EX-99.2 3 qfs1q22.htm EX-99.2

Exhibit 99.2

 

Quarterly Financial Supplement

First Quarter 2022

(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”.

 

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Reinsurance Group of America, Incorporated

1st Quarter 2022

Table of Contents

			Page
Non-GAAP Disclosures			1
Consolidated
Financial Highlights			2
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)			3
Consolidated Balance Sheets			5
Segment Summaries of GAAP Income Statements and Adjusted Operating Income Statements
U.S. and Latin America Traditional			6
U.S. and Latin America Financial Solutions - Asset-Intensive			8
U.S. and Latin America Financial Solutions - Capital Solutions			11
Canada Traditional			13
Canada Financial Solutions			15
Europe, Middle East and Africa Traditional			17
Europe, Middle East and Africa Financial Solutions			19
Asia Pacific Traditional			21
Asia Pacific Financial Solutions			23
Corporate and Other			25
Summary of Segment GAAP Income			27
Summary of Segment Adjusted Operating Income			28
Investments
Cash and Invested Assets and Investment Income and Yield Summary			29
Amortized Cost, Allowance for Credit Losses, Gross Unrealized Gains and Losses, and Estimated Fair Values of Fixed Maturity Securities			30
Corporate Fixed Maturity Securities by Industry			31
Ratings of Fixed Maturity Securities and Structured Fixed Maturity Securities			32
Fixed Maturity Securities Below Amortized Cost			33
Consolidated Investment Related Gains and Losses			35
Appendix
Reconciliations of GAAP to Non-GAAP Measures			36

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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.

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 taxes is presented in the appendix.

RGA evaluates its shareholders’ equity position excluding the impact of accumulated other comprehensive income (loss) (“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 RGA, Inc. shareholders’ equity before and after the impact of AOCI is presented in the appendix.

                                        

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Reinsurance Group of America, Incorporated
Financial Highlights
						Three Months Ended																														Current Qtr vs. PY Quarter
(USD millions, except in force & per share data)						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
						2022						2021						2021						2021						2021
Net premiums						$	3,155					$	3,407					$	3,094					$	3,098					$	2,914					$	241
Net income (loss)						(63)						156						(22)						344						139						(202)
Adjusted operating income (loss)						32						(38)						(75)						274						(84)						116
Return on equity - annualized						(2.3)		%				4.8		%				(0.7)		%				10.8		%				4.2		%				(6.5)		%
Return on equity - trailing 12 months						3.4		%				4.7		%				4.5		%				6.3		%				5.2		%				(1.8)		%
Adjusted operating return on equity (ex AOCI) - annualized						1.4		%				(1.6)		%				(3.2)		%				11.9		%				(3.7)		%				5.1		%
Adjusted operating return on equity (ex AOCI) - trailing 12 months						2.1		%				0.8		%				2.1		%				5.7		%				3.7		%				(1.6)		%
Total assets						$	89,761					$	92,175					$	91,449					$	88,944					$	84,810					$	4,951
Assumed Life Reinsurance In Force (in billions)
U.S. and Latin America Traditional						$	1,645.1					$	1,628.4					$	1,619.9					$	1,619.4					$	1,610.2					$	34.9
U.S. and Latin America Financial Solutions						5.3						5.3						5.3						5.3						5.3						—
Canada Traditional						484.5						472.6						463.1						468.3						460.1						24.4
Europe, Middle East and Africa Traditional						850.7						861.6						852.8						861.4						830.8						19.9
Asia Pacific Traditional						508.4						497.4						526.0						516.1						521.0						(12.6)
Asia Pacific Financial Solutions						1.1						1.7						1.5						1.2						1.2						(0.1)
Total assumed life reinsurance in force						$	3,495.1					$	3,467.0					$	3,468.6					$	3,471.7					$	3,428.6					$	66.5
Assumed New Business Production (in billions)
U.S. and Latin America Traditional						$	39.5					$	32.4					$	33.9					$	35.7					$	28.5					$	11.0
U.S. and Latin America Financial Solutions						—						—						—						—						—						—
Canada Traditional						12.7						14.6						11.5						8.5						14.2						(1.5)
Europe, Middle East and Africa Traditional						50.5						51.0						32.0						87.8						27.6						22.9
Asia Pacific Traditional						16.6						8.6						7.1						10.9						7.6						9.0
Asia Pacific Financial Solutions						0.1						0.1						—						0.1						—						0.1
Total assumed new business production						$	119.4					$	106.7					$	84.5					$	143.0					$	77.9					$	41.5
Per Share and Shares Data
Basic earnings per share
Net income (loss)						$	(0.93)					$	2.32					$	(0.32)					$	5.06					$	2.04					$	(2.97)
Adjusted operating income (loss)						$	0.48					$	(0.56)					$	(1.11)					$	4.04					$	(1.24)					$	1.72
Diluted earnings per share (1)
Net income (loss) (1)						$	(0.93)					$	2.30					$	(0.32)					$	5.02					$	2.03					$	(2.96)
Adjusted operating income (loss) (1)						$	0.47					$	(0.56)					$	(1.11)					$	4.00					$	(1.24)					$	1.71
Wgt. average common shares outstanding
Basic						67,104						67,380						67,916						67,990						67,975						(871)
Diluted						67,649						67,930						68,417						68,533						68,427						(778)
Common shares issued						85,311						85,311						85,311						85,311						85,311						—
Treasury shares						18,323						18,140						17,711						17,314						17,326						997
Common shares outstanding						66,988						67,171						67,600						67,997						67,985						(997)
Book value per share						$	137.08					$	193.75					$	190.60					$	197.72					$	177.83					$	(40.75)
Per share effect of AOCI						$	(0.81)					$	54.22					$	53.00					$	59.43					$	44.16					$	(44.97)
Book value per share, excluding AOCI						$	137.89					$	139.53					$	137.60					$	138.29					$	133.67					$	4.22
Stockholders’ dividends paid						49						49						50						47						48						1
(1) As a result of anti-dilutive impact, in periods of a loss, weighted average common shares outstanding (basic) are used in the calculation of diluted earnings per share.

                                        

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Reinsurance Group of America, Incorporated
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	3,155					$	3,407					$	3,094					$	3,098					$	2,914					$	241
Net investment income						810						771						796						759						812						(2)
Investment related gains (losses), net						(126)						88						58						112						302						(428)
Other revenue						91						93						95						168						91						—
Total revenues						3,930						4,359						4,043						4,137						4,119						(189)
Benefits and expenses:
Claims and other policy benefits						3,225						3,482						3,289						2,813						3,192						33
Interest credited						141						159						177						218						146						(5)
Policy acquisition costs and other insurance expenses						355						406						338						339						333						22
Other operating expenses						226						253						229						240						214						12
Interest expense						42						(2)						41						43						45						(3)
Collateral finance and securitization expense						1						4						3						2						3						(2)
Total benefits and expenses						3,990						4,302						4,077						3,655						3,933						57
Income (loss) before income taxes						(60)						57						(34)						482						186						(246)
Provision for income taxes						3						(99)						(12)						138						47						(44)
Net income (loss)						$	(63)					$	156					$	(22)					$	344					$	139					$	(202)
Pre-tax adjusted operating income reconciliation:
Income (loss) before income taxes						$	(60)					$	57					$	(34)					$	482					$	186					$	(246)
Investment and derivative (gains) losses (1)						119						(31)						(66)						(104)						(228)						347
Change in value of modified coinsurance and funds withheld embedded derivatives (1)						33						(20)						(21)						(16)						(50)						83
GMXB embedded derivatives (1)						(14)						(29)						37						17						(18)						4
Funds withheld (gains) losses - investment income						8						(1)						(2)						(1)						(1)						9
EIA embedded derivatives - interest credited						(17)						(9)						(3)						(3)						(30)						13
DAC offset, net						(10)						26						2						(2)						12						(22)
Investment (income) loss on unit-linked variable annuities						9						(5)						2						(2)						1						8
Interest credited on unit-linked variable annuities						(9)						5						(2)						2						(1)						(8)
Interest expense on uncertain tax positions						—						(34)						2						3						3						(3)
Non-investment derivatives and other						—						5						(4)						(15)						11						(11)
Adjusted operating income (loss) before income taxes						$	59					$	(36)					$	(89)					$	361					$	(115)					$	174
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement.

