EX-99.2 3 qfs3q20.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2
 rgalogospelledoutaa01a13.jpg
Quarterly Financial Supplement
Third 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
3rd 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, Allowance for Credit Losses, 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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Page 2

    

Reinsurance Group of America, Incorporated
Financial Highlights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr vs. PY Quarter
 
 
 
Year-to-Date
(USD millions, except in force & per share data)
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
 
 
 
2020
 
2019
 
Change
Net premiums
 
$
2,825

 
$
2,790

 
$
2,819

 
$
2,986

 
$
2,809

 
$
16

 
 
 
$
8,434

 
$
8,311

 
$
123

Net income (loss)
 
213

 
158

 
(88
)
 
235

 
263

 
(50
)
 
 
 
283

 
635

 
(352
)
Adjusted operating income
 
239

 
87

 
89

 
219

 
256

 
(17
)
 
 
 
415

 
634

 
(219
)
Return on equity - annualized
 
6.6
%
 
5.8
%
 
(3.4
)%
 
8.1
%
 
9.5
%
 
(2.9
)%
 
 
 
 
 
 
 


Return on equity - trailing 12 months
 
4.5
%
 
5.1
%
 
5.8
 %
 
8.4
%
 
7.6
%
 
(3.1
)%
 
 
 
 
 
 
 


Adjusted operating return on equity (ex AOCI):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Annualized
 
10.8
%
 
4.1
%
 
4.3
 %
 
10.5
%
 
12.6
%
 
(1.8
)%
 
 
 
 
 
 
 


Trailing 12 months
 
7.4
%
 
7.8
%
 
9.5
 %
 
10.5
%
 
10.7
%
 
(3.3
)%
 
 
 
 
 
 
 


Total assets
 
$82,127
 
$80,729
 
$75,654
 
$76,731
 
$75,774
 
$6,353
 
 
 
 
 
 
 

Assumed Life Reinsurance In Force (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

U.S. and Latin America Traditional
 
$
1,602.1

 
$
1,620.5

 
$
1,618.4

 
$
1,619.6

 
$
1,618.5

 
$
(16.4
)
 
 
 
 
 
 
 


U.S. and Latin America Financial Solutions
 
5.3

 
5.4

 
5.4

 
5.1

 
5.2

 
0.1

 
 
 
 
 
 
 


Canada Traditional
 
419.5

 
409.2

 
389.5

 
417.1

 
401.7

 
17.8

 
 
 
 
 
 
 


Europe, Middle East and Africa Traditional
 
808.0

 
772.8

 
763.1

 
776.4

 
707.8

 
100.2

 
 
 
 
 
 
 


Asia Pacific Traditional
 
534.4

 
649.5

 
635.6

 
662.0

 
626.6

 
(92.2
)
 
 
 
 
 
 
 


Asia Pacific Financial Solutions
 
0.3

 
0.4

 
0.4

 
—

 
—

 
0.3

 
 
 
 
 
 
 


Total assumed life reinsurance in force
 
$
3,369.6

 
$
3,457.8

 
$
3,412.4

 
$
3,480.2

 
$
3,359.8

 
$
9.8

 
 
 
 
 
 
 
 
Assumed New Business Production (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. and Latin America Traditional
 
$
24.6

 
$
25.3

 
$
34.0

 
$
38.4

 
$
23.9

 
$
0.7

 
 
 
$
83.9

 
$
77.4

 
$
6.5

U.S. and Latin America Financial Solutions
 
(0.1
)
 
—

 
—

 
—

 
3.2

 
(3.3
)
 
 
 
(0.1
)
 
3.2

 
(3.3
)
Canada Traditional
 
8.6

 
9.1

 
12.2

 
14.9

 
8.1

 
0.5

 
 
 
29.9

 
25.5

 
4.4

Europe, Middle East and Africa Traditional
 
28.5

 
65.1

 
32.9

 
55.0

 
32.1

 
(3.6
)
 
 
 
126.5

 
92.4

 
34.1

Asia Pacific Traditional
 
6.7

 
16.6

 
15.7

 
20.2

 
31.0

 
(24.3
)
 
 
 
39.0

 
49.5

 
(10.5
)
Total assumed new business production
 
$
68.3

 
$
116.1

 
$
94.8

 
$
128.5

 
$
98.3

 
$
(30.0
)
 
 
 
$
279.2

 
$
248.0

 
$
31.2

Per Share and Shares Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
3.13

 
$
2.49

 
$
(1.41
)
 
$
3.75

 
$
4.19

 
$
(1.06
)
 
 
 
$
4.39

 
$
10.13

 
$
(5.74
)
Adjusted operating income
 
$
3.52

 
$
1.37

 
$
1.43

 
$
3.49

 
$
4.09

 
$
(0.57
)
 
 
 
$
6.43

 
$
10.12

 
$
(3.69
)
Diluted earnings per share (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) (1)
 
$
3.12

 
$
2.48

 
$
(1.41
)
 
$
3.68

 
$
4.12

 
$
(1.00
)
 
 
 
$
4.36

 
$
9.93

 
$
(5.57
)
Adjusted operating income
 
$
3.51

 
$
1.36

 
$
1.41

 
$
3.43

 
$
4.02

 
$
(0.51
)
 
 
 
$
6.39

 
$
9.92

 
$
(3.53
)
Wgt. average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
67,936

 
63,449

 
62,138

 
62,633

 
62,666

 
5,270

 
 
 
64,518

 
62,701

 
1,817

Diluted
 
68,170

 
63,749

 
63,001

 
63,774

 
63,789

 
4,381

 
 
 
64,985

 
63,919

 
1,066

Common shares issued
 
85,311

 
85,311

 
79,138

 
79,138

 
79,138

 
6,173

 
 
 
85,311

 
79,138

 
6,173

Treasury shares
 
17,374

 
17,375

 
17,492

 
16,482

 
16,529

 
845

 
 
 
17,374

 
16,529

 
845

Common shares outstanding
 
67,937

 
67,936

 
61,646

 
62,656

 
62,609

 
5,328

 
 
 
67,937

 
62,609

 
5,328

Book value per share
 
$
194.49

 
$
184.78

 
$
150.88

 
$
185.17

 
$
184.06

 
$
10.43

 
 
 
 
 
 
 
 
Per share effect of AOCI
 
$
63.13

 
$
55.96

 
$
18.33

 
$
50.07

 
$
52.04

 
$
11.09

 
 
 
 
 
 
 
 
Book value per share, excluding AOCI
 
$
131.36

 
$
128.82

 
$
132.55

 
$
135.10

 
$
132.02

 
$
(0.66
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ dividends paid
 
$
47

 
$
43

 
$
44

 
$
44

 
$
44

 
$
3

 
 
 
$
134

 
$
119

 
$
15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
2,825

 
$
2,790

 
$
2,819

 
$
2,986

 
$
2,809

 
$
16

 
 
 
$
8,434

 
$
8,311

 
$
123

Investment income, net of related expenses
 
654

 
645

 
594

 
677

 
679

 
(25
)
 
 
 
1,893

 
1,843

 
50

Investment related gains (losses), net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Impairments and change in allowance for credit losses on fixed maturity securities
 
13

 
—

 
(34
)
 
(13
)
 
(9
)
 
22

 
 
 
(21
)
 
(18
)
 
(3
)
Other investment related gains (losses), net
 
53

 
81

 
(251
)
 
35

 
58

 
(5
)
 
 
 
(117
)
 
87

 
(204
)
Total investment related gains (losses), net
 
66

 
81

 
(285
)
 
22

 
49

 
17

 
 
 
(138
)
 
69

 
(207
)
Other revenue
 
98

 
90

 
76

 
100

 
91

 
7

 
 
 
264

 
292

 
(28
)
Total revenues
 
3,643

 
3,606

 
3,204

 
3,785

 
3,628

 
15

 
 
 
10,453

 
10,515

 
(62
)
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Claims and other policy benefits
 
2,530

 
2,700

 
2,664

 
2,703

 
2,470

 
60

 
 
 
7,894

 
7,494

 
400

Interest credited
 
196

 
187

 
146

 
180

 
226

 
(30
)
 
 
 
529

 
517

 
12

Policy acquisition costs and other insurance expenses
 
374

 
290

 
248

 
310

 
322

 
52

 
 
 
912

 
894

 
18

Other operating expenses
 
211

 
188

 
195

 
234

 
210

 
1

 
 
 
594

 
634

 
(40
)
Interest expense
 
43

 
42

 
41

 
44

 
46

 
(3
)
 
 
 
126

 
129

 
(3
)
Collateral finance and securitization expense
 
4

 
4

 
6

 
6

 
7

 
(3
)
 
 
 
14

 
23

 
(9
)
Total benefits and expenses
 
3,358

 
3,411

 
3,300

 
3,477

 
3,281

 
77

 
 
 
10,069

 
9,691

 
378

Income (loss) before income taxes
 
285

 
195

 
(96
)
 
308

 
347

 
(62
)
 
 
 
384

 
824

 
(440
)
Provision for income taxes
 
72

 
37

 
(8
)
 
73

 
84

 
(12
)
 
 
 
101

 
189

 
(88
)
Net income (loss)
 
$
213

 
$
158

 
$
(88
)
 
$
235

 
$
263

 
$
(50
)
 
 
 
$
283

 
$
635

 
$
(352
)
Pre-tax adjusted operating income reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
285

 
$
195

 
$
(96
)
 
$
308

 
$
347

 
$
(62
)
 
 
 
$
384

 
$
824

 
$
(440
)
Investment and derivative (gains) losses (1)
 
17

 
31

 
(68
)
 
30

 
(77
)
 
94

 
 
 
(20
)
 
(86
)
 
66

Change in value of modified coinsurance and funds withheld embedded derivatives (1)
 
(116
)
 
(1
)
 
230

 
1

 
(9
)
 
(107
)
 
 
 
113

 
(12
)
 
125

GMXB embedded derivatives (1)
 
29

 
(107
)
 
128

 
(47
)
 
42

 
(13
)
 
 
 
50

 
42

 
8

Funds withheld (gains) losses - investment income
 
(1
)
 
(3
)
 
(2
)
 
—

 
—

 
(1
)
 
 
 
(6
)
 
5

 
(11
)
EIA embedded derivatives - interest credited
 
6

 
7

 
12

 
(10
)
 
36

 
(30
)
 
 
 
25

 
56

 
(31
)
DAC offset, net
 
79

 
(21
)
 
(87
)
 
(4
)
 
(13
)
 
92

 
 
 
(29
)
 
(28
)
 
(1
)
Investment (income) loss on unit-linked variable annuities
 
1

 
(15
)
 
16

 
1

 
(12
)
 
13

 
 
 
2

 
(27
)
 
