Swiss Re (SSREF) 29 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Christian Mumenthaler	Chief Executive Officer
John Dacey	Chief Financial Officer
Thomas Bohun	Head Investor Relations
Thierry Leger	Chief Underwriting Officer
Andrew Ritchie	Autonomous Research
Kamran Hossain	JPMorgan
Freya Kong	Bank of America
Iain Pearce	Credit Suisse
Vikram Gandhi	Societe Generale
Will Hardcastle	UBS
Vinit Malhotra	Mediobanca
Ashik Musaddi	Morgan Stanley
Thomas Fossard	HSBC
Derald Goh	RBC Capital Markets
Darius Satkauskas	KBW
Dominic O'Mahony	BNP Paribas

Call transcript

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Operator

[Starts Abruptly] 2024, there is much more matching between the asset and liability side. And we won't see this drop, which we have seen now in U.S. GAAP. And finally, on the targets, I said it this morning in the media call. And I think you can obviously judge by yourself with everything I said, I think the segmental targets are absolutely within reach, 10% ROE is very much a question of financial markets in my mind, also obviously, since we still have a billion of budget there, and it depends on how things develop its financial markets has been, a real, real strong deviation this year, have impacted us significantly.

see possible. there, you XX% course, if still are so any of recovery the And

just to within it's that course. So important the outcomes, of XX% and potential is still this of appreciate distribution, the distribution

with Q&A the So to session. I'll to hand Thomas that, introduce over

Thomas Bohun

well. could Christian, as have question, hello the my and that With you, all of first Instructions] Thank from operator, you to side [Operator if we please.

Operator

Andrew Ritchie from Please question first comes from The go Autonomous. ahead.

Andrew Ritchie

reinsurer queue pulled anyway. thinking primary on often maybe Yes, the degree there's cetera. will not there. particularly of scales, it. et book. insulated the trying business. proportional we're useful. understand color things the the on level, follow-up motor, first Hi, that I'm But in mean, I issues on on sliding seeing to Can a on you the to proportional I'm Christian, It's That just you motor at back from so obviously be particularly are that business, some protections lot might bit be just mentioned like a as you on there a that the

the what expecting? next us, you first I got number in and that capital Second I first that additional year. you've lot of you're increase to of just debt? was maybe in Or maybe Thanks. talk SST the also SST, some sort in through drawn debt think been that netted have maturities there's half? debt can debt, year. half And in you did some the your does down include off strategy September, early senior quite in of the but see in debt accounts a there question on the of reduction

John Dacey

Andrew. will I the first Hi, one. take

So, on particular. business proportion in motor

So right, protections there you're place. in that are absolutely

example, so if index has place than around, it that non-proportional on proportional bit. and it's is side, business have our scale, at in works our has a typically quite But clauses around sliding an you we perfect so business in well And scale, quite index more a environment. on inflation, for a current have match. a the related, XX% the the of sliding proportional, look such not XX% protection, protect we of from CPI so non-proportional, So

that as index but inflation reduce Christian is scales or in we in us. also so the our social watch inflation for from end that but clear inflation, already, us the clearly, saw at had. provides So also all the multiple these the was saw it's reflected to areas sliding in that the we necessarily we not example with year, an beyond different year, that to last or, kicking social before, And would protection, the during see earlier said as tendencies, go in we just not CPI also actually in conclusion non-proportional, are degree

obviously decision despite where being not shares, have these some took on protections such place, those that have more a that's those of course, protections So we motor all reduce in we don't and are books protections actually protections. of quota these

Christian Mumenthaler

it to course, the from just the sliding But not these here few inflation Maybe a beginning. these are yes and from worst protect add, there's gets infinite, of you hit they scales points worse, you. are can

Thierry Leger

of again at have actually reduce said led us powder which social it, But a will and of turn that doesn't forever. dry anymore to right protect you're right. and faced maybe that's with inflation that absolutely top enough, mean And lot exposure. on then might Yes, a that to X% Christian sliding heavy scale The five, attractive market inflation why and said seven eradication you typically, I as points, just they more maybe XX% of time. doesn't if we

