Swiss Re (SSREF) 1 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Christian Mumenthaler	Group Chief Executive Officer
Thomas Bohun	Head of Investor Relations
John Dacey	Group Chief Financial Officer
Thierry Leger	Group Chief Underwriting Officer
Andrew Ritchie	Autonomous
Will Hardcastle	UBS
Kamran Hossain	RBC
James Shuck	Citi
Iain Pearce	Crédit Suisse
Vinit Malhotra	Mediobanca
Thomas Fossard	HSBC
Ashik Musaddi	JPMorgan
Vikram Gandhi	Société Générale
Thomas Fossard	HSBC
Ivan Bokhmat	Barclays

Call transcript

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Operator

Good morning or good afternoon. Welcome to Swiss Re's Half Year 2021 Results Conference Call. Please note that today's conference call is being recorded. At this time, I would like to turn the conference over to Mr. Christian Mumenthaler, Group CEO. ahead. go Please

Christian Mumenthaler

our much, Thomas everyone. very that no morning good Chief John and where Thierry together Thank our Leger, hope and you're to Group Dacey, my with year just say here so a I Bohun, our to are. Officer; get well, CFO. all Relations afternoon Q&A I'm I'll Investor you you going with talk you the and remarks of results. on you from Underwriting I'm side good Group bit Head of safe through before matter into and the year. my half first this a few session, perspective half

the -- say So, last a imagine, as see and by quite that combined results, quite lot were that the in of and can underlying results The I XX.X% hard about better, finally into years, extremely look think, the businesses, at visible. you being with while the because overall, quickly the I year COVID over but I visible. the businesses Re P&C it's results open different work If already I we happy bit a through would off we're paying went two this go ratio. happy last or very year were overshadowed

some this to in the and casualty in have the underwriting target think on XX% I skepticism of so some cut of XX.X%, in combined nat I the that's cat. quite some the an we excellent set took of we remember actions On normalized below the January, result. side aggregates business it's radical Also ratio. when top, circle

ROE increases, have Life that where ratio very volume the Health better portfolio could see the high XX.X%, with the further XX% the done we of flat, and is despite but a think we and a & now significantly that with with by the could catch a already. we're fact scale, efficiency and I of with up renewal you our diversification combined price year-to-date

Re it obviously, heavily impacted and Health I'm pleased So, the P&C in. Life & is with trajectory by COVID. very Re

huge Africa. has I the South surprised think of India, US, by deaths, in also but amount in everybody unfortunately been the

just for all at we X/X are we in renewal losses are took COVID P&C wording bit in & and not So, Health also effect Re. can very CorSo whereas losses. The cautious because I'd an is from underlying underwriting the the that, on be non-COVID little separate see to little looking time measures the full very Life pay it's and here, a in you good. left exact side that actually

there's know, you As methodologies. different

to can try estimate that. You

pleased. here. very well, the very So, bit I'm underlying also year. side Health's And eyes, In technical successfully half turnaround the But in my cautious a is finished CorSo, has in Life & around first this completed. worked overall

you say As price two to know is as continue over they can about would that's quite be now, earned and will I years. have which you see year-to-date had increases. something, here XX%, the results They

is continues to momentum be the So strong, strong. very

target is above But one normalized a normalized above still -- the that still noticed the we trajectory. ratio You've the is is in combined CorSo have.

you to when to figures. very that able the full we're look at year be So hit confident

the COVID overall they market. And losses. finally very the in they yes, so position the the and have with And pleased direction then, where stand on

estimate. estimate. big the the have comfortable We're still continue, seen you as overall There's of portion about think I slides. have a good We to in a IBNR,

XX%. it's I think

tapering losses. the gave side. And said need figure how We P&C much tell but off feel before, And I at CorSo that, the on we at will this can it's that's we have stage time final best a we So, guess the as business and Life the markets then lines $XXX will in many than on & have side, less obviously we in. very we the Health two active how depend year. these on deaths much the the on of are of million until it rest

the the think encouraging and and Delta all variant going I in with death. hospitalization looking now and a this down very number particular, reduction there's of cases signs for at very, fourth UK, wave in significant

So, the at and are working vaccines well I the the variants bodes stage. against And year that's that all if beyond. this of then, think for case rest

over that's to have lead this a more who therefore, will like to just you remarks. I'm questions sure into Q&A. Thomas few So, and I'd Bohun, hand

Thomas Bohun

Thank all Christian, you you side well. and hello to much, very as of from my

restrict questions. to With first rejoin and start, you I operator, that, queue usual, we if yourselves as then could if two question, please? the questions before we the could additional So, have have

