REINSURANCE GROUP OF AMERICA INC - FORM 8-K - EX-99.2

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REINSURANCE GROUP OF AMERICA INC Reports

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8-K - 8-K - REINSURANCE GROUP OF AMERICA INC	d616826d8k.htm
EX-99.1 - EX-99.1 - REINSURANCE GROUP OF AMERICA INC	d616826dex991.htm

Exhibit 99.2

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Financial Supplement

Third Quarter 2013

(Unaudited)

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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 Limited	AA-	NR	NR
RGA Global Reinsurance Company Limited	AA-	NR	NR
RGA Reinsurance Company of Australia Limited	AA-	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

Financial Supplement

3rd Quarter 2013

Table of Contents


	Page

Non-GAAP Disclosure		1

Consolidated

Financial Highlights		2

Consolidated Income Statement (incl. Operating Income Reconciliation)		3

Consolidated Operating Income Statement		4

Consolidated Balance Sheets		5

Segment Pre-tax Operating Income Summaries and Reconciliations to U.S. GAAP

U.S. Operations		6

Canada Operations		10

Europe & South Africa Operations		11

Asia Pacific Operations		12

Corporate and Other		13

Summary of Pre-tax Segment Operating Income		14

Investments

Cash and Invested Assets, Yield Summary		15

Amortized cost, Gross Unrealized Gains and Losses, Estimated Fair Values of Fixed Maturity and Equity Securities		16

Corporate Securities by Sector (Fixed Maturities and Equities)		17

Quality of Fixed Maturity Securities and Structured Fixed Maturity Securities		18

CMBS Exposure (Including Funds Withheld Portfolios)		19

Gross Unrealized Losses Aging		20

Fixed Maturity and Equity Securities Below Amortized Cost		21

Consolidated Gross Gains and Losses		22

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Reinsurance Group of America, Incorporated

Financial Supplement

This 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 with the SEC.

Non-GAAP Disclosures

RGA uses a non-GAAP financial measure called 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 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, operating income excludes any net gain or loss from discontinued operations, the cumulative effect of any accounting changes, and other items that management believes are not indicative of the company’s ongoing operations. The definition of 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 pre-tax operating income (loss) is presented herein.

RGA evaluates its stockholder 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.

Additionally, RGA uses a non-GAAP financial measure called operating return on equity, which is calculated as operating income divided by average shareholders’ equity excluding AOCI.

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Page 1

Reinsurance Group of America, Incorporated

Financial Highlights


(USD thousands, except inforce & per share data)	Three Months Ended or As of															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,		Sept. 30,
	2013			2013			2013			2012			2012			Quarter			2013		2012		Change
Net premiums	$	2,026,180		$	2,035,156		$	1,979,693		$	2,179,707		$	1,912,746		$	113,434		$	6,041,029	$	5,726,889	$	314,140
Net income (loss)		137,955			(49,612	)		185,535			222,989			144,475			(6,520	)		273,878		408,904		(135,026	)
Operating income (loss)		152,887			(71,797	)		122,847			181,830			99,902			52,985			203,937		334,552		(130,615	)
Operating return on equity (ex AOCI) - annualized		12.9	%		-6.0	%		10.1	%		15.5	%		8.9	%		4.0	%
Operating return on equity (ex AOCI) - trailing 12 months		8.1	%		7.1	%		11.4	%		11.6	%		10.5	%		-2.4	%
Total assets		39,526,555			38,790,621			40,197,101			40,360,438			39,924,013			(397,458	)
Assumed Life Reinsurance in Force (in billions)
U.S.	$	1,392.1		$	1,392.3		$	1,395.6		$	1,395.6		$	1,403.3		$	(11.2	)
Canada		391.1			376.4			382.8			389.7			384.8			6.3
Europe & South Africa		626.5			584.9			581.8			602.5			559.4			67.1
Asia Pacific		494.1			470.2			512.6			539.8			533.5			(39.4	)

Total Life Reinsurance in Force	$	2,903.8		$	2,823.8		$	2,872.8		$	2,927.6		$	2,881.0		$	22.8

Assumed New Business Production (in billions)
U.S.	$	22.0		$	21.8		$	25.7		$	19.2		$	23.1		$	(1.1	)	$	69.5	$	132.2	$	(62.7	)
Canada		11.6			11.1			12.9			12.0			11.3			0.3			35.6		37.0		(1.4	)
Europe & South Africa		27.0			28.4			45.7			58.4			37.3			(10.3	)		101.1		77.6		23.5
Asia Pacific		31.0			42.7			11.6			12.8			47.2			(16.2	)		85.3		77.4		7.9

Total New Business Production	$	91.6		$	104.0		$	95.9		$	102.4		$	118.9		$	(27.3	)	$	291.5	$	324.2	$	(32.7	)

Per Share and Shares Data
Basic earnings per share
Net income (loss)	$	1.95		$	(0.69	)	$	2.51		$	3.02		$	1.96		$	(0.01	)	$	3.79	$	5.55	$	(1.76	)
Operating income (loss)	$	2.16		$	(0.99	)	$	1.66		$	2.46		$	1.35		$	0.81		$	2.82	$	4.54	$	(1.72	)
Diluted earnings per share (1)
Net income (loss)	$	1.93		$	(0.69	)	$	2.49		$	3.00		$	1.95		$	(0.02	)	$	3.76	$	5.52	$	(1.76	)
Operating income (loss)	$	2.14		$	(0.99	)	$	1.65		$	2.44		$	1.35		$	0.79		$	2.80	$	4.52	$	(1.72	)
Wgt. average common shares outstanding (basic)		70,865			72,350			73,838			73,880			73,776			(2,911	)		72,342		73,690		(1,348	)
Wgt. average common shares outstanding (diluted)		71,391			72,769			74,389			74,375			74,138			(2,747	)		72,840		74,078		(1,238	)
Common shares issued		79,138			79,138			79,138			79,138			79,138			—			79,138		79,138		—
Treasury shares		8,595			8,170			5,837			5,211			5,286			3,309			8,595		5,286		3,309
Common shares outstanding		70,543			70,968			73,301			73,927			73,852			(3,309	)		70,543		73,852		(3,309	)
Book value per share	$	83.58		$	82.97		$	94.34		$	93.47		$	91.18
Per share effect of accumulated other comprehensive income (AOCI)	$	15.60		$	16.66		$	26.97		$	28.52		$	29.13
Book value per share, excluding AOCI	$	67.98		$	66.31		$	67.37		$	64.95		$	62.05
Shareholder dividends paid	$	21,296.2		$	17,415.9		$	17,752.7		$	17,724.7		$	17,696.2		$	3,600.0		$	56,464.8	$	44,220.1	$	12,244.7

(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 Statement (incl. Operating Income Reconciliations)


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Revenues:
Net premiums	$	2,026,180		$	2,035,156		$	1,979,693		$	2,179,707		$	1,912,746		$	113,434		$	6,041,029		$	5,726,889		$	314,140
Investment income, net of related expenses		369,366			444,234			425,131			370,151			396,781			(27,415	)		1,238,731			1,066,055			172,676
Investment related gains (losses), net
OTTI on fixed maturity securities		(391	)		(9,803	)		(202	)		(4,346	)		(1,996	)		1,605			(10,396	)		(11,562	)		1,166
OTTI on fixed maturity securities transferred to/from AOCI		59			(306	)		—			—			(559	)		618			(247	)		(7,618	)		7,371
Other investment related gains (losses), net		(76,133	)		58,352			94,573			115,108			78,608			(154,741	)		76,792			162,554			(85,762	)

Total investment related gains (losses), net		(76,465	)		48,243			94,371			110,762			76,053			(152,518	)		66,149			143,374			(77,225	)
Other revenue		70,734			63,009			101,907			62,482			63,501			7,233			235,650			181,491			54,159

