geographic and customer segment strategy and amplified our surplus lines market approach.  who are fluent in the languages, practices and nuances of the local markets. Operating on dual platforms from two trading floors at Lloyd’s, the  London Market Division underwrites insurance and reinsurance business on a worldwide basis. Newline Syndicate at Lloyd’s underwrites international casualty insurance. Our London Branch underwrites property and casualty treaty reinsurance. In 2004, the London Market Division wrote $447.7 million in gross premiums written, an increase of 2.2% from the prior year. Also during the year, the London Branch established an underwriting box at Lloyd’s to take greater advantage of the deal flow present within that concentrated marketplace. Excepting catastrophic events, 2004 was a good year to be an underwriter. It was also, however, a year pointing toward higher levels of competition in the future. From our viewpoint, the industry’s overall landscape is in motion. Despite the withdrawal of one major U.S. competitor, capital is sufficient within the sector. Nevertheless, the industry’s operating environment continues to be influenced by unprecedented natural catastrophes; legislative initiatives; continued asbestos developments; medical malpractice concerns; modest investment results; and competitor withdrawals. On the distribution side, the investigations by New York’s attorney general, among others, have had at least one clear consequence: the value of services provided will be a continual focus of both buyers and sellers, regardless of their “business model.” As the theme of this report suggests, we believe that the fundamentals of our business don’t change dramatically. From the basic “elements of nature,” comes a proliferation of natural and man-made exposure…the elements of risk. In its second full year as a stand-alone segment, the U.S. Insurance Division continued to be an engine of growth for OdysseyRe. Gross premiums written totaled $412.1 million, an increase of 23.5% over last year. Hudson Programs, which accounted for 66.6% of the Division’s business, continued to grow as we introduced new programs and continued to develop existing client relationships. Hudson Healthcare grew by 24.5% to $137.7 million in gross premiums written as we benefited from insurance dislocations in the medical malpractice market, sharpened our focus on 4 Maintaining Our Performance Across Underwriting Cycles