MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CORPORATE AND OTHER Corporate and Other revenues include investment income from invested assets not allocated to support segment operations and undeployed proceeds from the Company’ capital raising efforts, in addition to unallocated realized capital gains or losses. General corporate expenses consist of unallocated overhead and executive costs and interest expense related to debt and the $225.0 million of 5.75% mandatorily redeemable trust preferred securities. Additionally the Corporate and Other operations segment includes results from RGA Technology Partners (“RTP”), a wholly-owned subsidiary that develops and markets technology solutions for the insurance industry, the Company’s Argentine privatized pension business, which is currently in run-off (see discussion of status below), and an insignificant amount of direct insurance operations in Argentina. Loss before income taxes grew approximately 44.4% during 2003 compared to 2002, primarily due to a $6.4 million decrease in unallocated investment income, a $5.5 million increase in unallo- cated general corporate expenses, and a $2.9 million increase in unallocated realized investment losses. The Argentine operations slightly offset these corporate results providing income before income taxes of approximately $0.9 million. RTP operations,  which have no comparative prior-year results, broke even and added $4.8 million in other revenues and other expenses in 2003 due  to the growth in licensing, installation and modification services  associated with the Company’s electronic underwriting product.  Loss before income taxes decreased 73.1% during 2002 compared to 2001. Results for 2002 and 2001 are difficult to compare due to the Company’s decision to exit the privatized pension business in Argentina during 2001. The privatized pension business provided income from continuing operations of $4.7 million in 2002,  Administradoras de Fondos de Jubilaciones y Pensiones (“AFJPs”) are privately owned pension fund managers that were formed as  THIS IS RGA. 2003 ANNUAL REPORT 32 Status of Argentine Privatized Pension Business compared to a loss from continuing operations of approximately $71.3 million during 2001. The 2001 loss primarily related to  realized investment losses on Argentine securities supporting the business and an increase to reserves. Unallocated corporate revenues, consisting of unallocated investment income and realized investment losses, increased $24.7 million. This increase in corporate revenues was offset, in part, by an $18.6 million increase in expenses,  primarily interest expense. The substantial increase in interest expense during 2002 was primarily a result of the addition of the Preferred Securities (See Note 16, “Issuance of Trust PIERS Units” of the Notes to Consolidated Financial Statements) and the 2001 Senior Notes, both of which were issued near the end of 2001.  The Company views its long-term debt at its current level as an integral and ongoing part of its capital structure. FOR THE YEAR ENDED DECEMBER 31,  2003 2002 2001 Revenues: Net premiums $3 , 419 $ 862 $ 35,926 Investment income, net of related expenses 17,677 23,847 24,288 Realized investment losses, net (3,912) (4,785) (47,984) Other revenues 7,508 208 353 Total revenues 24,692 20,132 12,583 Benefits and expenses: Claims and other policy benefits 7,941 (4,089) 80,861 Interest credited 276 3,466 898 Policy acquisition costs and other insurance expenses (902) 452 8,281 Other operating expenses 26,303 16,488 17,985 Interest expense 34,650 33,994 16,549 Total benefits and expenses 68,268 50,311 124,574 Loss before income taxes $(43,576) $(30,179) $(111,991) (in thousands)