NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company makes mortgage loans on income producing properties, such as apartments, retail and office buildings, light warehouses and light industrial facilities. Loan to value ratios at the time of loan approval are 75 percent or less for domestic mortgages. The  distribution of mortgage loans by property type is as follows (in thousands): THIS IS RGA. 2003 ANNUAL REPORT 61 2003 2002 Carrying Percentage Carrying Percentage Value Of Total Value Of Total Property type: Apartment $ 56,581 11.80% $ 15,080 6.63% Retail 98,597 20.57% 61,395 26.99% Office building 171,142 35.71% 89,765 39.46% Industrial 147,617 30.80% 59,279 26.05% Other commercial 5,375 1.12% 1,973 0.87% Total $479,312 100.00% $227,492 100.00% Fair Unrealized Value Losses Investment grade securities: Commercial and industrial $ 381,730 $ 7,553 Public utilities 126,550 2,517 Asset-backed securities 6,835 295 Canadian and Canadian  provincial governments 32,734 1,276 Foreign governments 38,158 1,303 Mortgage-backed securities 144,263 511 Finance 295,764 2,733 U.S. government and agencies 79,549 4,059 Investment grade securities 1,105,583 20,247 Non-investment grade securities: Commercial and industrial 654 46 Public utilities 2,945 50 Non-investment grade securities 3,599 96 Total $1,109,182 $20,343 At December 31, 2003 Gross Unrealized % of Losses Total Less than 20% $20,343 100% 20% or more for less than six months – 0% 20% or more for six months or greater – 0% Total $20,343 100% The following table presents the total gross unrealized losses for 425 fixed maturity securities where the estimated fair value had declined and remained below amortized cost by the indicated amount (in thousands): While all of these securities are monitored for potential impairment, the Company’s experience indicates that the first two categories do not present as great a risk of impairment, and often, fair values recover over time. These securities have generally been adversely affected by overall economic conditions.  All gross unrealized losses have been outstanding less than 12 months. The following table presents the fair value and total gross unrealized losses for 425 fixed maturity securities as of December 31, 2003, by class of security, and broken out between investment and non-investment grade securities (in thousands): Approximately $2.5 million of the total unrealized losses were related to securities issued by the airline, automotive, telecommunication, and utility sectors. These securities have generally been adversely affected by overall economic conditions. The Company believes that the analysis of each such security whose price has been below market indicates that the financial strength, liquidity, leverage, future outlook and/or recent management actions support the view that the security was not other-than-temporarily impaired as of December 31, 2003.