Dr. Cyril Roux:

By moving from Solvency I to Solvency II we have changed worlds. Under Solvency I, firms had diversification forced upon them. Insurance companies could not invest in more than X% or Y% in each asset class and no more than X% or Y% in a given company. There was forced diversification. That was the world of Solvency I and it operated until the end of last year.

Solvency II is a different world. Companies invest as they like, and in the main can invest in anything they like. The price they pay for that is that the greater the risk of the investment, the more capital they need to hold against the risk of loss. That is the change of world, because the world changed on 1 January 2016. We have not seen companies turning around their investment all of a sudden and moving from the conservative, diversified world into something else since the beginning of the year. They have the potential to do so if they want to but they have not given an indication that they intend to do so.