Operator

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

Andrew Ritchie

afternoon. there. questions, not to this first Hi, Good John relating the comments I'm ask. normally to Two morning. both made that

XX% gains. years protecting I last First gains the the fixed mean income. Re's yield over was term portfolio. Swiss of all, five there from the of the you lower much used of realized have fixed come Hence, realized fixed income income

So, I'm take sort not I of suppose. guidance to quite sure that how

non-fixed income go running should returns -- for fixed quite gains, the underlying or realized of I just new on in where very us income to materially you has I year-on-year. guide maybe alternatives guess should think materially recurring to? yield loss income particular income expecting dropped the definition noticed You're returns, on we could the fixed up to your make

I'm protecting a So seems to new what this saying just yield. trying like about just -- it's It interpret element. you're

you It's it's made the The headline. John, see second a Bloomberg, is, on I can't question a again comment. detail.

you you where losses. people reinsurance general. And more industry seeing context, you in aiming who frequency, the comment be insurers that or are You buying about I that at. realistic Thanks. say positioning nat in guess that need cat or that does You've signal weather of that are need in there? on think again terms versus referring to Who to to you're

John Dacey

two answer I'll for these them. Thanks guess asking I questions, Andrew.

I right. -- was you're on yield. quoted With the protecting the the first one

where to relatively solid that a the point interest just X.X%, the half income investment on I future point is the of got fixed think year, move outlook on result, to without first having in unclear. portfolios out delivered the we wanted rates in the

I to us think squeeze equity portfolio reinvestment the the positive should the more during for avoid nothing the they credit, so we're that the are impairments to of we of giving this got fixed on were going sufficient year up caution the the marks quarter. moves as I gains. portfolio opportunities through or And we rates But a you at to reasonable one; managed income whatsoever particular moment to the in side don't when around to the any think level than we're half see down first intelligent not private continued interpret comfortable and when credit realize in on portfolio we're we where us the go are. comfortable

you year As climbing a ago. XX-year rates the last interest from where up think said, I checked recurring X.XX%. back this back when was not X.X% at we're yield morning I surprising, are. But given at investment down to That's is X.X% The X.X%.

not is just we're business The the have reflect this. and that's going So on. we're environment thing to what's yield scenario going current to to hopeful that reversion some and through most our pricing manage important

change strategy this were without gains able you year and credit of think instruments. income don't material during I should first move significant achieve recognition that any half out of other a interpret to forward a just we fine. any we're think the I in this fixed realization – of as So the and/or

enterprises that priced frankly one quote the to people both is to deal rates On primary the another for in we second homeowners The at be what is that needs we and with for aiming our degree to the see the into flow or Florida I industry more weather was that in It we've insurance. around secondary the world think reality the doesn't the anyone to buy losses our able is we models. round what need improvements Bloomberg to of down parallels in do I from extreme to think California – it mean events. retail into commercial that

of agrees we the this We've the we've prices already example that the on prices current the But very the models risks these not we start are beginning underweight that because been. everyone have to Our chain think are was not at reflecting us where – Florida, of the where be of reflecting with are state think some continued reality. in classic there.

side. that of that the demonstrate people And to their typhoons fundamentally so time able of relatively the that's that of right the Japan which over A if for into rates them frankly picks, companies policies we answer. and the seem go down example in on where happen great cascades to high to where changed for result property pressure us reinsurance primary to XXXX be our our after And in picks that be put hope XXXX, a we was the underlying right as did with. are

Thomas Bohun

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

Operator

from Will question comes The the of ahead. UBS. Please next go Hardcastle line with

Will Hardcastle

everybody. afternoon, questions. Good Two

possible workers' has still first that would cases, it – I see a in is are and there second on on as a budget then what Re that be come number. looks regard, quantum of light recent lines development cyber it's versus comparator something way. guess increase changes Thanks. America And development long it out Swiss sufficiently this the And looking well? favorable are very that? It's to development? in week budget one confident record. at Is break to that or development or struck this it that you one a the within North The track nice within the expectations just adverse your is assumption small be the suggested compensation in catastrophe that robustly, liability adverse? year perhaps prior any specific guess adverse is its catastrophe to it this drove could between Is down casualty I

