Capital remains strong across the consolidated Salama group. The group's current and prospective risk-based capital adequacy appears extremely strong when modeled. The group's overall competitive position is also strong, with leading insurance operations in the United Arab Emirates, Algeria, Egypt, Senegal, and Saudi Arabia, and also the separate operations of the BEST RE subgroup, which writes inward reinsurance in over 60 countries. Operating performance suffered in 2012 due to heavy claims at the BEST RE subgroup following floods in Thailand in late 2011. Nevertheless, these losses have now been paid or fully reserved and we expect operating performance in 2013 and 2014to return to the higher levels seen historically. We have therefore affirmed the 'A-' ratings on Dubai-based Salama/IAIC and