Total revenues		2,389,815			2,590,642			2,601,102			2,723,102			2,449,081			(59,266	)		7,581,559			7,117,809			463,750
Benefits and expenses:
Claims and other policy benefits		1,714,899			2,030,574			1,688,910			1,797,779			1,662,625			52,274			5,434,383			4,868,220			566,163
Interest credited		59,939			118,345			125,483			94,835			130,341			(70,402	)		303,767			285,080			18,687
Policy acquisition costs and other insurance expenses		268,081			370,505			357,357			344,791			318,106			(50,025	)		995,943			961,679			34,264
Other operating expenses		111,672			113,408			119,501			132,334			103,786			7,886			344,581			319,425			25,156
Interest expense		30,831			29,918			28,486			28,917			29,749			1,082			89,235			76,431			12,804
Collateral finance facility expense		2,698			2,650			2,538			3,357			2,995			(297	)		7,886			8,840			(954	)

Total benefits and expenses		2,188,120			2,665,400			2,322,275			2,402,013			2,247,602			(59,482	)		7,175,795			6,519,675			656,120
Income (loss) before income taxes		201,695			(74,758	)		278,827			321,089			201,479			216			405,764			598,134			(192,370	)
Income tax expense (benefit)		63,740			(25,146	)		93,292			98,100			57,004			6,736			131,886			189,230			(57,344	)

Net income (loss)	$	137,955		$	(49,612	)	$	185,535		$	222,989		$	144,475		$	(6,520	)	$	273,878		$	408,904		$	(135,026	)

Pre-tax Operating Income (Loss) Reconciliation:
Income (loss) before income taxes		201,695			(74,758	)		278,827			321,089			201,479			216			405,764			598,134			(192,370	)
Investment and derivative losses (gains) - non-operating (1)		30,513			37,057			48,842			(3,404	)		(16,940	)		47,453			116,412			(25,026	)		141,438
Change in value of modified coinsurance and funds withheld embedded derivatives (1)		67,460			(47,716	)		(90,258	)		(74,054	)		(54,836	)		122,296			(70,514	)		(40,955	)		(29,559	)
GMXB embedded derivatives (1)		(19,829	)		(35,809	)		(51,314	)		(30,588	)		(2,579	)		(17,250	)		(106,952	)		(74,025	)		(32,927	)
Funds withheld losses (gains) - investment income		3,465			(11,733	)		(2,031	)		(6,447	)		(6,400	)		9,865			(10,299	)		(10,683	)		384
Funds withheld losses (gains) - policy acq. costs		—			—			—			55			122			(122	)		—			483			(483	)
EIA embedded derivatives - interest credited		(30,292	)		(32,161	)		(19,311	)		7,711			(167	)		(30,125	)		(81,764	)		37,387			(119,151	)
DAC offset, net		(27,330	)		56,786			64,618			44,308			13,705			(41,035	)		94,074			2,047			92,027
Gain on repurchase of collateral finance facility securities		—			—			(46,506	)		—			—			—			(46,506	)		—			(46,506	)

Operating Income (loss) Before Income Taxes	$	225,682		$	(108,334	)	$	182,867		$	258,670		$	134,384		$	91,298		$	300,215		$	487,362		$	(187,147	)

After-tax Operating Income (Loss) Reconciliation:
Net Income (loss)		137,955			(49,612	)		185,535			222,989			144,475			(6,520	)		273,878			408,904			(135,026	)
Investment and derivative losses (gains) - non-operating (1)		19,174			23,726			31,434			(2,801	)		(11,972	)		31,146			74,334			(18,617	)		92,951
Change in value of modified coinsurance and funds withheld embedded derivatives (1)		43,849			(31,015	)		(58,668	)		(48,135	)		(35,644	)		79,493			(45,834	)		(26,621	)		(19,213	)
GMXB embedded derivatives (1)		(12,889	)		(23,276	)		(33,354	)		(19,882	)		(1,676	)		(11,213	)		(69,519	)		(48,116	)		(21,403	)
Funds withheld losses (gains) - investment income		2,252			(7,625	)		(1,321	)		(4,190	)		(4,160	)		6,412			(6,694	)		(6,944	)		250
Funds withheld losses (gains) - policy acq. costs		—			—			—			36			79			(79	)		—			314			(314	)
EIA embedded derivatives - interest credited		(19,690	)		(20,905	)		(12,552	)		5,012			(108	)		(19,582	)		(53,147	)		24,302			(77,449	)
DAC offset, net		(17,764	)		36,910			42,002			28,801			8,908			(26,672	)		61,148			1,330			59,818
Gain on repurchase of collateral finance facility securities		—			—			(30,229	)		—			—			—			(30,229	)		—			(30,229	)

Operating Income (loss)	$	152,887		$	(71,797	)	$	122,847		$	181,830		$	99,902		$	52,985		$	203,937		$	334,552		$	(130,615	)

(1)

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

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Reinsurance Group of America, Incorporated

Consolidated Operating Income Statement


	Three Months Ended														Current Qtr			Year-to-Date
(USD thousands, except per share data)	Sept. 30,			June 30,			March 31,			Dec. 31,		Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands, except per share data)	2013			2013			2013			2012		2012			Quarter			2013			2012			Change
Revenues:
Net premiums	$	2,026,180		$	2,035,156		$	1,979,693		$	2,179,707	$	1,912,746		$	113,434		$	6,041,029		$	5,726,889		$	314,140
Investment income, net of related expenses		372,831			432,501			423,100			363,704		390,381			(17,550	)		1,228,432			1,055,372			173,060
Investment related gains (losses), net		1,679			1,775			1,641			2,716		1,698			(19	)		5,095			3,368			1,727
Other revenue		70,734			63,009			55,401			62,482		63,501			7,233			189,144			181,491			7,653

Total revenues		2,471,424			2,532,441			2,459,835			2,608,609		2,368,326			103,098			7,463,700			6,967,120			496,580
Benefits and expenses:
Claims and other policy benefits		1,714,899			2,030,574			1,688,910			1,797,779		1,662,625			52,274			5,434,383			4,868,220			566,163
Interest credited		90,231			150,506			144,794			87,124		130,508			(40,277	)		385,531			247,693			137,838
Policy acquisition costs and other insurance expenses		295,411			313,719			292,739			300,428		304,279			(8,868	)		901,869			959,149			(57,280	)
Other operating expenses		111,672			113,408			119,501			132,334		103,786			7,886			344,581			319,425			25,156
Interest expense		30,831			29,918			28,486			28,917		29,749			1,082			89,235			76,431			12,804
Collateral finance facility expense		2,698			2,650			2,538			3,357		2,995			(297	)		7,886			8,840			(954	)

Total benefits and expenses		2,245,742			2,640,775			2,276,968			2,349,939		2,233,942			11,800			7,163,485			6,479,758			683,727
Operating income (loss) before income taxes		225,682			(108,334	)		182,867			258,670		134,384			91,298			300,215			487,362			(187,147	)
Operating income tax expense (benefit)		72,795			(36,537	)		60,020			76,840		34,482			38,313			96,278			152,810			(56,532	)

Operating income (loss)	$	152,887		$	(71,797	)	$	122,847		$	181,830	$	99,902		$	52,985		$	203,937		$	334,552		$	(130,615	)

Wgt. Average Common Shares Outstanding (Diluted) (1)		71,391			72,769			74,389			74,375		74,138			(2,747	)		72,840			74,078			(1,238	)

Diluted Earnings Per Share - Operating Income *(1)*	$	2.14		$	(0.99	)	$	1.65		$	2.44	$	1.35		$	0.79		$	2.80		$	4.52		$	(1.72	)

Foreign currency effect *(2)*:
Net premiums	$	(51,698	)	$	(21,173	)	$	(19,599	)	$	14,105	$	(25,972	)	$	(25,726	)	$	(92,470	)	$	(76,696	)	$	(15,774	)
Operating income before income taxes	$	(4,920	)	$	13,624		$	(2,798	)	$	1,799	$	(4,165	)	$	(755	)	$	5,906		$	(8,023	)	$	13,929

(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

(2)

