NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 INVESTMENTS 59 THIS IS RGA. 2003 ANNUAL REPORT Amortized Unrealized Unrealized Fair 2002 Cost Gains Losses Value Available for sale: Commercial and industrial $1,104,453 $ 50,518 $23,578 $1,131,393 Public utilities 346,072 40,346 8,960 377,458 Asset-backed securities 178,988 4,733 18,309 165,412 Canadian and Canadian provincial governments 457,077 75,109 3,160 529,026 Mortgage-backed securities 423,505 24,287 824 446,968 Finance 347,299 19,428 2,726 364,001 U.S. government and agencies 410,143 11,883 19 422,007 Other foreign government securities 65,180 1,258 – 66,438 $3,332,717 $227,562 $57,576 $3,502,703 Amortized Unrealized Unrealized Fair 2003 Cost Gains Losses Value Available for sale: Commercial and industrial $1,162,516 $ 53,545 $ 7,599 $1,208,462 Public utilities 663,491 102,479 2,567 763,403 Asset-backed securities 74,323 3,835 295 77,863 Canadian and Canadian provincial governments 440,207 73,336 1,276 512,267 Mortgage-backed securities 328,849 16,917 511 345,255 Finance 694,579 38,574 2,733 730,420 U.S. government and agencies 794,273 8,029 4,059 798,243 Other foreign government securities 140,359 766 1,303 139,822 $4,298,597 $297,481 $20,343 $4,575,735 YEARS ENDED DECEMBER 31, 2003 2002 2001 Fixed maturity securities available for sale $228,260 $203,534 $192,685 Mortgage loans on real estate 23,599 14,385 11,569 Policy loans 59,883 59,058 54,713 Funds withheld at interest 144,975 89,831 72,753 Short-term investments 2,501 3,393 6,513 Other invested assets 12,820 7,290 5,092 Investment revenue 472,038 377,491 343,325 Investment expense 6,459 2,979 2,766 Net investment income $465,579 $374,512 $340,559 Major categories of net investment income consist of the following (in thousands): The amortized cost, gross unrealized gains and losses, and estimated fair values of investments in fixed maturity securities at December 31, 2003 and 2002 are as follows (in thousands):