Reinsurance Group of America, Incorporated – Q3 2018
Financial Results and Business Highlights
On October 25, 2018, Reinsurance Group of America, Incorporated (NYSE: RGA) reported financial
results for the third quarter of 2018. “This was a very strong quarter for us, with this quarter’s
performance offsetting some softness in the first two quarters of the year,” said Anna Manning,President and Chief Executive Officer, RGA. “I want to reiterate a few key points that this quarter’s
results reinforce. First, our global operating platform, which is diversified by both geography andproduct, continues to serve us well. Second, the nature of our business is such that we expect shortterm volatility by segment, but we expect this volatility to even out over longer periods of time. Finally,
we continue to use a balanced approach to effectively manage our capital over time, and thisquarter’s deployment and share repurchases demonstrate our discipline toward this end.
“Highlights for the quarter include a strong result for our U.S. Individual Mortality business due to very
favorable mortality experience, and strong performances from EMEA and Asia. Strength in theseareas more than offset the unfavorable experience in the U.S. Group business and in Australia.
“We deployed $190 million of our excess capital into in-force and other transactions, and werepurchased $109 million of shares, bringing year to date deployment and repurchases to $280
million and $259 million, respectively. We ended the quarter with an excess capital position of
approximately $1.1 billion, down from the previous quarter.”
The board of directors declared a regular dividend of $0.60, payable November 27 to shareholders ofrecord as of November 6.
Q3 2018 Financial Results*••••

Net income for the quarter totaled $301.2 million, or $4.68 per diluted share, versus $227.6 million,or $3.47 per diluted share, in the prior-year quarter.
Adjusted operating income** totaled $259.4 million, or $4.03 per diluted share, compared with
$226.0 million, or $3.44 per diluted share, the year before.
Consolidated net premiums totaled $2.6 billion, up 3 percent from last year’s third quarter of $2.5billion, with adverse net foreign currency effects of $33.4 million.
Book value per share was $136.29, including accumulated other comprehensive income (AOCI),and $123.37 excluding AOCI.*** All figures in U.S. dollars.
** See “Use of Non-GAAP Financial Measures” at end of this document.

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Q3 2018 News and Highlights•On August 2, RGAX announced the acquisition of SALT Associates, a disability and life
insurance consulting firm providing specialized claims management solutions. Based in Maine,
SALT operates as part of RGAX’s LOGiQ3 group of insurance services companies andincreases RGA’s ability to serve clients across the insurance value chain.

•On September 12, RGA celebrated 10 years as an independent company. On that date in
2008, MetLife's public offering of RGA stock was completed — marking the first time in RGA's
history that it was fully independent of any majority parent.

•On September 12, RGA was named to the Forbes 2018 Best Regarded Companies list,
ranking #149 of 250 global companies listed. The list is compiled through a survey of 15,000
people from 60 countries evaluating areas such as trustworthiness, social conduct,
performance of the company's product or service, and the company as an employer.

•RGA was later named to Forbes magazine’s 2018 World’s Best Employers list, ranking #97 of
500 companies listed. Organizations are selected for the list based on internal perception
gathered from recommendations from their own employees and public perception from otherindustry professionals.

•On September 24, CEO Anna Manning was named to Fortune magazine’s “50 Most PowerfulWomen” list for the second consecutive year, moving up from #44 to #36. The list is compiledby Fortune editors who consider four criteria: the size and importance of the woman'sbusiness in the global economy, the health and direction of the business, the arc of her career,and social and cultural influence.

•On September 27, RGAX partner Cardiogram announced the launch of accidental death
insurance coverage for wearable technology users via the Cardiogram app. The coverage,
offered in partnership with Amica Life, is the first market introduction from Greenhouse Life
Insurance Company, RGAX’s life and disability insurer custom-designed to partner withinsurers and entrepreneurs to accelerate innovation in the life insurance industry.

•On September 27, RGA was named “Life Reinsurer of the Year” at the 2018 Reactions North
America Awards. Langhorne Re, a global reinsurer targeting large in-force life and annuity
blocks which was launched in January 2018 by RGA and RenaissanceRe Holdings Ltd., wasnamed “Launch of the Year.” The awards honor the achievements of companies andindividuals who help to raise standards across the insurance industry.

2

Financial strength ratings for RGA’s principal operating subsidiaries remained unchanged, and areshown in the following chart:
RGA
Reinsurance
Com pany

RGAAm ericas
Reinsurance
Com pany,Ltd.

RGA Life
Reinsurance
Com pany ofCanada

RGAInternational
Reinsurance
Com pany dac

RGA Global
Reinsurance
Com pany,Ltd.

