Mr. Gerry Hassett:

The Senator made a number of remarks. He is correct that the reserve made in regard to unsettled claims is a judgment, but it is a judgment that firms take extremely seriously. There is a prudential regulation regime to make sure that companies get that right because, from an insurance company's point of view, to get that process wrong would lead to severe financial risk, not just to the company, but to policyholders. Unfortunately, once a decade Ireland has endured an insurance failure - the last was Setanta - and we have all been privy to the hardship, not just to policyholders, but to the victims of accidents of those policyholders.

The Senator used the word "prudent". Insurance companies have to be prudent, although I accept that is within limits and they will be conservative based on reality.