The General Director of Unipol, of UnipolSai, Mr. Matteo Laterza, will share with you a short introduction, and then he will be available for questions. Mr. Laterza, the floor is yours.
Good morning, ladies and gentlemen. You must all have seen the presentation and read the communiqué, so the press release, so no presentation is required. I'm here with Enrico San Pietro, the Insurance General Manager, and I'm here ready to take your questions.
Thank you. If you want to ask a question, please dial star followed by one on your phone. To get out of the booking list, please dial star followed by three. Please ask your questions by using the receiver of your phone. If you want to ask a question, please dial star followed by one now. Thank you. First question from the regional conference is from Michele Ballatore from KBW, please.
Thank you. Now, this is my first question to you, and, it is on the investment yield IY. Especially in the Non-Life business, it went up a lot versus H1 2021. Can we have some color about this? Second question is again on the investments. Corporate bonds reduction, and the Italian governments reduction. I know there's been a slowdown or a cut. Now is the cut due to the market only or are you repositioning in a way? Third question. What about the governments strategy? Is it going to change because they went up a little bit? Thank you.
Well, thank you for the question. Now as for question number one on the IY, so investment yield of the Non-Life business, we have many factors to take into account. The first one is due to the significant presence in our portfolio of inflation bonds. Now, of course, the coupons were impacted positively by the increase of the European inflation rate in the past months. I think that this is a non-repeatable attitude or fact, because if it becomes, you know, fixed or structural, we would have an advantage on the investment part, but we have to go through some criticalities in terms of our liabilities on the Non-Life business.
Apart from this, we carried out major investments in terms of liquidity that we had in our portfolio, and we have had the possibility to invest at very interesting rates versus the past. Now, this means we've been able to, you know, strengthen the structural coupon yield of our portfolio.
We also have the dividend component, and now it has given a more than proportionate contribution versus the same time last year. On the Non-Life business, we have allocated plenty of real asset investments or alternative investments. Of course, they have a higher profitability versus what you can see on the fixed rate market. We are investing our cash flows on the Non-Life business between, you know, 2% and 2.5%. This is what we invest on a diversified portfolio, where we have Italian governments 35%. The remaining part is the European governments and corporate governments again. We also have the dividend component, we have the inflation component, and of course, well, it depends on how it will go in the next quarters. We also have the alternative investments.
This is the strategy we carried out only some years ago. We want to reduce the investments in Italian governments. We want to reinvest the cash flows in other securities, I mean, bonds or European core part. The credit components are on the high rating levels, I mean, from single A upwards, and then a small part in alternative investments. The objective is we want to have the right profitability that fits or meets our objectives. As for the Italian governments, total exposure is now 35%. Now, during the six months, we have reduced our securities by around EUR 1 billion. The remaining part is mark to market. I mean, the Italian governments lost a little bit of their value more than proportionally versus many other fixed-rate income.
In terms of AA or asset allocation, this means we have reduced the percent allocation. Right now, we don't think there will be any change in the assets composition. What we have now is 200 basis points spread between the BTP and Bund. We are close to political elections, so we prefer to have a cautious, prudent attitude right now before making decisions on the financial assets portfolio.
Thank you. Next question is from the conference in English from David [crosstalk] from BNP Paribas Exane, please.
Hello. Thank you for taking my question. The first one is on P&C and the nat cat impact in H1, which in 2Q especially seemed a bit high. Can you remind us how your reinsurance cover works and whether you have any plans of tweaking that going forward? My second question is still on P&C. What was the support from prior year releases in the first half please? Then lastly on life. Another strong quarter in life, making your last guidance for pre-tax results seem quite conservative now. Could you update us on this and your expectations for the life contribution? Thank you.
Thank you. Now, as for the release of, you know, reserves or provisions, I have to say that this semester has been characterized by the fact of going back to normal. I'm sharing this with you because the previous half year was a special one. Maybe you remember we've been very prudent, very caution on the provisioning policies. I mean, there were no provisions, but the release part only had to do with the so-called recoveries on the well, accidents or claim management. On the first half of 2022, we have released the provisions for EUR 260 million, more or less in line with what we've always used to do in normal years, I mean, from 2019 backward. This is, you know, to answer your first question.