John Dacey

not to subordinated the year. the on right, at a to the respect of With $X.X of I note there's another end $X.X sheet, funding we But balance facilities of senior think in a called amounts that total. billion brought QX, I we little additional preemptively the in bit expectation similar, note replacing three largely think funding, any XXXX. of Andrew, to The would debt those the be John. a is just do on are are billion pre-funded any rather, our the these maturing what smaller, was And sheet months, drawing end sense, maturities. but the on saw March in maturing of and financing, pre-funded quarter, as ahead both on the early next we three seemed you're issues make it's economically maturing when balance XX these funds market And the in securing the at the there's and of note the maturing May, April, a the issues, going senior volatility in the

has moment we in And I increase the June of of think interest the debt an billion cosmetically range. shift SST comfortable by QX, inflated the as positions an the dropped very first number as that, the you we're the come and think SST overall, Christian our at the of not equity think the relatively from in sheet, I as leverage October the was of detail out, been interest will is end we this And because on comfortable ratio, give both mentioned of final impact When high above with shareholders this with end overall it's looks of balance I July. big in the reality. rates. the this top XXth. equity economic the of Again, entirely in $X.X economic just reality, is really accounting rates with we're

Thomas Bohun

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

Operator

ahead. question Kamran from please Hossain comes from next JPMorgan, go The

Kamran Hossain

questions. afternoon. Three Hi,

and of to both CAT have you're on CAT what getting The then seems second on first kind truly The appetite? guess the you one on on in much in putting of level what's market like question is reinsurance, also sensible headroom risk it's as there. is actually an risk, internal basis, strategy business, maybe talk increase you're seems on given increasing you on core. going Could agency race about out how actually the a

in it's So I kind said suggests the and combined XX. a kind guess time, little you the bit mean, very it I of near-term? deal of sub-XX closer kind to Is been half did some ratio, it's numbers, in ratio, has I well. ex, result, shouldn't you of combined a underlying this the Potentially luck quarter any bad think exit, Thanks. been as combined reason a have first Christian ratio the of for there the

John Dacey

said the me start first referred but one. confirming to let the Hi, will see headroom, so further, next now take as we that Kamran. further and or happen arrive will I to positioning hardening an to the first you right do as we with as indeed feel see so. the On that area market we example, in in for continuity we and and market think is go attractive XX renewals CAT hardening the Christian specifically July months CAT

very we there. out are optimistic market to with the regard So,

In very terms from so of headroom, less. our headroom maybe large goals to

it different book split as know, we depends many areas. you on a So the into our CAT perils bit

have a lot of on some we appetite. of So them

they attractive So now we are very this rates. in come actually for and at pushing those hard market strongly

as other deploying example capacity more we is still nicely market. also as maybe good to we last headroom some was but more There around. some if do ride headroom into business, generally are where we get. play stellar have that feel year to which there, not it's them scarce. we is the And is areas wave the the what reducing, Germany presence of for capacity of new really we where could One the with But is the prone can very

to even And can home is Christian because why that the of and good business. certainly, hear some to actually go very better might being So what on is get even, have you better. is business good even positive also CAT make going for

we EVM can our allocation, capital into economic over profit So go both proportionally grow and space. can we

Christian Mumenthaler

capital underlying accessing we've to if for have risk with various understand retro of the our we our continued the a in the that to that are And gives date, a to that what where risks, out there compared that taking able way price books. to and we markets in to the elevated books of peak maintains some been been risk they on the actually to cede bring a for risks those the us demanded strength think year-ago, I vehicles, together that can, are we partners directly margin been by we've onto being I what between alternative with compensated manage prices opportunity our might

John Dacey

still paranoid market which about things of that question, project fully CorSo the course logic and might and I long-term past, the suggesting, clear of you years with what really seeing this take and in the this if business, we're and out. understand several go the I I say just you're think where about I'll

top is the they later me now. So that will importance rock must into And item. it do for be the CorSo balance in we push single results then that this, solid want every priority, And sheet to don't get is trouble. be

overall. important super into shifts diversified have that and through portfolio we a it's CorSo. getting some long-term lines for path that think I more And do sustainable we

that simulations if sustain. always which I've cycle, a that of in to can even basically the go we loss So is was through there what like tried shock,

to mentality understand we've the that sure and come So it's particular a safe, make predictions we future. what's I'm from, very for not sustainable that making want any path. just the on But

Thomas Bohun

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

Operator

Bank from question go Freya ahead. from comes of next Kong Please The America.