Thomas Bohun

would John, to questions? like those you take

John Dacey

year, that every of We Well and got belief in one that cats. we course the got the microphone. look during is course overweight we've during losses – the we first and year the frankly on our at – – the Sorry expected allocate with nat QX. of year the we've an

to expected served than and close on period actually know got well. off us very And over far XXXX we've any budget And exception been average. the that time. on longer HIM QX I don't very, losses, it budget of been we've We've So of any quarter. and frankly other particularly the a with larger the

going or Now any be the or good down bad up to luck. is year given particular

this this And between we're think where nat got third I do you should we losses $XXX and expect constantly. for has alone, include large expected the man-made and So Reinsurance events. we've probably the CorSo for that review that doesn't million quarter that the picks year. And comfortable cat

we Whether positions. events We'll actually If has we quarter of that prudent On business', four and for I of reserving do where last for in think it positive we're new able the the think one property certain adjustments provide. that. make us side, to. we've – can which I reinforce of that accident, don't need if in got for new evaluate. where been But for some parts P&C It's to now. in or evaluate net the health would holes we've the redundancies any be very cover specificity, been continue the other are is business. some lines the year-to-date. to reality don't a places, during prior level the quarters we've different is we the we of should funding Re information minor the year We good got asking of there And to we'll fully development, been on news a What in book. believe the found to say think clear. places we'll you're going other we basis But in do reserves, reinforce any many it's that

Thomas Bohun

Thank you, next we Can question, the Will. please? have

Operator

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

Kamran Hossain

Afternoon. Hi.

a conversations based The dating is backward budget. on my about, a budget? companies you following basis. and from budgets kind of actually about just lot I bit Will's talk cat Could and other with people calculated on understanding sector, first on calculate the are cat one guess, how just in of a cat you question the

to So, the of that issues these tend it's climate. kind in on don't portfolio. historical overlaid onto changing models data have, your is And they factor that

plus looks of losses. business like the more the climate reflects got billion I reserves. you've at on So, and of COVID the, really event a it of happening you models? and into happened Obviously, few XX% budget prudence kind like $X factor just guess IBNR in ago. is is level seems kind IBNR of how cancellation the a But second mortality block, question if that which just the words kind And interruption kind of cat the for it look of of calculate on events I change, kind year than your

how So expect develop clarity, to claims whether not you coming in, these have Thanks. just interested and reserves actually will moved in more year-on-year quarters? those or the get whether

Thomas Bohun

Thierry, the do John, you then second. want to question take and first the

Thierry Leger

to. Happy

So, on expected is the point always net cat starting with budget, loss. the so the

for So we you we write. have costing, the for loss in an year expected a imagine that business to price our in given

starting the then, And that's adjustments to for do So position the budget. profit-sharing agreements, regard defining several premium. with reinsurance we

part your with. on we as of And start Of to budget climate the that's like retro growth around play well, course, losses course, to late our reporting things comes get that question the and specifically is we loss of into and that change how because expected expected more that we disclose.

pick, change loss So, also and actually -- time. as for example would change, over we loss impact expected we the accordingly for our climate that on views budget our

Christian Mumenthaler

experts, model for in models forward-looking because, years. that really view to of and we just Maybe, if their for figure reinsurers have it I example, historical hurricanes to and forward-looking a physical think year, could the using dozens course, important models, all cat And that XX that's I of of et it's have and could the jump Terry cetera. who here. a nat last XX some team we data capture program ambition use trends And be stress, over are is loss

you indirectly, always change of climate we to the course for models, when do about calibrated gets -- all but that information back, calibrate you includes it have So example.

should in budget forward-looking element a see. there So, you definitely be the cat

John Dacey

And second reserves. Kamran, with question on to your COVID respect the

of together of in level themselves specific may definition coherent some the claims where for a are losses that some of trying they're through the their interruption from to the of that IBNRs. the dynamic, the and a issues a guessing, what of view frankly of have market And it. a different a pull come thinking slow and here book, reflects markets. I'm this remain In very we'll cases, pretty in view strongly potential they're cases, about of claims way IBNR thinking around business presentation other they identified the we has -- then, correctly And way to to the the You conclusion primary been current have accumulation, ourselves in property we're recovery. where event final seriously claim cases, are looking

the specific So, what I the might in can out side of say next some this into is, there's been to we relatively little renewal I the year around level. probably going movement on over the bucket again that at is some to probably sort would continue season this quarters. look but as we two last expect uncertainty, property year-end

about we with So, clear and disagree can we proposal they agree that. an what much not. can wish different a come a to as we expecting I either us were not There's or state do, in the industry, markets primary until with we're are

have as to that, I no this. this discussions is So, been want say say occurring. resolved. of a the But about been you big we've it got this thinking that $X.X don't nobody billion in there's be to or bucket remains, chunk discussions

