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

Attached files

file	filename
8-K - FORM 8-K - REINSURANCE GROUP OF AMERICA INC	c62719e8vk.htm
EX-99.1 - EX-99.1 - REINSURANCE GROUP OF AMERICA INC	c62719exv99w1.htm

Exhibit 99.2

Financial Supplement

Fourth Quarter 2010

(Unaudited)


World Headquarters	Internet address	Contacts:
1370 Timberlake Manor Parkway	www.rgare.com	Jack B. Lay
Chesterfield, Missouri 63017		Senior Executive Vice President
U.S.A.		and Chief Financial Officer
		Phone: (636) 736-7000
		e-mail: jlay@rgare.com

		John Hayden
		Sr. Vice President
		Controller & Investor Relations
		Phone: (636) 736-7243
		e-mail: jhayden@rgare.com

Current Ratings

Standard & Poor’s

A.M. Best

Moody’s

Financial Strength Ratings

RGA Reinsurance Company

AA-

A+

RGA Life Reinsurance Company of Canada

AA-

A+

RGA International Reinsurance Company Limited

AA-

RGA Global Reinsurance Company Limited

AA-

Senior Debt Ratings

Reinsurance Group of America, Incorporated

A-

Baa1

Our common stock is traded on the New York Stock Exchange under the symbol “RGA”.

Reinsurance Group of America, Incorporated
Financial Supplement
4th Quarter 2010
Table of Contents


	Page
Non-GAAP Disclosure		1
2011 Management Guidance		2
Consolidated
Financial Highlights		3
Consolidated Income Statement (incl. Operating Income Reconciliation)		4
Consolidated Operating Income Statement		5
Consolidated Balance Sheets		6
Segment Pre-tax Operating Income Summaries and Reconciliations to U.S. GAAP
U.S. Operations		7
Canada Operations		11
Europe & South Africa Operations		12
Asia Pacific Operations		13
Corporate and Other		14
Summary of Pre-tax Segment Operating Income		15
Investments
Cash and Invested Assets, Yield Summary		16
Amortized cost, Gross Unrealized Gains and Losses, Estimated Fair Values of Fixed Maturity and Equity Securities		17
Corporate Securities by Sector (Fixed Maturities and Equities)		18
Quality of Fixed Maturity Securities and Structured Fixed Maturity Securities		19
Subprime Mortgage Exposure (Including Funds Withheld Portfolios)		20
CMBS Exposure (Including Funds Withheld Portfolios)		21
Gross Unrealized Losses Aging		22
Fixed Maturity and Equity Securities Below Amortized Cost		23
Consolidated Gross Gains and Losses		24

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 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 and the cumulative effect of any accounting changes, which 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 shareholder’s equity excluding AOCI.

Page 1

Reinsurance Group of America, Incorporated
2011 Management Guidance

2011 Full-year Consolidated Operating Earnings per Diluted Share Guidance

Management projects 2011 operating income per diluted share to be within a range of $6.70 to $7.30. This guidance assumes an expected level of death claims, which are prone to normal short-term statistical fluctuations that can significantly affect results on quarterly and annual bases. Additionally, the guidance reflects approximately $0.20 per diluted share negative impact due to lower anticipated investment yields in 2011.

2011 Full-year Premium Growth Guidance


Segment	Original Currency Basis

U.S.		5% - 7%
Canada		5% - 7%
Asia Pacific		10% - 15%
Europe & South Africa		10% - 15%
Consolidated ($USD basis)		8% - 10%

2011 Full-year Projected Foreign Currency Premium


Foreign Currency	Millions

Australian Dollar		645 - 678
Canadian Dollar		839 - 882
Euro Dollar		105 - 111
British Pound Sterling		454 - 477
Japanese Yen		17,718 - 18,626
Korean Won		201,358 - 211,684
New Zealand Dollar		77 - 81
Taiwanese Dollar		2,102 - 2,209
South African Rand		494 - 520

Page 2

Reinsurance Group of America, Incorporated
Financial Highlights


	Three Months Ended or As of															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,		Dec. 31,
(USD thousands, except inforce & per share data)	2010			2010			2010			2010			2009			Quarter			2010		2009		Change
Net premiums	$	1,801,899		$	1,647,300		$	1,582,017		$	1,628,464		$	1,598,754		$	203,145		$	6,659,680	$	5,725,161	$	934,519
Net income — continuing operations		196,712			128,232			127,019			122,439			112,409			84,303			574,402		407,086		167,316
Operating income		161,419			127,703			121,899			93,008			125,833			35,586			504,029		438,321		65,708
Operating return on equity (ex AOCI) — annualized		16.0	%		13.2	%		13.0	%		10.2	%		14.3	%		1.7	%
Operating return on equity (ex AOCI) — trailing 12 months		13.2	%		12.7	%		12.7	%		13.5	%		13.1	%		0.1	%
Total assets		29,081,908			28,934,028			27,220,606			26,722,458			25,249,501			3,832,407

