Reinsurance Group of America, Incorporated – Q1 2021
Financial Results and Business Highlights
On May 6, 2021, Reinsurance Group of America, Incorporated (NYSE: RGA) reported financial results for thefirst quarter of 2021. “Our first quarter was negatively impacted by a significant level of COVID-19 mortality
claims in a range of geographies,” said Anna Manning, President and Chief Executive Officer, RGA. “Beyond
the effect of COVID-19, our results were solid and continued to show resilience. Our underlying earnings power
remains strong as a number of our segments performed well, and we deployed $100 million into in-force
transactions.
“Our balance sheet remains strong, and we ended the quarter with excess capital of approximately $1.2 billion.
While we expect our results to continue to reflect additional COVID-19 claims, we expect that impact to diminish
in the coming quarters, and believe that our strong financial condition and global business platform will deliver
improved results as the year progresses.”
Effective May 6, 2021, the board of directors declared a regular quarterly dividend of $0.70, payable June 1,2021, to shareholders of record as of May 18, 2021.
Q1 2021 Financial Results*••••

Net income for the quarter totaled $139 million, or $2.03 per diluted share, versus net loss of $88 million, or$1.41 per diluted share, in the prior-year quarter
Adjusted operating loss** totaled $84 million, or $1.24 per diluted share, compared with adjusted operating
income of $89 million, or $1.41 per diluted share, the year before
Consolidated net premiums totaled $2.9 billion, up 3 percent from last year’s first quarter, with favorable netforeign currency effects of $78 million
Book value per share was $177.83, including accumulated other comprehensive income (AOCI), and$133.67 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
••
•
•
•

Q1 COVID-19 claim costs
o $340 million of estimated COVID-19 U.S. individual mortality claim costs
o $145 million of estimated COVID-19 claim costs in all other operations
Expect vaccination roll-out to lower our mortality claim costs for the remainder of 2021
COVID-19 impacts are consistent with higher general population reported deaths
Although overall COVID-19 claim costs were higher than previous quarters, they continue to be within
our expected range
Longevity experience impact was lower than expected due to longer reporting lags

Additional News and Highlights from Q1 2021•

For the 10th consecutive year, RGA was ranked #1 on NMG Consulting’s 2020 Global All Respondent
Business Capability Index (BCI), based on feedback from insurance executives worldwide. RGA has
earned this recognition every year since the inception of NMG Consulting’s Global Life & Health
Reinsurance Study.

•RGA also ranked #1 on NMG’s All Respondent BCI in Indonesia, Italy, Japan, Mexico, Poland,Singapore, South Africa, Taiwan, and Vietnam, as well as in regional aggregates in Asia, SoutheastAsia, and EMEA.

•On January 6, RGA announced the appointment of Shundrawn A. Thomas to its Board of Directors. Mr.
Thomas brings more than 25 years of experience in the financial services industry and is currently amember of the Northern Trust Management Group and serves as President of Northern Trust AssetManagement, a leading global investment manager with over $1 trillion in assets under management.
The addition of Mr. Thomas increases the number of RGA directors to 12.

•RGA announced that it has agreed to acquire 100% of the share capital of Hodge Life Assurance
Company Limited (HLAC), the PRA authorized life insurance company of Hodge Limited. HLAC hasannuity liabilities of approximately £570 million ($780 million U.S.).

Financial strength ratings for RGA’s principal operating subsidiaries remained unchanged, and are shown in thefollowing chart

RGA
RGA Life
RGA
RGA Global
RGA
RGA Atlantic
RGAAmericas Reinsurance International Reinsurance Reinsurance Reinsurance
Reinsurance
Reinsurance Company of Reinsurance Company, Company ofCompany
Company
Company,Canada
CompanyLtd.
Australia
Ltd.
Ltd.
dac
Ltd.

Omnilife
Insurance
Company
LimitedRGA
Reinsurance
Company(Barbados)Ltd.

S&P Global
Ratings

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’s
Investors
ServiceA1

not rated

not rated

not rated

not rated

not rated

not rated

not ratednot 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 and health reinsurance and financial solutions, with approximately $3.4 trillion of life reinsurance
in force and assets of $84.8 billion as of March 31, 2021. 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 in individual 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 forGAAP 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)

At March 31,
2021
2020
$177.83$150.88

Book value per share outstanding
Less effect of AOCI:
Accumulated currency translation adjustmentsUnrealized appreciation of securities
Pension and postretirement benefits
Book value per share outstanding, before impact of AOCI

(0.57)
45.79(1.06)$133.67(3.62)
23.14(1.19)$132.55

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

Three Months Ended March 31,
2021
2020
Diluted
DilutedEarnings Per
Earnings Per
Share
Share
139
$
2.03
$(88)
$(1.41)(179)(2.63)(51)(0.81)(1)(0.01)(2)(0.03)

(54)
(24)
9
1(1)
2
9
15(84)(0.79)(0.35)
0.13
0.01(0.01)
0.03
0.13
0.22
(1.24)

283
9(69)
13(13)
3(2)
6
89

4.49
0.14
(1.09)
0.21(0.21)
0.05(0.03)
0.10
1.41$$$