EX-99.2 3 qfs1q20.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2
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Quarterly Financial Supplement
First Quarter 2020
(Unaudited)
World Headquarters
  
Internet Address
 
Contacts
16600 Swingley Ridge Road
  
www.rgare.com
 
Todd C. Larson
Chesterfield, Missouri 63017 U.S.A.
  
 
 
Senior Executive Vice President
 
 
 
 
and Chief Financial Officer
 
 
 
 
Phone: (636) 736-7000
 
 
 
 
e-mail: tlarson@rgare.com
 
 
 
 
 
 
 
 
 
Jeff Hopson
 
 
 
 
Senior Vice President, Investor Relations
 
 
 
 
Phone: (636) 736-2068
 
 
 
 
e-mail: jhopson@rgare.com
 


Current Ratings
 
 
 
 
 
 
Standard & Poor’s
 
A.M. Best
 
Moody’s
Financial Strength Ratings
 
 
 
 
 
 
RGA Reinsurance Company
 
AA-
 
A+
 
A1
RGA Life Reinsurance Company of Canada
 
AA-
 
A+
 
NR
RGA International Reinsurance Company dac
 
AA-
 
NR
 
NR
RGA Global Reinsurance Company, Ltd.
 
AA-
 
NR
 
NR
RGA Reinsurance Company of Australia Limited
 
AA-
 
NR
 
NR
RGA Americas Reinsurance Company, Ltd.
 
AA-
 
A+
 
NR
RGA Reinsurance Company (Barbados) Ltd.
 
AA-
 
NR
 
NR
RGA Atlantic Reinsurance Company Ltd.
 
NR
 
A+
 
NR
Omnilife Insurance Company Limited
 
A+
 
NR
 
NR
Senior Debt Ratings
 
 
 
 
 
 
Reinsurance Group of America, Incorporated
 
A
 
a-
 
Baa1
Our common stock is traded on the New York Stock Exchange under the symbol “RGA”.


 



Reinsurance Group of America, Incorporated
1st Quarter 2020
Table of Contents
 
Page
Non-GAAP Disclosures
 
 
2020 Notes
 
 
Consolidated
 
 
 
Financial Highlights
 
 
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)
 
 
Consolidated Balance Sheets
 
 
Segment Summaries of GAAP Income Statements and Adjusted Operating Income Statements
 
 
 
U.S. and Latin America Traditional
 
 
U.S. and Latin America Financial Solutions - Asset Intensive
 
 
U.S. and Latin America Financial Solutions - Capital Solutions
 
 
Canada Traditional
 
 
Canada Financial Solutions
 
 
Europe, Middle East and Africa Traditional
 
 
Europe, Middle East and Africa Financial Solutions
 
 
Asia Pacific Traditional
 
 
Asia Pacific Financial Solutions
 
 
Corporate and Other
 
 
Summary of Segment GAAP Income
 
 
Summary of Segment Adjusted Operating Income
 
 
Investments
 
 
 
Cash and Invested Assets and Investment Income and Yield Summary
 
 
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Fixed Maturity Securities
 
 
Corporate Fixed Maturity Securities by Industry
 
 
Ratings of Fixed Maturity Securities and Structured Fixed Maturity Securities
 
 
Gross Unrealized Losses Aging - Fixed Maturity Securities
 
 
Fixed Maturity Securities Below Amortized Cost
 
 
Consolidated Investment Related Gains and Losses
 
 
Appendix
 
 
 
Reconciliations of GAAP to Non-GAAP Measures
 
 
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Reinsurance Group of America, Incorporated
Non-GAAP Disclosures
This Quarterly Financial Supplement is for information purposes only and includes unaudited figures. This report should be read in conjunction with documents filed by Reinsurance Group of America, Incorporated (“RGA”) with the SEC. The consolidated financial information herein include the assets, liabilities, and results of operations of RGA and its subsidiaries, all of which are wholly owned (collectively, the “Company”).
Non-GAAP Disclosures
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 substantially all of 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 the performance of the Company’s underlying businesses. Additionally, adjusted operating income excludes any net gain or loss from discontinued operations, the cumulative effect of any accounting changes, tax reform and other items that management believes are not indicative of the Company’s ongoing operations. The definition of adjusted operating income can vary by company and is not considered a substitute for GAAP net income. A reconciliation of income before income taxes of the operating segments to adjusted operating income before income tax is presented in the appendix.
RGA evaluates its shareholders’ equity position excluding the impact of accumulated other comprehensive income (“AOCI”) since the net unrealized gains or losses included in AOCI primarily relate to changes in interest rates, credit spreads on its investment securities and foreign currency fluctuations that are not permanent and can fluctuate significantly from period to period.
RGA uses a non-GAAP financial measure called adjusted operating return on equity, which is calculated as adjusted operating income divided by average shareholders’ equity excluding AOCI. Additionally, RGA uses a non-GAAP financial measure called book value per share excluding the impact of AOCI 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. A reconciliation of shareholders’ equity before and after the impact of AOCI is presented in the appendix.







                                        
 
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Page 1

    

Reinsurance Group of America, Incorporated
2020 Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Name Change
 
In the fourth quarter of 2019, the Company changed the name of the Financial Reinsurance business within the U.S. and Latin America Financial Solutions segment to “Capital Solutions”. The name change better describes the product offerings for this part of the U.S. and Latin America Financial Solutions segment. This name change does not affect any previously or future reported results for the U.S. and Latin America Financial Solutions segment.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Instruments - Credit Losses
 
Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses.  Under the new guidance, the Company records an allowance for credit losses on fixed maturity securities available-for-sale.  Prior to the adoption, the Company recorded credit losses as a direct reduction in the amortized cost of the securities. The changes to disclosures related to the adoption are reflected in the Investments section of this quarterly financial supplement beginning on page 30.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
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Reinsurance Group of America, Incorporated
Financial Highlights
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr vs. PY Quarter
(USD millions, except in force & per share data)
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Net premiums
 
$
2,819

 
$
2,986

 
$
2,809

 
$
2,764

 
$
2,738

 
$
81

Net income (loss)
 
(88
)
 
235

 
263

 
202

 
170

 
(258
)
Adjusted operating income
 
89

 
219

 
256

 
211

 
167

 
(78
)
Return on equity - annualized
 
(3.4
)%
 
8.1
%
 
9.5
%
 
8.0
%
 
7.5
%
 
(10.9
)%
Return on equity - trailing 12 months
 
5.8
 %
 
8.4
%
 
7.6
%
 
8.5
%
 
8.9
%
 
(3.1
)%
Adjusted operating return on equity (ex AOCI):
 
 
 
 
 
 
 
 
 
 
 
 
Annualized
 
4.3
 %
 
10.5
%
 
12.6
%
 
10.6
%
 
8.5
%
 
(4.2
)%
Trailing 12 months
 
9.5
 %
 
10.5
%
 
10.7
%
 
11.0
%
 
11.0
%
 
(1.5
)%
Total assets
 
$75,654
 
$76,731
 
$75,774
 
$72,044
 
$66,692
 
$8,962
Assumed Life Reinsurance In Force (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
U.S. and Latin America Traditional
 
$
1,618.4

 
$
1,619.6

 
$
1,618.5

 
$
1,623.0

 
$
1,618.9

 
$
(0.5
)
U.S. and Latin America Financial Solutions
 
5.4

 
5.1

 
5.2

 
2.0

 
2.0

 
3.4

Canada Traditional
 
389.5

 
417.1

 
401.7

 
406.1

 
394.1

 
(4.6
)
Europe, Middle East and Africa Traditional
 
763.1

 
776.4

 
707.8

 
715.8

 
726.1

 
37.0

Asia Pacific Traditional
 
635.6

 
662.0

 
626.6

 
630.3

 
623.4

 
12.2

Asia Pacific Financial Solutions
 
0.4

 
—

 
—

 
—

 
0.1

 
0.3

Total assumed life reinsurance in force
 
$
3,412.4

 
$
3,480.2

 
$
3,359.8

 
$
3,377.2

 
$
3,364.6

 
$
47.8

Assumed New Business Production (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
U.S. and Latin America Traditional
 
$
34.0

 
$
38.4

 
$
23.9

 
$
24.7

 
$
28.8

 
$
5.2

U.S. and Latin America Financial Solutions
 
—

 
—

 
3.2

 
—

 
—

 
—

Canada Traditional
 
12.2

 
14.9

 
8.1

 
9.0

 
8.4

 
3.8

Europe, Middle East and Africa Traditional
 
32.9

 
55.0

 
32.1

 
27.1

 
33.2

 
(0.3
)
Asia Pacific Traditional
 
15.7

 
20.2

 
31.0

 
9.6

 
8.9

 
6.8

Total assumed new business production
 
$
94.8

 
$
128.5

 
$
98.3

 
$
70.4

 
$
79.3

 
$
15.5

Per Share and Shares Data
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(1.41
)
 
$
3.75

 
$
4.19

 
$
3.23

 
$
2.70

 
$
(4.11
)
Adjusted operating income
 
$
1.43

 
$
3.49

 
$
4.09

 
$
3.36

 
$
2.66

 
$
(1.23
)
Diluted earnings per share (1)
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) (1)
 
$
(1.41
)
 
$
3.68

 
$
4.12

 
$
3.18

 
$
2.65

 
$
(4.06
)
Adjusted operating income
 
$
1.41

 
$
3.43

 
$
4.02

 
$
3.31

 
$
2.61

 
$
(1.20
)
Wgt. average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
62,138

 
62,633

 
62,666

 
62,678

 
62,758

 
(620
)
Diluted
 
63,001

 
63,774

 
63,789

 
63,698

 
64,027

 
(1,026
)
Common shares issued
 
79,138

 
79,138

 
79,138

 
79,138

 
79,138

 
—

Treasury shares
 
17,492

 
16,482

 
16,529

 
16,380

 
16,594

 
898

Common shares outstanding
 
61,646

 
62,656

 
62,609

 
62,758

 
62,544

 
(898
)
Book value per share
 
$
150.88

 
$
185.17

 
$
184.06

 
$
170.64

 
$
154.61

 
$
(3.73
)
Per share effect of AOCI
 
$
18.33

 
$
50.07

 
$
52.04

 
$
42.10

 
$
28.23

 
$
(9.90
)
Book value per share, excluding AOCI
 
$
132.55

 
$
135.10

 
$
132.02

 
$
128.54

 
$
126.38

 
$
6.17

 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ dividends paid
 
$
43.6

 
$
43.9

 
$
43.9

 
$
37.6

 
$
37.7

 
$
5.9

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) As a result of anti-dilutive impact, in periods of a loss, weighted average common shares outstanding (basic) are used in the calculation of diluted earnings per share.

