INTERNATIONAL OPERA TIONAL REVIEW SOUTH K OREA SP AIN T AIW AN UNITED KINGD OM OTHER EUROP EAN OPERATIONS THIS IS RGA. 2003 ANNUAL REPORT 13 RGA to increase participation in life reinsurance business as it continues to unfold in these and other European markets. RGA plans to continue European business development in 2004, focusing on core strengths in product development, competitive pricing and underwriting expertise. In addition to serving clients in its five Europe & South Africa locations, RGA’s International Division continued marketing and business development activities in continental Europe by adding new treaty clients in both Italy and the Netherlands. Italy is a high-savings country and the insurance market continues to grow and develop. Recent initiatives have laid a solid foundation for In 2003, RGA established its credibility as a long-term player  in the U.K. and expanded its client base significantly. Its client roster now includes the top four High Street banks and two of the leading supermarket chains. More importantly, RGA worked to ensure it had the infrastructure to deliver on its promises to clients and to serve client needs by strengthening its administration and analytical capabilities. In 2003 RGA moved away from the price-only competition of the independent agent market and in 2004 will see over half its new business derived from bancassurance distribution. RGA believes that a market shift away from guaranteed critical illness will open up new opportunities on which it can capitalize, including greater separation of loan and family protection markets, leading to more precise targeting and risk analysis. RGA will continue to focus efforts on adding more value to clients’ business in 2004. RGA’s Taiwan office had a successful 2003, meeting profit  and revenue targets and experiencing solid growth by securing new clients and strengthening its reputation as an expert and committed reinsurer. The Taiwan reinsurance market witnessed a great deal of regulatory activity in 2003, including the enactment of an Appointed Actuary system, and new Risk-Based Capital (RBC) regulations that require reinsurers to maintain minimum levels of capital. Two thousand three was also the first full year that ceding companies were not required to cede business to the government-owned reinsurer. This change resulted in a positive and rapid market shift in business. A low interest rate caused the Taiwan insurance market to focus on savings products in 2003. RGA sees this continuing in 2004, and will use its expertise  to create products that meet this demand. In addition, RGA  will continue to educate the industry on the benefits associated  with reinsurance. RGA Reinsurance Company Oficina de Representación spent most of 2003 focused on further building the RGA brand and servicing key clients. RGA met with great success in 2003, signing treaties with seven new companies and increasing participation in or signing new treaties with 10 existing clients. RGA now does business with 10 of the top 15 life insurance companies  in Spain. RGA Spain has been monitoring market development in Portugal in recent years, and in 2003 signed its first treaties with two important companies in that country. In 2004 RGA  will concentrate on servicing key clients and provide product development expertise in supporting bancassurance, which  generates 75 percent of new life insurance sales in Spain. At the end of its first full year of operation, RGA’s Seoul Representative Office has earned a distinguished reputation  as a leading life reinsurer with knowledge and expertise beyond that of its competitors. RGA exceeded revenue goals in 2003 thanks to significant growth in critical illness sales. Credit for RGA’s success can be attributed to a staff of local industry experts combined with global expertise available to support this operation. RGA plans to submit a branch office application in 2004, approval of which will further solidify RGA’s commitment to the South Korean reinsurance market. Reinsurance is still used sparingly in South Korea, and in 2004 RGA will work to remove barriers and actively share its knowledge and expertise  on the advanced use of reinsurance and competitive facultative underwriting.