EX-99.2 3 qfs2q20.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2
 rgalogospelledoutaa01a13.jpg
Quarterly Financial Supplement
Second 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
2nd Quarter 2020
Table of Contents
 
Page
Non-GAAP Disclosures
 
 
2020 Notes
 
 
Consolidated
 
 
 
Financial Highlights
 
 
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)
 
 
Consolidated Balance Sheets
 
 
Segment Summaries of GAAP Income Statements and Adjusted Operating Income Statements
 
 
 
U.S. and Latin America Traditional
 
 
U.S. and Latin America Financial Solutions - Asset Intensive
 
 
U.S. and Latin America Financial Solutions - Capital Solutions
 
 
Canada Traditional
 
 
Canada Financial Solutions
 
 
Europe, Middle East and Africa Traditional
 
 
Europe, Middle East and Africa Financial Solutions
 
 
Asia Pacific Traditional
 
 
Asia Pacific Financial Solutions
 
 
Corporate and Other
 
 
Summary of Segment GAAP Income
 
 
Summary of Segment Adjusted Operating Income
 
 
Investments
 
 
 
Cash and Invested Assets and Investment Income and Yield Summary
 
 
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Fixed Maturity Securities
 
 
Corporate Fixed Maturity Securities by Industry
 
 
Ratings of Fixed Maturity Securities and Structured Fixed Maturity Securities
 
 
Gross Unrealized Losses Aging - Fixed Maturity Securities
 
 
Fixed Maturity Securities Below Amortized Cost
 
 
Consolidated Investment Related Gains and Losses
 
 
Appendix
 
 
 
Reconciliations of GAAP to Non-GAAP Measures
 
 
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Reinsurance Group of America, Incorporated
Non-GAAP Disclosures
This Quarterly Financial Supplement is for information purposes only and includes unaudited figures. This report should be read in conjunction with documents filed by Reinsurance Group of America, Incorporated (“RGA”) with the SEC. The consolidated financial information herein include the assets, liabilities, and results of operations of RGA and its subsidiaries, all of which are wholly owned (collectively, the “Company”).
Non-GAAP Disclosures
RGA uses a non-GAAP financial measure called adjusted operating income as a basis for analyzing financial results. This measure also serves as a basis for establishing target levels and awards under RGA’s management incentive programs. Management believes that adjusted operating income, on a pre-tax and after-tax basis, better measures the ongoing profitability and underlying trends of the Company’s continuing operations, primarily because that measure excludes substantially all of the effect of net investment related gains and losses, as well as changes in the fair value of certain embedded derivatives and related deferred acquisition costs. These items can be volatile, primarily due to the credit market and interest rate environment and are not necessarily indicative of the performance of the Company’s underlying businesses. Additionally, adjusted operating income excludes any net gain or loss from discontinued operations, the cumulative effect of any accounting changes, tax reform and other items that management believes are not indicative of the Company’s ongoing operations. The definition of adjusted operating income can vary by company and is not considered a substitute for GAAP net income. A reconciliation of income before income taxes of the operating segments to adjusted operating income before income tax is presented in the appendix.
RGA evaluates its shareholders’ equity position excluding the impact of accumulated other comprehensive income (“AOCI”) since the net unrealized gains or losses included in AOCI primarily relate to changes in interest rates, credit spreads on its investment securities and foreign currency fluctuations that are not permanent and can fluctuate significantly from period to period.
RGA uses a non-GAAP financial measure called adjusted operating return on equity, which is calculated as adjusted operating income divided by average shareholders’ equity excluding AOCI. Additionally, RGA uses a non-GAAP financial measure called book value per share excluding the impact of AOCI that management believes is important in evaluating the balance sheet in order to ignore the effects of unrealized amounts primarily associated with mark-to-market adjustments on investments and foreign currency translation. A reconciliation of shareholders’ equity before and after the impact of AOCI is presented in the appendix.







                                        
 
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Page 1

    

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


                                        
 
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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)
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
 
 
 
2020
 
2019
 
Change
Net premiums
 
$
2,790

 
$
2,819

 
$
2,986

 
$
2,809

 
$
2,764

 
$
26

 
 
 
$
5,609

 
$
5,502

 
$
107

Net income (loss)
 
158

 
(88
)
 
235

 
263

 
202

 
(44
)
 
 
 
70

 
372

 
(302
)
Adjusted operating income
 
87

 
89

 
219

 
256

 
211

 
(124
)
 
 
 
176

 
378

 
(202
)
Return on equity - annualized
 
5.8
%
 
(3.4
)%
 
8.1
%
 
9.5
%
 
8.0
%
 
(2.2
)%
 
 
 
 
 
 
 


Return on equity - trailing 12 months
 
5.1
%
 
5.8
 %
 
8.4
%
 
7.6
%
 
8.5
%
 
(3.4
)%
 
 
 
 
 
 
 


Adjusted operating return on equity (ex AOCI):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Annualized
 
4.1
%
 
4.3
 %
 
10.5
%
 
12.6
%
 
10.6
%
 
(6.5
)%
 
 
 
 
 
 
 


Trailing 12 months
 
7.8
%
 
9.5
 %
 
10.5
%
 
10.7
%
 
11.0
%
 
(3.2
)%
 
 
 
 
 
 
 


Total assets
 
$80,729
 
$75,654
 
$76,731
 
$75,774
 
$72,044
 
$8,685
 
 
 
 
 
 
 

Assumed Life Reinsurance In Force (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

U.S. and Latin America Traditional
 
$
1,620.5

 
$
1,618.4

 
$
1,619.6

 
$
1,618.5

 
$
1,623.0

 
$
(2.5
)
 
 
 
 
 
 
 


U.S. and Latin America Financial Solutions
 
5.4

 
5.4

 
5.1

 
5.2

 
2.0

 
3.4

 
 
 
 
 
 
 


Canada Traditional
 
409.2

 
389.5

 
417.1

 
401.7

 
406.1

 
3.1

 
 
 
 
 
 
 


Europe, Middle East and Africa Traditional
 
772.8

 
763.1

 
776.4

 
707.8

 
715.8

 
57.0

 
 
 
 
 
 
 


Asia Pacific Traditional
 
649.5

 
635.6

 
662.0

 
626.6

 
630.3

 
19.2

 
 
 
 
 
 
 


Asia Pacific Financial Solutions
 
0.4

 
0.4

 
—

 
—

 
—

 
0.4

 
 
 
 
 
 
 


Total assumed life reinsurance in force
 
$
3,457.8

 
$
3,412.4

 
$
3,480.2

 
$
3,359.8

 
$
3,377.2

 
$
80.6

 
 
 
 
 
 
 
 
Assumed New Business Production (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. and Latin America Traditional
 
$
25.3

 
$
34.0

 
$
38.4

 
$
23.9

 
$
24.7

 
$
0.6

 
 
 
$
59.3

 
$
53.5

 
$
5.8

U.S. and Latin America Financial Solutions
 
—

 
—

 
—

 
3.2

 
—

 
—

 
 
 
—

 
—

 
—

Canada Traditional
 
9.1

 
12.2

 
14.9

 
8.1

 
9.0

 
0.1

 
 
 
21.3

 
17.4

 
3.9

Europe, Middle East and Africa Traditional
 
65.1

 
32.9

 
55.0

 
32.1

 
27.1

 
38.0

 
 
 
98.0

 
60.3

 
37.7

Asia Pacific Traditional
 
16.6

 
15.7

 
20.2

 
31.0

 
9.6

 
7.0

 
 
 
32.3

 
18.5

 
13.8

Total assumed new business production
 
$
116.1

 
$
94.8

 
$
128.5

 
$
98.3

 
$
70.4

 
$
45.7

 
 
 
$
210.9

 
$
149.7

 
$
61.2

Per Share and Shares Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
2.49

 
$
(1.41
)
 
$
3.75

 
$
4.19

 
$
3.23

 
$
(0.74
)
 
 
 
$
1.12

 
$
5.93

 
$
(4.81
)
Adjusted operating income
 
$
1.37

 
$
1.43

 
$
3.49

 
$
4.09

 
$
3.36

 
$
(1.99
)
 
 
 
$
2.80

 
$
6.03

 
$
(3.23
)
Diluted earnings per share (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) (1)
 
$
2.48

 
$
(1.41
)
 
$
3.68

 
$
4.12

 
$
3.18

 
$
(0.70
)
 
 
 
$
1.11

 
$
5.83

 
$
(4.72
)
Adjusted operating income
 
$
1.36

 
$
1.41

 
$
3.43

 
$
4.02

 
$
3.31

 
$
(1.95
)
 
 
 
$
2.78

 
$
5.92

 
$
(3.14
)
Wgt. average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
63,449

 
62,138

 
62,633

 
62,666

 
62,678

 
771

 
 
 
62,800

 
62,719

 
81

Diluted
 
63,749

 
63,001

 
63,774

 
63,789

 
63,698

 
51

 
 
 
63,298

 
63,819

 
(521
)
Common shares issued
 
85,311

 
79,138

 
79,138

 
79,138

 
79,138

 
6,173

 
 
 
85,311

 
79,138

 
6,173

Treasury shares
 
17,375

 
17,492

 
16,482

 
16,529

 
16,380

 
995

 
 
 
17,375

 
16,380

 
995

Common shares outstanding
 
67,936

 
61,646

 
62,656

 
62,609

 
62,758

 
5,178

 
 
 
67,936

 
62,758

 
5,178

Book value per share
 
$
184.78

 
$
150.88

 
$
185.17

 
$
184.06

 
$
170.64

 
$
14.14

 
 
 
 
 
 
 
 
Per share effect of AOCI
 
$
55.96

 
$
18.33

 
$
50.07

 
$
52.04

 
$
42.10

 
$
13.86

 
 
 
 
 
 
 
 
Book value per share, excluding AOCI
 
$
128.82

 
$
132.55

 
$
135.10

 
$
132.02

 
$
128.54

 
$
0.28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ dividends paid
 
$
43

 
$
44

 
$
44

 
$
44

 
$
38

 
$
5

 
 
 
$
87

 
$
75

 
$
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
2,790

 
$
2,819

 
$
2,986

 
$
2,809

 
$
2,764

 
$
26

 
 
 
$
5,609

 
$
5,502

 
$
107

Investment income, net of related expenses
 
645

 
594

 
677

 
679

 
584

 
61

 
 
 
1,239

 
1,164

 
75

Investment related gains (losses), net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
—

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

 
(34
)
 
(13
)
 
(9
)
 
—

 
—

 
 
 
(34
)
 
(9
)
 
(25
)
Other investment related gains (losses), net
 
81

 
(251
)
 
35

 
58

 
12

 
69

 
 
 
(170
)
 
29

 
(199
)
Total investment related gains (losses), net
 
81

 
(285
)
 
22

 
49

 
12

 
69

 
 
 
(204
)
 
20

 
(224
)
Other revenue
 
90

 
76

 
100

 
91

 
107

 
(17
)
 
 
 
166

 
201

 
(35
)
Total revenues
 
3,606

 
3,204

 
3,785

 
3,628

 
3,467

 
139

 
 