The answer on the life question, and then my colleague will be talking about nat cat. Now, as for the Life business, we enjoyed quite a good half of the year. It's been fed by the recovery of the technical part. We have you know, mortality related profits, expenditure reserves, commissions and repurchase or payback, but also a financial recovery. Now, this happened because we've been able to slightly increase the profitability of our GS or separate management. At the same time, we have reduced the guaranteed minimum levels by 5 basis points, while the financial liquidity or profitability increased likewise. One part of this delta has been seen as financial margin on the Life business.
The joint effect of these two behaviors generated the life results that you can see in the previous, I mean, in the first half of the year. As for the second half, the technical part keeps having a similar evolution versus the previous half. The financial part exclusively depends on the evolution of the interest rates in the next month or so. As you've seen, there's been a lower rate, so a cut of the rates, from the closing of the H1 to today. Anyway, they are still interesting levels. On the Life business, we now invest between 2.5% and 3.5% range. Now this means that, well, hopefully we will be able to slightly improve the financial profitability.
Okay, in general, this is, you know, the context in which we will be operating in the next month or so. The objective being to well confirm and hopefully slightly improve the Life business results of H1. As for the nat cat, the floor goes to Enrico .
Good afternoon, everyone. Well, let's say that first and foremost, if you take into account, you know, the direct business before reinsurance, the incidence of the sum of catastrophe claims or large amount claims, well, this has increased versus H1 2021. Well, basically, this is due to the large amount claims, if you will. There's a modest, I mean, a slight increase of the cost of natural events, also in July, we are, let's say, back on track. As for the reinsurance.
Now, the reinsurance protection, especially in terms of atmospheric events, but also in terms of the large amount claims. Well, this is based on two treaties, if you will. In this case, we have a major, important aggregated franchise. In the first H1, this, you know, franchise, if you will, has not been activated yet. The recovery of the reinsurance is not exactly what you can see at the end of the year. H1 2021, the recovery of the reinsurance was basically due to the fact they're using, let's say, the claims money of the previous years with a positive recovery. Basically, the reinsurance protection system is just like the one we had last year and by its own nature, we have the so-called major aggregated franchise. It shows positively the fact in the second half of the year.
Next question is from the original conference from Gian Luca Ferrari, Mediobanca, please.
Thank you so much. Hello, Matteo and Enrico. Good afternoon. My first question is on the Motor business. I guess Q2, you know, auto combined ratio was 101%, if I'm not mistaken. We don't have the technical profitability context that we had before. Other competitors have raised the tariffs, so I can say 1% year-over-year, flat month-over-month. How or when will the tariff increase be visible, and how and when will we go under 100%? In the recent decree, some foreign companies cannot operate in Italy if there's no direct indemnization. Am I correct?
A tariff rate increase won't increase the competition from some players because they have played, let's say, different cards than yours. Tariff increase context won't be good for you. The second question is for the Non-Motor business. There's an indexation on many lines that I can see. I wonder how many lines are linked to the inflation in terms of tariffs, I mean. I can see the health business with a high performance, so I guess, you know, the health basically is one of these lines. As for the life top line, this is my third question. I think Q2 includes a -23% year-over-year, especially on Bancassurance. Well, of course, I know what the context of the market is, but I wonder what happens on the Bancassurance channel.
Do you think something different may happen, for example, going back to flat? Okay, fourth question. Tax rate of 31.3% H1. This is, well, a little bit higher than our expectations. Ideally, guidance would be very useful. Thank you.
Okay, let me answer on the life question before giving the floor to Enrico in terms of the motor vehicles, so the Motor business. Bancassurance, Life business, we do not follow any, you know, production targets or, you know, premiums on the investment component. Traditionally, our parameter is the investment, you know, production, especially on the traditional component, and we compare this to our own, if you will, capacity in terms of production concerning our GS. Separated management. There's, you know, a Bancassurance component, which is sort of independent.
It's not a novelty, it's something we know. We just wanted to produce, I mean, those volumes of premiums exactly on the traditional business. I also have to say that we sell, you know, the hybrid products. Hybrids, I mean between unit-linked on the one side and traditional products on the other, and this is what we will probably do also for the next six months. The only element that requires a little bit more insight is the increase of the interest rates. This means we will have the possibility, if you will, to increase the production component that has to do with the so-called branch number one or first section, because of course, now we can do this with quite a good financial balance, a high profitability, and also in terms of, you know, ALM.