29

Interest credited on unit-linked variable annuities
 
(1
)
 
15

 
(16
)
 
(1
)
 
12

 
(13
)
 
 
 
(2
)
 
27

 
(29
)
Interest expense on uncertain tax positions
 
1

 
4

 
4

 
4

 
9

 
(8
)
 
 
 
9

 
14

 
(5
)
Non-investment derivatives and other
 
1

 
4

 
(3
)
 
2

 
—

 
1

 
 
 
2

 
—

 
2

Adjusted operating income before income taxes
 
$
301

 
$
109

 
$
118

 
$
284

 
$
335

 
$
(34
)
 
 
 
$
528

 
$
815

 
$
(287
)
(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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
After-tax adjusted operating income reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
213

 
$
158

 
$
(88
)
 
$
235

 
$
263

 
$
(50
)
 
 
 
$
283

 
$
635

 
$
(352
)
Investment and derivative (gains) losses (1)
 
13

 
23

 
(51
)
 
25

 
(61
)
 
74

 
 
 
(15
)
 
(68
)
 
53

Change in value of modified coinsurance and funds withheld embedded derivatives (1)
 
(92
)
 
(1
)
 
182

 
—

 
(7
)
 
(85
)
 
 
 
89

 
(9
)
 
98

GMXB embedded derivatives (1)
 
23

 
(84
)
 
101

 
(37
)
 
33

 
(10
)
 
 
 
40

 
33

 
7

Funds withheld (gains) losses - investment income
 
(1
)
 
(2
)
 
(2
)
 
—

 
—

 
(1
)
 
 
 
(5
)
 
4

 
(9
)
EIA embedded derivatives - interest credited
 
5

 
6

 
9

 
(8
)
 
28

 
(23
)
 
 
 
20

 
44

 
(24
)
DAC offset, net
 
62

 
(16
)
 
(69
)
 
(3
)
 
(10
)
 
72

 
 
 
(23
)
 
(22
)
 
(1
)
Investment (income) loss on unit-linked variable annuities
 
1

 
(12
)
 
13

 
—

 
(9
)
 
10

 
 
 
2

 
(21
)
 
23

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

 
(13
)
 
—

 
9

 
(10
)
 
 
 
(2
)
 
21

 
(23
)
Interest expense on uncertain tax positions
 
1

 
3

 
3

 
3

 
7

 
(6
)
 
 
 
7

 
11

 
(4
)
Non-investment derivatives and other
 
1

 
3

 
(2
)
 
2

 
—

 
1

 
 
 
2

 
—

 
2

Uncertain tax positions and other tax related items
 
14

 
(3
)
 
6

 
2

 
3

 
11

 
 
 
17

 
6

 
11

Adjusted operating income
 
$
239

 
$
87

 
$
89

 
$
219

 
$
256

 
$
(17
)
 
 
 
$
415

 
$
634

 
$
(219
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wgt. average common shares outstanding (diluted)
 
68,170

 
63,749

 
63,001

 
63,774

 
63,789

 
4,381

 
 
 
64,985

 
63,919

 
1,066

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share - adjusted operating income
 
$
3.51

 
$
1.36

 
$
1.41

 
$
3.43

 
$
4.02

 
$
(0.51
)
 
 
 
$
6.39

 
$
9.92

 
$
(3.53
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
12

 
$
(46
)
 
$
(33
)
 
$
(5
)
 
$
(35
)
 
$
47

 
 
 
$
(67
)
 
$
(174
)
 
$
107

Adjusted operating income before income taxes
 
$
7

 
$
(4
)
 
$
(1
)
 
$
1

 
$
(2
)
 
$
9

 
 
 
$
2

 
$
(16
)
 
$
18

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

                                        
 
rgaqfslogoaa01a13.jpg
Page 5

    

Reinsurance Group of America, Incorporated
Consolidated Balance Sheets
(USD millions)
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
2020
 
2020
 
2020
 
2019
 
2019
Assets
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities, available-for-sale
 
$
54,652

 
$
52,346

 
$
48,555

 
$
51,121

 
$
49,481

Equity securities
 
135

 
130

 
112

 
320

 
135

Mortgage loans on real estate
 
5,907

 
5,974

 
6,014

 
5,706

 
5,647

Policy loans
 
1,259

 
1,310

 
1,314

 
1,319

 
1,290

Funds withheld at interest
 
5,403

 
5,250

 
5,258

 
5,662

 
5,614

Short-term investments
 
154

 
84

 
117

 
64

 
108

Other invested assets
 
2,645

 
2,547

 
2,542

 
2,363

 
2,215

Total investments
 
70,155

 
67,641

 
63,912

 
66,555

 
64,490

Cash and cash equivalents
 
3,256

 
4,313

 
2,820

 
1,449

 
2,636

Accrued investment income
 
547

 
494

 
510

 
493

 
520

Premiums receivable and other reinsurance balances
 
2,792

 
2,852

 
2,836

 
2,940

 
2,818

Reinsurance ceded receivables
 
950

 
945

 
889

 
904

 
863

Deferred policy acquisition costs
 
3,534

 
3,565

 
3,622

 
3,512

 
3,411

Other assets
 
893

 
919

 
1,065

 
878

 
1,036

Total assets
 
$
82,127

 
$
80,729

 
$
75,654

 
$
76,731

 
$
75,774

 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
Future policy benefits
 
$
30,331

 
$
29,897

 
$
29,521

 
$
28,672

 
$
27,086

Interest-sensitive contract liabilities
 
23,208

 
23,118

 
23,164

 
22,711

 
22,345

Other policy claims and benefits
 
6,242

 
6,232

 
5,854

 
5,711

 
6,147

Other reinsurance balances
 
524

 
510

 
596

 
557

 
513

Deferred income taxes
 
3,016

 
2,856

 
2,163

 
2,712

 
2,762

Other liabilities
 
1,611

 
1,557

 
1,505

 
1,188

 
1,406

Long-term debt
 
3,573

 
3,573

 
2,981

 
2,981

 
3,381

Collateral finance and securitization notes
 
408

 
433

 
569

 
598

 
610

Total liabilities
 
68,913

 
68,176

 
66,353

 
65,130

 
64,250

 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity:
 
 
 
 
 
 
 
 
 
 
Common stock, at par value
 
1

 
1

 
1

 
1

 
1

Additional paid-in-capital
 
2,421

 
2,413

 
1,942

 
1,937

 
1,928

Retained earnings
 
8,066

 
7,901

 
7,802

 
7,952

 
7,766

Treasury stock
 
(1,563
)
 
(1,563
)
 
(1,574
)
 
(1,426
)
 
(1,429
)
Accumulated other comprehensive income (AOCI):
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustment, net of income taxes
 
(171
)
 
(210
)
 
(223
)
 
(92
)
 
(157
)
Unrealized appreciation of securities, net of income taxes
 
4,542

 
4,089

 
1,426

 
3,299

 
3,472

Pension and postretirement benefits, net of income taxes
 
(82
)
 
(78
)
 
(73
)
 
(70
)
 
(57
)
Total stockholders’ equity
 
13,214

 
12,553

 
9,301

 
11,601

 
11,524

Total liabilities and stockholders’ equity
 
$
82,127

 
$
80,729

 
$
75,654

 
$
76,731

 
$
75,774

 
 
 
 
 
 
 
 
 
 
 
Total stockholders’ equity, excluding AOCI
 
$
8,925

 
$
8,752

 
$
8,171

 
$
8,464

 
$
8,266

 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
1,420

 
$
1,454

 
$
1,373

 
$
1,558

 
$
1,404

 
$
16

 
 
 
$
4,247

 
$
4,171

 
$
76

Investment income, net of related expenses
 
180

 
177

 
161

 
200

 
210

 
(30
)
 
 
 
518

 
569

 
(51
)
Investment related gains (losses), net
 
(8
)
 
7

 
(7
)
 
2

 
(10
)
 
2

 
 
 
(8
)
 
(20
)
 
12

Other revenue
 
7

 
4

 
6

 
5

 
6

 
1

 
 
 
17

 
15

 
2

Total revenues
 
1,599

 
1,642

 
1,533

 
1,765

 
1,610

 
(11
)
 
 
 
4,774

 
4,735

 
39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1,343

 
1,558

 
1,367

 
1,427

 
1,241

 
102

 
 
 
4,268

 
3,834

 
434

Interest credited
 
19

 
18

 
19

 
19

 
20

 
(1
)
 
 
 
56

 
59

 
(3
)
Policy acquisition costs and other insurance expenses
 
189

 
195

 
175

 
195

 
201

 
(12
)
 
 
 
559

 
557

 
2

Other operating expenses
 
34

 
29

 
34

 
39

 
35

 
(1
)
 
 
 
97

 
105

 
(8
)
Total benefits and expenses
 
1,585

 
1,800

 
1,595

 
1,680

 
1,497

 
88

 
 
 
4,980

 
4,555

 
425

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
14

 
$
(158
)
 
$
(62
)
 
$
85

 
$
113

 
$
(99
)
 
 
 
$
(206
)
 
$
180

 
$
(386
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
94.6
%
 
107.2
%
 
99.6
%
 
91.6
%
 
88.4
%
 
6.2
 %
 
 
 
100.5
%
 
91.9
%
 
8.6
 %
Policy acquisition costs and other insurance expenses
 
13.3
%
 
13.4
%
 
12.7
%
 
12.5
%
 
14.4
%
 
(1.1
)%
 
 
 
13.2
%
 
13.4
%
 
(0.2
)%
Other operating expenses
 
2.4
%
 
2.0
%
 
2.5
%
 
2.5
%
 
2.5
%
 
(0.1
)%
 
 
 
2.3
%
 
2.5
%
 
(0.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(1
)
 
$
(3
)
 
$
—

 
$
1

 
$
—

 
$
(1
)
 
 
 
$
(4
)
 
$
(1
)
 
$
(3
)
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
Qtr vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
1,420

 
$
1,454

 
$
1,373

 
$
1,558

 
$
1,404

 
$
16

 
 
 
$
4,247

 
$
4,171

 
$
76

Investment income, net of related expenses
 
180

 
177

 
161

 
200

 
210

 
(30
)
 
 
 
518

 
569

 
(51
)
Other revenue
 
7

 
4

 
6

 
5

 
6

 
1

 
 
 
17

 
15

 
2

Total revenues
 
1,607

 
1,635

 
1,540

 
1,763

 
1,620

 
(13
)
 
 
 
4,782

 
4,755

 
27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1,343

 
1,558

 
1,367

 
1,427

 
1,241

 
102

 
 
 
4,268

 
3,834

 
434

Interest credited
 
19

 
18

 
19

 
19

 
20

 
(1
)
 
 
 