We believe are well reserved. that we continue to

Thomas Bohun

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

Operator

Please James next of comes The from question ahead. with Citi. Shuck go line the

James Shuck

afternoon. Good morning. Good much. so thanks Hi,

about I yield about scope the the think So X.X% should based which versus the the standards. two first I that how I money asset is you're where my derisking? running has your and a at the market by strategic risk low X.XX% your yield think you just new X.X%. And quite the least that? treasuries. about actually And moment certainly maybe of of questions, appendix, half for income think looks year mean in Can historical in remind are we allocation think you on fixed at firstly, on is SCR me the like the the -- about saying I shown for in

annualize change income allocation? you directionally as Is just fixed to number question. X,XXX, around I asset going yield up the that sort if that my X,XXX first or That's of a go So, so. of

hear Secondly, the with about say on CorSo, Christian very the comments trajectory. you that I the and confident outlook

the half that's normalized for man-made a not positive two-point a because normalized, were benefit. man-made Just and about but it's bit results first XX.X% about losses losses

we're of So to excluding XX% that, sort closer or to closer XXX%.

So, when you below track a the make of losses. man-made low benefit your on that's comments level around XX%, getting from

be track plan why you. about on So, you're would so Thank you're versus just comment helpful. confident

Thomas Bohun

do John, to the the Christian, want you first second? question? take then And

John Dacey

Yes, sure.

I I to appendix, credit, reading loans. in portfolio, bonds, respect page loans XX% other investment the with XX. XX% some XX with XX, and we slide current on having this in and James, had mortgages So, deck in in think trouble light, equities the this on policy the -- another am XX% government or

So you modestly XX%. the of reduced We've the the increased have down from to our I year. think a the give XX%, cash risk -- to position beginning from sense, we

runway, the We bring if point to onto time. sheet have of we want additional this to some risk continue in at balance

asset comfortable the with team is are. think they reasonably where management I

continue we private modest very inflection a equity have point don't see So, yes, recurring those going to return we've industry us -- increases alternatives trend side, you see support primary the says, income of a on dramatically. don't helps this to think continue as yes. Re, down? yield in And increases, what's the to our we kind we I anything in this as spillover portfolio see point a We'll just that's getting need side in other not to directly will interest underlying this some on current core to The and an fixed frankly this. but job industry But with done reinvestments. to is to that got the teams Corporate Swiss will rates, strong continue rate probably, and alternative reinsurance price And But nice be of is the the available but also answer the pressure look with investment why underlying which the Solutions, frankly have, well. yield. under for side. for that effect

Christian Mumenthaler

think, right. And, I course, of you're

to man add lower we made, come number. you If slightly a

mathematically, some the would end two our increases if I as look So get of it there have team the through But quite of year. the I price and by XX-point-something. over earned gets we at the think, you say trajectory confidence that years,

at of it them down. different clearly, and confident, progress we yes, have They XX% the gave through. is looking which how Just tough so earned we at on. But I'm quarter-by-quarter yes. get and of this type also pushed stage, targets. will gets them But, now We business elipsLife a to

Thomas Bohun

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

Operator

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

Iain Pearce

for taking Thanks Hi. questions. my

bit underlying that or I entities just the of first inflows second operating in to development upstream worsen half different the the dividend the flag divestments I see know we cash following from the from The was the any a to was there Is on should the of this there And the Re on one be surprised remittance Is yes, group year? had point, normal of combined Health? to there? year cash due then, up segments. this on some expecting anything Solutions half the you've the a to sort sort pattern the year. ratio. Corporate sort restructuring happened remittances and P&C and/or the cash different to it of upstreaming Are any of didn't Life are from

as that you And there at four, elipsLife include and historics why anything underlying combined if So looking just flag we're there's ratio. at that slide the if worsened. look has does to to

Thomas Bohun

first you question? the do take want John, to

John Dacey

Yes.

the have respect this to -- I we legal the restructuring Switzerland right, to I done don't with think you're anything Xst read what So flag mean, Iain, of first of half. the the you July. would into entities I saw in dividends, in that effective

legal in at businesses. the second consolidated parent the liquidity want in our entities. see, highly both half be this I the what to any there's we year either But cause the and or the the and more think continue also next year about to subsidiary don't particular dividends overall company. for that concern manage We both, through group, liquid, capital, of to think ability We'll between between but broadly might

Christian Mumenthaler

we it combined the Maybe Yes. I normalized to ratio, to for think, issue normalize P&C make man don't reinsurance. on question the is made comparable the here

now. So with made, ratio if man be the is you normalized the last higher did would combined year than it

I don't to figure, remember can't can the Investor but So -- Relations that you. provide I exact know

Thomas Bohun

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

Operator

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

Vinit Malhotra

afternoon. Thank Good you. Yes.