This is something that we are discussing about right now. Provided that rates stay unchanged. Possibly there may be an increase of the maximum level of production in terms of Life business. Enrico will answer the motor vehicle question.
Good afternoon, Gian Luca. Now, as for the car business, of course, this is very interesting, maybe the most interesting business for many of us. Now there's a natural increase of the claim frequency after two very positive years from 2020 and 2021. Well, this is the main reason why there's been an increase of the combined ratio.
As for this topic, thanks to all of our actions, but also because of the composition, which is, you know, more favorable in terms of damages to people instead of damages to things, we don't have major effects on the average customer. Today, we think we are in line in terms of reaching our objectives for 2022. At the end of summer, we have to do what we need to make sure we can also get to the 2023 targets because, as you know, the tariff, you know, maneuvers take some months before, you know, showing their effects. We agree on the so-called competition package because there's a competition, you know, fairness, if you will. Now, of course, you have to have the card, I mean, for those operating on the Italian market.
We see some very positive effects, if you will, in the competitive context or scenario that removes, you know, gaps or deltas, and in the future this means that there will be a better industrial result. As for the Non-Motor vehicle business, there's a major growth that we have experienced, and it's based on many reasons. In terms of health, of course, there's been a big, you know, business from UniSalute, expanding its business together with the growth of Bancassurance, so Arca and Incontra. As for the Non-Motor vehicle part of UnipolSai, we have different effects. The first one is very significant, of course, the increase of prices, because of course, this is one of the things we have done. We also have the so-called premium adjustment.
Because for some years companies have had, if you will, you know, shrinking turnovers. Now turnovers are going up. Premium adjustments impacted positively on this. As for the indexation. You know, we have around EUR 0.5 billion portfolio being indexed. Plus another part. The total is basically EUR 1 billion. This is the portfolio figure onto which we can work on prices so as to adjust prices every year. As I told in the past, we have a specific contractual mechanism. On the most recent generations, I mean, on the previous five years, we can adjust the price to the technical needs we have. Once again, EUR 1 billion portfolio. Out of this, we are able, I mean, to do this kind of business on EUR 1 billion, especially on property.
We are doing this even well beyond the effects of inflation, for example, of atmospheric events, tariffs or rates that go up much more than many other rates. Now as for the tax rates forecast to the end of the year. Well, now first of all, if you compare this tax rate with the H1 2021 rate, you have to consider that in H1 2021, you know, we carried out the real estate revaluation plus the goodwill, so basically we had EUR 80 million to reduce it. You cannot compare H1 2021 to H1 2022. In terms of forecast, well, the calculation is quite impossible to do today because, you know, the tax calculation is done on the local balance sheet. You know that in Italy they consider the securities portfolio not at market.
On the balance sheet today, we have all of the working capital part. In this case, we can see value losses. Of course, we don't know if they will be, you know, projected as is. Of course it won't be like this. It can be either better or worse. The final calculation will only be carried out at the end of the year. For the time being, we have to be happy with this very solid forecast. Of course, it is based on June 30th , 2022.
Okay, that's perfect. Thank you.
Next question is from the English conference from Michael Huttner from Bank of America, please.
Thank you so much. I had four questions, unfortunately. I'm really sorry. It's just I couldn't catch all of what was said before, and I really apologize. The first one is pricing on motor. I understood from the earlier answer that you're actually happy with pricing as it is. I just wondered what the figure was. You said that you're on track to achieve the full year target. I just wondered what that target is given that the combined ratio of 98% in motor for half year looks higher than what I would have expected. That's my first question. The second question is on reserving. I think I understood you to say that you're not adding extra to reserves more than you would normally do.
There's one sentence in the press release which I'm struggling with. It says, it's in a paragraph called combined ratio. "The performance in the other divisions is positive, along with maintenance of reserving of claims for previous financial periods, indicated by significant savings on claims paid." The way I understand it, but please, if you could explain, is that, the savings from the, claim settlements or the 40% or 70%, whatever the ratio is going into reserves, and is not going to earnings. My guess is that's a significant amount, somewhere around EUR 150 million or EUR 200 million. Just wondered if you could confirm that. Can you give us the solvency figures today for Unipol Gruppo and UnipolSai? The only other question is on the reinsurance.
How far are we from that attachment point for the aggregate? Thank you.
