Half year result guesses, page-38

The one thing they did , which I did not expect, was to reduce the reinsurance coverage, which reduced PCA multiple by 0.28x . Demonstrating it is another lever they can use to very easily manage their capital ratio.

they kind of needed to do this to manage PCA multiple down given they are only paying out 14c per share when profits were nearer 40c per share.

my take is they are managing this whole thing carefully to release profits and capital as gradually as they can. They are playing the long game. Which is probably best for longer term returns. It is more than ever a high yielding annuity.