Assumed Life Reinsurance in Force (in billions)
U.S.	$	1,340.5		$	1,339.7		$	1,334.9		$	1,318.0		$	1,290.5		$	50.0
Canada		324.1			307.0			289.7			293.9			276.8			47.3
Europe & South Africa		467.6			446.5			401.8			395.6			408.9			58.7
Asia Pacific		408.1			385.8			340.9			355.6			348.9			59.2

Total Life Reinsurance in Force	$	2,540.3		$	2,479.0		$	2,367.3		$	2,363.1		$	2,325.1		$	215.2


Assumed New Business Production (in billions)
U.S.	$	26.2		$	30.3		$	45.1		$	40.6	(1)	$	42.5		$	(16.3	)	$	142.2	$	135.0	$	7.2
Canada		12.2			12.2			12.8			13.9			13.9			(1.7	)		51.1		43.9		7.2
Europe & South Africa		28.5			30.0			23.4			21.7			42.5			(14.0	)		103.6		121.1		(17.5	)
Asia Pacific		13.1			4.8			10.1			2.7			5.3			7.8			30.7		21.0		9.7

Total New Business Production	$	80.0		$	77.3		$	91.4		$	78.9		$	104.2		$	(24.2	)	$	327.6	$	321.0	$	6.6


Per Share and Shares Data
Basic earnings per share from continuing operations
Net income	$	2.68		$	1.75		$	1.74		$	1.68		$	1.54		$	1.14		$	7.85	$	5.59	$	2.26
Operating income	$	2.20		$	1.75		$	1.67		$	1.27		$	1.73		$	0.47		$	6.89	$	6.02	$	0.87
Diluted earnings per share from continuing operations
Net income	$	2.62		$	1.72		$	1.70		$	1.64		$	1.52		$	1.10		$	7.69	$	5.55	$	2.14
Operating income	$	2.15		$	1.72		$	1.63		$	1.25		$	1.70		$	0.45		$	6.75	$	5.98	$	0.77

Wgt. average common shares outstanding (basic)		73,277			73,162			73,141			73,046			72,895			382			73,157		72,790		367
Wgt. average common shares outstanding (diluted)		75,052			74,420			74,721			74,578			74,195			857			74,694		73,327		1,367

Common shares issued		73,364			73,364			73,364			73,364			73,364			—			73,364		73,364		—
Treasury shares		1			192			210			261			374			(373	)		1		374		(373	)
Common shares outstanding		73,363			73,172			73,154			73,103			72,990			373			73,363		72,990		373

Book value per share	$	68.71		$	68.30		$	60.73		$	56.98		$	52.99
Per share effect of accumulated other comprehensive income (AOCI)	$	12.37		$	14.48		$	8.59		$	6.49		$	4.10
Book value per share, excluding AOCI	$	56.34		$	53.82		$	52.14		$	50.49		$	48.89


(1)		Excludes Impact of Reliastar Acquisition

Page 3

Reinsurance Group of America, Incorporated
Consolidated GAAP Income Statement (incl. Operating Income Reconciliation)


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Revenues:
Net premiums	$	1,801,899		$	1,647,300		$	1,582,017		$	1,628,464		$	1,598,754		$	203,145		$	6,659,680		$	5,725,161		$	934,519
Investment income, net of related expenses		355,227			287,504			291,671			304,258			315,159			40,068			1,238,660			1,122,462			116,198
Investment related gains (losses), net
OTTI on fixed maturity securities		(16,097	)		(4,904	)		(3,489	)		(7,430	)		(40,552	)		24,455			(31,920	)		(128,834	)		96,914
OTTI on fixed maturity securities transferred to/from AOCI		(186	)		26			(139	)		2,344			3,910			(4,096	)		2,045			16,045			(14,000	)
Other investment related gains (losses), net		90,916			(11,902	)		26,620			136,271			22,505			68,411			241,905			146,937			94,968

