Reinsurance Group of America, Incorporated – Q2 2021
Financial Results and Business Highlights
On August 3, 2021, Reinsurance Group of America, Incorporated (NYSE: RGA) reported
financial results for the second quarter of 2021. “We are very pleased with the Company’s
strong performance in the second quarter, as the earnings contribution was broad-based bygeography and lines of business, the impact of COVID-19 was significantly reduced, and ourinvestment results were very favorable,” said Anna Manning, President and Chief ExecutiveOfficer, RGA. “Notably, our U.S. Traditional segment had a very good quarter, and our GFS
business performed extremely well across all our regions and lines of business. Reported
premium growth was very good, organic growth was solid, and new business momentum has
picked up and is encouraging. We deployed approximately $200 million of capital into in-force
transactions, and the pipeline is active.
“Our balance sheet remains strong, and we ended the quarter with excess capital of
approximately $1.2 billion. We expect our results to continue to reflect some additional
COVID-19 claims, but at manageable and decreasing levels. We expect our underlying
earnings power to be sustained and to continue to deliver attractive financial results overtime.”
Effective August 3, 2021, the board of directors increased the quarterly dividend 4%, to $0.73
from $0.70, payable August 31, 2021, to shareholders of record as of August 17, 2021.
“Recognizing our strong underlying business fundamentals, our excess capital position, andthe expectation of reducing levels of COVID-19 costs going forward, we have increased thedividend and are lifting the existing suspension on share repurchases,” noted Todd C.
Larson, Senior Executive Vice President and Chief Financial Officer.
Q2 2021 Financial Results*••••

Net income for the quarter totaled $344 million, or $5.02 per diluted share, versus net
income of $158 million, or $2.48 per diluted share, in the prior-year quarter.
Adjusted operating income** totaled $274 million, or $4.00 per diluted share, comparedwith $87 million, or $1.36 per diluted share, the year before.
Consolidated net premiums totaled $3.1 billion, up 11 percent from last year’s secondquarter, with favorable net foreign currency effects of $124 million.
Book value per share was $197.72, including accumulated other comprehensive income(AOCI), and $138.29 excluding AOCI.*** All figures in U.S. dollars.
** See “Use of Non-GAAP Financial Measures” at end of this document.

News and Highlights from Q2 2021
•RGA moved up 18 places to rank #207 on the 2021 Fortune 500 list, which ranks U.S.-based
publicly held companies by total revenue.

•RGA announced that it reached an agreement with The Dai-ichi Life Insurance Company,Limited to reinsure 200 billion JPY of statutory reserves through coinsurance.

•RGA completed an annuity reinsurance transaction with Modern Woodmen of America(Modern Woodmen), a member-owned fraternal financial services organization. Under theagreement, an RGA subsidiary will reinsure a seasoned block of U.S. annuity business.
Modern Woodmen will continue to service and administer the contracts.

COVID-19-Related Key Messages
Significantly Reduced COVID-19 Impact; Sizable Longevity Benefit• Q2 COVID-19 claim costs of approximately $168 million*o $45 million in U.S. individual mortality
o $123 million in all other operations• Longevity benefit of approximately $38 million• Expect COVID-19 mortality impacts to decline through the remainder of 2021
o Relatively high vaccination rates in the U.S., U.K., and Canada are mitigatingmortality impact from recent infectionso Manageable ongoing impacts in India, South Africa* All figures in U.S. dollars.

