Dr. Cyril Roux:

The most comfortable position for everyone, which everyone would like to see, is a market where there are stable or decreasing claim costs, which would be even better. It would have stable premiums, a level of profit that is neither too high nor loss-making - as a company must be a sustainable business - and no sector is seeing losses year after year that are eroding the capital base. That is what we want to see. When there are loss-making businesses, we get nervous because it erodes the solvency position. When there is a very high profit margin, that is where the act of faith referred to by the Deputy comes into motion. The presumption is that in a market where there is a very high profit, new entrants will come in and drive down premium rates. That is what we expect to see.