annualreport

2003

M o n d i a l A s s i s t a n c e G r o u p w o u l d l i k e t o t h a n k a l l i t s s t a f f f o r t h e i r k i n d p a r t i c i p a t i o n i n t h e i l l u s t r a t i o n s i n t h i s a n n u a l r e p o r t

annualreport2 0 0 3

ContentsEditorial page 4

Market leader page 6

International presence page 10

Region by region page 12

Group structure page 17

Review of operations page 18

Financial statements of Mondial Assistance Group page 20

Notes to the consolidated financial statements

of Mondial Assistance Group page 23

Report of the statutory auditors page 32

Financial statements of Elmonda page 33

Notes to the financial statements of Elmonda page 34

Report of the statutory auditors page 35

Business year 2001-2003 page 36

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performanceanticipation

team spiritresponsibility

development

solidarity

Sustainable development:a founding principle ofMondial Assistance Group

Our business activities are driven by anintrinsic spirit of sustainable development.Helping people in distress, being presentand proactive when the unexpectedhappens or insuring and protectingpeople while they are travelling or athome in their daily lives, are but afew examples of the strong socialnature of our products and services. The gradual development of ourdomestic health services reinforcesthis social contribution by offeringconcrete products such as Australia’sdisease management solutions forasthma, diabetes and heart disease,Germany’s rehabilitation programmesfor accident victims, and tele-assistancefor the elderly or handicapped. The social dimension is also reflectedin the way the Group provides itsservices. In the UK for example,applying innovative technologyenables people with speech and hearingimpediments to access assistanceservices despite their handicap. Mondial Assistance Group seizesevery occasion to design and developservices that respond to the realneeds of our society today and tooffer tangible ways to help people intheir daily lives. Sustainable development has alwaysinspired and will continue to inspirethe future growth of our Group.

Editorial2003 – a year of stability and the pursuit of cost containment

Mondial Assistance Group, world leader in travel insurance and assistance services, reconfirmed its number one market position in 2003, giving precedence to bottom line profitability over growth. The majority of Group entities matched the parent company’sperformance, also maintaining strong market positions and stable profits in the countriesin which they operate, and this despite extremely tense global conditions.

We anticipated the year’s political and economic difficulties and attentively applied a policy of strict cost containment and controlled investment, while carefully managing our networks of service providers. Management of service providers is complex and includescontrolling quality and costs, negotiating for improved pricing, building up existing networks and expanding into new, different types of provider networks. To further thesemanagement processes, we relied on new internet technology tools, which enable Groupentities to better share and monitor key information regarding providers, thereby optimising service quality and overall spending.

As a result, we as a Group and as individual business units were able to confrontimmediate challenges with maximum efficiency and minimum down turn. We successfullyheld our ground when there was a sharp drop in the tourism industry and the global economy continued to falter.

2003 was also a year in which we actively deployed our strategy to develop domestic healthservices throughout all markets, promoting solutions for illness prevention and personalwell-being. Benefiting from a successful launch, these services have demonstrated initialsuccess in terms of interest, client response and preliminary sales.

2003 figures – results even and steady

Despite a second year of economic stagnation and the morose international context, largelydefined by the onset of the war in Iraq and the SARS epidemic, Mondial Assistance Groupposted 995 million Euros in sales, only slightly less than in 2002. At constant exchangerates and considering exceptional movements within the Group’s portfolio, the growth ratecompared to the previous year, in fact, is positive. We also maintained profitability, posting positive net results for the Group of 15.6 millionEuros. This healthy performance is due in part to the significant improvement in damageclaims, and our strict policy of cost containment. Our stable results also demonstrate ourcapacity to quickly adapt to market fluctuations and to resist crises which can drasticallyaffect our everyday markets.

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Members of the Executive Committee (from left to right)

Alain Demissy - PresidentIda Luka-LognonéDidier LebretJonathan Ansell

Looking ahead

The year 2004 should see a limited economic comeback in Europe and some improvement in the organised grouptourism market, excluding of course, any unexpected major events. The Group’s solid foundations provide thegrounds for a positive future. And the proven strength of our worldwide development strategy – encouraging innovationand diversification within our product and service offer – makes us confident about our prospect for growth in thecoming year.

We continue in our commitment to providing long-term quality service to clients, partners and shareholders.With the support, energy and expertise of our 7 500 staff members and our local and international network partners,we aim to ensure the sustainable development of Mondial Assistance Group.

Zürich and Paris, March 23rd, 2004

Detlev Bremkamp Alain DemissyChairman of the Supervisory Board President of the Executive Committee

A reference in global presence, technology and long-term partnerships

Internationally strong and continually innovating, the Group operates on ahuman scale…Mondial Assistance Group is the worldwide leader in assistance services and travel insurance.With its international infrastructure, the Group not only provides its corporate clientsaround the world with efficient and innovative solutions, it also offers seamless, personal,real-time assistance to its corporate clients’ customers, anytime, anywhere.

Its international presence and global vision have never diminished the Group’s involvementon a local level, or its human dimension. This is manifested twofold: by a practice set upbetween the head office and its different subsidiaries whereby information, experience andresources are shared to achieve synergies and efficient operations at all stages of anintervention; and by the fact that, in a complex and unpredictable world, each member ofthe Group is committed to the value of helping others and recognises the importance of thiscommitment.

People: Mondial Assistance Group’s greatest asset…The Group, which has been expanding internationally for the past 50 years, now includesa staff of more than 7,500 dedicated employees, spanning five continents, working in 37 operational business units present in 28 countries. Its staff is further supported by 240 correspondents and a worldwide network of service providers, the Group’s operationalrepresentatives in countries where the Group has no direct business units.

Speaking over 40 languages and trained to deliver appropriate solutions to corporateclients 24 hours a day, 7 days a week, the Group’s multi-professional staff brings togetherdiverse talent and experience including assistance coordinators, doctors, nurses, lawyers,network controllers, mechanics, IT professionals, psychologists and specialists in employmentsupport. The international network of 400,000 service providers accessed by the staff, inaddition to the 240 correspondents, who work with the Mondial Assistance Group on acontractual basis, include such professionals as doctors, nurses, airline companies, plumbers,electricians, locksmiths, roadside repair agents, car rental agencies, and specialists in homeassistance and child care.

Market leader

Key figures

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2003 2002 2001Employees 7 506 7 081 6 496Turnover gross in million EUR 995.5 1 008.0 907.2Premiums written gross in million EUR 820.2 810.1 731.7Service income gross in million EUR 175.3 197.9 175.5Profit after tax (group share) in million EUR 15.6 17.1 4.8

A worldwide network:

State-of-the-art, technological infrastructures for top quality performance…Through its continual investment in new technologies, the Group’s operational teams, be they receiving and handling telephone calls, processing and redistributing information or physically intervening at a given site, dispose of a complete range of sophisticated, technological tools and state-of-the-art resources. Investing in thesetechnologies, which include telematics, telemedicine, e-commerce and web services and tools, location viaGPS/GSM systems, cartography, and electronic transmission of information, enables the Group to enter and expandin markets where services are directly linked to an increasingly mobile population. These tools accelerate the relayof information to service providers operating locally, thereby providing interactive, flexible, safe and quality servicesin any circumstance, in real time.

Not only does this technological infrastructure make it possiblefor the Mondial Assistance Group network to successfullyoperate around-the-clock optimising intervention efficiency,but it also enables the Group to offer a wide range of state-of-the-art travel insurance, assistance and service solutions,which are innovative, tailor-made and respond to the changingand specific needs of corporate clients and their customers.

240 correspondents 37 operation centres in 28 countries

400 000 service providers 700 000 claims settled

6 million services delivered

3.6 million assistance cases1 intervention every 3 seconds,

10.3 million interventions a year

No situation will ever be too great, complex or unusual for the Group to resolve…Mondial Assistance Group continually develops diverse and innovative assistance, travelinsurance and service solutions for all kinds of situations, anywhere, anytime. Ever attentive to socio-economic and cultural trends, as well as to local market specifications,the Group offers a wide variety of products and services, several of which are listed belowunder its different business lines:

Travel insurance and medical assistanceTailor-made travel insurance packages which include medical assistance and repatriation,itinerary planning and a crisis help desk available 24/24.

