LGF continues to grow its Group protection business where it targets medium sized corporate schemes through corporate advisers. Recent public policy changes resulted in a reduction in government support for medical expenses. This led to a slight deterioration in our claims ratio prior to price increases being implemented during the year. Meanwhile, the French retail savings market continues to shrink under the weight of the eurozone troubles. Our retail new business sales fell slightly but still outperformed the market.
The eurozone crisis presents challenges to the French insurance sector which require us to continue our careful asset and liability management of LGF.