 
6,810

 
6,887

 
(77
)
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Claims and other policy benefits
 
2,700

 
2,664

 
2,703

 
2,470

 
2,516

 
184

 
 
 
5,364

 
5,024

 
340

Interest credited
 
187

 
146

 
180

 
226

 
158

 
29

 
 
 
333

 
291

 
42

Policy acquisition costs and other insurance expenses
 
290

 
248

 
310

 
322

 
260

 
30

 
 
 
538

 
572

 
(34
)
Other operating expenses
 
188

 
195

 
234

 
210

 
222

 
(34
)
 
 
 
383

 
424

 
(41
)
Interest expense
 
42

 
41

 
44

 
46

 
43

 
(1
)
 
 
 
83

 
83

 
—

Collateral finance and securitization expense
 
4

 
6

 
6

 
7

 
8

 
(4
)
 
 
 
10

 
16

 
(6
)
Total benefits and expenses
 
3,411

 
3,300

 
3,477

 
3,281

 
3,207

 
204

 
 
 
6,711

 
6,410

 
301

Income (loss) before income taxes
 
195

 
(96
)
 
308

 
347

 
260

 
(65
)
 
 
 
99

 
477

 
(378
)
Provision for income taxes
 
37

 
(8
)
 
73

 
84

 
58

 
(21
)
 
 
 
29

 
105

 
(76
)
Net income (loss)
 
$
158

 
$
(88
)
 
$
235

 
$
263

 
$
202

 
$
(44
)
 
 
 
$
70

 
$
372

 
$
(302
)
Pre-tax adjusted operating income reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
195

 
$
(96
)
 
$
308

 
$
347

 
$
260

 
$
(65
)
 
 
 
$
99

 
$
477

 
$
(378
)
Investment and derivative (gains) losses (1)
 
31

 
(68
)
 
30

 
(77
)
 
(22
)
 
53

 
 
 
(37
)
 
(9
)
 
(28
)
Change in value of modified coinsurance and funds withheld embedded derivatives (1)
 
(1
)
 
230

 
1

 
(9
)
 
(5
)
 
4

 
 
 
229

 
(3
)
 
232

GMXB embedded derivatives (1)
 
(107
)
 
128

 
(47
)
 
42

 
18

 
(125
)
 
 
 
21

 
—

 
21

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

 
—

 
(1
)
 
(2
)
 
 
 
(5
)
 
5

 
(10
)
EIA embedded derivatives - interest credited
 
7

 
12

 
(10
)
 
36

 
18

 
(11
)
 
 
 
19

 
20

 
(1
)
DAC offset, net
 
(21
)
 
(87
)
 
(4
)
 
(13
)
 
(3
)
 
(18
)
 
 
 
(108
)
 
(15
)
 
(93
)
Investment (income) loss on unit-linked variable annuities
 
(15
)
 
16

 
1

 
(12
)
 
(3
)
 
(12
)
 
 
 
1

 
(15
)
 
16

Interest credited on unit-linked variable annuities
 
15

 
(16
)
 
(1
)
 
12

 
3

 
12

 
 
 
(1
)
 
15

 
(16
)
Interest expense on uncertain tax positions
 
4

 
4

 
4

 
9

 
2

 
2

 
 
 
8

 
5

 
3

Non-investment derivatives and other
 
4

 
(3
)
 
2

 
—

 
—

 
4

 
 
 
1

 
—

 
1

Adjusted operating income before income taxes
 
$
109

 
$
118

 
$
284

 
$
335

 
$
267

 
$
(158
)
 
 
 
$
227

 
$
480

 
$
(253
)
(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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
After-tax adjusted operating income reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
158

 
$
(88
)
 
$
235

 
$
263

 
$
202

 
$
(44
)
 
 
 
$
70

 
$
372

 
$
(302
)
Investment and derivative (gains) losses (1)
 
23

 
(51
)
 
25

 
(61
)
 
(15
)
 
38

 
 
 
(28
)
 
(7
)
 
(21
)
Change in value of modified coinsurance and funds withheld embedded derivatives (1)
 
(1
)
 
182

 
—

 
(7
)
 
(4
)
 
3

 
 
 
181

 
(2
)
 
183

GMXB embedded derivatives (1)
 
(84
)
 
101

 
(37
)
 
33

 
14

 
(98
)
 
 
 
17

 
—

 
17

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

 
—

 
(1
)
 
(1
)
 
 
 
(4
)
 
4

 
(8
)
EIA embedded derivatives - interest credited
 
6

 
9

 
(8
)
 
28

 
14

 
(8
)
 
 
 
15

 
16

 
(1
)
DAC offset, net
 
(16
)
 
(69
)
 
(3
)
 
(10
)
 
(3
)
 
(13
)
 
 
 
(85
)
 
(12
)
 
(73
)
Investment (income) loss on unit-linked variable annuities
 
(12
)
 
13

 
—

 
(9
)
 
(3
)
 
(9
)
 
 
 
1

 
(12
)
 
13

Interest credited on unit-linked variable annuities
 
12

 
(13
)
 
—

 
9

 
3

 
9

 
 
 
(1
)
 
12

 
(13
)
Interest expense on uncertain tax positions
 
3

 
3

 
3

 
7

 
2

 
1

 
 
 
6

 
4

 
2

Non-investment derivatives and other
 
3

 
(2
)
 
2

 
—

 
—

 
3

 
 
 
1

 
—

 
1

Uncertain tax positions and other tax related items
 
(3
)
 
6

 
2

 
3

 
2

 
(5
)
 
 
 
3

 
3

 
—

Adjusted operating income
 
$
87

 
$
89

 
$
219

 
$
256

 
$
211

 
$
(124
)
 
 
 
$
176

 
$
378

 
$
(202
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wgt. average common shares outstanding (diluted)
 
63,749

 
63,001

 
63,774

 
63,789

 
63,698

 
51

 
 
 
63,298

 
63,819

 
(521
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share - adjusted operating income
 
$
1.36

 
$
1.41

 
$
3.43

 
$
4.02

 
$
3.31

 
$
(1.95
)
 
 
 
$
2.78

 
$
5.92

 
$
(3.14
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(46
)
 
$
(33
)
 
$
(5
)
 
$
(35
)
 
$
(60
)
 
$
14

 
 
 
$
(79
)
 
$
(139
)
 
$
60

Adjusted operating income before income taxes
 
$
(4
)
 
$
(1
)
 
$
1

 
$
(2
)
 
$
(5
)
 
$
1

 
 
 
$
(5
)
 
$
(14
)
 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
 
2020
 
2020
 
2019
 
2019
 
2019
Assets
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities, available-for-sale
 
$
52,346

 
$
48,555

 
$
51,121

 
$
49,481

 
$
46,189

Equity securities
 
130

 
112

 
320

 
135

 
147

Mortgage loans on real estate
 
5,974

 
6,014

 
5,706

 
5,647

 
5,405

Policy loans
 
1,310

 
1,314

 
1,319

 
1,290

 
1,320

Funds withheld at interest
 
5,250

 
5,258

 
5,662

 
5,614

 
5,696

Short-term investments
 
84

 
117

 
64

 
108

 
159

Other invested assets
 
2,547

 
2,542

 
2,363

 
2,215

 
2,122

Total investments
 
67,641

 
63,912

 
66,555

 
64,490

 
61,038

Cash and cash equivalents
 
4,313

 
2,820

 
1,449

 
2,636

 
2,288

Accrued investment income
 
494

 
510

 
493

 
520

 
470

Premiums receivable and other reinsurance balances
 
2,852

 
2,836

 
2,940

 
2,818

 
2,945

Reinsurance ceded receivables
 
945

 
889

 
904

 
863

 
851

Deferred policy acquisition costs
 
3,565

 
3,622

 
3,512

 
3,411

 
3,440

Other assets
 
919

 
1,065

 
878

 
1,036

 
1,012

Total assets
 
$
80,729

 
$
75,654

 
$
76,731

 
$
75,774

 
$
72,044

 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
Future policy benefits
 
$
29,897

 
$
29,521

 
$
28,672

 
$
27,086

 
$
26,996

Interest-sensitive contract liabilities
 
23,118

 
23,164

 
22,711

 
22,345

 
19,749

Other policy claims and benefits
 
6,232

 
5,854

 
5,711

 
6,147

 
6,136

Other reinsurance balances
 
510

 
596

 
557

 
513

 
513

Deferred income taxes
 
2,856

 
2,163

 
2,712

 
2,762

 
2,444

Other liabilities
 
1,557

 
1,505

 
1,188

 
1,406

 
1,481

Long-term debt
 
3,573

 
2,981

 
2,981

 
3,381

 
3,381

Collateral finance and securitization notes
 
433

 
569

 
598

 
610

 
635

Total liabilities
 
68,176

 
66,353

 
65,130

 
64,250

 
61,335

 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity:
 
 
 
 
 
 
 
 
 
 
Common stock, at par value
 
1

 
1

 
1

 
1

 
1

Additional paid-in-capital
 
2,413

 
1,942

 
1,937

 
1,928

 
1,920

Retained earnings
 
7,901

 
7,802

 
7,952

 
7,766

 
7,550

Treasury stock
 
(1,563
)
 
(1,574
)
 
(1,426
)
 
(1,429
)
 
(1,404
)
Accumulated other comprehensive income (AOCI):
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustment, net of income taxes
 
(210
)
 
(223
)
 
(92
)
 
(157
)
 
(123
)
Unrealized appreciation of securities, net of income taxes
 
4,089

 
1,426

 
3,299

 
3,472

 
2,816

Pension and postretirement benefits, net of income taxes
 
(78
)
 
(73
)
 
(70
)
 
(57
)
 
(51
)
Total stockholders’ equity
 
12,553

 
9,301

 
11,601

 
11,524

 
10,709

Total liabilities and stockholders’ equity
 
$
80,729

 
$
75,654

 
$
76,731

 
$
75,774

 
$
72,044

 
 
 
 
 
 
 
 
 
 
 
Total stockholders’ equity, excluding AOCI
 
$
8,752

 
$
8,171

 
$
8,464

 
$
8,266

 
$
8,067

 
 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
1,454

 
$
1,373

 
$
1,558

 
$
1,404

 
$
1,410

 
$
44

 
 
 
$
2,827

 
$
2,767

 
$
60

Investment income, net of related expenses
 
177

 
161

 
200

 
210

 
173

 
4

 
 
 
338

 
359

 
(21
)
Investment related gains (losses), net
 
7

 
(7
)
 
2

 
(10
)
 
(4
)
 
11

 
 
 
—

 
(10
)
 
10

Other revenue
 
4

 
6

 
5

 
6

 
5

 
(1
)
 
 
 
10

 
9

 
1

Total revenues
 
1,642

 
1,533

 
1,765

 
1,610

 
1,584

 
58

 
 
 
3,175

 
3,125

 
50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1,558

 
1,367

 
1,427

 
1,241

 
1,293

 
265

 
 