56

 
59

 
(3
)
Policy acquisition costs and other insurance expenses
 
189

 
195

 
175

 
195

 
201

 
(12
)
 
 
 
559

 
557

 
2

Other operating expenses
 
34

 
29

 
34

 
39

 
35

 
(1
)
 
 
 
97

 
105

 
(8
)
Total benefits and expenses
 
1,585

 
1,800

 
1,595

 
1,680

 
1,497

 
88

 
 
 
4,980

 
4,555

 
425

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income (loss) before income taxes
 
$
22

 
$
(165
)
 
$
(55
)
 
$
83

 
$
123

 
$
(101
)
 
 
 
$
(198
)
 
$
200

 
$
(398
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
94.6
%
 
107.2
%
 
99.6
%
 
91.6
%
 
88.4
%
 
6.2
 %
 
 
 
100.5
%
 
91.9
%
 
8.6
 %
Policy acquisition costs and other insurance expenses
 
13.3
%
 
13.4
%
 
12.7
%
 
12.5
%
 
14.4
%
 
(1.1
)%
 
 
 
13.2
%
 
13.4
%
 
(0.2
)%
Other operating expenses
 
2.4
%
 
2.0
%
 
2.5
%
 
2.5
%
 
2.5
%
 
(0.1
)%
 
 
 
2.3
%
 
2.5
%
 
(0.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(1
)
 
$
(3
)
 
$
—

 
$
1

 
$
—

 
$
(1
)
 
 
 
$
(4
)
 
$
(1
)
 
$
(3
)
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
13

 
$
15

 
$
12

 
$
11

 
$
12

 
$
1

 
 
 
$
40

 
$
28

 
$
12

Investment income, net of related expenses
 
272

 
241

 
233

 
272

 
254

 
18

 
 
 
746

 
655

 
91

Investment related gains (losses), net
 
59

 
15

 
(160
)
 
(1
)
 
58

 
1

 
 
 
(86
)
 
76

 
(162
)
Other revenue
 
26

 
24

 
28

 
28

 
36

 
(10
)
 
 
 
78

 
109

 
(31
)
Total revenues
 
370

 
295

 
113

 
310

 
360

 
10

 
 
 
778

 
868

 
(90
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
50

 
49

 
53

 
51

 
49

 
1

 
 
 
152

 
146

 
6

Interest credited
 
163

 
139

 
129

 
144

 
183

 
(20
)
 
 
 
431

 
396

 
35

Policy acquisition costs and other insurance expenses
 
99

 
7

 
(38
)
 
28

 
21

 
78

 
 
 
68

 
65

 
3

Other operating expenses
 
8

 
7

 
7

 
9

 
7

 
1

 
 
 
22

 
24

 
(2
)
Total benefits and expenses
 
320

 
202

 
151

 
232

 
260

 
60

 
 
 
673

 
631

 
42

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
50

 
$
93

 
$
(38
)
 
$
78

 
$
100

 
$
(50
)
 
 
 
$
105

 
$
237

 
$
(132
)
 
 

 

 

 

 

 

 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
13

 
$
15

 
$
12

 
$
11

 
$
12

 
$
1

 
 
 
$
40

 
$
28

 
$
12

Investment income, net of related expenses
 
273

 
240

 
232

 
272

 
254

 
19

 
 
 
745

 
660

 
85

Other revenue
 
26

 
24

 
25

 
28

 
36

 
(10
)
 
 
 
75

 
109

 
(34
)
Total revenues
 
312

 
279

 
269

 
311

 
302

 
10

 
 
 
860

 
797

 
63

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
50

 
49

 
53

 
51

 
49

 
1

 
 
 
152

 
146

 
6

Interest credited
 
157

 
132

 
117

 
154

 
147

 
10

 
 
 
406

 
340

 
66

Policy acquisition costs and other insurance expenses
 
20

 
28

 
49

 
32

 
34

 
(14
)
 
 
 
97

 
93

 
4

Other operating expenses
 
8

 
7

 
7

 
9

 
7

 
1

 
 
 
22

 
24

 
(2
)
Total benefits and expenses
 
235

 
216

 
226

 
246

 
237

 
(2
)
 
 
 
677

 
603

 
74

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
77

 
$
63

 
$
43

 
$
65

 
$
65

 
$
12

 
 
 
$
183

 
$
194

 
$
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
2020
 
2020
 
2020
 
2019
 
2019
Annuity account values:
 
 
 
 
 
 
 
 
 
 
Fixed annuities (deferred)
 
$
10,848

 
$
10,932

 
$
11,022

 
$
11,140

 
$
11,149

 
 
 
 
 
 
 
 
 
 
 
Net interest spread (fixed annuities)
 
1.3
%
 
1.3
%
 
1.4
%
 
1.5
%
 
1.4
%
 
 
 
 
 
 
 
 
 
 
 
Equity-indexed annuities
 
$
3,530

 
$
3,516

 
$
3,531

 
$
3,589

 
$
3,635

 
 
 
 
 
 
 
 
 
 
 
Variable annuities account values
 
 
 
 
 
 
 
 
 
 
No riders
 
$
775

 
$
753

 
$
718

 
$
711

 
$
1,471

GMDB only
 
831

 
760

 
762

 
837

 
160

GMIB only
 
22

 
22

 
20

 
23

 
22

GMAB only
 
3

 
3

 
3

 
4

 
4

GMWB only
 
1,046

 
1,016

 
937

 
1,123

 
1,100

GMDB / WB
 
252

 
247

 
232

 
278

 
272

Other
 
17

 
17

 
15

 
18

 
17

Total variable annuities account values
 
$
2,946

 
$
2,818

 
$
2,687

 
$
2,994

 
$
3,046

 
 
 
 
 
 
 
 
 
 
 
Fair value of liabilities associated with living benefit riders
 
$
213

 
$
184

 
$
291

 
$
163

 
$
210

 
 
 
 
 
 
 
 
 
 
 
Interest-sensitive contract liabilities associated with:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts
 
$
989

 
$
990

 
$
991

 
$
907

 
$
969

 
 
 
 
 
 
 
 
 
 
 
Bank-owned life insurance (BOLI)
 
$
2,450

 
$
2,444

 
$
2,435

 
$
2,459

 
$
2,452

 
 
 
 
 
 
 
 
 
 
 
Other asset-intensive business
 
$
125

 
$
127

 
$
128

 
$
130

 
$
133

 
 
 
 
 
 
 
 
 
 
 
Future policy benefits associated with:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payout annuities
 
$
4,593

 
$
4,655

 
$
4,713

 
$
4,776

 
$
4,844



                                        
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
1

 
$
2

 
$
1

 
$
1

 
$
1

 
$
—

 
 
 
$
4

 
$
3

 
$
1

Other revenue
 
28

 
26

 
25

 
29

 
22

 
6

 
 
 
79

 
68

 
11

Total revenues
 
29

 
28

 
26

 
30

 
23

 
6

 
 
 
83

 
71

 
12

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Policy acquisition costs and other insurance expenses
 
2

 
2

 
—

 
1

 
—

 
2

 
 
 
4

 
5

 
(1
)
Other operating expenses
 
3

 
2

 
3

 
3

 
4

 
(1
)
 
 
 
8

 
9

 
(1
)
Total benefits and expenses
 
5

 
4

 
3

 
4

 
4

 
1

 
 
 
12

 
14

 
(2
)
 
 

 

 

 

 

 

 
 
 
 
 
 
 
 
Income before income taxes
 
$
24

 
$
24

 
$
23

 
$
26

 
$
19

 
$
5

 
 
 
$
71

 
$
57

 
$
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
1

 
$
2

 
$
1

 
$
1

 
$
1

 
$
—

 
 
 
$
4

 
$
3

 
$
1

Other revenue
 
28

 
26

 
25

 
29

 
22

 
6

 
 
 
79

 
68

 
11

Total revenues
 
29

 
28

 
26

 
30

 
23

 
6

 
 
 
83

 
71

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy acquisition costs and other insurance expenses
 
2

 
2

 
—

 
1

 
—

 
2

 
 
 
4

 
5

 
(1
)
Other operating expenses
 
3

 
2

 
3

 
3

 
4

 
(1
)
 
 
 
8

 
9

 
(1
)
Total benefits and expenses
 
5

 
4

 
3

 
4

 
4

 
1

 
 
 
12

 
14

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
24

 
$
24

 
$
23

 
$
26

 
$
19

 
$
5

 
 
 
$
71

 
$
57

 
$
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
254

 
$
254

 
$
260

 
$
276

 
$
271

 
$
(17
)
 
 
 
$
768

 
$
790

 
$
(22
)
Investment income, net of related expenses
 
52

 
50

 
49

 
52

 
53

 
(1
)
 
 
 
151

 
153

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

 
6

 
(12
)
 
3

 
1

 
1

 
 
 
(4
)
 
11

 
(15
)
Other revenue
 
1

 
1

 
(1
)
 
—

 
—

 
1

 
 
 
1

 
1

 
—

Total revenues
 
309

 
311

 
296

 
331

 
325

 
(16
)
 
 
 
916

 
955

 
(39
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
225

 
216

 
220

 
235

 
216

 
9

 
 
 
661

 
622

 
39

Policy acquisition costs and other insurance expenses
 
44

 
42

 
45

 
56

 
57

 
(13
)
 
 
 
131

 
168

 
(37
)
Other operating expenses
 
10

 
9

 
8

 
12

 
9

 
1

 
 
 
27

 
25

 
2

Total benefits and expenses
 
279

 
267

 
273

 
303

 
282

 
(3
)
 
 
 
819

 
815

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
30

 
$
44

 
$
23

 
$
28

 
$
43

 
$
(13
)
 
 
 
$
97

 
$
140

 
$
(43
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
88.6
%
 
85.0
%
 
84.6
%
 
85.1
%
 
79.7
%
 
8.9
 %
 
 
 
86.1
%
 
78.7
%
 
7.4
 %
Policy acquisition costs and other insurance expenses
 
17.3
%
 
16.5
%
 
17.3
%
 
20.3
%
 
21.0
%
 
(3.7
)%
 
 
 
17.1
%
 
21.3
%
 
(4.2
)%
Other operating expenses
 
3.9
%
 
3.5
%
 
3.1
%
 
4.3
%
 
3.3
%
 
0.6
 %
 
 
 
3.5
%
 
3.2
%
 
0.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(2
)
 
$
(9
)
 
$
(3
)
 
$
—

 
$
(3
)
 
$
1

 
 
 
$
(14
)
 
$
(25
)
 
$
11

Income before income taxes
 
$
—

 
$
(2
)
 
$
1

 
$
—

 
$
—

 
$
—

 
 
 
$
(1
)
 
$
(5
)
 
$
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Creditor reinsurance net premiums
 