a or that those indication these about. So quantification some my first you because some about That's weather first measures, question of perils. okay, kind that, the in year, from the the underwriting kind very been question. give to loss of we've effect anything able in or the direction earlier would all lower on slightly is was be floods of the and kind And Are flood to or talked there of we be reduction the to expected talking helpful? secondary us

to Second And could It to the I trend -- Thank just there's just just assumed helpful. a mortality that, losses. second reiterate so you that from fully your strange well half. more see. remark headlines, to would or thing Bloomberg very see would some I but have see out said -- very in should mortality, says loss-wise you be is, what I mortality But down might not if continue understand, that comments read as that, there John, clarify what major was still that mean, again, -- just you. be accurate, to in from

Thomas Bohun

second. the Thierry, take first and then question if could you John the

Thierry Léger

first weather, you take called the one flood it. on the as I'll and the Yes.

over of Day. is we not time, also the reduced will at to perils. And at talked the last emerge suddenly. Investor going these to we you that we it go remember So the the secondary away about actually assuming, volatility years trend secondary the have that indeed seen our the exposure we were were We perils, over assuming

we real as trend. a viewed So this

things. already, that adjustment example, models from were for did actually continue is, that we as we areas. the the one we the learn adjusted our models, claims, new what John adjust And, So we two continue obviously, also to other was of we've One model. mentioned in -- in -- Japan

one leads did, to loss which pick. an increasing we over thing the time that's So

The other structures up this we looked And didn't pick thing at cat perils can these quite in did looked we aggregates we And we is, that at don't secondary easily. very closely regard, like. we like that actually as anymore. these in a way, much

did and and exposure, So top those reduced had addressed coverage our we aggregate these we structure. not only indeed to also drop

everything triple-digit frequency avoided reduce. a that have of actions. loss is certainly own was It we it triple-digit certainly So And did that with in those that a would losses. be estimation amount area our amount we of

John Dacey

year. U.S. COVID things clearly is, in And, losses I'm loss up. where we The has would only What mortality all geographies we the States. vaccines the the that were related. continued not deaths was other but half of in did January of in exposure single than significant past. $XXX What first and on that for had down & XX% we've trends was losses to-date and countries our being was much U.K. equal expect million February Europe the Health continue of the We've in saw U.S. in the of are in Life quite say What number misunderstood some Continental I'm for sure the in I we losses What that has losses over Vinit, quarter given reduced down. tailed from biggest been the can dominant. of of had the quarter United two other of say obviously I somehow particular the that it the were trend Health sure COVID U.S. on The is mortality in number vaccination the And biggest that's booked because point. some quarter not one. losses that considerably. booked QX, the very success not headline bringing the the the exactly second to by Life & my thanks And from. did variants About if overall that losses came half we to quarter against our see

booked came from reported countries We some numbers forward. small The or of that numbers other those and not half going other countries. American second in companies. probably us up from little and losses of quarter will South bit primary interactions the reported were catch expect India, the be was was What after in quarter losses do out certain the with to actually established where Africa substantial some that considerable a deaths quarter second were previous Latin

levels of in I quarters. current hope the different I of reduce helps. we efficacy vaccines know the what that still of future expect these both rate the would losses So we to the with vis-à-vis the increasing functionality run think vaccination today and trends the variants and slowing but

Thomas Bohun

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

Operator

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

Thomas Fossard

afternoon. Good yes. side. Two Oh on questions my

to CorSo. one first be will related The

growth. the to and turnaround that or potentially think I program you're of So flagging normal the more you're return flagging more at end CorSo

line on help to And growing the the terms about what top expect start in currently contemplating should rate second you CorSo? exposures? we us could we you're of question to be getting seeing now top increases terms the in growth in you're thinking for you're should So, understand, related renewals. of Opportunities market of what and will

net ratio on it's the X% net of profit the with -- you of it's combined us higher. So a on the end Can basis? everything basis nominal year-to-date change. of impact you're guessing what update coming those at price on that, And X% day, I'm

and this put improved qualitative forward. mean, on comment going So you this it enough, view some further or your Thank I was just wondering be to if needs could if say you. in actually is

Thomas Bohun

question? would you take John, first to the like

John Dacey

Yeah.