Compared to comparable prior year period

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Page 4

Reinsurance Group of America, Incorporated

Consolidated Balance Sheets


(USD thousands)	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012
Assets
Fixed maturity securities, available-for-sale	$	21,289,108		$	21,284,216		$	22,401,659		$	22,291,614		$	21,658,414
Mortgage loans on real estate		2,488,582			2,377,246			2,325,191			2,300,587			2,256,881
Policy loans		1,244,878			1,245,252			1,245,812			1,278,175			1,243,498
Funds withheld at interest		5,739,872			5,777,395			5,698,594			5,594,182			5,608,640
Short-term investments		44,192			38,601			180,707			288,082			90,789
Other invested assets		1,116,391			1,035,809			1,129,651			1,159,543			1,236,616

Total investments		31,923,023			31,758,519			32,981,614			32,912,183			32,094,838
Cash and cash equivalents		1,423,235			973,619			1,001,841			1,259,892			1,603,730
Accrued investment income		262,330			233,153			230,269			201,344			250,048
Premiums receivable and other reinsurance balances		1,252,610			1,314,004			1,259,281			1,356,087			1,179,687
Reinsurance ceded receivables		592,948			585,555			602,373			620,901			623,954
Deferred policy acquisition costs		3,533,932			3,453,513			3,545,063			3,619,274			3,630,877
Other assets		538,477			472,258			576,660			390,757			540,879

Total assets	$	39,526,555		$	38,790,621		$	40,197,101		$	40,360,438		$	39,924,013

Liabilities and Stockholders’ Equity
Future policy benefits	$	11,873,306		$	11,491,692		$	11,355,882		$	11,372,856		$	11,093,483
Interest-sensitive contract liabilities		12,868,425			12,991,981			13,141,402			13,353,502			13,254,859
Other policy claims and benefits		3,440,371			3,316,727			3,243,948			3,160,250			3,132,526
Other reinsurance balances		264,023			254,815			250,606			233,630			218,057
Deferred income taxes		1,975,819			1,839,909			2,105,391			2,120,501			1,806,186
Other liabilities		510,079			584,488			877,405			742,249			1,217,788
Short-term debt		—			120,000			—			—			—
Long-term debt		2,214,170			1,815,533			1,815,392			1,815,253			1,815,111
Collateral finance facility		484,712			487,556			491,987			652,010			651,968

Total liabilities		33,630,905			32,902,701			33,282,013			33,450,251			33,189,978
Stockholders’ Equity:
Common stock, at par value		791			791			791			791			791
Additional paid-in-capital		1,778,307			1,772,811			1,765,255			1,755,421			1,743,822
Retained earnings		3,544,632			3,428,646			3,521,492			3,357,255			3,154,317
Treasury stock		(528,081	)		(496,462	)		(349,190	)		(312,182	)		(316,542	)

Accumulated other comprehensive income (AOCI):
Accumulated currency translation adjustment, net of income taxes		191,677			164,538			253,370			267,477			273,258
Unrealized appreciation of securities, net of income taxes		942,337			1,052,126			1,758,775			1,877,655			1,907,512
Pension and postretirement benefits, net of income taxes		(34,013	)		(34,530	)		(35,405	)		(36,230	)		(29,123	)

Total stockholders’ equity		5,895,650			5,887,920			6,915,088			6,910,187			6,734,035

Total liabilities and stockholders’ equity	$	39,526,555		$	38,790,621		$	40,197,101		$	40,360,438		$	39,924,013

Total stockholders’ equity, excluding AOCI	$	4,795,649		$	4,705,786		$	4,938,348		$	4,801,285		$	4,582,388

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Page 5

Reinsurance Group of America, Incorporated

U.S. Traditional Sub-segment Pre-tax Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Revenues:
Net premiums	$	1,112,526		$	1,124,292		$	1,046,049		$	1,159,106		$	1,045,767		$	66,759		$	3,282,867		$	3,149,674		$	133,193
Investment income, net of related expenses		138,146			133,259			132,289			133,988			135,532			2,614			403,694			401,601			2,093
Other revenue		651			1,144			529			2,448			764			(113	)		2,324			2,168			156

Total revenues		1,251,323			1,258,695			1,178,867			1,295,542			1,182,063			69,260			3,688,885			3,553,443			135,442
Benefits and expenses:
Claims and other policy benefits		961,746			972,739			929,680			973,185			917,264			44,482			2,864,165			2,759,532			104,633
Interest credited		13,659			13,590			16,150			11,421			14,637			(978	)		43,399			44,246			(847	)
Policy acquisition costs and other insurance expenses		162,443			164,393			139,968			145,437			156,995			5,448			466,804			453,438			13,366
Other operating expenses		23,397			22,226			23,521			25,890			20,684			2,713			69,144			65,271			3,873

Total benefits and expenses		1,161,245			1,172,948			1,109,319			1,155,933			1,109,580			51,665			3,443,512			3,322,487			121,025
Operating income before income taxes		90,078			85,747			69,548			139,609			72,483			17,595			245,373			230,956			14,417

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		90,078			85,747			69,548			139,609			72,483			17,595			245,373			230,956			14,417
Investment and derivative (losses) gains - non-operating		(5,262	)		3,700			7,297			11,752			(1,927	)		(3,335	)		5,735			(14,222	)		19,957

Income before income taxes	$	84,816		$	89,447		$	76,845		$	151,361		$	70,556		$	14,260		$	251,108		$	216,734		$	34,374

Loss and Expense Ratios:
Claims and other policy benefits		86.4	%		86.5	%		88.9	%		84.0	%		87.7	%		-1.3	%		87.2	%		87.6	%		-0.4	%
Policy acquisition costs and other insurance expenses		14.6	%		14.6	%		13.4	%		12.5	%		15.0	%		-0.4	%		14.2	%		14.4	%		-0.2	%
Other operating expenses		2.1	%		2.0	%		2.2	%		2.2	%		2.0	%		0.1	%		2.1	%		2.1	%		0.0	%

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Page 6

Reinsurance Group of America, Incorporated

U.S. Asset Intensive Sub-segment Pre-tax Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Revenues:
Net premiums	$	3,800		$	11,129		$	3,838		$	3,521		$	3,623		$	177		$	18,767		$	10,574		$	8,193
Investment income, net of related expenses		128,563			190,296			178,719			127,812			154,789			(26,226	)		497,578			356,817			140,761
Investment related gains (losses), net		—			—			—			—			—			—			—			(48	)		48
Other revenue		28,519			29,937			28,881			30,893			31,976			(3,457	)		87,337			81,123			6,214

Total revenues		160,882			231,362			211,438			162,226			190,388			(29,506	)		603,682			448,466			155,216
Benefits and expenses:
Claims and other policy benefits		8,899			11,083			3,588			2,892			2,828			6,071			23,570			9,832			13,738
Interest credited		76,097			136,424			128,096			74,992			115,645			(39,548	)		340,617			202,767			137,850
Policy acquisition costs and other insurance expenses		33,642			40,747			30,045			39,527			42,200			(8,558	)		104,434			159,159			(54,725	)
Other operating expenses		4,198			2,878			4,113			3,977			2,596			1,602			11,189			8,465			2,724

Total benefits and expenses		122,836			191,132			165,842			121,388			163,269			(40,433	)		479,810			380,223			99,587
Operating income before income taxes		38,046			40,230			45,596			40,838			27,119			10,927			123,872			68,243			55,629

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		38,046			40,230			45,596			40,838			27,119			10,927			123,872			68,243			55,629
Investment and derivative gains (losses) - non-operating (1)		(33,190	)		(39,071	)		(52,932	)		(13,667	)		2,039			(35,229	)		(125,193	)		(2,308	)		(122,885	)
Change in value of modified coinsurance and funds withheld embedded derivatives (1)		(68,703	)		46,325			90,202			76,778			54,257			(122,960	)		67,824			40,277			27,547
GMXB embedded derivatives (1)		19,829			35,809			51,314			30,588			2,579			17,250			106,952			74,025			32,927
Funds withheld gains (losses) - investment income		(3,755	)		10,541			650			3,944			5,652			(9,407	)		7,436			8,858			(1,422	)
Funds withheld gains (losses) - policy acq. costs		—			—			—			(55	)		(122	)		122			—			(483	)		483
EIA embedded derivatives - interest credited		30,292			32,161			19,311			(7,711	)		167			30,125			81,764			(37,387	)		119,151
DAC offset, net		27,330			(56,786	)		(64,618	)		(44,308	)		(13,705	)		41,035			(94,074	)		(2,047	)		(92,027	)

