Reinsurance Group of America, Incorporated – Q2 2019
Financial Results and Business Highlights
On July 29, 2019, Reinsurance Group of America, Incorporated (NYSE: RGA) reported financial results for thesecond quarter of 2019. “This was a solid quarter for us, with a number of positives,” said Anna Manning,President and Chief Executive Officer. “Income slightly exceeded our expectations and we experienced strong
momentum both from organic growth and in-force transactions. The benefits from our global operating platform
helped to deliver diverse earnings in the quarter, as strong results in U.S. Financial Solutions, EMEA, andCanada offset some modest weakness elsewhere.
“This quarter we deployed $185 million of capital into a number of in-force and other transactions across arange of product areas and geographies, bringing our year to date total to $236 million. We ended the quarterwith an excess capital position of approximately $1.0 billion.
“We are optimistic about our business, and in recognition of our ongoing earnings power, the board increased
the common stock dividend by 17%, marking the tenth straight year of double digit percentage increases. RGA
is well-positioned for expanding opportunities, we have a proven strategy and proven track record of execution,
and we expect to continue to produce attractive financial returns.”
The quarterly dividend will be payable August 29 to shareholders of record as of August 8, 2019.
Q2 2019 Financial Results*••••

Net income for the quarter totaled $202.7 million, or $3.18 per diluted share, versus $204.4 million, or $3.13
per diluted share, in the prior-year quarter.
Adjusted operating income** totaled $210.8 million, or $3.31 per diluted share, compared with $202.1
million, or $3.10 per diluted share, the year before.
Consolidated net premiums totaled $2.8 billion, up 7% from last year’s second quarter of $2.6 billion, withadverse net foreign currency effects of $60.0 million.
Book value per share was $170.64 including accumulated other comprehensive income (AOCI), and$128.54 excluding AOCI.**

Q2 2019 News and Highlights•RGA announced the completion of a $2.9 billion asset-intensive transaction with Horace Mann Life
Insurance Company to reinsure a seasoned block of U.S. annuity policies that Horace Mann willcontinue to service and administer. Horace Mann specializes in providing America's educators andschool employees with insurance and retirement solutions.

•RGA partnered with MIB Group, Inc., the industry's most trusted and secure resource for data-driven
risk management services, to launch an electronic health record underwriting solution. By combining
MIB’s data network and RGA’s Digital Health Data scoring, carriers will benefit from the synergies of a
new data source and a powerful risk assessment tool for use in underwriting.

•Ceding companies most often identified RGA as best in class overall on NMG Consulting’s 2018 Global
Life & Health Reinsurance Study. RGA was also most identified best in class for mortality, criticalillness, and medical.

* All figures in U.S. dollars.
** See “Use of Non-GAAP Financial Measures” at end of this document.

Financial strength ratings for RGA’s principal operating subsidiaries remained unchanged:
RGA
RGA
RGA
RGA Life
RGA Global
RGA Atlantic
RGAAmericas
International
Reinsurance
Reinsurance
Reinsurance
Reinsurance
Reinsurance Reinsurance
Reinsurance
Company ofCompany ofCompany,CompanyCompany
Company,Company
Australia
CanadaLtd.
Ltd.
Ltd.
dac
LimitedOmnilife
Insurance
Company
LimitedS&P GlobalRatings

AA-AA-AA-AA-AA-

AA-(not rated)

A+A.M. BestCompany

A+A+

A+

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

Moody’sInvestorsServiceA1(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 first quarter financial results, pleaserefer 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 $3.4 trillion of life reinsurance in force
and assets of $72.0 billion as of June 30, 2019. 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, and operations around the world, RGA delivers expert solutions inindividual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance,
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.

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 June 30,
2019
2018
170.64$135.09(1.96)
44.87(0.81)
128.54$(2.23)
18.82(0.81)
119.31REINSURANCE 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, 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
Uncertain tax positions and other tax related items
Adjusted operating income$Three Months Ended June 30,20192018
Diluted
DilutedEarnings Per
Earnings Per
Share
Share
202,698$
3.18$ 204,374$
3.13(17,719)(0.27)

29,195

0.45

(389)

(0.01)(10,349)(0.16)

10,098
14,646(3,199)(1,801)
1,801
2,158
9
2,544
210,846

0.16
0.23(0.05)(0.03)
0.03
0.03
0.04
3.31

(19,062)447
1,386(3,260)
3,260
377(4,314)$ 202,054(0.29)
0.01
0.02(0.05)
0.05
0.01(0.07)
3.10$$