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## G RO WTH 

RGA’S GROWTH IN 2003 WAS EXCEPTIONAL IN SEVERAL WAYS. WE CONTINUED TO EXPAND OUR BASE ORGANICALLY AND STRENGTHEN OUR PRESENCE IN ALL OF OUR CORE MARKETS. FOR THE SECOND CONSECUTIVE YEAR OUR RE VENUE GROWTH EXCEEDED 20 PERCENT, EVEN EXCLUDING THE ALLIANZ TRANSACTION. THAT TRANSACTION, ON TOP OF STRONG ORGANIC GROWTH, ADDED SIGNIFICANTL Y TO RGA’S SIZE AND EARNINGS POWER. 

Several opportunities remain available in the marketplace as we look forward, and while we may not expect to find one as ideal as Allianz, we remain on the lookout for opportunities. Integrating Allianz business involves moving data onto our systems; this is already under way. We don’t expect to finalize this migration until the end of 2004, although much of it will take place in the first half of the year. 

In addition to the business growth experienced during the year, we also grew the capitalization of the company considerably. This occurred through, among other things, the capital issuance in the fourth quarter and also through strong natural growth in retained earnings. GAAP equity during 2003 increased by $725 million. 

The International Division, consisting of the Asia Pacific and Europe & South Africa operations, represents RGA’s fastest growing area. RGA is still a relative newcomer in these markets. In the past 10 years, however, we have carved out strong positions— even leading positions—in several of our chosen markets. We have considerable room to grow in these markets given our still-low base of in force premiums. RGA has established the necessary infrastructure and support for international expansion and has begun to turn investments into solid returns. 

Pre-tax profits for the International Division increased by a factor of four over the prior year. Some of this pickup resulted from favorable currency exchange comparisons, but real same-currency results have been ramping up dramatically as well. We expect the International Division to grow rapidly in the foreseeable future. 

RGA’s asset-intensive business continued its rapid growth track— not in the number of new contracts, but in terms of assets under management. Assets associated with this business climbed by 29 percent to $3.1 billion in 2003. While spreads were generally maintained on these portfolios, this business unit worked its way through a difficult credit cycle that affected the underlying portfolios during the year. We spent a considerable amount of effort adding to the infrastructure and management of this business in 2003, as we continue to build a solid contributor to RGA’s bottom line that is not correlated with our large mortality business. 

Growth has characterized RGA throughout its history. In our largest business—the U.S. mortality business—2003 was a strong new business year, even outside of the Allianz transaction. 

This reflects RGA’s vital position in a still-growing industry. 