Vehicle assistance and related servicesOn-the-spot roadside assistance, emergency repair, warranty administration, and telematicsservices.

Domestic health servicesTele-assistance services for the elderly, in-home temporary child care, telemedicine servicesand health management schemes focusing on solutions for illness prevention and personalwell-being.

Property assistanceAssistance in domestic catastrophes such as floods, fires or electrical damage, homesurveillance and protection, and maintenance schemes for commercial outlets.

CRM and support servicesCustomer relations management, concierge services, and round-the-clock information callcentres for public inquiries regarding new laws, legislation or other public matters.

International contracts for automobile manufacturers and tourism professionalsDesigned according to corporate client specifications, adapted to local country regulationsand market conditions, these international contracts facilitate integrated and cross bordersolutions. They also make it possible to coordinate and manage crisis situations thousandsof miles away.

This look at the Group’s business lines and product offers is far from exhaustive. But itdemonstrates the flexibility of Mondial Assistance Group’s solutions, designed to help itscorporate clients and their customers face any situation, simple or complex, anywhere inthe world.

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Acquiring new corporate clients and keeping them…Mondial Assistance Group has been actively developing close relationships with some corporate clients for more than three decades, and building lasting partnerships is one of its top priorities. To do this, the Group hasimplemented a commercial strategy based on four principles – seamlessness, transparency, tailor made solutions andlong-term commitment. As a result, clients who partnered with the Group 30 years ago are enjoying the long-termbenefits of this commitment.

Assistance, travel insurance and service solutions are designed with the client’s corporate culture in mind, and recognised as an integral part of their individual business. Where advantageous to the client, the Group remainsbehind the scenes and invisible, responding in the name of and on behalf of the client. However, the Group can alsoappear as the official service provider, if this is in the client’s best interest and if regulations so require.

This flexible approach has proven highly successful in building loyalty, between both corporate clients and theircustomers, and Mondial Assistance Group and its corporate clients.

The Group’s business-to-business partnerships are far from standard, and propose solutions which are tailor made,created and developed in tandem with each corporate clientbased on the specific and evolving needs of their customers.

This accompaniment, both strategic and geographical,through the many different phases of a client’s business development, is a fundamental principle on which alllong-term partnerships are founded. It is in this spirit ofpartnership that Mondial Assistance Group looks to build adurable, successful future for its clients and their customers,and for all its stakeholders.

Countries with a Group subsidiary

Countries with a commercial Group activity

AFRICAMauritiusMoroccoReunion Island

THE AMERICASArgentinaBrazilCanadaChileUnited States

International presence

International brands

ASIAChinaJapanSingaporeThailand

AustriaBelgiumCzech RepublicFranceGermanyGreece

IrelandItalyPolandPortugalRussiaSpain

SwitzerlandThe NetherlandsTurkeyUnited Kingdom

Baltic countriesBulgariaCroatiaDenmarkFinlandHungaryLebanon

NorwaySlovakiaSloveniaSwedenUkraineUzbekistan

EUROPE

AUSTRALIA

Subsidiaries reinforce group strategy to foster synergies and maintainstability despite the world’s economic and political challenges

While enduring dramatic world events such as the war in Iraq and the SARS epidemic in Asia, Mondial Assistance Group consolidated its business in 2003 in travel insurance,vehicle assistance and customer services, with a particular emphasis on developing itshealthcare offer. After aligning and implementing Group strategy in 2002, the differentcountries reinforced the Group’s strategy in 2003 while heeding calls for strict cost containment.Business units continued to invest in information technology, develop value-added healthcare and domestic assistance services, and promote e-commerce business. Here follows acloser region-by-region look at the events and developments which shaped 2003.

Asia-Pacific – growth in e-commerce and healthcare, and taking our first step into ChinaActivities in the Group’s Asia-Pacific region - Japan, Singapore, Thailand, Australia, and soonto be China – presented successful resistance to the morose political and economic climatewith improved performance by all countries, the implementation of new initiatives andstrong growth in Australia. Not only was there an increase in travel insurance sales, but Australia successfully launchedan e-commerce offer with very encouraging results. Overseas foreign student healthcare services also performed very well and we are now the main challenger in this segment. Inaddition, we extensively reorganised the delivery of our automotive assistance services, bysetting up branded response units in major Australian cities to ensure better quality andmore cost efficient service in this very cost-sensitive market. The Group’s entity in Japan successfully renegotiated all major accounts during 2003 in a highlycompetitive market. It also carried out internal reorganisation with the aim to create a moreefficient structure and achieve stronger growth in the future. Less affected by SARS than other markets, the impact on both Thai inbound and outboundtravel was still severe. Despite this, our travel insurance solutions, launched in 2002,registered very encouraging sales at year-end. We maintained steady growth in roadsideassistance where we are the country’s market leader.Encouraged by the development of the Chinese economy, we established our first base in Chinain 2003 with a view to invest long term. A legal structure was formed and Chinese authoritiesgranted the necessary licences to enable us to start developing our operations and establishcommercial contacts.

Africa & the Indian Ocean – expanding assistance activities and developing healthcare 2003 was another active year for Morocco and Reunion Island. Our entity in Reunion Islandconsolidated its travel insurance activities. Legislative changes and concentration of thefinancial services industry in Morocco, meant that our local business unit had to makeseveral major adjustments. Morocco and Reunion Island developed their own healthcareservice offer: Moroccans are now offered healthcare assistance outside the country and theReunion Island office launched tele-assistance services for senior citizens.

North America – heightened responsiveness and a proactive approach Group presence in North America is covered by entities in the U.S. and Canada.Although the war in Iraq and the SARS epidemic adversely affected the travel industry ingeneral, World Access in the U.S. implemented a strong commercial approach in 2003,significantly grew its on-line travel business and developed original products to boost salesgrowth. New products include last-minute travel and extended terrorism coverage aimed atrelieving increased consumer anxiety. Tour operators also benefited from products allowing

Region by region

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for flexible net pricing and benefits; online tools for travel agents contributed to streamlining the booking processand maximising sales. World Access in Canada primarily developed its on-line activity for both leisure and businesstravellers, and became market leader in this field when it launched on-line services for a major new client and specialityinsurance products for retail agents and on-line travel suppliers. Canada’s strong growth in 2003 required a gradualchange in organisation, while closely monitoring costs so as not to compromise profitability. World Access in the U.S.consolidated all operations in new premises inaugurated at year-end. Investments in a comprehensive IT platformfor both markets, which started in 2003, are to be completed in 2004. These entities will continue to develop on-linesales and service operations while controlling cost increases compared to sales.

South America – sustained IT investment and focus on qualityOur South American market includes Chile, Argentina andBrazil. The latter, the continent’s largest country and economy,is becoming much less of a business risk, proven at year-endwhen Brazil’s published risk factor had dropped to a third ofwhat it was early in the year. This tendency was reflected in ourBrazilian unit’s strong performance. With service providers onstrike in the first quarter, prices on the rise and claim rateshigh, Brazil demonstrated its control of the situation despitethese challenges. Argentina struggled with the economic crisis,which took its toll on the business. And although there are nowsome signs of recovery, the market is still unstable.

Our Brazilian and Chilean units increased investment in IT technology; Chile introduced a new CRM software applicationand continued to enhance its product offer through improved technology and service. Argentina successfully renewed its ISO 9001 certification and also developed a quality department.Market leadership in Chile, and operational and product innovations in Brazil marked the developments for automotiverelated services in 2003. A sharp increase in on-site automobile repairs and a top-performing tool to document vehicledamage at the scene of an accident are just two examples. We also designed a successful application enabling insurancecompanies to outsource vehicle damage claim management to our Brazilian entity. The mid-term outlook focuseson cost containment, ongoing quality service and the development of our healthcare offer.

