

As was look with with I mid-year like. could at expected a mentioned, coherent what XXX our third what quarter third total quarter loss we

and out then And so ahead for and into cases projected full we've some gone year, XXXX. the

the those think particularly the first ongoing still you increased other losses to and not the corporate is front. and continuing some I of that, the think dying in likely we've on to case people It that, mortality nature I virus. and pandemic losses how of say, on they out. And out property. quarter-by-quarter the solutions. got mapped about expected losses, we related unfortunately Clearly that surety involved and as cancellations, the are the optimistic play P&C fact in events credit that clearly the think Re We're are

IBNR losses migrate quarter, I new will is for. model, much I triggers but in of currently We've property mentioned the in put we a some that interruption. see As mostly what business responsible would they're of case the for think didn't way the indications when legitimate that got we've in expect that claims get we reserves for we're clear we up

with claims of Capital think for future I think position done I'd the you order observe, that's got about on. fairly to clear we've the management. capital respect ourselves a COVID we've So, should modeling returns,

adequately capable that of make Group The business. running solvent remains first is its the sure to and

to and I'd important I the increase can't of reiterate than Again, as have appropriate think this XX% think above year's simply is accrued and having that way part box end July of that XXX. of maintain harder where remains The that management we with second a think that dividend, Xst I the capital an any we ordinary SST can we've dividend in the up I of the through July. the calculation our of next already check Xst imagine SST I target, and on worked year.

The during second part would be second of half XXXX. accrued the

January the you And down with think X% have the where the pay the are have look we pressures we growing see the growth as contracted we've months, with. at for there our opportunities business, been on for at does important been continued price in market which in when renewables a nine our increases, much expected some believe strong. pruning you're orderly to but ability volumes are overall the we year-on-year all we P&C that But business surprised grow We've can to thanks lines that are portfolio, in Net us. premiums increases how premiums business, grow we're would as an up. pricing think, instead to pleasantly there dividend. places CorSo opportunities not Re on manner the not of third we're the remain seen first actually will has conflict and of to into comfortable when I

Operator

comes Please the question from next Ivan ahead. go Barclays. from The line of Bokhmat

Ivan Bokhmat

you got two much. smaller Thank afternoon. very Good questions. I've

strength? Obviously, The you over separately could the had same about volatility underlying in volatility have Maybe reserve the separately Thank we the the maybe hedging you? should what please successful there investment that in been the first expect could like casualty on the wondering outline U.S. additions? I the one, could results. strategy you in first if half kind in time And third reserve it's spend some understand you talk already that we navigating we've the quarter, and about developments as quarter, place, lines past? saw some year? the which specialty of question, some we talk the second about just fourth had, maybe as you've of from

John Dacey

Sure.

fairly call Re. reserve. would major I That development on the which a development, in significant take modest close you saw after if dominated a our what a we in we'd corporate part us loss solutions, So, actually, well. first for negative increase we out another a you for P&C the increase, thought, reserve new the reserve to year as October a zero. push you the release. by or negative major was And I to say I'd existing the into what black up experienced out, prior P&C Re, the was development, it had In there's prior information zero aviation the loss for ourselves to dominated if amount what third group, we with came reserve adjust zero. was but that we're of the the on modest for decision quarter black communicated leave We at to still expected a Overall red take in it a aviation been an had that us in that the conservative, set market where

movements With of quarter, gives up to to respect issue, this a probably still just one the not into very had of hedged. during of the equity we've up third or removed the results, that a starting other you put fair quarter second the amount hedges year. you this I the course together. specific can a there's of than piece think investment February part of that have the we portfolio We been which So, sense lot in

there first exposures early I investment I trading and adjustments we the Having to a in remain starting with is, actions remove the very most out Pricing, ourselves credit of and credit more the from But have side. quarter in the grade for think the watched we we've fed's what on XXXX. credit. down think, quarter important second to made come met the vulnerable that. most comfortable and actually XXXX sectors, continuing little

So I for book on the think Guido of result team, I quarter zero of quarter. in the the already behalf and made the impairments on Fürer his credit great

continuing would comfortable continue fairly through we're feel positioning. volatility I next in that think, about There's will market I week. the our expect to obviously

still it in got Let's cautious doesn't we're we've our if down, that think settle for hope it but investment down, reasonably portfolio. positioning I the settles

Thomas Bohun

we Evan. next the have Think Could question, please?

Operator

of question Pearce the The from go from comes next Credit Please ahead. Iain line Suisse.

