Reinsurance Group of America, Incorporated – Q2 2018
Financial Results and Business Highlights
On July 26, 2018, Reinsurance Group of America, Incorporated (NYSE: RGA) reported financial
results for the second quarter of 2018. “On balance, this was a good quarter as many of our key
businesses reported strong or in line results,” said Anna Manning, President and Chief Executive
Officer, RGA. “Our U.S. Individual Mortality business bounced back this quarter as mortality
experience was in line with our expectations, while both EMEA and Asia performed very welloverall. However, we did have disappointing results from parts of our U.S. Group business, and wewill continue to take rate action in select areas as appropriate. Consolidated premium growth of 5
percent reflected a tough comparison with the year ago quarter that included some catch-up
premiums, and our underlying momentum remains very good.
“After a strong first quarter, deployment into in-force and other transactions was on the light side interms of capital usage, but we did close on a number of attractive transactions, and we remain
optimistic about the environment and our pipeline. As indicated at our recent Investor Day, we wereactive in the quarter in regard to share repurchases, deploying $150.0 million to repurchaseapproximately 991,000 shares. We ended the quarter with an excess capital position of
approximately $1.2 billion, down slightly from the previous quarter. We continue to pursue a balanced
approach to capital management through deployment of capital into in-force and other attractive
transactions, share repurchases and shareholder dividends.
“Overall, we remain optimistic about our business prospects, and in recognition of our ongoingearnings power, the board increased the common stock dividend by 20 percent, marking the ninth
straight year of double-digit percentage increases.”
The board of directors increased the quarterly dividend to $0.60 from $0.50, payable August 28 toshareholders of record as of August 7.
Q2 2018 Financial Results*••••

Net income for the quarter totaled $204.4 million, or $3.13 per diluted share, versus $232.2 million,or $3.54 per diluted share, in the prior-year quarter.
Adjusted operating income** totaled $202.1 million, or $3.10 per diluted share, compared with
$193.7 million, or $2.95 per diluted share, the year before.
Consolidated net premiums totaled $2.6 billion, up five percent from last year’s second quarter of$2.5 billion, with favorable net foreign currency effects of $40.9 million.
Book value per share was $135.09 including accumulated other comprehensive income (AOCI),
and $119.31 excluding AOCI.*** All figures in U.S. dollars.
** See “Use of Non-GAAP Financial Measures” at end of this document.

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Q2 2018 News and Highlights•RGA was ranked #234 on the 2018 Fortune 500 list, moving up 12 positions from its 2017 rank.
The annual list, which ranks U.S.-based publicly held companies by total revenue, appeared in
the May 21 issue of Fortune magazine.

•RGA appointed John J. Gauthier and Hazel M. McNeilage to its Board of Directors. The additionof Mr. Gauthier and Ms. McNeilage, who began their service in July 2018, increases the numberof RGA directors to 11.

•RGAX, a wholly owned subsidiary and “transformation engine” of RGA, launched acomprehensive brand strategy to guide marketing and business development efforts moving
forward and to further position RGAX as the industry leader in delivering innovative products,services, and solutions.

Financial strength ratings for RGA’s principal operating subsidiaries remained unchanged, and areshown in the following chart:
RGA
Reinsurance
Company

RGA
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.

S&P GlobalRatings

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 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 the leading
global providers of life reinsurance and financial solutions, with approximately $3.3 trillion of life
reinsurance in force and assets of $59.8 billion as of June 30, 2018. 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.
2** Use of Non-GAAP Financial Measures: RGA uses a non-GAAP financial measure called adjusted operating
income as a basis for analyzing 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 ongoing profitability 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 andrelated deferred acquisition costs. These items can be volatile, primarily due to the credit market and interest
rate environment and are not necessarily indicative of the performance of the company’s underlying businesses.
Additionally, adjusted operating income excludes any net gain or loss from discontinued operations and thecumulative effect of any accounting changes, which management believes are not indicative of the company’songoing 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 better reflects the ongoing profitability and underlying
trends of the Company’s continuing operations. It also serves as a basis for establishing target levels andawards 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 Supplementon RGA’s Investor Relations website at www.rgare.com in the “Earnings” section.

(See tables on next page)3

REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIESReconciliation 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
Non-investment derivatives
Effects of the Tax Cut and Jobs Act of 2017
Adjusted operating income$$

Three Months Ended June 30,2018
2017
Diluted
DilutedEarnings Per
Earnings PerShare
Share
204,374
3.13$$ 232,190$
3.54

29,1950.45(25,420)(0.40)(10,349)(0.16)(2,771)(0.04)(19,062)447
1,386(3,260)3,260
377(4,314)
202,054(0.29)
0.01
0.02(0.05)
0.05
0.01(0.07)
3.10(10,054)(4,771)
4,462
189
(189)
38
$ 193,674(0.15)(0.07)
0.07
2.95

$$

Reconciliation of Book Value Per Share to Book Value Per ShareExcluding Accumulated Other Comprehensive Income ("AOCI")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 June 30,
2018
2017
135.09$123.60(2.23)
18.82(0.81)
119.31$(2.34)
28.91(0.65)
97.68

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