Future state of the industry

Assisted by the broadly positive prospects for the economy as a whole as well as for capital markets, and given the robust state of the insurance industry, the underlying mood driving expectations for the development of business in 2011/2012 is currently one of optimism. This should not, however, obscure the uncertainties that still exist or the risk of setbacks associated with the global imbalances and the failure as yet to restore financial stability to the Eurozone on account of the budget situation of certain member states. These factors pose a latent threat to international financial markets. Any turmoil occurring there could spill over again relatively quickly to the real economy and ultimately also to the insurance sector.