                                        
 
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Reinsurance Group of America, Incorporated
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
2,819

 
$
2,986

 
$
2,809

 
$
2,764

 
$
2,738

 
$
81

Investment income, net of related expenses
 
594

 
677

 
679

 
584

 
580

 
14

Investment related gains (losses), net
 
 
 
 
 
 
 
 
 
 
 
 
Impairments and change in allowance for credit losses on fixed maturity securities
 
(34
)
 
(13
)
 
(9
)
 
—

 
(9
)
 
(25
)
Other investment related gains (losses), net
 
(251
)
 
35

 
58

 
12

 
17

 
(268
)
Total investment related gains (losses), net
 
(285
)
 
22

 
49

 
12

 
8

 
(293
)
Other revenue
 
76

 
100

 
91

 
107

 
94

 
(18
)
Total revenues
 
3,204

 
3,785

 
3,628

 
3,467

 
3,420

 
(216
)
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 


Claims and other policy benefits
 
2,664

 
2,703

 
2,470

 
2,516

 
2,508

 
156

Interest credited
 
146

 
180

 
226

 
158

 
133

 
13

Policy acquisition costs and other insurance expenses
 
248

 
310

 
322

 
260

 
312

 
(64
)
Other operating expenses
 
195

 
234

 
210

 
222

 
202

 
(7
)
Interest expense
 
41

 
44

 
46

 
43

 
40

 
1

Collateral finance and securitization expense
 
6

 
6

 
7

 
8

 
8

 
(2
)
Total benefits and expenses
 
3,300

 
3,477

 
3,281

 
3,207

 
3,203

 
97

Income (loss) before income taxes
 
(96
)
 
308

 
347

 
260

 
217

 
(313
)
Provision for income taxes
 
(8
)
 
73

 
84

 
58

 
47

 
(55
)
Net income (loss)
 
$
(88
)
 
$
235

 
$
263

 
$
202

 
$
170

 
$
(258
)
Pre-tax adjusted operating income reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(96
)
 
$
308

 
$
347

 
$
260

 
$
217

 
$
(313
)
Investment and derivative (gains) losses (1)
 
(68
)
 
30

 
(77
)
 
(22
)
 
13

 
(81
)
Change in value of modified coinsurance and funds withheld embedded derivatives (1)
 
230

 
1

 
(9
)
 
(5
)
 
2

 
228

GMXB embedded derivatives (1)
 
128

 
(47
)
 
42

 
18

 
(18
)
 
146

Funds withheld (gains) losses - investment income
 
(2
)
 
—

 
—

 
(1
)
 
6

 
(8
)
EIA embedded derivatives - interest credited
 
12

 
(10
)
 
36

 
18

 
2

 
10

DAC offset, net
 
(87
)
 
(4
)
 
(13
)
 
(3
)
 
(12
)
 
(75
)
Investment (income) loss on unit-linked variable annuities
 
16

 
1

 
(12
)
 
(3
)
 
(12
)
 
28

Interest credited on unit-linked variable annuities
 
(16
)
 
(1
)
 
12

 
3

 
12

 
(28
)
Interest expense on uncertain tax positions
 
4

 
4

 
9

 
2

 
3

 
1

Non-investment derivatives
 
(3
)
 
2

 
—

 
—

 
—

 
(3
)
Adjusted operating income before income taxes
 
$
118

 
$
284

 
$
335

 
$
267

 
$
213

 
$
(95
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
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Reinsurance Group of America, Incorporated
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
After-tax adjusted operating income reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(88
)
 
$
235

 
$
263

 
$
202

 
$
170

 
$
(258
)
Investment and derivative (gains) losses (1)
 
(51
)
 
25

 
(61
)
 
(15
)
 
8

 
(59
)
Change in value of modified coinsurance and funds withheld embedded derivatives (1)
 
182

 
—

 
(7
)
 
(4
)
 
2

 
180

GMXB embedded derivatives (1)
 
101

 
(37
)
 
33

 
14

 
(14
)
 
115

Funds withheld (gains) losses - investment income
 
(2
)
 
—

 
—

 
(1
)
 
5

 
(7
)
EIA embedded derivatives - interest credited
 
9

 
(8
)
 
28

 
14

 
2

 
7

DAC offset, net
 
(69
)
 
(3
)
 
(10
)
 
(3
)
 
(9
)
 
(60
)
Investment (income) loss on unit-linked variable annuities
 
13

 
—

 
(9
)
 
(3
)
 
(9
)
 
22

Interest credited on unit-linked variable annuities
 
(13
)
 
—

 
9

 
3

 
9

 
(22
)
Interest expense on uncertain tax positions
 
3

 
3

 
7

 
2

 
2

 
1

Non-investment derivatives
 
(2
)
 
2

 
—

 
—

 
—

 
(2
)
Uncertain tax positions and other tax related items
 
6

 
2

 
3

 
2

 
1

 
5

Adjusted operating income
 
$
89

 
$
219

 
$
256

 
$
211

 
$
167

 
$
(78
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wgt. average common shares outstanding (diluted)
 
63,001

 
63,774

 
63,789

 
63,698

 
64,027

 
(1,026
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share - adjusted operating income
 
$
1.41

 
$
3.43

 
$
4.02

 
$
3.31

 
$
2.61

 
$
(1.20
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(33
)
 
$
(5
)
 
$
(35
)
 
$
(60
)
 
$
(79
)
 
$
46

Adjusted operating income before income taxes
 
$
(1
)
 
$
1

 
$
(2
)
 
$
(5
)
 
$
(9
)
 
$
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement.
(2) Compared to comparable prior year period.

                                        
 
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Reinsurance Group of America, Incorporated
Consolidated Balance Sheets
(USD millions)
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
2020
 
2019
 
2019
 
2019
 
2019
Assets
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities, available-for-sale
 
$
48,555

 
$
51,121

 
$
49,481

 
$
46,189

 
$
41,738

Equity securities
 
112

 
320

 
135

 
147

 
90

Mortgage loans on real estate
 
6,014

 
5,706

 
5,647

 
5,405

 
5,118

Policy loans
 
1,314

 
1,319

 
1,290

 
1,320

 
1,312

Funds withheld at interest
 
5,258

 
5,662

 
5,614

 
5,696

 
5,730

Short-term investments
 
117

 
64

 
108

 
159

 
119

Other invested assets
 
2,542

 
2,363

 
2,215

 
2,122

 
2,007

Total investments
 
63,912

 
66,555

 
64,490

 
61,038

 
56,114

Cash and cash equivalents
 
2,820

 
1,449

 
2,636

 
2,288

 
2,020

Accrued investment income
 
510

 
493

 
520

 
470

 
443

Premiums receivable and other reinsurance balances
 
2,836

 
2,940

 
2,818

 
2,945

 
2,858

Reinsurance ceded receivables
 
889

 
904

 
863

 
851

 
815

Deferred policy acquisition costs
 
3,622

 
3,512

 
3,411

 
3,440

 
3,404

Other assets
 
1,065

 
878

 
1,036

 
1,012

 
1,038

Total assets
 
$
75,654

 
$
76,731

 
$
75,774

 
$
72,044

 
$
66,692

 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
Future policy benefits
 
$
29,521

 
$
28,672

 
$
27,086

 
$
26,996

 
$
25,977

Interest-sensitive contract liabilities
 
23,164

 
22,711

 
22,345

 
19,749

 
17,750

Other policy claims and benefits
 
5,854

 
5,711

 
6,147

 
6,136

 
5,911

Other reinsurance balances
 
596

 
557

 
513

 
513

 
517

Deferred income taxes
 
2,163

 
2,712

 
2,762

 
2,444

 
2,145

Other liabilities
 
1,505

 
1,188

 
1,406

 
1,481

 
1,278

Long-term debt
 
2,981

 
2,981

 
3,381

 
3,381

 
2,788

Collateral finance and securitization notes
 
569

 
598

 
610

 
635

 
656

Total liabilities
 
66,353

 
65,130

 
64,250

 
61,335

 
57,022

 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity:
 
 
 
 
 
 
 
 
 
 
Common stock, at par value
 
1

 
1

 
1

 
1

 
1

Additional paid-in-capital
 
1,942

 
1,937

 
1,928

 
1,920

 
1,906

Retained earnings
 
7,802

 
7,952

 
7,766

 
7,550

 
7,412

Treasury stock
 
(1,574
)
 
(1,426
)
 
(1,429
)
 
(1,404
)
 
(1,415
)
Accumulated other comprehensive income (AOCI):
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustment, net of income taxes
 
(223
)
 
(92
)
 
(157
)
 
(123
)
 
(147
)
Unrealized appreciation of securities, net of income taxes
 
1,426

 
3,299

 
3,472

 
2,816

 
1,964

Pension and postretirement benefits, net of income taxes
 
(73
)
 
(70
)
 
(57
)
 
(51
)
 
(51
)
Total stockholders’ equity
 
9,301

 
11,601

 
11,524

 
10,709

 
9,670

Total liabilities and stockholders’ equity
 
$
75,654

 
$
76,731

 
$
75,774

 
$
72,044

 
$
66,692

 
 
 
 
 
 
 
 
 
 
 
Total stockholders’ equity, excluding AOCI
 
$
8,171

 
$
8,464

 
$
8,266

 
$
8,067

 
$
7,904

 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of total stockholders' equity before and after impact of AOCI.
 
