We continue to believe that solid household income growth will sustain decent - but not spectacular - consumer spending this year.

Overall, while it is clear that the pace of jobs growth is moderating, we continue to believe that the unemployment rate will hold broadly steady around five per cent amid trend-like growth in the economy and employment.

Rising energy prices will further subtract from already-falling real income growth in Japan. In our view, a one or two percentage point subtraction from the growth rate of consumer demand at the margin will prove catastrophic to all hopes of substantial economic expansion.

Fortunately, continued job and income growth and the overall economy growth will help to offset the fall in housing activity that otherwise would occur.

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.