 
2,925

 
2,593

 
332

Interest credited
 
18

 
19

 
19

 
20

 
19

 
(1
)
 
 
 
37

 
39

 
(2
)
Policy acquisition costs and other insurance expenses
 
195

 
175

 
195

 
201

 
180

 
15

 
 
 
370

 
356

 
14

Other operating expenses
 
29

 
34

 
39

 
35

 
37

 
(8
)
 
 
 
63

 
70

 
(7
)
Total benefits and expenses
 
1,800

 
1,595

 
1,680

 
1,497

 
1,529

 
271

 
 
 
3,395

 
3,058

 
337

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(158
)
 
$
(62
)
 
$
85

 
$
113

 
$
55

 
$
(213
)
 
 
 
$
(220
)
 
$
67

 
$
(287
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
107.2
%
 
99.6
%
 
91.6
%
 
88.4
%
 
91.7
%
 
15.5
 %
 
 
 
103.5
%
 
93.7
%
 
9.8
 %
Policy acquisition costs and other insurance expenses
 
13.4
%
 
12.7
%
 
12.5
%
 
14.4
%
 
12.8
%
 
0.6
 %
 
 
 
13.1
%
 
12.9
%
 
0.2
 %
Other operating expenses
 
2.0
%
 
2.5
%
 
2.5
%
 
2.5
%
 
2.6
%
 
(0.6
)%
 
 
 
2.2
%
 
2.5
%
 
(0.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(3
)
 
$
—

 
$
1

 
$
—

 
$
—

 
$
(3
)
 
 
 
$
(3
)
 
$
—

 
$
(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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Qtr vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
1,454

 
$
1,373

 
$
1,558

 
$
1,404

 
$
1,410

 
$
44

 
 
 
$
2,827

 
$
2,767

 
$
60

Investment income, net of related expenses
 
177

 
161

 
200

 
210

 
173

 
4

 
 
 
338

 
359

 
(21
)
Other revenue
 
4

 
6

 
5

 
6

 
5

 
(1
)
 
 
 
10

 
9

 
1

Total revenues
 
1,635

 
1,540

 
1,763

 
1,620

 
1,588

 
47

 
 
 
3,175

 
3,135

 
40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1,558

 
1,367

 
1,427

 
1,241

 
1,293

 
265

 
 
 
2,925

 
2,593

 
332

Interest credited
 
18

 
19

 
19

 
20

 
19

 
(1
)
 
 
 
37

 
39

 
(2
)
Policy acquisition costs and other insurance expenses
 
195

 
175

 
195

 
201

 
180

 
15

 
 
 
370

 
356

 
14

Other operating expenses
 
29

 
34

 
39

 
35

 
37

 
(8
)
 
 
 
63

 
70

 
(7
)
Total benefits and expenses
 
1,800

 
1,595

 
1,680

 
1,497

 
1,529

 
271

 
 
 
3,395

 
3,058

 
337

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income (loss) before income taxes
 
$
(165
)
 
$
(55
)
 
$
83

 
$
123

 
$
59

 
$
(224
)
 
 
 
$
(220
)
 
$
77

 
$
(297
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
107.2
%
 
99.6
%
 
91.6
%
 
88.4
%
 
91.7
%
 
15.5
 %
 
 
 
103.5
%
 
93.7
%
 
9.8
 %
Policy acquisition costs and other insurance expenses
 
13.4
%
 
12.7
%
 
12.5
%
 
14.4
%
 
12.8
%
 
0.6
 %
 
 
 
13.1
%
 
12.9
%
 
0.2
 %
Other operating expenses
 
2.0
%
 
2.5
%
 
2.5
%
 
2.5
%
 
2.6
%
 
(0.6
)%
 
 
 
2.2
%
 
2.5
%
 
(0.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(3
)
 
$
—

 
$
1

 
$
—

 
$
—

 
$
(3
)
 
 
 
$
(3
)
 
$
—

 
$
(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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
15

 
$
12

 
$
11

 
$
12

 
$
9

 
$
6

 
 
 
$
27

 
$
16

 
$
11

Investment income, net of related expenses
 
241

 
233

 
272

 
254

 
204

 
37

 
 
 
474

 
401

 
73

Investment related gains (losses), net
 
15

 
(160
)
 
(1
)
 
58

 
17

 
(2
)
 
 
 
(145
)
 
18

 
(163
)
Other revenue
 
24

 
28

 
28

 
36

 
50

 
(26
)
 
 
 
52

 
73

 
(21
)
Total revenues
 
295

 
113

 
310

 
360

 
280

 
15

 
 
 
408

 
508

 
(100
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
49

 
53

 
51

 
49

 
49

 
—

 
 
 
102

 
97

 
5

Interest credited
 
139

 
129

 
144

 
183

 
124

 
15

 
 
 
268

 
213

 
55

Policy acquisition costs and other insurance expenses
 
7

 
(38
)
 
28

 
21

 
25

 
(18
)
 
 
 
(31
)
 
44

 
(75
)
Other operating expenses
 
7

 
7

 
9

 
7

 
10

 
(3
)
 
 
 
14

 
17

 
(3
)
Total benefits and expenses
 
202

 
151

 
232

 
260

 
208

 
(6
)
 
 
 
353

 
371

 
(18
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
93

 
$
(38
)
 
$
78

 
$
100

 
$
72

 
$
21

 
 
 
$
55

 
$
137

 
$
(82
)
 
 

 

 

 

 

 

 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
15

 
$
12

 
$
11

 
$
12

 
$
9

 
$
6

 
 
 
$
27

 
$
16

 
$
11

Investment income, net of related expenses
 
240

 
232

 
272

 
254

 
203

 
37

 
 
 
472

 
406

 
66

Other revenue
 
24

 
25

 
28

 
36

 
50

 
(26
)
 
 
 
49

 
73

 
(24
)
Total revenues
 
279

 
269

 
311

 
302

 
262

 
17

 
 
 
548

 
495

 
53

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
49

 
53

 
51

 
49

 
49

 
—

 
 
 
102

 
97

 
5

Interest credited
 
132

 
117

 
154

 
147

 
106

 
26

 
 
 
249

 
193

 
56

Policy acquisition costs and other insurance expenses
 
28

 
49

 
32

 
34

 
28

 
—

 
 
 
77

 
59

 
18

Other operating expenses
 
7

 
7

 
9

 
7

 
10

 
(3
)
 
 
 
14

 
17

 
(3
)
Total benefits and expenses
 
216

 
226

 
246

 
237

 
193

 
23

 
 
 
442

 
366

 
76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
63

 
$
43

 
$
65

 
$
65

 
$
69

 
$
(6
)
 
 
 
$
106

 
$
129

 
$
(23
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
 
2020
 
2020
 
2019
 
2019
 
2019
Annuity account values:
 
 
 
 
 
 
 
 
 
 
Fixed annuities (deferred)
 
$
10,932

 
$
11,022

 
$
11,140

 
$
11,149

 
$
10,374

 
 
 
 
 
 
 
 
 
 
 
Net interest spread (fixed annuities)
 
1.3
%
 
1.4
%
 
1.5
%
 
1.4
%
 
1.5
%
 
 
 
 
 
 
 
 
 
 
 
Equity-indexed annuities
 
$
3,516

 
$
3,531

 
$
3,589

 
$
3,635

 
$
3,656

 
 
 
 
 
 
 
 
 
 
 
Variable annuities account values
 
 
 
 
 
 
 
 
 
 
No riders
 
$
753

 
$
718

 
$
711

 
$
1,471

 
$
1,486

GMDB only
 
760

 
762

 
837

 
160

 
164

GMIB only
 
22

 
20

 
23

 
22

 
22

GMAB only
 
3

 
3

 
4

 
4

 
4

GMWB only
 
1,016

 
937

 
1,123

 
1,100

 
1,127

GMDB / WB
 
247

 
232

 
278

 
272

 
278

Other
 
17

 
15

 
18

 
17

 
17

Total variable annuities account values
 
$
2,818

 
$
2,687

 
$
2,994

 
$
3,046

 
$
3,098

 
 
 
 
 
 
 
 
 
 
 
Fair value of liabilities associated with living benefit riders
 
$
184

 
$
291

 
$
163

 
$
210

 
$
168

 
 
 
 
 
 
 
 
 
 
 
Interest-sensitive contract liabilities associated with:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts
 
$
990

 
$
991

 
$
907

 
$
969

 
$
1,003

 
 
 
 
 
 
 
 
 
 
 
Bank-owned life insurance (BOLI)
 
$
2,444

 
$
2,435

 
$
2,459

 
$
2,452

 
$
602

 
 
 
 
 
 
 
 
 
 
 
Other asset-intensive business
 
$
127

 
$
128

 
$
130

 
$
133

 
$
133

 
 
 
 
 
 
 
 
 
 
 
Future policy benefits associated with:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payout annuities
 
$
4,655

 
$
4,713

 
$
4,776

 
$
4,844

 
$
4,906



                                        
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
2

 
$
1

 
$
1

 
$
1

 
$
1

 
$
1

 
 
 
$
3

 
$
2

 
$
1

Other revenue
 
26

 
25

 
29

 
22

 
21

 
5

 
 
 
51

 
46

 
5

Total revenues
 
28

 
26

 
30

 
23

 
22

 
6

 
 
 
54

 
48

 
6

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Policy acquisition costs and other insurance expenses
 
2

 
—

 
1

 
—

 
(1
)
 
3

 
 
 
2

 
5

 
(3
)
Other operating expenses
 
2

 
3

 
3

 
4

 
3

 
(1
)
 
 
 
5

 
5

 
—

Total benefits and expenses
 
4

 
3

 
4

 
4

 
2

 
2

 
 
 
7

 
10

 
(3
)
 
 

 

 

 

 

 

 
 
 
 
 
 
 
 
Income before income taxes
 
$
24

 
$
23

 
$
26

 
$
19

 
$
20

 
$
4

 
 
 
$
47

 
$
38

 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
2

 
$
1

 
$
1

 
$
1

 
$
1

 
$
1

 
 
 
$
3

 
$
2

 
$
1

Other revenue
 
26

 
25

 
29

 
22

 
21

 
5

 
 
 
51

 
46

 
5

Total revenues
 
28

 
26

 
30

 
23

 
22

 
6

 
 
 
54

 
48

 
6

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

 
—

 
1

 
—

 
(1
)
 
3

 
 
 
2

 
5

 
(3
)
Other operating expenses
 
2

 
3

 
3

 
4

 
3

 
(1
)
 
 
 
5

 
5

 
—

Total benefits and expenses
 
4

 
3

 
4

 
4

 
2

 
2

 
 
 
7

 
10

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
24

 
$
23

 
$
26

 
$
19

 
$
20

 
$
4

 
 
 
$
47

 
$
38

 
$
9

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

 
$
260

 
$
276

 
$
271

 
$
264

 
$
(10
)
 
 
 
$
514

 
$
519

 
$
(5
)
Investment income, net of related expenses
 
50

 
49

 
52

 
53

 
51

 
(1
)
 
 
 
99

 
100

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

 
(12
)
 