Income before income taxes	$	9,849		$	69,209		$	89,523		$	86,407		$	77,986		$	(68,137	)	$	168,581		$	149,178		$	19,403

(1)

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

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Page 7

Reinsurance Group of America, Incorporated

U.S. Asset Intensive Sub-segment

(Cont’d)


	Three Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,
(USD millions)	2013			2013			2013			2012			2012
Annuity account values:
Fixed annuities (deferred)	$	5,180		$	5,264		$	5,357		$	5,690		$	5,815
Net interest spread (fixed annuities):		2.5	%		2.3	%		2.2	%		2.2	%		1.1	%
Equity-indexed annuities	$	4,724		$	4,795		$	4,809		$	4,833		$	4,882
Variable annuities:
No riders	$	950		$	946		$	960		$	948		$	957
GMDB only		83			56			80			79			80
GMIB only		6			6			6			6			6
GMAB only		52			52			54			54			55
GMWB only		1,704			1,660			1,707			1,662			1,667
GMDB / WB		459			450			465			455			461
Other		31			30			32			31			31

Total VA account values	$	3,285		$	3,200		$	3,304		$	3,235		$	3,257
Fair value of liabilities associated with living benefit riders	$	65		$	85		$	121		$	172		$	203
Interest-sensitive contract liabilities associated with:
Guaranteed investment contracts	$	236		$	200		$	200		$	200		$	200
Bank-owned life insurance (BOLI)	$	531		$	529		$	525		$	522		$	519
Other asset-intensive business	$	73		$	73		$	75		$	75		$	76

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Page 8

Reinsurance Group of America, Incorporated

U.S. Financial Reinsurance Sub-segment Pre-tax Operating Income


	Three Months Ended													Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,		Dec. 31,		Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013		2012		2012			Quarter			2013			2012			Change
Revenues:
Investment income, net of related expenses	$	1,160		$	819		$	597	$	361	$	364		$	796		$	2,576		$	707		$	1,869
Other revenue		15,599			16,306			12,797		13,796		11,565			4,034			44,702			32,209			12,493

Total revenues		16,759			17,125			13,394		14,157		11,929			4,830			47,278			32,916			14,362
Benefits and expenses:
Policy acquisition costs and other insurance expenses		3,228			3,602			3,440		1,081		2,012			1,216			10,270			3,486			6,784
Other operating expenses		2,008			1,636			1,947		4,555		1,635			373			5,591			5,080			511

Total benefits and expenses		5,236			5,238			5,387		5,636		3,647			1,589			15,861			8,566			7,295
Operating income before income taxes		11,523			11,887			8,007		8,521		8,282			3,241			31,417			24,350			7,067

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		11,523			11,887			8,007		8,521		8,282			3,241			31,417			24,350			7,067
Investment and derivative gains (losses) - non-operating		(321	)		(100	)		34		112		(146	)		(175	)		(387	)		(253	)		(134	)

Income before income taxes	$	11,202		$	11,787		$	8,041	$	8,633	$	8,136		$	3,066		$	31,030		$	24,097		$	6,933

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Page 9

Reinsurance Group of America, Incorporated

Canadian Segment Pre-tax Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Revenues:
Net premiums	$	236,067		$	239,633		$	243,271		$	248,443		$	227,944		$	8,123		$	718,971		$	667,321		$	51,650
Investment income, net of related expenses		49,871			50,450			49,174			45,928			46,016			3,855			149,495			140,081			9,414
Investment related gains (losses), net		866			970			1,005			1,041			1,003			(137	)		2,841			3,321			(480	)
Other revenue		(196	)		302			208			41			3,288			(3,484	)		314			6,463			(6,149	)

Total revenues		286,608			291,355			293,658			295,453			278,251			8,357			871,621			817,186			54,435
Benefits and expenses:
Claims and other policy benefits		185,011			196,584			189,698			169,959			191,275			(6,264	)		571,293			536,757			34,536
Interest credited		19			6			12			6			22			(3	)		37			22			15
Policy acquisition costs and other insurance expenses		55,553			52,134			60,832			58,786			49,790			5,763			168,519			147,551			20,968
Other operating expenses		10,052			10,942			10,239			12,664			9,022			1,030			31,233			27,548			3,685

Total benefits and expenses		250,635			259,666			260,781			241,415			250,109			526			771,082			711,878			59,204
Operating income before income taxes		35,973			31,689			32,877			54,038			28,142			7,831			100,539			105,308			(4,769	)

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		35,973			31,689			32,877			54,038			28,142			7,831			100,539			105,308			(4,769	)
Investment and derivative gains (losses) - non-operating		5,606			2,778			2,050			2,817			8,630			(3,024	)		10,434			20,480			(10,046	)
Funds withheld gains (losses) - investment income		290			1,192			1,381			2,503			748			(458	)		2,863			1,825			1,038

Income before income taxes	$	41,869		$	35,659		$	36,308		$	59,358		$	37,520		$	4,349		$	113,836		$	127,613		$	(13,777	)

Loss and Expense Ratios:
Loss ratios (creditor business)		30.5	%		33.0	%		32.7	%		6.1	%		40.4	%		-9.9	%		32.1	%		37.7	%		-5.6	%
Loss ratios (excluding creditor business)		92.3	%		94.5	%		93.2	%		87.5	%		96.8	%		-4.5	%		93.3	%		92.1	%		1.2	%
Claims and other policy benefits / (net premiums + investment income)		64.7	%		67.8	%		64.9	%		57.7	%		69.8	%		-5.1	%		65.8	%		66.5	%		-0.7	%
Policy acquisition costs and other insurance expenses (creditor business)		61.3	%		59.0	%		61.0	%		60.0	%		58.2	%		3.1	%		60.6	%		58.0	%		2.6	%
Policy acquisition costs and other insurance expenses (excluding creditor business)		12.5	%		12.3	%		12.9	%		12.5	%		11.1	%		1.4	%		12.6	%		12.4	%		0.2	%
Other operating expenses		4.3	%		4.6	%		4.2	%		5.1	%		4.0	%		0.3	%		4.3	%		4.1	%		0.2	%
Foreign currency effect *(1)*:
Net premiums	$	(10,348	)	$	(3,144	)	$	(1,562	)	$	7,617		$	(3,413	)	$	(6,935	)	$	(15,054	)	$	(16,579	)	$	1,525
Operating income before income taxes	$	(1,819	)	$	(434	)	$	(521	)	$	1,785		$	919		$	(2,738	)	$	(2,774	)	$	(2,540	)	$	(234	)
Creditor reinsurance net premiums	$	53,021		$	48,618		$	61,114		$	58,340		$	52,038		$	983		$	162,753		$	142,731		$	20,022

Note: The loss ratios on creditor reinsurance business are normally lower than traditional reinsurance, while allowances are normally higher as a percentage of premiums.

