ODYSSEY RE HOLDINGS CORP. CONSOLIDATED BALANCE SHEETS December 31, 2004 2003 (In thousands, except share amounts) ASSETS Investments and cash: Fixed income securities, at fair value (amortized cost  $2,478,614 and $1,605,378, respectively) $ 2,505,630  $ 1,597,688 Equity securities:  Common stocks, at fair value (cost $736,212 and $376,215, respectively)  869,871 447,700 Common stocks, at equity  165,507 117,489 Short-term investments, at cost which approximates fair value  213,403 218,208 Other invested assets  149,075 267,504 Cash and cash equivalents  1,156,447 1,588,659 Cash collateral for borrowed securities  176,518 — Total investments and cash  5,236,451 4,237,248 Investment income due and accrued  39,609 21,668 Reinsurance balances receivable  550,198 499,680 Reinsurance recoverables on loss payments  89,912 83,448 Reinsurance recoverables on unpaid losses  1,092,082 1,058,623 Prepaid reinsurance premiums  93,774 110,881 Funds held by ceding insurers  192,346 124,464 Deferred acquisition costs  171,083 168,289 Federal and foreign income taxes recoverable  102,298 71,183 Other assets  138,022 84,572 Total assets $ 7,705,775 $ 6,460,056 LIABILITIES Unpaid losses and loss adjustment expenses $ 4,228,021 $ 3,400,277 Unearned premiums 832,305 819,840 Reinsurance balances payable 122,182 121,457 Funds held under reinsurance contracts 179,867 199,763 Debt obligations 376,040 376,892 Obligation to return borrowed securities 56,191 — Other liabilities 325,669 151,592 Total liabilities 6,120,275 5,069,821 STOCKHOLDERS’ EQUITY Preferred stock, $0.01 par value; 200,000,000 shares  authorized; 0 shares issued — — Common stock, $0.01 par value; 500,000,000 shares  authorized; 65,142,857 shares issued 651 651 Additional paid-in capital 794,055 793,586 Treasury stock, at cost (387,879 and 146,691 shares, respectively) (9,426) (2,549) Unearned compensation (4,977) (3,439) Accumulated other comprehensive income, net of deferred income taxes 136,849 112,430 Retained earnings 668,348 489,556 Total stockholders’ equity 1,585,500 1,390,235 Total liabilities and stockholders’ equity $ 7,705,775 $ 6,460,056 See accompanying notes. 44