3

 
1

 
3

 
3

 
 
 
(6
)
 
10

 
(16
)
Other revenue
 
1

 
(1
)
 
—

 
—

 
—

 
1

 
 
 
—

 
1

 
(1
)
Total revenues
 
311

 
296

 
331

 
325

 
318

 
(7
)
 
 
 
607

 
630

 
(23
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
216

 
220

 
235

 
216

 
206

 
10

 
 
 
436

 
406

 
30

Policy acquisition costs and other insurance expenses
 
42

 
45

 
56

 
57

 
57

 
(15
)
 
 
 
87

 
111

 
(24
)
Other operating expenses
 
9

 
8

 
12

 
9

 
9

 
—

 
 
 
17

 
16

 
1

Total benefits and expenses
 
267

 
273

 
303

 
282

 
272

 
(5
)
 
 
 
540

 
533

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
44

 
$
23

 
$
28

 
$
43

 
$
46

 
$
(2
)
 
 
 
$
67

 
$
97

 
$
(30
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
85.0
%
 
84.6
%
 
85.1
%
 
79.7
%
 
78.0
%
 
7.0
 %
 
 
 
84.8
%
 
78.2
%
 
6.6
 %
Policy acquisition costs and other insurance expenses
 
16.5
%
 
17.3
%
 
20.3
%
 
21.0
%
 
21.6
%
 
(5.1
)%
 
 
 
16.9
%
 
21.4
%
 
(4.5
)%
Other operating expenses
 
3.5
%
 
3.1
%
 
4.3
%
 
3.3
%
 
3.4
%
 
0.1
 %
 
 
 
3.3
%
 
3.1
%
 
0.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(9
)
 
$
(3
)
 
$
—

 
$
(3
)
 
$
(9
)
 
$
—

 
 
 
$
(12
)
 
$
(22
)
 
$
10

Income before income taxes
 
$
(2
)
 
$
1

 
$
—

 
$
—

 
$
(2
)
 
$
—

 
 
 
$
(1
)
 
$
(4
)
 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Creditor reinsurance net premiums
 
$
14

 
$
17

 
$
27

 
$
29

 
$
27

 
$
(13
)
 
 
 
$
31

 
$
55

 
$
(24
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
254

 
$
260

 
$
276

 
$
271

 
$
264

 
$
(10
)
 
 
 
$
514

 
$
519

 
$
(5
)
Investment income, net of related expenses
 
51

 
48

 
52

 
53

 
51

 
—

 
 
 
99

 
100

 
(1
)
Investment related gains, net
 
1

 
2

 
2

 
2

 
2

 
(1
)
 
 
 
3

 
3

 
—

Other revenue
 
1

 
(1
)
 
—

 
—

 
—

 
1

 
 
 
—

 
1

 
(1
)
Total revenues
 
307

 
309

 
330

 
326

 
317

 
(10
)
 
 
 
616

 
623

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
216

 
220

 
235

 
216

 
206

 
10

 
 
 
436

 
406

 
30

Policy acquisition costs and other insurance expenses
 
42

 
45

 
56

 
57

 
57

 
(15
)
 
 
 
87

 
111

 
(24
)
Other operating expenses
 
9

 
8

 
12

 
9

 
9

 
—

 
 
 
17

 
16

 
1

Total benefits and expenses
 
267

 
273

 
303

 
282

 
272

 
(5
)
 
 
 
540

 
533

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
40

 
$
36

 
$
27

 
$
44

 
$
45

 
$
(5
)
 
 
 
$
76

 
$
90

 
$
(14
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
85.0
%
 
84.6
%
 
85.1
%
 
79.7
%
 
78.0
%
 
7.0
 %
 
 
 
84.8
%
 
78.2
%
 
6.6
 %
Policy acquisition costs and other insurance expenses
 
16.5
%
 
17.3
%
 
20.3
%
 
21.0
%
 
21.6
%
 
(5.1
)%
 
 
 
16.9
%
 
21.4
%
 
(4.5
)%
Other operating expenses
 
3.5
%
 
3.1
%
 
4.3
%
 
3.3
%
 
3.4
%
 
0.1
 %
 
 
 
3.3
%
 
3.1
%
 
0.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(9
)
 
$
(3
)
 
$
—

 
$
(3
)
 
$
(9
)
 
$
—

 
 
 
$
(12
)
 
$
(22
)
 
$
10

Adjusted operating income before income taxes
 
$
(2
)
 
$
1

 
$
(1
)
 
$
—

 
$
(2
)
 
$
—

 
 
 
$
(1
)
 
$
(4
)
 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Creditor reinsurance net premiums
 
$
14

 
$
17

 
$
27

 
$
29

 
$
27

 
$
(13
)
 
 
 
$
31

 
$
55

 
$
(24
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
20

 
$
21

 
$
22

 
$
22

 
$
23

 
$
(3
)
 
 
 
$
41

 
$
45

 
$
(4
)
Investment income, net of related expenses
 
—

 
1

 
1

 
1

 
—

 
—

 
 
 
1

 
1

 
—

Other revenue
 
2

 
2

 
4

 
1

 
1

 
1

 
 
 
4

 
2

 
2

Total revenues
 
22

 
24

 
27

 
24

 
24

 
(2
)
 
 
 
46

 
48

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
17

 
20

 
19

 
20

 
20

 
(3
)
 
 
 
37

 
41

 
(4
)
Policy acquisition costs and other insurance expenses
 
1

 
—

 
1

 
—

 
1

 
—

 
 
 
1

 
1

 
—

Other operating expenses
 
—

 
1

 
—

 
1

 
(1
)
 
1

 
 
 
1

 
1

 
—

Total benefits and expenses
 
18

 
21

 
20

 
21

 
20

 
(2
)
 
 
 
39

 
43

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
4

 
$
3

 
$
7

 
$
3

 
$
4

 
$
—

 
 
 
$
7

 
$
5

 
$
2

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

 
$
—

 
$
—

 
$
(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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
20

 
$
21

 
$
22

 
$
22

 
$
23

 
$
(3
)
 
 
 
$
41

 
$
45

 
$
(4
)
Investment income, net of related expenses
 
—

 
1

 
1

 
1

 
—

 
—

 
 
 
1

 
1

 
—

Other revenue
 
2

 
2

 
4

 
1

 
1

 
1

 
 
 
4

 
2

 
2

Total revenues
 
22

 
24

 
27

 
24

 
24

 
(2
)
 
 
 
46

 
48

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
17

 
20

 
19

 
20

 
20

 
(3
)
 
 
 
37

 
41

 
(4
)
Policy acquisition costs and other insurance expenses
 
1

 
—

 
1

 
—

 
1

 
—

 
 
 
1

 
1

 
—

Other operating expenses
 
—

 
1

 
—

 
1

 
(1
)
 
1

 
 
 
1

 
1

 
—

Total benefits and expenses
 
18

 
21

 
20

 
21

 
20

 
(2
)
 
 
 
39

 
43

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
4

 
$
3

 
$
7

 
$
3

 
$
4

 
$
—

 
 
 
$
7

 
$
5

 
$
2

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

 
$
—

 
$
—

 
$
(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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
352

 
$
390

 
$
368

 
$
359

 
$
351

 
$
1

 
 
 
$
742

 
$
715

 
$
27

Investment income, net of related expenses
 
18

 
19

 
19

 
17

 
18

 
—

 
 
 
37

 
37

 
—

Other revenue
 
1

 
(2
)
 
1

 
2

 
1

 
—

 
 
 
(1
)
 
2

 
(3
)
Total revenues
 
371

 
407

 
388

 
378

 
370

 
1

 
 
 
778

 
754

 
24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
301

 
334

 
300

 
297

 
296

 
5

 
 
 
635

 
608

 
27

Policy acquisition costs and other insurance expenses
 
32

 
30

 
30

 
27

 
28

 
4

 
 
 
62

 
57

 
5

Other operating expenses
 
22

 
26

 
35

 
29

 
30

 
(8
)
 
 
 
48

 
57

 
(9
)
Total benefits and expenses
 
355

 
390

 
365

 
353

 
354

 
1

 
 
 
745

 
722

 
23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
16

 
$
17

 
$
23

 
$
25

 
$
16

 
$
—

 
 
 
$
33

 
$
32

 
$
1

 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 

 



 

 

 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
85.5
%
 
85.6
%
 
81.5
%
 
82.7
%
 
84.3
%
 
1.2
 %
 
 
 
85.6
%
 
85.0
%
 
0.6
 %
Policy acquisition costs and other insurance expenses
 
9.1
%
 
7.7
%
 
8.2
%
 
7.4
%
 
7.9
%
 
1.2
 %
 
 
 
8.4
%
 
8.1
%
 
0.3
 %
Other operating expenses
 
6.3
%
 
6.7
%
 
9.5
%
 
8.1
%
 
8.6
%
 
(2.3
)%
 
 
 
6.5
%
 
7.9
%
 
(1.4
)%
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(20
)
 
$
(13
)
 
$
(4
)
 
$
(17
)
 
$
(23
)
 
$
3

 
 
 
$
(33
)
 
$
(56
)
 
$
23

Income before income taxes
 
$
(1
)
 
$
—

 
$
(1
)
 
$
(1
)
 
$
(1
)
 
$
—

 
 
 
$
(1
)
 
$
(3
)
 
$
2

 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
40

 
$
42

 
$
42

 
$
49

 
$
43

 
$
(3
)
 
 
 
$
82

 
$
88

 
$
(6
)
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
352

 
$
390

 
$
368

 
$
359

 
$
351

 
$
1

 
 
 
$
742

 
$
715

 
$
27

Investment income, net of related expenses
 
18

 
19

 
19

 
17

 
18

 
—

 
 
 
37

 
37

 
—

Other revenue
 
1

 
(2
)
 
1

 
2

 
1

 
—

 
 
 
(1
)
 
2

 
(3
)
Total revenues
 
371

 
407

 
388

 
378

 
370

 
1

 
 
 
778

 
754

 
24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
301

 
334

 
300

 
297

 
296

 
5

 
 
 
635

 
608

 
27

Policy acquisition costs and other insurance expenses
 
32

 
30

 
30

 
27

 
28

 
4

 
 
 
62

 
57

 
5

Other operating expenses
 
22

 
26

 
35

 
29

 
30

 
(8
)
 
 
 
48

 
57

 
(9
)
Total benefits and expenses
 
355

 
390

 
365

 
353

 
354

 
1

 
 
 
745

 
722

 
23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
16

 
$
17

 
$
23

 
$
25

 
$
16

 
$
—

 
 
 
$
33

 
$
32

 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
85.5
%
 
85.6
%
 
81.5
%
 
82.7
%
 
84.3
%
 
1.2
 %
 
 
 
85.6
%
 
85.0
%
 
0.6
 %
Policy acquisition costs and other insurance expenses
 
9.1
%
 
7.7
%
 
8.2
%
 
7.4
%
 
7.9
%
 
1.2
 %
 
 
 
