INTERNATIONAL OPERA TIONAL REVIEW 12 THIS IS RGA. 2003 ANNUAL REPORT HONG K ONG INDIA JA P AN MALA YSIA SOUTH AFRICA The SARS virus brought the Hong Kong economy to a near standstill in early 2003 and directly affected RGA’s business. However, SARS also served to increase public awareness of the importance of life insurance, which in turn has led to more  business opportunities for RGA. Life reinsurer market share is shifting in Hong Kong as RGA continues to demonstrate superior reinsurance expertise and customer service. RGA signed several important treaties in 2003, and in 2004 looks forward to further growth as the company continues to strengthen its reputation  by satisfying demand for high return, value-added products and services and innovative reinsurance solutions. In addition, RGA will continue to seek reinsurance opportunities in Greater China and other ASEAN markets. In late 2002 RGA received approval to open a liaison office  in Mumbai, India. In 2003, RGA India focused on establishing itself as an important new reinsurer, achieving its primary 2003 business objectives by converting interest into opportunity and signing treaties with prominent Indian life insurers. In addition, RGA was highly visible as a sponsor and participant in key industry events. Dependence on life reinsurance is still  moderate in India, but the market is rapidly growing. RGA is positioning itself as the reinsurer of choice and in 2004 will continue to focus on its key clients by providing value-added  services, developing its product base and identifying further growth opportunities that will establish RGA’s reputation as  the life reinsurance expert in India. of life insurance is currently reinsured in Japan. Competitors are steadily losing market share to RGA, and as a branch office RGA can now conduct marketing and underwriting activities locally, allowing it to provide even faster time service to clients, and  to further demonstrate its commitment to the Japanese life  insurance industry. Two thousand three was a milestone year in Japan as RGA,  after eight years of serving Japanese clients, became the first foreign-owned life reinsurer granted a license to conduct business in this country. RGA proved itself worthy of the distinction by  far exceeding revenue and income targets, and receiving nearly 16,000 facultative applications. A weak Japanese economy  continued to hinder industry growth, and less than one percent RGA’s joint venture company, Malaysian Life Reinsurance Group Berhad (MLRe), turned in a solid performance by surpassing both premium and facultative case targets for the third consecutive year. As in many other countries in which RGA operates, the financial rating downgrade of some competitors and the exit of others led to increased opportunity for RGA and MLRe in 2003. MLRe sees a continued increase in demand for simple life  products to support the emerging bancassurance model, and  in 2004 will continue to provide expert reinsurance services to Malaysia while exploring and building upon business in the Philippines and Thailand. market saw increased competition in 2003, and RGA strove to remain consistent with its superior service during this time. Opportunities arose for reinsurers to provide aggressive product development support for new rider benefits, and 2004 should see this continue. RGA will strive to produce superlative products and will continue to focus on facultative underwriting, individual life mortality and riders and group business. RGA’s operations in Cape Town and Johannesburg saw continued growth in 2003, meeting most financial targets and showing a 40 percent growth in revenue. After just five years, RGA Life Reinsurance Company of South Africa Limited has emerged as  a life reinsurance frontrunner, exerting mounting influence over market practice. The amount of reinsurance purchased continues to increase despite a slow growing South African insurance market and decreasing interest in insurance investment products. The