Total investment related gains (losses), net		74,633			(16,780	)		22,992			131,185			(14,137	)		88,770			212,030			34,148			177,882
Other revenue		42,370			37,515			35,197			36,278			44,059			(1,689	)		151,360			185,051			(33,691	)

Total revenues		2,274,129			1,955,539			1,931,877			2,100,185			1,943,835			330,294			8,261,730			7,066,822			1,194,908

Benefits and expenses:
Claims and other policy benefits		1,470,845			1,393,891			1,307,239			1,375,180			1,370,175			100,670			5,547,155			4,819,426			727,729
Interest credited		79,103			94,776			79,169			56,934			128,779			(49,676	)		309,982			323,738			(13,756	)
Policy acquisition costs and other insurance expenses		319,444			157,058			237,149			366,302			179,333			140,111			1,079,953			958,326			121,627
Other operating expenses		102,216			85,409			83,147			91,199			80,532			21,684			361,971			294,779			67,192
Interest expense		25,215			25,191			25,141			15,449			22,985			2,230			90,996			69,940			21,056
Collateral finance facility expense		2,049			2,041			1,960			1,806			1,866			183			7,856			8,268			(412	)

Total benefits and expenses		1,998,872			1,758,366			1,733,805			1,906,870			1,783,670			215,202			7,397,913			6,474,477			923,436

Income before income taxes — continuing operations		275,257			197,173			198,072			193,315			160,165			115,092			863,817			592,345			271,472

Income tax expense		78,545			68,941			71,053			70,876			47,756			30,789			289,415			185,259			104,156

Income — continuing operations		196,712			128,232			127,019			122,439			112,409			84,303			574,402			407,086			167,316
Loss from discontinued operations		—			—			—			—			—			—			—			—			—

Net income	$	196,712		$	128,232		$	127,019		$	122,439		$	112,409		$	84,303		$	574,402		$	407,086		$	167,316


Pre-tax Operating Income Reconciliation:
Income before income taxes — continuing operations		275,257			197,173			198,072			193,315			160,165			115,092			863,817			592,345			271,472
Investment and derivative losses (gains) — non-operating (1)		91,401			(37,747	)		(130,697	)		371			65,676			25,725			(76,672	)		303,398			(380,070	)
Change in value of modified coinsurance and funds withheld embedded derivatives (1)		(43,780	)		38,653			(32,512	)		(122,635	)		(3,028	)		(40,752	)		(160,274	)		(78,394	)		(81,880	)
GMXB embedded derivatives (1)		(121,209	)		16,232			140,934			(7,171	)		(46,120	)		(75,089	)		28,786			(252,697	)		281,483
Funds withheld losses (gains) — investment income		(8,240	)		(6,494	)		(5,772	)		82			—			(8,240	)		(20,424	)		—			(20,424	)
Funds withheld losses (gains) — policy acq. costs		793			954			777			(81	)		—			793			2,443			—			2,443
EIA embedded derivatives — interest credited		(25,741	)		43,070			14,990			(22,422	)		12,563			(38,304	)		9,897			(13,581	)		23,478
EIA embedded derivatives — policy acq. costs		3,008			(4,189	)		(1,503	)		3,250			(801	)		3,809			566			2,442			(1,876	)
DAC offset, net		49,618			(50,519	)		6,041			103,769			(5,572	)		55,190			108,909			129,583			(20,674	)
Gain on debt repurchase		—			—			—			—			—			—			—			(38,875	)		38,875

Operating Income Before Income Taxes	$	221,107		$	197,133		$	190,330		$	148,478		$	182,883		$	38,224		$	757,048		$	644,221		$	112,827


After-tax Operating Income Reconciliation:
Income — continuing operations		196,712			128,232			127,019			122,439			112,409			84,303			574,402			407,086			167,316
Investment and derivative losses (gains) — non-operating (1)		59,317			(25,041	)		(85,039	)		(47	)		41,347			17,970			(50,810	)		194,725			(245,535	)
Change in value of modified coinsurance and funds withheld embedded derivatives (1)		(28,457	)		25,125			(21,133	)		(79,713	)		(1,968	)		(26,489	)		(104,178	)		(50,956	)		(53,222	)
GMXB embedded derivatives (1)		(78,786	)		10,551			91,607			(4,661	)		(29,978	)		(48,808	)		18,711			(164,253	)		182,964
Funds withheld losses (gains) — investment income		(5,356	)		(4,221	)		(3,752	)		53			—			(5,356	)		(13,276	)		—			(13,276	)
Funds withheld losses (gains) — policy acq. costs		515			621			505			(53	)		—			515			1,588			—			1,588
EIA embedded derivatives — interest credited		(16,732	)		27,996			9,743			(14,574	)		8,166			(24,898	)		6,433			(8,828	)		15,261
EIA embedded derivatives — policy acq. costs		1,955			(2,723	)		(977	)		2,113			(521	)		2,476			368			1,587			(1,219	)
DAC offset, net		32,251			(32,837	)		3,926			67,451			(3,622	)		35,873			70,791			84,229			(13,438	)
Gain on debt repurchase		—			—			—			—			—			—			—			(25,269	)		25,269