8.4
%
 
8.1
%
 
0.3
 %
Other operating expenses
 
6.3
%
 
6.7
%
 
9.5
%
 
8.1
%
 
8.6
%
 
(2.3
)%
 
 
 
6.5
%
 
7.9
%
 
(1.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(20
)
 
$
(13
)
 
$
(4
)
 
$
(17
)
 
$
(23
)
 
$
3

 
 
 
$
(33
)
 
$
(56
)
 
$
23

Adjusted operating income before income taxes
 
$
(2
)
 
$
1

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
40

 
$
42

 
$
42

 
$
49

 
$
43

 
$
(3
)
 
 
 
$
82

 
$
88

 
$
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
57

 
$
53

 
$
54

 
$
55

 
$
57

 
$
—

 
 
 
$
110

 
$
109

 
$
1

Investment income, net of related expenses
 
61

 
28

 
45

 
55

 
47

 
14

 
 
 
89

 
95

 
(6
)
Investment related gains (losses), net
 
16

 
(6
)
 
1

 
2

 
3

 
13

 
 
 
10

 
6

 
4

Other revenue
 
2

 
3

 
10

 
5

 
7

 
(5
)
 
 
 
5

 
13

 
(8
)
Total revenues
 
136

 
78

 
110

 
117

 
114

 
22

 
 
 
214

 
223

 
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Claims and other policy benefits
 
13

 
53

 
19

 
34

 
47

 
(34
)
 
 
 
66

 
96

 
(30
)
Interest credited
 
16

 
(17
)
 
(1
)
 
12

 
3

 
13

 
 
 
(1
)
 
15

 
(16
)
Policy acquisition costs and other insurance expenses
 
1

 
1

 
10

 
—

 
1

 
—

 
 
 
2

 
2

 
—

Other operating expenses
 
8

 
11

 
10

 
10

 
11

 
(3
)
 
 
 
19

 
20

 
(1
)
Total benefits and expenses
 
38

 
48


38

 
56

 
62

 
(24
)
 
 
 
86

 
133

 
(47
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
98

 
$
30

 
$
72

 
$
61

 
$
52

 
$
46

 
 
 
$
128

 
$
90

 
$
38

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Net premiums
 
$
(2
)
 
$
(1
)
 
$
—

 
$
(3
)
 
$
(3
)
 
$
1

 
 
 
$
(3
)
 
$
(7
)
 
$
4

Income before income taxes
 
$
(3
)
 
$
—

 
$
—

 
$
(3
)
 
$
(3
)
 
$
—

 
 
 
$
(3
)
 
$
(6
)
 
$
3

 
 

 

 

 

 

 

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

                                        
 
rgaqfslogoaa01a13.jpg
Page 20

    

Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Financial Solutions (1)
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
 
Year-to-Date
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
57

 
$
53

 
$
54

 
$
55

 
$
57

 
$
—

 
 
 
$
110

 
$
109

 
$
1

Investment income, net of related expenses
 
43

 
44

 
46

 
43

 
44

 
(1
)
 
 
 
87

 
80

 
7

Investment related gains (losses), net
 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
—

 
—

 
—

Other revenue
 
2

 
3

 
12

 
5

 
7

 
(5
)
 
 
 
5

 
13

 
(8
)
Total revenues
 
102

 
100

 
112

 
103

 
108

 
(6
)
 
 
 
202

 
202

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
13

 
53

 
19

 
34

 
47

 
(34
)
 
 
 
66

 
96

 
(30
)
Interest credited
 
1

 
(1
)
 
—

 
—

 
—

 
1

 
 
 
—

 
—

 
—

Policy acquisition costs and other insurance expenses
 
1

 
1

 
10

 
—

 
1

 
—

 
 
 
2

 
2

 
—

Other operating expenses
 
8

 
11

 
10

 
10

 
11

 
(3
)
 
 
 
19

 
20

 
(1
)
Total benefits and expenses
 
23

 
64

 
39

 
44

 
59

 
(36
)
 
 
 
87

 
118

 
(31
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
79

 
$
36

 
$
73

 
$
59

 
$
49

 
$
30

 
 
 
$
115

 
$
84

 
$
31

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

 
$
(3
)
 
$
(3
)
 
$
1

 
 
 
$
(3
)
 
$
(7
)
 
$
4

Adjusted operating income before income taxes
 
$
(2
)
 
$
(1
)
 
$
—

 
$
(3
)
 
$
(3
)
 
$
1

 
 
 
$
(3
)
 
$
(5
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
607

 
$
636

 
$
659

 
$
656

 
$
606

 
$
1

 
 
 
$
1,243

 
$
1,253

 
$
(10
)
Investment income, net of related expenses
 
27

 
27

 
27

 
27

 
24

 
3

 
 
 
54

 
50

 
4

Other revenue
 
2

 
4

 
3

 
2

 
4

 
(2
)
 
 
 
6

 
4

 
2

Total revenues
 
636

 
667

 
689

 
685

 
634

 
2

 
 
 
1,303

 
1,307

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
514

 
555

 
618

 
585

 
568

 
(54
)
 
 
 
1,069

 
1,114

 
(45
)
Policy acquisition costs and other insurance expenses
 
34

 
49

 
13

 
40

 
(12
)
 
46

 
 
 
83

 
39

 
44

Other operating expenses
 
41

 
39

 
46

 
38

 
44

 
(3
)
 
 
 
80

 
83

 
(3
)
Total benefits and expenses
 
589

 
643

 
677

 
663

 
600

 
(11
)
 
 
 
1,232

 
1,236

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
47

 
$
24

 
$
12

 
$
22

 
$
34

 
$
13

 
 
 
$
71

 
$
71

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
84.7
%
 
87.3
%
 
93.8
%
 
89.0
%
 
93.7
 %
 
(9.0
)%
 
 
 
86.0
%
 
88.9
%
 
(2.9
)%
Policy acquisition costs and other insurance expenses
 
5.6
%
 
7.7
%
 
2.0
%
 
6.1
%
 
(1.9
)%
 
7.5
 %
 
 
 
6.7
%
 
3.1
%
 
3.6
 %
Other operating expenses
 
6.8
%
 
6.1
%
 
7.0
%
 
6.1
%
 
7.0
 %
 
(0.2
)%
 
 
 
6.4
%
 
6.5
%
 
(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(12
)
 
$
(16
)
 
$
(3
)
 
$
(12
)
 
$
(23
)
 
$
11

 
 
 
$
(28
)
 
$
(50
)
 
$
22

Income before income taxes
 
$
2

 
$
(1
)
 
$
1

 
$
3

 
$
1

 
$
1

 
 
 
$
1

 
$
(2
)
 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
246

 
$
256

 
$
266

 
$
294

 
$
243

 
$
3

 
 
 
$
502

 
$
495

 
$
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
607

 
$
636

 
$
659

 
$
656

 
$
606

 
$
1

 
 
 
$
1,243

 
$
1,253

 
$
(10
)
Investment income, net of related expenses
 
27

 
27

 
27

 
27

 
24

 
3

 
 
 
54

 
50

 
4

Other revenue
 
2

 
4

 
3

 
2

 
4

 
(2
)
 
 
 
6

 
4

 
2

Total revenues
 
636

 
667

 
689

 
685

 
634

 
2

 
 
 
1,303

 
1,307

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
514

 
555

 
618

 
585

 
568

 
(54
)
 
 
 
1,069

 
1,114

 
(45
)
Policy acquisition costs and other insurance expenses
 
34

 
49

 
13

 
40

 
(12
)
 
46

 
 
 
83

 
39

 
44

Other operating expenses
 
41

 
39

 
46

 
38

 
44

 
(3
)
 
 
 
80

 
83

 
(3
)
Total benefits and expenses
 
589

 
643

 
677

 
663

 
600

 
(11
)
 
 
 
1,232

 
1,236

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
47

 
$
24

 
$
12

 
$
22

 
$
34

 
$
13

 
 
 
$
71

 
$
71

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and expense ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
84.7
%
 
87.3
%
 
93.8
%
 
89.0
%
 
93.7
 %
 
(9.0
)%
 
 
 
86.0
%
 
88.9
%
 
(2.9
)%
Policy acquisition costs and other insurance expenses
 
5.6
%
 
7.7
%
 
2.0
%
 
6.1
%
 
(1.9
)%
 
7.5
 %
 
 
 
6.7
%
 
3.1
%
 
3.6
 %
Other operating expenses
 
6.8
%
 
6.1
%
 
7.0
%
 
6.1
%
 
7.0
 %
 
(0.2
)%
 
 
 
6.4
%
 
6.5
%
 
(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(12
)
 
$
(16
)
 
$
(3
)
 
$
(12
)
 
$
(23
)
 
$
11

 
 
 
$
(28
)
 
$
(50
)
 
$
22

Adjusted operating income before income taxes
 
$
2

 
$
(1
)
 
$
1

 
$
3

 
$
1

 
$
1

 
 
 
$
1

 
$
(2
)
 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
246

 
$
256

 
$
266

 
$
294

 
$
243

 
$
3

 
 
 
$
502

 
$
495

 
$
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
31

 
$
74

 
$
38

 
$
30

 
$
44

 
$
(13
)
 
 
 
$
105

 
$
78

 
$
27

Investment income, net of related expenses
 
21

 
17

 
15

 
10

 
11

 
10

 
 
 
38

 
21

 
17

Investment related gains (losses), net
 
15

 
(33
)
 
7

 
(1
)
 
(1
)
 
16

 
 
 
(18
)
 
3

 
(21
)
Other revenue
 
8

 
10

 
8

 
7

 
5

 
3

 
 
 
18

 
12

 
6

Total revenues
 
75

 
68

 
68

 
46

 
59

 
16

 
 
 
143

 
114

 
29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
32

 
62

 
34

 
28

 
37

 
(5
)
 
 
 
94

 
69

 
25

Interest credited
 
11

 
13

 
11

 
7

 
6

 
5

 
 
 
24

 
13

 
11

Policy acquisition costs and other insurance expenses
 
5

 
14

 
5

 
5

 
10

 
(5
)
 
 
 
19

 
15

 
4

Other operating expenses
 
1

 
4

 
5

 
4

 
4

 
(3
)
 
 
 
5

 
9

 
(4
)
Total benefits and expenses
 
49

 
93

 
55

 
44

 
57

 
(8
)
 
 
 
142

 
106

 
36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
26

 
$
(25
)
 
$
13

 
$
2

 
$
2

 
$
24

 
 
 
$
1

 
$
8

 
$
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
1

 
$
—

 
$
—

 
$
1

 
$
—

 
$
1

 
 
 
$
1

 
$
(1
)
 
$
2

Income (loss) before income taxes
 
$
(1
)
 
$
2

 
$
—

 
$
1

 
$
—

 
$
(1
)
 
 
 
$
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
31

 
$
74

 
$
38

 
$
30

 
$
44

 
$
(13
)
 
 
 
$
105

 
$
78

 
$
27

Investment income, net of related expenses
 
21

 
17

 
15

 
10

 
11

 
10

 
 
 
38

 
21

 
17

Investment related gains, net
 
1

 
2

 
2

 
2

 
1

 
—

 
 