                                        

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Reinsurance Group of America, Incorporated
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
After-tax adjusted operating income reconciliation:
Net income (loss)						$	(63)					$	156					$	(22)					$	344					$	139					$	(202)
Investment and derivative (gains) losses (1)						94						(25)						(52)						(82)						(179)						273
Change in value of modified coinsurance and funds withheld embedded derivatives (1)						26						(16)						(17)						(12)						(40)						66
GMXB embedded derivatives (1)						(11)						(22)						29						13						(14)						3
Funds withheld (gains) losses - investment income						6						(1)						(1)						(1)						(1)						7
EIA embedded derivatives - interest credited						(13)						(8)						(2)						(2)						(24)						11
DAC offset, net						(8)						21						1						(1)						9						(17)
Investment (income) loss on unit-linked variable annuities						7						(4)						2						(2)						1						6
Interest credited on unit-linked variable annuities						(7)						4						(2)						2						(1)						(6)
Interest expense on uncertain tax positions						—						(27)						1						3						2						(2)
Non-investment derivatives and other						—						4						(3)						(12)						9						(9)
Uncertain tax positions and other tax related items						1						(120)						(9)						24						15						(14)
Adjusted operating income (loss)						$	32					$	(38)					$	(75)					$	274					$	(84)					$	116
Diluted earnings per share - adjusted operating income (loss) (2)						$	0.47					$	(0.56)					$	(1.11)					$	4.00					$	(1.24)					$	1.71
Foreign currency effect on (3):
Net premiums						$	(47)					$	(3)					$	51					$	124					$	78					$	(125)
Adjusted operating income (loss) before income taxes						$	(1)					$	—					$	(7)					$	10					$	1					$	(2)
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement.
(2) 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.
(3) Compared to comparable prior year period.

                                        

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Reinsurance Group of America, Incorporated
Consolidated Balance Sheets
(USD millions)
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
						2022						2021						2021						2021						2021
Assets
Fixed maturity securities, available-for-sale						$	57,922					$	60,749					$	59,289					$	58,287					$	56,426
Equity securities						139						151						160						147						135
Mortgage loans on real estate						6,535						6,283						6,366						6,481						6,001
Policy loans						1,221						1,234						1,234						1,254						1,253
Funds withheld at interest						6,737						6,954						7,034						7,049						5,459
Short-term investments						315						87						82						184						157
Other invested assets						3,033						3,070						3,404						2,924						2,983
Total investments						75,902						78,528						77,569						76,326						72,414
Cash and cash equivalents						2,709						2,948						3,027						3,254						3,122
Accrued investment income						578						533						574						525						546
Premiums receivable and other reinsurance balances						2,883						2,888						3,013						3,102						2,907
Reinsurance ceded receivables						2,595						2,580						2,585						1,093						1,089
Deferred policy acquisition costs						3,797						3,690						3,687						3,622						3,617
Other assets						1,297						1,008						994						1,022						1,115
Total assets						$	89,761					$	92,175					$	91,449					$	88,944					$	84,810
Liabilities and equity
Future policy benefits						$	35,946					$	35,782					$	35,666					$	33,761					$	33,675
Interest-sensitive contract liabilities						28,083						26,377						26,017						26,161						23,142
Other policy claims and benefits						7,079						6,993						7,117						6,795						7,077
Other reinsurance balances						582						613						543						531						560
Deferred income taxes						1,843						2,886						2,407						2,699						2,417
Other liabilities						3,123						2,663						3,327						2,057						1,930
Long-term debt						3,667						3,667						3,173						3,173						3,573
Collateral finance and securitization notes						166						180						314						323						346
Total liabilities						80,489						79,161						78,564						75,500						72,720
Equity:
Common stock, at par value						1						1						1						1						1
Additional paid-in-capital						2,465						2,461						2,447						2,430						2,411
Retained earnings						8,446						8,563						8,458						8,531						8,235
Treasury stock						(1,675)						(1,653)						(1,604)						(1,559)						(1,559)
Accumulated other comprehensive income (AOCI):
Accumulated currency translation adjustment, net of income taxes						4						(9)						(50)						(20)						(39)
Unrealized appreciation of securities, net of income taxes						(9)						3,701						3,704						4,133						3,113
Pension and postretirement benefits, net of income taxes						(50)						(50)						(71)						(72)						(72)
Total RGA, Inc. stockholders’ equity						9,182						13,014						12,885						13,444						12,090
Noncontrolling interest						90						—						—						—						—
Total equity						9,272						13,014						12,885						13,444						12,090
Total liabilities and equity						$	89,761					$	92,175					$	91,449					$	88,944					$	84,810
Total RGA, Inc. stockholders’ equity, excluding AOCI						$	9,237					$	9,372					$	9,302					$	9,403					$	9,088
See appendix for reconciliation of total stockholders' equity before and after impact of AOCI.

                                        

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Reinsurance Group of America, Incorporated
U.S. and Latin America Traditional
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	1,541					$	1,697					$	1,550					$	1,578					$	1,419					$	122
Net investment income						304						245						245						233						207						97
Investment related gains (losses), net						15						4						(5)						1						6						9
Other revenue						7						4						5						4						5						2
Total revenues						1,867						1,950						1,795						1,816						1,637						230
Benefits and expenses:
Claims and other policy benefits						1,765						1,892						1,670						1,418						1,740						25
Interest credited						17						18						17						18						17						—
Policy acquisition costs and other insurance expenses						208						209						195						206						182						26
Other operating expenses						43						42						39						39						36						7
Total benefits and expenses						2,033						2,161						1,921						1,681						1,975						58
Income (loss) before income taxes						$	(166)					$	(211)					$	(126)					$	135					$	(338)					$	172
Loss and expense ratios:
Claims and other policy benefits						114.5		%				111.5		%				107.7		%				89.9		%				122.6		%				(8.1)		%
Policy acquisition costs and other insurance expenses						13.5		%				12.3		%				12.6		%				13.1		%				12.8		%				0.7		%
Other operating expenses						2.8		%				2.5		%				2.5		%				2.5		%				2.5		%				0.3		%
Foreign currency effect on (1):
Net premiums						$	—					$	—					$	2					$	2					$	(1)					$	1
Income (loss) before income taxes						$	—					$	1					$	(1)					$	—					$	—					$	—
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.