 
 
 
 
 
 
 
 
 

 
rgaqfslogoaa01a13.jpg
Page 6

                                    


Reinsurance Group of America, Incorporated
U.S. and Latin America Traditional
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
1,373

 
$
1,558

 
$
1,404

 
$
1,410

 
$
1,357

 
$
16

Investment income, net of related expenses
 
161

 
200

 
210

 
173

 
186

 
(25
)
Investment related gains (losses), net
 
(7
)
 
2

 
(10
)
 
(4
)
 
(6
)
 
(1
)
Other revenue
 
6

 
5

 
6

 
5

 
4

 
2

Total revenues
 
1,533

 
1,765

 
1,610

 
1,584

 
1,541

 
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1,367

 
1,427

 
1,241

 
1,293

 
1,300

 
67

Interest credited
 
19

 
19

 
20

 
19

 
20

 
(1
)
Policy acquisition costs and other insurance expenses
 
175

 
195

 
201

 
180

 
176

 
(1
)
Other operating expenses
 
34

 
39

 
35

 
37

 
33

 
1

Total benefits and expenses
 
1,595

 
1,680

 
1,497

 
1,529

 
1,529

 
66

 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(62
)
 
$
85

 
$
113

 
$
55

 
$
12

 
$
(74
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
99.6
%
 
91.6
%
 
88.4
%
 
91.7
%
 
95.8
%
 
3.8
 %
Policy acquisition costs and other insurance expenses
 
12.7
%
 
12.5
%
 
14.4
%
 
12.8
%
 
13.0
%
 
(0.3
)%
Other operating expenses
 
2.5
%
 
2.5
%
 
2.5
%
 
2.6
%
 
2.4
%
 
0.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
—

 
$
1

 
$
—

 
$
—

 
$
(1
)
 
$
1

Income (loss) before income taxes
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 7

    

Reinsurance Group of America, Incorporated
U.S. and Latin America Traditional
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
Qtr vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
1,373

 
$
1,558

 
$
1,404

 
$
1,410

 
$
1,357

 
$
16

Investment income, net of related expenses
 
161

 
200

 
210

 
173

 
186

 
(25
)
Other revenue
 
6

 
5

 
6

 
5

 
4

 
2

Total revenues
 
1,540

 
1,763

 
1,620

 
1,588

 
1,547

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1,367

 
1,427

 
1,241

 
1,293

 
1,300

 
67

Interest credited
 
19

 
19

 
20

 
19

 
20

 
(1
)
Policy acquisition costs and other insurance expenses
 
175

 
195

 
201

 
180

 
176

 
(1
)
Other operating expenses
 
34

 
39

 
35

 
37

 
33

 
1

Total benefits and expenses
 
1,595

 
1,680

 
1,497

 
1,529

 
1,529

 
66

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income (loss) before income taxes
 
$
(55
)
 
$
83

 
$
123

 
$
59

 
$
18

 
$
(73
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
99.6
%
 
91.6
%
 
88.4
%
 
91.7
%
 
95.8
%
 
3.8
 %
Policy acquisition costs and other insurance expenses
 
12.7
%
 
12.5
%
 
14.4
%
 
12.8
%
 
13.0
%
 
(0.3
)%
Other operating expenses
 
2.5
%
 
2.5
%
 
2.5
%
 
2.6
%
 
2.4
%
 
0.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
—

 
$
1

 
$
—

 
$
—

 
$
(1
)
 
$
1

Adjusted operating income (loss) before income taxes
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 8

    

Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Asset-Intensive
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
12

 
$
11

 
$
12

 
$
9

 
$
7

 
$
5

Investment income, net of related expenses
 
233

 
272

 
254

 
204

 
197

 
36

Investment related gains (losses), net
 
(160
)
 
(1
)
 
58

 
17

 
1

 
(161
)
Other revenue
 
28

 
28

 
36

 
50

 
23

 
5

Total revenues
 
113

 
310

 
360

 
280

 
228

 
(115
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
53

 
51

 
49

 
49

 
48

 
5

Interest credited
 
129

 
144

 
183

 
124

 
89

 
40

Policy acquisition costs and other insurance expenses
 
(38
)
 
28

 
21

 
25

 
19

 
(57
)
Other operating expenses
 
7

 
9

 
7

 
10

 
7

 
—

Total benefits and expenses
 
151

 
232

 
260

 
208

 
163

 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(38
)
 
$
78

 
$
100

 
$
72

 
$
65

 
$
(103
)
 
 

 

 

 

 

 

See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 9

    

Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Asset-Intensive
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
12

 
$
11

 
$
12

 
$
9

 
$
7

 
$
5

Investment income, net of related expenses
 
232

 
272

 
254

 
203

 
203

 
29

Other revenue
 
25

 
28

 
36

 
50

 
23

 
2

Total revenues
 
269

 
311

 
302

 
262

 
233

 
36

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
53

 
51

 
49

 
49

 
48

 
5

Interest credited
 
117

 
154

 
147

 
106

 
87

 
30

Policy acquisition costs and other insurance expenses
 
49

 
32

 
34

 
28

 
31

 
18

Other operating expenses
 
7

 
9

 
7

 
10

 
7

 
—

Total benefits and expenses
 
226

 
246

 
237

 
193

 
173

 
53

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
43

 
$
65

 
$
65

 
$
69

 
$
60

 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.

                                        
 
rgaqfslogoaa01a13.jpg
Page 10

    

Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Asset-Intensive (continued)
(USD millions)
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
2020
 
2019
 
2019
 
2019
 
2019
Annuity account values:
 
 
 
 
 
 
 
 
 
 
Fixed annuities (deferred)
 
$
11,022

 
$
11,140

 
$
11,149

 
$
10,374

 
$
8,311

 
 
 
 
 
 
 
 
 
 
 
Net interest spread (fixed annuities)
 
1.4
%
 
1.5
%
 
1.4
%
 
1.5
%
 
1.6
%
 
 
 
 
 
 
 
 
 
 
 
Equity-indexed annuities
 
$
3,531

 
$
3,589

 
$
3,635

 
$
3,656

 
$
3,712

 
 
 
 
 
 
 
 
 
 
 
Variable annuities account values
 
 
 
 
 
 
 
 
 
 
No riders
 
$
718

 
$
711

 
$
1,471

 
$
1,486

 
$
702

GMDB only
 
762

 
837

 
160

 
164

 
164

GMIB only
 
20

 
23

 
22

 
22

 
22

GMAB only
 
3

 
4

 
4

 
4

 
5

GMWB only
 
937

 
1,123

 
1,100

 
1,127

 
1,132

GMDB / WB
 
232

 
278

 
272

 
278

 
281

Other
 
15

 
18

 
17

 
17

 
18

Total variable annuities account values
 
$
2,687

 
$
2,994

 
$
3,046

 
$
3,098

 
$
2,324

 
 
 
 
 
 
 
 
 
 
 
Fair value of liabilities associated with living benefit riders
 
$
291

 
$
163

 
$
210

 
$
168

 
$
150

 
 
 
 
 
 
 
 
 
 
 
Interest-sensitive contract liabilities associated with:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts
 
$
991

 
$
907

 
$
969

 
$
1,003

 
$
999

 
 
 
 
 
 
 
 
 
 
 
Bank-owned life insurance (BOLI)
 
$
2,435

 
$
2,459

 
$
2,452

 
$
602

 
$
599

 
 
 
 
 
 
 
 
 
 
 
Other asset-intensive business
 
$
128

 
$
130

 
$
133

 
$
133

 
$
136

 
 
 
 
 
 
 
 
 
 
 
Future policy benefits associated with:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payout annuities
 
$
4,713

 
$
4,776

 
$
4,844

 
$
4,906

 
$
4,974



                                        
 
rgaqfslogoaa01a13.jpg
Page 11

    

Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Capital Solutions
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
1

 
$
1

 
$
1

 
$
1

 
$
1

 
$
—

Other revenue
 
25

 
29

 
22

 
21

 
25

 
—

Total revenues
 
26

 
30

 
23

 
22

 
26

 
—

 
 
 
 
 
 
 
 
 
 
 
 

Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 

Policy acquisition costs and other insurance expenses
 
—

 
1

 
—

 
(1
)
 
6

 
(6
)
Other operating expenses
 
3

 
3

 
4

 
3

 
2

 
1

Total benefits and expenses
 
3

 
4

 
4

 
2

 
8

 
(5
)
 
 

 

 

 

 

 

Income before income taxes
 
$
23

 
$
26

 
$
19

 
$
20

 
$
18

 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 12

    

Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Capital Solutions
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
1

 
$
1

 
$
1

 
$
1

 
$
1

 
$
—

Other revenue
 
25

 
29

 
22

 
21

 
25

 
—

Total revenues
 
26

 
30

 
23

 
22

 
26

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Policy acquisition costs and other insurance expenses
 
—

 
1

 
—

 
(1
)
 
6

 
(6
)
Other operating expenses
 
3

 
3

 
4

 
3

 
2

 
1

Total benefits and expenses
 
3

 
4

 
4

 
2

 
8

 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
23

 
$
26

 
$
19

 
$
20

 
$
18

 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 13

    

Reinsurance Group of America, Incorporated
Canada Traditional
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
260

 
$
276

 
$
271

 
$
264

 
$
255

 
$
5

Investment income, net of related expenses
 
49

 
52

 
53

 
51

 
49

 
—

Investment related gains (losses), net
 
(12
)
 
3

 
1

 
3

 
7

 
(19
)
Other revenue
 
(1
)
 