 
3

 
2

 
1

Other revenue
 
8

 
10

 
8

 
7

 
5

 
3

 
 
 
18

 
12

 
6

Total revenues
 
61

 
103

 
63

 
49

 
61

 
—

 
 
 
164

 
113

 
51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
32

 
62

 
34

 
28

 
37

 
(5
)
 
 
 
94

 
69

 
25

Interest credited
 
11

 
13

 
11

 
7

 
6

 
5

 
 
 
24

 
13

 
11

Policy acquisition costs and other insurance expenses
 
5

 
14

 
5

 
5

 
10

 
(5
)
 
 
 
19

 
15

 
4

Other operating expenses
 
1

 
4

 
5

 
4

 
4

 
(3
)
 
 
 
5

 
9

 
(4
)
Total benefits and expenses
 
49

 
93

 
55

 
44

 
57

 
(8
)
 
 
 
142

 
106

 
36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income before income taxes
 
$
12

 
$
10

 
$
8

 
$
5

 
$
4

 
$
8

 
 
 
$
22

 
$
7

 
$
15

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

 
$
—

 
$
—

 
$
1

 
$
—

 
$
1

 
 
 
$
1

 
$
(1
)
 
$
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
48

 
$
58

 
$
45

 
$
51

 
$
55

 
$
(7
)
 
 
 
$
106

 
$
98

 
$
8

Investment related gains (losses), net
 
22

 
(67
)
 
10

 
(1
)
 
(6
)
 
28

 
 
 
(45
)
 
(7
)
 
(38
)
Other revenue
 
20

 
1

 
12

 
10

 
13

 
7

 
 
 
21

 
39

 
(18
)
Total revenues
 
90

 
(8
)
 
67

 
60

 
62

 
28

 
 
 
82

 
130

 
(48
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest credited
 
3

 
2

 
7

 
4

 
6

 
(3
)
 
 
 
5

 
11

 
(6
)
Policy acquisition costs and other insurance income
 
(29
)
 
(28
)
 
(29
)
 
(29
)
 
(29
)
 
—

 
 
 
(57
)
 
(58
)
 
1

Other operating expenses
 
69

 
62

 
75

 
73

 
75

 
(6
)
 
 
 
131

 
146

 
(15
)
Interest expense
 
42

 
41

 
44

 
46

 
43

 
(1
)
 
 
 
83

 
83

 
—

Collateral finance and securitization expense
 
4

 
6

 
6

 
7

 
8

 
(4
)
 
 
 
10

 
16

 
(6
)
Total benefits and expenses
 
89

 
83

 
103

 
101

 
103

 
(14
)
 
 
 
172

 
198

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

 
$
(91
)
 
$
(36
)
 
$
(41
)
 
$
(41
)
 
$
42

 
 
 
$
(90
)
 
$
(68
)
 
$
(22
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(1
)
 
$
2

 
$
—

 
$
—

 
$
—

 
$
(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 26

    

Reinsurance Group of America, Incorporated
Corporate and Other
Adjusted Operating Income Statements
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
 
Year-to-Date
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
48

 
$
58

 
$
45

 
$
51

 
$
55

 
$
(7
)
 
 
 
$
106

 
$
98

 
$
8

Investment related gains, net
 
2

 
1

 
2

 
1

 
—

 
2

 
 
 
3

 
3

 
—

Other revenue
 
24

 
1

 
12

 
10

 
13

 
11

 
 
 
25

 
39

 
(14
)
Total revenues
 
74

 
60

 
59

 
62

 
68

 
6

 
 
 
134

 
140

 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest credited
 
3

 
2

 
7

 
4

 
6

 
(3
)
 
 
 
5

 
11

 
(6
)
Policy acquisition costs and other insurance income
 
(29
)
 
(28
)
 
(29
)
 
(29
)
 
(29
)
 
—

 
 
 
(57
)
 
(58
)
 
1

Other operating expenses
 
69

 
62

 
75

 
73

 
75

 
(6
)
 
 
 
131

 
146

 
(15
)
Interest expense
 
38

 
37

 
40

 
37

 
41

 
(3
)
 
 
 
75

 
78

 
(3
)
Collateral finance and securitization expense
 
4

 
6

 
6

 
7

 
8

 
(4
)
 
 
 
10

 
16

 
(6
)
Total benefits and expenses
 
85

 
79

 
99

 
92

 
101

 
(16
)
 
 
 
164

 
193

 
(29
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating loss before income taxes
 
$
(11
)
 
$
(19
)
 
$
(40
)
 
$
(30
)
 
$
(33
)
 
$
22

 
 
 
$
(30
)
 
$
(53
)
 
$
23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
U.S. and Latin America:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
$
(158
)
 
$
(62
)
 
$
85

 
$
113

 
$
55

 
$
(213
)
 
 
 
$
(220
)
 
$
67

 
$
(287
)
Financial Solutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Intensive
 
93

 
(38
)
 
78

 
100

 
72

 
21

 
 
 
55

 
137

 
(82
)
Capital Solutions
 
24

 
23

 
26

 
19

 
20

 
4

 
 
 
47

 
38

 
9

Total U.S. and Latin America
 
(41
)
 
(77
)
 
189

 
232

 
147

 
(188
)
 
 
 
(118
)
 
242

 
(360
)
Canada:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
44

 
23

 
28

 
43

 
46

 
(2
)
 
 
 
67

 
97

 
(30
)
Financial Solutions
 
4

 
3

 
7

 
3

 
4

 
—

 
 
 
7

 
5

 
2

Total Canada
 
48

 
26

 
35

 
46

 
50

 
(2
)
 
 
 
74

 
102

 
(28
)
Europe, Middle East and Africa:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
16

 
17

 
23

 
25

 
16

 
—

 
 
 
33

 
32

 
1

Financial Solutions
 
98

 
30

 
72

 
61

 
52

 
46

 
 
 
128

 
90

 
38

Total Europe, Middle East and Africa
 
114

 
47

 
95

 
86

 
68

 
46

 
 
 
161

 
122

 
39

Asia Pacific:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
47

 
24

 
12

 
22

 
34

 
13

 
 
 
71

 
71

 
—

Financial Solutions
 
26

 
(25
)
 
13

 
2

 
2

 
24

 
 
 
1

 
8

 
(7
)
Total Asia Pacific
 
73

 
(1
)
 
25

 
24

 
36

 
37

 
 
 
72

 
79

 
(7
)
Corporate and Other
 
1

 
(91
)
 
(36
)
 
(41
)
 
(41
)
 
42

 
 
 
(90
)
 
(68
)
 
(22
)
Consolidated income (loss) before income taxes
 
$
195

 
$
(96
)
 
$
308

 
$
347

 
$
260

 
$
(65
)
 
 
 
$
99

 
$
477

 
$
(378
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
 
 
 
2020
 
2019
 
Change
U.S. and Latin America:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
$
(165
)
 
$
(55
)
 
$
83

 
$
123

 
$
59

 
$
(224
)
 
 
 
$
(220
)
 
$
77

 
$
(297
)
Financial Solutions:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Asset Intensive
 
63

 
43

 
65

 
65

 
69

 
(6
)
 
 
 
106

 
129

 
(23
)
Capital Solutions
 
24

 
23

 
26

 
19

 
20

 
4

 
 
 
47

 
38

 
9

Total U.S. and Latin America
 
(78
)
 
11

 
174

 
207

 
148

 
(226
)
 
 
 
(67
)
 
244

 
(311
)
Canada:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
40

 
36

 
27

 
44

 
45

 
(5
)
 
 
 
76

 
90

 
(14
)
Financial Solutions
 
4

 
3

 
7

 
3

 
4

 
—

 
 
 
7

 
5

 
2

Total Canada
 
44

 
39

 
34

 
47

 
49

 
(5
)
 
 
 
83

 
95

 
(12
)
Europe, Middle East and Africa:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
16

 
17

 
23

 
25

 
16

 
—

 
 
 
33

 
32

 
1

Financial Solutions
 
79

 
36

 
73

 
59

 
49

 
30

 
 
 
115

 
84

 
31

Total Europe, Middle East and Africa
 
95

 
53

 
96

 
84

 
65

 
30

 
 
 
148

 
116

 
32

Asia Pacific:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
47

 
24

 
12

 
22

 
34

 
13

 
 
 
71

 
71

 
—

Financial Solutions
 
12

 
10

 
8

 
5

 
4

 
8

 
 
 
22

 
7

 
15

Total Asia Pacific
 
59

 
34

 
20

 
27

 
38

 
21

 
 
 
93

 
78

 
15

Corporate and Other
 
(11
)
 
(19
)
 
(40
)
 
(30
)
 
(33
)
 
22

 
 
 
(30
)
 
(53
)
 
23

Consolidated adjusted operating income before income taxes
 
$
109

 
$
118

 
$
284

 
$
335

 
$
267

 
$
(158
)
 
 
 
$
227

 
$
480

 
$
(253
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
 
2020
 
2020
 
2019
 
2019
 
2019
Fixed maturity securities, available-for-sale (1)
 
$
52,346

 
$
48,555

 
$
51,121

 
$
49,481

 
$
46,189

Equity securities
 
130

 
112

 
320

 
135

 
147

Mortgage loans on real estate
 
5,974

 
6,014

 
5,706

 
5,647

 
5,405

Policy loans
 
1,310

 
1,314

 
1,319

 
1,290

 
1,320

Funds withheld at interest
 
5,250

 
5,258

 
5,662

 
5,614

 
5,696

Short-term investments
 
84

 
117

 
64

 
108

 
159

Other invested assets
 
2,547

 
2,542

 
2,363

 
2,215

 
2,122

Cash and cash equivalents
 
4,313

 
2,820

 
1,449

 
2,636

 
2,288

Total cash and invested assets
 
$
71,954

 
$
66,732

 
$
68,004

 
$
67,126

 
$
63,326

 
 
 
 
 
 
 
 
 
 
 
(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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
 
 
 
2020
 
2019
 
Change
Average invested assets at amortized cost (1)
 
$
30,420

 
$
29,728

 
$
29,513

 
$
29,043

 
$
28,487

 
$
1,933

 
 
 
$
29,923

 
$
28,138

 
$
1,785

Net investment income (1)
 
$
305

 
$
299

 
$
330

 
$
344

 
$
307

 
$
(2
)
 
 
 
$
604

 
$
617

 
$
(13
)
Annualized investment yield (ratio of net investment income to average invested assets at amortized cost) (1)
 
4.07
%
 
4.08
%
 
4.55
%
 
4.83
%
 
4.38
%
 
(31) bps

 
 
 
4.07
%
 
4.43
%
 
(36) 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2020
 
 
Amortized
Cost
 
Allowance for Credit Losses
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated Fair
Value
 
