I think he means that if you are taken by LHI, you have a 95% chance to "survive" the training, as this is the statistic, but it has nothing to do with the selection and the original question was "Why would they invite about 800 applicants if they only need 40 pilots".
Actually I dont know what the outcome rate in LH is, but if it would be only 5-10%, then I think there is something wrong and they really wasting money.
I dont know any airline with such a low rate.