Financial strength ratings for RGA’s principal operating subsidiaries remained unchanged,and are shown in the following chart:
RGARGA
RGA Life
RGA
RGA Global
RGARGA 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 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 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 $88.9 billion as of June 30, 2021. Founded in1973, 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.
Cautionary Note Regarding Forward-Looking Statements
This summary contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including,among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial
performance and growth potential of the Company. Forward-looking statements often contain words and phrases such as “intend,” “expect,”“project,” “estimate,” “predict,” “anticipate,” “should,” “believe” and other similar expressions. Forwardlooking statements are based on
management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Forwardlooking statements are not a guarantee of future performance and are subject to risks and uncertainties, some of which cannot be predicted
or quantified. Future events and actual results, performance, and achievements could differ materially from those set forth in, contemplatedby or underlying the forward-looking statements. The effects of the COVID-19 pandemic and the response thereto on economic conditions,the financial markets and insurance risks, and the resulting effects on the Company’s financial results, liquidity, capital resources, financialmetrics, investment portfolio and stock price, could cause actual results and events to differ materially from those expressed or implied byforward-looking statements. Further, any estimates, projections, illustrative scenarios or frameworks used to plan for potential effects of thepandemic are dependent on numerous underlying assumptions and estimates that may not materialize. Additionally, numerous otherimportant factors (whether related to, resulting from or exacerbated by the COVID-19 pandemic or otherwise) could also cause results andevents to differ materially from those expressed or implied by forward-looking statements, including, without limitation: (1) adverse changes
in mortality, morbidity, lapsation or claims experience, (2) inadequate risk analysis and underwriting, (3) adverse capital and credit market
conditions and their impact on the Company’s liquidity, access to capital and cost of capital, (4) changes in the Company’s financial strengthand credit ratings and the effect of such changes on the Company’s future results of operations and financial condition, (5) the availability
and cost of collateral necessary for regulatory reserves and capital, (6) requirements to post collateral or make payments due to declines inmarket value of assets subject to the Company’s collateral arrangements, (7) action by regulators who have authority over the Company’s
reinsurance operations in the jurisdictions in which it operates, (8) the effect of the Company parent’s status as an insurance holding
company and regulatory restrictions on its ability to pay principal of and interest on its debt obligations, (9) general economic conditions or a
prolonged economic downturn affecting the demand for insurance and reinsurance in the Company’s current and planned markets, (10) theimpairment of other financial institutions and its effect on the Company’s business, (11) fluctuations in U.S. or foreign currency exchange
rates, interest rates, or securities and real estate markets, (12) market or economic conditions that adversely affect the value of theCompany’s investment securities or result in the impairment of all or a portion of the value of certain of the Company’s investment securities,
that in turn could affect regulatory capital, (13) market or economic conditions that adversely affect the Company’s ability to make timely
sales of investment securities, (14) risks inherent in the Company’s risk management and investment strategy, including changes ininvestment portfolio yields due to interest rate or credit quality changes, (15) the fact that the determination of allowances and impairments
taken on the Company’s investments is highly subjective, (16) the stability of and actions by governments and economies in the markets inwhich the Company operates, including ongoing uncertainties regarding the amount of U.S. sovereign debt and the credit ratings thereof,(17) the Company’s dependence on third parties, including those insurance companies and reinsurers to which the Company cedes somereinsurance, third-party investment managers and others, (18) financial performance of the Company’s clients, (19) the threat of natural
disasters, catastrophes, terrorist attacks, epidemics or pandemics anywhere in the world where the Company or its clients do business, (20)competitive factors and competitors’ responses to the Company’s initiatives, (21) development and introduction of new products anddistribution opportunities, (22) execution of the Company’s entry into new markets, (23) integration of acquired blocks of business andentities, (24) interruption or failure of the Company’s telecommunication, information technology or other operational systems, or theCompany’s failure to maintain adequate security to protect the confidentiality or privacy of personal or sensitive data and intellectual
property stored on such systems, (25) adverse litigation or arbitration results, (26) the adequacy of reserves, resources and accurate
information relating to settlements, awards and terminated and discontinued lines of business, (27) changes in laws, regulations, andaccounting standards applicable to the Company or its business, (28) the effects of the Tax Cuts and Jobs Act of 2017 may be different thanexpected and (29) other risks and uncertainties described in this document and in the Company’s other filings with the Securities andExchange Commission (“SEC”). Forward-looking statements should be evaluated together with the many risks and uncertainties that affect
the Company’s business, including those mentioned in this document and described in the periodic reports the Company files with the SEC.
These forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation toupdate these forward-looking statements, even though the Company’s situation may change in the future. For a discussion of these risks
and uncertainties that could cause actual results to differ materially from those contained in the forwardlooking statements, you are advised
to see Item 1A - “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as may besupplemented by Item 1A - “Risk Factors” in the Company’s subsequent Quarterly Reports on Form 10-Q.

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
2021
$184.78$197.72(3.09)
60.19(1.14)$128.82(0.29)
60.78(1.06)$138.29

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

Three Months Ended June 30,
2021
2020
Diluted
DilutedEarnings Per
Earnings Per
Share
Share
344
$
5.02
$
158
$
2.48
(82)

(1.19)

230.35(1)(0.01)(2)(0.03)

1(2)
(1)
(2)
2
3(12)
24
274

0.01
(0.03)(0.01)(0.03)
0.03
0.04(0.18)
0.35
4.00

(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$$$