                                        

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Reinsurance Group of America, Incorporated
U.S. and Latin America Traditional
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						Qtr vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	1,541					$	1,697					$	1,550					$	1,578					$	1,419					$	122
Net investment income						304						245						245						233						207						97
Other revenue						7						4						5						4						5						2
Total revenues						1,852						1,946						1,800						1,815						1,631						221
Benefits and expenses:
Claims and other policy benefits						1,765						1,892						1,670						1,418						1,740						25
Interest credited						17						18						17						18						17						—
Policy acquisition costs and other insurance expenses						208						209						195						206						182						26
Other operating expenses						43						42						39						39						36						7
Total benefits and expenses						2,033						2,161						1,921						1,681						1,975						58
Adjusted operating income (loss) before income taxes						$	(181)					$	(215)					$	(121)					$	134					$	(344)					$	163
Loss and expense ratios:
Claims and other policy benefits						114.5		%				111.5		%				107.7		%				89.9		%				122.6		%				(8.1)		%
Policy acquisition costs and other insurance expenses						13.5		%				12.3		%				12.6		%				13.1		%				12.8		%				0.7		%
Other operating expenses						2.8		%				2.5		%				2.5		%				2.5		%				2.5		%				0.3		%
Foreign currency effect on (1):
Net premiums						$	—					$	—					$	2					$	2					$	(1)					$	1
Adjusted operating income (loss) before income taxes						$	—					$	1					$	(1)					$	—					$	—					$	—
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.

                                        

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Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Asset-Intensive
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	15					$	13					$	14					$	15					$	13					$	2
Net investment income						262						264						290						276						257						5
Investment related gains (losses), net						(80)						36						12						30						(6)						(74)
Other revenue						27						26						31						85						26						1
Total revenues						224						339						347						406						290						(66)
Benefits and expenses:
Claims and other policy benefits						48						37						48						21						60						(12)
Interest credited						107						120						149						182						114						(7)
Policy acquisition costs and other insurance expenses						40						79						34						32						47						(7)
Other operating expenses						9						10						10						8						9						—
Total benefits and expenses						204						246						241						243						230						(26)
Income before income taxes						$	20					$	93					$	106					$	163					$	60					$	(40)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.

                                        

						Page 8

                         

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Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Asset-Intensive
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	15					$	13					$	14					$	15					$	13					$	2
Net investment income						264						264						290						274						258						6
Other revenue						27						25						31						85						26						1
Total revenues						306						302						335						374						297						9
Benefits and expenses:
Claims and other policy benefits						48						37						48						21						60						(12)
Interest credited						124						129						152						185						144						(20)
Policy acquisition costs and other insurance expenses						50						53						32						34						35						15
Other operating expenses						9						10						10						8						9						—
Total benefits and expenses						231						229						242						248						248						(17)
Adjusted operating income before income taxes						$	75					$	73					$	93					$	126					$	49					$	26
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.

                                        

						Page 9

                         

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Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Asset-Intensive (continued)
(USD millions)
						Three Months Ended
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
						2022						2021						2021						2021						2021
Annuity account values:
Fixed annuities (deferred)						$	11,693					$	11,858					$	11,997					$	13,687					$	10,659
Net interest spread (fixed annuities)						2.0		%				1.4		%				1.7		%				1.2		%				1.3		%
Equity-indexed annuities						$	3,114					$	3,213					$	3,293					$	3,343					$	3,391
Variable annuities account values
No riders						$	786					$	844					$	827					$	834					$	823
GMDB only						891						960						968						949						901
GMIB only						23						25						25						25						24
GMAB only						3						3						3						4						4
GMWB only						1,035						1,130						1,110						1,145						1,116
GMDB / WB						240						264						261						271						265
Other						18						19						19						19						18
Total variable annuities account values						$	2,996					$	3,245					$	3,213					$	3,247					$	3,151
Fair value of liabilities associated with living benefit riders						$	148					$	162					$	191					$	154					$	136
Interest-sensitive contract liabilities associated with:
Guaranteed investment contracts						$	656					$	656					$	827					$	973					$	973
Bank-owned life insurance (BOLI)						$	2,499					$	2,492					$	2,480					$	2,471					$	2,463
Other asset-intensive business						$	114					$	115					$	117					$	119					$	123
Future policy benefits associated with:
Payout annuities						$	4,218					$	4,274					$	4,329					$	4,393					$	4,477

                                        

						Page 10

                         

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Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Capital Solutions
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net investment income						$	1					$	—					$	1					$	—					$	1					$	—
Other revenue						27						28						26						27						27						—
Total revenues						28						28						27						27						28						—
Benefits and expenses:
Policy acquisition costs and other insurance expenses						1						—						2						—						2						(1)
Other operating expenses						3						3						3						4						3						—
Total benefits and expenses						4						3						5						4						5						(1)
Income before income taxes						$	24					$	25					$	22					$	23					$	23					$	1
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.

                                        

						Page 11

                         

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Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions - Capital Solutions
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net investment income						$	1					$	—					$	1					$	—					$	1					$	—
Other revenue						27						28						26						27						27						—
Total revenues						28						28						27						27						28						—
Benefits and expenses:
Policy acquisition costs and other insurance expenses						1						—						2						—						2						(1)
Other operating expenses						3						3						3						4						3						—
Total benefits and expenses						4						3						5						4						5						(1)
Adjusted operating income before income taxes						$	24					$	25					$	22					$	23					$	23					$	1
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.

 

                                        

						Page 12

                         

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Reinsurance Group of America, Incorporated
Canada Traditional
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	304					$	324					$	289					$	301					$	280					$	24
Net investment income						55						60						65						63						60						(5)
Investment related gains, net						1						—						1						—						2						(1)
Other revenue						2						1						(1)						2						1						1
Total revenues						362						385						354						366						343						19
Benefits and expenses:
Claims and other policy benefits						300						298						255						277						266						34
Policy acquisition costs and other insurance expenses						46						50						46						46						45						1
Other operating expenses						10						9						9						11						8						2
Total benefits and expenses						356						357						310						334						319						37
Income before income taxes						$	6					$	28					$	44					$	32					$	24					$	(18)
Loss and expense ratios:
Claims and other policy benefits						98.7		%				92.0		%				88.2		%				92.0		%				95.0		%				3.7		%
Policy acquisition costs and other insurance expenses						15.1		%				15.4		%				15.9		%				15.3		%				16.1		%				(1.0)		%
Other operating expenses						3.3		%				2.8		%				3.1		%				3.7		%				2.9		%				0.4		%
Foreign currency effect on (1):
Net premiums						$	—					$	10					$	16					$	34					$	16					$	(16)
Income before income taxes						$	—					$	—					$	3					$	3					$	—					$	—
Creditor reinsurance net premiums						$	18					$	19					$	19					$	19					$	17					$	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.

                                        

						Page 13

                         

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Reinsurance Group of America, Incorporated
Canada Traditional
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	304					$	324					$	289					$	301					$	280					$	24
Net investment income						55						59						65						64						59						(4)
Investment related gains, net						—						2						1						1						2						(2)
Other revenue						2						1						(1)						2						1						1
Total revenues						361						386						354						368						342						19
Benefits and expenses:
Claims and other policy benefits						300						298						255						277						266						34
Policy acquisition costs and other insurance expenses						46						50						46						46						45						1
Other operating expenses						10						9						9						11						8						2
Total benefits and expenses						356						357						310						334						319						37
Adjusted operating income before income taxes						$	5					$	29					$	44					$	34					$	23					$	(18)
Loss and expense ratios:
Claims and other policy benefits						98.7		%				92.0		%				88.2		%				92.0		%				95.0		%				3.7		%
Policy acquisition costs and other insurance expenses						15.1		%				15.4		%				15.9		%				15.3		%				16.1		%				(1.0)		%
Other operating expenses						3.3		%				2.8		%				3.1		%				3.7		%				2.9		%				0.4		%
Foreign currency effect on (1):
Net premiums						$	—					$	10					$	16					$	34					$	16					$	(16)
Adjusted operating income before income taxes						$	—					$	—					$	3					$	3					$	—					$	—
Creditor reinsurance net premiums						$	18					$	19					$	19					$	19					$	17					$	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.