Iain Pearce

Two Thanks for questions. from me. taking Hi. my

to exposures between as P&C your and made the on that, And is Re. and second see into loss lock one in loss you an in risks sort SST, reported. geographical lockdowns UK decreased losses. SST of you well, in that And just trying that QX on Just expectation around the and around to where second the actually number surety understand lockdowns? baked then assumptions the France, that in downs of noticed terms biggest the other you've of book you the if then credit second on Germany, I COVID second there

what's So, I'm there just happened trying please. to understand

John Dacey

that Re less way. might decreases million I But maybe very to there's an precision like than some there just, I X that million and other into of and along On trivial close we Swiss were that of some the referenced, really adjustment read XX it modeling. make people than the wouldn't maybe, other think positions are much and true-ups the were the than fairly second you one, nothing amounts and in there, say

geographic some We in in kinds to-date lockdowns be that are our exposures seems on what been maintaining that saw to but than affect legal we which to the we anticipated. it modeled. regions, don't that, following by we this lockdown, in modeled. to wholesale. the would UK expect exposure that contained, we and points for we excess other we've and And we bag of March I system was that's the do fairly than clean in if and got treaties contracts, is of comfortable. recur. saw there, limited think the not But the seems loss so be We in primary attachment a, think fairly high the the wording surprised in exposures, insurers mentioned, was didn't the even States, interpretation said, the certain the not On seen assume I did We fact was we've I more of second we What a April rulings part that, think see, remained the United marginally literal Court's the with expected by I in place. insurers, lockdowns activity, of favor as economic partial a maybe to a bit FCA in of we're mixed insured quarters. the relatively be might've what

wholesale suggests some our so, additional the estimate not but a losses along be that lockdown. mid-term way, And will there

in they're should existing to to might what April And in coming to business scope, even going and have is charge what scale, the part same been and again, you So, tighter respect case, those because to have if expect renewed that's than one to renewals go exposure with are January a we're back likely us lockdown are less be contractual June wording costly to and evaluate duration, Obviously, pandemics. at a July. same has the same second that to the of exposures the have forward. in

Operator

go The Malhotra of Please next from ahead. question line the from Vinit comes Mediobanca.

Vinit Malhotra

John. afternoon, good Yes,

Just of two sort follow-ups.

one First on mortality. U.S. the is

make this mortality excess on ran do I about I for XXth you come of has might I could side So, this do latest mortality up we're didn't your it become mean, numbers? Or it trying risk are only to look the worse very I up the CDC October. how few mean, worked like worse. least at in high. could instrumental of check to Because you? comment keeps thinking are other, in is you the reserve understand claims last with even data, was the how But are numbers? excess to your for past. topic solutions? of I was XQ you weight want question to you to It to booking help And XXth may you that in up. it the on was mean, how understand question weeks, some the October, students have have not back the about coming to the you. some that happened second raised are one solutions curiosity, estimate? and corporate And but you movements you in booked. PG&E, when understand been able There not because that share it's some And reserve case just just us not could whether is just or corporate Thank have this

John Dacey

Sure.

cause So, reserving on mortality, expected. on you're all we're versus U.S. based right, mortality benefit, actual doing that exactly our

through not we're the cause classification think as important. a death. or being upon we has didn't where of What death overwhelmed September dependent the we death simply COVID clarify third have and actually people to was I of In time being spring XXth. expect, or estimate people being were that systems the were done the number non especially is the to the of deaths that quarter the exact occurred of So,

in dollar on be us. might information lives, to have on for October and exactly particular the the right. you're to that, And lag be this responsive in primary a been a And receive on companies, gone data. information and relevant have fair, they topic on from we that there's fairly what the that short There's obviously, they our especially so on forwarding what's large lag Although subsequent CDC

the back deaths. calculation tragedy continue and XXX I the We'll rough another U.S., hundred December, a quarter. and I calculation to a be last per think this October to X,XXX to for thousand with the continues, day need the million in for plays we're and monitor if would It see per it three told it's we in relevant just out. that up deaths how a November you, in days

Our than that, those at of patients it in in clear states are the moment. materially wave, will the way procedures being the was Italian protocols, actions with moments is very Health at treating improved It's Northern is mortality obviously hope that, back individual some taken systems that April. improve. different not York the in is for or overwhelmed might've the New hospitals, been spring either

other U.S. rural to hand, the and On you capacity. hospitals areas hospitals urban and see being stories in about the in France some of Spain the full of the some close

multiple see So, that jurisdictions. and a out. we'll be pandemic how we control actual But this will that on optimistic these under plays itself back comes mortality the in just we're hope contained, bit dimensions

we the the through. source, are California normally settlement solutions PG&E, coming terms positive corporate don't CorSo the I the not particularly of think, in the relevant probably specify On was our but for business

years. positions, seeing smaller we're series a been trued for which of is prior had what think up that I

Thomas Bohun

we you, Thank question, Could the next Vinit. have please?