I Berger The severe. to in, came Andreas remember XXXX think pruning in respect to that took responsibility. So with CorSo, important it's was

whether lines Third it's certain to ourselves lines that here of in much, And disbanded time. for considered but are result of picked without we just the reached the potential excess off what in move in were the U.S. these the by no we doubt, actually some is period grow not and reasonable portfolio the surplus those these business that to book we being we and umbrella that's challenging over competitors, -- in business. was price jettisoned. in be liability We liabilities. exit What you there but on we of we certain some of point. have lines up can half. very that of by from least business be lines see And Teams not cases be is what were better would again, consequent of absence shut the to expansion of did removing in decided the of down, We're any in coming as inflection reconsideration and first comfortable starting players premiums necessarily Where forward a more lines. increases earned through at from.

commercial are, quarter. They increases. a may We're be increase European So or property we're what at risks not good price an of rates book they in of see momentum making pricing. these growing. XX% premiums would not there is also from then carrying We're expect but the to least the the the prediction in CorSo getting We very forward. but is adding next new

lines see CorSo present. for even work. where we've So and necessarily this writing if And support they that see. book our in business we already them on put encouraged momentum grow new to the degree doesn't are does opportunities to They've to much got the should that valuable capital very the earned

if I'd -- prediction there's wouldn't acceleration we making So to today. they're some year, going end not are where but growth the on surprised, be see of from the where we're you very a

Thomas Bohun

on Thierry, renewals?

Thierry Léger

I'll question U.S. at on and quality renewal Thomas start the

So left as mentioned deduct what's And it will against increase And course not nominal that that nominal is price we we have already increase that improvement and much indeed, to be. the set this price the have yield we disclose. them you from we you're is if we promised increase that it. earlier there right, you result of observed we picks the loss and the in year against have the as

is is difference the significant actually, coming is improved difference from mix. the the So portfolio and --

we So as we've it said that have well. -- disclosed and

treaties the in on in side one are space. property space and addressing we casualty the the underperforming our So

to are those example cat ratio with you're addressing, typically in property layers typically combined ratios. So, businesses the are combined high Those LCR. exposure reduced with equally and one, on treated we social higher and and inflation for a lower

an move more strongly mix. result and lower by combined as So into a relatively we we ratios, that portfolio through and overall, high -- mean grow relatively actually with businesses combined business with the more, lower of reduce quite improve and also improved I ratio combined as the exposure

Thomas Bohun

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

Operator

Musaddi next comes line with from question the Please JPMorgan. Ashik The of go ahead.

Ashik Musaddi

you Yeah, thank good afternoon. and

Just a I have couple of if may. questions I

cetera losses you recent from that heard I million. So triple-digit quarter you losses first the the the million. of if then is And expected et it floods cat correctly mid about that all, $XXX third mentioned is a budget mentioned for

more the or season that hurricane still hurricane I mean leaves I million the would million. are those How mean, $XXX not that extra you season. just left less net? whole with are exceed confident So of we a gap $XXX

I one ask. would So that's question

P&C I I I think growth if profitable the portfolio is, more in Pricing main make the trying especially pretty that CorSo is higher as is I well? mean, But is thing in as premium Re still second to you is driving premiums mentioned the there what are like at moving the you moment almost COVID the are start can happen you P&C nothing. pricing the the this picking CorSo. mean well to when kind the have is quarter booked think do in one not. and million that about you from P&C volume Re remaining well. losses $XXX to But mean, third volume business. as whereas, needs The start total focus, Re. mean of for I is sure And But in volumes is volume P&C up flattish. of clear. the

or uncertainty, Thank So sight, what million, because visibility have just you there you. is it the some which just $XXX that is put that reason for you million? $XXX makes and of that line no

Thomas Bohun

want John, start those? do on to you

John Dacey

Yeah.

get cat, precision will respect South can. as to that is of be in with I floods working Germany estimates be land this. all this is the But the on likely are, be it's With budget South We'll Africa to to floods, loss. try outside with I combination going the mid-three these And we will think are in consistent calculation clearly forward. long in us. the we social what unrest Africa more for part you of is nat event, cat maybe expect as a the weeks in on move man-made and preliminary the in just to to of to next this the that nat should not So a what what digit respect said the

So We million nat some are I man-made have take a guesses indicate. If budget. with think than room are for combine we've cat more the losses, -- it number the when you preliminary there. do would $XXX probably which expectations we our got little over you might

What opportunities saw at think we answer I'll the with is future constrained in exposure we potential otherwise in to the The three that's third on pick well P&C question, that the are were us as said some not any year. year respect we One, very for Treaties to COVID. still set the I is, losses. property. happened the lockdowns. to on losses of take material now a of Obviously be might if or of there have first way up losses new half multi-years beginning

in the lower especially Very news. was even of of I was Tokyo can book. event also one, is ultimate canceled second including other pleased cancellation there what have CorSo see. reserved had we good on that of cost saw Lots the was than What were some to the are that the But say might Olympics. The events we occurring the ones cancellation.

