Reinsurance Group of America, Incorporated – Q1 2017

Financial Results and Business Highlights
On April 27, 2017, Reinsurance Group of America, Incorporated (NYSE: RGA) reported
financial results for the first quarter of 2017. Anna Manning, President and Chief Executive
Officer, commented, “Our EPS and adjusted operating EPS improved versus a year ago, butreflected some increased volatility in our segment results, with the U.S. and CanadianTraditional segments experiencing high seasonal individual mortality claims, and our Asia
Pacific and EMEA segments performing very well. The broad diversification of earnings thathas come with the successful development of our global operating model over time continues
to benefit us, even as individual segments or business lines experience periods of naturalvolatility.
“Premium growth was strong again, up 10 percent on a reported basis and in constantcurrencies. This reflects solid to strong organic growth across most regions, Asia and EMEA
in particular.
“The elevated mortality claims in both the U.S. and Canada were due to a higher number oflarge claims. We consider this to be random volatility and not attributable to any systemicissue. As we have emphasized in the past, we generally expect short-term claims volatility tomoderate over time, and we have not changed our expectations.
“We did not close any significant in-force or other transactions during the quarter, but weremain optimistic about the environment and our pipeline. We ended the quarter with anexcess capital position of approximately $1.2 billion. We remain well positioned to continue
pursuing a balanced approach to capital management by deploying capital into in-force andother attractive transactions, share repurchases and shareholder dividend increases.
“Looking forward, we remain optimistic about our ability to serve clients, execute on ourstrategies and deliver attractive financial returns.”
Beginning with the announcement of first-quarter results, the Company is modifying thelabeling of its non-GAAP measure “operating income” to “adjusted operating income.” Thedefinition and calculation of these measures are identical. Only the name of the measure ischanging. The Company believes this change provides further clarity that “operating income”
is a non-GAAP measure. This modification does not affect previously reported results.
The board of directors declared a regular quarterly dividend of $0.41, payable May 30 toshareholders of record as of May 9, 2017.

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Q1 2017 Financial Results *•Net income is reported at $145.5 million, or $2.22 per diluted share, compared to $76.5million, or $1.17 per diluted share in Q1 2016.

•Adjusted operating income* totaled $122.1 million, or $1.86 per diluted share,compared to $120.8 million, or $1.85 per diluted share in Q1 2016.

•Consolidated net premiums increased 10% to $2.4 billion from Q1 2016.

•

Book value per share at March 31 was $115.24 including AOCI, and $94.72 excluding
AOCI.*

Q1 2017 News and Highlights**•

For the fifth consecutive year, RGA was ranked #1 on NMG Consulting’s 2016 Global
All Respondent Business Capability Index (BCI), based on feedback from insurance
executives in more than 50 countries.

•In 2016, RGA also ranked #1 on NMG’s All Respondent BCI in Canada, Germany,
Hong Kong, Indonesia, Japan, Mexico, Philippines, Singapore, South Africa, Taiwan,Thailand, and the United States (individual mortality and group life and disability), as
well as in each of the Asia and EMEA regions, in aggregate.

•After receiving approval in December 2016 from the Insurance Regulatory andDevelopment Authority of India (IRDAI), RGA Life Reinsurance Company of Canada –India Branch officially opened as a licensed branch office on February 1, 2017. RGA
has served clients in India as an authorized offshore reinsurer for more than 15 years.

•RGA successfully conducted its first implementation of Dynamic Risk SelectorSM, asolution that aggregates application and evidence data, evaluates the data set using
RGA’s proprietary underwriting rules and predictive model, and accelerates theunderwriting process to allow insurers to accept fully underwritten cases without fluid
testing and dramatically reduce application-to-issue time.

All figures in U.S. Dollars
See: Use of Non-GAAP Financial Measures at the end of this document

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Financial strength ratings for RGA’s principal operating subsidiaries remain unchanged, andare shown in the following chart:

RGA
Reinsurance
CompanyRGA Americas
Reinsurance
Company, Ltd.

RGA Life
Reinsurance
Company ofCanadaRGAInternational
Reinsurance
Company dac

RGA Global
Reinsurance
Company, Ltd.

RGA
Reinsurance
Company ofAustralia
LimitedRGA Atlantic
Reinsurance
Company Ltd.

Standard &Poor’s
Insurance
Ratings

AA-AA-AA-

AA-AA-AA-(not rated)

A.M. BestCompany

A+

A+A+

(not rated)(not rated)(not rated)

A+Moody’sInvestorsServiceA1(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, please refer to RGA’s Investor Relations site at www.rgare.com/investors.
About RGA
Reinsurance Group of America, Incorporated is among the largest global providers of life
reinsurance, with operations in Australia, Barbados, Bermuda, Brazil, Canada, China,France, Germany, Hong Kong, India, Ireland, Italy, Japan, Malaysia, Mexico, theNetherlands, New Zealand, Poland, Singapore, South Africa, South Korea, Spain, Taiwan,
the United Arab Emirates, the United Kingdom and the United States. Worldwide, RGA has
approximately $3.1 trillion of assumed life reinsurance in force, and total assets of $53.8billion.
* 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 acquisitioncosts. 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. Reconciliations to GAAP net income are provided in the table shown below. Additional financial information can be foundin the Quarterly Financial Supplement on RGA’s Investor Relations website at www.rgare.com/investors, in the “Earnings” section.
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.
Adjusted operating return on equity is a non-GAAP financial measure calculated as adjusted operating income divided by average
shareholders’ equity excluding AOCI.

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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Adjusted Operating Income(Dollars in thousands)(Unaudited)

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

Three Months Ended
March 31,2016
2017
145,512$76,472
20,253(425)(21,727)(3,239)(59,192)(18,173)
34,021(2,673)2,673
69
122,065

100,873
18,947(50,036)
(265)
265
(540)
120,750$

Reconciliation of Book Value Per Share to Book Value Per ShareExcluding Accumulated Other Comprehensive Income ("AOCI")(unaudited)Book value per shareLess effect of AOCI:
Accumulated currency translation adjustments
Unrealized appreciation of securities
Pension and postretirement benefits
Book value per share excluding AOCIMarch 31, 2017$115.24$(3.02)
24.20(0.66)
94.72

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