In the past, the market has absorbed home price increases with household income growth. Well, we had household income growth in 2005, but appreciation rates were higher than that, therefore we needed the low interest rates.

Some kind of adjustment has to happen. Home prices have been growing so fast for so long, outstripping income growth for many years.

First quarter combined ratio and net income were very solid and premium growth in new markets has been strong. Last fall we announced plans to enter three additional states in the second quarter of 2006 to further our national expansion strategy. I'm pleased to announce that we will begin operations in Florida, Georgia and Pennsylvania in the second quarter of this year. These three states represent 15% of the total U.S. personal auto premium, bringing the percentage of the U.S. where we actively market to 45%.

We're especially pleased with solid fee income growth across the board, ... We see no signs of credit deterioration on the horizon.

Higher claims suggest slower job gains, which should dampen income growth, consumer spending, and overall economic activity.

Overall, we achieved solid results in 2005, with strong income growth in our tobacco businesses partially offset by weaker results in food.