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Although rates and terms remain satisfactory for most lines of business, we expect these trends to continue and to put modest pressure on our top line. 

Our gross premiums written in the U.S. declined by 12.1% in 2004, from $1,188.0 million to $1,044.4 million. In this vast and robust market, OdysseyRe provides a wide array of reinsurance coverage for non- life insurance clients who underwrite almost every line and class of business. Overall, OdysseyRe has emerged as a leading reinsurer, one of the top five U.S. broker markets. More than 36% of our business is casualty reinsurance. We are among the top underwriters of casualty facultative reinsurance in the U.S. broker market, where opportunities continue to increase due to the withdrawal of some of our competitors from facultative. In the treaty business, we are well-positioned to meet customer needs, particularly in specialty casualty areas such as umbrella, D&O, medical malpractice and professional lines, as well as property, general casualty and surety. 

Our Latin America unit has its headquarters in Mexico City, with offices in Miami and Santiago. During 2004, 

## 2004 Gross Premiums Written by Type of Business 

we increased our presence in this overall attractive market, with gross premiums written growing by 14.4% from $150 million to $171 million. Outside of the Caribbean, the lack of catastrophe activity had the effect of dampening primary rates and attracting new capacity into the market. The Caribbean region reflected the economic impact of 2004’s major hurricane activity. Deductibles, primary prices and reinsurance rates all firmed in reaction to those events. In Mexico City, the center of our Latin American operations since 1998, we have become a leading property facultative market. 

Our Canadian operation, based in Toronto, reduced its gross premiums written to $46 million, from $80 million, stemming largely from the non-renewal of a single contract with an affiliated company. On a net written premium basis, the region grew by 7.5%. At $2 billion of gross premiums written, Canada is a small and historically competitive market. Property rates were flat in 2004, with casualty rates continuing to increase. We remain positive about our prospects for growth and profitability in Canada over the long term. 

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