content_image/2626.jpg content_image/2630.jpg
All the Company’ mortgage loans are amortizing loans. As of December 31, 2003 and 2002, the Company’s mortgage loans were distributed as follows (in thousands): 

<img src='content_image/2626.jpg'>

Substantially all mortgage loans are performing and no valuation allowance had been established as of December 31, 2003 and 2002. 

The maturities of the mortgage loans are as follows (in thousands): 

<img src='content_image/2630.jpg'>

Company’s investments as of December 31, 2003 and 2002, respectively. These policy loans present no credit risk because the amount of the loan cannot exceed the obligation due the ceding company upon the death of the insured or surrender of the underlying policy. The provisions of the treaties in force and the underlying policies determine the policy loan interest rates. Because policy loans represent premature distributions of policy liabilities, they have the effect of reducing future disintermediation risk. In addition, the Company earns a spread between the interest rate earned on policy loans and the interest rate credited to corresponding liabilities. 

