Dr. Cyril Roux:

When deciding on our supervisory areas of concern, we look at the various risks that companies are faced with. There is business model risk, counter-party risk, underwriting risk, which I mentioned, and there is investment risk, to which Deputy Paddy Burke referred. Firms can lose money on investments when they invest in riskier portfolios. However, what we see in the main from those actors is that they have traditionally been rather conservative in their investments. For the most part, they invest in Government bonds and corporate bonds. The corporate bonds they select are highly graded and rated. Then, there are some cash and cash-like instruments. The parts of their investments more exposed or riskier are rather limited. Thus far we have seen a conservative investment profile in these factors.