$
18

 
$
14

 
$
17

 
$
27

 
$
29

 
$
(11
)
 
 
 
$
49

 
$
83

 
$
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
254

 
$
254

 
$
260

 
$
276

 
$
271

 
$
(17
)
 
 
 
$
768

 
$
790

 
$
(22
)
Investment income, net of related expenses
 
51

 
51

 
48

 
52

 
53

 
(2
)
 
 
 
150

 
153

 
(3
)
Investment related gains, net
 
2

 
1

 
2

 
2

 
2

 
—

 
 
 
5

 
5

 
—

Other revenue
 
1

 
1

 
(1
)
 
—

 
—

 
1

 
 
 
1

 
1

 
—

Total revenues
 
308

 
307

 
309

 
330

 
326

 
(18
)
 
 
 
924

 
949

 
(25
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
225

 
216

 
220

 
235

 
216

 
9

 
 
 
661

 
622

 
39

Policy acquisition costs and other insurance expenses
 
44

 
42

 
45

 
56

 
57

 
(13
)
 
 
 
131

 
168

 
(37
)
Other operating expenses
 
10

 
9

 
8

 
12

 
9

 
1

 
 
 
27

 
25

 
2

Total benefits and expenses
 
279

 
267

 
273

 
303

 
282

 
(3
)
 
 
 
819

 
815

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
29

 
$
40

 
$
36

 
$
27

 
$
44

 
$
(15
)
 
 
 
$
105

 
$
134

 
$
(29
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
88.6
%
 
85.0
%
 
84.6
%
 
85.1
%
 
79.7
%
 
8.9
 %
 
 
 
86.1
%
 
78.7
%
 
7.4
 %
Policy acquisition costs and other insurance expenses
 
17.3
%
 
16.5
%
 
17.3
%
 
20.3
%
 
21.0
%
 
(3.7
)%
 
 
 
17.1
%
 
21.3
%
 
(4.2
)%
Other operating expenses
 
3.9
%
 
3.5
%
 
3.1
%
 
4.3
%
 
3.3
%
 
0.6
 %
 
 
 
3.5
%
 
3.2
%
 
0.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(2
)
 
$
(9
)
 
$
(3
)
 
$
—

 
$
(3
)
 
$
1

 
 
 
$
(14
)
 
$
(25
)
 
$
11

Adjusted operating income before income taxes
 
$
—

 
$
(2
)
 
$
1

 
$
(1
)
 
$
—

 
$
—

 
 
 
$
(1
)
 
$
(4
)
 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Creditor reinsurance net premiums
 
$
18

 
$
14

 
$
17

 
$
27

 
$
29

 
$
(11
)
 
 
 
$
49

 
$
83

 
$
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
21

 
$
20

 
$
21

 
$
22

 
$
22

 
$
(1
)
 
 
 
$
62

 
$
67

 
$
(5
)
Investment income, net of related expenses
 
—

 
—

 
1

 
1

 
1

 
(1
)
 
 
 
1

 
2

 
(1
)
Other revenue
 
2

 
2

 
2

 
4

 
1

 
1

 
 
 
6

 
3

 
3

Total revenues
 
23

 
22

 
24

 
27

 
24

 
(1
)
 
 
 
69

 
72

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
17

 
17

 
20

 
19

 
20

 
(3
)
 
 
 
54

 
61

 
(7
)
Policy acquisition costs and other insurance expenses
 
—

 
1

 
—

 
1

 
—

 
—

 
 
 
1

 
1

 
—

Other operating expenses
 
—

 
—

 
1

 
—

 
1

 
(1
)
 
 
 
1

 
2

 
(1
)
Total benefits and expenses
 
17

 
18

 
21

 
20

 
21

 
(4
)
 
 
 
56

 
64

 
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
6

 
$
4

 
$
3

 
$
7

 
$
3

 
$
3

 
 
 
$
13

 
$
8

 
$
5

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

 
$
(1
)
 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
$
(1
)
 
$
(2
)
 
$
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
21

 
$
20

 
$
21

 
$
22

 
$
22

 
$
(1
)
 
 
 
$
62

 
$
67

 
$
(5
)
Investment income, net of related expenses
 
—

 
—

 
1

 
1

 
1

 
(1
)
 
 
 
1

 
2

 
(1
)
Other revenue
 
2

 
2

 
2

 
4

 
1

 
1

 
 
 
6

 
3

 
3

Total revenues
 
23

 
22

 
24

 
27

 
24

 
(1
)
 
 
 
69

 
72

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
17

 
17

 
20

 
19

 
20

 
(3
)
 
 
 
54

 
61

 
(7
)
Policy acquisition costs and other insurance expenses
 
—

 
1

 
—

 
1

 
—

 
—

 
 
 
1

 
1

 
—

Other operating expenses
 
—

 
—

 
1

 
—

 
1

 
(1
)
 
 
 
1

 
2

 
(1
)
Total benefits and expenses
 
17

 
18

 
21

 
20

 
21

 
(4
)
 
 
 
56

 
64

 
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
6

 
$
4

 
$
3

 
$
7

 
$
3

 
$
3

 
 
 
$
13

 
$
8

 
$
5

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

 
$
(1
)
 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
$
(1
)
 
$
(2
)
 
$
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
371

 
$
352

 
$
390

 
$
368

 
$
359

 
$
12

 
 
 
$
1,113

 
$
1,074

 
$
39

Investment income, net of related expenses
 
18

 
18

 
19

 
19

 
17

 
1

 
 
 
55

 
54

 
1

Other revenue
 
1

 
1

 
(2
)
 
1

 
2

 
(1
)
 
 
 
—

 
4

 
(4
)
Total revenues
 
390

 
371

 
407

 
388

 
378

 
12

 
 
 
1,168

 
1,132

 
36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
331

 
301

 
334

 
300

 
297

 
34

 
 
 
966

 
905

 
61

Policy acquisition costs and other insurance expenses
 
28

 
32

 
30

 
30

 
27

 
1

 
 
 
90

 
84

 
6

Other operating expenses
 
24

 
22

 
26

 
35

 
29

 
(5
)
 
 
 
72

 
86

 
(14
)
Total benefits and expenses
 
383

 
355

 
390

 
365

 
353

 
30

 
 
 
1,128

 
1,075

 
53

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
7

 
$
16

 
$
17

 
$
23

 
$
25

 
$
(18
)
 
 
 
$
40

 
$
57

 
$
(17
)
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 

 



 

 

 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
89.2
%
 
85.5
%
 
85.6
%
 
81.5
%
 
82.7
%
 
6.5
 %
 
 
 
86.8
%
 
84.3
%
 
2.5
 %
Policy acquisition costs and other insurance expenses
 
7.5
%
 
9.1
%
 
7.7
%
 
8.2
%
 
7.4
%
 
0.1
 %
 
 
 
8.1
%
 
7.8
%
 
0.3
 %
Other operating expenses
 
6.5
%
 
6.3
%
 
6.7
%
 
9.5
%
 
8.1
%
 
(1.6
)%
 
 
 
6.5
%
 
8.0
%
 
(1.5
)%
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
6

 
$
(20
)
 
$
(13
)
 
$
(4
)
 
$
(17
)
 
$
23

 
 
 
$
(27
)
 
$
(73
)
 
$
46

Income before income taxes
 
$
2

 
$
(1
)
 
$
—

 
$
(1
)
 
$
(1
)
 
$
3

 
 
 
$
1

 
$
(4
)
 
$
5

 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
43

 
$
40

 
$
42

 
$
42

 
$
49

 
$
(6
)
 
 
 
$
125

 
$
136

 
$
(11
)
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
371

 
$
352

 
$
390

 
$
368

 
$
359

 
$
12

 
 
 
$
1,113

 
$
1,074

 
$
39

Investment income, net of related expenses
 
18

 
18

 
19

 
19

 
17

 
1

 
 
 
55

 
54

 
1

Other revenue
 
1

 
1

 
(2
)
 
1

 
2

 
(1
)
 
 
 
—

 
4

 
(4
)
Total revenues
 
390

 
371

 
407

 
388

 
378

 
12

 
 
 
1,168

 
1,132

 
36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
331

 
301

 
334

 
300

 
297

 
34

 
 
 
966

 
905

 
61

Policy acquisition costs and other insurance expenses
 
28

 
32

 
30

 
30

 
27

 
1

 
 
 
90

 
84

 
6

Other operating expenses
 
24

 
22

 
26

 
35

 
29

 
(5
)
 
 
 
72

 
86

 
(14
)
Total benefits and expenses
 
383

 
355

 
390

 
365

 
353

 
30

 
 
 
1,128

 
1,075

 
53

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
7

 
$
16

 
$
17

 
$
23

 
$
25

 
$
(18
)
 
 
 
$
40

 
$
57

 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
89.2
%
 
85.5
%
 
85.6
%
 
81.5
%
 
82.7
%
 
6.5
 %
 
 
 
86.8
%
 
84.3
%
 
2.5
 %
Policy acquisition costs and other insurance expenses
 
7.5
%
 
9.1
%
 
7.7
%
 
8.2
%
 
7.4
%
 
0.1
 %
 
 
 
8.1
%
 
7.8
%
 
0.3
 %
Other operating expenses
 
6.5
%
 
6.3
%
 
6.7
%
 
9.5
%
 
8.1
%
 
(1.6
)%
 
 
 
6.5
%
 
8.0
%
 
(1.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
6

 
$
(20
)
 
$
(13
)
 
$
(4
)
 
$
(17
)
 
$
23

 
 
 
$
(27
)
 
$
(73
)
 
$
46

Adjusted operating income before income taxes
 
$
2

 
$
(2
)
 
$
1

 
$
(1
)
 
$
(1
)
 
$
3

 
 
 
$
1

 
$
(4
)
 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
43

 
$
40

 
$
42

 
$
42

 
$
49

 
$
(6
)
 
 
 
$
125

 
$
136

 
$
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
58

 
$
57

 
$
53

 
$
54

 
$
55

 
$
3

 
 
 
$
168

 
$
164

 
$
4

Investment income, net of related expenses
 
46

 
61

 
28

 
45

 
55

 
(9
)
 
 
 
135

 
150

 
(15
)
Investment related gains (losses), net
 
4

 
16

 
(6
)
 
1

 
2

 
2

 
 
 
14

 
8

 
6

Other revenue
 
2

 
2

 
3

 
10

 
5

 
(3
)
 
 
 
7

 
18

 
(11
)
Total revenues
 
110

 
136

 
78

 
110

 
117

 
(7
)
 
 
 
324

 
340

 
(16
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Claims and other policy benefits
 
5

 
13

 
53

 
19

 
34

 
(29
)
 
 
 
71

 
130

 
(59
)
Interest credited
 
(1
)
 
