Reinsurance Group of America, Incorporated – Q1 2019
Financial Results and Business Highlights
On April 29, 2019, Reinsurance Group of America, Incorporated (NYSE: RGA) reported financial
results for the first quarter of 2019. “This was a good quarter for us, as income exceeded ourexpectations and we experienced strong momentum in terms of organic growth and in-force
transactions,” said Anna Manning, President and Chief Executive Officer, RGA. “We continued tobenefit from earnings diversity that comes with our global operating platform, as strong results in Asia
and Canada more than offset some modest weakness elsewhere.
“We executed a number of in-force and other transactions across a range of product areas andgeographies, putting to work $50 million of capital. We also repurchased $50 million of shares, andwe ended the quarter with an excess capital position of approximately $0.9 billion.
“We are off to a good start in 2019, and we remain optimistic about our business overall. Our organic
growth opportunities remain strong, the transaction pipeline remains very active, and we expect tocontinue to produce attractive financial returns.”
The board of directors declared a regular dividend of $0.60, payable May 30 to shareholders of record
as of May 9, 2019.
Q1 2019 Financial Results*••••

Net income for the quarter totaled $169.5 million, or $2.65 per diluted share, versus $100.2 million,
or $1.52 per diluted share, in the prior-year quarter.
Adjusted operating income** totaled $167.2 million, or $2.61 per diluted share, compared with
$105.7 million, or $1.61 per diluted share, the year before.
Consolidated net premiums totaled $2.7 billion, up 6 percent from last year’s fourth quarter of $2.6
billion, with adverse net foreign currency effects of $78.8 million.
Book value per share was $154.61, including accumulated other comprehensive income (AOCI),
and $126.38 excluding AOCI.**

Q1 2019 News and Highlights•

For the eighth consecutive year, RGA was ranked #1 on NMG Consulting’s 2018 Global AllRespondent Business Capability Index (BCI), based on feedback from insurance executives inmore than 50 countries.

•In 2018, RGA also ranked #1 on NMG’s All Respondent BCI in Canada, Germany, Indonesia,Italy, Malaysia, Mexico, Philippines, Portugal, Singapore, South Africa, South Korea, Taiwan,Thailand, and the United States (group life and disability), as well as in regional aggregates inAsia, Southeast Asia, EMEA, and Central and Eastern Europe.

•RGA announced the completion of a transaction with The Manufacturers Life Insurance
Company (Manulife) to reinsure longevity risk from an in-force block of Canadian group payoutannuities. In aggregate, RGA Canada will reinsure the longevity risk in respect ofapproximately 45,000 annuitants.

•RGA’s Managed Care Stop Loss Turnkey solution for the U.S. group health insurance market
launched on January 1, 2019. The innovative solution enables healthcare clients to enter thestop loss market and assists them in developing the resources and capabilities to achieve
long-term success.

•RGA announced that it has received another three-year accreditation from the National
Committee for Quality Assurance (NCQA) for RGA’s ROSEBUD® Perinatal and Neonatal
Case Management programs. This is the second consecutive NCQA Case Management
accreditation ROSEBUD has earned.

•RGA appointed Steven C. Van Wyk to its Board of Directors effective February 1, 2019. Mr.
Van Wyk is Chief Information Officer and Head of Technology & Innovation at PNC FinancialServices Group, Inc. (PNC) in Pittsburgh. The addition of Mr. Van Wyk increases the size ofRGA’s Board of Directors to 12 members.

* 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, except for
the addition of Omnilife Insurance Company Limited, and are shown in the following chart:
RGARGARGA
RGA Life
RGA Global
RGA Atlantic
RGAAmericas
International
Reinsurance
Reinsurance
Reinsurance
Reinsurance
Reinsurance Reinsurance
Reinsurance
Company ofCompany ofCompany,
Company
Company
Company,
Company
Australia
Canada
Ltd.
Ltd.
Ltd.
dac
LimitedOmnilife
Insurance
Company
LimitedS&P Global
Ratings

AA-AA-

AA-AA-AA-AA-(not rated)

A+

A.M. Best
Company

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 financialresults, 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 $3.4 trillion of life
reinsurance in force and assets of $66.7 billion as of March 31, 2019. Founded in 1973, RGA today isrecognized for its deep technical expertise in risk and capital management, innovative solutions, andcommitment to serving its clients. With headquarters in St. Louis, Missouri, and operations around theworld, RGA delivers expert solutions in individual 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 atwww.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, uncertain tax positions and other tax related items, and otheritems that management believes are not indicative of the company’s ongoing operations. The definition of adjusted operating income canvary 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 March 31,20192018
154.61$139.64(2.36)
31.41(0.82)
126.38$(1.36)
24.29(0.78)
117.49

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$Reconciliation to adjusted operating income:Capital (gains) losses, derivatives and other, included ininvestment related gains/losses, net
Capital (gains) losses on funds withheld, included ininvestment income, net of related expenses
Embedded derivatives:
Included in investment related gains/losses, net
Included in interest credited
DAC offset, net
Investment (income) loss on unit-linked variable annuities
Interest credited on unit-linked variable annuities
Interest expense on uncertain tax positions
Non-investment derivatives
Uncertain tax positions and other tax related items
Adjusted operating income$

Three Months Ended March 31,
2019
2018
Diluted
DilutedEarnings Per
Earnings Per
Share
Share
169,507$2.65$ 100,230$
1.5210,669

0.16

24,702

0.38

4,585

0.07

8,131

0.12

(12,695)
1,199(9,117)(9,750)
9,750
2,107
340
560
167,155(0.20)
0.02(0.14)(0.15)
0.15
0.03
0.01
0.01
2.61

(22,433)(22,565)
16,846
2,095(2,095)60775$ 105,746(0.34)(0.34)
0.26
0.03(0.03)$$

0.01
1.61