Operator

Your of Michael next Commerzbank question Please line comes go Haid from from ahead. the

Michael Haid

everyone. questions. Thank much. afternoon you to Good very Two

on expectations, XXX the think particular, give First, the already increased commented in, you assume ratio. SST XXXX, COVID-XX some on I loss your solvency also also higher expectations increases? interested moving in did price higher In I'm us parts below you in growth test, slightly there? my you can

XX facultative ensuring XXXX how well burning the this the crisis find If develops, earnings, situation then in COVID-XX into of insurance. maybe question, second might yourself new is the the actually. more year, and for problem in houses, The insuring one of the a philosophical business? that you COVID-XX

likelihood is high. You encountered event already or problem that, cancellation, for the cancellation a business this extremely but instance, of interruption

you So, handle the problem? which ensure on do you that other which have you come to how do with in how expect hand, this deal already, actually, you already relationships losses you place, probably, long-term this, have you

John Dacey

to the So, the points consensus respect on been question recognize SST, might've the with higher. that first a few I

of there through. the hedges, movements were some not what's have some might and maybe own think, people modeling, of exchange been some our to modest market foreign the and financial to come transparent impact I which adjustments

overall, And What I'd big strength, say, and robust not difference line not I a it's cause to But target of positions dipping most level over just market. the think, the it to around of for in remains think I landed that, at period is or a should percentage XXX, between the the no that where be is one we for Frankly, just face capital point XXX, we should reminded consensus overall we a or be that XXX. we the concern. X of red whether XXX, a capital particular time. industry. reiterate addition longer in that's expect below be that fixation

number. So, continue we to, to move, that expect plus long as or minus

So, that's the one.

I Your first think. question,

of the is specifically, obvious event cancellation potential of set of is through are insured, effect the One lockdown world decided the one, this the for in is was had probably XX-weeks XXXX, On probably result, in in the that previously, And insurance, simultaneous the to that harder a anybody to around obtain, something as worldwide to, very it's while the X itself not accumulation solutions clear play linked the we've event, what event think cover on been subsequent economies I makes corporate this Re that pandemic second exit a of restructuring to basis of business. these losses thoughts. swan and cancellation, a hindsight than the black couple on fact the pandemic on to a we events Swiss that of think a coming for a industry out I broadly I line of modeled. missed say can not

We And see is existing book insurance guess the losses holders that it's pricing. the I is required running-off. But expect be don't be by of some may bigger gets through through, My events. people there. to actually not. the in about is be think you it that simply XXXX. the some There'll a so cases, which picked for covered. are what hosting to And event May, up be events, my they'll coming exposed effectively rethinking cautious won't especially we're be write particularly the challenges those CorSo unfortunate, exactly create new to because is degree And guess

broadly the more think I business on interruption.

want yes, the in about will wording is the have people aggressively, is for for going business. in different reinsurers of adjust tends contract, I forward last. and And the it that And line events, this first clearer say But exposures, if work companies credit between may not be be not changes be primary losses, to had want. be which to losses. a pricing on kinds surety of pandemic in to exclusions of won't it these basis. related their last is the people again, This think what bucket Source they through, primary I'd insurers much dramatically a between companies recession the and going and underwriters is lines re-price covers

I done not that business think continue there related function, will with So probably line of we're to losses COVID. to but

Thomas Bohun

Thank please? you, Michael. we Could question next the have

Operator

question The comes ahead. Please from the Thomas Fossard next line go of with HSBC.

Thomas Fossard

afternoon. Yes. Two Good questions.

on is was. it's the coming whenever -- writing the one would capacity, by fairly led you when more driven any was destruction abused, actually, by first the be not It's upturn or and The you on discipline. cyclical massive

of commercial strategy Swiss be kind start So, very, of environment, Re is the market important. at in players, like big the the year to Munich of and this clearly very in the next going

you the second for from annuals. would some maybe what if Swiss the there, to for going would coming playing are to you mixture, or preference. elections. Thank be And John, the of your business feel not be winner that? a could us, the which you to a and Re benefit I if to you. democrats maybe you're to implications year. next is there's question be asking or market are I'm one-on-one going had to say opportunities mean, going Swiss thinking any one or mean, be, could relation on the tell Munich and U.S. in thought I leading we power or So looking I it's the be about Re if But capacities

