In 2002 our growth was directed to areas which we believed would generate the greatest margins, having experienced significant rate rises – our energy and war accounts. We increased our energy account income to £26.2 million from £8.4 million as the market was imposing significantly higher pricing following the 2001 Petrobras rig disaster. The other main area of growth was ‘war’ risk where our income increased from £12.7 million to £19.0 million. With the exception of war risk pricing, where the exceptional rates prevailing in the aftermath of 11 September 2001 have come off their peak, but remain at very acceptable levels, all our classes continue to attract rate 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. SIMON BEALE DIVISIONAL UNDERWRITER