Mr. Seán McGrath:

No. We have a target level of profitability and we will adjust our pricing based on that if claim costs come down. Insurance companies need capital to ensure they are in place for the long term. Shareholders need a return on that capital. That return does not change and that is what we have priced. If claims come down they are passed on to customers.

As Mr. Philip Bradley from AXA pointed out, that is exactly what the industry did the last time there were reforms.

When one looks at it realistically, the eight big companies have a very significant presence in this market, but there are many more companies operating through brokers and through freedom of services. If we did not pass on the pricing reductions we would lose business, and lose it very quickly, as we would be open to other companies coming in and pricing at lower levels. Allianz is not in the business of shrinking. We want to grow our business sustainably for the long term. Those cuts will be passed on and it is not a leap of faith to think that the market would bring on capacity. It is exactly what happened in the past decade or 15 years that was spoken about. Much of that capacity has been described as naive capacity that has come here on a freedom of services basis, but many of those companies came in and priced below cost, driving prices down to a level that was unsustainable, which was a factor in where the crisis began.