second cancellation, support saw so which credit pretty bit companies to the was And fiscal a the shape. good side, actually surety of you positive and places. in event keep is on other a and on the reality continues modest what the in last governmental And stimulation at losses quarter some covered

didn't to year will linked of basically any to half surety year. $XXX amount million the any -- see relatively we activity be maximum those be it categories million at million close COVID would less half have the poorly that number maximum we give see I is the materially in things first credit were million in going well you expect that think the the so than experience $XXX And of on we're we The very year material $XXX had which and losses less are that phrase we but less small. $XXX to prepared take year. There's be that on first horizon, we would we've of half this in that than they than to predict to a for if a second time. But given may date. and for in we're to of specifically a If go this we point what's the the things the the it nothing go well, use lot to not left says

Thomas Bohun

on growth opportunities? the Thierry,

Thierry Leger

Yeah.

that turnaround has Re mentioned volume mentioned have growing been growing business been think the underlying the of are transformation through. There they I whole P&C through the On pickup, so I John has are growing that lines been and CorSo same. we and that

growth year. still no this and social mentioned we become of other also and this area currently, and but We've much found been area careful. brakes lines potentially indications stay the casualty where would So what Casualty inflation we I uncertain and P&C seen half move And have across if the in careful, in that's nat spots will Re. this growth always credit or social have Life, because the signs become a surety been growth where attractive nice contrary, we another is very first go think we on of example, seen more inflation there. into clearly. are that CorSo very bit we also an could cat for specialty To has are therefore remain could has on markets here way. there the us. that attractive to for impact

element usually good very, to how is that have trend that the seen very portfolio difficult a a it's non-proportional other move is trend It's is in predict my to a when good of generally to view understanding evolve non-proportional, we going we trend. costing. to because very which The we've quality

and So the have that's we a proportional our business. sign usually difficult first the predict. commissions in predict. there difficult to take the seen and a to but with of more opportunities that's very very confidence actions positive behave And half on grow decline How customers, opportunities do equally on of find all customer themselves their portfolios there, what to our But try that is if too. present will we

Thomas Bohun

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

Operator

of question Vikram with ahead. next comes Please the Generale. line Societe The from go Gandhi

Vikram Gandhi

can the I to from all got question. of seen one well. I've afternoon. with has speak sector year that as share on you. historical some cautious, just exposure, side past would Hello, comfort been regards crisis. know opioid some the settlements the I thoughts great. Gen. of good in US pharma hope doing X.X to I Soc Thank if you are be We've you group fairly your the with the casualty just years. over the level your But of

Christian Mumenthaler

Yes. Vikram. Thanks for this.

exposures were have implemented to I pharma movers across that our regard we we first in pharma have early had we with mean, among the X,XXXs with historically. since. So exclusion businesses

in cautious exposures adopting have very pharma think confidence with I particular. say So that can approach I a to been we

-- So observing – in but approach take today. a however, We've certainly we our measured would been but news surprise very of read them is all exposures see do were find the I with in it's still line the been those you say. And of settlements. settlements you we to none ongoing us expectations, still has a we and monitoring that

news bad us. So news or no particular to good

Thomas Bohun

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

Operator

go with Sir. HSBC. Mr. next is follow-up The question Please a ahead, Fossard from Thomas

Thomas Fossard

you. Thank

your to any wanted actually you also you couple position the capital if stakes the direction. wondering, of a And Just of year. start at midyear comments on make since disposed

clear of Thank and could what them use already. some and you. you got ideas on, hints plans the be any So if

John Dacey

have Hi, of our SST the Thomas. We'll the the is go go share midpoint and it's market indicated more get precise that through to above results. third that with quarter ratio as a Hello, June work with answer the John. to we've Look, through XX. we is what

don't our I anybody robustness capital questions. of So think the

that, to than further I be going year. which are look We'll capital discuss additional it's going the there complete any measures? is think premature I question to those. to says Your think obviously,

US the through. much with with earnings GAAP economic earnings We performance. as coming that the as are half first are well pleased underlying very the And

doing. And is itself two, capital the support Life our up of We one, half of year. of it relatively not those make box; continuing the of premiums grows earned we'll a that ideas. very position If Re back franchise in to our to we ourselves That's creation. know more at; remains a The strong And year-on-year. we remains frankly, it there business great sure a with very, so a think as terms out another terms see & that the if in capital value see continue invest strongly -- come than position we to we I where see place that we're in intact. in business small what Health even that do find you we'll what growth. growth important iptiQ with very this second should some are got X%. with, you looked very framework to is you But ignore, check overall how plays strong in we've

Thomas Bohun

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

Operator

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

Ivan Bokhmat

a Hi. Thank Good of afternoon. you. couple I've got questions.

