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## FRANCE 

_ AGF Group ranks eighth in the French life insurance market. 

_ We are number two in health insurance in France. 

_ Total revenues in life insurance came to 4.4 (4.3) billion euros. 

Total premium income increased by 3.6 percent as a result of two developments: 

_ In private customer business, we registered slight revenue growth of 1.2 percent. Revenues from the sale of guaranteed interest products declined but were more than compensated by the successful sale of unit-linked life insurance. 

_ Revenues from group insurance sales were also on the rise, mainly due to contracts with high non-recurring premiums. This business segment posted a 5.2 percent growth. 

Rate adjustments to compensate for growing health care costs (which rose by 11 percent) increased premium income from health insurance by 12 percent. 

Substantial cost reductions and efficiency gains, particularly in information technology, drove down the expense ratio 1.4 per- centage points to 16.5 percent. But we are not yet satisfied with these improvements and will continue our cost-cutting efforts. 

Net investment income rose to 1.9 (0.7) billion euros, mainly due to gains from the disposal of our interest in Crédit Lyonnais as well as other stock disposals as part of the systematic down- sizing of our equity portfolio. 

After taxes, our company returned to the profit zone and posted earnings of 191 million euros, following a loss of 223 million euros in the previous year. 

## France 

<img src='content_image/6279.jpg'>

*) In relation to total premiums earned (net). 

In the current fiscal year , premium income should grow at the same rate as the overall market. After adjusting our product lines to the needs of our agents, our field representatives and their customers, we expect clear gains from sales through these channels. The upcoming reform of the French social security system in 2004 is likely to sustain further growth in health in- surance. 