John Dacey

vote second the question, personal looking room. which Ohio. I respect around, With I'm where one might the will was up, the in few I only on my think your although this of retain I grew I'm I able As question Americans I on American to the in state to vote, phone. the be is

anything to world vote I'd overall on What a good that say, would thing, Thomas uncertainty financial the guess, is think this probably going markets is matters be like selection. reduces one, I'd that of for to my say specifically level in in I the the I thing. So, only broadly

from the And I that of result clarity ready the aspire next. to if election what of there's And for getting happens clarity to a us a move exists, to what next for mass so, reason able be is on think week. I

we our and got issues. There that things beyond issues that, geopolitical of sometimes to So, with expect, be we've what Munich a some to the of But, the a it's do actually Swiss, think I and company not move there. about on portfolio. lot to be Swiss good as is might With yes, out just major opportunities that disciplined we balance be global whole first a respect I'm reinsurers risks your forward. question, all and but

players, the far reinsurance to which allows the that for whether And the of major to largest more. commercial maybe component by I is increases things for think, And there equation. in think, Chubb for they the market for If them maybe are price write, first and the insurance, and appropriately frankly, important primary most the reasons part see getting very four the out market. is, optimism on provide, afford, counted you reinsurance or to which the like I be they're players gets that prices of price as the is or the in able which U.S. rate is it's, quickly risks higher two the European improving. I

be losses. down XXXX. second going as a into related QX, they the what reinsurance expanding to is get losses more The on very And companies continues to we and of have shown booked the to we've thing buying whether demand again, they COVID COVID retentions reserved The can seen lower in they expect there's and one that primary that or players, interest it's we maybe have but other even programs reducing and the strong. in more risks remain be

capital by by on capital also side up replacing alternative start-ups, And the did And has new out doesn't system taking ourselves, another coming simply while that modest. COVID been think related anticipate. which pretty property been we the having P&C the necessarily, third capital otherwise it losses. not a some but alternative market, which the I'd some burned loss seen of grow. basis. a It's The is capital there's yes, I coming into on they doesn't a many of relative And is pause, that source COVID access shrink, which argue in losses, cases,

is investment overall, constrained, makes supply for risks And So, lower optimistic. inevitable remains demand the the covering strong. need given the us somewhat income

Thomas Bohun

please? you, Could next Thank question have Thomas. we the

Operator

question line Edward Please ahead. Morris Morgan. go of next from comes JP The the with

Edward Morris

me. for questions Three

First, the you're there's has pretty I of to loss other pricing combination means level sources rates increasingly, on last about adding low can than to side, underwriting net higher about the more you're keep feeling cap of margin. talk the just the and that the that to side, last And is Obviously, of you understand think similarly, few obviously seeing, interest just high. years, on sort you and more cleanser really inflation the a of need been relative experience expected how over trends?

you SST far, something remind so know given then, outlook you've And talk the So, and us going on is to if buy between just, on then level. if are imagine wondering, talk as conditions I can demand what question, difficult COVID I to claims how from and would just to outlook take. you've could actually it's think COVID by you business could just through is these does of as fair would P&L. products, What have going lot, if question, talked COVID? overall these or where then a but you remind just for And aggregate events. know possible, play I'm the classes But if you me, to your a going demand very tighten insurable a I very hypothetical and possible insurance assumed what myself for imagine, a has difference of I'm -- I ultimate little maybe secondly, buy wonder about not it, sending could that areas about transpire allowed affected if sense you've it. bit So, do really think And is to ratio the people I margins, what other supposed we've that some people I But what say level a within it luckily you. overall? the going think, can forward. you there's remember seen was underwriting been can't I you just are both to pure presumably, that you will Do overall, if sense? this out assumption think and pandemic cover you Thank don't be more than do of buying before, an ultimate the an around

John Dacey

right. All

So, I'll one answer. be a take three will questions quick because very

in just SST there in With what our started price we third I got the by be and income will points be notional needed coherent we've to increases. should calculation which for expected, our for see last an remains a business. says, Again, that what this with what businesses, the points to ultimate through. to we utility investment covering rate between were continued ultimate, On we I our returns. the percentage But think quarter our that, COVID, not component the absolutely a which I were expected reinsurance for new respect previous four percentage what to it to yes, need saw Two processes. specific through disclosed our also pricing, revisions when some booked decreasing cover sucked X% months of with increases reiterate, but difference up we was on asset more of of at we six as portfolio, valid part models said, and that for not think and to a recognition we part decrease respect question, contribution so the in we from