Freya Kong

please. Hi, good questions, Two afternoon.

QX be over motor earn Is P&C still And year. some the normalized timing something target ratio HX, last moving you combined and mix some So your changing what's reserve else? this? secondly, loss both the even despite driven versus the ratio losses behind XX% this to P&C the HX Re driving us for war do you and there think you this strengthening your on And seems proportional Could business or are just for being year? give a in through color for currency running CorSo. was backwards, adjusting Re bit by

John Dacey

that is loss good it go asking, bit, see we of we've races very environment develop, the first, regard were actually clear, an right. factual, which I where will right. in last so And to back right observation that maybe a volatility Freya, Re, high ratio On let P&C that me the you just your Hi, indeed, obviously made take returns first little with one. the question

explains to proportional environment, very the non-proportional that course, said portfolio also several business. to ratios. we have combined we explained attractive, that, in on would and the shift And we loss this from move have that more strong ratio. rather our now, we And times of it includes it's So focus where

So impacts our ratio. all of loss then that obviously

need this think would in I that. we what environment, So definitely to watch

we I do more because that I that volatile a business the Chief Officer, to the question CorSo it are And more such details feel seeing think a makes July, environment. with really to the into loss we in the attritional attritional with as need this in ratio much is drive improved loss believe further, optimistic about and me I of regard closely, there continuing Underwriting your So ratio costing very here shift XX. watched very down more with play of continued of again, headroom

several shown explained example, explained so already I Re, also as we the Ukraine seasonality good ourselves still ratios, have with have P&C normalized it we to and and Christian we but combined times mentioned effect impact at think results path on. see the an a the on normalized the regard we to that you have

you did that all get you on you good still see are path So to the if very actually XX. below that is a can reasons

Thierry Leger

need indicated the respect there with it's been On precautionary in which liability to much in was where some first we've $XX book was P&C rather XX. the but position there of a saw position million, assumption the a just of, different inflation, a smaller momentum overall Re, casualty changes about some we've the the think particular, that the dimensions And been make importantly, net-net reserves, the continuing, made positive well got But continued we're was with property coming similar being at trivial some positioned. to plus top-ups. think lines than orientation, the CorSo to it's about make we've the book for I Christian prior-year some looking have motor now on XXXX, be current covered. There I pluses and social casualty half we're don't sufficient we've of were and forward whether comfortable and older specific I has P&C talking the the worry that's part more and of reserves for a this all context were reserves that be frankly is for of adjustments in to spike of a evaluate whether there. pressures casualty, of about trends, in think minuses modest from confident uncertainty, overall microphone. the respect for for think couple years negative short-term With claims just Solutions. again, they to these Corporate sure think well any I affecting inflation to of and literally in business half the sure reserves, on we think as anything we Re, year, I very to Sorry had reinforcement rate that development, although years, to need in net I in reserve that might

Thomas Bohun

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

Operator

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

Iain Pearce

for thanks my taking questions. Hi,

one The dividends. Intergroup first the on was just

the it like And changes equity taking shown. low, Just equity seen. looks that account we've market the no segmental is into sort longer reporting, at of movements looks looking even being quite [indiscernible] in the

was So of percentage combined level that leading terms that business part think the of sort is to Is XX sort of HX. a from in second if something the dividends ratio up these is about in is changes, improvement budget clarification. that of you we've that improved what's Thanks. point addition, could P&C just year you've talk seen And one in you included Around wondering or I'm point year. there. I be to in the start that at particularly half that with to the for the the in mentioned changes happened that mix just that next should Re, of one actually with us group subsidiaries, the guidance, of mentioned, us estimates