                                        

						Page 14

                         

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Reinsurance Group of America, Incorporated
Canada Financial Solutions (1)
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	23					$	22					$	22					$	23					$	23					$	—
Net investment income						1						—						—						—						—						1
Other revenue						1						2						3						3						3						(2)
Total revenues						25						24						25						26						26						(1)
Benefits and expenses:
Claims and other policy benefits						11						17						23						21						18						(7)
Policy acquisition costs and other insurance expenses						1						1						1						1						—						1
Other operating expenses						—						1						1						—						2						(2)
Total benefits and expenses						12						19						25						22						20						(8)
Income before income taxes						$	13					$	5					$	—					$	4					$	6					$	7
Foreign currency effect on (2):
Net premiums						$	—					$	1					$	1					$	3					$	1					$	(1)
Income before income taxes						$	—					$	1					$	—					$	—					$	—					$	—
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.

                                        

						Page 15

                         

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Reinsurance Group of America, Incorporated
Canada Financial Solutions (1)
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	23					$	22					$	22					$	23					$	23					$	—
Net investment income						1						—						—						—						—						1
Other revenue						1						2						3						3						3						(2)
Total revenues						25						24						25						26						26						(1)
Benefits and expenses:
Claims and other policy benefits						11						17						23						21						18						(7)
Policy acquisition costs and other insurance expenses						1						1						1						1						—						1
Other operating expenses						—						1						1						—						2						(2)
Total benefits and expenses						12						19						25						22						20						(8)
Adjusted operating income before income taxes						$	13					$	5					$	—					$	4					$	6					$	7
Foreign currency effect on (2):
Net premiums						$	—					$	1					$	1					$	3					$	1					$	(1)
Adjusted operating income before income taxes						$	—					$	—					$	—					$	1					$	—					$	—
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.

                                        

						Page 16

                         

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Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Traditional
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	451					$	435					$	432					$	433					$	438					$	13
Net investment income						22						22						22						24						20						2
Other revenue						3						—						—						2						(1)						4
Total revenues						476						457						454						459						457						19
Benefits and expenses:
Claims and other policy benefits						427						464						482						414						469						(42)
Policy acquisition costs and other insurance expenses						25						34						35						27						29						(4)
Other operating expenses						30						27						28						30						27						3
Total benefits and expenses						482						525						545						471						525						(43)
Loss before income taxes						$	(6)					$	(68)					$	(91)					$	(12)					$	(68)					$	62
Loss and expense ratios:
Claims and other policy benefits						94.7		%				106.7		%				111.6		%				95.6		%				107.1		%				(12.4)		%
Policy acquisition costs and other insurance expenses						5.5		%				7.8		%				8.1		%				6.2		%				6.6		%				(1.1)		%
Other operating expenses						6.7		%				6.2		%				6.5		%				6.9		%				6.2		%				0.5		%
Foreign currency effect on (1):
Net premiums						$	(16)					$	—					$	22					$	47					$	26					$	(42)
Loss before income taxes						$	1					$	—					$	(14)					$	(4)					$	(5)					$	6
Critical illness net premiums						$	39					$	42					$	46					$	44					$	42					$	(3)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.

                                        

						Page 17

                         

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Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Traditional
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	451					$	435					$	432					$	433					$	438					$	13
Net investment income						22						22						22						24						20						2
Other revenue						3						—						—						2						(1)						4
Total revenues						476						457						454						459						457						19
Benefits and expenses:
Claims and other policy benefits						427						464						482						414						469						(42)
Policy acquisition costs and other insurance expenses						25						34						35						27						29						(4)
Other operating expenses						30						27						28						30						27						3
Total benefits and expenses						482						525						545						471						525						(43)
Adjusted operating loss before income taxes						$	(6)					$	(68)					$	(91)					$	(12)					$	(68)					$	62
Loss and expense ratios:
Claims and other policy benefits						94.7		%				106.7		%				111.6		%				95.6		%				107.1		%				(12.4)		%
Policy acquisition costs and other insurance expenses						5.5		%				7.8		%				8.1		%				6.2		%				6.6		%				(1.1)		%
Other operating expenses						6.7		%				6.2		%				6.5		%				6.9		%				6.2		%				0.5		%
Foreign currency effect on (1):
Net premiums						$	(16)					$	—					$	22					$	47					$	26					$	(42)
Adjusted operating Loss before income taxes						$	1					$	—					$	(14)					$	(4)					$	(5)					$	6
Critical illness net premiums						$	39					$	42					$	46					$	44					$	42					$	(3)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.

                                        

						Page 18

                         

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Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Financial Solutions (1)
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	128					$	91					$	96					$	84					$	79					$	49
Net investment income						35						56						51						50						48						(13)
Investment related gains, net						16						8						23						2						16						—
Other revenue						3						2						4						3						3						—
Total revenues						182						157						174						139						146						36
Benefits and expenses:
Claims and other policy benefits						91						60						77						42						75						16
Interest credited						(9)						5						(2)						2						(1)						(8)
Policy acquisition costs and other insurance expenses						1						5						2						1						2						(1)
Other operating expenses						14						12						12						11						10						4
Total benefits and expenses						97						82						89						56						86						11
Income before income taxes						$	85					$	75					$	85					$	83					$	60					$	25
Foreign currency effect on (2):
Net premiums						$	(5)					$	1					$	5					$	9					$	6					$	(11)
Income before income taxes						$	(3)					$	1					$	5					$	10					$	5					$	(8)
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.

                                        

						Page 19

                         

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Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Financial Solutions (1)
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	128					$	91					$	96					$	84					$	79					$	49
Net investment income						50						51						51						48						48						2
Investment related gains (losses), net						4						3						2						2						(1)						5
Other revenue						3						2						4						3						3						—
Total revenues						185						147						153						137						129						56
Benefits and expenses:
Claims and other policy benefits						91						60						77						42						75						16
Interest credited						—						—						—						—						—						—
Policy acquisition costs and other insurance expenses						1						5						2						1						2						(1)
Other operating expenses						14						12						12						11						10						4
Total benefits and expenses						106						77						91						54						87						19
Adjusted operating income before income taxes						$	79					$	70					$	62					$	83					$	42					$	37
Foreign currency effect on (2):
Net premiums						$	(5)					$	1					$	5					$	9					$	6					$	(11)
Adjusted operating income before income taxes						$	(3)					$	1					$	4					$	9					$	4					$	(7)
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.