Okay, thank you so much. I hope I have, you know, understood all the questions. Okay. I'm not going to comply with the sequence of your questions anyway. There's one question on the reserves or provision in policies and on the release of the reserves from the previous, you know, financial years. Now, as I said before, we have released all of these reserves, around EUR 260 million, which is 6% of the premiums that we have in our accounts. Now this is a reserve release, if you will, which is very standard. This is what we have typically released in normal years. Now when I say normal, I'm not talking about the COVID years, because in the COVID years, our reserving policies were very conservative.
Now in 2022, luckily enough, we are back to our normal standard year, and we have taken into account once again the standard operations, and in this case, we have that kind of reserve release. Just to give you a general idea on the motor vehicle system, the average savings versus the reservation, of course, I'm talking about the previous years, by around 45% versus the reserve. This is quite a lot, you know. Considering the reopenings of claims and considering the reappreciations that we do on the claims that we have in our portfolio, but also considering the IBNR and also the recovery balance, the release on the motor vehicle from the previous years is around EUR 77 million. More or less, this is the level concerning the Motor Vehicle business.
This is not an extra, you know, release of reserves, but this is absolutely normal. Okay. There was also a question on solvency. Well, let's say a short update on solvency as of today. Now, I don't have the updated figures to give you right now, but please consider the following. Starting June 3rd , and then until today, there's been a recovery of the financial markets. A general recovery. I'm talking about equity, but I'm also talking about credit. And I have to say that also Italian BTP, I know, is slightly, let's say, going down. We hope there will be an improvement. 201% we have for Unipol Gruppo and 276% of the economic capital of UnipolSai.
Now, of course, we are on a higher, if you will, territory versus the figures we had at the end of June. There's also a question on pricing, of the motor, business and reinsurance, and once again, the comment will be given to you by Enrico.
Thank you. Okay. Well, let's say that, our target for 2022 full year on the Motor Vehicle business, well, is lower than the one we are seeing today, considering the first half result. We have already undertaken some actions in order to hit the targets. Now, as for the tariff actions, I mean, the ones that we have carried out already, but also the future ones, well, these actions cannot be seen very clearly in terms of portfolio average premium. They are very much, you know, diversified, so they have the so-called composition effect.
I mean, we don't have, you know, the worst customers with high premiums. Those who stay pay a higher price. The average premium, because of the composition of the portfolio, does not reflect or it does not show this improvement. As for the functioning mechanism of our treaties, because some so-called aggregates are taken into account, I don't have here the precise figures. Let me say that in general, we know that the multiple, now the multiple is a multi-line aggregate. You have the claims coming from different businesses, I mean, motor, property, and then general, you know, accountability, and that the aggregate franchise is EUR 25 million. Of course, also the, let's say, the starting point is just some millions, okay, even if it's different considering every line.
If you consider Atmos 3, which is our aggregate mechanism to have protection against the atmospheric events, includes all the events that have produced claims worth more than EUR 5 million. The exceeding part is introduced into the aggregate figure, and the aggregate is around EUR 160 million today, if I'm not mistaken. Now, this usually happens in the second half. When we go over EUR 160 million, the treaty starts triggering recoveries.
Thank you. That's very clear.
Okay.
Next question is from the original conference from Andrea Lisi from Equita.
Good afternoon. Can I have an update on the delta between the value of the reserves in the balance sheet and the Best Estimate solvency? It was more than EUR 2 billion, if I'm not mistaken. Second question, can we have a reconciliation, so just some color having to do with the direct business of the year? Well, actually the first half of the year, I should say. Thank you.
Okay, let me start on your second question on the combined ratio net of reinsurance of the first half of the year. Enrico, please.
Well, let's say that at a first glance, which is what you can see in the presentation, well, you can see a very positive result in the Non-Motor business. Now, in terms of growth, but also in terms of margin. As for the growth, yes, we do grow on many different lines. We have already talked about the property, we've talked about the health, and we also grow on the general, you know, responsibility. We work on every single channel.
We grow on every channel, but even more so on the Bancassurance, which is characterized by a higher level of profitability. As you can see, when we publish the end of year results, you can see the ratio going up of Arca Assicurazioni and Incontra. That kind of growth also contributes to the improvements of the CR, the combined ratio. If you consider the main lines, well, of course, it depends on the, you know, underwriting policies, but also in terms of policies that they want to develop, you know, the those customers with a higher profitability. As for the Motor business, on the third-party liability, on TPL, we have an increase for the combined ratio, which is basically due to the increase of the claim frequency.