—

 
—

 
—

 
1

 
(2
)
Total revenues
 
296

 
331

 
325

 
318

 
312

 
(16
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
220

 
235

 
216

 
206

 
200

 
20

Policy acquisition costs and other insurance expenses
 
45

 
56

 
57

 
57

 
54

 
(9
)
Other operating expenses
 
8

 
12

 
9

 
9

 
7

 
1

Total benefits and expenses
 
273

 
303

 
282

 
272

 
261

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
23

 
$
28

 
$
43

 
$
46

 
$
51

 
$
(28
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
84.6
%
 
85.1
%
 
79.7
%
 
78.0
%
 
78.4
%
 
6.2
 %
Policy acquisition costs and other insurance expenses
 
17.3
%
 
20.3
%
 
21.0
%
 
21.6
%
 
21.2
%
 
(3.9
)%
Other operating expenses
 
3.1
%
 
4.3
%
 
3.3
%
 
3.4
%
 
2.7
%
 
0.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(3
)
 
$
—

 
$
(3
)
 
$
(9
)
 
$
(13
)
 
$
10

Income before income taxes
 
$
1

 
$
—

 
$
—

 
$
(2
)
 
$
(3
)
 
$
4

 
 
 
 
 
 
 
 
 
 
 
 
 
Creditor reinsurance net premiums
 
$
17

 
$
27

 
$
29

 
$
27

 
$
27

 
$
(10
)
 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 14

    

Reinsurance Group of America, Incorporated
Canada Traditional
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
260

 
$
276

 
$
271

 
$
264

 
$
255

 
$
5

Investment income, net of related expenses
 
48

 
52

 
53

 
51

 
49

 
(1
)
Investment related gains, net
 
2

 
2

 
2

 
2

 
1

 
1

Other revenue
 
(1
)
 
—

 
—

 
—

 
1

 
(2
)
Total revenues
 
309

 
330

 
326

 
317

 
306

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
220

 
235

 
216

 
206

 
200

 
20

Policy acquisition costs and other insurance expenses
 
45

 
56

 
57

 
57

 
54

 
(9
)
Other operating expenses
 
8

 
12

 
9

 
9

 
7

 
1

Total benefits and expenses
 
273

 
303

 
282

 
272

 
261

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
36

 
$
27

 
$
44

 
$
45

 
$
45

 
$
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
84.6
%
 
85.1
%
 
79.7
%
 
78.0
%
 
78.4
%
 
6.2
 %
Policy acquisition costs and other insurance expenses
 
17.3
%
 
20.3
%
 
21.0
%
 
21.6
%
 
21.2
%
 
(3.9
)%
Other operating expenses
 
3.1
%
 
4.3
%
 
3.3
%
 
3.4
%
 
2.7
%
 
0.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(3
)
 
$
—

 
$
(3
)
 
$
(9
)
 
$
(13
)
 
$
10

Adjusted operating income before income taxes
 
$
1

 
$
(1
)
 
$
—

 
$
(2
)
 
$
(2
)
 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
Creditor reinsurance net premiums
 
$
17

 
$
27

 
$
29

 
$
27

 
$
27

 
$
(10
)
 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 15

    

Reinsurance Group of America, Incorporated
Canada Financial Solutions (1)
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
21

 
$
22

 
$
22

 
$
23

 
$
22

 
$
(1
)
Investment income, net of related expenses
 
1

 
1

 
1

 
—

 
1

 
—

Other revenue
 
2

 
4

 
1

 
1

 
1

 
1

Total revenues
 
24

 
27

 
24

 
24

 
24

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
20

 
19

 
20

 
20

 
21

 
(1
)
Policy acquisition costs and other insurance expenses
 
—

 
1

 
—

 
1

 
—

 
—

Other operating expenses
 
1

 
—

 
1

 
(1
)
 
2

 
(1
)
Total benefits and expenses
 
21

 
20

 
21

 
20

 
23

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
3

 
$
7

 
$
3

 
$
4

 
$
1

 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
(1
)
 
$
1

Income before income taxes
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Canada Financial Solutions operations includes longevity and fee-based transactions.
 
 
 
 
(2) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 16

    

Reinsurance Group of America, Incorporated
Canada Financial Solutions (1)
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
21

 
$
22

 
$
22

 
$
23

 
$
22

 
$
(1
)
Investment income, net of related expenses
 
1

 
1

 
1

 
—

 
1

 
—

Other revenue
 
2

 
4

 
1

 
1

 
1

 
1

Total revenues
 
24

 
27

 
24

 
24

 
24

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
20

 
19

 
20

 
20

 
21

 
(1
)
Policy acquisition costs and other insurance expenses
 
—

 
1

 
—

 
1

 
—

 
—

Other operating expenses
 
1

 
—

 
1

 
(1
)
 
2

 
(1
)
Total benefits and expenses
 
21

 
20

 
21

 
20

 
23

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
3

 
$
7

 
$
3

 
$
4

 
$
1

 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
(1
)
 
$
1

Adjusted operating income before income taxes
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Canada Financial Solutions operations includes longevity and fee-based transactions.
 
 
(2) Compared to comparable prior year period.
 


                                        
 
rgaqfslogoaa01a13.jpg
Page 17

    

Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Traditional
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 

 
 
Net premiums
 
$
390

 
$
368

 
$
359

 
$
351

 
$
364

 
$
26

Investment income, net of related expenses
 
19

 
19

 
17

 
18

 
19

 
—

Other revenue
 
(2
)
 
1

 
2

 
1

 
1

 
(3
)
Total revenues
 
407

 
388

 
378

 
370

 
384

 
23

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 

 
 
Claims and other policy benefits
 
334

 
300

 
297

 
296

 
312

 
22

Policy acquisition costs and other insurance expenses
 
30

 
30

 
27

 
28

 
29

 
1

Other operating expenses
 
26

 
35

 
29

 
30

 
27

 
(1
)
Total benefits and expenses
 
390

 
365

 
353

 
354

 
368

 
22

 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
17

 
$
23

 
$
25

 
$
16

 
$
16

 
$
1

 
 
 
 
 
 
 
 
 
 

 
 
Loss and expense ratios:
 

 



 

 

 
 
Claims and other policy benefits
 
85.6
%
 
81.5
%
 
82.7
%
 
84.3
%
 
85.8
%
 
(0.2
)%
Policy acquisition costs and other insurance expenses
 
7.7
%
 
8.2
%
 
7.4
%
 
7.9
%
 
8.2
%
 
(0.5
)%
Other operating expenses
 
6.7
%
 
9.5
%
 
8.1
%
 
8.6
%
 
7.3
%
 
(0.6
)%
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(13
)
 
$
(4
)
 
$
(17
)
 
$
(23
)
 
$
(33
)
 
$
20

Income before income taxes
 
$
—

 
$
(1
)
 
$
(1
)
 
$
(1
)
 
$
(2
)
 
$
2

 
 
 
 
 
 
 
 
 
 

 
 
Critical illness net premiums
 
$
42

 
$
42

 
$
49

 
$
43

 
$
44

 
$
(2
)
 
 
 
 
 
 
 
 
 
 

 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 18

    

Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Traditional
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
390

 
$
368

 
$
359

 
$
351

 
$
364

 
$
26

Investment income, net of related expenses
 
19

 
19

 
17

 
18

 
19

 
—

Other revenue
 
(2
)
 
1

 
2

 
1

 
1

 
(3
)
Total revenues
 
407

 
388

 
378

 
370

 
384

 
23

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
334

 
300

 
297

 
296

 
312

 
22

Policy acquisition costs and other insurance expenses
 
30

 
30

 
27

 
28

 
29

 
1

Other operating expenses
 
26

 
35

 
29

 
30

 
27

 
(1
)
Total benefits and expenses
 
390

 
365

 
353

 
354

 
368

 
22

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
17

 
$
23

 
$
25

 
$
16

 
$
16

 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
85.6
%
 
81.5
%
 
82.7
%
 
84.3
%
 
85.8
%
 
(0.2
)%
Policy acquisition costs and other insurance expenses
 
7.7
%
 
8.2
%
 
7.4
%
 
7.9
%
 
8.2
%
 
(0.5
)%
Other operating expenses
 
6.7
%
 
9.5
%
 
8.1
%
 
8.6
%
 
7.3
%
 
(0.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(13
)
 
$
(4
)
 
$
(17
)
 
$
(23
)
 
$
(33
)
 
$
20

Adjusted operating income before income taxes
 
$
1

 
$
(1
)
 
$
(1
)
 
$
(1
)
 
$
(2
)
 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
42

 
$
42

 
$
49

 
$
43

 
$
44

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 19

    

Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Financial Solutions (1)
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
53

 
$
54

 
$
55

 
$
57

 
$
52

 
$
1

Investment income, net of related expenses
 
28

 
45

 
55

 
47

 
48

 
(20
)
Investment related gains (losses), net
 
(6
)
 
1

 
2

 
3

 
3

 
(9
)
Other revenue
 
3

 
10

 
5

 
7

 
6

 
(3
)
Total revenues
 
78

 
110

 
117

 
114

 
109

 
(31
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 

Claims and other policy benefits
 
53

 
19

 
34

 
47

 
49

 
4

Interest credited
 
(17
)
 
(1
)
 
12

 
3

 
12

 
(29
)
Policy acquisition costs and other insurance expenses
 
1

 
10

 
—

 
1

 
1

 
—

Other operating expenses
 
11

 
10

 
10

 
11

 
9

 
2

Total benefits and expenses
 
48

 
38


56

 
62

 
71

 
(23
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
30

 
$
72

 
$
61

 
$
52

 
$
38

 
$
(8
)
 
 
 
 
 
 
 
 
 
 
 
 

Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 

Net premiums
 
$
(1
)
 
$
—

 
$
(3
)
 
$
(3
)
 
$
(4
)
 