Operating Income	$	161,419		$	127,703		$	121,899		$	93,008		$	125,833		$	35,586		$	504,029		$	438,321		$	65,708


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

Page 4

Reinsurance Group of America, Incorporated
Consolidated Operating Income Statement


	Three Months Ended										Current Qtr			Year-to-Date
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		vs. PY			Dec. 31,		Dec. 31,
(USD thousands, except per share data)	2010		2010		2010		2010		2009		Quarter			2010		2009			Change
Revenues:
Net premiums	$	1,801,899	$	1,647,300	$	1,582,017	$	1,628,464	$	1,598,754	$	203,145		$	6,659,680	$	5,725,161		$	934,519
Investment income, net of related expenses		346,987		281,010		285,899		304,340		315,159		31,828			1,218,236		1,122,462			95,774
Investment related gains (losses), net		1,045		358		717		1,750		2,391		(1,346	)		3,870		6,455			(2,585	)
Other revenue		42,370		37,515		35,197		36,278		44,059		(1,689	)		151,360		146,176			5,184

Total revenues		2,192,301		1,966,183		1,903,830		1,970,832		1,960,363		231,938			8,033,146		7,000,254			1,032,892

Benefits and expenses:
Claims and other policy benefits		1,470,845		1,393,891		1,307,239		1,375,180		1,370,175		100,670			5,547,155		4,819,426			727,729
Interest credited		104,844		51,706		64,179		79,356		116,216		(11,372	)		300,085		337,319			(37,234	)
Policy acquisition costs and other insurance expenses		266,025		210,812		231,834		259,364		185,706		80,319			968,035		826,301			141,734
Other operating expenses		102,216		85,409		83,147		91,199		80,532		21,684			361,971		294,779			67,192
Interest expense		25,215		25,191		25,141		15,449		22,985		2,230			90,996		69,940			21,056
Collateral finance facility expense		2,049		2,041		1,960		1,806		1,866		183			7,856		8,268			(412	)

Total benefits and expenses		1,971,194		1,769,050		1,713,500		1,822,354		1,777,480		193,714			7,276,098		6,356,033			920,065

Operating income before income taxes		221,107		197,133		190,330		148,478		182,883		38,224			757,048		644,221			112,827

Operating income tax expense		59,688		69,430		68,431		55,470		57,050		2,638			253,019		205,900			47,119


Operating income	$	161,419	$	127,703	$	121,899	$	93,008	$	125,833	$	35,586		$	504,029	$	438,321		$	65,708


Wgt. Average Common Shares Outstanding (Diluted)		75,052		74,420		74,721		74,578		74,195		857			74,694		73,327			1,367


Diluted Earnings Per Share — Operating Income	$	2.15	$	1.72	$	1.63	$	1.25	$	1.70	$	0.45		$	6.75	$	5.98		$	0.77


*Foreign currency effect on:**
Net premiums	$	23,933	$	15,448	$	40,445	$	103,974	$	81,807	$	(57,874	)	$	183,800	$	(207,609	)	$	391,409
Operating income before income taxes	$	1,580	$	1,998	$	5,185	$	9,497	$	13,321	$	(11,741	)	$	18,260	$	(8,902	)	$	27,162


*		Represents effect as compared to comparable prior year period

Page 5

Reinsurance Group of America, Incorporated
Consolidated Balance Sheets


	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009
Assets
Fixed maturity securities, available for sale	$	14,304,597		$	14,169,930		$	13,077,607		$	12,775,342		$	11,763,358
Mortgage loans on real estate		885,811			863,873			838,827			797,272			791,668
Policy loans		1,228,418			1,173,148			1,173,016			1,162,723			1,136,564
Funds withheld at interest		5,421,952			5,276,511			5,257,929			5,180,300			4,895,356
Short-term investments		118,387			84,091			63,962			79,160			121,060
Other invested assets		707,403			738,830			637,827			564,753			516,086

