Ramani Ayer Chairman, President and Chief Executive Officer Second, we exited the assumed property-casualty reinsurance business. While the HartRe team did a tre- mendous job of restoring the returns in our current reinsurance book, we were a small player in this business. Our scale did not justify the capital investment required to compete effectively.  Third, we took aggressive action to reduce our cost structure to make our core businesses more competitive. Our expense ratio was 1.5 points better than in 2002.  Those actions, combined with business initiatives designed to succeed in our ever-changing environment,  set the stage for a successful year. Our team’s collective efforts resulted in strong property-casualty results.  We increased net income before the impact of the reserve action and net realized capital gains 41 percent to $725 million. As we focus on our core businesses, giving agents great products for their customers and making it easier  to sell them continue to be critical priorities for us. From 1987 to 2002 the number of property-casualty  agencies in the United States declined by 25 percent, while agency size grew. Studies have shown that agents  give 80 percent of their business to the top three insurance companies they work with. Our agent strategy is geared to making us our agents’ number-one insurance carrier.  Agents have told us their top carriers are companies who are easy to do business with. In 2003 we  intensified our focus on our agent and broker partners. Our strategy has three primary objectives: The first is  to provide local market knowledge and professional sales support so agents can confidently sell (and cross-sell) both business and personal insurance. The second is to standardize our sales and service practices so regional and national agencies have the same positive experience with The Hartford, no matter where they do business with us. The third is to continuously develop and introduce new products and other innovations to extend our  market reach. Agents and brokers want to build partnerships with financially stable companies, and they look for partners who stay on top of their customers’ ever-evolving needs. The best reassurance we can give customers is to be there when they need us.  2003 Annual Report Eleven