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With that I’ll put you back to Eric.Eric Schuh – Head, Investor Relations Thank you, George. So, operator, we’d like to turn to the Q&A and in the usual way could people please restrict themselves to two questions each. Operator, can we please take the first question? Question-and-Answer Session Operator Yes. So, the first question is from Mr. Spencer Horgan of Deutsche Bank. Please go ahead sir. Spencer Horgan – Deutsche Bank Very much, good afternoon. Two questions please. First one is just coming back to these renewals, George you mentioned the price adequacy was up 17 percentage points, which I guess is a function of three things, i.e., the price probably the business mix or I guess you’ve moved into more higher-layer, non-proportional business? And also a reduction in the assumed seismicity in Japan, and I was wondering if it is possible to sort of quantify the impact of each of those three things within the 17 percentage points and to the extent that you are writing high-layer non-proportional business, presumably that's consuming more capital? I wonder if you could give us a number in terms of the increasing capital committed in the April renewal? I am hoping that counts as one question. Second one is therefore is on Corporate Solutions, I thought the target combined ratio for the Corporate Solutions near time was 101% and yet the slide 9 shows the adjusted number as 95.8% for this quarter. So, I was just wondering what else was going on in there? Thank you very much. George Quinn Thanks Spencer. So, on the first one we don’t break apart the – I guess price versus business mix. So, we look at the total economic improvement in price adequacy. So, I can't really break that one out for you. I can't break the seismicity piece, so I think just for everyone's benefit last year in the immediate aftermath of the earthquake in Japan we added an adjustment, that's actually increased the loss cost in the short-term for the risk of aftershocks. That will decay over time. So, over the 17 points, 4 points comes from the release of part of that adjustment that we made a year ago.
On the capital side of things, from an economic capital perspective, which is the main constraint that the firm will typically face, this is one of the peak perils from a nat cat perspective, but it's not as large as the two largest, so European windstorm or Atlantic hurricane?If you look at the additional capacity that we have deployed today, I think I understood, I look out the number. We've deployed about 40% more in capacity. I think if you translate that into a capital impact, it would be much, much less than that for this peril, because it partially diversifies. So, from a – I think if you look at it from a probably the simplest, if you switch to S&P, S&P's going to be the easiest way to look at it, because it's factor based. I think if you take about half of the premium growth, I will give you some idea of additional capital deployed. So, the additional capital requirements for this business, this renewal are really, really quite small. When the target combined ratio for Corporate Solutions, so, you’re right we gave guidance for the group overall for all the P&C business of 94%, which is split 93 for reinsurance and an expectation of 101 for Corporate Solutions, just given the nature of what Corporate Solutions does I think you have to expect that there is more, I hate to call it good or bad luck, but more natural variability beyond the peer and that kind of component. So they’re obviously significantly exposed the manmade losses and that will also drive short-term variation and the combined ratio. So we don’t see any reason to change the guidance that we gave and I’d simply look at the five points of difference so it’s well within the natural volatility that you can expect to see from this business given the types of risks that it writes. I expect the combined ratio to be volatile going forward. Read the rest of this transcript for free on seekingalpha.com