Le Foyer S.A.

Revenues grew 6.2% to € 203.58 million in 2003, following a5.1% increase in 2002.After stripping out premiums related to fronting activities for captivereinsurance companies, Le Foyer Assurances posted revenuesof € 167.82 million in 2003, a 5.8% increase on the 2002figure of € 158.57 million.Motor insurance continued to sell well in 2003 (+5.8%), with thefully comprehensive Tous Risques Auto policies recording growthof 9.2%.As regards the other branches, revenues grew by 5.2% overall,fuelled in part by tariff increases in industrial risks.In addition, revenues earned in southern Belgium under the freeprovision of services regime climbed 28.4% in 2003 (versus a24.7% increase in 2002), spurred primarily by a competitive motorinsurance product.The combination of good technical results and stringent cost controloffset the reduction in recurrent financial income stemmingfrom lower interest rates and the reduced number of higher-yieldingsecurities in the portfolio.Net profit totalled € 14.94 million in 2003, a 17.6% increase onthe 2002 figure of € 12.70 million.Whereas € 20.80 million of value adjustments were booked onthe securities portfolio in 2002, the corresponding 2003 figurewas only € 2.58 million. In addition, € 4.04 million of value adjustmentswere written back on sizeable participating interests in2003.21Foyer Re, the group’s captive insurance subsidiary, recorded anincrease in the provision for fluctuations in the claims rate, from€ 27.91 million at end-2002 to € 34.79 million at end-2003,partly thanks to the write-back of value adjustments on securities.Although Foyer Re had to shoulder a heavy claims expensein the motor civil liability segment, it managed to offset some ofthe impact by laying off risk to other reinsurers.