16

 
(17
)
 
(1
)
 
12

 
(13
)
 
 
 
(2
)
 
27

 
(29
)
Policy acquisition costs and other insurance expenses
 
1

 
1

 
1

 
10

 
—

 
1

 
 
 
3

 
2

 
1

Other operating expenses
 
13

 
8

 
11

 
10

 
10

 
3

 
 
 
32

 
30

 
2

Total benefits and expenses
 
18

 
38


48

 
38

 
56

 
(38
)
 
 
 
104

 
189

 
(85
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
92

 
$
98

 
$
30

 
$
72

 
$
61

 
$
31

 
 
 
$
220

 
$
151

 
$
69

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Net premiums
 
$
2

 
$
(2
)
 
$
(1
)
 
$
—

 
$
(3
)
 
$
5

 
 
 
$
(1
)
 
$
(10
)
 
$
9

Income before income taxes
 
$
4

 
$
(3
)
 
$
—

 
$
—

 
$
(3
)
 
$
7

 
 
 
$
1

 
$
(9
)
 
$
10

 
 

 

 

 

 

 

 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
58

 
$
57

 
$
53

 
$
54

 
$
55

 
$
3

 
 
 
$
168

 
$
164

 
$
4

Investment income, net of related expenses
 
46

 
43

 
44

 
46

 
43

 
3

 
 
 
133

 
123

 
10

Investment related gains (losses), net
 
(1
)
 
—

 
—

 
—

 
—

 
(1
)
 
 
 
(1
)
 
—

 
(1
)
Other revenue
 
2

 
2

 
3

 
12

 
5

 
(3
)
 
 
 
7

 
18

 
(11
)
Total revenues
 
105

 
102

 
100

 
112

 
103

 
2

 
 
 
307

 
305

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
5

 
13

 
53

 
19

 
34

 
(29
)
 
 
 
71

 
130

 
(59
)
Interest credited
 
—

 
1

 
(1
)
 
—

 
—

 
—

 
 
 
—

 
—

 
—

Policy acquisition costs and other insurance expenses
 
1

 
1

 
1

 
10

 
—

 
1

 
 
 
3

 
2

 
1

Other operating expenses
 
13

 
8

 
11

 
10

 
10

 
3

 
 
 
32

 
30

 
2

Total benefits and expenses
 
19

 
23

 
64

 
39

 
44

 
(25
)
 
 
 
106

 
162

 
(56
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
86

 
$
79

 
$
36

 
$
73

 
$
59

 
$
27

 
 
 
$
201

 
$
143

 
$
58

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

 
$
(2
)
 
$
(1
)
 
$
—

 
$
(3
)
 
$
5

 
 
 
$
(1
)
 
$
(10
)
 
$
9

Adjusted operating income before income taxes
 
$
4

 
$
(2
)
 
$
(1
)
 
$
—

 
$
(3
)
 
$
7

 
 
 
$
1

 
$
(8
)
 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
653

 
$
607

 
$
636

 
$
659

 
$
656

 
$
(3
)
 
 
 
$
1,896

 
$
1,909

 
$
(13
)
Investment income, net of related expenses
 
22

 
27

 
27

 
27

 
27

 
(5
)
 
 
 
76

 
77

 
(1
)
Other revenue
 
5

 
2

 
4

 
3

 
2

 
3

 
 
 
11

 
6

 
5

Total revenues
 
680

 
636

 
667

 
689

 
685

 
(5
)
 
 
 
1,983

 
1,992

 
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
525

 
514

 
555

 
618

 
585

 
(60
)
 
 
 
1,594

 
1,699

 
(105
)
Policy acquisition costs and other insurance expenses
 
33

 
34

 
49

 
13

 
40

 
(7
)
 
 
 
116

 
79

 
37

Other operating expenses
 
44

 
41

 
39

 
46

 
38

 
6

 
 
 
124

 
121

 
3

Total benefits and expenses
 
602

 
589

 
643

 
677

 
663

 
(61
)
 
 
 
1,834

 
1,899

 
(65
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
78

 
$
47

 
$
24

 
$
12

 
$
22

 
$
56

 
 
 
$
149

 
$
93

 
$
56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
80.4
%
 
84.7
%
 
87.3
%
 
93.8
%
 
89.0
%
 
(8.6
)%
 
 
 
84.1
%
 
89.0
%
 
(4.9
)%
Policy acquisition costs and other insurance expenses
 
5.1
%
 
5.6
%
 
7.7
%
 
2.0
%
 
6.1
%
 
(1.0
)%
 
 
 
6.1
%
 
4.1
%
 
2.0
 %
Other operating expenses
 
6.7
%
 
6.8
%
 
6.1
%
 
7.0
%
 
6.1
%
 
0.6
 %
 
 
 
6.5
%
 
6.4
%
 
0.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
6

 
$
(12
)
 
$
(16
)
 
$
(3
)
 
$
(12
)
 
$
18

 
 
 
$
(22
)
 
$
(62
)
 
$
40

Income before income taxes
 
$
1

 
$
2

 
$
(1
)
 
$
1

 
$
3

 
$
(2
)
 
 
 
$
2

 
$
2

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
294

 
$
246

 
$
256

 
$
266

 
$
294

 
$
—

 
 
 
$
796

 
$
789

 
$
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
653

 
$
607

 
$
636

 
$
659

 
$
656

 
$
(3
)
 
 
 
$
1,896

 
$
1,909

 
$
(13
)
Investment income, net of related expenses
 
22

 
27

 
27

 
27

 
27

 
(5
)
 
 
 
76

 
77

 
(1
)
Other revenue
 
5

 
2

 
4

 
3

 
2

 
3

 
 
 
11

 
6

 
5

Total revenues
 
680

 
636

 
667

 
689

 
685

 
(5
)
 
 
 
1,983

 
1,992

 
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
525

 
514

 
555

 
618

 
585

 
(60
)
 
 
 
1,594

 
1,699

 
(105
)
Policy acquisition costs and other insurance expenses
 
33

 
34

 
49

 
13

 
40

 
(7
)
 
 
 
116

 
79

 
37

Other operating expenses
 
44

 
41

 
39

 
46

 
38

 
6

 
 
 
124

 
121

 
3

Total benefits and expenses
 
602

 
589

 
643

 
677

 
663

 
(61
)
 
 
 
1,834

 
1,899

 
(65
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
78

 
$
47

 
$
24

 
$
12

 
$
22

 
$
56

 
 
 
$
149

 
$
93

 
$
56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
80.4
%
 
84.7
%
 
87.3
%
 
93.8
%
 
89.0
%
 
(8.6
)%
 
 
 
84.1
%
 
89.0
%
 
(4.9
)%
Policy acquisition costs and other insurance expenses
 
5.1
%
 
5.6
%
 
7.7
%
 
2.0
%
 
6.1
%
 
(1.0
)%
 
 
 
6.1
%
 
4.1
%
 
2.0
 %
Other operating expenses
 
6.7
%
 
6.8
%
 
6.1
%
 
7.0
%
 
6.1
%
 
0.6
 %
 
 
 
6.5
%
 
6.4
%
 
0.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
6

 
$
(12
)
 
$
(16
)
 
$
(3
)
 
$
(12
)
 
$
18

 
 
 
$
(22
)
 
$
(62
)
 
$
40

Adjusted operating income before income taxes
 
$
1

 
$
2

 
$
(1
)
 
$
1

 
$
3

 
$
(2
)
 
 
 
$
2

 
$
2

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
294

 
$
246

 
$
256

 
$
266

 
$
294

 
$
—

 
 
 
$
796

 
$
789

 
$
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
35

 
$
31

 
$
74

 
$
38

 
$
30

 
$
5

 
 
 
$
140

 
$
108

 
$
32

Investment income, net of related expenses
 
22

 
21

 
17

 
15

 
10

 
12

 
 
 
60

 
31

 
29

Investment related gains (losses), net
 
—

 
15

 
(33
)
 
7

 
(1
)
 
1

 
 
 
(18
)
 
2

 
(20
)
Other revenue
 
9

 
8

 
10

 
8

 
7

 
2

 
 
 
27

 
19

 
8

Total revenues
 
66

 
75

 
68

 
68

 
46

 
20

 
 
 
209

 
160

 
49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
33

 
32

 
62

 
34

 
28

 
5

 
 
 
127

 
97

 
30

Interest credited
 
13

 
11

 
13

 
11

 
7

 
6

 
 
 
37

 
20

 
17

Policy acquisition costs and other insurance expenses
 
5

 
5

 
14

 
5

 
5

 
—

 
 
 
24

 
20

 
4

Other operating expenses
 
5

 
1

 
4

 
5

 
4

 
1

 
 
 
10

 
13

 
(3
)
Total benefits and expenses
 
56

 
49

 
93

 
55

 
44

 
12

 
 
 
198

 
150

 
48

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
10

 
$
26

 
$
(25
)
 
$
13

 
$
2

 
$
8

 
 
 
$
11

 
$
10

 
$
1

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

 
$
1

 
$
—

 
$
—

 
$
1

 
$
—

 
 
 
$
2

 
$
—

 
$
2

Income (loss) before income taxes
 
$
1

 
$
(1
)
 
$
2

 
$
—

 
$
1

 
$
—

 
 
 
$
2

 
$
1

 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
35

 
$
31

 
$
74

 
$
38

 
$
30

 
$
5

 
 
 
$
140

 
$
108

 
$
32

Investment income, net of related expenses
 
22

 
21

 
17

 
15

 
10

 
12

 
 
 
60

 
31

 
29

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

 
2

 
2

 
2

 
(3
)
 
 
 
2

 
4

 
(2
)
Other revenue
 
9

 
8

 
10

 
8

 
7

 
2

 
 
 
27

 
19

 
8

Total revenues
 
65

 
61

 
103

 
63

 
49

 
16

 
 
 
229

 
162

 
67

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
33

 
32

 
62

 
34

 
28

 
5

 
 
 
127

 
97

 
30

Interest credited
 
13

 
11

 
13

 
11

 
7

 
6

 
 
 
37

 
20

 
17

Policy acquisition costs and other insurance expenses
 
5

 
5

 
14

 
5

 
5

 
—

 
 
 
24

 
20

 
4

Other operating expenses
 
5

 
1

 
4

 
5

 
4

 
1

 
 
 
10

 
13

 
(3
)
Total benefits and expenses
 
56

 
49

 
93

 
55

 
44

 
12

 
 
 
198

 
150

 
48

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
9

 
$
12

 
$
10

 
$
8

 
$
5

 
$
4

 
 
 
$
31

 
$
12

 
$
19

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

 
$
1

 
$
—

 
$
—

 
$
1

 
$
—

 
 
 
$
2

 
$
—

 
$
2

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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
41