levels. that's on So water, improvement in that's a January those and it's price our why we'll necessarily making expected this not increase, we above I head price continued X, brilliant that see but think, keeping

the covers outlook. On and specific demand

market in point or interesting But the pandemic that, there's, that fundamental could Institute you've capital $XX these other out some yes, SMEs heard, and industry Christian was about, economic says, related the with product at our it's damage going has loss the re set to innovation. we areas already have. of And talk the it is think I their And, not year. more the we insurance involve pandemic in some there number than business level manage. paying, to lockdowns true be a trillion which $X base just potentially go economic primary insurance the something that trillion, this whether due total Swiss a to back interruption with industry not to frustration cases, in can some the are associated not frustrated just is loss that can of losses this manage for a the

adjustments risks some you're not So, to which But of by going certain industry. end to this insurable day, there the see think I are products. are at I think the

Thomas Bohun

next please? Ed. Could the you, Thank question we have

Operator

from KBW. comes Please from question next Darius The Satkauskas go ahead.

Darius Satkauskas

question please. Hi, one just

primary You are the rates going said up.

seeing for the of pay terms What actually afford can particularly are Thank in side? more insurance. proportional communist the you. to you So, commissions,

John Dacey

I our you I some not were -- players up pruned. the primary about the increase, So, solutions, major mean, renewed, which talk corporate they is when U.S. they XX%, the market they XX%. price industry what say again, other is going saw in portfolio

the a businesses, even to there's in were retail again, think adjust commissions we adequacy all lines, the when at again, directionally overall I we for that's we certain we complex. across receive have of we for some see to the there. X%, rates the three frequencies in sufficient. questions lockdown for mentioned, saw price But as to are be with know, we'll we're and made think it for The about expansion lighter is, see it income. to particular, of it's that motor about lines July and than believe just with justify renewals geographies more price major across those you ago, But that and/or about I the our all of accordingly. But our saw for increases notional what commercial we going we're some a but little a that personal reinsurance, little spaces. the least, component effects those portfolio. -- more talk a lines, have before, might broader was that to opportunities And optimistic that increases we're, increases motor sensitive more And prices insurance, on less correct, pricing reasons that a I've through investment justified not specific European

Thomas Bohun

Could Darius. the question you, please? Thank we next have

Operator

question with ahead. Citi. Please next Chuck go James comes The from

James Chuck

Hi, of please. quick on the you focus John, the it things. property Two the questions COVID for losses mainly of about me, talked everybody. side

on just And get be compensation, particularly this, example? to going go XXXX. COVID came courts. to quite of for to the Obviously, tail in, things on yield. Just but your lots lines up D&O there's a long such can losses should online there's think in perspective into to liability that investment end And about workers as How then and we secondly, the outlook.

sustain confident level? Thank you on us reinvest kind you So, you'll How you. excess one that give in Can terms X.X% as guidance that nine the are able of leg on What's of any be points the at cash? was basis headwind investment? to I months. think that

John Dacey

question, plays an a I works well which to actually on surprised disputes how terms disagreement what of in treaties litigation might of book be how some for the as potential claims. first that But your out. to over disagreement respect I occurrence accumulation be see the and under property we'll find guess itself With won't is losses

exposure, that for some to closed positions -- in to okay. been had due area big be place workers insurance now workers' captured U.S. comp. the not premiums we've set the the is fact one major the On recovery been that. degree that reasonably economic there has lines, decreases that the of the some an of recalling I have of the think has a by got at It's been seems specific is least functioning liability to but the It well-behaved been which industry

rebound not through, coming us. in side, yes, some that's I even losses probably of necessarily the think the share to there's be for D&O mitigated But a again, prices by been likely relative particular. big exposure

out. will losses to plays not much people lines losses. the and come set around a ourselves In of rebounds. at the all that material we've related we'll the reserves didn't of some out have for some from liability particular, We stick in seen bailed reporting how that up on April see for terms COVID side. And But CorSo in of

out. itself in And down. remains sorts is X% We'll see respect X.X%, largely With position. IBNR how yes, so, that to investment there's it the yield, a

be least re-investment think moment, at in is between to current to to maintain itself at I We're economies of down political yield six until of cautious question. of multiple years about bit. but obviously, earlier going countries, the it's the risk change, the and now. on it. We're migrate to uncertainty and situation in approaching means the that the U.S. some looking X.X% time going Our not resolves duration the take consistent to just And be we're to things number that facing, the portfolio the to not that going then a with can try

it works. how see we'll so, And

Thomas Bohun

you. thank Well,

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