                                        

						Page 20

                         

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Reinsurance Group of America, Incorporated
Asia Pacific Traditional
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	650					$	773					$	626					$	616					$	609					$	41
Net investment income						33						36						33						34						33						—
Investment related gains, net						—						—						—						—						(1)						1
Other revenue						5						6						4						3						6						(1)
Total revenues						688						815						663						653						647						41
Benefits and expenses:
Claims and other policy benefits						542						667						682						578						518						24
Policy acquisition costs and other insurance expenses						47						44						31						41						43						4
Other operating expenses						48						47						46						46						45						3
Total benefits and expenses						637						758						759						665						606						31
Income (loss) before income taxes						$	51					$	57					$	(96)					$	(12)					$	41					$	10
Loss and expense ratios:
Claims and other policy benefits						83.4		%				86.3		%				108.9		%				93.8		%				85.1		%				(1.7)		%
Policy acquisition costs and other insurance expenses						7.2		%				5.7		%				5.0		%				6.7		%				7.1		%				0.1		%
Other operating expenses						7.4		%				6.1		%				7.3		%				7.5		%				7.4		%				—		%
Foreign currency effect on (1):
Net premiums						$	(23)					$	(13)					$	6					$	30					$	29					$	(52)
Income (loss) before income taxes						$	2					$	(2)					$	—					$	(1)					$	1					$	1
Critical illness net premiums						$	295					$	424					$	306					$	282					$	269					$	26
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.

                                        

						Page 21

                         

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Reinsurance Group of America, Incorporated
Asia Pacific Traditional
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	650					$	773					$	626					$	616					$	609					$	41
Net investment income						33						36						33						34						33						—
Investment related gains, net						—						—						—						—						(1)						1
Other revenue						5						6						4						3						6						(1)
Total revenues						688						815						663						653						647						41
Benefits and expenses:
Claims and other policy benefits						542						667						682						578						518						24
Policy acquisition costs and other insurance expenses						47						44						31						41						43						4
Other operating expenses						48						47						46						46						45						3
Total benefits and expenses						637						758						759						665						606						31
Adjusted operating income (loss) before income taxes						$	51					$	57					$	(96)					$	(12)					$	41					$	10
Loss and expense ratios:
Claims and other policy benefits						83.4		%				86.3		%				108.9		%				93.8		%				85.1		%				(1.7)		%
Policy acquisition costs and other insurance expenses						7.2		%				5.7		%				5.0		%				6.7		%				7.1		%				0.1		%
Other operating expenses						7.4		%				6.1		%				7.3		%				7.5		%				7.4		%				—		%
Foreign currency effect on (1):
Net premiums						$	(23)					$	(13)					$	6					$	30					$	29					$	(52)
Adjusted operating income (loss) before income taxes						$	1					$	(2)					$	—					$	(1)					$	1					$	—
Critical illness net premiums						$	295					$	424					$	306					$	282					$	269					$	26
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.

 

                                        

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Reinsurance Group of America, Incorporated
Asia Pacific Financial Solutions (1)
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	43					$	52					$	65					$	48					$	53					$	(10)
Net investment income						44						42						37						31						28						16
Investment related gains (losses), net						(81)						7						(15)						15						12						(93)
Other revenue						15						13						8						10						11						4
Total revenues						21						114						95						104						104						(83)
Benefits and expenses:
Claims and other policy benefits						41						47						52						42						46						(5)
Interest credited						20						15						12						15						15						5
Policy acquisition costs and other insurance expenses						12						15						19						11						11						1
Other operating expenses						4						4						6						5						4						—
Total benefits and expenses						77						81						89						73						76						1
Income (loss) before income taxes						$	(56)					$	33					$	6					$	31					$	28					$	(84)
Foreign currency effect on (2):
Net premiums						$	(3)					$	(2)					$	(1)					$	(1)					$	1					$	(4)
Income (loss) before income taxes						$	6					$	(2)					$	—					$	—					$	1					$	5
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.

                                        

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Reinsurance Group of America, Incorporated
Asia Pacific Financial Solutions (1)
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net premiums						$	43					$	52					$	65					$	48					$	53					$	(10)
Net investment income						44						42						37						31						28						16
Investment related gains, net						4						3						4						4						3						1
Other revenue						7						13						8						10						11						(4)
Total revenues						98						110						114						93						95						3
Benefits and expenses:
Claims and other policy benefits						41						47						52						42						46						(5)
Interest credited						20						15						12						15						15						5
Policy acquisition costs and other insurance expenses						12						15						19						11						11						1
Other operating expenses						4						4						6						5						4						—
Total benefits and expenses						77						81						89						73						76						1
Adjusted operating income before income taxes						$	21					$	29					$	25					$	20					$	19					$	2
Foreign currency effect on (2):
Net premiums						$	(3)					$	(2)					$	(1)					$	(1)					$	1					$	(4)
Adjusted operating income before income taxes						$	(1)					$	(2)					$	—					$	—					$	—					$	(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.

 

                                        

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Reinsurance Group of America, Incorporated
Corporate and Other
GAAP Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net investment income						$	53					$	46					$	52					$	48					$	158					$	(105)
Investment related gains, net						3						33						42						64						273						(270)
Other revenue						1						11						15						29						10						(9)
Total revenues						57						90						109						141						441						(384)
Benefits and expenses:
Claims and other policy benefits						—						—						—						—						—						—
Interest credited						6						1						1						1						1						5
Policy acquisition costs and other insurance income						(26)						(31)						(27)						(26)						(28)						2
Other operating expenses						65						98						75						86						70						(5)
Interest expense						42						(2)						41						43						45						(3)
Collateral finance and securitization expense						1						4						3						2						3						(2)
Total benefits and expenses						88						70						93						106						91						(3)
Income (loss) before income taxes						$	(31)					$	20					$	16					$	35					$	350					$	(381)
Foreign currency effect on (1):
Income (loss) before income taxes						$	—					$	1					$	2					$	6					$	2					$	(2)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.

                                        

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Reinsurance Group of America, Incorporated
Corporate and Other
Adjusted Operating Income Statements
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Revenues:
Net investment income						$	53					$	46					$	52					$	48					$	158					$	(105)
Investment related gains, net						4						—						1						2						3						1
Other revenue						9						17						11						14						21						(12)
Total revenues						66						63						64						64						182						(116)
Benefits and expenses:
Claims and other policy benefits						—						—						—						—						—						—
Interest credited						6						1						1						1						1						5
Policy acquisition costs and other insurance income						(26)						(31)						(27)						(26)						(28)						2
Other operating expenses						65						98						75						86						70						(5)
Interest expense						42						32						39						40						42						—
Collateral finance and securitization expense						1						4						3						2						3						(2)
Total benefits and expenses						88						104						91						103						88						—
Adjusted operating income (loss) before income taxes						$	(22)					$	(41)					$	(27)					$	(39)					$	94					$	(116)
Foreign currency effect on (1):
Adjusted operating income (loss) before income taxes						$	1					$	2					$	1					$	2					$	1					$	—
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.

 

                                        

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Reinsurance Group of America, Incorporated
Summary of Segment GAAP Income
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
U.S. and Latin America:
Traditional						$	(166)					$	(211)					$	(126)					$	135					$	(338)					$	172
Financial Solutions:
Asset Intensive						20						93						106						163						60						(40)
Capital Solutions						24						25						22						23						23						1
Total U.S. and Latin America						(122)						(93)						2						321						(255)						133
Canada:
Traditional						6						28						44						32						24						(18)
Financial Solutions						13						5						—						4						6						7
Total Canada						19						33						44						36						30						(11)
Europe, Middle East and Africa:
Traditional						(6)						(68)						(91)						(12)						(68)						62
Financial Solutions						85						75						85						83						60						25
Total Europe, Middle East and Africa						79						7						(6)						71						(8)						87
Asia Pacific:
Traditional						51						57						(96)						(12)						41						10
Financial Solutions						(56)						33						6						31						28						(84)
Total Asia Pacific						(5)						90						(90)						19						69						(74)
Corporate and Other						(31)						20						16						35						350						(381)
Consolidated income (loss) before income taxes						$	(60)					$	57					$	(34)					$	482					$	186					$	(246)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.