Now, the levels today are still lower than those we had in 2019, but of course, they are higher than 2020 and 2021, because as we said before, they were, you know, well, they have been exceptionally positive. I have to say the increase of the frequency is once again, below the pre-COVID, you know, normal business. I have to say that today we actually, we do have an increase of claims reported due to the situation that I have just described. As of today, we don't have a significant impact on inflation, on the average cost. You know, our settlement policy, but also the market behavior, if you will, are, you know, offsetting the inflation effects, thanks to at least two factors. Factor number one, you can see very small claims coming back.
Back in 2020, and in the first half of 2021, that frequency was dramatically going down more than proportionally on the very small claims. Now we are going back to normal, so we can see more and more small and very small claims. Now, this has an impact, a positive impact on the average cost composition. There's a second positive effect on the average cost. This is due to the mix between damages to things and damages to individuals. This rate improves, thanks to our industrial actions. Now, the average cost of claim of personal damages are much higher than things. A small change in this composition has definitely very positive consequences.
As for the CVT, as we say, Motor business, but not the total third party liability, H1 is much, much better in terms of profitability than the first half 2021. That was, you know, stricken especially by a high impact, very negative atmospheric events. Let me go back to inflation for a second, Andrea. It hasn't had a significant impact on the average cost of the current business H1, but of course, it has and it will have an impact in the future for many different reasons. Reason number one, it's a fact that there's a high inflation rate, especially in 2022. Well, we also have many other elements, if you will, having to do with the regulatory framework. For example, the new table published by the Italian Ministry of Health on the so-called micro lesions or micro accidents.
There's another table from the Court of Milan on the, you know, other types of, you know, individual damages. This will add to the inflation effect. Anyway, this means that we have taken into account all these, things in the calculation of the best estimates of our own liabilities. In terms of H1, we have added EUR 200 million to consider all of these aspects. Now, this means there's a reduction of the gap between the balance sheet, the reserves on the one side and the best estimates on the other. Same amount, so today we have EUR 1.8 billion. There were, you know, big, you know, let's say, amounts in terms of, balance sheet. Now, the solvency that we have published June 30th considers in terms of Unipol Group, but also UnipolSai. We do consider this impact.
Thank you.
Next question is from the conference in English, from Sudarshan Bhutra from Société Générale. Please.
Hi, thank you for taking my questions. My first question is regarding the demand for the Non-Motor products. I mean, given the current challenging macroeconomic environment, are you seeing any impact for the demand of non-mandatory Non-Motor products. That's the first question. The second question is around the combined ratio development. First is, the increase in expense ratio by 0.9%. Can you just explain what's sort of driving this? Is it just a business mix or is there anything more to that? The second part is on the underlying attrition loss ratio. Now, that seems to have deteriorated by about 3 percentage points, versus last year. Now, I understand that a large part of this deterioration is due to the non-repeat of frequency benefits. If you adjust for that, what is the underlying trend? Thank you.
Thank you so much for your questions. Let me give you some color on the evolution of the Non-Motor business. Now, this business, Non-Motor business, is going very well in terms of premiums, but also in terms of profitability. Now, this is what's happening on every single business line, in particular in terms of health, as we said before, but in general, in Italy, there's a major demand of coverage. I mean, personal, you know, coverage, but also companies coverage business.
When I say companies, well, basically, I mean the small and medium enterprises, SMEs, which is what we can see. There's a strong growth on all the distribution network, our agencies network, for example, but also and especially the Bancassurance network. Yeah. There's not much, let's say, price sensitivity. I mean, customers pay attention to the features of the product, in terms of the guarantees offered. The growth we are having on the Non-Motor business is more than 10% in general.
I have to say that also throughout the month of July, this trend has been reconfirmed. Now, of course, it goes without saying that this factor depends very much on the economy. Our wish is to, well, to have the right economic growth context, which is, you know, positive enough, and it will be very supportive. Now, as for your second question, let me give the floor to Enrico. I hope you have understood the meaning of the question.
Yes, this is for help as well.