Christian Mumenthaler

to like take the you question? would John, first

John Dacey

the flagship of care, SRZ and issues particular liquidity dividends SRL SRL flexibility respect and to of mean don't any -- did with advance capital dividend a robust, internal see go think we with Yes, I I in forward. as and the on respect make dividends, our payment the dividend, external out of payment we in so we to the remains

issue So sure particular here. I'm not that there's a

On with the Genesis, the we I last flows done what years. we may of entities And that not can call Project that disclosure, know legal less, of just a we've described together only it's might in you have on bringing specifically year Switzerland restructuring series that's don't part that's previous I seen the intercompany have think in that going that thing here. we

On the question? second

Christian Mumenthaler

so second the On question, right. absolutely you're

certain also obviously further to unexpected mix headwinds, of headwinds So renewals have the July seen more, of strong lots this actually war. due XXXX would will already have for that the business to changes the these including obviously we But and achieved a or years. some profit very our the is so targets even year we already. will to Improvements XX included extent that help profit this compensate year in

Thomas Bohun

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

Operator

comes from go Societe please Gandhi ahead. from Vikram The next Generale, question

Vikram Gandhi

Vikram, it's Hi, SocGen.

me. and what the a for P&C one results from CorSo. share quick position latest Can IBNR is on Just you COVID Re

I got the think really XX%, side. last current from stage the the at position my was was XX%. IBNR disclosure where That's we all around

Christian Mumenthaler

be to continuing fact IBNR But still after property looking we might I left number detailed down continue like companies and year, It's to discussions determination is the give December of a continues be two the serious through given there. years of going we'll appropriate you, get position that and be I the final we're event incurred but a be tell single for what's largest primary it with surprisingly to bit. resolution we're some in large, as BI don't of the think for done be them will XX we updates you to more an of this claims. it's out to

Thomas Bohun

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

Operator

comes question next Please from UBS. go from ahead. The Will Hardcastle

Will Hardcastle

way assumptions say heading reserve the optimistic you it risk more that you've inflation a risk any always in that course, than appropriate I the statutes, short-term a guess because gains, bit spike it correct wouldn't that penalized seems like an quite we'd be reinsurers heard how because or of spike the IFRS you and peers from in risk, one, second nature? the unrealized I we higher isn't sounds or And across are happy out. Yesterday, Would you inflation still close Thanks. target? guess is your as leverage? potential. And given so reviver about mentioned we reserve It the thinking of could just normal read But assume to be into for give be et everyone. the afternoon about fair Hi, it about whether leverage, XX%. that and we lower to the I from thinking inflation, strip other just the even Is cetera. quite in statement giving a you said probably then the is should far? And Or regard. guess review. willing QX that be what it? would it that range view I'd be headline state

Christian Mumenthaler

Sure, Will.

On by on probably topical, and quarter know the at quarter to with I this claims reserve least, the for five first the statutes years we've risks. one, been potential the at is last risks looking abuse respect maybe reviver longer.

or in our to of of up general of talk some loss got view worse this, which IBNR And case probably specific dollar own most the is our clients, we made our Re view liabilities, we've our but that social XXXX also reserves. issue we're the better. U.S. our may that better CorSo, our update I be in likely continued cases, view the comfortable, set P&C to The come from, very it's reserves some continue for where We exposures a with sort for away, getting have was that and getting not and worse. comfortable there. going reflected we inflation not it's XXXX, with even It through adjustments think reserve XXXX, is what

we the to so and contributions P&C that reflective And you make were of liability this. we made saw to year updates that continue last reserves

aggressively some tail especially shorter property have talk losses, for isolation we well. that risks motor the and adjusted Thierry the comfortable the reserves, the inflation. certainly we've on quarter-by-quarter case, and lines, still we've the lines. On just are we've or evaluate good to first we're the But us made are heard, required there. see what about on the large some we these insulation we're a exposures looked in we our with related in at whatever you also But models us, there, costing as are to get a of And that basis pricing to adjustments place

