Reinsurance Group of America, Incorporated – Q2 2020
Financial Results and Business Highlights

On August 4, 2020, Reinsurance Group of America, Incorporated (NYSE: RGA) reported
financial results for the second quarter of 2020. “We would like to express our heartfelt
sympathy to all who are suffering from the devastating effects of the pandemic,” said Anna
Manning, President and Chief Executive Officer, RGA. “The health and safety of RGA's
employees and their families continue to be a top priority.
“We did experience a material level of excess mortality claims in the U.S. that we believe tobe COVID-19 related; however, COVID-19 claims from the rest of the world were relatively
modest. While our operating results were negatively impacted by the various effects of
COVID-19, most of our segments reported results that were in line with or better thanexpectations. Our morbidity experience in all key markets was favorable and our Global
Financial Solutions results were very strong. We were pleased with the resilience of ourbusiness in this challenging environment.
“During the quarter we took measured and proactive action to raise additional capital tofurther strengthen our balance sheet, and we ended the quarter with excess capital ofapproximately $1.4 billion. With our strong balance sheet and diversified global platform, webelieve that our global business is well positioned to successfully manage through this periodof uncertainty.”
The board of directors declared a regular dividend of $0.70, payable September 1 toshareholders of record as of August 14, 2020.
Q2 2020 Financial Results*••••

Net income for the quarter totaled $158 million, or $2.48 per diluted share, versus netincome of $202 million, or $3.18 per diluted share, in the prior-year quarter.
Adjusted operating income** totaled $87 million, or $1.36 per diluted share, comparedwith $211 million, or $3.31 per diluted share, the year before.
Consolidated net premiums totaled $2.8 billion, up 1 percent from last year’s secondquarter, with adverse net foreign currency effects of $45 million.
Book value per share was $184.78, including accumulated other comprehensive income(AOCI), and $128.82 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*:


RGA’s Q2 COVID-19 experience was significant but manageable given the strength ofthe underlying earnings‒ $240 million of excess U.S. individual mortality claim costs are believed to berelated to COVID-19‒ $60 million of excess claim costs in all other operations are believed to berelated to COVID-19, primarily in the U.K. and CanadaInvestment performance and mortality impacts are tracking better than our previously
discussed COVID-19 scenarios
Excess capital of $1.4 billion reflects additional capital raised, net income, andnominal capital deployment into inforce transactions
RGA's results demonstrated the resilience of RGA's global franchise
Q2 Adjusted operating income** per share of $1.36‒ Estimated COVID-19 claim costs of $300 million‒ Segment results, other than U.S. and Latin America Traditional, were generally
in line with or better than expectations‒ Australia was break-even
Q2 investment results reflect‒ Impairments of $22 million‒ Variable investment income below average run rate
‒ Non-spread portfolio yield of 4.07%, new money rate of 3.57%
We believe our balance sheet is strong, well-positioned to weather a range ofscenarios* All figures in U.S. dollars.
** See “Use of Non-GAAP Financial Measures” at end of this document.

Additional News and Highlights from Q2 2020•

RGA announced in April that the RGA Foundation is donating $1.5 million in support of
COVID-19 relief efforts, specifically providing grants to support programs assisting
healthcare professionals and frontline workers, as well as other individuals impacted
directly by COVID-19.

•The Geneva Association, an insurance industry think tank, announced the election ofRGA President and CEO Anna Manning to its board of directors. Anna was electedalongside two additional new members, Michael Khalaf, President and CEO ofMetLife, and John Neal, CEO of Lloyd's of London. Anna has been a Geneva
Association member since 2017. The appointments took effect June 10.

•On June 18, RGA announced that the Irish Data Protection Commission approved
RGA’s Controller and Processor Global Binding Corporate Rules (BCRs), making
RGA the first reinsurer to receive BCR approval as both a controller and processor ofdata since the General Data Protection Regulation went into effect in 2018.

•RGAX subsidiary TAI (Tindall Associates, Inc.) announced a new partnership with
LIMRA and the Society of Actuaries (SOA) to conduct an experience study comparing
individual life mortality involving COVID-19. The experience study will make use of theindividual life insurance data stored in the TAI Reinsurance Administration system,
which includes data from more than 90% of the top 50 life insurers in North America.

Financial strength ratings for RGA’s principal operating subsidiaries remained unchanged,
and are shown in the following chart:
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,Canada
CompanyLtd.
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 ratednot 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 second 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 $3.5
trillion of life reinsurance in force and assets of $80.7 billion as of June 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, 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.

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 otherUncertain tax positions and other tax related items
Adjusted operating income$

Three Months Ended June 30,2020
2019
Diluted
DilutedEarnings PerEarnings PerShare
Share
158$
2.48$
202
$
3.18
23

0.35

(16)

(0.25)(2)(0.03)(1)(0.02)

(85)
6(16)
(12)
12
3
3
(3)
87

(1.33)
0.09(0.25)(0.19)
0.19
0.05
0.05
(0.05)
1.36

1114(3)
(3)
32
2
211

0.17
0.22
(0.05)(0.05)
0.05
0.03
0.03
3.31

$

$

$

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 AOCIAt June 30,2020
2019$184.78$170.64(3.09)
60.19(1.14)$128.82(1.96)
44.87(0.81)$128.54