The Near Middle East – reinforcing local partnerships and client loyalty2003 Group strategy in Lebanon and Turkey has been to intensify commercial efforts with local partners. Bankinginstitutions in Lebanon launched travel insurance and medical assistance services. We consolidated our organisationin Turkey, where market conditions continued to be difficult. Turkey’s inbound tourism was greatly affected by thewar in Iraq and the local terrorist attacks, but we nevertheless witnessed strong client loyalty. Our Turkish unit’sprivileged geographical proximity helped subsidiaries provide assistance services to Group clients and their customersin the stricken region.

Central Europe – optimising operational platforms and building new client partnerships2003 Group activities in the region, which includes Austria, the Czech and SlovakRepublics, Slovenia, Croatia, Hungary, Romania, Russia, Poland and Bulgaria, focused onoptimising and reinforcing shared platforms and developing commercial ties, through newclient acquisitions and expanding existing business.Both the Austrian and Prague based entities focused on IT investments to improve efficiency.Austria extended its multi-country platform to now cover 5 countries. It replaced traditionaldata processing with electronic methods while the Czech Republic installed a new datawarehouse. The Group’s Polish unit, providing services to Bulgarian, Russian, Ukrainianand Polish customers, posted strong growth in 2003. The increase in operations and preparing entry into the European Union in 2004 required a reorganisation of logistics andstaff. In addition, we opened commercial offices in Bratislava and launched a range of vehicle,home assistance and travel insurance solutions on the Slovakian market, resulting inSlovakia’s first contract with a major insurance client. In Russia and the Ukraine, commercial ties were reinforced, particularly in the insurance sector. Austria launched on-line subscription for their travel partners, which, combined with new clients in the banking,insurance and automotive sectors, led to a significant increase in business. The same is true for Poland,which developed dynamic commercial ties with new clients from the banking and automotivesectors, particularly in vehicle and home assistance. Other highlights include innovative servicesfor Polish bank customers via their accounts, and reinforced business with travel agent partners.

Northern Europe – priority to client portfolio management and telematics operations The tourism industry in this region, which includes Switzerland, Germany, Belgium,the Netherlands, the UK, Ireland and the Nordic countries, took a blow in 2003 due to a changein consumer behaviour caused by the conflict in Iraq, the SARS epidemic and the stagnanteconomy. It particularly affected the travel insurance business of our German, Dutch andSwiss entities. However, this downturn was compensated by strict control of claims’ costs, and concertedefforts to reduce external expenses, including the optimisation of the provider network and in-house organisation. The Netherlands and Belgium focused on client portfolio management,with a focus in Belgium on roadside assistance. Combined with successful rate renegotiations, thisled to improved operational results. Like other units, Belgium applied containment measuresfor internal operating costs, which partly compensated for the overall slight drop in business. Withthe aim to improve processes, they also finalised implementation of a new IT system.Following the legal merger of our Dutch assistance companies, our entity reorganised and consolidated operations within the same office location. While focusing on cost control, our German and Swiss entities pursued portfolio diversification anddeveloped innovative products and services. These include telematics for automobile clients,on-line travel insurance offers and special credit card services for banking institutions.Our Dutch branch acquired new clients in the travel business, and despite the slide in the touristindustry, was able to increase its market share in specific segments. In line with the Group’s healthcare strategy, our German assistance entity acquired a 50%stake in Rehacare, a company specialising in rehabilitation programmes. Germany alsobegan to design its own healthcare concepts and to adapt several which were developed bythe Group in other markets. Our Belgian unit not only acquired several new clients, but also launched automotive telematicsoperations and an extranet for travel agents and brokers, used primarily as an operationaland sales management tool. In addition, they began developing new products for businesstravellers and specialists in bus travel. The UK also concentrated on effective client portfolio management, particularly in the travelinsurance business. These efforts produced enhanced performance. Due to changes in theautomotive client portfolio, our British entity very efficiently reorganised operations by activitytype, implemented telematics operations for new clients and completed successful renegotiationswith long-term partners. The Dutch unit enhanced roadside assistance with the launch of telematics

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operations and an extended warranty offer. For some countries, 2003 included new commercial initiatives in SARAprogrammes (Service Activated Roadside Assistance) and extended warranties. Developing our roadside assistancewith automobile importers in Switzerland has multiplied the company’s initial client base. Our long-standing automotive clients in the Nordic countries expressed renewed confidence in the Group.

Mediterranean Europe – health care, e-processing and reinforced automotive partnershipsFrance, part of the Group’s Mediterranean region along with Greece, Italy, Portugal and Spain, sustained steady growthin all business lines in 2003, and applied very strict cost containment measures. SSC invested in new invoicing processesfor providers, converting paper documents into electronic data. Spain also increased local productivity by expandingelectronic invoicing processes, a concept already successfully used for certain service providers. Italy streamlinedinternal costs by modifying certain payment processes for local providers. Several Mediterranean entities focusedefforts on improving risk management linked to travel. The serious heat wave last summer emphasised the importance of our French tele-assistance services (GTS), whichproved invaluable in saving people’s lives. Continued product innovation and development of preventive health measureswill enable our key partners, such as local authorities, to be better prepared to handle this type of crisis in the future.2003 highlights for Mondial Assistance France included designing new healthcare concepts and vehicle assistanceinnovations, launching services for retirement preparation and solutions for functional autonomy. Italy too focusedon its domestic health services offer, particularly for insurance companies. Throughout the year, France Secours reinforced and concluded important negotiations with automotive partners.Like several other entities, Italy continued to develop telematics operations, as well as sales of extended warrantiesthrough automotive importers and dealer networks. Elvia France renewed several travel insurance and assistance lines, and redesigned and extended an online serviceoffer for business partners. Italy launched its first B2B e-commerce operations, encouraging travel agent partnersto use the web-based sales tool instead of traditional subscription modes. Internet is also becoming the preferredmeans for claims declarations and follow-up. After installing a new CRM platform, our Spanish entity launched mechanical warranty and CRM services, whiledeveloping traditional business. Our Greek entity pursued developments with new partners and consolidated itsmarket position. Under Portugal’s new management team, the company reorganised operations and relaunched theirassistance and service offer for automotive clients, insurers and banking institutions. Positive results of their salesand marketing efforts showed before year-end, and promise interesting perspectives for 2004.

The combination of these activities contributed to stability and compensated for difficulties encountered in 2003.The efforts of all entities enabled Mondial Assistance Group to consolidate its position as international leader intravel insurance and assistance, and face the future on solid ground.

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Group structure

ALLIANZGROUP

R.A.S.International

A.G.F.

50% 50%Mondial Assistance Group(Zurich - Paris)

Holding ELMONDA

Supervisory BoardChairman Detlev Bremkamp

Delegate Vice-President François ThomazeauMembers Thomas Pleines

K. Walter Gutberlet

Share capital: CHF 40,000,000Year of legal foundation: 1999

Executive Committee of the Group

President Alain Demissy

Members Ida Luka-LognonéDidier LebretJonathan Ansell

For the year 2003

Turnover (Premium and Service Revenue)

Throughout the twelve-month period ended December 31st, 2003, Mondial AssistanceGroup’s turnover from the two main business lines - travel insurance and vehicle assistance- was strongly influenced by exceptional, adverse circumstances. First the events in Iraq and thenthe SARS epidemic significantly reduced demand in tourism, while the unfavourable economicsituation in Europe had a negative impact on new car sales and the tour operator industry.

In addition, a portion of insurance premiums and service fees translated in Euros werereduced as a result of currency exchange rates. Regarding the Group’s activity in the USAand the UK, the effect of the USD exchange rate and the devaluation of the British Poundled to a total loss in turnover of more than 30 million Euros, compared to a hypotheticalsituation at constant exchange rates in 2002.

