Reinsurance Group of America, Incorporated – Q3 2020
Financial Results and Business Highlights
On November 5, 2020, Reinsurance Group of America, Incorporated (NYSE: RGA) reported
financial results for the third quarter of 2020. “We are very pleased with our third quarter
results and we continue to be proud of the resilience of our business in this challenging
environment,” said Anna Manning, President and Chief Executive Officer. “While weexperienced a material level of COVID-19 claims, the impact was manageable, and many ofour segments reported strong results. Excluding COVID-19 claim costs, our U.S. individual
mortality performance was very favorable in the quarter driven by positive large claims
volatility.
“Estimated COVID-19 individual mortality claim costs in the U.S. were $100 million, at the low
end of our range, while COVID-19 claim costs elsewhere totaled $40 million. This waspartially offset by an estimated $30 million of favorable longevity experience, which isbelieved to be COVID-19 related.
“Our balance sheet remains strong, and we ended the quarter with excess capital of
approximately $1.5 billion. While there remains uncertainty as to the ongoing and ultimate
impact of COVID-19 on our business, we believe that our strong financial condition andglobal business platform position us to successfully manage through this period.”
The board of directors declared a regular dividend of $0.70, payable December 3 toshareholders of record as of November 17, 2020.
Q3 2020 Financial Results*••••

Net income for the quarter totaled $213 million, or $3.12 per diluted share, versus net
income of $263 million, or $4.12 per diluted share, in the prior-year quarter
Adjusted operating income** totaled $239 million, or $3.51 per diluted share, comparedwith $256 million, or $4.02 per diluted share, the year before
Consolidated net premiums totaled $2.8 billion, up 1 percent from last year’s third quarter,with favorable net foreign currency effect of $11 million
Book value per share was $194.49, including accumulated other comprehensive income(AOCI), and $131.36 excluding AOCI*** All figures in U.S. dollars.
** See “Use of Non-GAAP Financial Measures” at end of this document.

COVID-19-Related Key Messages*:
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RGA’s Q3 results demonstrated continued resilience of the company’s globalfranchise‒ Adjusted operating EPS of $3.51** were strong even after absorbing the impactof COVID-19‒ Strong results from many key segments and businesses: EMEA, Asia, U.S.,
and Latin America Asset-Intensive; Australia was profitable‒ Favorable U.S. Individual Mortality experience, excluding COVID-19‒ Strong balance sheet, well-positioned to weather a range of scenarios; excess
capital of $1.5 billion with ample liquidity
Q3 COVID-19 claim costs were at the low end of our internal model range$100 million of estimated COVID-19 U.S. individual mortality claim costs$40 million of estimated COVID-19 claim costs in all other operations
Low level of investment impairments tracking below the low end of our internal modelrange
Favorable longevity experience* All figures in U.S. dollars.
** See “Use of Non-GAAP Financial Measures” at end of this document.

Additional News and Highlights from Q3 2020
•In August, RGA hosted its eighth annual Fraud Conference, a leading industry
gathering on this increasingly important topic; the 2020 event, which was held virtually
this year, was the largest yet with more than 800 registrations•

On September 9, RGA announced the appointment of Stephen T. O’Hearn and Ng
Keng Hooi to its board of directors; Mr. O’Hearn began his service on October 1, 2020;
Mr. Ng will join the RGA Board mid-2021 following the completion of a previous postretirement commitment•

On September 24, RGA was named “Life Reinsurer of the Year” at the2020 Reactions North America Awards for the third consecutive year; the awards
honor the achievements of companies and individuals who help raise standards
across the insurance industry

Financial strength ratings for RGA’s principal operating subsidiaries remained unchanged.
RGA
RGA
RGA Life
RGA
RGA Global
RGA
RGA Atlantic
Reinsurance Americas Reinsurance International Reinsurance Reinsurance Reinsurance
Company Reinsurance Company of Reinsurance Company, Company ofCompany
Company,CanadaCompany
Ltd.
Australia
Ltd.
Ltd.
dac
Ltd.

Omnilife
Insurance
Company
LimitedRGA
Reinsurance
Company(Barbados)Ltd.

S&P GlobalRatings

AA-AA-AA-

AA-

AA-AA-not rated

A+AA-A.M. Best
Company

A+A+A+

not rated

not rated

not ratedA+

not rated

not rated

Moody’sInvestorsServiceA1

not rated

not rated

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 theleading global providers of life reinsurance and financial solutions, with approximately $3.4trillion of life reinsurance in force and assets of $82.1 billion as of September 30, 2020.
Founded in 1973, RGA today is recognized for its deep technical expertise in risk and capitalmanagement, innovative solutions, and commitment to serving its clients. With headquartersin St. Louis, Missouri, and operations around the world, RGA delivers expert solutions inindividual life reinsurance, individual living benefits reinsurance, group reinsurance, healthreinsurance, facultative underwriting, product development, and financial solutions. To learn
more about RGA and its businesses, visit the company’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 awards 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 well 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 with 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 weighted
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 awards 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 website at www.rgare.com
in the “Earnings” section.

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

Net income (loss)$
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, net
Included in interest credited
DAC offset, net
Investment (income) loss on unit-linked variable annuities
Interest credited on unit-linked variable annuities
Interest expense on uncertain tax positions
Non-investment derivatives and other
Uncertain tax positions and other tax related items
Adjusted operating income$

Three Months Ended September 30,
2019
2020
Diluted
DilutedEarnings Per
Earnings Per
Share
Share
213
$
3.12$
263
$
4.12
13

0.20

(61)

(0.95)(1)(0.01)

--

(69)
562
1(1)
1
1
14
239

(1.01)
0.07
0.91
0.01
(0.01)
0.01
0.01
0.21
3.51

2628(10)
(9)
97
3256

0.41
0.44(0.16)(0.14)
0.14
0.11
0.05
4.02$

$

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

At September 30,2020
2019$194.49$184.06(2.51)
66.86(1.22)$131.36(2.51)
55.46(0.91)$132.02$