The Company is in the process of completing the valuations of a portion of the assets acquired and liabilities assumed; thus the allocation of the purchase price is subject to refinement.
As part of the Manulife group of companies, subsequent to the merger we reinsure portions of the risks we assume for our protection insurance products. The maximum amount of individual ordinary life insurance retained by us on any life is $20 million under an individual policy and $25 million under a second-to-die policy. As of January 1, 2001, we established additional reinsurance programs, which limit our exposure to fluctuations in life insurance claims for individuals for whom the net amount at risk is $3 million or more.
o On April 28, 2004, as a result of Manulife's acquisition of John Hancock, assets were marked to market in accordance with purchase accounting rules. The impact of the asset adjustment and related amortization was a reduction in yield of approximately 73 basis points for the year ended 2004 compared to 2003.
Partially offsetting the effects of these decreases to yields on investments was an increase in invested assets and a reduction in investment expenses. In 2003, weighted-average invested assets grew $6,787.3 million, or 11.9%, from the prior year. In addition, investment expenses were reduced $36.9 million in 2003 compared to the prior year. Included are reductions in corporate complex expenses and in depreciation expenses associated with the sale of the Company's home office real estate of $44.9 million.
manufacturing, bank & finance and utilities securities. The tables above show gross unrealized losses before amounts that are allocated to the closed block policyholders or participating pension contractholders. Of the $115.2 million of gross unrealized losses in the portfolio at December 31, 2004, $12.3 million was in the closed block and $6.7 million has been allocated to participating pension contractholders, leaving $96.2 million of gross unrealized losses after such allocations. The 2003 gross unrealized losses of $470.1 million included $413.3 million, or 87.9%, of gross unrealized losses concentrated in the utilities, manufacturing, oil and gas, transportation, and asset-backed and mortgage-backed securities. The tables above show gross unrealized losses before amounts that were allocated to the closed block policyholders or participating pension contractholders. Of the $470.1 million of gross unrealized losses in the portfolio at December 31, 2003, $61.8 million was in the closed block and $20.2 million was allocated to participating pension contractholders, leaving $388.1 million of gross unrealized losses after such allocations.
To assist in the comparability of our cash flows, the following discussion combines the predecessor period (January 1 through April 28, 2004) with the successor period (April 29 through December 31, 2004) to present combined cash flows for the year ended December 31, 2004.
The Company's ability to generate customer deposits in excess of withdrawals on universal life insurance and investment-type contracts is critical to our long-term growth. Withdrawals exceeded deposits by $2,993.3 million for the year ended December 31, 2004, and deposits exceeded withdrawals by $711.0 million and $3,494.0 million for the years ended December 31, 2003 and 2002, respectively.