(1)

Compared to comparable prior year period

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Page 10

Reinsurance Group of America, Incorporated

Europe & South Africa Segment Pre-tax Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Revenues:
Net premiums	$	329,705		$	319,375		$	323,908		$	402,515		$	303,101		$	26,604		$	972,988		$	905,947		$	67,041
Investment income, net of related expenses		13,708			14,457			12,224			11,560			11,437			2,271			40,389			34,016			6,373
Other revenue		14,033			4,608			1,287			1,386			1,576			12,457			19,928			5,293			14,635

Total revenues		357,446			338,440			337,419			415,461			316,114			41,332			1,033,305			945,256			88,049
Benefits and expenses:
Claims and other policy benefits		276,309			283,230			283,915			357,190			251,553			24,756			843,454			777,029			66,425
Policy acquisition costs and other insurance expenses		13,596			11,753			11,734			7,937			14,697			(1,101	)		37,083			43,299			(6,216	)
Other operating expenses		27,338			28,109			26,195			36,075			24,809			2,529			81,642			76,814			4,828

Total benefits and expenses		317,243			323,092			321,844			401,202			291,059			26,184			962,179			897,142			65,037
Operating income before income taxes		40,203			15,348			15,575			14,259			25,055			15,148			71,126			48,114			23,012

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		40,203			15,348			15,575			14,259			25,055			15,148			71,126			48,114			23,012
Investment and derivative gains (losses) - non-operating		1,350			470			1,810			1,325			7,111			(5,761	)		3,630			10,249			(6,619	)

Income before income taxes	$	41,553		$	15,818		$	17,385		$	15,584		$	32,166		$	9,387		$	74,756		$	58,363		$	16,393

Loss and Expense Ratios:
Claims and other policy benefits		83.8	%		88.7	%		87.7	%		88.7	%		83.0	%		0.8	%		86.7	%		85.8	%		0.9	%
Policy acquisition costs and other insurance expenses		4.1	%		3.7	%		3.6	%		2.0	%		4.8	%		-0.7	%		3.8	%		4.8	%		-1.0	%
Other operating expenses		8.3	%		8.8	%		8.1	%		9.0	%		8.2	%		0.1	%		8.4	%		8.5	%		-0.1	%
Foreign currency effect *(1)*:
Net premiums	$	(8,301	)	$	(9,962	)	$	(9,915	)	$	(129	)	$	(17,157	)	$	8,856		$	(28,178	)	$	(51,492	)	$	23,314
Operating income before income taxes	$	(423	)	$	(959	)	$	(642	)	$	(305	)	$	(2,989	)	$	2,566		$	(2,024	)	$	(5,419	)	$	3,395
Critical illness net premiums	$	62,518		$	63,918		$	63,639		$	66,211		$	58,793		$	3,725		$	190,075		$	182,342		$	7,733

(1)

Compared to comparable prior year period

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Page 11

Reinsurance Group of America, Incorporated

Asia Pacific Segment Pre-tax Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Revenues:
Net premiums	$	343,078		$	340,466		$	363,604		$	362,620		$	330,415		$	12,663		$	1,047,148		$	987,710		$	59,438
Investment income, net of related expenses		22,359			21,402			22,081			20,782			19,316			3,043			65,842			62,605			3,237
Investment related gains (losses), net		576			570			382			1,460			468			108			1,528			(505	)		2,033
Other revenue		6,409			10,461			7,749			11,269			10,052			(3,643	)		24,619			41,569			(16,950	)

Total revenues		372,422			372,899			393,816			396,131			360,251			12,171			1,139,137			1,091,379			47,758
Benefits and expenses:
Claims and other policy benefits		282,904			567,050			281,945			294,564			299,782			(16,878	)		1,131,899			785,135			346,764
Interest Credited		270			274			311			653			204			66			855			658			197
Policy acquisition costs and other insurance expenses		47,303			60,163			62,063			58,419			52,779			(5,476	)		169,529			193,622			(24,093	)
Other operating expenses		29,340			31,134			30,132			34,040			28,234			1,106			90,606			83,076			7,530

Total benefits and expenses		359,817			658,621			374,451			387,676			380,999			(21,182	)		1,392,889			1,062,491			330,398
Operating income (loss) before income taxes		12,605			(285,722	)		19,365			8,455			(20,748	)		33,353			(253,752	)		28,888			(282,640	)

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		12,605			(285,722	)		19,365			8,455			(20,748	)		33,353			(253,752	)		28,888			(282,640	)
Investment and derivative gains (losses) - non-operating		4,507			(4,726	)		(4,847	)		(2,520	)		4,265			242			(5,066	)		10,555			(15,621	)

Income (loss) before income taxes	$	17,112		$	(290,448	)	$	14,518		$	5,935		$	(16,483	)	$	33,595		$	(258,818	)	$	39,443		$	(298,261	)

Loss and Expense Ratios:
Claims and other policy benefits		82.5	%		166.6	%		77.5	%		81.2	%		90.7	%		-8.2	%		108.1	%		79.5	%		28.6	%
Policy acquisition costs and other insurance expenses		13.8	%		17.7	%		17.1	%		16.1	%		16.0	%		-2.2	%		16.2	%		19.6	%		-3.4	%
Other operating expenses		8.6	%		9.1	%		8.3	%		9.4	%		8.5	%		0.1	%		8.7	%		8.4	%		0.3	%
Foreign currency effect *(1)*:
Net premiums	$	(33,049	)	$	(8,067	)	$	(8,122	)	$	6,609		$	(5,401	)	$	(27,648	)	$	(49,238	)	$	(8,643	)	$	(40,595	)
Operating income before income taxes	$	(2,187	)	$	15,112		$	(1,775	)	$	(508	)	$	(1,280	)	$	(907	)	$	11,150		$	(365	)	$	11,515
Critical illness net premiums	$	74,109		$	51,249		$	54,508		$	68,963		$	68,356		$	5,753		$	179,866		$	155,389		$	24,477

(1)

Compared to comparable prior year period

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Reinsurance Group of America, Incorporated

Corporate and Other Segment Pre-tax Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Revenues:
Net premiums	$	1,004		$	261		$	(977	)	$	3,502		$	1,896		$	(892	)	$	288		$	5,663		$	(5,375	)
Investment income, net of related expenses		19,024			21,818			28,016			23,273			22,927			(3,903	)		68,858			59,545			9,313
Investment related gains (losses), net		237			235			254			215			227			10			726			600			126
Other revenue		5,719			251			3,950			2,649			4,280			1,439			9,920			12,666			(2,746	)

Total revenues		25,984			22,565			31,243			29,639			29,330			(3,346	)		79,792			78,474			1,318
Benefits and expenses:
Claims and other policy benefits		30			(112	)		84			(11	)		(77	)		107			2			(65	)		67
Interest credited		186			212			225			52			—			186			623			—			623
Policy acquisition costs and other insurance expenses		(20,354	)		(19,073	)		(15,343	)		(10,759	)		(14,194	)		(6,160	)		(54,770	)		(41,406	)		(13,364	)
Other operating expenses		15,339			16,483			23,354			15,133			16,806			(1,467	)		55,176			53,171			2,005
Interest expense		30,831			29,918			28,486			28,917			29,749			1,082			89,235			76,431			12,804
Collateral finance facility expense		2,698			2,650			2,538			3,357			2,995			(297	)		7,886			8,840			(954	)

Total benefits and expenses		28,730			30,078			39,344			36,689			35,279			(6,549	)		98,152			96,971			1,181
Operating income (loss) before income taxes		(2,746	)		(7,513	)		(8,101	)		(7,050	)		(5,949	)		3,203			(18,360	)		(18,497	)		137

Operating to U.S. GAAP Reconciliation:
Operating income (loss) before income taxes		(2,746	)		(7,513	)		(8,101	)		(7,050	)		(5,949	)		3,203			(18,360	)		(18,497	)		137
Investment and derivative gains (losses) - non-operating		(1,960	)		1,283			(2,198	)		861			(2,453	)		493			(2,875	)		1,203			(4,078	)
Gain on repurchase of collateral finance facility securities		—			—			46,506			—			—			—			46,506			—			46,506

Income (loss) before income taxes	$	(4,706	)	$	(6,230	)	$	36,207		$	(6,189	)	$	(8,402	)	$	3,696		$	25,271		$	(17,294	)	$	42,565

Foreign currency effect *(1)*:
Net premiums	$	—		$	—		$	—		$	8		$	(1	)	$	1		$	—		$	18		$	(18	)
Operating income before income taxes	$	(491	)	$	(95	)	$	140		$	827		$	(815	)	$	324		$	(446	)	$	301		$	(747	)

(1)

Compared to comparable prior year period

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Reinsurance Group of America, Incorporated

Summary of Pre-tax Segment Operating Income (Loss)


	Three Months Ended															Current Qtr		Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY		Sept. 30,			Sept. 30,
(USD thousands)	2013			2013			2013			2012			2012			Quarter		2013			2012			Change
U.S. Traditional	$	90,078		$	85,747		$	69,548		$	139,609		$	72,483		$	17,595	$	245,373		$	230,956		$	14,417
U.S. Asset Intensive		38,046			40,230			45,596			40,838			27,119			10,927		123,872			68,243			55,629
U.S. Financial Reinsurance		11,523			11,887			8,007			8,521			8,282			3,241		31,417			24,350			7,067