Okay. This is my answer. Now, as for the ER or expense ratio, that's going up, as you can see in the first half 2022 versus 2021. Well, the main reason is a composition effect between the motor and the Non-Motor business. The Non-Motor business, as we said before, grew by more than 10%. Of course, the level of the commissions on the Non-Motor is much higher than the Motor business commissions. This is the main reason why the expense ratio went up. Second part of the question, it was, let's say, on the dynamics of the loss ratio, net of the increase of the frequency.
Well, actually, if you consider third-party liability, motor third-party liability, what we see on the fundamentals is an average cost that in H1 goes up just a little bit, and the average premium is flat. As of today, we don't have any important major phenomena concerning, you know, a worsening or you know, an aggravation in terms of something different than the increase of frequency. Now, considering the future, inflation, of course, is a key factor, as Matteo said before. Of course, we are working on this to keep having the right level of profitability. Now, also for the Non-Motor business, I have to say that we have improving situations. Now, this improvement may be bigger if we hadn't had higher costs due to severe or big claims.
There's also been many more, you know, atmospheric events on the Non-Motor business. At the end of July, we went back to ordinary business. The underlying evolution of the business is now based on a very positive, you know, evolution on the Non-Motor business characterized by the increase of the frequency in the Motor business.
Okay. Thank you.
Let me remind you, if you want to ask a question, you can now dial star followed by one on your phone. Once again, for further questions, please dial star followed by one now. Thank you. Next question is from the regional conference, from Alessia Magni from Barclays.
Good afternoon. I have a question on the average motor premium. What are your market expectations, especially on Unipol for the next quarters? Thank you.
Thank you. Well, now we have communicated our business plan in the month of May. We have also, you know, shared our growth objectives in terms of premium, well based on a three-year-long accumulated premium growth. If I'm not mistaken, the Motor business premium should go up by 3%. Now, the, you know, Motor business is a mature market, as you know. So if you want to grow there, either you steal market shares to your competitors, or you have to go through repricing of the products. Now, we do think there will be a repricing from us, but also from the system, which is a consequence of a simple fact. I mean, claim frequencies are slowing, going back to the pre-COVID levels. Okay? Very slowly going back to the pre-COVID levels.
As a consequence, you know, the prices, you know, we have very low levels, you know, and they represent a situation which is, you know, in line with the pandemic context. Prices do the same. Plus, you have inflation, which is another key phenomenon, and I'm sure it will have an impact on the average price of the managed, you know, business. Of course, we have to go through a repricing policy of the tariffs. Now, this will happen, but in a context where, you know, if it doesn't happen, I mean, the entire market would stay in a technical loss situation. In a very low interest rate context, this cannot last for too long. The expectation goes towards a repricing of the market prices.
Next question is from the conference in English from Michael Huttner from Bank of America, please.
I just saw that your associate BPER had really good results. The share price is up, I think 10% or something. Of course, you're also invested in another big Bancassurance relationship. I just wondered, has your stance in those two investments changed? Are you going to put more money at work to support them, and particularly since the business they're producing in Non-Motor is so profitable? That'd be my first question. The second question is, now that you have more clarity and you've given us the targets for the next three years, at what stage would you start thinking about growth outside of Italy? Thank you.
Thank you. Now, as for the BPER, as we say. Now, we're talking about results that the Unipol Group reached, thanks to the distribution capacity of BPER. I mean, as you can see, I mean, the distribution and production performances in terms of, you know, Non-Life business, well, they grow a lot in general. In particular, this growth comes from the Bancassurance channel, and specifically from Arca Assicurazioni, whose growth has been, you know, supported by the BPER distribution network. We have added new offices, I mean, new subsidiaries, thanks to the UBI Banca operation. In this case, BPER distribution potential is now much bigger than the one they had in the past.
Now, we definitely contributed to that transaction by participating in the capital increase to give support to the UBI Banca operation. That was, from our own perspective, an absolutely profitable investment because, well, not only did we contribute to the BPER value creation, but at the same time, we have improved the distribution capacity of BPER itself. Now, we have a business plan which is especially based on the boost of the Bancassurance business. We absolutely believe in the fact that our partners, BPER and Banca Popolare di Sondrio, BPS, can continue this pathway made growth and development, which of course is mutually interesting.
Now, as for the international growth, well, we drew up a plan. Now, our plan is exclusively based on reaching the business plan objectives. No, we don't have other objectives. Everything is based on opening new ways.
Thank you.