ODYSSEY RE HOLDINGS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME See accompanying notes. 45 Years Ended December 31, 2004 2003 2002 (In thousands, except share amounts) REVENUES Gross premiums written $ 2,656,509 $ 2,558,156 $ 1,894,530 Ceded premiums written 293,932 404,576 263,285 Net premiums written 2,362,577 2,153,580 1,631,245 Increase in unearned premiums (31,510) (188,487) (198,603) Net premiums earned 2,331,067 1,965,093 1,432,642 Net investment income 164,703 134,115 123,028 Net realized investment gains 113,464 202,742 135,796 Total revenues 2,609,234 2,301,950 1,691,466 EXPENSES Losses and loss adjustment expenses 1,629,564 1,325,765 987,195 Acquisition costs 528,425 476,015 362,262 Other underwriting expenses 125,679 101,308 70,269 Other expense, net 21,207 7,912 4,985 Interest expense 25,609 12,656 8,689 Total expenses 2,330,484 1,923,656 1,433,400 Income before income taxes and cumulative  effect of a change in accounting principle 278,750 378,294 258,066 Federal and foreign income tax provision (benefit): Current 112,300 141,660 6,593 Deferred (20,449) (12,591) 80,158 Total federal and foreign income tax provision 91,851 129,069 86,751 Income before cumulative effect of a change in accounting principle 186,899 249,225 171,315 Cumulative effect of a change in accounting principle — — 36,862 NET INCOME $ 186,899 $ 249,225 $ 208,177 BASIC Weighted average common shares outstanding 64,361,535 64,736,830 64,744,067 Income before cumulative effect of a change in accounting principle 2.90 3.85 2.65 Cumulative effect of a change in accounting principle — — 0.57 Basic earnings per common share $  2.90 $ 3.85 $ 3.22 DILUTED Weighted average common shares outstanding 69,993,136 70,279,467 67,919,664 Income before cumulative effect of a change in accounting principle $ 2.71 $ 3.59 $ 2.55 Cumulative effect of a change in accounting principle — — 0.54 Diluted earnings per common share 2.71 3.59 3.09 DIVIDENDS Dividends declared per common share $  0.125 $ 0.106 $ 0.100 COMPREHENSIVE INCOME Net income $ 186,899 $ 249,225 $ 208,177 Other comprehensive income, net of tax 24,419 90,694 34,721 Comprehensive income $ 211,318 $ 339,919 $ 242,898