Perlet: I am very satisfied with the results. We were able to capitalize on our operational strengths. First quarter net income rose more than 34 percent to approximately 1.8 billion euros. Overall total revenues increased by 4.9 percent to 29.6 billion euros. The strong first quarter results bode well for 2006.

Perlet: The strong results were driven by growth across all four operating segments, positive capital market developments and the absence of major claims from natural catastrophes.

It is clear to me that the improvements came entirely from the operating business and not from capital gains. We have already managed to accomplish a disproportionately large share of our capital gains plan but the first-quarter volume is similar to that of the previous year's.

Perlet: Yes. Operating revenues rose 16.1 percent to 1.9 billion euros, largely thanks to a significant increase in net fee and commission income to 793 million euros. Strong operating revenues and a net release of loan provisions of 33 million euros meant operating profit more than doubled to 529 million euros.

Perlet: Western Europe remains Allianz’s key market. Our Life insurance and Property and Casualty insurance businesses recorded double-digit increases in operating profit during the first quarter.

We also recognize the clear potential of other regions. Allianz is enjoying particular growth in the regions of Central and Eastern Europe. Private old-age provision is still in its infancy there but is set to show above-average growth over the next few years.

Perlet: The changes aim to increase transparency by introducing one single definition for operating profit across all business segments. This makes our figures easier to compare on an international basis. We have introduced a corporate segment so that holding activities will be reported separately for the first time.

We have a new consolidation method. Effects within the consolidation column will be significantly reduced as intra-Allianz Group dividends will be eliminated at the recipient. Operating performance will be clearly portrayed in each business segment's results.

Perlet: The full combined ratio, namely the ratio of incurred losses and expenses to net premium income, can now be directly derived from the profit and loss account, allowing for easy comparison with other international companies.

Perlet: All four operating segments had a positive start to the year and we are well on track to achieve our goals for 2006, and reach an annual net income of 4.9 billion euros.

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