$
3

Income before income taxes
 
$
—

 
$
—

 
$
(3
)
 
$
(3
)
 
$
(3
)
 
$
3

 
 

 

 

 

 

 

See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Europe, Middle East and Africa Financial Solutions operations includes longevity, asset-intensive and fee-based transactions.
(2) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 20

    

Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Financial Solutions (1)
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
53

 
$
54

 
$
55

 
$
57

 
$
52

 
$
1

Investment income, net of related expenses
 
44

 
46

 
43

 
44

 
36

 
8

Investment related gains (losses), net
 
—

 
—

 
—

 
—

 
—

 
—

Other revenue
 
3

 
12

 
5

 
7

 
6

 
(3
)
Total revenues
 
100

 
112

 
103

 
108

 
94

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
53

 
19

 
34

 
47

 
49

 
4

Interest credited
 
(1
)
 
—

 
—

 
—

 
—

 
(1
)
Policy acquisition costs and other insurance expenses
 
1

 
10

 
—

 
1

 
1

 
—

Other operating expenses
 
11

 
10

 
10

 
11

 
9

 
2

Total benefits and expenses
 
64

 
39

 
44

 
59

 
59

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
36

 
$
73

 
$
59

 
$
49

 
$
35

 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(1
)
 
$
—

 
$
(3
)
 
$
(3
)
 
$
(4
)
 
$
3

Adjusted operating income before income taxes
 
$
(1
)
 
$
—

 
$
(3
)
 
$
(3
)
 
$
(2
)
 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
 
 
 
 
 
 
 
 
 
 
 
 
(1) Europe, Middle East and Africa Financial Solutions operations includes longevity, asset-intensive and fee-based transactions.
(2) Compared to comparable prior year period.


                                        
 
rgaqfslogoaa01a13.jpg
Page 21

    

Reinsurance Group of America, Incorporated
Asia Pacific Traditional
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
636

 
$
659

 
$
656

 
$
606

 
$
647

 
$
(11
)
Investment income, net of related expenses
 
27

 
27

 
27

 
24

 
26

 
1

Other revenue
 
4

 
3

 
2

 
4

 
—

 
4

Total revenues
 
667

 
689

 
685

 
634

 
673

 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
555

 
618

 
585

 
568

 
546

 
9

Policy acquisition costs and other insurance expenses
 
49

 
13

 
40

 
(12
)
 
51

 
(2
)
Other operating expenses
 
39

 
46

 
38

 
44

 
39

 
—

Total benefits and expenses
 
643

 
677

 
663

 
600

 
636

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
24

 
$
12

 
$
22

 
$
34

 
$
37

 
$
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
87.3
%
 
93.8
%
 
89.0
%
 
93.7
 %
 
84.5
%
 
2.8
 %
Policy acquisition costs and other insurance expenses
 
7.7
%
 
2.0
%
 
6.1
%
 
(1.9
)%
 
7.8
%
 
(0.1
)%
Other operating expenses
 
6.1
%
 
7.0
%
 
6.1
%
 
7.0
 %
 
6.1
%
 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(16
)
 
$
(3
)
 
$
(12
)
 
$
(23
)
 
$
(27
)
 
$
11

Income before income taxes
 
$
(1
)
 
$
1

 
$
3

 
$
1

 
$
(2
)
 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
256

 
$
266

 
$
294

 
$
243

 
$
252

 
$
4

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 22

    

Reinsurance Group of America, Incorporated
Asia Pacific Traditional
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
636

 
$
659

 
$
656

 
$
606

 
$
647

 
$
(11
)
Investment income, net of related expenses
 
27

 
27

 
27

 
24

 
26

 
1

Other revenue
 
4

 
3

 
2

 
4

 
—

 
4

Total revenues
 
667

 
689

 
685

 
634

 
673

 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
555

 
618

 
585

 
568

 
546

 
9

Policy acquisition costs and other insurance expenses
 
49

 
13

 
40

 
(12
)
 
51

 
(2
)
Other operating expenses
 
39

 
46

 
38

 
44

 
39

 
—

Total benefits and expenses
 
643

 
677

 
663

 
600

 
636

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
24

 
$
12

 
$
22

 
$
34

 
$
37

 
$
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
87.3
%
 
93.8
%
 
89.0
%
 
93.7
 %
 
84.5
%
 
2.8
 %
Policy acquisition costs and other insurance expenses
 
7.7
%
 
2.0
%
 
6.1
%
 
(1.9
)%
 
7.8
%
 
(0.1
)%
Other operating expenses
 
6.1
%
 
7.0
%
 
6.1
%
 
7.0
 %
 
6.1
%
 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(16
)
 
$
(3
)
 
$
(12
)
 
$
(23
)
 
$
(27
)
 
$
11

Adjusted operating income before income taxes
 
$
(1
)
 
$
1

 
$
3

 
$
1

 
$
(2
)
 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
256

 
$
266

 
$
294

 
$
243

 
$
252

 
$
4

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 23

    

Reinsurance Group of America, Incorporated
Asia Pacific Financial Solutions (1)
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
74

 
$
38

 
$
30

 
$
44

 
$
34

 
$
40

Investment income, net of related expenses
 
17

 
15

 
10

 
11

 
10

 
7

Investment related gains (losses), net
 
(33
)
 
7

 
(1
)
 
(1
)
 
4

 
(37
)
Other revenue
 
10

 
8

 
7

 
5

 
7

 
3

Total revenues
 
68

 
68

 
46

 
59

 
55

 
13

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
62

 
34

 
28

 
37

 
32

 
30

Interest credited
 
13

 
11

 
7

 
6

 
7

 
6

Policy acquisition costs and other insurance expenses
 
14

 
5

 
5

 
10

 
5

 
9

Other operating expenses
 
4

 
5

 
4

 
4

 
5

 
(1
)
Total benefits and expenses
 
93

 
55

 
44

 
57

 
49

 
44

 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(25
)
 
$
13

 
$
2

 
$
2

 
$
6

 
$
(31
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
—

 
$
—

 
$
1

 
$
—

 
$
(1
)
 
$
1

Income (loss) before income taxes
 
$
2

 
$
—

 
$
1

 
$
—

 
$
—

 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Asia Pacific Financial Solutions operations includes asset-intensive and fee-based transactions.
(2) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 24

    

Reinsurance Group of America, Incorporated
Asia Pacific Financial Solutions (1)
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
74

 
$
38

 
$
30

 
$
44

 
$
34

 
$
40

Investment income, net of related expenses
 
17

 
15

 
10

 
11

 
10

 
7

Investment related gains, net
 
2

 
2

 
2

 
1

 
1

 
1

Other revenue
 
10

 
8

 
7

 
5

 
7

 
3

Total revenues
 
103

 
63

 
49

 
61

 
52

 
51

 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
62

 
34

 
28

 
37

 
32

 
30

Interest credited
 
13

 
11

 
7

 
6

 
7

 
6

Policy acquisition costs and other insurance expenses
 
14

 
5

 
5

 
10

 
5

 
9

Other operating expenses
 
4

 
5

 
4

 
4

 
5

 
(1
)
Total benefits and expenses
 
93

 
55

 
44

 
57

 
49

 
44

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
10

 
$
8

 
$
5

 
$
4

 
$
3

 
$
7

 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
—

 
$
—

 
$
1

 
$
—

 
$
(1
)
 
$
1

Adjusted operating income before income taxes
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Asia Pacific Financial Solutions operations includes asset-intensive and fee-based transactions.
(2) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
rgaqfslogoaa01a13.jpg
Page 25

    

Reinsurance Group of America, Incorporated
Corporate and Other
GAAP Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
58

 
$
45

 
$
51

 
$
55

 
$
43

 
$
15

Investment related gains (losses), net
 
(67
)
 
10

 
(1
)
 
(6
)
 
(1
)
 
(66
)
Other revenue
 
1

 
12

 
10

 
13

 
26

 
(25
)
Total revenues
 
(8
)
 
67

 
60

 
62

 
68

 
(76
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Interest credited
 
2

 
7

 
4

 
6

 
5

 
(3
)
Policy acquisition costs and other insurance income
 
(28
)
 
(29
)
 
(29
)
 
(29
)
 
(29
)
 
1

Other operating expenses
 
62

 
75

 
73

 
75

 
71

 
(9
)
Interest expense
 
41

 
44

 
46

 
43

 
40

 
1

Collateral finance and securitization expense
 
6

 
6

 
7

 
8

 
8

 
(2
)
Total benefits and expenses
 
83

 
103

 
101

 
103

 
95

 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss before income taxes
 
$
(91
)
 
$
(36
)
 
$
(41
)
 
$
(41
)
 
$
(27
)
 
$
(64
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Loss before income taxes
 
$
2

 
$
—

 
$
—

 
$
—

 
$
—

 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 26

    

Reinsurance Group of America, Incorporated
Corporate and Other
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
58

 
$
45

 
$
51

 
$
55

 
$
43

 
$
15

Investment related gains, net
 
1

 
2

 
1

 
—

 
3

 
(2
)
Other revenue
 
1

 
12

 
10

 
13

 
26

 
(25
)
Total revenues
 
60

 
59

 
62

 
68

 
72

 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Interest credited
 
2

 
7

 
4

 
6

 
5

 
(3
)
Policy acquisition costs and other insurance income
 
(28
)
 
(29
)
 
(29
)
 
(29
)
 
(29
)
 
1

Other operating expenses
 
62

 
75

 
73

 
75

 
71

 
(9
)
Interest expense
 
37

 
40

 
37

 
41

 
37

 
—

Collateral finance and securitization expense
 
6

 
6

 
7

 
8

 
8

 
(2
)
Total benefits and expenses
 
79

 
99

 
92

 
101

 
92

 
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating loss before income taxes
 
$
(19
)
 
$
(40
)
 
$
(30
)
 
$
(33
)
 