Total U.S. Segment		139,647			137,864			123,151			188,968			107,884			31,763		400,662			323,549			77,113
Canadian Segment		35,973			31,689			32,877			54,038			28,142			7,831		100,539			105,308			(4,769	)
Europe & South Africa Segment		40,203			15,348			15,575			14,259			25,055			15,148		71,126			48,114			23,012
Asia Pacific Segment		12,605			(285,722	)		19,365			8,455			(20,748	)		33,353		(253,752	)		28,888			(282,640	)
Corporate and Other		(2,746	)		(7,513	)		(8,101	)		(7,050	)		(5,949	)		3,203		(18,360	)		(18,497	)		137

Consolidated	$	225,682		$	(108,334	)	$	182,867		$	258,670		$	134,384		$	91,298	$	300,215		$	487,362		$	(187,147	)

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Reinsurance Group of America, Incorporated

Investments

(USD thousands)


Cash and Invested Assets
	Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,
	2013		2013		2013		2012		2012
Fixed maturity securities, available-for-sale	$	21,289,108	$	21,284,216	$	22,401,659	$	22,291,614	$	21,658,414
Mortgage loans on real estate		2,488,582		2,377,246		2,325,191		2,300,587		2,256,881
Policy loans		1,244,878		1,245,252		1,245,812		1,278,175		1,243,498
Funds withheld at interest		5,739,872		5,777,395		5,698,594		5,594,182		5,608,640
Short-term investments		44,192		38,601		180,707		288,082		90,789
Other invested assets		1,116,391		1,035,809		1,129,651		1,159,543		1,236,616
Cash and cash equivalents		1,423,235		973,619		1,001,841		1,259,892		1,603,730

Total cash and invested assets	$	33,346,258	$	32,732,138	$	33,983,455	$	34,172,075	$	33,698,568

Investment Income and Yield Summary


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Average invested assets at amortized cost (1)	$	18,263,880		$	18,112,841		$	17,992,152		$	17,510,541		$	17,030,794		$	1,233,086		$	17,910,062		$	16,432,165		$	1,477,897
Net investment income (1)	$	213,318		$	212,047		$	213,322		$	207,567		$	208,346		$	4,972		$	638,687		$	616,420		$	22,267
Annualized investment yield (ratio of net investment income to average invested assets) (1)		4.75	%		4.77	%		4.83	%		4.83	%		4.98	%		-0.23	%		4.78	%		5.03	%		-0.25	%

(1)

Excludes funds withheld and spread related businesses (e.g. coinsurance of annuities).

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Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Amortized cost, gross unrealized gains and losses, and estimated fair values of fixed maturity and equity securities

(Excludes Funds Withheld Portfolios)


September 30, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total			Other-than- temporary Impairment in AOCI
Available-for-sale:
Corporate securities	$	11,505,673	$	637,691	$	208,802	$	11,934,562		56.1	%	$	—
Canadian and Canadian provincial governments		2,719,147		785,840		13,831		3,491,156		16.4	%		—
Residential mortgage-backed securities		922,581		44,948		15,691		951,838		4.5	%		(300	)
Asset-backed securities		883,495		19,264		17,481		885,278		4.1	%		(2,259	)
Commercial mortgage-backed securities		1,371,473		102,207		20,566		1,453,114		6.8	%		(1,609	)
U.S. government and agencies		413,254		20,412		2,819		430,847		2.0	%		—
State and political subdivisions		288,757		22,626		13,654		297,729		1.4	%		—
Other foreign government, supranational, and foreign government-sponsored enterprises		1,812,970		50,246		18,632		1,844,584		8.7	%		—

Total fixed maturity securities	$	19,917,350	$	1,683,234	$	311,476	$	21,289,108		100.0	%	$	(4,168	)

Non-redeemable preferred stock		80,985		5,187		3,333		82,839		56.4	%
Other equity securities		68,123		—		4,052		64,071		43.6	%

Total equity securities	$	149,108	$	5,187	$	7,385	$	146,910		100.0	%


December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total			Other-than- temporary Impairment in AOCI
Available-for-sale:
Corporate securities	$	11,333,431	$	1,085,973	$	39,333	$	12,380,071		55.5	%	$	—
Canadian and Canadian provincial governments		2,676,777		1,372,731		174		4,049,334		18.2	%		—
Residential mortgage-backed securities		969,267		76,520		3,723		1,042,064		4.7	%		(241	)
Asset-backed securities		700,455		19,898		28,798		691,555		3.1	%		(2,259	)
Commercial mortgage-backed securities		1,608,376		142,369		51,842		1,698,903		7.6	%		(6,125	)
U.S. government and agencies		231,256		33,958		24		265,190		1.2	%		—
State and political subdivisions		270,086		38,058		5,646		302,498		1.4	%		—
Other foreign government, supranational, and foreign government-sponsored enterprises		1,769,784		94,929		2,714		1,861,999		8.3	%		—

Total fixed maturity securities	$	19,559,432	$	2,864,436	$	132,254	$	22,291,614		100.0	%	$	(8,625	)

Non-redeemable preferred stock		68,469		6,542		170		74,841		33.6	%
Other equity securities		148,577		416		1,134		147,859		66.4	%

Total equity securities	$	217,046	$	6,958	$	1,304	$	222,700		100.0	%

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Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Corporate Securities by Sector (Fixed Maturities and Equities)

(Excludes Funds Withheld Portfolios)


	September 30, 2013								December 31, 2012
	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	$	2,212,730	$	2,285,114		18.9	%	A	$	2,114,425	$	2,260,382		17.9	%	A
Brokerage		143,301		149,639		1.2	%	A-		120,139		131,664		1.0	%	A-
Finance Comp.		143,566		149,567		1.2	%	A		181,430		193,892		1.5	%	A
Insurance		655,273		687,103		5.7	%	A-		592,109		654,647		5.2	%	A-
REITs		459,085		476,296		3.9	%	BBB+		485,469		523,370		4.2	%	BBB
Other Finance		249,636		257,389		2.1	%	BBB+		342,929		358,897		2.9	%	BBB+

Total Financial Institutions	$	3,863,591	$	4,005,108		33.0	%		$	3,836,501	$	4,122,852		32.7	%
Industrials
Basic		826,348		832,010		6.9	%	BBB		803,353		861,547		6.8	%	BBB
Capital Goods		590,926		615,835		5.1	%	BBB		637,479		692,218		5.5	%	BBB
Communications		1,168,651		1,207,964		10.0	%	BBB+		1,044,374		1,169,000		9.3	%	BBB+
Consumer Cyclical		698,435		719,337		6.0	%	BBB		727,324		786,726		6.2	%	BBB+
Consumer Noncyclical		1,056,543		1,107,888		9.2	%	BBB+		969,589		1,084,295		8.6	%	BBB+
Energy		650,934		683,656		5.7	%	BBB+		728,354		807,087		6.4	%	BBB+
Technology		440,186		443,963		3.7	%	BBB		475,697		502,123		4.0	%	BBB
Transportation		375,151		390,488		3.2	%	A-		378,808		415,283		3.3	%	BBB+
Other Industrial		119,109		124,655		1.0	%	BBB+		116,989		125,567		1.0	%	BBB

Total Industrials	$	5,926,283	$	6,125,796		50.8	%		$	5,881,967	$	6,443,846		51.1	%
Utilities
Electric		1,103,394		1,153,785		9.6	%	BBB+		1,081,451		1,196,527		9.5	%	BBB+
Natural Gas		671,512		701,053		5.8	%	BBB		656,357		733,422		5.8	%	BBB
Other Utility		68,004		74,024		0.6	%	BBB+		61,850		72,662		0.6	%	A-

Total Utilities	$	1,842,910	$	1,928,862		16.0	%		$	1,799,658	$	2,002,611		15.9	%
Other Sectors		21,997		21,706		0.2	%	AA		32,351		33,462		0.3	%	AA

Total	$	11,654,781	$	12,081,472		100.0	%	BBB+	$	11,550,477	$	12,602,771		100.0	%	BBB+

(1)

The Average Credit Rating designations are based on the weighted average ratings from nationally recognized rating organizations, primarily those assigned by S&P. In instances where a S&P rating is not available, the Company will reference the rating provided by Moody’s, and in the absence of both the Company will assign equivalent ratings based on information from the NAIC.

