NOTES TO CONSOLIDATED FINANCIAL STATEMENTS All the Company’ mortgage loans are amortizing loans. As of December 31, 2003 and 2002, the Company’s mortgage loans were  distributed as follows (in thousands): 2003 2002 Carrying Percentage Carrying Percentage Value Of Total Value Of Total United States: Arizona $ 26,030 5.43% $7 , 023 3.09% California 102,296 21.33% 59,186 26.02% Colorado 20,643 4.31% 8,467 3.72% Florida 45,100 9.41% 19,294 8.48% Georgia 31,882 6.65% 23,619 10.38% Illinois 28,595 5.97% 11,736 5.16% Indiana 11,438 2.39% 11,745 5.16% Kansas 13,633 2.84% 7,169 3.15% Louisiana 5,269 1.10% – – Maine 4,980 1.04% – – Maryland 6,949 1.45% 4,164 1.83% Missouri 14,199 2.96% 14,440 6.35% Nevada 11,155 2.33% 1,259 0.55% New Hampshire 2,377 0.50% – – New Jersey 16,159 3.37% – – New Mexico 3,900 0.81% 3,965 1.74% New York 3,605 0.75% – – North Carolina 22,958 4.79% 15,885 6.99% Oregon 5,849 1.22% – – Pennsylvania 5,451 1.14% 5,569 2.45% Rhode Island 5,266 1.10% 5,355 2.35% South Dakota 7,365 1.54% 7,480 3.29% Texas 20,943 4.37% 9,376 4.12% Virginia 31,883 6.65% 3,396 1.49% Washington 23,017 4.80% 8,364 3.68% Wisconsin 8,370 1.75% – – Total $479,312 100.00% $227,492 100.00% Policy loans comprised approximately 10.2% and 12.6% of the Company’s investments as of December 31, 2003 and 2002, respectively. These policy loans present no credit risk because  the amount of the loan cannot exceed the obligation due the  ceding company upon the death of the insured or surrender of the underlying policy. The provisions of the treaties in force and the underlying policies determine the policy loan interest rates. Because policy loans represent premature distributions of policy  liabilities, they have the effect of reducing future disintermediation risk. In addition, the Company earns a spread between the interest rate earned on policy loans and the interest rate credited to  corresponding liabilities. Substantially all mortgage loans are performing and no valuation allowance had been established as of December 31, 2003 and 2002. The maturities of the mortgage loans are as follows (in thousands): 2003 2002 Due one year through five years $105,179 $ 40,924 Due after five years 297,321 108,337 Due after ten years 76,812 78,231 Total $479,312 $227,492 THIS IS RGA. 2003 ANNUAL REPORT 62