$
(20
)
 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating loss before income taxes
 
$
(1
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 27

    

Reinsurance Group of America, Incorporated
Summary of Segment GAAP Income
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
U.S. and Latin America:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
$
(62
)
 
$
85

 
$
113

 
$
55

 
$
12

 
$
(74
)
Financial Solutions:
 
 
 
 
 
 
 
 
 
 
 
 
Asset Intensive
 
(38
)
 
78

 
100

 
72

 
65

 
(103
)
Capital Solutions
 
23

 
26

 
19

 
20

 
18

 
5

Total U.S. and Latin America
 
(77
)
 
189

 
232

 
147

 
95

 
(172
)
Canada:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
23

 
28

 
43

 
46

 
51

 
(28
)
Financial Solutions
 
3

 
7

 
3

 
4

 
1

 
2

Total Canada
 
26

 
35

 
46

 
50

 
52

 
(26
)
Europe, Middle East and Africa:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
17

 
23

 
25

 
16

 
16

 
1

Financial Solutions
 
30

 
72

 
61

 
52

 
38

 
(8
)
Total Europe, Middle East and Africa
 
47

 
95

 
86

 
68

 
54

 
(7
)
Asia Pacific:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
24

 
12

 
22

 
34

 
37

 
(13
)
Financial Solutions
 
(25
)
 
13

 
2

 
2

 
6

 
(31
)
Total Asia Pacific
 
(1
)
 
25

 
24

 
36

 
43

 
(44
)
Corporate and Other
 
(91
)
 
(36
)
 
(41
)
 
(41
)
 
(27
)
 
(64
)
Consolidated income (loss) before income taxes
 
$
(96
)
 
$
308

 
$
347

 
$
260

 
$
217

 
$
(313
)
 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.


                                        
 
rgaqfslogoaa01a13.jpg
Page 28

    

Reinsurance Group of America, Incorporated
Summary of Segment Adjusted Operating Income
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
vs. PY
Quarter
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
U.S. and Latin America:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
$
(55
)
 
$
83

 
$
123

 
$
59

 
$
18

 
$
(73
)
Financial Solutions:
 
 
 
 
 
 
 
 
 
 
 

Asset Intensive
 
43

 
65

 
65

 
69

 
60

 
(17
)
Capital Solutions
 
23

 
26

 
19

 
20

 
18

 
5

Total U.S. and Latin America
 
11

 
174

 
207

 
148

 
96

 
(85
)
Canada:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
36

 
27

 
44

 
45

 
45

 
(9
)
Financial Solutions
 
3

 
7

 
3

 
4

 
1

 
2

Total Canada
 
39

 
34

 
47

 
49

 
46

 
(7
)
Europe, Middle East and Africa:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
17

 
23

 
25

 
16

 
16

 
1

Financial Solutions
 
36

 
73

 
59

 
49

 
35

 
1

Total Europe, Middle East and Africa
 
53

 
96

 
84

 
65

 
51

 
2

Asia Pacific:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
24

 
12

 
22

 
34

 
37

 
(13
)
Financial Solutions
 
10

 
8

 
5

 
4

 
3

 
7

Total Asia Pacific
 
34

 
20

 
27

 
38

 
40

 
(6
)
Corporate and Other
 
(19
)
 
(40
)
 
(30
)
 
(33
)
 
(20
)
 
1

Consolidated adjusted operating income before income taxes
 
$
118

 
$
284

 
$
335

 
$
267

 
$
213

 
$
(95
)
 
 
 
 
 
 
 
 
 
 
 
 
 
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
 



                                        
 
rgaqfslogoaa01a13.jpg
Page 29

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
Cash and Invested Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
2020
 
2019
 
2019
 
2019
 
2019
Fixed maturity securities, available-for-sale (1)
 
$
48,555

 
$
51,121

 
$
49,481

 
$
46,189

 
$
41,738

Equity securities
 
112

 
320

 
135

 
147

 
90

Mortgage loans on real estate
 
6,014

 
5,706

 
5,647

 
5,405

 
5,118

Policy loans
 
1,314

 
1,319

 
1,290

 
1,320

 
1,312

Funds withheld at interest
 
5,258

 
5,662

 
5,614

 
5,696

 
5,730

Short-term investments
 
117

 
64

 
108

 
159

 
119

Other invested assets
 
2,542

 
2,363

 
2,215

 
2,122

 
2,007

Cash and cash equivalents
 
2,820

 
1,449

 
2,636

 
2,288

 
2,020

Total cash and invested assets
 
$
66,732

 
$
68,004

 
$
67,126

 
$
63,326

 
$
58,134

 
 
 
 
 
 
 
 
 
 
 
(1) The Company holds various types of fixed maturity securities available-for-sale and classifies them as corporate securities (“Corporate”), Canadian and Canadian provincial government securities (“Canadian government”), residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”), commercial mortgage-backed securities (“CMBS”), U.S. government and agencies (“U.S. government”), state and political subdivisions, and other foreign government, supernational and foreign government-sponsored enterprises (“Other foreign government”).

 
Investment Income and Yield Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
vs. PY
Quarter
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Average invested assets at amortized cost (1)
 
$
29,728

 
$
29,513

 
$
29,043

 
$
28,487

 
$
28,097

 
$
1,631

Net investment income (1)
 
$
299

 
$
330

 
$
344

 
$
307

 
$
310

 
$
(11
)
Annualized investment yield (ratio of net investment income to average invested assets at amortized cost) (1)
 
4.08
%
 
4.55
%
 
4.83
%
 
4.38
%
 
4.49
%
 
(41) bps

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes spread related business (e.g. coinsurance of annuities).
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 30

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized Cost, Allowance for Credit Losses, Gross Unrealized Gains and Losses, and Estimated Fair Values of Fixed Maturity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2020
 
 
Amortized
Cost
 
Allowance for Credit Losses
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated Fair
Value
 
% of
Total
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
29,203

 
$
26

 
$
1,294

 
$
977

 
$
29,494

 
60.8
%
   Canadian government
 
2,793

 
—

 
1,445

 
1

 
4,237

 
8.7
%
   RMBS
 
2,241

 
—

 
77

 
27

 
2,291

 
4.7
%
   ABS
 
2,940

 
—

 
4

 
277

 
2,667

 
5.5
%
   CMBS
 
1,841

 
—

 
24

 
56

 
1,809

 
3.7
%
   U.S. government
 
1,398

 
—

 
244

 
—

 
1,642

 
3.4
%
   State and political subdivisions
 
1,071

 
—

 
108

 
10

 
1,169

 
2.4
%
   Other foreign government
 
5,133

 
7

 
233

 
113

 
5,246

 
10.8
%
Total fixed maturity securities
 
$
46,620

 
$
33

 
$
3,429

 
$
1,461

 
$
48,555

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
December 31, 2019
 
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated Fair
Value
 
% of
Total
 
Impairments in AOCI
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
29,205

 
$
2,269

 
$
81

 
$
31,393

 
61.4
%
 
$
—

   Canadian government
 
3,016

 
1,596

 
—

 
4,612

 
9.0
%
 
—

   RMBS
 
2,339

 
62

 
3

 
2,398

 
4.7
%
 
—

   ABS
 
2,973

 
19

 
14

 
2,978

 
5.8
%
 
—

   CMBS
 
1,841

 
61

 
3

 
1,899

 
3.7
%
 
—

   U.S. government
 
2,096

 
57

 
1

 
2,152

 
4.2
%
 
—

   State and political subdivisions
 
1,074

 
93

 
3

 
1,164

 
2.3
%
 
—

   Other foreign government
 
4,209

 
321

 
5

 
4,525

 
8.9
%
 
—

Total fixed maturity securities
 
$
46,753

 
$
4,478

 
$
110

 
$
51,121

 
100.0
%
 
$
—


                                        
 
rgaqfslogoaa01a13.jpg
Page 31

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
Corporate Fixed Maturity Securities by Industry
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2020
 
December 31, 2019
 
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Average Credit Ratings (1)
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Average Credit Ratings (1)
Financial institutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banking
 
$
5,365

 
$
5,447

 
18.6
%
 
A-
 
$
5,443

 
$
5,804

 
18.6
%
 
A-
Brokerage/asset managers/exchanges
 
775

 
780

 
2.6
%
 
A-
 
756

 
811

 
2.6
%
 
A-
Finance companies
 
299

 
269

 
0.9
%
 
BBB
 
241

 
255

 
0.8
%
 
BBB
Insurance
 
3,280

 
3,302

 
11.2
%
 
A-
 
3,178

 
3,429

 
10.9
%
 
A-
REITs
 
701

 
693

 
2.3
%
 
BBB+
 
716

 
760

 
2.4
%
 
A-
Other finance
 
559

 
565

 
1.9
%
 
A-
 
562

 
594

 
1.9
%
 
A-
      Total financial institutions
 
$
10,979

 
$
11,056

 
37.5
%
 
 
 
$
10,896

 
$
11,653

 
37.2
%
 
 
Industrials
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
1,800

 
$
1,744

 
5.9
%
 
BBB
 
$
1,790

 
$
1,925

 
6.1
%
 
BBB
Capital goods
 
1,293

 
1,265

 
4.3
%
 
BBB
 
1,292

 
1,353

 
4.3
%
 
BBB
Communications
 
2,125

 
2,231

 
7.5
%
 
BBB+
 
2,126

 
2,346

 
7.5
%
 
BBB+
Consumer cyclical
 
1,467

 
1,447

 
4.9
%
 
BBB+
 
1,477

 
1,571

 
5.0
%
 
BBB+
Consumer noncyclical
 
2,909

 
3,087

 
10.4
%
 
BBB+
 
2,898

 
3,147

 
10.0
%
 
BBB+
Energy
 
1,895

 
1,726

 
5.9
%
 
BBB+
 
1,939

 
2,099

 
6.7
%
 
BBB+
Technology
 
1,002

 
1,051

 
3.6
%
 
A-
 
974

 
1,027

 
3.3
%
 
A-
Transportation
 
1,787

 
1,789

 
6.1
%
 
A-
 
1,791

 
1,919

 
6.1
%
 
A-
Other industrial
 
425

 
416

 
1.4
%
 
BBB+
 
405

 
416

 
1.3
%
 
BBB+
       Total industrials
 
$
14,703

 
$
14,756

 
50.0
%
 
 
 
$
14,692

 
$
15,803

 
50.3
%
 
 
Utilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
$
2,752

 
$
2,868

 
9.7
%
 
A-
 
$
2,810

 
$
3,046

 
9.7
%
 
A-
Natural gas
 
415

 
435

 
1.5
%
 
A-
 
475

 
516

 
1.6
%
 
A-
Other utility
 
354

 
379

 
1.3
%
 
BBB+
 
332

 
375

 
1.2
%
 
A-
       Total utilities
 
$
3,521

 
$
3,682

 
12.5
%
 
 
 
$
3,617

 
$
3,937

 
12.5
%
 
 
     Total
 
$
29,203

 
$
29,494

 
100.0
%
 
BBB+
 
$
29,205

 
$
31,393

 
100.0
%
 
BBB+
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The Average Credit Rating designations are based on the ratings from nationally recognized statistical rating organizations (NRSRO), primarily those assigned by Moody’s, S&P and Fitch.
 