Total investments		22,666,568			22,306,383			21,049,168			20,559,550			19,224,092
Cash and cash equivalents		463,661			634,075			557,756			525,360			512,027
Accrued investment income		127,874			177,250			144,658			140,921			107,447
Premiums receivable and other reinsurance balances		1,037,679			987,342			898,522			880,372			850,096
Reinsurance ceded receivables		769,699			790,889			721,830			731,479			716,480
Deferred policy acquisition costs		3,726,443			3,741,534			3,597,865			3,624,846			3,698,972
Other assets		289,984			296,555			250,807			259,930			140,387

Total assets	$	29,081,908		$	28,934,028		$	27,220,606		$	26,722,458		$	25,249,501


Liabilities and Stockholders’ Equity
Future policy benefits	$	9,274,789		$	8,906,977		$	8,518,817		$	8,540,298		$	7,748,480
Interest-sensitive contract liabilities		7,774,481			7,884,874			7,781,407			7,550,168			7,666,002
Other policy claims and benefits		2,597,941			2,590,014			2,387,579			2,429,147			2,229,083
Other reinsurance balances		133,590			134,066			143,723			211,532			106,706
Deferred income taxes		1,396,747			1,064,726			977,873			818,331			613,222
Other liabilities		637,923			1,129,848			742,940			782,117			792,775
Short-term debt		199,985			—			—			—			—
Long-term debt		1,016,425			1,216,320			1,216,230			1,216,140			1,216,052
Collateral finance facility		850,039			850,026			850,030			850,025			850,037
Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated debentures of the Company		159,421			159,368			159,316			159,266			159,217

Total liabilities		24,041,341			23,936,219			22,777,915			22,557,024			21,381,574

Stockholders’ Equity:
Common stock, at par value		734			734			734			734			734
Warrants		66,912			66,912			66,912			66,912			66,912
Additional paid-in-capital		1,478,398			1,477,011			1,473,305			1,469,807			1,463,101
Retained earnings		2,587,403			2,402,167			2,282,968			2,165,410			2,055,549
Treasury stock		(295	)		(8,774	)		(9,570	)		(11,817	)		(17,578	)

Accumulated other comprehensive income (AOCI):
Accumulated currency translation adjustment, net of income taxes		270,526			242,686			173,985			237,549			210,878
Unrealized appreciation (depreciation) of securities, net of income taxes		651,449			832,756			470,365			252,905			104,457
Pension and postretirement benefits, net of income taxes		(14,560	)		(15,683	)		(16,008	)		(16,066	)		(16,126	)

Total stockholders’ equity		5,040,567			4,997,809			4,442,691			4,165,434			3,867,927

Total liabilities and stockholders’ equity	$	29,081,908		$	28,934,028		$	27,220,606		$	26,722,458		$	25,249,501


Total stockholders’ equity, excluding AOCI	$	4,133,152		$	3,938,050		$	3,814,349		$	3,691,046		$	3,568,718

Page 6

Reinsurance Group of America, Incorporated
U.S. Traditional Sub-segment Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Revenues:
Net premiums	$	1,009,758		$	930,070		$	933,162		$	902,961		$	918,529		$	91,229		$	3,775,951		$	3,313,864		$	462,087
Investment income, net of related expenses		117,272			124,596			120,782			113,461			114,276			2,996			476,111			428,541			47,570
Other revenue		504			428			190			598			1,121			(617	)		1,720			3,197			(1,477	)

Total revenues		1,127,534			1,055,094			1,054,134			1,017,020			1,033,926			93,608			4,253,782			3,745,602			508,180

Benefits and expenses:
Claims and other policy benefits		842,335			793,270			788,956			789,775			786,949			55,386			3,214,336			2,837,808			376,528
Interest credited		14,826			16,698			16,312			16,636			16,261			(1,435	)		64,472			63,178			1,294
Policy acquisition costs and other insurance expenses		142,057			125,526			134,470			128,773			134,815			7,242			530,826			450,358			80,468
Other operating expenses		21,221			18,534			18,303			20,859			13,756			7,465			78,917			54,651			24,266

Total benefits and expenses		1,020,439			954,028			958,041			956,043			951,781			68,658			3,888,551			3,405,995			482,556

Operating income before income taxes		107,095			101,066			96,093			60,977			82,145			24,950			365,231			339,607			25,624


Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		107,095			101,066			96,093			60,977			82,145			24,950			365,231			339,607			25,624
Investment and Derivative (losses) gains — non-operating		6,246			13,009			2,721			2,848			(7,842	)		14,088			24,824			(83,884	)		108,708

Income before income taxes	$	113,341		$	114,075		$	98,814		$	63,825		$	74,303		$	39,038		$	390,055		$	255,723		$	134,332


Loss and Expense Ratios:
Claims and other policy benefits		83.4	%		85.3	%		84.5	%		87.5	%		85.7	%		-2.3	%		85.1	%		85.6	%		-0.5	%
Policy acquisition costs and other insurance expenses		14.1	%		13.5	%		14.4	%		14.3	%		14.7	%		-0.6	%		14.1	%		13.6	%		0.5	%
Other operating expenses		2.1	%		2.0	%		2.0	%		2.3	%		1.5	%		0.6	%		2.1	%		1.6	%		0.5	%

Page 7

Reinsurance Group of America, Incorporated
U.S. Asset Intensive Sub-segment Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands except account values)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Revenues:
Net premiums	$	3,401		$	2,724		$	3,128		$	11,877		$	1,767		$	1,634		$	21,130		$	6,859		$	14,271
Investment income, net of related expenses		129,985			60,853			77,189			96,449			109,871			20,114			364,476			386,642			(22,166	)
Investment related gains (losses), net		(18	)		(18	)		(18	)		(18	)		(18	)		—			(72	)		(45	)		(27	)
Other revenue		24,156			19,605			21,944			20,893			19,029			5,127			86,598			70,566			16,032

Total revenues		157,524			83,164			102,243			129,201			130,649			26,875			472,132			464,022			8,110

Benefits and expenses:
Claims and other policy benefits		3,131			(318	)		2,850			9,610			5,166			(2,035	)		15,273			6,971			8,302
Interest credited		90,017			35,008			47,868			62,706			99,834			(9,817	)		235,599			273,945			(38,346	)
Policy acquisition costs and other insurance expenses		41,614			32,072			33,341			37,150			9,304			32,310			144,177			127,087			17,090
Other operating expenses		2,781			2,413			2,414			3,189			2,476			305			10,797			10,176			621

Total benefits and expenses		137,543			69,175			86,473			112,655			116,780			20,763			405,846			418,179			(12,333	)

Operating income (loss) before income taxes		19,981			13,989			15,770			16,546			13,869			6,112			66,286			45,843			20,443


Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		19,981			13,989			15,770			16,546			13,869			6,112			66,286			45,843			20,443
Investment and derivative (losses) gains — non-operating (1)		(109,171	)		17,112			124,746			2,808			(50,539	)		(58,632	)		35,495			(221,405	)		256,900
Change in value of modified coinsurance and funds withheld embedded derivatives (1)		43,780			(38,653	)		32,512			122,635			3,028			40,752			160,274			78,394			81,880
GMXB embedded derivatives (1)		121,209			(16,232	)		(140,934	)		7,171			46,120			75,089			(28,786	)		252,697			(281,483	)
Funds withheld losses (gains) — investment income		8,240			6,494			5,772			(82	)		—			8,240			20,424			—			20,424
Funds withheld losses (gains) — policy acq. costs		(793	)		(954	)		(777	)		81			—			(793	)		(2,443	)		—			(2,443	)
EIA embedded derivatives — interest credited		25,741			(43,070	)		(14,990	)		22,422			(12,563	)		38,304			(9,897	)		13,581			(23,478	)
EIA embedded derivatives — policy acq. costs		(3,008	)		4,189			1,503			(3,250	)		801			(3,809	)		(566	)		(2,442	)		1,876
DAC offset, net		(49,618	)		50,519			(6,041	)		(103,769	)		5,572			(55,190	)		(108,909	)		(129,583	)		20,674

Income before income taxes	$	56,361		$	(6,606	)	$	17,561		$	64,562		$	6,288		$	50,073		$	131,878		$	37,085		$	94,793


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

Page 8

Reinsurance Group of America, Incorporated
U.S. Asset Intensive Sub-segment
(Cont’d)


	Three Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
(USD millions)	2010			2010			2010			2010			2009
Annuity account values:

Fixed annuities (deferred)	$	822		$	837		$	847		$	861		$	876

Net interest spread (fixed annuities):		2.4	%		1.5	%		2.3	%		2.4	%		2.4	%

Equity-indexed annuities	$	4,239		$	4,210		$	4,145		$	4,052		$	4,031

Variable annuities:
No riders	$	1,156		$	1,243		$	1,190		$	1,251		$	1,231
GMDB only		90			87			79			82			79
GMIB only		6			6			6			6			6
GMAB only		64			62			58			63			62
GMWB only		1,735			1,653			1,517			1,622			1,563
GMDB / WB		492			472			431			455			437
Other		36			34			32			35			34