So I be that is have lived. particular view inflation think a short don't we going to

contrary, at very is along cases thing we linear in right, shape, using, think debt is you we think it XX the systematically of XXX%, which last insurance that relatively can subordinated XX this think into we've fit and that's I'll With that fine say Andrew, And pessimistic of be together. reinstitute, go the the it, that issuance But and have we're while taken don't calculate for we've and might senior a but into competitors, this years view, with we agree to mentioned, we'll has with we've see I important been debt over the easily On XX, coming covers three, I looking of reducing the way. and in that is June next some basis And the I pre-filing that XXXX been reducing to result. a said leverage the think positions months, to with way we we our have those XXXX, required our the comparison new economists in momentary point XX I there, the increase leverage, have at here write. what there leave various was the evaluate the our XXXX, for end through what of the replacing everything it we different necessarily I actually you. respect kind from upper series of components we stayed

Thomas Bohun

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

Operator

comes go from next from The question please Mediobanca, Vinit Malhotra ahead.

Vinit Malhotra

Thank afternoon. Christian. you, good Yes, John. you, Thank

category, one things is strong first about curious more exposed I'm the or The is you'll reduction I One two is the there. on one just X presume which proportion property, to note this is renewals. that And inflation.

the topic you to show some with thing thing the you renewal. give could as slide, But motor discussed about side. the then call to proportional new similar the this here? just and July there? compare XQ be a that of XQ cut if in expect is where thoughts wanted just could which these or the in $XXX that, walk just slides longer casualty And And back is and it clarify was we lower first renewals is hear in consistent to understand see just I link that one million in more earlier we [indiscernible] that the your have topic. business the the Now, ideas two obviously only property Why that fair renewals, is in that should on inflation July

that the should Second if which loss higher XQ year-on-year because call today and XQ the word manmade was morning half something and now a this the -- topic here mid-sized is we like XX clarification. them both and the today there call second one on in half you'd literally be a both thinking about in additional on accident, were is back, point, to ratios Slide the the XQ the and XQ topic losses,

or even it CorSo statute just you. CorSo Thank mentioned? mentioned law being example is You by example, you XQ, cautious or an it being something Is the claims some is of just the set reasonably ratio driven revival an cautious. casualty very of external combined cautious, approach XXXC

Christian Mumenthaler

understood. I will take it, I you to repeat sure go I might I understood one those but will whether with I wasn't have and this believe I Vinit, question. that

spiked see so direct construction this, have and like impact So for inflation, that when on the reduce a these prices first do is and CPI look example, way, we chain already elements up did, on last construction property, very property. already problems because I when proportional construction cautious up they property. at mean it, is, why on And since can the and you Because way started which of you right? war, they we the last by only become to started prices year, before were also that. they are year not the Why supply

take construction prices a of is up, now Both then So spikes the then clear primary for fast. industry behind have that course, to you have at XX are least to and impact happen XX months curve, high up it high to CPI as a it's it's actually increasing months is on everyone going property, get prices, direct file, curve, takes ahead XX, well. relatively of now the the And while these delay.

at look deploy you when and different where ways to necessarily you a our capital. from that's so so reinsurance therefore we not deploy have capital, your to perspective, decided And it

want a also and that second, You be maybe because questions I around and but in $XXX didn't a elaborate on come bit Vinit, you question question your renewals of a had get $XXX it. to million, you to million just I other little maybe to want the

Vinit Malhotra

yes, Yes, sorry.

show the I renewal walk. slides, if see So the which

a just but on number? a I impact which quarter YTD. Hence property. mean, what and which of reflection, it's column to lower the cancel can wrote is that you small $X.X see, proportion volume, Slide lot, was I the new So billion. a non-proportional But higher just, you tend new only is X And be be if that for $X.X number could example, the in can first business, you of only see X, really billion today business, Slide

John Dacey

We can take it offline.