In the European travel insurance business, the Group experienced significant turnoverreductions in two of its largest markets, a phenomenon which was coherent with thedevelopment of the tourism market in these countries. The French, Austrian and Italian travel insurers attained fully satisfactory growth inturnover increases, varying between +7% and +15%. The assistance activities in Europe demonstrated significant growth in certain countries,however, the overall turnover in Euros was stable compared to 2002.

In a difficult economic and political environment, revenue generated by the operations inNorth America (most of which are related to travel insurance) would have increased by11.8% had exchange rates been constant at the level of 2002. The devaluation of the USDrelative to the Euro led to a drop in turnover after translation into the Group’s reportingcurrency.

Group revenues from the Asia Pacific region increased by 10%, principally because of theservice revenues and insurance premiums generated by the Australian entity, whichamounted to an increase of 60%.

The strong growth in turnover in South America was the result of a rapid expansion in theactivity of the Brazilian unit, one of the Group’s largest entities.

Claims and Expenses

The claims ratio (including claims administration costs, net of re-insurance) in the insurancebusiness improved to 60.3% (2002: 61.7%), while claims reserves increased by 5 million Eurosto 111.2 million Euros.

Commissions were stable: Compared to 2002, the Group’s global commission ratio on insurancepremiums (gross of re-insurance) and service revenue decreased by a marginal 0.1 point toreach 17.0%.

General expenses (after transfer of expenses directly related to claims administration andassistance files) decreased by -5.1% while the amount reallocated to assistance services significantly increased. Without such transfers, the general expenses increased only slightly(+1.8%). The operating entities succeeded in adapting their costs rapidly and efficiently tothe changing environment and maintained expenses far below budget previsions.

Review of operations

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Investments and financial results

On December 31st, 2003, the Group’s financial investments amounted to 418.6 million Euros, compared to 407.0 million Euros at the end of the previous year. A portion of the cash and cash equivalents held at year-end(173.3 million Euros ; preceding year: 122.1 million Euros) can be considered as part of the investment portfolio.Given the situation in the bond market, the Group decided to temporarily increase short-term investments, whichare classified as cash equivalents.The part of shares in the portfolio has been reduced significantly in order to further improve the matching of theasset structure with the characteristics of liabilities born out of insurance contracts.Ordinary investment results decreased to 14.0 million Euros (down from 18.3 million Euros in 2002) as market interestrates fell to an exceptionally low level. Realised gains and losses on investment assets amounted to -1.5 million Eurosbut were more than offset by the reversal of impairments recognised at year-end 2002 (accounting result: +6.2 millionEuros in 2003, compared to -9.1 million Euros in 2002). In addition, the Group reduced its share in a subsidiarywhich in turn generated an additional realised loss of 1.9 million Euros. The realised total was therefore -3.4 million Euros, compared with those posted in 2002 at +6.8 million Euros. 2002 results included an exceptionalgain from the sale of an office building in Switzerland, amounting to +5.6 million Euros. We consider that the reported16.9 million Euros in total financial results reflect a return to a normal level. In 2002 this figure was 10.2 millionEuros, and in 2001, 17.0 million Euros.

Results before and after tax

With a slight growth in earned turnover (1.7%), an improved claims ratio and only a marginal increase in acquisition and administration expenses, 2003 posted a nearly constant net operating result of 23.9 million Euroscompared to 23.5 million Euros the previous year.

Due to much improved Financial Results, profit before taxes was 37.2 million Euros in 2003 versus 29.7 million Eurosthe previous year.

Taking into consideration the exceptionally high taxes on profits (20.4 million Euros in 2003, compared to 12.4 million Euros in 2002), which included a significant portion of non-recurrent tax expenses, profit after taxeswas 15.6 million Euros, compared to 17.1 million Euros the previous year.

Changes in Group structure

In 2003, Mondial Assistance Group legally established its Chinese subsidiary in Beijing, and prepared to launch operations. The Group reduced its participation in the Moroccan subsidiary from 80% to 41%. Elvia Travel Insurance in Zurich obtained an insurance license to operate in Poland and has established a branchoffice in Warsaw, which will begin underwriting travel and assistance policies in 2004. Elvia Sp.z.o.o, its Servicessubsidiary, has represented Mondial Assistance Group in Poland since 1999. The portfolio of the Dutch branch of Société Belge d’Assistance Internationale S.A. (SBAI) has been transferred tothe Dutch branch of Elvia Travel Insurance.

FinancialStatements

Consolidated Income Statement of Mondial Assistance Groupfor the Financial Year 2003

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in thousand EUR 2003 2003 2003 2002 2002Gross Ceded For own account Gross For own account

INSURANCE AND ASSISTANCE BUSINESSTotal Turnover (Premiums and Service revenue) 995 487 21 326 974 161 1 008 018 973 656

Written premiums 820 185 21 326 798 859 810 129 775 767 Unearned premium reserve change (10 621) 2 088 (12 709) (33 851) (34 397)Earned premiums 809 564 23 414 786 150 776 278 741 370 Claims paid current year (307 344) (5 147) (302 197) (302 506) (286 159)Transferred claims administration expenses (ICHC) CY (112 798) (112 798) (103 872) (103 872)Change in current year reserves (99 408) (970) (98 438) (99 439) (92 069)Claims incurred current year (519 550) (6 117) (513 433) (505 817) (482 100)Claims paid previous year (51 327) (6 310) (45 017) (53 937) (52 901)Transferred claims administration expenses (ICHC) PY (6 247) (6 247) (6 155) (6 155)Change in previous year reserves 96 074 5 393 90 681 88 878 83 696 Claims incurred previous year 38 500 (917) 39 417 28 786 24 640 Other technical income / expenses (22 984) (398) (22 586) (6 312) (5 954)Total Claims (504 034) (7 432) (496 602) (483 343) (463 414)Commission paid (Insurance Business) (149 233) (5 602) (143 631) (144 438) (138 066)Insurance Margin 156 297 10 380 145 917 148 497 139 890 Service revenue 175 302 197 889 Service income deferred change 842 (5 350)Service revenue earned 176 144 192 539 Other service income / expenses (11 087) (16 988)Commission paid (Service Business) (18 215) (21 018)Transferred service administration expenses (ISHC) (74 194) (65 833)Service Margin 72 648 88 700 Staff costs (242 901) (240 097)Employee participation (3 322) (1 220)IT costs (9 624) (4 720)Telecommunication costs (13 587) (14 686)Fees for group services (1 318) (678)Other administration costs (116 871) (119 524)Transfer of ICHC and ISHC 193 239 175 860 General Expenses after Transfer (194 384) (205 065)Operating Result 24 181 23 525

FINANCIAL OPERATIONSIncome 17 553 20 886 Charges (3 550) (2 622)Ordinary result 14 003 18 264 Realised gains 11 643 10 099 Realised losses (15 040) (3 313)Realised result (3 397) 6 786 Accounting profits and write-ups 10 162 210 Accounting losses and write-offs (3 987) (9 350)Accountancy result 6 175 (9 140)Exchange rate fluctuation gains 20 673 3 007 Exchange rate fluctuation losses (20 527) (8 700)Exchange rate result 146 (5 693)Financial Result 16 927 10 217 Depreciation on intangible assets (3 993) (4 264)Other income 208 3 868 Other expenses (155) (3 670)Result before Tax 37 168 29 676 Taxes (20 384) (12 517)Result after Tax 16 784 17 159 Minority interest in the results (1 166) (104)Group Result 15 618 17 055