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Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Ratings of Fixed Maturity Securities

(Excludes Funds Withheld Portfolios)


		September 30, 2013							June 30, 2013							March 31, 2013							December 31, 2012							September 30, 2012
NAIC Designation	Rating Agency Designation (1)	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	$	1,693,789	$	1,746,576		8.2	%	$	1,739,749	$	1,802,645		8.5	%	$	1,784,693	$	1,891,675		8.4	%	$	1,857,190	$	1,980,164		8.9	%	$	2,222,818	$	2,364,081		10.9	%
1	AA		5,756,355		6,438,199		30.2	%		5,457,184		6,223,632		29.2	%		5,408,086		6,565,513		29.3	%		5,286,082		6,541,670		29.4	%		5,265,613		6,572,815		30.4	%
1	A		5,010,236		5,458,720		25.7	%		5,110,947		5,617,495		26.4	%		5,140,174		5,962,302		26.6	%		4,915,882		5,778,737		25.9	%		4,666,113		5,525,476		25.5	%
2	BBB		6,117,081		6,298,628		29.6	%		5,997,232		6,189,030		29.1	%		6,058,221		6,524,007		29.1	%		6,186,536		6,692,929		30.0	%		5,716,281		6,185,558		28.6	%
3	BB		652,300		655,000		3.1	%		723,316		728,014		3.4	%		731,136		757,948		3.4	%		694,349		712,712		3.2	%		583,622		608,439		2.8	%
4	B		499,580		512,325		2.4	%		519,789		530,990		2.5	%		497,504		507,879		2.3	%		444,996		444,035		2.0	%		322,040		306,871		1.4	%
5	CCC and lower		87,364		86,644		0.4	%		90,970		84,157		0.4	%		98,290		79,039		0.4	%		118,738		95,906		0.4	%		92,149		68,193		0.3	%
6	In or near default		100,645		93,016		0.4	%		118,134		108,253		0.5	%		120,845		113,296		0.5	%		55,659		45,461		0.2	%		36,647		26,981		0.1	%

	Total	$	19,917,350	$	21,289,108		100.0	%	$	19,757,321	$	21,284,216		100.0	%	$	19,838,949	$	22,401,659		100.0	%	$	19,559,432	$	22,291,614		100.0	%	$	18,905,283	$	21,658,414		100.0	%

(1)

The Rating Agency Designation includes all “+” or “-” at that rating level (e. g. ‘BBB’ includes ‘BBB+’, ‘BBB’, and ‘BBB-’).

Structured Fixed Maturity Securities


	September 30, 2013				June 30, 2013				March 31, 2013				December 31, 2012				September 30, 2012
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Residential mortgage-backed securities:
Agency	$	517,517	$	541,870	$	546,603	$	579,317	$	520,081	$	575,274	$	497,918	$	555,535	$	511,887	$	571,894
Non-agency		405,064		409,968		468,552		475,651		485,151		501,496		471,349		486,529		468,768		483,914

Total residential mortgage-backed securities		922,581		951,838		1,015,155		1,054,968		1,005,232		1,076,770		969,267		1,042,064		980,655		1,055,808
Commercial mortgage-backed securities		1,371,473		1,453,114		1,564,924		1,638,632		1,596,659		1,698,144		1,608,376		1,698,903		1,663,493		1,740,391
Asset-backed securities		883,495		885,278		789,849		790,310		752,280		756,544		700,455		691,555		588,851		572,700

Total	$	3,177,549	$	3,290,230	$	3,369,928	$	3,483,910	$	3,354,171	$	3,531,458	$	3,278,098	$	3,432,522	$	3,232,999	$	3,368,899

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Reinsurance Group of America, Incorporated

Investments

(USD thousands)

CMBS Exposure

(Includes Funds Withheld Portfolios)


	September 30, 2013
	AAA				AA				A
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2006 & Prior	$	264,408	$	283,885	$	173,645	$	184,540	$	139,814	$	148,634
2007		152,169		164,172		35,966		39,206		56,634		62,428
2008		—		—		53,930		62,831		18,097		19,583
2009		1,657		1,717		7,164		7,798		—		—
2010		28,002		29,332		45,744		48,286		19,215		19,961
2011		15,744		16,049		20,869		22,445		35,345		35,715
2012		39,141		37,763		50,331		49,327		27,942		27,076
2013		47,199		45,114		68,250		68,130		2,494		2,209

Total	$	548,320	$	578,032	$	455,899	$	482,563	$	299,541	$	315,606


	BBB				Below Investment Grade				Total
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2006 & Prior	$	127,685	$	131,482	$	79,225	$	83,315	$	784,777	$	831,856
2007		94,022		106,116		63,878		62,536		402,669		434,458
2008		—		—		3,116		5,013		75,143		87,427
2009		7,565		10,904		—		—		16,386		20,419
2010		—		—		—		—		92,961		97,579
2011		33,097		31,437		—		—		105,055		105,646
2012		43,416		40,504		—		—		160,830		154,670
2013		—		—		—		—		117,943		115,453

Total	$	305,785	$	320,443	$	146,219	$	150,864	$	1,755,764	$	1,847,508

NOTE: Totals include directly held investments with amortized cost of $1,371.5 million and fair value of $1,453.1 million as well as investments in funds withheld with amortized cost of $384.3 million and fair value of $394.4 million.


	December 31, 2012
	AAA				AA				A
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2006 & Prior	$	313,032	$	346,462	$	189,203	$	208,051	$	185,038	$	196,800
2007		182,456		201,131		32,810		37,542		69,266		77,657
2008		7,674		7,672		53,510		67,624		14,387		17,098
2009		1,655		1,820		17,399		19,483		3,463		5,599
2010		27,984		29,956		47,085		53,027		13,273		14,405
2011		15,748		16,411		16,069		18,184		40,546		42,726
2012		28,324		29,080		36,340		36,925		58,376		59,595

Total	$	576,873	$	632,532	$	392,416	$	440,836	$	384,349	$	413,880


	BBB				Below Investment Grade				Total
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2006 & Prior	$	194,452	$	198,490	$	109,969	$	103,365	$	991,694	$	1,053,168
2007		93,414		108,902		115,028		91,505		492,974		516,737
2008		—		—		22,416		17,386		97,987		109,780
2009		3,880		5,547		—		—		26,397		32,449
2010		—		—		—		—		88,342		97,388
2011		33,242		33,757		—		—		105,605		111,078
2012		43,346		43,811		—		—		166,386		169,411

Total	$	368,334	$	390,507	$	247,413	$	212,256	$	1,969,385	$	2,090,011

NOTE: Totals include directly held investments with amortized cost of $1,608.4 million and fair value of $1,698.9 million as well as investments in funds withheld with amortized cost of $361.0 million and fair value of $391.1 million.