RGA
Reinsurance
Com pany ofAustralia
Lim ited

RGA Atlantic
Reinsurance
Com pany Ltd.

S&P GlobalRatings

AA-AA-

AA-

AA-

AA-

AA-

(not rated)

A.M. Best
Company

A+A+A+(not rated)(not rated)(not rated)

A+Moody’sInvestorsServiceA1(not rated)(not rated)(not rated)(not rated)(not rated)(not rated)

For more complete information and the full text of RGA’s announcement of third quarter financial
results, please refer to RGA’s Investor Relations site at www.rgare.com.
About RGA
Reinsurance Group of America, Incorporated (RGA), a Fortune 500 company, is among the leading
global providers of life reinsurance and financial solutions, with approximately $3.3 trillion of life
reinsurance in force and assets of $63.0 billion as of September 30, 2018. Founded in 1973, RGA
today is recognized for its deep technical expertise in risk and capital management, innovative
solutions, and commitment to serving its clients. With headquarters in St. Louis, Missouri, andoperations around the world, RGA delivers expert solutions in individual life reinsurance, individualliving benefits reinsurance, group reinsurance, health reinsurance, facultative underwriting, productdevelopment, and financial solutions. To learn more about RGA and its businesses, visit thecompany’s website at www.rgare.com.
** Use of Non-GAAP Financial Measures: RGA uses a non-GAAP financial measure called adjusted operating income as a basis foranalyzing financial results. This measure also serves as a basis for establishing target levels and aw ards under RGA’s management
incentive programs. Management believes that adjusted operating income, on a pre-tax and after-tax basis, better measures the ongoingprofitability and underlying trends of the company’s continuing operations, primarily because that measure excludes the effect of net
investment related gains and losses, as w ell as changes in the fair value of certain embedded derivatives and related deferred acquisition
costs. These items can be volatile, primarily due to the credit market and interest rate environment and are not necessarily indicative of theperformance of the company’s underlying businesses. Additionally, adjusted operating income excludes any net gain or loss fromdiscontinued operations and the cumulative effect of any accounting changes, which management believes are not indicative of thecompany’s ongoing operations. The definition of adjusted operating income can vary by company and is not considered a substitute for
GAAP net income.
Book value per share excluding the impact of AOCI is a non-GAAP financial measure that management believes is important in evaluating
the balance sheet in order to ignore the effects of unrealized amounts primarily associated w ith mark-to-market adjustments on investments
and foreign currency translation.
Adjusted operating income per diluted share is a non-GAAP financial measure calculated as adjusted operating income divided by w eighted
average diluted shares outstanding. Similar to adjusted operating income, management believes this non-GAAP financial measure betterreflects the ongoing profitability and underlying trends of the Company’s continuing operations. It also serves as a basis for establishingtarget levels and aw ards under RGA’s management incentive programs.
Reconciliations from GAAP net income, book value per share, and net income per diluted share are provided in the accompanying tables.
Additional financial information can be found in the Quarterly Financial Supplement on RGA’s Investor Relations w ebsite at www.rgare.com
in the “Earnings” section.

3REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Adjusted Operating Income(Dollars in thousands, except per share data)(Unaudited)

Net income$Reconciliation to adjusted operating income:Capital (gains) losses, derivatives and other, included ininvestment related gains/losses, net
Capital (gains) losses on funds withheld, included ininvestment income, net of related expenses
Embedded derivatives:
Included in investment related gains/losses, netIncluded in interest credited
DAC offset, net
Investment (income) loss on unit-linked variable annuities
Interest credited on unit-linked variable annuities
Non-investment derivatives
Effects of the Tax Cut and Jobs Act of 2017
Adjusted operating income$Three Months Ended September 30,
2018
2017
Diluted
DilutedEarnings Per
Earnings Per
Share
Share
$3.47
301,199$
4.68$ 227,591

41,5480.65(2,254)(0.05)

485

0.01(4,838)(0.07)(23,741)(1,266)(86)(1,898)1,898(437)(58,285)
259,417(0.37)(0.02)(0.03)
0.03(0.01)(0.91)
4.03(10,946)(888)
17,450(1,609)1,609(67)$ 226,048(0.17)(0.01)
0.27(0.02)
0.02
3.44

$

$

Reconciliation of Book Value Per Share to Book Value Per ShareExcluding Accumulated Other Comprehensive Income ("AOCI")Book value per share outstanding
Less effect of AOCI:
Accumulated currency translation adjustments
Unrealized appreciation of securities
Pension and postretirement benefitsBook value per share outstanding, before impact of AOCI$$

At September 30,
2018
2017
136.29$125.79(1.90)
15.61(0.79)
123.37$(1.62)
27.51(0.64)
100.544