FinancialStatements

Consolidated Balance Sheet of Mondial Assistance Groupon December 31st, 2003

SHAREHOLDERS’ EQUITY AND LIABILITIESShare capital 25 509 25 509Additional paid in capital 30 633 30 633 Other reserves 194 147 174 949Retained earnings (2 254) 6 234 Net profit for the financial year 15 618 17 055 Shareholders’ equity 263 653 254 380Minority interest in shareholders’ equity 3 863 12 673 Unearned premium reserves 265 085 254 705 Claim reserves 111 213 106 169 Other technical provisions 34 553 22 253 Technical provisions 410 851 383 127 Personnel provisions and similar 26 140 18 817 Provision for income taxes 17 740 13 764 Other non-technical provisions 12 193 13 311 Non-technical provisions 56 073 45 892 Deposits received from reinsurers 2 274 403 Loans 11 047 17 691 Liabilities - direct business 8 272 6 387 Liabilities - indirect business 11 127 9 328 Liabilities to associated companies - current accounts 2 577 10 484 Other liabilities 179 689 167 775Deferred income and deferred service income 20 504 29 220 Other liabilities 235 490 241 288 Deferred taxes - liabilities 23 879 17 328 Total liabilities 730 156 700 308 Total shareholders’ equity and liabilities 993 809 954 688

in thousand EUR 2003 2002ASSETSOutstanding contribution on capital 296 296 Goodwill 18 652 25 849 Other intangible assets 13 923 16 318 Intangible Assets 32 871 42 463 Land and buildings 10 495 15 702Other tangible assets 41 678 41 331 Tangible Assets 52 173 57 033 Shares 18 405 52 180 Fixed-interest securities 343 374 344 499 Other Investments 49 896 6 517 Securities - available for sale 411 675 403 196 Participations 2 756 236 Mortgages 120 134 Loans 4 014 3 401 Mortgages and Loans 4 134 3 535 Investments 418 565 406 967 Accounts receivable - direct business 72 518 70 956 Accounts receivable - indirect business 39 064 28 300 Accounts receivable from associated companies - current accounts 5 502 4 268 Other accounts receivable 111 550 136 537 Accounts Receivable 228 634 240 061 Deferred acquisition costs 19 689 19 054 Cash and Cash equivalents 173 183 122 136 Reinsurance deposit 18 867 17 960 Other deposits 2 068 5 342 Other Assets 20 935 23 302 Accrued interest 6 028 6 460 Other (prepayments and accrued income) 18 123 16 444 Accruals & prepayments 24 151 22 904 Deferred taxes - assets 23 608 20 768 Total Assets 993 809 954 688

FinancialStatements

22

Cash Flow Statement of Mondial Assistance Groupfor the Financial Year 2003

in thousand EUR 2003

Net result of the period 15 618 Change in unearned premiums reserve 3 124Change in claims and claim handling costs 5 044Change in other technical reserves 12 300Change in deferred acquisition costs -635Change in deposits held by others under reinsurance business assumed -907Change in deposits held under reinsurance business ceded 1 871Change in accounts receivable / payable on reinsurance business -8 965Change in loans and advances to banks and customers -599Change in liabilities to banks and customers -4 325Change in other receivables and liabilities 40 557Change in deferred tax assets / liabilities 5 263Adjustments to reconcile amortization of goodwill 2 317Depreciations 2 099Other 147Cash flow from operating activities 72 909

Change in securities available for sale* -5 388Change in real estate 5 409Change in other investments -267Change in cash and cash equivalents from the acquisition of consolidated affiliated companies -2 521Other -2 178Cash flow from investing activities -4 945

Dividend payouts -8 432Other from shareholder equity and minority interests -8 485Cash flow from financing activities -16 917Effect of exchange rate changes on cash and cash equivalents 0Change in cash and cash equivalents 51 047Cash and cash equivalents at beginning of period 122 136Cash and cash equivalents at end of period 173 183

* including unrealised loss/gain reserves on investments available for sale

Due to first time disclosure the cash-flow statement reflects 2003 movements only.

Consolidation scopeThe consolidated financial statements of Mondial Assistance Group comprise the annual accounts of Elmonda andits subsidiaries, which are prepared in accordance with the accounting and valuation principles of Mondial AssistanceGroup. Consolidated subsidiaries are listed on the pages 29 to 31.

The Société Française de Dépannage et de Services (S.F.D.S.), France merged with Société de Services Communs(SSC). A new service company, Mondial Assistance Beijing Services Co. Ltd. was founded in China. In Morocco, theparticipation in ISAAF Mondial Assistance was reduced from 80% to 41% and is consolidated at equity methodsince of November 1st, 2003. The Mondial Assistance Holding Deutschland, Munich bought a 50% share of rehacareGmbH, Munich, which is consolidated at equity method. The Dutch branch (NLER) of Elvia Reiseversicherungs-Gesellschaft AG, Zürich acquired the Dutch branch office of Société Belge d’Assistance Internationale S.A. (asset deal).

Consolidation principlesSubsidiaries have been recorded according to the full consolidation method when subject to the majority control ofMondial Assistance Group.

All intra-group transactions and balances have been eliminated.

Interests in joint ventures are recognised by including the accounts using the proportionate consolidation basis, i.e.by including in the accounts under the appropriate financial statement headings the Group's proportion of the joint venture revenues, costs, assets and liabilities.

Equity investments in which Mondial Assistance Group owns at least 20% of the voting rights are accounted forusing the equity method, except for investments in which Mondial Assistance Group is not able to exercise significantinfluence, in which case, the cost method is used.Investments in which the company owns less than 20%, are accounted for under the cost method.

The equity and net income attributable to minority shareholders' interests are disclosed separately in the balancesheet and income statement respectively.

The purchase method of accounting is used for acquired businesses. Companies acquired or disposed of during theyear are included in the consolidated financial statements from the date of acquisition or to the date of disposalrespectively.

Notes to the consolidated financialstatements of Mondial Assistance Group

Foreign currency translation

The Group’s reporting currency is the Euro (€). Foreign currency is translated by the methodof functional currency. The functional currency for Group companies is always the nationalcurrency, i.e. the prevailing currency in the environment where the enterprise carries on itsordinary activities. In accordance with the method of functional currency, assets and liabilitiesare translated at the closing rate on the balance sheet date and expenses and income aretranslated at the annual average rate in all financial statements of subsidiaries notreporting in Euro. Any translation differences, including those arising in the process ofequity consolidation, are taken to shareholders’ equity without affecting earnings.

Accounting and valuation policiesInformation on assets

Intangible assetsIntangible assets include Goodwill and other intangible assets such as exclusivity fees andsoftware purchased from others or developed in-house.

Goodwill represents the difference between the purchase price of subsidiaries and the proportionate share of their net assets valued at the current value of all assets and liabilitiesat the time of acquisition. Goodwill is recognised as an asset in the balance sheet.

Intangible assets are measured initially at cost and are recognised if it is probable that thefuture economic benefits that are attributable to the asset will flow to the Group, and thecost of the asset can be measured reliably. After initial recognition, intangible assets aremeasured at cost less accumulated amortisation and any accumulated impairment losses.

Goodwill and other intangible assets are amortised using the straight-line method overtheir estimated period of benefit, being 10 years for Goodwill and the estimated useful lifefor Software, with a maximum of 5 years. Mondial Assistance Group periodically evaluatesthe recoverability of Goodwill and takes into account events or circumstances that warrantrevised estimates of useful lives or that indicate the existence of an impairment.

Tangible assetsTangible assets include property and other tangible assets such as equipment.

Property employed for its own use and equipment are stated at cost and depreciated usingthe straight-line method over the shorter of the estimated life of the asset or the lease term.Land is depreciated over 100 years, land and building combined over 50 years and othertangible assets included under the heading “Other assets” over a period of their estimateduseful life at the date of purchase.

The Group recognises finance leases as assets and liabilities in the balance sheet at amounts equal at the inception of the lease to the fair value of the leased property. Initialdirect costs incurred are included as part of the asset. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance chargeis allocated to periods during the lease term so as to produce a constant periodic rate ofinterest on the remaining balance of the liability for each period.

24

Exchange rates of principalcurrencies (against 1 Euro) 2003 2002

Balance sheet Income statement Balance sheet Income statementyear-end rate average rate year-end rate average rate

Australia (AUD) 1.6788 1.7402 1.8497 1.7389Japan (JPY) 134.8500 131.0988 124.1900 118.1644Brazil (BRL) 3.6439 3.5184 3.7112 2.8304United Kingdom (GBP) 0.7070 0.6924 0.6502 0.6292Switzerland (CHF) 1.5590 1.5211 1.4525 1.4670USA (USD) 1.2610 1.1321 1.0415 0.9459

A finance lease gives rise to depreciation expense for the asset as well as a finance expense for each accountingperiod. The depreciation policy for leased assets is consistent with that for other depreciable assets.

