Helmut Perlet: Looking on our operating result fiscal year 2003 has seen an encouraging start. We have made an increase in global premium income of 9.8 percent and this keeps us on a growth curve in insurance business. Development at Dresdner Bank is also gratifying with a slightly positive operating result during the first three months of the fiscal year. However, I should like to warn against any great outbreak of optimism. It’s too early to say whether a change in trend is already underway. There are still very considerable uncertainties relating to developments in capital markets and the outlook for the economy. Moreover, the first quarter for 2003 was helped by favorable development in major claims and a decline in claims arising from natural hazards. The situation remains serious.

Perlet: The combined ratio is the ratio of losses and expenses to net premiums earned and this ratio was 97.7 percent during the first three months of the year. This is a very good result. However, don't count your chickens before they are hatched! But seriously: we’re seeing some very pleasing developments in most of the consolidated companies. Significant improvements in combined ratio were achieved in Germany, France, the USA, in credit insurance and in international industrial insurance business. Developments in the USA and in industrial insurance business showed in particular that we’re making good progress with restructuring measures in non-profitable areas. At Allianz Global Risks we also succeeded in introducing premium increases and changes in contractual conditions, as well as higher deductibles. From our current perspective, we’re assuming that Allianz Global Risks will reach the profit threshold during the course of the current fiscal year. However, we’re not intending to let things rest there. We will continue to focus on establishing prices commensurate with risk across the entire insurance sector, and improvement in efficiency.

Perlet: Scrutinizing all business segments and concentrating on improving the operating result remain the central challenges for the rest of the year. We have already talked about the property and casualty business. Our intention is to continue dynamic growth in life and health insurance during the current year. This is precisely where sustained strong growth in new business shows us that particularly in times of uncertain capital markets, customers recognize the value of a life insurer with a strong financial base. Particularly in view of the good figures for dit, we’re anticipating continued performance for asset management according to schedule.

Perlet: Banking continues to be dependent on developments in the capital markets and the economy as a whole. Further improvement in administrative expenses by 10.8 percent indicates that the cost-cutting measures are taking effect. This action demonstrates that we’re on the right track.

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