 
$
48

 
$
58

 
$
45

 
$
51

 
$
(10
)
 
 
 
$
147

 
$
149

 
$
(2
)
Investment related gains (losses), net
 
9

 
22

 
(67
)
 
10

 
(1
)
 
10

 
 
 
(36
)
 
(8
)
 
(28
)
Other revenue
 
17

 
20

 
1

 
12

 
10

 
7

 
 
 
38

 
49

 
(11
)
Total revenues
 
67

 
90

 
(8
)
 
67

 
60

 
7

 
 
 
149

 
190

 
(41
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1

 
—

 
—

 
—

 
—

 
1

 
 
 
1

 
—

 
1

Interest credited
 
2

 
3

 
2

 
7

 
4

 
(2
)
 
 
 
7

 
15

 
(8
)
Policy acquisition costs and other insurance income
 
(27
)
 
(29
)
 
(28
)
 
(29
)
 
(29
)
 
2

 
 
 
(84
)
 
(87
)
 
3

Other operating expenses
 
70

 
69

 
62

 
75

 
73

 
(3
)
 
 
 
201

 
219

 
(18
)
Interest expense
 
43

 
42

 
41

 
44

 
46

 
(3
)
 
 
 
126

 
129

 
(3
)
Collateral finance and securitization expense
 
4

 
4

 
6

 
6

 
7

 
(3
)
 
 
 
14

 
23

 
(9
)
Total benefits and expenses
 
93

 
89

 
83

 
103

 
101

 
(8
)
 
 
 
265

 
299

 
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(26
)
 
$
1

 
$
(91
)
 
$
(36
)
 
$
(41
)
 
$
15

 
 
 
$
(116
)
 
$
(109
)
 
$
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(1
)
 
$
(1
)
 
$
2

 
$
—

 
$
—

 
$
(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 26

    

Reinsurance Group of America, Incorporated
Corporate and Other
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
41

 
$
48

 
$
58

 
$
45

 
$
51

 
$
(10
)
 
 
 
$
147

 
$
149

 
$
(2
)
Investment related gains (losses), net
 
(4
)
 
2

 
1

 
2

 
1

 
(5
)
 
 
 
(1
)
 
4

 
(5
)
Other revenue
 
18

 
24

 
1

 
12

 
10

 
8

 
 
 
43

 
49

 
(6
)
Total revenues
 
55

 
74

 
60

 
59

 
62

 
(7
)
 
 
 
189

 
202

 
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1

 
—

 
—

 
—

 
—

 
1

 
 
 
1

 
—

 
1

Interest credited
 
2

 
3

 
2

 
7

 
4

 
(2
)
 
 
 
7

 
15

 
(8
)
Policy acquisition costs and other insurance income
 
(27
)
 
(29
)
 
(28
)
 
(29
)
 
(29
)
 
2

 
 
 
(84
)
 
(87
)
 
3

Other operating expenses
 
70

 
69

 
62

 
75

 
73

 
(3
)
 
 
 
201

 
219

 
(18
)
Interest expense
 
42

 
38

 
37

 
40

 
37

 
5

 
 
 
117

 
115

 
2

Collateral finance and securitization expense
 
4

 
4

 
6

 
6

 
7

 
(3
)
 
 
 
14

 
23

 
(9
)
Total benefits and expenses
 
92

 
85

 
79

 
99

 
92

 
—

 
 
 
256

 
285

 
(29
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating loss before income taxes
 
$
(37
)
 
$
(11
)
 
$
(19
)
 
$
(40
)
 
$
(30
)
 
$
(7
)
 
 
 
$
(67
)
 
$
(83
)
 
$
16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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

 
$
—

 
$
(1
)
 
$
—

 
$
—

 
$
—

 
 
 
$
(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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
U.S. and Latin America:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
$
14

 
$
(158
)
 
$
(62
)
 
$
85

 
$
113

 
$
(99
)
 
 
 
$
(206
)
 
$
180

 
$
(386
)
Financial Solutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Intensive
 
50

 
93

 
(38
)
 
78

 
100

 
(50
)
 
 
 
105

 
237

 
(132
)
Capital Solutions
 
24

 
24

 
23

 
26

 
19

 
5

 
 
 
71

 
57

 
14

Total U.S. and Latin America
 
88

 
(41
)
 
(77
)
 
189

 
232

 
(144
)
 
 
 
(30
)
 
474

 
(504
)
Canada:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
30

 
44

 
23

 
28

 
43

 
(13
)
 
 
 
97

 
140

 
(43
)
Financial Solutions
 
6

 
4

 
3

 
7

 
3

 
3

 
 
 
13

 
8

 
5

Total Canada
 
36

 
48

 
26

 
35

 
46

 
(10
)
 
 
 
110

 
148

 
(38
)
Europe, Middle East and Africa:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
7

 
16

 
17

 
23

 
25

 
(18
)
 
 
 
40

 
57

 
(17
)
Financial Solutions
 
92

 
98

 
30

 
72

 
61

 
31

 
 
 
220

 
151

 
69

Total Europe, Middle East and Africa
 
99

 
114

 
47

 
95

 
86

 
13

 
 
 
260

 
208

 
52

Asia Pacific:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
78

 
47

 
24

 
12

 
22

 
56

 
 
 
149

 
93

 
56

Financial Solutions
 
10

 
26

 
(25
)
 
13

 
2

 
8

 
 
 
11

 
10

 
1

Total Asia Pacific
 
88

 
73

 
(1
)
 
25

 
24

 
64

 
 
 
160

 
103

 
57

Corporate and Other
 
(26
)
 
1

 
(91
)
 
(36
)
 
(41
)
 
15

 
 
 
(116
)
 
(109
)
 
(7
)
Consolidated income (loss) before income taxes
 
$
285

 
$
195

 
$
(96
)
 
$
308

 
$
347

 
$
(62
)
 
 
 
$
384

 
$
824

 
$
(440
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
 
 
 
2020
 
2019
 
Change
U.S. and Latin America:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
$
22

 
$
(165
)
 
$
(55
)
 
$
83

 
$
123

 
$
(101
)
 
 
 
$
(198
)
 
$
200

 
$
(398
)
Financial Solutions:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Asset Intensive
 
77

 
63

 
43

 
65

 
65

 
12

 
 
 
183

 
194

 
(11
)
Capital Solutions
 
24

 
24

 
23

 
26

 
19

 
5

 
 
 
71

 
57

 
14

Total U.S. and Latin America
 
123

 
(78
)
 
11

 
174

 
207

 
(84
)
 
 
 
56

 
451

 
(395
)
Canada:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
29

 
40

 
36

 
27

 
44

 
(15
)
 
 
 
105

 
134

 
(29
)
Financial Solutions
 
6

 
4

 
3

 
7

 
3

 
3

 
 
 
13

 
8

 
5

Total Canada
 
35

 
44

 
39

 
34

 
47

 
(12
)
 
 
 
118

 
142

 
(24
)
Europe, Middle East and Africa:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
7

 
16

 
17

 
23

 
25

 
(18
)
 
 
 
40

 
57

 
(17
)
Financial Solutions
 
86

 
79

 
36

 
73

 
59

 
27

 
 
 
201

 
143

 
58

Total Europe, Middle East and Africa
 
93

 
95

 
53

 
96

 
84

 
9

 
 
 
241

 
200

 
41

Asia Pacific:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
78

 
47

 
24

 
12

 
22

 
56

 
 
 
149

 
93

 
56

Financial Solutions
 
9

 
12

 
10

 
8

 
5

 
4

 
 
 
31

 
12

 
19

Total Asia Pacific
 
87

 
59

 
34

 
20

 
27

 
60

 
 
 
180

 
105

 
75

Corporate and Other
 
(37
)
 
(11
)
 
(19
)
 
(40
)
 
(30
)
 
(7
)
 
 
 
(67
)
 
(83
)
 
16

Consolidated adjusted operating income before income taxes
 
$
301

 
$
109

 
$
118

 
$
284

 
$
335

 
$
(34
)
 
 
 
$
528

 
$
815

 
$
(287
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
2020
 
2020
 
2020
 
2019
 
2019
Fixed maturity securities, available-for-sale (1)
 
$
54,652

 
$
52,346

 
$
48,555

 
$
51,121

 
$
49,481

Equity securities
 
135

 
130

 
112

 
320

 
135

Mortgage loans on real estate
 
5,907

 
5,974

 
6,014

 
5,706

 
5,647

Policy loans
 
1,259

 
1,310

 
1,314

 
1,319

 
1,290

Funds withheld at interest
 
5,403

 
5,250

 
5,258

 
5,662

 
5,614

Short-term investments
 
154

 
84

 
117

 
64

 
108

Other invested assets
 
2,645

 
2,547

 
2,542

 
2,363

 
2,215

Cash and cash equivalents
 
3,256

 
4,313

 
2,820

 
1,449

 
2,636

Total cash and invested assets
 
$
73,411

 
$
71,954

 
$
66,732

 
$
68,004

 
$
67,126

 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
 
 
 
2020
 
2019
 
Change
Average invested assets at amortized cost (1)
 
$
32,148

 
$
30,420

 
$
29,728

 
$
29,513

 
$
29,043

 
$
3,105

 
 
 
$
30,468

 
$
28,222

 
$
2,246

Net investment income (1)
 
$
290

 
$
305

 
$
299

 
$
330

 
$
344

 
$
(54
)
 
 
 
$
894

 
$
961

 
$
(67
)
Annualized investment yield (ratio of net investment income to average invested assets at amortized cost) (1)
 
3.66
%
 
4.07
%
 
4.08
%
 
4.55
%
 
4.83
%
 
(117) bps

 
 
 
3.93
%
 
4.57
%
 
(64) 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2020
 
 
Amortized
Cost
 
Allowance for Credit Losses
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated Fair
Value
 
% of
Total
 
Impairments in AOCI
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
31,044

 
$
19

 
$
3,455

 
$
221

 
$
34,259

 
62.7
%
 
$
—

   Canadian government
 
2,985

 
—

 
1,912

 
—

 
4,897

 
9.0
%
 
—

   RMBS
 
1,927

 
—

 
101

 
1

 
2,027

 
3.7
%
 
—

   ABS
 
2,966

 
—

 
28

 
72

 
2,922

 
5.3
%
 
—

   CMBS
 
1,871

 
—

 
81

 
22

 
1,930

 
3.5
%
 
—

   U.S. government
 
1,392

 
—

 
238

 
—

 
1,630

 
3.0
%
 
—

   State and political subdivisions
 
1,233

 
—

 
154

 
4

 
1,383

 
2.5
%
 
—

   Other foreign government
 
5,243

 
—

 
411

 
50

 
5,604

 
10.3
%
 
—

Total fixed maturity securities
 
$
48,661

 
$
19

 
$
6,380

 
$
370

 
$
54,652

 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 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
 
