At  Allianz Global Risks US , formerly Allianz Insurance Company, premium income fell by 11.4 percent to 677 (765) million eu- ros, which is mainly attributable to the selective underwriting policy pursued by the company. This insurer specializes in the major client segment. In the twelve months under review, it re- turned to the profit zone, generating earnings after taxes of 36 million euros. Allianz Insurance Company of Canada generated premium in- come of 568 (549) million euros.  In the  current fiscal year , we expect our comprehensive re- structuring efforts and our prudent underwriting policy to bring about further improvements. In  Mexico , premiums amounted to 210 (132) million euros. G ROUP MANAGEMENT REPORT Property and Casualty Insurance 57 Overall, our companies in the Asia-Pacific region returned to profitability and posted  earnings after taxes of 92 million euros, following a loss of 17 million euros in the previous year. Our company in Australia reported earnings after taxes of 74 million euros.  Allianz Australia – by far our largest company in this region – increased its premium income to 1.3 (1.2) billion euros and im- proved the combined ratio to 95.6 (104.2) percent. The con- tributing factors were both a lower claims ratio of 73.9 (81.8) percent and a reduced expense ratio of 21.7 (22.4) percent.  After the Chinese authorities granted us the requisite license, we started business operations in  China in March 2003. For the time being, the license is limited to the city of Guang Zhou (Canton) and to the industrial business only. We are working towards expanding our business without restrictions through- out China over the medium-term.  In view of the economic recovery in this region and our oper- ating success in its markets, we are confident that we will be able to further improve our earnings performance in the  current fiscal year . Gross premiums by country In  India , an insurance market with very strong growth rates, our joint venture is already, in terms of revenues, one of the three leading private providers of property and casualty insur- ance.  We had to close down our property and casualty insurer in  South Korea . The company had been set up the previous year, with the intention of selling products mainly across bank counters. Withdrawal from the market became necessary after the South Korean government announced that the distribution of property insurance through banks would not be authorized until 2006, rather than 2003.  ASIA-PACIFIC REGION Overall, we succeeded in restoring the profitability of our op- erating businesses in the NAFTA region and to turn the previous year loss of 702 million euros into  after-tax earnings of 221 mil- lion euros.  Asia-Pacific Region 2003 2002 2001 ¤ mn ¤ mn ¤ mn Australia 1,254 1,163 1,048 Malaysia 116 133 48 Taiwan 96 101 89 Indonesia 58 65 55 Japan 44 52 46 China 38 42 35 Singapore 38 33 17 Laos 8 7 6 Korea 2 3 – Total 1,654 1,599 1,344 Total premiums earned (net) 1,171 1,134 768 Total earnings after taxes 92.3 – 17.3 10.1 _  The operating business in China was launched in the reporting year.  _  Premium income in the Asia-Pacific region increased by 3.4 percent and our total revenues amounted to 1.7 billion euros.