Re. Health Life The on first & is one

quarters was Just drivers. the a some could you the excluding performance views very just share now. for has obviously, running if of been strong wondering, wondering, underlying couple COVID on I

very Some actually that the the flu been of is has stuff we're reading benign. pandemic

the just if wondering, I still on that increasing not on how said portfolio those you. exposure. of the the very effects is you've say numbers. then regions one-off the was on comments on if geographic could any wondering, and within So it's But you're -- areas of being been let's could growing the suggest Florida? which And is you types nat changing? cat selective take. you And secondly, some you you Obviously, just if you made flag have just the there that earlier coverage Thank into

Thierry Léger

Okay.

and losses we a underlying the drivers COVID not mentioned it's losses the of bit So the debate point on – an an think important & allocation sometimes is intellectual I that Life non-COVID Health between Christian, and -- straightforward. somewhat

noise or element some be that from allocation. coming could there So

developments difficult some we for in the which also Australia, seen And seen in was however, developments quarters. seen China. positive example example, good We've more positive have some have for disability We mortality after in developments across board. positive

for So generally year. half we -- as positive an of the we I indicator second But result. technical underlying say obviously, the that shouldn't a this take

On -- word selectively. the nat cat side, we grow use you the

layers. more single I grow specifically keen But to we're and with one very, every has structures model to frequency-related do otherwise very and selectively, think with XXX perils of we actually those. different

appetite So, much indeed said, think cautious And we the actually I there yes, is as over no been not are a there's particular preference. I have have big for Board. There balanced but very Though is say. cautious. cautious quite than are that that word And historically I areas but historically where last other is in just -- we more no example, the a news. year Florida, we can across

John Dacey

if add the point Life Health could & on I first underlying the Maybe just performance. on

two one has you might relapse or geographies there's universally that. products. been places less the It's little pleased As to where with Thierry temporary strong a said, situation. performance see We're across unusual. some Normally, technical a and good

The business by low thing high and part But it first are half where notional targets relatively level $XXX because ROE million at situation XX% looks XX%. other might by there billion, over you supporting The the The what end good flattered we've of below constraint. unrealized a expected. where billion more business at of probably the than capital. themselves $X reduced gains no the to that at how now we the equity that earnings got on the in -- right reduction is year owned have think, matter for is equity a and return I better has compared anticipated the supported in the a of current being of set $X the to we was

Thomas Bohun

there's in have probably more one We for Ivan. time the waiting you, queue. Thank someone if

Operator

go Andrew from Mr. a Ritchie we Yes, follow-up have question with Autonomous. ahead. Please

Andrew Ritchie

there. Hi

an curious as cost in -- guess become pricing us gave it to setting the you to just with inflationary assuming short -- the price and in do case X%. cost and I'm assumption loss given if this in context few I'm has I renewal, could a for not minus the the loss X.X% question but of just loss so disclosure you for come cost the year-to-date second type think January the that's across clarify it generally of think a Thierry. expectation the it question. off the Apologies fairly that. I nominal backdrop. if you simplistic is in is I been you there's ones. why was knocked for mix also of increase And the industry How the something that's

are the is season. below in to have grown that. On about I intervals, cat the or I'm When all return across Obviously, growth growth we specifically Is it your they hurricane nat exposures, about more across h return there return think thinking the US. intervals? unusual and anything

Thierry Léger

on When an obviously slightly. have do that well disclosed, has look mentioned you've the we loss cost of you So, to assumption numbers in this as impact business indeed on at it that indeed that the we mix has the number. reduced with reality,

actually adjustment what think on for and the So, casualty. just in example on side The has pick loss we we smaller specialty growing much been we property. to been have need more compared

of earlier the view and So part. between part that my anyway in year explains relatively later the small change the that

on US. cat point second The nat

I the have periods. the return indeed exposure we -- So, it, changed think, different you somewhat to called

we have we so the moved about more in the talking and belly five, periods, away period return into but are part. XX-year the we higher those call clearly moved middle return So, from are the what

XXX So, to mentioned. that years the not you necessarily plus

John Dacey

on first Thierry's pricing answer. a -- the base coming related might position X not inflation inflation Andrew Even And the to inflation just the that model. I also but a January just add social in took risk on was renewals, we on broader

earlier about of made assumptions. the while became we'd goods to a of So, inflation. for cost I on half talk already those inflation loss In bit people and it think that fashionable for year, some moves other middle

that models costing about. own that increase our delta seen not might you you're have in thinking So,

Thomas Bohun

you end So, to Thank call. to We'd with you for all that, like of thank for your come questions. the attending. the we've

If a weekend you have please team. and the to any Relations Investor thank additional questions, Have nice out you again. reach

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