$
5,582

 
$
6,085

 
17.9
%
 
A-
 
$
5,443

 
$
5,804

 
18.6
%
 
A-
Brokerage/asset managers/exchanges
 
862

 
949

 
2.8
%
 
A-
 
756

 
811

 
2.6
%
 
A-
Finance companies
 
289

 
291

 
0.8
%
 
BBB
 
241

 
255

 
0.8
%
 
BBB
Insurance
 
3,490

 
3,882

 
11.3
%
 
A-
 
3,178

 
3,429

 
10.9
%
 
A-
REITs
 
682

 
729

 
2.1
%
 
BBB+
 
716

 
760

 
2.4
%
 
A-
Other finance
 
645

 
722

 
2.1
%
 
A-
 
562

 
594

 
1.9
%
 
A-
      Total financial institutions
 
$
11,550

 
$
12,658

 
37.0
%
 
 
 
$
10,896

 
$
11,653

 
37.2
%
 
 
Industrials
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
1,910

 
$
2,144

 
6.3
%
 
BBB
 
$
1,790

 
$
1,925

 
6.1
%
 
BBB
Capital goods
 
1,444

 
1,530

 
4.5
%
 
BBB
 
1,292

 
1,353

 
4.3
%
 
BBB
Communications
 
2,269

 
2,591

 
7.6
%
 
BBB+
 
2,126

 
2,346

 
7.5
%
 
BBB+
Consumer cyclical
 
1,648

 
1,795

 
5.2
%
 
BBB+
 
1,477

 
1,571

 
5.0
%
 
BBB+
Consumer noncyclical
 
3,207

 
3,619

 
10.5
%
 
BBB+
 
2,898

 
3,147

 
10.0
%
 
BBB+
Energy
 
1,791

 
1,927

 
5.6
%
 
BBB
 
1,939

 
2,099

 
6.7
%
 
BBB+
Technology
 
1,097

 
1,202

 
3.5
%
 
A-
 
974

 
1,027

 
3.3
%
 
A-
Transportation
 
1,860

 
1,954

 
5.7
%
 
BBB+
 
1,791

 
1,919

 
6.1
%
 
A-
Other industrial
 
483

 
518

 
1.5
%
 
BBB+
 
405

 
416

 
1.3
%
 
BBB+
       Total industrials
 
$
15,709

 
$
17,280

 
50.4
%
 
 
 
$
14,692

 
$
15,803

 
50.3
%
 
 
Utilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
$
2,965

 
$
3,366

 
9.8
%
 
A-
 
$
2,810

 
$
3,046

 
9.7
%
 
A-
Natural gas
 
445

 
514

 
1.5
%
 
A-
 
475

 
516

 
1.6
%
 
A-
Other utility
 
375

 
441

 
1.3
%
 
BBB+
 
332

 
375

 
1.2
%
 
A-
       Total utilities
 
$
3,785

 
$
4,321

 
12.6
%
 
 
 
$
3,617

 
$
3,937

 
12.5
%
 
 
     Total
 
$
31,044

 
$
34,259

 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2020
 
June 30, 2020
 
March 31, 2020
 
December 31, 2019
 
September 30, 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
 
$
29,950

 
$
34,406

 
62.9
%
 
$
29,018

 
$
33,246

 
63.5
%
 
$
29,310

 
$
31,660

 
65.2
%
 
$
30,100

 
$
33,284

 
65.2
%
 
$
28,620

 
$
32,128

 
64.9
%
2
 
BBB
 
15,822

 
17,421

 
31.9
%
 
15,222

 
16,555

 
31.6
%
 
14,810

 
14,665

 
30.2
%
 
14,366

 
15,514

 
30.3
%
 
14,130

 
15,213

 
30.7
%
3
 
BB
 
2,103

 
2,118

 
3.9
%
 
1,987

 
1,963

 
3.8
%
 
1,877

 
1,727

 
3.6
%
 
1,706

 
1,748

 
3.4
%
 
1,586

 
1,611

 
3.3
%
4
 
B
 
668

 
641

 
1.2
%
 
560

 
515

 
1.0
%
 
509

 
452

 
0.9
%
 
514

 
518

 
1.0
%
 
443

 
444

 
0.9
%
5
 
CCC
 
108

 
59

 
0.1
%
 
91

 
46

 
0.1
%
 
101

 
41

 
0.1
%
 
36

 
23

 
—
%
 
30

 
29

 
0.1
%
6
 
In or near default
 
10

 
7

 
—
%
 
25

 
21

 
—
%
 
13

 
10

 
—
%
 
31

 
34

 
0.1
%
 
51

 
56

 
0.1
%
 
 
Total
 
$
48,661

 
$
54,652


100.0
%

$
46,903


$
52,346


100.0
%

$
46,620


$
48,555


100.0
%

$
46,753


$
51,121


100.0
%

$
44,860


$
49,481


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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2020
 
June 30, 2020
 
March 31, 2020
 
December 31, 2019
 
September 30, 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
 
$
696

 
$
763

 
11.0
%
 
$
708

 
$
776

 
11.8
%
 
$
726

 
$
796

 
11.8
%
 
$
742

 
$
777

 
10.6
%
 
$
787

 
$
834

 
11.9
%
Non-agency
 
1,231

 
1,264

 
18.4
%
 
1,254

 
1,289

 
19.4
%
 
1,515

 
1,495

 
22.1
%
 
1,597

 
1,621

 
22.3
%
 
1,574

 
1,606

 
22.8
%
Total RMBS
 
1,927

 
2,027

 
29.4
%
 
1,962

 
2,065

 
31.2
%
 
2,241

 
2,291

 
33.9
%
 
2,339

 
2,398

 
32.9
%
 
2,361

 
2,440

 
34.7
%
ABS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateralized loan obligations ("CLOs")
 
1,607

 
1,563

 
22.7
%
 
1,612

 
1,558

 
23.4
%
 
1,725

 
1,558

 
23.0
%
 
1,750

 
1,743

 
24.0
%
 
1,590

 
1,581

 
22.4
%
ABS, excluding CLOs
 
1,359

 
1,359

 
19.8
%
 
1,186

 
1,173

 
17.6
%
 
1,215

 
1,109

 
16.4
%
 
1,223

 
1,235

 
17.0
%
 
1,219

 
1,242

 
17.6
%
Total ABS
 
2,966

 
2,922

 
42.5
%
 
2,798

 
2,731

 
41.0
%
 
2,940

 
2,667

 
39.4
%
 
2,973

 
2,978

 
41.0
%
 
2,809

 
2,823

 
40.0
%
CMBS
 
1,871

 
1,930

 
28.1
%
 
1,850

 
1,851

 
27.8
%
 
1,841

 
1,809

 
26.7
%
 
1,841

 
1,899

 
26.1
%
 
1,698

 
1,782

 
25.3
%
Total
 
$
6,764

 
$
6,879

 
100.0
%
 
$
6,610

 
$
6,647

 
100.0
%
 
$
7,022

 
$
6,767

 
100.0
%
 
$
7,153

 
$
7,275

 
100.0
%
 
$
6,868

 
$
7,045

 
100.0
%
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 33

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
Gross Unrealized Losses Aging
Fixed Maturity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2020
 
June 30, 2020
 
March 31, 2020
 
December 31, 2019
 
September 30, 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%
 
$
276

 
74.6
%
 
$
348

 
77.7
%
 
$
1,052

 
72.0
%
 
$
76

 
69.1
%
 
$
76

 
74.5
%
20% or more for less than six months
 
34

 
9.2
%
 
91

 
20.3
%
 
409

 
28.0
%
 
20

 
18.2
%
 
10

 
9.8
%
20% or more for six months or greater
 
60

 
16.2
%
 
9

 
2.0
%
 
—

 
—
%
 
14

 
12.7
%
 
16

 
15.7
%
Total
 
$
370


100.0
%
 
$
448


100.0
%
 
$
1,461


100.0
%
 
$
110


100.0
%
 
$
102

 
100.0
%

 

 



                                        
 
rgaqfslogoaa01a13.jpg
Page 34

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
Fixed Maturity Securities Below Amortized Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 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
 
$
2,446

 
$
108

 
$
83

 
$
10

 
$
2,529

 
$
118

   RMBS
 
225

 
1

 
—

 
—

 
225

 
1

   ABS
 
1,304

 
37

 
552

 
20

 
1,856

 
57

   CMBS
 
355

 
19

 
—

 
—

 
355

 
19

   U.S. government
 
—

 
—

 
—

 
—

 
—

 
—

   State and political subdivisions
 
84

 
2

 
15

 
2

 
99

 
4

   Other foreign government
 
955

 
35

 
11

 
2

 
966

 
37

Total investment grade securities
 
$
5,369

 
$
202

 
$
661

 
$
34

 
$
6,030

 
$
236

 
 
 
 
 
 
 
 
 
 
 
 
 
Below investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
672

 
$
94

 
$
60

 
$
9

 
$
732

 
$
103

   ABS
 
19

 
14

 
4

 
1

 
23

 
15

   CMBS
 
22

 
3

 
—

 
—

 
22

 
3

   Other foreign government
 
93

 
9

 
13

 
4

 
106

 
13

Total below investment grade securities
 
$
806


$
120


$
77


$
14


$
883


$
134

Total fixed maturity securities
 
$
6,175

 
$
322

 
$
738

 
$
48

 
$
6,913

 
$
370

 
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
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

   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

   ABS
 
—

 
—

 
—

 
—

 
—

 
—

   CMBS
 
—

 
—

 
—

 
—

 
—

 
—

   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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
 
 
 
2020
 
2019
 
Change
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairments and change in allowance for credit losses on fixed maturity securities
 
$
13

 
$
—

 
$
(34
)
 
$
(13
)
 
$
(9
)
 
$
22

 
 
 
$
(21
)
 
$
(18
)
 
$
(3
)
Gain on investment activity
 
16

 
46

 
27

 
35

 
68

 
(52
)
 
 
 
89

 
116

 
(27
)
Loss on investment activity
 
(22
)
 
(46
)
 
(8
)
 
(11
)
 
(13
)
 
(9
)
 
 
 
(76
)
 
(39
)
 
(37
)
Net gains (losses) on fixed maturity securities available-for-sale
 
7

 
—

 
(15
)
 
11

 
46

 
(39
)
 
 
 
(8
)
 
59

 
(67
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gains (losses) on equity securities
 
4

 
8

 
(23
)
 
5

 
4

 
—

 
 
 
(11
)
 
11

 
(22
)
Other impairment losses and change in mortgage loan provision
 
(19
)
 
(22
)
 
(13
)
 