                                        

						Page 27

                         

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Reinsurance Group of America, Incorporated
Summary of Segment Adjusted Operating Income
(USD millions)
						Three Months Ended																														Current Qtr vs. PY Quarter
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
						2022						2021						2021						2021						2021
U.S. and Latin America:
Traditional						$	(181)					$	(215)					$	(121)					$	134					$	(344)					$	163
Financial Solutions:
Asset Intensive						75						73						93						126						49						26
Capital Solutions						24						25						22						23						23						1
Total U.S. and Latin America						(82)						(117)						(6)						283						(272)						190
Canada:
Traditional						5						29						44						34						23						(18)
Financial Solutions						13						5						—						4						6						7
Total Canada						18						34						44						38						29						(11)
Europe, Middle East and Africa:
Traditional						(6)						(68)						(91)						(12)						(68)						62
Financial Solutions						79						70						62						83						42						37
Total Europe, Middle East and Africa						73						2						(29)						71						(26)						99
Asia Pacific:
Traditional						51						57						(96)						(12)						41						10
Financial Solutions						21						29						25						20						19						2
Total Asia Pacific						72						86						(71)						8						60						12
Corporate and Other						(22)						(41)						(27)						(39)						94						(116)
Consolidated adjusted operating income (loss) before income taxes						$	59					$	(36)					$	(89)					$	361					$	(115)					$	174
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.

 

                                        

						Page 28

                         

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Reinsurance Group of America, Incorporated
Investments
(USD millions)
Cash and Invested Assets
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
						2022						2021						2021						2021						2021
Fixed maturity securities, available-for-sale (1)						$	57,922					$	60,749					$	59,289					$	58,287					$	56,426
Equity securities						139						151						160						147						135
Mortgage loans on real estate						6,535						6,283						6,366						6,481						6,001
Policy loans						1,221						1,234						1,234						1,254						1,253
Funds withheld at interest						6,737						6,954						7,034						7,049						5,459
Short-term investments						315						87						82						184						157
Other invested assets						3,033						3,070						3,404						2,924						2,983
Cash and cash equivalents						2,709						2,948						3,027						3,254						3,122
Total cash and invested assets						$	78,611					$	81,476					$	80,596					$	79,580					$	75,536
(1) The Company holds various types of fixed maturity securities available-for-sale and classifies them as corporate securities (“Corporate”), Canadian and Canadian provincial government securities (“Canadian government”), residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”), commercial mortgage-backed securities (“CMBS”), U.S. government and agencies (“U.S. government”), state and political subdivisions, and other foreign government, supernational and foreign government-sponsored enterprises (“Other foreign government”).

 

Investment Income and Yield Summary
						Three Months Ended																														Current Qtr vs. PY Quarter
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
						2022						2021						2021						2021						2021
Average invested assets at amortized cost (1)						$	35,271					$	34,325					$	33,361					$	33,587					$	33,367					$	1,904
Net investment income (1)						$	457					$	397					$	405					$	383					$	463					$	(6)
Annualized investment yield (ratio of net investment income to average invested assets at amortized cost) (1)						5.29		%				4.70		%				4.95		%				4.64		%				5.67		%				(38) bps
Variable investment income ("VII") (included in net investment income) (1)						$	141					$	91					$	102					$	78					$	162					$	(21)
Annualized investment yield excluding VII (ratio of net investment income, excluding VII, to average invested assets, excluding assets with only VII, at amortized cost) (1)						3.80		%				3.78		%				3.85		%				3.84		%				3.79		%				1 bp
(1) Excludes spread related business (e.g. coinsurance of annuities).

 

                                        

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Reinsurance Group of America, Incorporated
Investments
(USD millions)
Amortized Cost, Allowance for Credit Losses, Gross Unrealized Gains and Losses, and Estimated Fair Values of Fixed Maturity Securities
						March 31, 2022
						Amortized Cost						Allowance for Credit Losses						Unrealized Gains						Unrealized Losses						Estimated Fair Value						% of Total
Available-for-sale:
Corporate						$	36,813					$	33					$	954					$	1,354					$	36,380					62.8		%
Canadian government						3,381						—						1,038						12						4,407						7.6		%
RMBS						983						—						11						28						966						1.7		%
ABS						3,915						5						5						169						3,746						6.5		%
CMBS						1,829						1						6						48						1,786						3.1		%
U.S. government						1,587						—						7						69						1,525						2.6		%
State and political subdivisions						1,206						—						50						47						1,209						2.1		%
Other foreign government						8,135						3						110						339						7,903						13.6		%
Total fixed maturity securities						$	57,849					$	42					$	2,181					$	2,066					$	57,922					100.0		%

						December 31, 2021
						Amortized Cost						Allowance for Credit Losses						Unrealized Gains						Unrealized Losses						Estimated Fair Value						% of Total
Available-for-sale:
Corporate						$	35,239					$	26					$	3,084					$	194					$	38,103					62.8		%
Canadian government						3,339						—						1,606						1						4,944						8.1		%
RMBS						1,020						—						37						7						1,050						1.7		%
ABS						4,024						—						22						41						4,005						6.6		%
CMBS						1,790						1						66						6						1,849						3.0		%
U.S. government						2,082						—						31						8						2,105						3.5		%
State and political subdivisions						1,191						—						137						5						1,323						2.2		%
Other foreign government						7,188						4						273						87						7,370						12.1		%
Total fixed maturity securities						$	55,873					$	31					$	5,256					$	349					$	60,749					100.0		%

                                        

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Reinsurance Group of America, Incorporated
Investments
(USD millions)
Corporate Fixed Maturity Securities by Industry
						March 31, 2022																								December 31, 2021
						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						$	6,132					$	6,063					16.7		%				A-						$	5,792					$	6,163					16.2		%				A-
Brokerage/asset managers/exchanges						1,169						1,136						3.1		%				A-						1,073						1,145						3.0		%				A-
Finance companies						384						360						1.0		%				BBB						306						316						0.8		%				BBB+
Insurance						4,198						4,184						11.5		%				A-						3,987						4,383						11.5		%				A-
REITs						1,041						988						2.7		%				BBB+						987						1,022						2.7		%				BBB+
Other finance						915						868						2.4		%				A-						956						1,016						2.7		%				A-
Total financial institutions						$	13,839					$	13,599					37.4		%										$	13,101					$	14,045					36.9		%
Industrials
Basic						$	2,017					$	2,056					5.7		%				BBB						$	1,972					$	2,210					5.8		%				BBB
Capital goods						1,587						1,590						4.4		%				BBB						1,542						1,649						4.3		%				BBB
Communications						2,432						2,435						6.7		%				BBB						2,330						2,592						6.8		%				BBB
Consumer cyclical						1,776						1,736						4.8		%				BBB+						1,758						1,885						4.9		%				BBB+
Consumer noncyclical						4,100						4,062						11.1		%				BBB+						3,952						4,315						11.3		%				BBB+
Energy						2,064						2,062						5.6		%				BBB+						1,967						2,159						5.7		%				BBB+
Technology						1,488						1,445						4.0		%				BBB+						1,436						1,486						3.9		%				BBB+
Transportation						2,093						2,060						5.6		%				BBB+						2,050						2,192						5.8		%				BBB+
Other industrial						939						936						2.6		%				BBB						850						887						2.3		%				BBB
Total industrials						$	18,496					$	18,382					50.5		%										$	17,857					$	19,375					50.8		%
Utilities
Electric						$	3,430					$	3,366					9.2		%				A-						$	3,256					$	3,561					9.4		%				A-
Natural gas						580						564						1.6		%				A-						566						614						1.6		%				BBB+
Other utility						468						469						1.3		%				BBB+						459						508						1.3		%				BBB+
Total utilities						$	4,478					$	4,399					12.1		%										$	4,281					$	4,683					12.3		%
Total						$	36,813					$	36,380					100.0		%				BBB+						$	35,239					$	38,103					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.

