(Dollars in thousands, except per share data) See accompanying notes to consolidated financial statements. THIS IS RGA. 2003 ANNUAL REPORT 48 TWELVE MONTHS ENDED DECEMBER 31, 2003 2002 2001 Revenues: Net premiums $2,643,163 $1,980,666 $1,661,762 Investment income, net of related expenses 465,579 374,512 340,559 Realized investment gains (losses), net 5,360 (14,651) (68,431) Change in value of embedded derivatives (net of amounts  allocable to deferred acquisition costs of $30,665 in 2003) 12,931 – – Other revenues 47,300 41,436 34,394 Total revenues 3,174,333 2,381,963 1,968,284 Benefits and Expenses: Claims and other policy benefits 2,108,431 1,539,464 1,376,802 Interest credited 179,702 126,715 111,712 Policy acquisition costs and other insurance expenses (excluding $30,665 allocated to embedded derivatives in 2003) 458,165 391,504 304,217 Other operating expenses 119,636 94,786 91,306 Interest expense 36,789 35,516 18,097 Total benefits and expenses 2,902,723 2,187,985 1,902,134 Income from continuing operations before income taxes 271,610 193,978 66,150 Provision for income taxes 93,291 65,515 26,249 Income from continuing operations 178,319 128,463 39,901 Discontinued operations: Loss from discontinued accident and health operations, net of income taxes (5,723) (5,657) (6,855) Income before cumulative effect of change in accounting principle 172,596 122,806 33,046 Cumulative effect of change in accounting principle, net of income taxes 545 – – Net income $ 173,141  $ 122,806 $ 33,046 Basic Earnings Per Share: Income from continuing operations $ 3.47 $ 2.60 $ 0.81 Discontinued operations (0.11) (0.11) (0.14) Cumulative effect of change in accounting principal 0.01 – – Net income $ 3.37  $ 2.49 $ 0.67 Diluted Earnings Per Share: Income from continuing operations $ 3.46  $ 2.59 $ 0.80 Discontinued operations (0.11) (0.12) (0.14) Cumulative effect of change in accounting principal 0.01 $ – – Net income $ 3.36 $ 2.47 $ 0.66 Dividends Declared Per Share $ 0.24 $ 0.24 $ 0.24 CONSOLIDATED STA TEMENTS OF INCOME