—

 
(4
)
 
(15
)
 
 
 
(54
)
 
(12
)
 
(42
)
Other non-derivative gain (loss), net
 
4

 
8

 
9

 
(1
)
 
4

 
—

 
 
 
21

 
14

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Free-standing derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps - non-hedged
 
(11
)
 
3

 
106

 
(32
)
 
39

 
(50
)
 
 
 
98

 
97

 
1

Financial futures
 
(15
)
 
(48
)
 
44

 
(16
)
 
—

 
(15
)
 
 
 
(19
)
 
(30
)
 
11

Foreign currency swaps - non-hedged
 
4

 
3

 
(13
)
 
4

 
1

 
3

 
 
 
(6
)
 
(4
)
 
(2
)
Foreign currency swaps - hedged
 
1

 
2

 
(8
)
 
2

 
(2
)
 
3

 
 
 
(5
)
 
(6
)
 
1

Foreign currency forwards - non-hedged
 
4

 
1

 
(3
)
 
1

 
—

 
4

 
 
 
2

 
—

 
2

CPI swaps
 
11

 
26

 
(40
)
 
6

 
(8
)
 
19

 
 
 
(3
)
 
(24
)
 
21

Credit default swaps
 
1

 
17

 
(24
)
 
8

 
2

 
(1
)
 
 
 
(6
)
 
22

 
(28
)
Equity options
 
(12
)
 
(25
)
 
53

 
(12
)
 
—

 
(12
)
 
 
 
16

 
(28
)
 
44

Total free-standing derivatives
 
(17
)
 
(21
)
 
115

 
(39
)
 
32

 
(49
)
 
 
 
77

 
27

 
50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Modified coinsurance and funds withheld treaties
 
116

 
1

 
(230
)
 
(1
)
 
9

 
107

 
 
 
(113
)
 
12

 
(125
)
   GMXB
 
(29
)
 
107

 
(128
)
 
47

 
(42
)
 
13

 
 
 
(50
)
 
(42
)
 
(8
)
Total embedded derivatives
 
87

 
108

 
(358
)
 
46

 
(33
)
 
120

 
 
 
(163
)
 
(30
)
 
(133
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on total derivatives
 
70

 
87

 
(243
)
 
7

 
(1
)
 
71

 
 
 
(86
)
 
(3
)
 
(83
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment related gains (losses), net
 
$
66

 
$
81

 
$
(285
)
 
$
22

 
$
49

 
$
17

 
 
 
$
(138
)
 
$
69

 
$
(207
)
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
U.S. & Latin America Traditional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
14

 
$
(158
)
 
$
(62
)
 
$
85

 
$
113

 
$
(99
)
 
 
 
$
(206
)
 
$
180

 
$
(386
)
Change in value of modified coinsurance and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
funds withheld embedded derivatives (1)
 
8

 
(7
)
 
7

 
(2
)
 
10

 
(2
)
 
 
 
8

 
20

 
(12
)
Adjusted operating income (loss) before income taxes
 
$
22

 
$
(165
)
 
$
(55
)
 
$
83

 
$
123

 
$
(101
)
 
 
 
$
(198
)
 
$
200

 
$
(398
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. & Latin America Asset-Intensive
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
50

 
$
93

 
$
(38
)
 
$
78

 
$
100

 
$
(50
)
 
 
 
$
105

 
$
237

 
$
(132
)
Investment and derivative (gains) losses (1)
 
36

 
86

 
(191
)
 
45

 
(81
)
 
117

 
 
 
(69
)
 
(86
)
 
17

Change in value of modified coinsurance and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
funds withheld embedded derivatives (1)
 
(124
)
 
6

 
223

 
3

 
(19
)
 
(105
)
 
 
 
105

 
(32
)
 
137

GMXB embedded derivatives (1)
 
29

 
(107
)
 
128

 
(47
)
 
42

 
(13
)
 
 
 
50

 
42

 
8

Funds withheld (gains) losses - investment income
 
1

 
(1
)
 
(1
)
 
—

 
—

 
1

 
 
 
(1
)
 
5

 
(6
)
EIA embedded derivatives - interest credited
 
6

 
7

 
12

 
(10
)
 
36

 
(30
)
 
 
 
25

 
56

 
(31
)
DAC offset, net
 
79

 
(21
)
 
(87
)
 
(4
)
 
(13
)
 
92

 
 
 
(29
)
 
(28
)
 
(1
)
Non-investment derivatives and other
 
—

 
—

 
(3
)
 
—

 
—

 
—

 
 
 
(3
)
 
—

 
(3
)
Adjusted operating income before income taxes
 
$
77

 
$
63

 
$
43

 
$
65

 
$
65

 
$
12

 
 
 
$
183

 
$
194

 
$
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. & Latin America Capital Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
24

 
$
24

 
$
23

 
$
26

 
$
19

 
$
5

 
 
 
$
71

 
$
57

 
$
14

Adjusted operating income before income taxes
 
$
24

 
$
24

 
$
23

 
$
26

 
$
19

 
$
5

 
 
 
$
71

 
$
57

 
$
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Canada Traditional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
30

 
$
44

 
$
23

 
$
28

 
$
43

 
$
(13
)
 
 
 
$
97

 
$
140

 
$
(43
)
Investment and derivative (gains) losses (1)
 
—

 
(5
)
 
14

 
(1
)
 
1

 
(1
)
 
 
 
9

 
(6
)
 
15

Investment income - non-operating FWAI
 
(1
)
 
1

 
(1
)
 
—

 
—

 
(1
)
 
 
 
(1
)
 
—

 
(1
)
Adjusted operating income before income taxes
 
$
29

 
$
40

 
$
36

 
$
27

 
$
44

 
$
(15
)
 
 
 
$
105

 
$
134

 
$
(29
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Canada Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
6

 
$
4

 
$
3

 
$
7

 
$
3

 
$
3

 
 
 
$
13

 
$
8

 
$
5

Adjusted operating income before income taxes
 
$
6

 
$
4

 
$
3

 
$
7

 
$
3

 
$
3

 
 
 
$
13

 
$
8

 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
Year-to-Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Europe, Middle East and Africa Traditional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
7

 
$
16

 
$
17

 
$
23

 
$
25

 
$
(18
)
 
 
 
$
40

 
$
57

 
$
(17
)
Adjusted operating income before income taxes
 
$
7

 
$
16

 
$
17

 
$
23

 
$
25

 
$
(18
)
 
 
 
$
40

 
$
57

 
$
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Europe, Middle East and Africa Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
92

 
$
98

 
$
30

 
$
72

 
$
61

 
$
31

 
 
 
$
220

 
$
151

 
$
69

Investment and derivative (gains) losses (1)
 
(5
)
 
(16
)
 
6

 
(1
)
 
(2
)
 
(3
)
 
 
 
(15
)
 
(8
)
 
(7
)
Investment income - non-operating FWAI
 
(1
)
 
(3
)
 
—

 
—

 
—

 
(1
)
 
 
 
(4
)
 
—

 
(4
)
Investment (income) loss on unit-linked variable annuities
 
1

 
(15
)
 
16

 
1

 
(12
)
 
13

 
 
 
2

 
(27
)
 
29

Interest credited on unit-linked variable annuities
 
(1
)
 
15

 
(16
)
 
(1
)
 
12

 
(13
)
 
 
 
(2
)
 
27

 
(29
)
Non-investment derivatives and other
 
—

 
—

 
—

 
2

 
—

 
—

 
 
 
—

 
—

 
—

Adjusted operating income before income taxes
 
$
86

 
$
79

 
$
36

 
$
73

 
$
59

 
$
27

 
 
 
$
201

 
$
143

 
$
58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific Traditional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
78

 
$
47

 
$
24

 
$
12

 
$
22

 
$
56

 
 
 
$
149

 
$
93

 
$
56

Adjusted operating income before income taxes
 
$
78

 
$
47

 
$
24

 
$
12

 
$
22

 
$
56

 
 
 
$
149

 
$
93

 
$
56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
10

 
$
26

 
$
(25
)
 
$
13

 
$
2

 
$
8

 
 
 
$
11

 
$
10

 
$
1

Investment and derivative (gains) losses (1)
 
(1
)
 
(14
)
 
35

 
(5
)
 
3

 
(4
)
 
 
 
20

 
2

 
18

Adjusted operating income before income taxes
 
$
9

 
$
12

 
$
10

 
$
8

 
$
5

 
$
4

 
 
 
$
31

 
$
12

 
$
19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(26
)
 
$
1

 
$
(91
)
 
$
(36
)
 
$
(41
)
 
$
15

 
 
 
$
(116
)
 
$
(109
)
 
$
(7
)
Investment and derivative (gains) losses (1)
 
(13
)
 
(20
)
 
68

 
(8
)
 
2

 
(15
)
 
 
 
35

 
12

 
23

Interest expense on uncertain tax positions
 
1

 
4

 
4

 
4

 
9

 
(8
)
 
 
 
9

 
14

 
(5
)
Non-investment derivatives and other
 
1

 
4

 
—

 
—

 
—

 
1

 
 
 
5

 
—

 
5

Adjusted operating loss before income taxes
 
$
(37
)
 
$
(11
)
 
$
(19
)
 
$
(40
)
 
$
(30
)
 
$
(7
)
 
 
 
$
(67
)
 
$
(83
)
 
$
16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity
 
$
13,214

 
$
12,553

 
$
9,301

 
$
11,601

 
$
11,524

Less effect of AOCI:
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustments
 
(171
)
 
(210
)
 
(223
)
 
(92
)
 
(157
)
Unrealized appreciation of securities
 
4,542

 
4,089

 
1,426

 
3,299

 
3,472

Pension and postretirement benefits
 
(82
)
 
(78
)
 
(73
)
 
(70
)
 
(57
)
Stockholders’ equity, excluding AOCI
 
$
8,925

 
$
8,752

 
$
8,171

 
$
8,464

 
$
8,266

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliations of Book Value Per Share to Book Value Per Share Excluding AOCI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
 
2020
 
2020
 
2020
 
2019
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share
 
$
194.49

 
$
184.78

 
$
150.88

 
$
185.17

 
$
184.06

Less effect of AOCI:
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustments
 
(2.51
)
 
(3.09
)
 
(3.62
)
 
(1.46
)
 
(2.51
)
Unrealized appreciation of securities
 
66.86

 
60.19

 
23.14

 
52.65

 
55.46

Pension and postretirement benefits
 
(1.22
)
 
(1.14
)
 
(1.19
)
 
(1.12
)
 
(0.91
)
Book value per share, excluding AOCI
 
$
131.36

 
$
128.82

 
$
132.55

 
$
135.10

 
$
132.02



                                        
 
rgaqfslogoaa01a13.jpg
Page 41