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Page 19

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Gross Unrealized Losses Aging

Fixed Maturity Securities


	September 30, 2013					June 30, 2013					March 31, 2013					December 31, 2012					September 30, 2012
	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%	$	279,211		87.6	%	$	261,628		84.2	%	$	64,399		52.6	%	$	53,648		40.2	%	$	55,097		35.9	%
20% or more for less than six months		6,325		2.0	%		5,629		1.8	%		—		0.0	%		734		0.5	%		509		0.3	%
20% or more for six months or greater		25,940		8.1	%		37,338		12.0	%		56,296		45.9	%		77,872		58.3	%		97,260		63.3	%

Total	$	311,476		97.7	%	$	304,595		98.0	%	$	120,695		98.5	%	$	132,254		99.0	%	$	152,866		99.5	%

Equity Securities


	September 30, 2013					June 30, 2013					March 31, 2013					December 31, 2012					September 30, 2012
	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%	$	7,383		2.3	%	$	6,137		2.0	%	$	1,836		1.5	%	$	1,303		1.0	%	$	833		0.5	%
20% or more for less than six months		—		0.0	%		—		0.0	%		—		0.0	%		—		0.0	%		—		0.0	%
20% or more for six months or greater		2		0.0	%		2		0.0	%		1		0.0	%		1		0.0	%		1		0.0	%

Total	$	7,385		2.3	%	$	6,139		2.0	%	$	1,837		1.5	%	$	1,304		1.0	%	$	834		0.5	%

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Page 20

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Fixed Maturities and Equity Securities Below Amortized Cost

(Excludes Funds Withheld Portfolios)


	As of September 30, 2013
	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 securities	$	3,158,429	$	168,659	$	130,027	$	20,031	$	3,288,456	$	188,690
Canadian and Canadian provincial governments		140,648		12,530		6,898		1,301		147,546		13,831
Residential mortgage-backed securities		207,602		11,909		18,997		2,257		226,599		14,166
Asset-backed securities		270,863		4,602		53,786		5,571		324,649		10,173
Commercial mortgage-backed securities		188,153		6,565		22,435		5,968		210,588		12,533
U.S. government and agencies		72,032		2,658		3,958		161		75,990		2,819
State and political subdivisions		95,935		8,776		14,981		4,878		110,916		13,654
Other foreign government, supranational, and foreign government-sponsored enterprises		644,427		17,479		10,589		1,153		655,016		18,632

Investment grade securities		4,778,089		233,178		261,671		41,320		5,039,760		274,498

Non-investment grade securities:
Corporate securities		311,613		12,155		42,024		7,957		353,637		20,112
Residential mortgage-backed securities		53,633		1,068		2,254		457		55,887		1,525
Asset-backed securities		29,043		467		30,901		6,841		59,944		7,308
Commercial mortgage-backed securities		971		25		10,905		8,008		11,876		8,033

Non-investment grade securities		395,260		13,715		86,084		23,263		481,344		36,978

Total fixed maturity securities	$	5,173,349	$	246,893	$	347,755	$	64,583	$	5,521,104	$	311,476

Non-redeemable preferred stock		42,338		3,331		1		2		42,339		3,333
Other equity securities		47,151		2,619		17,028		1,433		64,179		4,052

Total Equity securities	$	89,489	$	5,950	$	17,029	$	1,435	$	106,518	$	7,385


	As of December 31, 2012
	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 securities	$	786,203	$	13,276	$	108,187	$	17,386	$	894,390	$	30,662
Canadian and Canadian provincial governments		12,349		174		—		—		12,349		174
Residential mortgage-backed securities		22,288		97		19,394		3,199		41,682		3,296
Asset-backed securities		59,119		449		96,179		9,508		155,298		9,957
Commercial mortgage-backed securities		89,507		797		29,181		7,974		118,688		8,771
U.S. government and agencies		7,272		24		—		—		7,272		24
State and political subdivisions		20,602		1,514		11,736		4,132		32,338		5,646
Other foreign government, supranational, and foreign government-sponsored enterprises		244,817		1,953		7,435		761		252,252		2,714

Investment grade securities		1,242,157		18,284		272,112		42,960		1,514,269		61,244

Non-investment grade securities:
Corporate securities		181,168		3,170		39,123		5,501		220,291		8,671
Residential mortgage-backed securities		15,199		80		2,633		347		17,832		427
Asset-backed securities		3,421		26		31,938		18,815		35,359		18,841
Commercial mortgage-backed securities		3,317		764		68,405		42,307		71,722		43,071

Non-investment grade securities		203,105		4,040		142,099		66,970		345,204		71,010

Total fixed maturity securities	$	1,445,262	$	22,324	$	414,211	$	109,930	$	1,859,473	$	132,254

Non-redeemable preferred stock		5,577		52		5,679		118		11,256		170
Other equity securities		85,374		1,134		—		—		85,374		1,134

Total Equity securities	$	90,951	$	1,186	$	5,679	$	118	$	96,630	$	1,304

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Page 21

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Consolidated Investment Related Gains and Losses


	Three Months Ended															Current Qtr			Year-to-Date
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			vs. PY			Sept. 30,			Sept. 30,
	2013			2013			2013			2012			2012			Quarter			2013			2012			Change
Fixed Maturity and Equity Securities:
Other-than-temporary impairment losses on fixed maturities	$	(391	)	$	(9,803	)	$	(202	)	$	(4,346	)	$	(1,996	)	$	1,605		$	(10,396	)	$	(11,562	)	$	1,166
Portion of loss recognized in accumulated other comprehensive income (before taxes)		59			(306	)		—			—			(559	)		618			(247	)		(7,618	)		7,371

Net other-than-temporary impairment losses on fixed maturities recognized in earnings		(332	)		(10,109	)		(202	)		(4,346	)		(2,555	)		2,223			(10,643	)		(19,180	)		8,537
Impairment losses on equity securities		—			—			—			—			—			—			—			(3,025	)		3,025
Gain on investment activity		21,560			26,845			21,680			43,190			53,173			(31,613	)		70,085			102,078			(31,993	)
Loss on investment activity		(30,434	)		(6,760	)		(11,212	)		(4,384	)		(6,668	)		(23,766	)		(48,406	)		(23,090	)		(25,316	)

Net gain/(loss) on fixed maturity and equity securities		(9,206	)		9,976			10,266			34,460			43,950			(53,156	)		11,036			56,783			(45,747	)
Other impairment losses and change in mortgage loan provision		233			125			(1,626	)		(2,220	)		(10,301	)		10,534			(1,268	)		(14,382	)		13,114
Other non-derivative gain/(loss), net		4,594			6,962			4,589			4,868			5,563			(969	)		16,145			17,832			(1,687	)
Free-standing Derivatives:
Credit Default Swaps		10,805			2,428			3,904			3,523			7,819			2,986			17,137			14,838			2,299
Interest Rate Swaps - non-hedged		(8,221	)		(38,414	)		(22,265	)		(9,866	)		(1,437	)		(6,784	)		(68,900	)		24,553			(93,453	)
Interest Rate Swaps - hedged		(3	)		31			(17	)		(40	)		(4	)		1			11			(1	)		12
Futures		(1,139	)		714			(6,881	)		(9,932	)		(3,977	)		2,838			(7,306	)		(10,312	)		3,006
CPI Swaps		(39	)		(1,117	)		(871	)		1,543			422			(461	)		(2,027	)		(1,811	)		(216	)
Equity options		(24,112	)		(5,049	)		(30,623	)		(11,146	)		(23,916	)		(196	)		(59,784	)		(58,532	)		(1,252	)
Currency Forwards		629			(2,958	)		(5,659	)		(5,070	)		519			110			(7,988	)		(574	)		(7,414	)
Interest Rate Options		(2,375	)		(7,980	)		1,982			—			—			(2,375	)		(8,373	)		—			(8,373	)

Total free-standing derivatives		(24,455	)		(52,345	)		(60,430	)		(30,988	)		(20,574	)		(3,881	)		(137,230	)		(31,839	)		(105,391	)
Embedded Derivatives:
Modified coinsurance and funds withheld treaties		(67,460	)		47,716			90,258			74,054			54,836			(122,296	)		70,514			40,955			29,559
GMXB		19,829			35,809			51,314			30,588			2,579			17,250			106,952			74,025			32,927

Total embedded derivatives		(47,631	)		83,525			141,572			104,642			57,415			(105,046	)		177,466			114,980			62,486
Net gain/(loss) on total derivatives		(72,086	)		31,180			81,142			73,654			36,841			(108,927	)		40,236			83,141			(42,905	)

Total investment related gains / (losses), net	$	(76,465	)	$	48,243		$	94,371		$	110,762		$	76,053		$	(152,518	)	$	66,149		$	143,374		$	(77,225	)

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Page 22

World Headquarters

Internet address

Contacts:

1370 Timberlake Manor Parkway

www.rgare.com

Jack B. Lay

Chesterfield, Missouri 63017

Senior Executive Vice President

and Chief Financial Officer

Phone: (636) 736-7000

e-mail: jlay@rgare.com

Jeff Hopson

Sr. Vice President

Investor Relations

Phone: (636) 300-6106

e-mail: jhopson@rgare.com