Christian Mumenthaler

but understood. I'm to you what really happy have Maybe I will I to, now answer think

right indeed, absolutely when are So you. yes, you

less capital same business five times the comes amount of non-proportional for allocated So with premium.

you can prop that really it. when you goes with the more But you at your you right? and allocate that's So premium So shift capital. see, to more non-prop, reduce what time same from

maybe So that might million the that non-proportional premium. again, create million have proportional if with you capital million premium, create, proportion might capital $XXX same you with $XXX of million creates $XXX $XXX that write

when number business have around how exactly manmade shift indeed, question observed losses. across. mid-sized mid-sized So losses, it the you end, that's a in then mix, you and have the Do comes a we the of

$XX some actually are million below some large so our it's for So our thresholds are to of threshold there net apply manmade, for we so different and always applied it mid-sized cat $XX differences to million. competitors losses, us, that

still So million, million. to midsize $XX the $X million is but above below the $XX

indeed related had an to we years. number mainly of of unusual losses, increase so And such prior

I Here be much mean the is too wouldn't in read honest, has to change into usual one expect. it, that this frequency to I

yes, more trend a see also this way expect, relatively we should than whether make don't combined read would to I CorSo but ratio typically really So anything been reference have as and there we you new high, and now to or anything worrying come our the in there.

clearly read cautious it care. casualty the an seeing sized approach not to certainly by shouldn't you into way, overly So explained, is losses, also varying, mid some and of be manmade can it but it

casualty, and inflation. risks into too volatile. John we just very to It's line approach as to in of be particular very, see are, trying said, technical that CorSo read too narrow too quarter would business. this in But We I our not the much again, CorSo generally in

Thomas Bohun

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

Operator

ahead. from Ashik comes question next please Musaddi Morgan from The Stanley, go

Ashik Musaddi

Thank good you. And everyone. afternoon,

a versus Just you XX%, that benefits the into very of feed couple of like higher the of at next say questions And no, given and say this to CAT in point easily Group I guess I bit is mean, mean like some fair have that's versus will next that combined really, mentioned have. could year basis you change percentage grown was earlier or a year as year side. business mix this strongly I it business the well. John, something? the year I improvement ratio Or X%. normalized that be on on would the a

second the So would income would on, So technical? Thank Is very investment Is excluding COVID, life color you'd that first that's be that driven? driving you. would it to strong, want are as life pretty be one earnings? well. Any the it say question. I earnings give what was helpful.

Christian Mumenthaler

it's question, a to XXXX be little ratio. first the your On thanks. with for combined guidance on out a Ashik, us premature

year in an more I that message here I us we the costs that costs think future everybody more across and will need have with is renewals impact a be we've or very our can of with business at delivering saw, that's or that will we was to think then what What two quarters. say life heard, On think didn't And much literally puzzle real a number. increasing, a a the of the appropriate any of continue the you've inflation or play exercise right, an on the quarter the we group of spite that for It's that expect speculate of bit underlying on one half. caused supportive, in when carried loss in think this fact, think we in nice is will And of improve additional pretty geographies, pricing loss year-to-date one respect a landed. performing anything we a in what positive forward we got up by project pricing combined other thinks be million earnings, needs strength what I pressure to that of been we bottom give the crossovers result frankly, result. continue. the specifically business second or put underlying belief the of half, risks which the can't P&C here. the have the business piece factors the number is big to the well that gives show will for thinks and pleased uncertainties is color us, than one into is reshaping going all strong. the firing in say fact earnings the got definitive much be The important before especially losses, components. And hardening the where acceleration belt. we'll a I were the what's struggling as X Thierry what where try of just mid-year, some is or I to second ratio cylinders, normally geographies will expressed and the too is, he either $XXX stretch Re of in able you're reinsurance just and year But future January what you to for rather can some a have and COVID actually said broadly the us where all be under profits on portfolios to of else, is was deterioration something we very, CAT done. would into the that firm the actually pre-XXXX important to we to the the the to from geographies we any the market we price that strong for are can achieve a But life quarter

Thomas Bohun

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

Operator

from The Fossard Thomas next question go from ahead. Please HSBC.