                                        

						Page 31

                         

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Reinsurance Group of America, Incorporated

Investments

(USD millions)

Ratings of Fixed Maturity Securities
												March 31, 2022																		December 31, 2021																		September 30, 2021																		June 30, 2021																		March 31, 2021
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						$	34,434					$	34,741					60.0		%				$	33,540					$	36,725					60.5		%				$	32,444					$	35,554					60.0		%				$	31,394					$	34,862					59.8		%				$	31,323					$	34,096					60.4		%
2						BBB						19,691						19,574						33.8		%				18,684						20,379						33.5		%				18,025						19,814						33.4		%				17,948						19,896						34.1		%				17,402						18,799						33.3		%
3						BB						2,821						2,769						4.8		%				2,620						2,668						4.4		%				2,868						2,952						5.0		%				2,575						2,683						4.6		%				2,622						2,704						4.8		%
4						B						730						720						1.2		%				876						863						1.4		%				832						822						1.4		%				686						678						1.2		%				695						669						1.2		%
5						CCC						127						92						0.2		%				96						79						0.1		%				161						137						0.2		%				179						159						0.3		%				170						145						0.3		%
6						In or near default						46						26						—		%				57						35						0.1		%				17						10						—		%				15						9						—		%				17						13						—		%
						Total						$	57,849					$	57,922					100.0		%				$	55,873					$	60,749					100.0		%				$	54,347					$	59,289					100.0		%				$	52,797					$	58,287					100.0		%				$	52,229					$	56,426					100.0		%
(1) Structured securities held by the Company’s insurance subsidiaries that maintain the NAIC statutory basis of accounting utilize the NAIC rating methodology.
(2) The Rating Agency Designation includes all “+” or “-” at that rating level (e. g. “BBB” includes “BBB+”, “BBB”, and “BBB-”).

 

 

Structured Fixed Maturity Securities
						March 31, 2022																		December 31, 2021																		September 30, 2021																		June 30, 2021																		March 31, 2021
						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						$	538					$	537					8.3		%				$	551					$	582					8.4		%				$	594					$	631					9.2		%				$	623					$	667					9.9		%				$	659					$	701					10.7		%
Non-agency						445						429						6.6		%				469						468						6.8		%				571						578						8.4		%				700						710						10.5		%				877						890						13.4		%
Total RMBS						983						966						14.9		%				1,020						1,050						15.2		%				1,165						1,209						17.6		%				1,323						1,377						20.4		%				1,536						1,591						24.1		%
ABS:
Collateralized loan obligations ("CLOs")						1,659						1,630						25.1		%				1,761						1,752						25.4		%				1,841						1,838						26.8		%				1,722						1,720						25.6		%				1,603						1,593						24.2		%
ABS, excluding CLOs						2,256						2,116						32.5		%				2,263						2,253						32.6		%				1,922						1,941						28.3		%				1,745						1,762						26.2		%				1,553						1,558						23.7		%
Total ABS						3,915						3,746						57.6		%				4,024						4,005						58.0		%				3,763						3,779						55.1		%				3,467						3,482						51.8		%				3,156						3,151						47.9		%
CMBS						1,829						1,786						27.5		%				1,790						1,849						26.8		%				1,795						1,877						27.3		%				1,774						1,869						27.8		%				1,774						1,840						28.0		%
Total						$	6,727					$	6,498					100.0		%				$	6,834					$	6,904					100.0		%				$	6,723					$	6,865					100.0		%				$	6,564					$	6,728					100.0		%				$	6,466					$	6,582					100.0		%

 

                                        

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Reinsurance Group of America, Incorporated
Investments
(USD millions)
Fixed Maturity Securities Below Amortized Cost (1)
						As of March 31, 2022
						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						$	15,156					$	1,082					$	1,161					$	186					$	16,317					$	1,268
Canadian government						127						8						15						4						142						12
RMBS						400						15						137						13						537						28
ABS						2,632						139						604						18						3,236						157
CMBS						1,178						40						34						3						1,212						43
U.S. government						1,148						64						27						5						1,175						69
State and political subdivisions						460						42						30						5						490						47
Other foreign government						4,287						218						727						83						5,014						301
Total investment grade securities						$	25,388					$	1,608					$	2,735					$	317					$	28,123					$	1,925
Below investment grade securities:
Corporate						$	878					$	50					$	108					$	33					$	986					$	83
ABS						22						2						9						2						31						4
CMBS						28						2						9						1						37						3
Other foreign government						172						15						102						23						274						38
Total below investment grade securities						$	1,100					$	69					$	228					$	59					$	1,328					$	128
Total fixed maturity securities						$	26,488					$	1,677					$	2,963					$	376					$	29,451					$	2,053
(1) Included in the table above are securities for which an allowance for credit loss has not been recorded.

 

                                        

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Reinsurance Group of America, Incorporated
Investments
(USD millions)
Fixed Maturity Securities Below Amortized Cost (1)
						As of December 31, 2021
						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						$	4,135					$	86					$	946					$	51					$	5,081					$	137
Canadian government						20						1						—						—						20						1
RMBS						132						3						102						4						234						7
ABS						1,747						22						589						6						2,336						28
CMBS						152						2						35						2						187						4
U.S. government						1,513						6						31						2						1,544						8
State and political subdivisions						109						3						28						2						137						5
Other foreign government						2,237						33						724						37						2,961						70
Total investment grade securities						$	10,045					$	156					$	2,455					$	104					$	12,500					$	260
Below investment grade securities:
Corporate						$	463					$	13					$	97					$	44					$	560					$	57
ABS						—						—						13						13						13						13
CMBS						—						—						—						—						—						—
Other foreign government						136						7						75						10						211						17
Total below investment grade securities						$	599					$	20					$	185					$	67					$	784					$	87
Total fixed maturity securities						$	10,644					$	176					$	2,640					$	171					$	13,284					$	347
(1) Included in the table above are securities for which an allowance for credit loss has not been recorded.