 


                                        
 
rgaqfslogoaa01a13.jpg
Page 32

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
Ratings of Fixed Maturity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2020
 
December 31, 2019
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
NAIC Designation (1)
 
Rating Agency Designation (2)
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
1
 
AAA/AA/A
 
$
29,310

 
$
31,660

 
65.2
%
 
$
30,100

 
$
33,284

 
65.2
%
 
$
28,620

 
$
32,128

 
64.9
%
 
$
27,571

 
$
30,513

 
66.1
%
 
$
25,497

 
$
27,674

 
66.3
%
2
 
BBB
 
14,810

 
14,665

 
30.2
%
 
14,366

 
15,514

 
30.3
%
 
14,130

 
15,213

 
30.7
%
 
12,942

 
13,705

 
29.7
%
 
11,873

 
12,245

 
29.3
%
3
 
BB
 
1,877

 
1,727

 
3.6
%
 
1,706

 
1,748

 
3.4
%
 
1,586

 
1,611

 
3.3
%
 
1,389

 
1,408

 
3.0
%
 
1,319

 
1,319

 
3.2
%
4
 
B
 
509

 
452

 
0.9
%
 
514

 
518

 
1.0
%
 
443

 
444

 
0.9
%
 
490

 
495

 
1.1
%
 
420

 
422

 
1.0
%
5
 
CCC
 
101

 
41

 
0.1
%
 
36

 
23

 
—
%
 
30

 
29

 
0.1
%
 
15

 
16

 
—
%
 
13

 
14

 
—
%
6
 
In or near default
 
13

 
10

 
—
%
 
31

 
34

 
0.1
%
 
51

 
56

 
0.1
%
 
51

 
52

 
0.1
%
 
67

 
64

 
0.2
%
 
 
Total
 
$
46,620

 
$
48,555


100.0
%

$
46,753


$
51,121


100.0
%

$
44,860


$
49,481


100.0
%

$
42,458


$
46,189


100.0
%

$
39,189


$
41,738


100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Structured securities held by the Company’s insurance subsidiaries that maintain the NAIC statutory basis of accounting that meet the definition of SSAP No. 43R utilize the NAIC rating methodology.
 All other securities will continue to utilize the NRSRO ratings, as available, or equivalent ratings based on information from the NAIC.
(2) The Rating Agency Designation includes all “+” or “-” at that rating level (e. g. “BBB” includes “BBB+”, “BBB”, and “BBB-”).
 
 
Structured Fixed Maturity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2020
 
December 31, 2019
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
 
Amortized Cost
 
Estimated Fair Value
 
% of Total
RMBS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
$
726

 
$
796

 
11.8
%
 
$
742

 
$
777

 
10.6
%
 
$
787

 
$
834

 
11.9
%
 
$
893

 
$
929

 
14.2
%
 
$
799

 
$
815

 
14.4
%
Non-agency
 
1,515

 
1,495

 
22.1
%
 
1,597

 
1,621

 
22.3
%
 
1,574

 
1,606

 
22.8
%
 
1,322

 
1,348

 
20.7
%
 
1,171

 
1,179

 
20.8
%
Total RMBS
 
2,241

 
2,291

 
33.9
%
 
2,339

 
2,398

 
32.9
%
 
2,361

 
2,440

 
34.7
%
 
2,215

 
2,277

 
34.9
%
 
1,970

 
1,994

 
35.2
%
ABS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateralized loan obligations ("CLOs")
 
1,725

 
1,558

 
23.0
%
 
1,750

 
1,743

 
24.0
%
 
1,590

 
1,581

 
22.4
%
 
1,443

 
1,434

 
22.0
%
 
1,323

 
1,311

 
23.1
%
ABS, excluding CLOs
 
1,215

 
1,109

 
16.4
%
 
1,223

 
1,235

 
17.0
%
 
1,219

 
1,242

 
17.6
%
 
1,039

 
1,060

 
16.3
%
 
920

 
931

 
16.4
%
Total ABS
 
2,940

 
2,667

 
39.4
%
 
2,973

 
2,978

 
41.0
%
 
2,809

 
2,823

 
40.0
%
 
2,482

 
2,494

 
38.3
%
 
2,243

 
2,242

 
39.5
%
CMBS
 
1,841

 
1,809

 
26.7
%
 
1,841

 
1,899

 
26.1
%
 
1,698

 
1,782

 
25.3
%
 
1,687

 
1,747

 
26.8
%
 
1,405

 
1,432

 
25.3
%
Total
 
$
7,022

 
$
6,767

 
100.0
%
 
$
7,153

 
$
7,275

 
100.0
%
 
$
6,868

 
$
7,045

 
100.0
%
 
$
6,384

 
$
6,518

 
100.0
%
 
$
5,618

 
$
5,668

 
100.0
%
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 33

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
Gross Unrealized Losses Aging
Fixed Maturity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2020
 
December 31, 2019
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
 
Gross Unrealized Losses
 
% of Total
 
Gross Unrealized Losses
 
% of Total
 
Gross Unrealized Losses
 
% of Total
 
Gross Unrealized Losses
 
% of Total
 
Gross Unrealized Losses
 
% of Total
Less than 20%
 
$
1,052

 
72.0
%
 
$
76

 
69.1
%
 
$
76

 
74.5
%
 
$
73

 
76.1
%
 
$
208

 
90.5
%
20% or more for less than six months
 
409

 
28.0
%
 
20

 
18.2
%
 
10

 
9.8
%
 
22

 
22.9
%
 
21

 
9.1
%
20% or more for six months or greater
 
—

 
—
%
 
14

 
12.7
%
 
16

 
15.7
%
 
1

 
1.0
%
 
1

 
0.4
%
Total
 
$
1,461


100.0
%
 
$
110


100.0
%
 
$
102


100.0
%
 
$
96


100.0
%
 
$
230

 
100.0
%

 

 



                                        
 
rgaqfslogoaa01a13.jpg
Page 34

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
Fixed Maturity Securities Below Amortized Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
Less than 12 months
 
Equal to or greater than 12 months
 
Total
 
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
Investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
9,666

 
$
729

 
$
93

 
$
18

 
$
9,759

 
$
747

   Canadian government
 
—

 
—

 
6

 
1

 
6

 
1

   RMBS
 
1,047

 
25

 
41

 
2

 
1,088

 
27

   ABS
 
1,936

 
203

 
552

 
65

 
2,488

 
268

   CMBS
 
913

 
52

 
21

 
1

 
934

 
53

   U.S. government
 
—

 
—

 
—

 
—

 
—

 
—

   State and political subdivisions
 
158

 
9

 
12

 
1

 
170

 
10

   Other foreign government
 
1,813

 
94

 
7

 
4

 
1,820

 
98

Total investment grade securities
 
$
15,533

 
$
1,112

 
$
732

 
$
92

 
$
16,265

 
$
1,204

 
 
 
 
 
 
 
 
 
 
 
 
 
Below investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
1,106

 
$
219

 
$
66

 
$
11

 
$
1,172

 
$
230

   ABS
 
15

 
9

 
—

 
—

 
15

 
9

   CMBS
 
23

 
3

 
—

 
—

 
23

 
3

   Other foreign government
 
150

 
13

 
7

 
2

 
157

 
15

Total below investment grade securities
 
$
1,294


$
244


$
73


$
13


$
1,367


$
257

Total fixed maturity securities
 
$
16,827

 
$
1,356

 
$
805

 
$
105

 
$
17,632

 
$
1,461

 
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
rgaqfslogoaa01a13.jpg
Page 35

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
Fixed Maturity Securities Below Amortized Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
Less than 12 months
 
Equal to or greater than 12 months
 
Total
 
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
Investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
1,936

 
$
29

 
$
293

 
$
7

 
$
2,229

 
$
36

   Canadian government
 
—

 
—

 
—

 
—

 
—

 
—

   RMBS
 
367

 
2

 
84

 
1

 
451

 
3

   ABS
 
773

 
5

 
739

 
9

 
1,512

 
14

   CMBS
 
253

 
3

 
—

 
—

 
253

 
3

   U.S. government
 
49

 
1

 
—

 
—

 
49

 
1

   State and political subdivisions
 
103

 
2

 
12

 
1

 
115

 
3

   Other foreign government
 
278

 
4

 
—

 
—

 
278

 
4

Total investment grade securities
 
$
3,759

 
$
46

 
$
1,128

 
$
18

 
$
4,887

 
$
64

 
 
 
 
 
 
 
 
