To make sure that the prerequisites for a sustained improvement of  competitiveness and  value creation are met, we have changed the rules for the allocation of capital within the Group. On prin- ciple, our operating units are held to meet the following condi- tions in order to receive growth capital. They must: Operating improvements  across all segments brought the Allianz Group back on track towards profitability within a short time. We are nonetheless aware of the fact that we still have a con- siderable way to go to reach the profitability targets we have set ourselves, particularly in the banking business and also in some insurance units. That the progress achieved in the operating business in 2003 is not fully reflected in our earnings perform- ance is mainly due to the following influences: _  Restructuring charges at Dresdner Bank amounting to 840 million euros. _  New tax laws that increased the tax charges in our German life and health insurance business by 428 million euros. _  An unscheduled amortization of the activated goodwill of our South Korean subsidiary amounting to 224 million euros. _  be in a position to pay dividends that are at least equal to their capital costs. _  fit in with the long-term strategic orientation of the Allianz Group; and _  transform their market position into sustainable creation of value and become a market leader; _  operate in a profitable market or business segment; For these new requirements, exceptions may apply for a limited period of time, for example for the units we are currently posi- tioning in future growth markets such as China and India, or in turnaround cases. In addition, the remuneration systems were more strongly oriented towards our Leadership Values (see page 92 of this An- nual Report) and towards meeting financial performance objec- tives. These are consistent with the increase of net income gen- erated in excess of capital costs and distributable profits. With that, we want to encourage our senior management to work to- wards a sustainable increase of the competitiveness and value creation of the Allianz Group. We also made considerable progress in  reducing the complexity of our corporate structures. Our activities in marine and avia- tion insurance were combined in the Allianz Marine & Aviation Group. Structures and workflows at Allianz Global Risks, our in- ternational industrial insurer, and at the Global Equity Platform, an administrative and organizational unit of Allianz Dresdner Asset Management. A total of 18 Group companies to which we assign no strategic importance were sold, wound up, or, as in the case of Advance Bank, reintegrated into existing units. We also reduced our stakes in Münchener Rückversicherungs- Gesellschaft (Munich Re) and Beiersdorf AG. In the course of 2003, we cut our interest in Munich Re from 22.4 percent to 12.4 percent. In the fourth quarter of 2003, we agreed on the disposal of most of our interest in Beiersdorf AG; after comple- tion of the transaction, we only hold 7.4 percent of the share capital of this company. With these initiatives, we not only re- duced the complexity and the risks of concentration in our equity portfolio but also gained an additional measure freedom for its management.  *) Calculated as net income in percent of average shareholders’ equity Overview 2003 2002 Gross premium income ¤  bn 85.0 82.7 Operating revenues from banking ¤  bn 6.5 7.6 Operating revenues from asset  management ¤  bn 2.2 2.3 Total revenues ¤  bn 93.8 92.6 Earnings before taxes and amor- tization of goodwill ¤  bn 3.9 – 0.1 Net income ¤  bn 1.6 – 1.2 Earnings per share ¤ 4.77 – 4.44 Return on equity after taxes *) % 6.4 – 4.6 G ROUP MANAGEMENT REPORT Overview 43