ALLIANZ GROUP 70 _  In Spain, our life insurance activities are handled by Allianz Seguros and Eurovida, a bancassurance joint venture. _  Together, they increased their premium income by 10.8 percent to 611 million euros. _  They rank eighth in the Spanish market. Allianz Seguros generated premium income of 466 (424) mil- lion euros. The company focused its activities mainly on the ex- pansion of the private customer business through its own dis- tribution network. Despite the generally sluggish market, it managed to reach this objective by enhancing the productivity of its sales force. With premium growth of 9.8 percent, the com- pany clearly outperformed the market. We also succeeded in further increasing our market share in sales through independ- ent agents. Newly developed retirement products boosted sales of individual life insurance contracts and raised premium in- come in this business line by 12.7 percent.  Eurovida increased its premium income by 14 percent to 145 (127) million euros. The  expense ratio declined to 6.3 (6.7) percent.  Earnings after taxes improved to 33 (30) million euros. *) In relation to total premiums earned (net). Spain SPAIN  In the  current fiscal year , we will continue to build up our pri- vate customer business in Spain. We are upgrading the local coverage of our distribution network and investing to improve the quality of the advice and service provided by our represen- tatives. These initiatives are expected to bring about a further improvement to our earnings performance. 2003 2002 2001 Total revenues ¤ mn 611 551 940 Gross premiums ¤ mn 540 502 879 Premiums earned (net) ¤ mn 530 493 873 Expense ratio *) % 6.3 6.7 3.9 Earnings after taxes ¤ mn 33.1 29.5 27.5 Investments ¤ mn 4,327 3,956 3,564