"Being a well managed company means having appropriate governance and processes, so that there's a clear framework for decision-making and accountability. But that formal structure cannot work without the informal process of internal dialogue as well. Both come into play when allocating catastrophe capacity. The Board sets our overall appetite for catastrophe risk. The CEO and Executive Committee determine how much they want to use of that capacity. Feedback on market conditions from the Catastrophe and other business units, including Specialty, ART and U.S. P&C helps to determine how much we can deploy in a given market. We have an Exposure Control group that monitors aggregates and capacity allocation between the business units, and keeps us regularly advised. But the business unit leaders are constantly talking about the markets – as opportunities come up, we first informally discuss shifting capacity, and then go through the formal process with Exposure Control. We all use the same metric – ROE – so we can shift capacity to where it will be most effective, while still being conscious of our position in the market. Good communication and mutual trust between colleagues is essential so that we are all working for the good of the Company."