Total VA account values	$	3,579		$	3,557		$	3,313		$	3,514		$	3,412

Fair value of liabilities associated with living benefit riders	$	53		$	174		$	158		$	17		$	24

Other asset-intensive business:	$	783		$	786		$	784		$	783		$	679

Page 9

Reinsurance Group of America, Incorporated
U.S. Financial Reinsurance Sub-segment Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Revenues:
Investment income, net of related expenses	$	63		$	154		$	107		$	(51	)	$	(66	)	$	129		$	273		$	(286	)	$	559
Other revenue		7,029			5,608			5,820			5,050			5,736			1,293			23,507			20,296			3,211

Total revenues		7,092			5,762			5,927			4,999			5,670			1,422			23,780			20,010			3,770

Benefits and expenses:
Policy acquisition costs and other insurance expenses		447			461			580			526			299			148			2,014			1,188			826
Other operating expenses		1,067			940			937			1,279			751			316			4,223			3,010			1,213

Total benefits and expenses		1,514			1,401			1,517			1,805			1,050			464			6,237			4,198			2,039

Operating income before income taxes		5,578			4,361			4,410			3,194			4,620			958			17,543			15,812			1,731


Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		5,578			4,361			4,410			3,194			4,620			958			17,543			15,812			1,731
Investment and Derivative (losses) gains — non-operating		(23	)		(44	)		(10	)		(9	)		26			(49	)		(86	)		98			(184	)

Income before income taxes	$	5,555		$	4,317		$	4,400		$	3,185		$	4,646		$	909		$	17,457		$	15,910		$	1,547

Page 10

Reinsurance Group of America, Incorporated
Canadian Segment Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Revenues:
Net premiums	$	205,925		$	205,552		$	177,079		$	208,650		$	168,483		$	37,442		$	797,206		$	614,831		$	182,375
Investment income, net of related expenses		41,534			41,170			42,206			40,228			40,863			671			165,138			137,750			27,388
Investment related gains (losses), net		1,187			938			915			895			919			268			3,935			5,062			(1,127	)
Other revenue		59			803			241			43			124			(65	)		1,146			1,134			12

Total revenues		248,705			248,463			220,441			249,816			210,389			38,316			967,425			758,777			208,648

Benefits and expenses:
Claims and other policy benefits		152,038			186,554			145,250			172,516			133,757			18,281			656,358			501,061			155,297
Interest credited		—			—			—			—			—			—			—			75			(75	)
Policy acquisition costs and other insurance expenses		50,966			26,901			35,264			54,441			39,312			11,654			167,572			146,990			20,582
Other operating expenses		9,058			6,971			6,994			6,841			6,585			2,473			29,864			22,774			7,090

Total benefits and expenses		212,062			220,426			187,508			233,798			179,654			32,408			853,794			670,900			182,894

Operating income before income taxes		36,643			28,037			32,933			16,018			30,735			5,908			113,631			87,877			25,754


Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		36,643			28,037			32,933			16,018			30,735			5,908			113,631			87,877			25,754
Investment and Derivative (losses) gains — non-operating		(454	)		5,431			815			2,955			15,053			(15,507	)		8,747			18,458			(9,711	)

Income before income taxes	$	36,189		$	33,468		$	33,748		$	18,973		$	45,788		$	(9,599	)	$	122,378		$	106,335		$	16,043


Loss and Expense Ratios:
Loss ratios (creditor business)		39.1	%		32.5	%		40.6	%		41.2	%		19.7	%		19.4	%		39.6	%		35.7	%		3.9	%
Loss ratios (excluding creditor business)		84.3	%		96.3	%		91.9	%		106.8	%		98.6	%		-14.3	%		94.4	%		97.8	%		-3.4	%
Claims and other policy benefits / (net premiums + investment income)		61.4	%		75.6	%		66.2	%		69.3	%		63.9	%		-2.5	%		68.2	%		66.6	%		1.6	%
Policy acquisition costs and other insurance expenses		24.7	%		13.1	%		19.9	%		26.1	%		23.3	%		1.4	%		21.0	%		23.9	%		-2.9	%
Other operating expenses		4.4	%		3.4	%		3.9	%		3.3	%		3.9	%		0.5	%		3.7	%		3.7	%		0.0	%

