Le Foyer S.A.

Foyer Re reported a € 6.88 million profit in 2003 versus a€ 4.75 million loss in 2002.In accordance with regulations applicable to reinsurance companies,this profit was allocated in full to the provision for fluctuationsin the claims rate, which duly increased to € 34.79 million.Foyer Re’s heavy exposure to abnormally high serious bodilyinjury claims in the motor civil liability segment was partly offsetby ceding risk to external reinsurers.Whereas Foyer Re was forced into sizeable value adjustmentson its securities portfolio in 2002 by the downturn in stockmarkets, the rally in 2003 paved the way for these to be writtenback, boosting the year’s profits.The internal reinsurance contracts entered into with LeFoyer group’s various Non-life insurance subsidiaries were renewedfor 2004 on similar terms to those prevailing in 2003.35