Dr. Cyril Roux:

Maybe I will concentrate on the Irish motor business because it is good to remember that the business we regulate is very large, and comprises €70 billion in premiums per year. Irish motor insurance is less than 2% of business written in Ireland. Most of the business we supervise is life insurance business and most of the non-life business we supervise is abroad. The vast majority of motor insurance business written in Ireland covers foreign risks. When I give answers, I have to not look at published accounts of these firms, given that the published accounts will cover much more than domestic motor insurance. I must examine statistics in lines of business that cover Irish risks. These are not strictly speaking accounting returns. I can point towards the underwriting profit or loss.

During the past ten years, firms made declining underwriting profits until 2008. From 2006 to 2008, it was €700 million. Since 2009, with a blip in 2011, they have made an underwriting loss every year. In 2008 and 2010, they made losses of a little less than €100 million. There was a loss of €34 million in 2012, €189 million in 2013, €230 million in 2014 and €333 million in 2015, and we expect there will be a loss this year.