Our commercial insurance business showcases our forward-looking approach. Agents, brokers and  customers tell us they like our service-delivery model, the technology platforms that enable them to do business with us easily, and our comprehensive products. Our performance in these areas has made us a recognized  leader in the business insurance segment, where new business growth totaled 17 percent last year.  Spectrum Xpand, which we introduced in 2003, adds more fuel to our business insurance product portfolio. This easy-to-write business owner’s policy features enhanced coverages and customized limits for larger small businesses. As today’s small businesses grow and move into workspaces with higher property values, and as they record higher annual sales and hire more employees, we are ready to provide for their evolving insurance needs.  During the year we introduced more agents to our Electronic Business Center. This is an online resource agents can use to produce the customized, competitively priced policies customers demand—and do it fast. Using our Electronic Business Center is like ordering a car online with all the custom features you want, getting the best price possible and having it delivered to your garage within days. Personal lines insurance is another part of the property-casualty business where we have recognized  expertise. Through our partnership with AARP we are the recommended insurance provider to the nation’s  over-50 market.  For customers under 50, or for those who prefer to buy auto insurance through agents, we designed a prod- uct that better reflects their individual driving characteristics. The essence of Dimensions Auto, now available in 34 states, is an analytical model that matches premium levels more precisely to driving habits and the probability of claims. Furthermore, it allows us to expand our targeted customer range. Dimensions Auto is easy for agents to use, and we know it works. This product was largely responsible for a 250 percent jump in new auto policy sales among agents in states where the product was available.  With that success under our belt, we launched Dimensions Homeowners in early 2004. Dimensions Homeowners uses the same methodology as Dimensions Auto to produce more accurate homeowners insurance rates. And it gives independent agents an opportunity to offer the full complement of The Hartford’s personal insurance products to more customers.  All in all, from small businesses to large businesses to personal insurance, we had an impressive year in  2003 in our property-casualty operations and are set up to continue to see positive results in the years to come. Every seven minutes a U.S. adult turns 50. They need to fund college educations, prepare for retirement and ensure that their assets are passed along according to their wishes. They want to maintain their high standards  of living throughout their retirement years. Having weathered the economic and market downturn, they are approaching retirement planning with a new sense of caution. They recognize that they need professional advice and reliable investment products.  In 2003 our life operations met baby boomers’ needs head-on, and they bought our products in record  numbers. Net income for our life operations increased 38 percent to $769 million. We reported record-breaking variable annuity sales of $15.7 billion in 2003, a 51 percent increase over 2002, because we offered a product with a principal guarantee. It is specifically designed to meet boomers’ heightened awareness of the need to protect, as well as grow, their retirement income. To allow us to protect  our financial strength while bringing forward this valuable product innovation, The Hartford, as always,  implemented prudent risk management.  We have taken what we know about selling variable annuities in the United States and applied it to Japan. We are the number-one seller of variable annuities in both countries. After just three years in the Japanese  market, we are profitable. We now manage $6.2 billion in assets there. We also had record 401(k) and institutional sales in 2003. Customers who want to create a better future  are building their retirement savings, and demographic trends suggest they’ll be doing that for years to come. With the largest concentration of baby boomers turning 60 between 2012 and 2015, the potential market for our retirement products will double between now and then.  Twelve The Hartford Financial Services Group, Inc. Life operations—multiple growth engines