InvestmentsInvestments include securities available for sale, participations, mortgages and loans.Securities available for sale are accounted for at fair value. Positive and negative differences between market valueand cost or amortised cost are included in a separate component of shareholders’ equity, net of deferred tax. Realisedgains and losses are principally determined by applying the average cost method.

Accounts receivableThe accounts receivable are carried at nominal value less any necessary value adjustment.

Deferred acquisition costsDeferred acquisition costs, which are incurred in connection with the acquisition or renewal of insurance policies,are capitalised and amortised through the income statement over the term of the policies.

Cash and cash equivalents This item includes balances with banks payable on demand, cash on hand and bank deposits with a maturity of threemonths or less at the date of purchase. The carrying amount of cash with banks and cash on hand corresponds to the fair value. Cash funds are stated attheir face value, with holdings of foreign notes and coins valued at year-end closing.

Deferred tax assetsThe calculation of deferred tax is based on temporary differences between the carrying amounts of assets or liabilitiesin the published balance sheet and their tax basis, and on differences arising from the application of uniform valuation policies for consolidation purposes. The tax rates used for the calculation of deferred taxes are the local ratesapplicable in the countries concerned. Anticipated changes are already taken into account as at balance sheet date.

Supplementary information on assets

Impairment of assetsAll assets are reviewed regularly to ensure that no further value adjustments are required. Valuation write-downsare charged to the income statement if any permanent diminution in value is identified. Write-downs are based onthe relevant estimated recoverable amounts.

Accounting for operating leasesAccounting for equipment and vehicles under operating leases, whereby the risks and benefits relating to ownershipof the assets remain with the lessor, are not recorded in the balance sheet and all related expenses are accountedfor in the income statement in the period they arise.

Information on liabilities

Technical provisionsTechnical provisions include unearned premium reserves, claim reserves and other technicalprovisions.

Premiums written attributable to income of future periods are accrued under unearnedpremium reserves. These premiums are distributed to the current fiscal year and subsequentyears over the period of the contract for every day that the premium has to cover.

Claim reserves are assessed according to local supervisory instances’ requirements, arecomputed on a case by case basis and are supplemented by IBNR reserves (reserves forclaims Incurred But Not yet Reported) based on management and statistical estimates.

Non-technical provisionsThese include personnel provisions and similar liabilities, provision for income taxes andother non-technical provisions.

Pension and similar reserves are calculated taking local circumstances into account as wellas expected future trends in salaries and wages, retirement rates and pension increases.

Provision for income taxes are calculated in accordance with the relevant local taxregulations.

Other liabilities Other liabilities include deposits received from reinsurers, loans, liabilities direct /indirectbusiness, liabilities with associated companies (current accounts), deferred income, deferredservice income and other liabilities. These are reported at fair value.

Deferred tax liabilitiesThe calculation of deferred tax is based on temporary differences between the carryingamounts of assets or liabilities in the published balance sheet and their tax basis, and ondifferences arising from the application of uniform valuation policies for consolidation purposes. The tax rates used for the calculation of deferred taxes are the local rates applicablein the countries concerned. Anticipated changes are already taken into account as at balancesheet date.

Information on income statement

Turnover Turnover includes insurance premiums and service revenue.

Premiums earnedPremiums written for travel insurance are reported proportionately as income over the termof the insurance contract for every day that the premium has to cover. Unearned premiumsare calculated separately for each policy in order to determine the portion of premium income that has not been earned.

Claims and service administration expenses (ICHC / ISHC)Claims and service handling costs are assessed according to business management criteriaand transferred from the general expenses to the claims and service administration expenses,respectively.

Ordinary resultInterest income and interest expenses are recognised on an accrual basis.Dividends are recognised as income when received. Interest on finance leases is recognised as interest expenses over the term of the respectivelease.

26

Income TaxesIncome tax expense includes current income taxes and deferred income taxes. Certain items of income and expenseare not reported in tax returns and financial statements in the same year. The tax effect of these timing differencesis booked as deferred taxes.

Technical interestDue to the short term character of the business the calculation of technical interest was discontinued in 2002.This has an impact on the ratios of previous years.

Explanation of the accounting and valuation policies differing from Swiss law

The most important differences are summarised below.

Shareholders’ equityShareholders’ equity increases overall because investments available for sale are shown in the balance sheet atmarket value with the unrealised gains / losses being included under other reserves.

Claim equalisation reservesClaim equalisation reserves and major risk reserves are not allowed under Mondial Assistance Group accountingpolicy because they do not represent a present obligation toward third parties.

Claims reservesClaims reserves tend to be somewhat lower under Mondial Assistance Group accounting policy because they are notcalculated in accordance with the prudence concept but at the best estimate of the ultimate cost.

Acquisition costsUnder Mondial Assistance Group accounting policy acquisition costs are capitalised and amortised over the term ofthe policy.

GoodwillGoodwill is amortised through income over its estimated useful life under Mondial Assistance Group accountingpolicy, but not exceeding 10 years.

28

Notesto the consolidated financial statements

Intangible and tangible assets

in thousand EUR intangible assets tangible assets real estate TotalBalance value on December 31st, 2002 42 167 41 331 15 702 99 200Exchange rate change -1 477 -1 906 0 -3 383

Balance value on January 1st, 2003 40 690 39 425 15 702 95 817

Increase 5 904 21 965 0 27 869

Change scope of consolidation -1 845 368 -2 015 -3 492

Decrease -967 -5 911 -2 372 -9 250

Depreciations -11 207 -14 169 -820 -26 196

Balance value on December 31st, 2003 32 575 41 678 10 495 84 748

Real EstateThe capitalised cost of buildings is calculated on the basis of acquisition cost and depreciation over a maximum of50 years in accordance with the useful life of the real estate. The gross capitalised values totalled 26.785 millionEuros at the beginning of the year and 21.376 million Euros at the end of the year. Accumulated depreciation amountedto 11.083 million Euros at the beginning of the year and 10.881 million Euros at the end of the year. No unscheduleddepreciation was recorded in 2003.

Tangible AssetsTangible assets such as equipment, vehicles and hardware are depreciated over 3 to 10 years according to their usefullives. The gross capitalised values totalled 102.033 million Euros at the beginning of the year and 106.596 millionEuros at the end of the year. Accumulated depreciation amounted to 60.702 million Euros at the beginning of theyear and 64.918 million Euros at the end of the year. Expenditures to restore the future economic benefits from theassets are capitalised if they extend the useful life of the asset, otherwise they are recognised as an expense.