 
 
 
 
 
Below investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
220

 
$
38

 
$
100

 
$
7

 
$
320

 
$
45

   Other foreign government
 
—

 
—

 
10

 
1

 
10

 
1

Total below investment grade securities
 
$
220

 
$
38

 
$
110

 
$
8

 
$
330

 
$
46

Total fixed maturity securities
 
$
3,979

 
$
84

 
$
1,238

 
$
26

 
$
5,217

 
$
110



                                        
 
rgaqfslogoaa01a13.jpg
Page 36

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Investment Related Gains and Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
vs. PY
Quarter
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
   Impairments and change in allowance for credit losses on fixed maturity securities
 
$
(34
)
 
$
(13
)
 
$
(9
)
 
$
—

 
$
(9
)
 
$
(25
)
   Gain on investment activity
 
27

 
35

 
68

 
20

 
28

 
(1
)
   Loss on investment activity
 
(8
)
 
(11
)
 
(13
)
 
(7
)
 
(19
)
 
11

Net gains (losses) on fixed maturity securities available-for-sale
 
(15
)
 
11

 
46

 
13

 
—

 
(15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gains (losses) on equity securities
 
(23
)
 
5

 
4

 
3

 
4

 
(27
)
Other impairment losses and change in mortgage loan provision
 
(13
)
 
—

 
(4
)
 
(6
)
 
(2
)
 
(11
)
Other non-derivative gain (loss), net
 
9

 
(1
)
 
4

 
5

 
5

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
Free-standing derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
Credit default swaps
 
(24
)
 
8

 
2

 
5

 
15

 
(39
)
Interest rate swaps - non-hedged
 
106

 
(32
)
 
39

 
34

 
24

 
82

Foreign currency swaps - non-hedged
 
(13
)
 
4

 
1

 
(6
)
 
1

 
(14
)
Foreign currency swaps - hedged
 
(8
)
 
2

 
(2
)
 
(3
)
 
(1
)
 
(7
)
Financial futures
 
44

 
(16
)
 
—

 
(8
)
 
(22
)
 
66

CPI swaps
 
(40
)
 
6

 
(8
)
 
(7
)
 
(9
)
 
(31
)
Equity options
 
53

 
(12
)
 
—

 
(5
)
 
(23
)
 
76

Foreign currency forwards
 
(3
)
 
1

 
—

 
—

 
—

 
(3
)
Total free-standing derivatives
 
115

 
(39
)
 
32

 
10

 
(15
)
 
130

 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
   Modified coinsurance and funds withheld treaties
 
(230
)
 
(1
)
 
9

 
5

 
(2
)
 
(228
)
   GMXB
 
(128
)
 
47

 
(42
)
 
(18
)
 
18

 
(146
)
Total embedded derivatives
 
(358
)
 
46

 
(33
)
 
(13
)
 
16

 
(374
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on total derivatives
 
(243
)
 
7

 
(1
)
 
(3
)
 
1

 
(244
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment related gains (losses), net
 
$
(285
)
 
$
22

 
$
49

 
$
12

 
$
8

 
$
(293
)
 

 

                                        
 
rgaqfslogoaa01a13.jpg
Page 37

    





rgalogospelledoutaa01a13.jpg


Appendix
 
 
 
 
 
 
Reconciliations of GAAP to Non-GAAP Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
rgaqfslogoaa01a13.jpg
Page 38

    

Reinsurance Group of America, Incorporated
Reconciliations of GAAP Income to Adjusted Operating Income
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
U.S. & Latin America Traditional
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(62
)
 
$
85

 
$
113

 
$
55

 
$
12

 
$
(74
)
Change in value of modified coinsurance and
 
 
 
 
 
 
 
 
 
 
 
 
funds withheld embedded derivatives (1)
 
7

 
(2
)
 
10

 
4

 
6

 
1

Adjusted operating income (loss) before income taxes
 
$
(55
)
 
$
83

 
$
123

 
$
59

 
$
18

 
$
(73
)
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. & Latin America Asset-Intensive
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(38
)
 
$
78

 
$
100

 
$
72

 
$
65

 
$
(103
)
Investment and derivative (gains) losses (1)
 
(191
)
 
45

 
(81
)
 
(26
)
 
21

 
(212
)
Change in value of modified coinsurance and
 
 
 
 
 
 
 
 
 
 
 
 
funds withheld embedded derivatives (1)
 
223

 
3

 
(19
)
 
(9
)
 
(4
)
 
227

GMXB embedded derivatives (1)
 
128

 
(47
)
 
42

 
18

 
(18
)
 
146

Funds withheld (gains) losses - investment income
 
(1
)
 
—

 
—

 
(1
)
 
6

 
(7
)
EIA embedded derivatives - interest credited
 
12

 
(10
)
 
36

 
18

 
2

 
10

DAC offset, net
 
(87
)
 
(4
)
 
(13
)
 
(3
)
 
(12
)
 
(75
)
Non-investment derivatives
 
(3
)
 
—

 
—

 
—

 
—

 
(3
)
Adjusted operating income before income taxes
 
$
43

 
$
65

 
$
65

 
$
69

 
$
60

 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. & Latin America Capital Solutions
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
23

 
$
26

 
$
19

 
$
20

 
$
18

 
$
5

Adjusted operating income before income taxes
 
$
23

 
$
26

 
$
19

 
$
20

 
$
18

 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
Canada Traditional
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
23

 
$
28

 
$
43

 
$
46

 
$
51

 
$
(28
)
Investment and derivative (gains) losses (1)
 
14

 
(1
)
 
1

 
(1
)
 
(6
)
 
20

Investment income - non-operating FWAI
 
(1
)
 
—

 
—

 
—

 
—

 
(1
)
Adjusted operating income before income taxes
 
$
36

 
$
27

 
$
44

 
$
45

 
$
45

 
$
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Canada Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
3

 
$
7

 
$
3

 
$
4

 
$
1

 
$
2

Adjusted operating income before income taxes
 
$
3

 
$
7

 
$
3

 
$
4

 
$
1

 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 39

    

 
 
 
 
 
 
 
 
 
 
Reinsurance Group of America, Incorporated
Reconciliations of GAAP Income to Adjusted Operating Income
(USD millions)
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
vs. PY
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
Quarter
Europe, Middle East and Africa Traditional
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
17

 
$
23

 
$
25

 
$
16

 
$
16

 
$
1

Adjusted operating income before income taxes
 
$
17

 
$
23

 
$
25

 
$
16

 
$
16

 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Europe, Middle East and Africa Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
30

 
$
72

 
$
61

 
$
52

 
$
38

 
$
(8
)
Investment and derivative (gains) losses (1)
 
6

 
(1
)
 
(2
)
 
(3
)
 
(3
)
 
9

Investment (income) loss on unit-linked variable annuities
 
16

 
1

 
(12
)
 
(3
)
 
(12
)
 
28

Interest credited on unit-linked variable annuities
 
(16
)
 
(1
)
 
12

 
3

 
12

 
(28
)
Non-investment derivatives
 
—

 
2

 
—

 
—

 
—

 
—

Adjusted operating income before income taxes
 
$
36

 
$
73

 
$
59

 
$
49

 
$
35

 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific Traditional
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
24

 
$
12

 
$
22

 
$
34

 
$
37

 
$
(13
)
Adjusted operating income before income taxes
 
$
24

 
$
12

 
$
22

 
$
34

 
$
37

 
$
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(25
)
 
$
13

 
$
2

 
$
2

 
$
6

 
$
(31
)
Investment and derivative (gains) losses (1)
 
35

 
(5
)
 
3

 
2

 
(3
)
 
38

Adjusted operating income before income taxes
 
$
10

 
$
8

 
$
5

 
$
4

 
$
3

 
$
7

 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
 
Loss before income taxes
 
$
(91
)
 
$
(36
)
 
$
(41
)
 
$
(41
)
 
$
(27
)
 
$
(64
)
Investment and derivative (gains) losses (1)
 
68

 
(8
)
 
2

 
6

 
4

 
64

Interest expense on uncertain tax positions
 
4

 
4

 
9

 
2

 
3

 
1

Adjusted operating loss before income taxes
 
$
(19
)
 
$
(40
)
 
$
(30
)
 
$
(33
)
 
$
(20
)
 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement.


                                        
 
rgaqfslogoaa01a13.jpg
Page 40

    

Reinsurance Group of America, Incorporated
Reconciliations of Stockholders’ Equity to Stockholders’ Equity Excluding AOCI
(USD millions except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity
 
$
9,301

 
$
11,601

 
$
11,524

 
$
10,709

 
$
9,670

Less effect of AOCI:
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustments
 
(223
)
 
(92
)
 
(157
)
 
(123
)
 
(147
)
Unrealized appreciation of securities
 
1,426

 
3,299

 
3,472

 
2,816

 
1,964

Pension and postretirement benefits
 
(73
)
 
(70
)
 
(57
)
 
(51
)
 
(51
)
Stockholders’ equity, excluding AOCI
 
$
8,171

 
$
8,464

 
$
8,266

 
$
8,067

 
$
7,904

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliations of Book Value Per Share to Book Value Per Share Excluding AOCI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
 
 
2020
 
2019
 
2019
 
2019
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share
 
$
150.88

 
$
185.17

 
$
184.06

 
$
170.64

 
$
154.61

Less effect of AOCI:
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustments
 
(3.62
)
 
(1.46
)
 
(2.51
)
 
(1.96
)
 
(2.36
)
Unrealized appreciation of securities
 
23.14

 
52.65

 
55.46

 
44.87

 
31.41

Pension and postretirement benefits
 
(1.19
)
 
(1.12
)
 
(0.91
)
 
(0.81
)
 
(0.82
)
Book value per share, excluding AOCI
 
$
132.55

 
$
135.10

 
$
132.02

 
$
128.54

 
$
126.38



                                        
 
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