Thomas Fossard

prospect the the were I premiums bullish pretty last life year-to-date Yes, remember Investor question good I in the A to X% that afternoon, of you everyone. the are think at on on growth year, end life up that X%. for side, can Day business, opportunities the

line are COVID-XX, that asset opportunities in it the a is positioning with of market should to So I maybe update last of is top credit quarters? thinking terms after in be clarification environment, is what regarding talk you makes how expect QX you second attractive is pick of momentum regarding side, you up your financial call to which anything side be related was the you this the what on for context specifically, more question allocate ready more latest that P&C to with we in volatile AG, is could like would you could on the to allocation, will COVID-XX. and us live QX, the Thank Could very asset the IBNR, in you're the something rethink surety serious thing it upcoming on The or the that wondering also mix, capital you. your us life currently life thinking to results portfolio and be investment QX? on

Christian Mumenthaler

I on Tom, and take health Hi, the life first growth.

we that And after the an see off said that still that generally is across is the environment coming ourselves margins, we is we that we the see in right, of people attractive board, we still COVID that at see we from kind generally crisis. actually improved happening from mode COVID. absolutely to of get you're growth opportunities, now, the So payback generally protection, in see desire see a

price we So not really get continue get you hard some And for we to want, but increases. push everything we it. of

little So really on those that well, I we have transaction. headwinds are are working quite large two, pleased so guess the very about these a two we

we it's happened lumpy year much that Generally, one. any large a than that anything hasn't obviously, seen haven't that one two much, still ones see per else. but more we time of can come or yet, So

illness years. you that explains also, of very the what that critical last we might have some two in So careful And also been said. remember in you

see we we currently. we wherever nice but So growing now of are coming that nothing reduced growing at again, and growth we to are varying through growing, in can CI, actually margins some want

So and life actually in news quite good health.

John Dacey

Russia, on Thomas credit fairly position. asset said, to I third on exposures And of respect which protect more on a we the COVID billion mix is I we equities, question private is I exposure But disclose & where the we and can adequate book comfortable assets. every at probably various And If impairments find very fairly the current we act. more with there, quality update, stand. necessarily have with that our of we'll So a on say a is with don't we think $X.X exposure, squeezed maybe team hedges some we year-end the think defensive an time our reserves. do credit respect exposure question we'll that remains which There COVID that continue We've on remain to we're sort overall listed something in million to just in of second of your it. China high way surety have we're at much this you up development looking COVID and downside here than redundancies, look us investor for give credit we place of cautious. IBNRs, disclosed believe of of grade investment largely position there components I the trade we everybody the we remaining. overall our the is XX% from than identified relatively quickly, have related into to but is series risks still some I we've real with to equity portfolio portfolio, about closely and about as reserves but $XX side for estate Like morning Christian, and monitored. put think P&C

Thomas Bohun

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

Operator

next go The Derald comes ahead. Goh from question Please from RBC.

Derald Goh

afternoon good everyone, hope Hi, you to okay. me can hear

Just two questions, please.

back to just inflation. going on is one topic first The

inflation trying just to of sense [indiscernible] your your I'm So assumptions stress reserving. testing how a get within

stress Re ceded to you P&C just reserve reserves have been going say and date? like, to that share as is to things ADC as the to So much is the well was of perhaps second under the you maybe assumption? CorSo the anything assuming SST inflation back Re what inflation you. through since P&C in strengthening, to ratio you're how covered capital, increase confirm what X% under SST that can could inception this The Thank a sensitivity one, anecdotal, ADC also,

Christian Mumenthaler

try. a get me Let

that we the but the a at in the I explain, if a was not would a would at SST, XXXX think I'll the ratio The think time, created point it we respect SST I made if an useful on continue under this had year-ago, reduction I consider sorry. remember not have be but model least which CorSo I'm not sure that for appropriate people to mistaken. necessarily which forward, as is, inflation than inflation we year-end it go And to this. capital you. adjustment don't that with information anticipated, if know we more risk position will, we I'm inflation, what appropriate to we seems sensitivities not actually shared evaluate to of factor of And at but people think

John Dacey

CorSo. think ratios, I to, in referring the would be were the of PYD that combined you