Valuation reserve securities

in thousand EUR 2003 2002Fixed-income securitiesFor comparative information purposes the following has been provided:

Book value (in line with year 2001 valuation principles) 387 504 342 585

Market value (as per current year valuation principles) 393 270 351 016

Revaluation reserve 5 766 8 431

SharesBook value (in line with year 2001 valuation principles) 18 387 50 803

Market value (as per current year valuation principles) 18 405 52 180

Revaluation reserve 18 1 377

Notesto the consolidated financial statements - continued from page 28

Changes in the consolidated shareholders’ equityin thousand EUR 2003 2002Shareholders’ equity on January 1st 254 380 222 371 Exchange rate differences (5 380) (8 208)Net profit for the financial year 15 618 17 055 Elimination of excess reserves - 17 230 Unrealised gain reserves on afs investments (3 550) 8 180 Unrealised loss reserves on afs investments 5 303 (4 069)Others (2 719) 1 821 Shareholders’ equity on December 31st 263 653 254 380

Disclosures of Article 663 a/b CO,supplemented by voluntary informationin thousand EUR if not otherwise indicated 2003 20021. Contingent liabilities 34 753 29 312 2. Assets pledged as security for own obligations 129 129 3. Leasing obligations 81 322 67 741 4. Fire insurance value for tangible assets 84 181 38 632

5. Participations with at least 20% of voting rights or capital shareEUROPE 2003 2002

AustriaELVIA Assistance GmbH, Vienna Share capital in ATS 15 000 000 15 000 000Purpose: Assistance and services Share 100% 100%

BelgiumSociété Belge d’Assistance Internationale S.A., Bruxelles Share capital in EUR 7 709 000 7 709 000Purpose: Insurance Share 94.14% 94.14%Société Belge de Services Téléphoniques S.A., Bruxelles Share capital in EUR 74 400 74 400Purpose: Services Share 94.43% 94.43%

Czech RepublicELVIA Assistance s.r.o., Prague Share capital in CZK 30 000 000 30 000 000Purpose: Services Share 100% 100%

FranceMondial Assistance Réunion S.A., Saint Denis (Reunion Island) Share capital in EUR 329 008 329 008Purpose: Services Share 98.02% 97.41%ELUCYDEE S.A., Paris Share capital in EUR 4 387 000 533 000Purpose: Services Share 99.85% 98.60%Gestion de Télésécurité et de Services S.A., Chatillon Share capital in EUR 720 000 720 000Purpose: Services Share 97.92% 97.27%France Secours International Assistance S.A., Bagnolet Share capital in EUR 2 745 000 2 745 000Purpose: Insurance Share 90.98% 85.99%Mondial Assistance France S.A., Paris Share capital in EUR 7 916 400 7 916 400Purpose: Insurance Share 93.24% 93.24%Mondial Assistance S.A.S, Paris Share capital in EUR 20 088 900 20 088 900Purpose: Holding Share 99.99% 99.99%SACNAS International S.A., Paris Share capital in EUR 7 552 576 7 552 576Purpose: Holding Share 99.98% 99.98%SACNAS Développement S.A., Paris Share capital in EUR 3 088 000 3 088 000Purpose: Holding Share 97.94% 97.29%SAGE S.A., Chatillon Share capital in EUR 22 500 22 500Purpose: Services Share 97.92% 97.27%Société Européenne de Protection et de Services d’Assistance à Domicile S.A., Paris Share capital in EUR 174 750 174 750Purpose: Security and others Share 54.85% 54.49%Société Française de Dépannage et de Services S.A., Paris Share capital in EUR - 1 600 180Purpose: Services for the group Share - 93.67%Société de services Communs, Paris Share capital in EUR 221 067 1 564 200Purpose: Services Share 95.11% 93.67%

Notesto the consolidated financial statements - continued from page 29

30

GermanyMondial Assistance Holding Deutschland, Munich Share capital in EUR 2 353 200 2 353 200Purpose: Holding Share 49.99% 49.99%Mondial Assistance Deutschland GmbH, Munich Share capital in EUR 40 000 40 000Purpose: Services Share 49.99% 49.99%MONDIAL Service Deutschland GmbH, Wiesbaden Share capital in EUR 575 000 575 000Purpose: Assistance and services Share 49.99% 49.99%

Great BritainMONDIAL Assistance United Kingdom Ltd, Croydon Surrey Share capital in GPB 1 360 940 1 360 940Purpose: Assistance and services Share 99.98% 99.98%World Access Europe Ltd, London Share capital in GPB 1 000 1 000Purpose: Assistance and services Share 100% 100%

GreecePOLY - Assistance & Services A.E., Athens Share capital in EUR 60 000 60 000Purpose: Assistance and services Share 50.99% 50.99%

HungaryELVIA Assistance Kft., Budapest Share capital in HUF 78 000 000 78 000 000Purpose: Services Share 100% 100%

IrelandAssistance and Services Corporation of Ireland Ltd, Dublin Share capital in EUR 146 050 146 050Purpose: Services Share 99.98% 99.98%

ItalyELVIA Service S.r.l., Milan Share capital in EUR 98 000 98 000Purpose: Services Share 100% 100%Mondial Assistance Italia Ltd, Milan Share capital in EUR 6 708 000 6 708 000Purpose: Insurance and reinsurance Share 100% 100%Permatel S.r.l., Rome Share capital in EUR 95 000 95 000Purpose: Services Share 100% 100%

LuxembourgSACNAS Re, Luxembourg Share capital in EUR 5 049 000 5 049 000Purpose: Reinsurance Share 99.99% 100%

The NetherlandsMondial Assistance B.V., Amsterdam Share capital in EUR 454 000 454 000Purpose: Reinsurance and services Share 100% 100%ELVIA Travel Insurance International N.V., Amsterdam Share capital in EUR 15 999 868 12 000 128Purpose: Insurance Share 100% 100%

PolandELVIA Sp.z o.o., Warsaw Share capital in PLN 3 800 000 3 800 000Purpose: Services Share 100% 100%

PortugalAG2S - Asistencia e Gestao Social de Saude S.A., Lisbon Share capital in PTE 75 000 000 75 000 000Purpose: Services Share 21.00% 21.00%ELVIASSIST Servicos de Assistencia 24 Horas LDA, Lisbon Share capital in EUR 150 000 150 000Purpose: Services Share 100% 100%

SpainELVIASeg S.A., Madrid Share capital in EUR 4 209 782 4 209 782Purpose: Assistance and Insurance Share 100% 100%Sociedad Mundial de Asistencia S.A., Madrid Share capital in EUR 210 350 210 350Purpose: Services Share 99.98% 99.98%

SwitzerlandELVIA Reiseversicherungs-Gesellschaft AG, Zurich Share capital in CHF 25 000 000 25 000 000Purpose: Insurance and assistance Share 100% 100%

TurkeySAT S.A., Istanbul Share capital in TRL 206 785 000 000 206 785 000 000Purpose: Services Share 95.98% 95.98%

AFRICAMauritius Island

Mascareignes Services Assistance Ltd, Port Louis Share capital in MUR 1 103 000 1 103 000Purpose: Services Share 59.99% 59.99%

MoroccoISAAF Mondial Assistance S.A., Casablanca Share capital in MAD 50 000 000 12 000 000Purpose: Insurance and assistance Share 41.26% 79.96%

Notesto the consolidated financial statements - continued from page 30

ASIA PACIFICAustralia

Mondial Assistance Australia Holding (Pty) Ltd, Toowong Share capital in AUD 11 000 000 11 000 000Purpose: Holding Share 100% 100%ETI Australia (Pty) Ltd, Toowong Share capital in AUD 11 000 000 11 000 000Purpose: Services Share 100% 100%

ChinaMondial Assistance Beijing Services Co. Ltd., Beijing Share capital in EUR 480 000 -Purpose: Services Share 99.99% -

JapanAS NIJUYON K.K. (AS 24), Tokyo Share capital in JPY 75 000 000 75 000 000Purpose: Services Share 89.98% 89.98%

SingaporeWorld Access Asia (PTE) Ltd, Singapore Share capital in SGD 2 050 000 2 050 000 Purpose: Assistance and services Share 100% 100%

ThailandAuto Assist, Bangkok Share capital in THB 20 408 200 20 408 200 Purpose: Services Share 44.10% 44.10%

NORTH AMERICACanada

World Access Canada Inc., Waterloo Share capital in CAD 1 394 484 1 394 484Purpose: Assistance and services Share 100% 100%World Access Insurance Broker Ltd, Waterloo Share capital in CAD 1 1Purpose: Insurance broker Share 47.37% 47.37%

USATravel Care Inc., Miami Beach Share capital in USD 25 000 25 000Purpose: Assistance and travel agency Share 100% 100%World Access Inc., Richmond Share capital in USD 74 74Purpose: Holding Share 100% 100%World Access Healthcare Services Inc., Richmond Share capital in USD 2 500 2 500Purpose: Assistance and services Share 100% 100%World Access Service Corp., Richmond Share capital in USD 5 000 5 000Purpose: Assistance and insurance agency Share 100% 100%

