Amlin Aviation has, again, grown its business successfully as rating conditions have become more attractive. 174 international and domestic airline accounts were underwritten in 2002, compared with 148 in 2000 when conditions were less favourable. In the soft market we took a cautious view and came off risks we considered to be under-priced, based on our assessment of an airline’s fleet and its risk management. With rating levels materially improved we are prepared to take on more risks. New market capacity started to compete for airline business in the last quarter of 2002 causing overall airline rates to fall by some 10%. However, this still leaves global income well in excess of historic claims costs. In other areas, such as products and airport liabilities, we continue to achieve rating increases. Gross incurred loss ratio represents the sum of paid and notified claims before deduction of reinsurance recoveries expressed as a percentage of premium before deduction of reinsurance purchases. ROD DAMPIER DIVISIONAL UNDERWRITER