So show line that combined view. would those specifically, have CorSo, ratios net that of been is business a by retained that within we

Christian Mumenthaler

between unlikely disclose. to detailing of of cash And the we've flows not the specific the more are broadly disclosed and of sort ADC two the

Thomas Bohun

we please. Could Derald. question, next the Thank you, have

Operator

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

Darius Satkauskas

Good afternoon.

one the increase that first trend. So roughly was cost by rate two was fully highlighted you offset loss And questions, X%. this year-to-date

should any recent one. achieve when beyond that combined we right the from about business number the am -- there should ratio, pricing benefit to in think be be year's there I to renewals? mix So think next question able not changes the That's you're

expect investment underwriting as renewals, Thank industry much up during did investments? the July question, pressure your you have of forward autonomy gone should increases, on pushback see more returns the any the be Second rate signs because making you. you and on yields going

Christian Mumenthaler

I can these. Yes, take Darius,

that on So have portfolio it used way to yes, at inflation point that think this that them should trends, at we've we so actually we increases loss mix from has and presented, received in against seen you the been time, we we price so come that different seen. a set look that will changes the the because have

what do your at point, I So that get it's been important technical a as Investor very result, on interest that's on as company. results, On And I'm need that right clear underwriters also we have the to how be that actually the internally point. mind. in the very, we windfall. top And messages to I your very provide very second the Day all very people's higher indeed will No, be also that we take margins. thinking. combined not has that is should pushback a happily the clear And rates ratio

Thomas Bohun

Thank you, Darius.

last question, for question. we a last please? take time have Could the We

Operator

O'Mahony comes BNP from Paribas. Please question The go from ahead. last Dominic

Dominic O'Mahony

the taking folks, questions. Hi, for thank you

capacity claims were pricing next of were some match the I of on our are HX on there's which of that, inflation, months about the is as which small really clarifications. well inflation, expecting $XXX and that in so competitors manage the been that One second about in sort into pricing life. XX And confident ahead an sort you. over conservative that you're need very very with necessarily in and all on happy two you're And things months, because the said that just the the with renewals $XXX And expectations translate But to or upgrade is essentially think strong And million the with have pricing quarter, really with the out your beating XX inflation that renewals. of $XXX you'll confidence something essentially will you through latest from comes environments. next of over some target the versus just great. lead million. is that then secondly, market? summer just claims, just doesn't QX sticking million, in Thank is going you life that I Just Or offset you growth? claims a this you the

Christian Mumenthaler

effectively we've offsets Dominic. above With XXX. that from that at million as in that. up And I'll the incurrence actual light that the in was quarter first reported saying there a respect XX. COVID we'll claims mentioned, still for then that's But can was slightly balance do against were half net previous a year some income put I we number, and reservations off the net second periods question, in we take the again, QX second $XXX to expect half. And the make of the the some

necessarily extrapolate the two XX the shouldn't next quarters. we So into

crossovers. the and to I QX tough very, the the hand, half, we contained, very we've be well. regions had it year addition as in other is we especially, think in before, in will first but to performing respect that, said this all On a mentioned with

for that have. $XXX nice us. target the it unlikely will the and that I it's to certainly be think case a reasonable will remains a full-year. is the But I If it for think million achievable be

John Dacey

Dominic, question, for know point go right, the that price claims claims this, will get somewhat turn second for has of out claim guess to other I actually to of pricing to turn, turn the has trend trend. so at but elements the the have the to On don't strength trying inflation ahead the some I

when at to can going happen exposure. represent it's and I point, to to going but some it's honestly be will going not So an then happen predict that that's

right. to the next So be tailwind that's going

of trends. on now beat is indeed rates the ahead tailwind So are when the the next And day we it, side. we that the see we interest

Thomas Bohun

questions. Thank you, Dominic. like the We'd for to thank to session. the end With all of your that we've come you

follow-up contact at us If questions, Relations. have you do Investor please

again and weekend. thanks you nice wish a Bye-bye So everyone. we

Operator

[Ends Abruptly] you. Thank

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