In view of the favourable outcome for our company of the treaty renewals as at 1 January 2012, we are looking to the present year with optimism. We currently expect to grow our premium income from German business by some 3%. Our client base here has also been further enlarged. The situation in motor insurance showed a pleasing development. Hail damage in August and September 2011 as well as claims from prior years contributed to the increase in premiums in own damage business, from which we – as the second-largest reinsurer in Germany – were able to profit.

Demand for reinsurance protection is rising in connection with the planned implementation of Solvency II in 2013. Given that it serves to alleviate capital requirements and in view of its contractual flexibility compared to other instruments, reinsurance will become even more appealing in the eyes of many primary insurers.

The 1 January 2012 treaty renewals for our business in North America passed off satisfactorily. In US property business it was for the most part possible to push through rate increases. Price rises of up to 30% were possible under loss-impacted programmes. It was also gratifying to note that the rate erosion in US casualty business was halted. Rates in standard casualty business, an important line for our company, remained stable. In the professional indemnity lines we were able to make the most of profitable opportunities. We were particularly satisfied with the outcome of the renewals in Canada, where substantial price increases were attained not only in catastrophe business but also in the property sector. Rates in casualty business showed single-digit increases.

It is our assumption that market conditions in North America will improve further in the course of 2012, since only half of our portfolio came up for renewal on 1 January 2012. We are looking to further price rises at the 1 June/1 July renewal dates, including in the casualty lines. All in all, we expect to grow our premium in the current financial year.