% of
Total
 
Impairments in AOCI
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
29,785

 
$
32

 
$
3,071

 
$
254

 
$
32,570

 
62.3
%
 
$
—

   Canadian government
 
2,917

 
—

 
1,941

 
—

 
4,858

 
9.3
%
 
—

   RMBS
 
1,962

 
—

 
104

 
1

 
2,065

 
3.9
%
 
—

   ABS
 
2,798

 
—

 
20

 
87

 
2,731

 
5.2
%
 
—

   CMBS
 
1,850

 
—

 
42

 
41

 
1,851

 
3.5
%
 
—

   U.S. government
 
1,395

 
—

 
244

 
—

 
1,639

 
3.1
%
 
—

   State and political subdivisions
 
1,056

 
—

 
135

 
7

 
1,184

 
2.3
%
 
—

   Other foreign government
 
5,140

 
1

 
367

 
58

 
5,448

 
10.4
%
 
—

Total fixed maturity securities
 
$
46,903

 
$
33

 
$
5,924

 
$
448

 
$
52,346

 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 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
 
$
5,457

 
$
5,907

 
18.1
%
 
A-
 
$
5,443

 
$
5,804

 
18.6
%
 
A-
Brokerage/asset managers/exchanges
 
781

 
851

 
2.6
%
 
A-
 
756

 
811

 
2.6
%
 
A-
Finance companies
 
288

 
281

 
0.9
%
 
BBB
 
241

 
255

 
0.8
%
 
BBB
Insurance
 
3,420

 
3,739

 
11.5
%
 
A-
 
3,178

 
3,429

 
10.9
%
 
A-
REITs
 
660

 
695

 
2.1
%
 
BBB+
 
716

 
760

 
2.4
%
 
A-
Other finance
 
583

 
654

 
2.0
%
 
A-
 
562

 
594

 
1.9
%
 
A-
      Total financial institutions
 
$
11,189

 
$
12,127

 
37.2
%
 
 
 
$
10,896

 
$
11,653

 
37.2
%
 
 
Industrials
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
1,869

 
$
2,026

 
6.2
%
 
BBB
 
$
1,790

 
$
1,925

 
6.1
%
 
BBB
Capital goods
 
1,382

 
1,442

 
4.4
%
 
BBB
 
1,292

 
1,353

 
4.3
%
 
BBB
Communications
 
2,158

 
2,472

 
7.6
%
 
BBB+
 
2,126

 
2,346

 
7.5
%
 
BBB+
Consumer cyclical
 
1,499

 
1,609

 
4.9
%
 
BBB+
 
1,477

 
1,571

 
5.0
%
 
BBB+
Consumer noncyclical
 
2,951

 
3,340

 
10.4
%
 
BBB+
 
2,898

 
3,147

 
10.0
%
 
BBB+
Energy
 
1,787

 
1,902

 
5.8
%
 
BBB
 
1,939

 
2,099

 
6.7
%
 
BBB+
Technology
 
1,054

 
1,158

 
3.6
%
 
A-
 
974

 
1,027

 
3.3
%
 
A-
Transportation
 
1,829

 
1,905

 
5.8
%
 
BBB+
 
1,791

 
1,919

 
6.1
%
 
A-
Other industrial
 
433

 
462

 
1.4
%
 
BBB+
 
405

 
416

 
1.3
%
 
BBB+
       Total industrials
 
$
14,962

 
$
16,316

 
50.1
%
 
 
 
$
14,692

 
$
15,803

 
50.3
%
 
 
Utilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
$
2,838

 
$
3,209

 
9.9
%
 
A-
 
$
2,810

 
$
3,046

 
9.7
%
 
A-
Natural gas
 
426

 
488

 
1.5
%
 
A-
 
475

 
516

 
1.6
%
 
A-
Other utility
 
370

 
430

 
1.3
%
 
BBB+
 
332

 
375

 
1.2
%
 
A-
       Total utilities
 
$
3,634

 
$
4,127

 
12.7
%
 
 
 
$
3,617

 
$
3,937

 
12.5
%
 
 
     Total
 
$
29,785

 
$
32,570

 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2020
 
March 31, 2020
 
December 31, 2019
 
September 30, 2019
 
June 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
 
$
29,018

 
$
33,246

 
63.5
%
 
$
29,310

 
$
31,660

 
65.2
%
 
$
30,100

 
$
33,284

 
65.2
%
 
$
28,620

 
$
32,128

 
64.9
%
 
$
27,571

 
$
30,513

 
66.1
%
2
 
BBB
 
15,222

 
16,555

 
31.6
%
 
14,810

 
14,665

 
30.2
%
 
14,366

 
15,514

 
30.3
%
 
14,130

 
15,213

 
30.7
%
 
12,942

 
13,705

 
29.7
%
3
 
BB
 
1,987

 
1,963

 
3.8
%
 
1,877

 
1,727

 
3.6
%
 
1,706

 
1,748

 
3.4
%
 
1,586

 
1,611

 
3.3
%
 
1,389

 
1,408

 
3.0
%
4
 
B
 
560

 
515

 
1.0
%
 
509

 
452

 
0.9
%
 
514

 
518

 
1.0
%
 
443

 
444

 
0.9
%
 
490

 
495

 
1.1
%
5
 
CCC
 
91

 
46

 
0.1
%
 
101

 
41

 
0.1
%
 
36

 
23

 
—
%
 
30

 
29

 
0.1
%
 
15

 
16

 
—
%
6
 
In or near default
 
25

 
21

 
—
%
 
13

 
10

 
—
%
 
31

 
34

 
0.1
%
 
51

 
56

 
0.1
%
 
51

 
52

 
0.1
%
 
 
Total
 
$
46,903

 
$
52,346


100.0
%

$
46,620


$
48,555


100.0
%

$
46,753


$
51,121


100.0
%

$
44,860


$
49,481


100.0
%

$
42,458


$
46,189


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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2020
 
March 31, 2020
 
December 31, 2019
 
September 30, 2019
 
June 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
 
$
708

 
$
776

 
11.8
%
 
$
726

 
$
796

 
11.8
%
 
$
742

 
$
777

 
10.6
%
 
$
787

 
$
834

 
11.9
%
 
$
893

 
$
929

 
14.2
%
Non-agency
 
1,254

 
1,289

 
19.4
%
 
1,515

 
1,495

 
22.1
%
 
1,597

 
1,621

 
22.3
%
 
1,574

 
1,606

 
22.8
%
 
1,322

 
1,348

 
20.7
%
Total RMBS
 
1,962

 
2,065

 
31.2
%
 
2,241

 
2,291

 
33.9
%
 
2,339

 
2,398

 
32.9
%
 
2,361

 
2,440

 
34.7
%
 
2,215

 
2,277

 
34.9
%
ABS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateralized loan obligations ("CLOs")
 
1,612

 
1,558

 
23.4
%
 
1,725

 
1,558

 
23.0
%
 
1,750

 
1,743

 
24.0
%
 
1,590

 
1,581

 
22.4
%
 
1,443

 
1,434

 
22.0
%
ABS, excluding CLOs
 
1,186

 
1,173

 
17.6
%
 
1,215

 
1,109

 
16.4
%
 
1,223

 
1,235

 
17.0
%
 
1,219

 
1,242

 
17.6
%
 
1,039

 
1,060

 
16.3
%
Total ABS
 
2,798

 
2,731

 
41.0
%
 
2,940

 
2,667

 
39.4
%
 
2,973

 
2,978

 
41.0
%
 
2,809

 
2,823

 
40.0
%
 
2,482

 
2,494

 
38.3
%
CMBS
 
1,850

 
1,851

 
27.8
%
 
1,841

 
1,809

 
26.7
%
 
1,841

 
1,899

 
26.1
%
 
1,698

 
1,782

 
25.3
%
 
1,687

 
1,747

 
26.8
%
Total
 
$
6,610

 
$
6,647

 
100.0
%
 
$
7,022

 
$
6,767

 
100.0
%
 
$
7,153

 
$
7,275

 
100.0
%
 
$
6,868

 
$
7,045

 
100.0
%
 
$
6,384

 
$
6,518

 
100.0
%
 

                                        
 
rgaqfslogoaa01a13.jpg
Page 33

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
Gross Unrealized Losses Aging
Fixed Maturity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2020
 
March 31, 2020
 
December 31, 2019
 
September 30, 2019
 
June 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%
 
$
348

 
77.7
%
 
$
1,052

 
72.0
%
 
$
76

 
69.1
%
 
$
76

 
74.5
%
 
$
73

 
76.1
%
20% or more for less than six months
 
91

 
20.3
%
 
409

 
28.0
%
 
20

 
18.2
%
 
10

 
9.8
%
 
22

 
22.9
%
20% or more for six months or greater
 
9

 
2.0
%
 
—

 
—
%
 
14

 
12.7
%
 
16

 
15.7
%
 
1

 
1.0
%
Total
 
$
448


100.0
%
 
$
1,461


100.0
%
 
$
110


100.0
%
 
$
102


100.0
%
 
$
96

 
100.0
%

 

 



                                        
 
rgaqfslogoaa01a13.jpg
Page 34

    

Reinsurance Group of America, Incorporated
Investments
(USD millions)
 
Fixed Maturity Securities Below Amortized Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 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
 
$
2,359

 
$
125

 
$
67

 
$
9

 
$
2,426

 
$
134

   RMBS
 
—

 
—

 
28

 
1

 
28

 
1

   ABS
 
1,425

 
53

 
558

 
29

 
1,983

 
82

   CMBS
 
690

 
37

 
13

 
1

 
703

 
38

   U.S. government
 
—

 
—

 
—

 
—

 
—

 
—

   State and political subdivisions
 
59

 
5

 
12

 
2

 
71

 
7

   Other foreign government
 
1,073

 
47

 
—

 
—

 
1,073

 
47

Total investment grade securities
 
$
5,606

 
$
267

 
$
678

 
$
42

 
$
6,284

 
$
309

 
 
 
 
 
 
 
 
 
 
 
 
 
Below investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate
 
$
780

 
$
114

 
$
53

 
$
6

 
$
833

 
$
120

   ABS
 
20

 
5

 
—

 
—

 
20

 
5

   CMBS
 
23

 
3

 
—

 
—

 
23

 
3

   Other foreign government
 
103

 
8

 
12

 
3

 
115

 
11

Total below investment grade securities
 
$
926


$
130


$
65


$
9


$
991


$
139

Total fixed maturity securities
 
$
6,532

 
$
397

 
$
743

 
$
51

 
$
7,275

 
$
448

 
 
 
 
 
 
 
 
 
 
 
 
 
 


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

 
$
(34
)
 
$
(13
)
 
$
(9
)
 
$
—

 
$
—

 
 
 
$
(34
)
 
$
(9
)
 
$
(25
)
Gain on investment activity
 
46

 
27

 
35

 
68

 
20

 
26

 
 
 
73

 
48

 
25

Loss on investment activity
 
(46
)
 
(8
)
 
(11
)
 
(13
)
 
(7
)
 
(39
)
 
 
 
(54
)
 
(26
)
 
(28
)
Net gains (losses) on fixed maturity securities available-for-sale
 
—

 
(15
)
 
11

 
46

 
13

 
(13
)
 
 
 
(15
)
 
13

 
(28
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gains (losses) on equity securities
 
