business market–those businesses with revenues of $5 million  to $15 million–where The Hartford is under-represented. This insurance market totals about $20 billion in potential sales.  To re s p o n d e f f e c t i ve l y, we d e ve l o p e d a n e w p ro d u c t , “ Sp e c t r u m Xpand,” which extends our reputation for expansive coverage and quality service with agents and customers into this segment. Early results are promising; new sales to this segment accounted for nearly half of the 20 percent revenue growth in small busi- ness insurance sales in 2004, the effort’s first year. Every day, the employees of The Hartford come into contact with thousands of customers through sales and customer contact centers. In every interaction, we have an opportunity to demon- strate our passion for this business. That’s why I’m proud we won the 2004 Purdue University’s markets. In Japan, the world’s second-largest economy, the annuity business is still in its infancy. In December 2000,  The Hartford entered Japan and began to educate distributors and consumers about annuities. In fact, with 29 percent of  the variable annuity market, or $14.7 billion of assets under management, The Hartford is the leading provider of variable annuities with sales totalling $7.8 billion in 2004. Earlier in this letter, I covered one aspect of our personal insurance products, direct sales to AARP members. We also  sell personal insurance through independent agents. Our  reputation, quality coverage, and customer service offer what  agencies need. To service this business segment effectively, we developed two new underwriting tools. “Dimensions” gives agents the ability to offer personal insurance to a greatly Center for Customer-Driven Quality for our AARP contact center. (See story on page 22.) The award confirms our com- mitment and passion to customer service excellence and enhances our existing rep- utation for record-breaking service levels in our annuity customer service centers. We have won DALBAR Awards for annu- ity service excellence for the past nine years. (See story on page 15.) Every day, the nearly 30,000 employees of The Hartford  execute with attention to excellence and superior customer serv- ice. Last year was no different. expanded customer base. We coupled that with another tool  to instantly and effortlessly provide agents with pricing infor- mation. “ExpressWay” allows an agent to transfer system data  to us and obtain quotes without additional data entry.  In 2004, Florida and the Southeast were hit with four hurri- canes. Not since 1886, in Texas, has the United States been more ravaged by natural catastrophe. That year, one hurricane hit Indianola, Texas, and essentially swept the town into the gulf. Indianola was literally gone and not to be rebuilt. The aftermath of last year’s hurricanes was very different from that of 1886. The protection we provide allowed those affected to repair their homes and businesses and return to  them quickly. Results were outstanding–agency sales increased by 17 per- cent in 2004, and personal insurance net written premium grew by 9 percent to $3.6 billion. Supporting this growth is a 30 per- cent larger sales force focused on under-represented markets. With our expanded market reach, more advanced technology, excellent customer service, and increased sales staff–combined with our opportunities within AARP–we anticipate strong growth for personal insurance lines in 2005 and beyond. The Hartford’s small business insurance leadership is well- established. However, there is a growing segment of the small As always, The Hartford and its people rose to meet the  challenges of these hurricanes. We equipped more than 300 Property and Casualty written  premium topped a record $9.9 billion 4 “…we are a company of passionate, dedicated  people,    others  and to do the right thing.”