                                        

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Reinsurance Group of America, Incorporated
Investments
(USD millions)
Consolidated Investment Related Gains and Losses
						Three Months Ended																														Current Qtr vs. PY Quarter
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
						2022						2021						2021						2021						2021
Fixed maturity securities available-for-sale:
Change in allowance for credit losses and impairments						$	(12)					$	(14)					$	(1)					$	5					$	(2)					$	(10)
Realized gains on investment activity						11						34						45						53						167						(156)
Realized losses on investment activity						(36)						(13)						(9)						(30)						(13)						(23)
Net gains (losses) on fixed maturity securities available-for-sale						(37)						7						35						28						152						(189)
Net gains (losses) on equity securities						(8)						(6)						8						20						3						(11)
Other impairment losses and change in mortgage loan allowance for credit losses						(2)						4						4						3						18						(20)
Change in fair value of certain limited partnership investments and other, net						26						24						27						32						111						(85)
Free-standing derivatives:
Interest rate swaps - non-hedged						(52)						7						(4)						33						(70)						18
Financial futures						7						(5)						—						(9)						(10)						17
Foreign currency swaps - non-hedged						7						5						3						3						9						(2)
Foreign currency swaps - hedged						4						1						—						—						1						3
Foreign currency forwards - non-hedged						(23)						(9)						(2)						(1)						(8)						(15)
CPI swaps						29						13						12						3						18						11
Credit default swaps						(58)						13						(12)						12						20						(78)
Equity options						—						(15)						3						(11)						(10)						10
Total free-standing derivatives						(86)						10						—						30						(50)						(36)
Embedded derivatives:
Modified coinsurance and funds withheld treaties						(33)						20						21						16						50						(83)
GMXB						14						29						(37)						(17)						18						(4)
Total embedded derivatives						(19)						49						(16)						(1)						68						(87)
Net gains (losses) on total derivatives						(105)						59						(16)						29						18						(123)
Total investment related gains (losses), net						$	(126)					$	88					$	58					$	112					$	302					$	(428)

                                        

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Appendix

Reconciliations of GAAP to Non-GAAP Measures

                                        

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Reinsurance Group of America, Incorporated
Reconciliations of GAAP Income to Adjusted Operating Income
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
U.S. & Latin America Traditional
Income (loss) before income taxes						$	(166)					$	(211)					$	(126)					$	135					$	(338)					$	172
Change in value of modified coinsurance and
funds withheld embedded derivatives (1)						(15)						(4)						5						(1)						(6)						(9)
Adjusted operating income (loss) before income taxes						$	(181)					$	(215)					$	(121)					$	134					$	(344)					$	163
U.S. & Latin America Asset-Intensive
Income before income taxes						$	20					$	93					$	106					$	163					$	60					$	(40)
Investment and derivative (gains) losses (1)						46						9						(23)						(32)						68						(22)
Change in value of modified coinsurance and
funds withheld embedded derivatives (1)						48						(16)						(26)						(15)						(44)						92
GMXB embedded derivatives (1)						(14)						(29)						37						17						(18)						4
Funds withheld (gains) losses - investment income						2						—						—						(2)						1						1
EIA embedded derivatives - interest credited						(17)						(9)						(3)						(3)						(30)						13
DAC offset, net						(10)						26						2						(2)						12						(22)
Non-investment derivatives and other						—						(1)						—						—						—						—
Adjusted operating income before income taxes						$	75					$	73					$	93					$	126					$	49					$	26
U.S. & Latin America Capital Solutions
Income before income taxes						$	24					$	25					$	22					$	23					$	23					$	1
Adjusted operating income before income taxes						$	24					$	25					$	22					$	23					$	23					$	1
Canada Traditional
Income before income taxes						$	6					$	28					$	44					$	32					$	24					$	(18)
Investment and derivative (gains) losses (1)						(1)						2						—						1						—						(1)
Investment income - non-operating FWAI						—						(1)						—						1						(1)						1
Adjusted operating income before income taxes						$	5					$	29					$	44					$	34					$	23					$	(18)
Canada Financial Solutions
Income before income taxes						$	13					$	5					$	—					$	4					$	6					$	7
Adjusted operating income before income taxes						$	13					$	5					$	—					$	4					$	6					$	7
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement.

                                        

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Reinsurance Group of America, Incorporated
Reconciliations of GAAP Income to Adjusted Operating Income
(USD millions)
						Three Months Ended																														Current Qtr
						March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,						vs. PY
						2022						2021						2021						2021						2021						Quarter
Europe, Middle East and Africa Traditional
Loss before income taxes						$	(6)					$	(68)					$	(91)					$	(12)					$	(68)					$	62
Adjusted operating loss before income taxes						$	(6)					$	(68)					$	(91)					$	(12)					$	(68)					$	62
Europe, Middle East and Africa Financial Solutions
Income before income taxes						$	85					$	75					$	85					$	83					$	60					$	25
Investment and derivative losses (1)						(12)						(5)						(21)						—						(17)						5
Investment income - non-operating FWAI						6						—						(2)						—						(1)						7
Investment (income) loss on unit-linked variable annuities						9						(5)						2						(2)						1						8
Interest credited on unit-linked variable annuities						(9)						5						(2)						2						(1)						(8)
Adjusted operating income before income taxes						$	79					$	70					$	62					$	83					$	42					$	37
Asia Pacific Traditional
Income (loss) before income taxes						$	51					$	57					$	(96)					$	(12)					$	41					$	10
Adjusted operating income (loss) before income taxes						$	51					$	57					$	(96)					$	(12)					$	41					$	10
Asia Pacific Financial Solutions
Income (loss) before income taxes						$	(56)					$	33					$	6					$	31					$	28					$	(84)
Investment and derivative (gains) losses (1)						85						(4)						19						(11)						(9)						94
Non-investment derivatives						(8)						—						—						—						—						(8)
Adjusted operating income before income taxes						$	21					$	29					$	25					$	20					$	19					$	2
Corporate and Other
Income (loss) before income taxes						$	(31)					$	20					$	16					$	35					$	350					$	(381)
Investment and derivative (gains) losses (1)						1						(33)						(41)						(62)						(270)						271
Interest expense on uncertain tax positions						—						(34)						2						3						3						(3)
Non-investment derivatives and other						8						6						(4)						(15)						11						(3)
Adjusted operating income (loss) before income taxes						$	(22)					$	(41)					$	(27)					$	(39)					$	94					$	(116)
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement.

                                        

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Reinsurance Group of America, Incorporated
Reconciliations of RGA, Inc. Stockholders’ Equity to RGA, Inc. Stockholders’ Equity Excluding AOCI
(USD millions except per share data)
									March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
									2022						2021						2021						2021						2021
RGA, Inc. stockholders’ equity									$	9,182					$	13,014					$	12,885					$	13,444					$	12,090
Less effect of AOCI:
Accumulated currency translation adjustments									4						(9)						(50)						(20)						(39)
Unrealized appreciation of securities									(9)						3,701						3,704						4,133						3,113
Pension and postretirement benefits									(50)						(50)						(71)						(72)						(72)
RGA, Inc. stockholders’ equity, excluding AOCI									$	9,237					$	9,372					$	9,302					$	9,403					$	9,088
Reconciliations of Book Value Per Share to Book Value Per Share Excluding AOCI
									March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
									2022						2021						2021						2021						2021
Book value per share									$	137.08					$	193.75					$	190.60					$	197.72					$	177.83
Less effect of AOCI:
Accumulated currency translation adjustments									0.06						(0.13)						(0.75)						(0.29)						(0.57)
Unrealized appreciation of securities									(0.13)						55.09						54.80						60.78						45.79
Pension and postretirement benefits									(0.74)						(0.74)						(1.05)						(1.06)						(1.06)
Book value per share, excluding AOCI									$	137.89					$	139.53					$	137.60					$	138.29					$	133.67

                                        

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