8

 
(23
)
 
5

 
4

 
3

 
5

 
 
 
(15
)
 
7

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

 
(4
)
 
(6
)
 
(16
)
 
 
 
(35
)
 
(8
)
 
(27
)
Other non-derivative gain (loss), net
 
8

 
9

 
(1
)
 
4

 
5

 
3

 
 
 
17

 
10

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Free-standing derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps - non-hedged
 
3

 
106

 
(32
)
 
39

 
34

 
(31
)
 
 
 
109

 
58

 
51

Financial futures
 
(48
)
 
44

 
(16
)
 
—

 
(8
)
 
(40
)
 
 
 
(4
)
 
(30
)
 
26

Foreign currency swaps - non-hedged
 
3

 
(13
)
 
4

 
1

 
(6
)
 
9

 
 
 
(10
)
 
(5
)
 
(5
)
Foreign currency swaps - hedged
 
2

 
(8
)
 
2

 
(2
)
 
(3
)
 
5

 
 
 
(6
)
 
(4
)
 
(2
)
Foreign currency forwards - non-hedged
 
1

 
(3
)
 
1

 
—

 
—

 
1

 
 
 
(2
)
 
—

 
(2
)
CPI swaps
 
26

 
(40
)
 
6

 
(8
)
 
(7
)
 
33

 
 
 
(14
)
 
(16
)
 
2

Credit default swaps
 
17

 
(24
)
 
8

 
2

 
5

 
12

 
 
 
(7
)
 
20

 
(27
)
Equity options
 
(25
)
 
53

 
(12
)
 
—

 
(5
)
 
(20
)
 
 
 
28

 
(28
)
 
56

Total free-standing derivatives
 
(21
)
 
115

 
(39
)
 
32

 
10

 
(31
)
 
 
 
94

 
(5
)
 
99

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Modified coinsurance and funds withheld treaties
 
1

 
(230
)
 
(1
)
 
9

 
5

 
(4
)
 
 
 
(229
)
 
3

 
(232
)
   GMXB
 
107

 
(128
)
 
47

 
(42
)
 
(18
)
 
125

 
 
 
(21
)
 
—

 
(21
)
Total embedded derivatives
 
108

 
(358
)
 
46

 
(33
)
 
(13
)
 
121

 
 
 
(250
)
 
3

 
(253
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on total derivatives
 
87

 
(243
)
 
7

 
(1
)
 
(3
)
 
90

 
 
 
(156
)
 
(2
)
 
(154
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment related gains (losses), net
 
$
81

 
$
(285
)
 
$
22

 
$
49

 
$
12

 
$
69

 
 
 
$
(204
)
 
$
20

 
$
(224
)
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
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
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
U.S. & Latin America Traditional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(158
)
 
$
(62
)
 
$
85

 
$
113

 
$
55

 
$
(213
)
 
 
 
$
(220
)
 
$
67

 
$
(287
)
Change in value of modified coinsurance and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
funds withheld embedded derivatives (1)
 
(7
)
 
7

 
(2
)
 
10

 
4

 
(11
)
 
 
 
—

 
10

 
(10
)
Adjusted operating income (loss) before income taxes
 
$
(165
)
 
$
(55
)
 
$
83

 
$
123

 
$
59

 
$
(224
)
 
 
 
$
(220
)
 
$
77

 
$
(297
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. & Latin America Asset-Intensive
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
93

 
$
(38
)
 
$
78

 
$
100

 
$
72

 
$
21

 
 
 
$
55

 
$
137

 
$
(82
)
Investment and derivative (gains) losses (1)
 
86

 
(191
)
 
45

 
(81
)
 
(26
)
 
112

 
 
 
(105
)
 
(5
)
 
(100
)
Change in value of modified coinsurance and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
funds withheld embedded derivatives (1)
 
6

 
223

 
3

 
(19
)
 
(9
)
 
15

 
 
 
229

 
(13
)
 
242

GMXB embedded derivatives (1)
 
(107
)
 
128

 
(47
)
 
42

 
18

 
(125
)
 
 
 
21

 
—

 
21

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

 
—

 
(1
)
 
—

 
 
 
(2
)
 
5

 
(7
)
EIA embedded derivatives - interest credited
 
7

 
12

 
(10
)
 
36

 
18

 
(11
)
 
 
 
19

 
20

 
(1
)
DAC offset, net
 
(21
)
 
(87
)
 
(4
)
 
(13
)
 
(3
)
 
(18
)
 
 
 
(108
)
 
(15
)
 
(93
)
Non-investment derivatives and other
 
—

 
(3
)
 
—

 
—

 
—

 
—

 
 
 
(3
)
 
—

 
(3
)
Adjusted operating income before income taxes
 
$
63

 
$
43

 
$
65

 
$
65

 
$
69

 
$
(6
)
 
 
 
$
106

 
$
129

 
$
(23
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. & Latin America Capital Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
24

 
$
23

 
$
26

 
$
19

 
$
20

 
$
4

 
 
 
$
47

 
$
38

 
$
9

Adjusted operating income before income taxes
 
$
24

 
$
23

 
$
26

 
$
19

 
$
20

 
$
4

 
 
 
$
47

 
$
38

 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Canada Traditional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
44

 
$
23

 
$
28

 
$
43

 
$
46

 
$
(2
)
 
 
 
$
67

 
$
97

 
$
(30
)
Investment and derivative (gains) losses (1)
 
(5
)
 
14

 
(1
)
 
1

 
(1
)
 
(4
)
 
 
 
9

 
(7
)
 
16

Investment income - non-operating FWAI
 
1

 
(1
)
 
—

 
—

 
—

 
1

 
 
 
—

 
—

 
—

Adjusted operating income before income taxes
 
$
40

 
$
36

 
$
27

 
$
44

 
$
45

 
$
(5
)
 
 
 
$
76

 
$
90

 
$
(14
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Canada Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
4

 
$
3

 
$
7

 
$
3

 
$
4

 
$
—

 
 
 
$
7

 
$
5

 
$
2

Adjusted operating income before income taxes
 
$
4

 
$
3

 
$
7

 
$
3

 
$
4

 
$
—

 
 
 
$
7

 
$
5

 
$
2

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

                                        
 
rgaqfslogoaa01a13.jpg
Page 39

    

Reinsurance Group of America, Incorporated
Reconciliations of GAAP Income to Adjusted Operating Income
(USD millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Current Qtr
 
 
 
Year-to-Date
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
vs. PY
 
 
 
June 30,
 
June 30,
 
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
Quarter
 
 
 
2020
 
2019
 
Change
Europe, Middle East and Africa Traditional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
16

 
$
17

 
$
23

 
$
25

 
$
16

 
$
—

 
 
 
$
33

 
$
32

 
$
1

Adjusted operating income before income taxes
 
$
16

 
$
17

 
$
23

 
$
25

 
$
16

 
$
—

 
 
 
$
33

 
$
32

 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Europe, Middle East and Africa Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
98

 
$
30

 
$
72

 
$
61

 
$
52

 
$
46

 
 
 
$
128

 
$
90

 
$
38

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

 
(1
)
 
(2
)
 
(3
)
 
(13
)
 
 
 
(10
)
 
(6
)
 
(4
)
Investment income - non-operating FWAI
 
(3
)
 
—

 
—

 
—

 
—

 
(3
)
 
 
 
(3
)
 
—

 
(3
)
Investment (income) loss on unit-linked variable annuities
 
(15
)
 
16

 
1

 
(12
)
 
(3
)
 
(12
)
 
 
 
1

 
(15
)
 
16

Interest credited on unit-linked variable annuities
 
15

 
(16
)
 
(1
)
 
12

 
3

 
12

 
 
 
(1
)
 
15

 
(16
)
Non-investment derivatives and other
 
—

 
—

 
2

 
—

 
—

 
—

 
 
 
—

 
—

 
—

Adjusted operating income before income taxes
 
$
79

 
$
36

 
$
73

 
$
59

 
$
49

 
$
30

 
 
 
$
115

 
$
84

 
$
31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific Traditional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
47

 
$
24

 
$
12

 
$
22

 
$
34

 
$
13

 
 
 
$
71

 
$
71

 
$
—

Adjusted operating income before income taxes
 
$
47

 
$
24

 
$
12

 
$
22

 
$
34

 
$
13

 
 
 
$
71

 
$
71

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific Financial Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
26

 
$
(25
)
 
$
13

 
$
2

 
$
2

 
$
24

 
 
 
$
1

 
$
8

 
$
(7
)
Investment and derivative (gains) losses (1)
 
(14
)
 
35

 
(5
)
 
3

 
2

 
(16
)
 
 
 
21

 
(1
)
 
22

Adjusted operating income before income taxes
 
$
12

 
$
10

 
$
8

 
$
5

 
$
4

 
$
8

 
 
 
$
22

 
$
7

 
$
15

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

 
$
(91
)
 
$
(36
)
 
$
(41
)
 
$
(41
)
 
$
42

 
 
 
$
(90
)
 
$
(68
)
 
$
(22
)
Investment and derivative (gains) losses (1)
 
(20
)
 
68

 
(8
)
 
2

 
6

 
(26
)
 
 
 
48

 
10

 
38

Interest expense on uncertain tax positions
 
4

 
4

 
4

 
9

 
2

 
2

 
 
 
8

 
5

 
3

Non-investment derivatives and other
 
4

 
—

 
—

 
—

 
—

 
4

 
 
 
4

 
—

 
4

Adjusted operating loss before income taxes
 
$
(11
)
 
$
(19
)
 
$
(40
)
 
$
(30
)
 
$
(33
)
 
$
22

 
 
 
$
(30
)
 
$
(53
)
 
$
23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity
 
$
12,553

 
$
9,301

 
$
11,601

 
$
11,524

 
$
10,709

Less effect of AOCI:
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustments
 
(210
)
 
(223
)
 
(92
)
 
(157
)
 
(123
)
Unrealized appreciation of securities
 
4,089

 
1,426

 
3,299

 
3,472

 
2,816

Pension and postretirement benefits
 
(78
)
 
(73
)
 
(70
)
 
(57
)
 
(51
)
Stockholders’ equity, excluding AOCI
 
$
8,752

 
$
8,171

 
$
8,464

 
$
8,266

 
$
8,067

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliations of Book Value Per Share to Book Value Per Share Excluding AOCI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share
 
$
184.78

 
$
150.88

 
$
185.17

 
$
184.06

 
$
170.64

Less effect of AOCI:
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustments
 
(3.09
)
 
(3.62
)
 
(1.46
)
 
(2.51
)
 
(1.96
)
Unrealized appreciation of securities
 
60.19

 
23.14

 
52.65

 
55.46

 
44.87

Pension and postretirement benefits
 
(1.14
)
 
(1.19
)
 
(1.12
)
 
(0.91
)
 
(0.81
)
Book value per share, excluding AOCI
 
$
128.82

 
$
132.55

 
$
135.10

 
$
132.02

 
$
128.54



                                        
 
rgaqfslogoaa01a13.jpg
Page 41