SOUTH AMERICAArgentina

Mercosul Assistance Argentine S.A., Buenos Aires Share capital in ARS 212 000 212 000Purpose: Services Share 100% 100%

BrazilMercosul Assistance Participacoes Ltda, Sao Bernardo do Campo Share capital in BRL 7 641 918 7 641 918Purpose: Services Share 99.99% 99.99%

ChileCAS Brokers S.A., Santiago Share capital in CLP 5 000 000 5 000 000Purpose: Services Share 99.97% 99.97%Compania de Asistencia Sudamericana S.A., Santiago Share capital in CLP 788 840 810 788 840 810Purpose: Services Share 99.99% 99.99%

6. Shareholders with more than 5% votesRAS International, Amsterdam Share 50% 50%AGF Holding S.A., Paris Share 29.8% 29.8%AGF Iart S.A., Paris Share 10.1% 10.1%AGF Vie S.A., Paris Share 10.1% 10.1%

7. Accounts receivable and payable with associated companies in thousand EUR:Accounts receivable from insurance business 11 435 13 908Deposit retained on reinsurance assumed 16 728 14 224Accounts receivable for services 3 416 5 140Other accounts receivable 6 946 11 940

Liabilities from insurance business 1 631 9 821Deposit retained on reinsurance ceded 900 36Rendering of service debts 338 2 657Other liabilities 816 3 981

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Reportof the statutory auditors to the general meeting

Elmonda (Mondial Assistance Group)Zurich - Consolidated Financial Statements 2003

Report of the Group Auditors to the General Meeting of

Elmonda (Mondial Assistance Group), Zurich

As Group auditors, we have audited the consolidated financial statements rendered onpages 20 to 31 (income statement, balance sheet, cash flow statement and notes) ofElmonda (Mondial Assistance Group) for the year ended on December 31st, 2003.

These consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion on these consolidated financial statementsbased on our audit. We confirm that we meet the legal requirements concerning professional qualification and independence.

Our audit was conducted in accordance with auditing standards promulgated by the Swissprofession, which require that an audit be planned and performed to obtain reasonableassurance about whether the consolidated financial statements are free from material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the consolidated financial statements. We have also assessed the accountingprinciples used, significant estimates made and the overall consolidated financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements comply with Swiss law and theconsolidation and valuation principles as set out in the notes.

We recommend that the consolidated financial statements submitted to you be approved.

KPMG Fides Peat

Bill Schiller Rolf BächlerChartered Accountant Swiss Certified AccountantAuditor in charge

Zurich, March 10th, 2004

FinancialStatements

Income Statement of Elmonda for the Financial Year 2003

Balance Sheet of Elmonda on December 31st, 2003

in thousand CHF 2003 2002FINANCIAL OPERATIONSIncome 34 235 1 864ChargesAccounting profits and write-upsAccounting losses and write-offsTotal financial income 34 235 1 864Administrative expenses and costs of acquisitions (1 203) (1 165)Profit for the financial year before taxes 33 032 699Taxes (127) (261)Profit for the financial year 32 905 438

in thousand CHF 2003 2002ASSETSFixed assetsFixed-income securities 5 997 12 884 Participating interests 398 511 398 511 Total fixed assets 404 508 411 395

Current assetsCash and cash equivalents 8 762 102 Receivables and accrued income 18 198 93 Total current assets 26 960 196 Total assets 431 468 411 591

LIABILITIES AND SHAREHOLDERS’ EQUITYLiabilitiesAccruals and deferred income 295 348 Other liabilities 291 1 112 Total liabilities 586 1 460

Shareholders’ equityShare capital 40 000 40 000 Additional paid-in capital 357 000 357 000 Legal reserve 977 977 Retained earnings 0 11 717 Net profit for the financial year 32 905 438Total shareholders’ equity 430 882 410 131Total liabilities and shareholders’ equity 431 468 411 591

34

Disclosures under Art. 663b CO, supplemented by voluntary information

Notesto the financial statements of Elmonda

Proposal for the distribution of profits

in thousand CHF (if not otherwise indicated) 2003 2002

1. Participations with at least 20% of voting rights or capital share:Elvia Reiseversicherungs-Gesellschaft AG, Zurich Share capital 25 000 25 000

Purpose: Insurance and assistance Share 100% 100%

Mondial Assistance S.A.S, Paris Share capital in thousand EUR 20 089 20 089

Purpose: Holding Share 99.99% 99.99%

2. Long-term liabilities over 3 years - -

3. Accounts receivable and payable with associated companiesOther accounts receivable - -

Other liabilities - 924

in thousand CHF 2003 2002Net profit for the financial year 32 905 438

Foreign Exchange rate difference on dividends - -

Balance at the beginning of the year 0 11 717

Available profit 32 905 12 155

It is proposed to the Annual General Meeting to allocate this profit as follows:

Proposal for dividend distribution 30 738 12 155

Allocation to the legal reserves - -

Allocation to the special reserves - -

Balance carried forward 2 167 0 Available profit 32 905 12 155

Reportof the statutory auditors to the general meeting

Elmonda, Zurich - Financial Statements 2003

Report of the Statutory Auditors to the General Meeting of

Elmonda, Zurich

As statutory auditors, we have audited the accounting records and the financial statementsrendered on pages 33 and 34 (income statement, balance sheet and notes) of Elmonda forthe year ended on December 31st, 2003.

These financial statements are the responsibility of the Board of Directors. Our responsi-bility is to express an opinion on these financial statements based on our audit. We confirm that we meet the legal requirements concerning professional qualification andindependence.

Our audit was conducted in accordance with auditing standards promulgated by the Swissprofession, which require that an audit be planned and performed to obtain reasonableassurance about whether the financial statements are free from material misstatement. Wehave examined on a test basis evidence supporting the amounts and disclosures in thefinancial statements. We have also assessed the accounting principles used, significantestimates made and the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.

In our opinion, the accounting records and financial statements and the proposed appropriation of available earnings comply with Swiss law and the company's articles ofincorporation.

We recommend that the financial statements submitted to you be approved.

KPMG Fides Peat

Bill Schiller Rolf BächlerChartered Accountant Swiss Certified AccountantAuditor in charge

Zurich, March 10th, 2004

Income Statement

Businessyears 2001 - 2003

in million EUR 2003 2002 2001

Total Turnover (Premiums and Service revenue) 995.5 1 008.0 907.2Net earned premiums and service income 962.3 933.9 846.6Claims (496.6) (463.4) (438.8)Costs (441.5) (447.0) (412.4)Technical interest 12.9Operating result 24.2 23.5 8.2Financial result 2) 16.9 10.2 17.0Reallocation of technical interest (12.9)Other income/expenses and depreciation on intangible assets (3.9) (4.1) (2.3)Result before Tax 37.2 29.7 10.0Taxes (20.4) (12.5) (4.8)Result after Tax 16.8 17.2 5.2Minority interest in the results (1.2) (0.1) (0.4)Group result 15.6 17.1 4.8

Balance Sheet

ASSETSInvestments 411.7 403.2 347.5Cash and cash equivalents 173.2 122.1 107.2Accounts receivable 228.6 240.1 214.4Total remaining assets 180.3 189.3 184.6

Total assets 993.8 954.7 853.6

SHAREHOLDERS’ EQUITY AND LIABILITIESShareholders’ equity 263.7 254.4 222.4Technical provisions 410.9 383.1 332.5Other liabilities 319.2 317.2 298.8

Total shareholders’ equity and liabilities 993.8 954.7 853.6

Key FiguresReturn on equity (before taxes) 13.9% 12.4% 4.4%Return on earned premiums (before taxes) 3.9% 3.2% 1.2%Growth earned premiums and service income 3.0% 10.3% 12.0%

1) The presentation of the financial statement has been amended in 2002. The comparative figures for prior years have been amended accordingly.2) The financial result includes ordinary, realised, accounting and exchange rate gains.

Mondial Assistance Group

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