We were satisfied with the treaty renewals in specialty lines.

In marine business we anticipate a sharply enlarged premium volume for the current financial year. In view of the loss events incurred in 2010 in the offshore energy sector, it was possible to push through further improvements in conditions and prices on both the primary and reinsurance sides; this was true of property and casualty business alike. Our goal is to expand our portfolio in countries outside Western Europe and the United States. We shall move forward with our policy of consolidation in the energy sector.

Thanks to our very good positioning we continue to see attractive business opportunities in aviation reinsurance. Although rates declined slightly, the business remains attractive. We were able to enlarge our client base, especially in the BRIC countries. Gross premium is expected to grow in the current financial year.

Business should also develop well in credit and surety reinsurance in 2012. As expected, the rate level is slightly below that of the previous year. Whether or not results in the current financial year can build on those of the comparable period will depend on how the broader economic environment shapes up. In the surety line we anticipate a good experience, although a moderately higher claims frequency is possible in some regions. In the area of political risks we again expect to see good claims rates. Overall, the total credit and surety reinsurance portfolio is expected to deliver increased premium income.

With an eye to preparations for the European Solvency II framework, stronger demand can be observed for structured reinsurance products. In emerging markets, too, we are looking to expand our business in view of the adoption of riskbased models. We shall persevere with our strategy of optimised geographical diversification over the coming years. Our premium volume should increase in the year under review.

We shall continue to step up our activities in the area of Insurance-Linked Securities in the current financial year. In this context, our focus will be on packaging and structuring nonlife and life reinsurance risks. We shall also continue to play an active part as an investor in catastrophe bonds.

Our reinsurance business written in the United Kingdom is expected to deliver an enlarged premium volume in 2012. Similarly, the total premium generated by our portfolio of direct business will also increase significantly. The higher growth rates in this segment will be driven, among other things, by the branch that we opened in Canada in 2011. Our casualty business is expected to show price increases, especially in certain professional indemnity lines, such as for surveyors. Liability covers for professions such as auditors and architects are likely to see modest decreases. The direct business and reinsurance that we write in the UK is expected to generate an increased premium volume. Similarly, the direct business written in South Africa is also expected to record further premium growth.