*Foreign currency effect on:**
Net premiums	$	8,357		$	10,236		$	20,670		$	33,557		$	21,267		$	(12,910	)	$	72,820		$	(42,186	)	$	115,006
Operating income before income taxes	$	1,858		$	292		$	4,079		$	1,373		$	5,038		$	(3,180	)	$	7,602		$	(5,184	)	$	12,786

Creditor reinsurance net premiums	$	47,467		$	17,707		$	34,079		$	76,712		$	40,977		$	6,490		$	175,965		$	161,673		$	14,292

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


*		Represents effect as compared to comparable prior year period

Page 11

Reinsurance Group of America, Incorporated
Europe & South Africa Segment Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Revenues:
Net premiums	$	257,980		$	232,962		$	209,919		$	217,652		$	224,510		$	33,470		$	918,513		$	781,952		$	136,561
Investment income, net of related expenses		9,737			8,579			8,369			7,832			8,869			868			34,517			32,240			2,277
Other revenue		296			857			108			838			10,536			(10,240	)		2,099			11,436			(9,337	)

Total revenues		268,013			242,398			218,396			226,322			243,915			24,098			955,129			825,628			129,501

Benefits and expenses:
Claims and other policy benefits		195,172			193,377			165,827			180,016			201,131			(5,959	)		734,392			656,485			77,907
Policy acquisition costs and other insurance expenses		8,153			12,137			10,273			13,398			(4,710	)		12,863			43,961			37,753			6,208
Other operating expenses		28,301			21,198			21,317			22,710			23,608			4,693			93,526			80,301			13,225

Total benefits and expenses		231,626			226,712			197,417			216,124			220,029			11,597			871,879			774,539			97,340

Operating income before income taxes		36,387			15,686			20,979			10,198			23,886			12,501			83,250			51,089			32,161


Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		36,387			15,686			20,979			10,198			23,886			12,501			83,250			51,089			32,161
Investment and Derivative (losses) gains — non-operating		(1,030	)		1,808			1,347			459			576			(1,606	)		2,584			1,252			1,332

Income before income taxes	$	35,357		$	17,494		$	22,326		$	10,657		$	24,462		$	10,895		$	85,834		$	52,341		$	33,493


Loss and Expense Ratios:
Claims and other policy benefits		75.7	%		83.0	%		79.0	%		82.7	%		89.6	%		-13.9	%		80.0	%		84.0	%		-4.0	%
Policy acquisition costs and other insurance expenses		3.2	%		5.2	%		4.9	%		6.2	%		-2.1	%		5.3	%		4.8	%		4.8	%		0.0	%
Other operating expenses		11.0	%		9.1	%		10.2	%		10.4	%		10.5	%		0.5	%		10.2	%		10.3	%		-0.1	%

*Foreign currency effect on:**
Net premiums	$	(5,502	)	$	(12,500	)	$	(6,154	)	$	20,109		$	15,308		$	(20,810	)	$	(4,047	)	$	(107,490	)	$	103,443
Operating income before income taxes	$	(704	)	$	(1,184	)	$	(1,158	)	$	334		$	4,672		$	(5,376	)	$	(2,712	)	$	(1,680	)	$	(1,032	)

Critical illness net premiums	$	58,102		$	57,340		$	52,759		$	55,874		$	58,898		$	(796	)	$	224,075		$	212,124		$	11,951


*		Represents effect as compared to comparable prior year period

Page 12

Reinsurance Group of America, Incorporated
Asia Pacific Segment Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Revenues:
Net premiums	$	322,544		$	273,825		$	256,878		$	285,818		$	283,419		$	39,125		$	1,139,065		$	998,927		$	140,138
Investment income, net of related expenses		18,997			17,042			17,249			17,264			18,107			890			70,552			61,335			9,217
Investment related gains (losses), net		365			232			(151	)		707			824			(459	)		1,153			824			329
Other revenue		6,642			7,462			6,128			6,187			5,887			755			26,419			25,029			1,390

Total revenues		348,548			298,561			280,104			309,976			308,237			40,311			1,237,189			1,086,115			151,074

Benefits and expenses:
Claims and other policy benefits		277,926			220,867			204,494			223,096			243,012			34,914			926,383			817,052			109,331
Policy acquisition costs and other insurance expenses		36,336			27,373			31,661			37,930			17,617			18,719			133,300			106,405			26,895
Other operating expenses		26,164			22,932			22,265			22,385			22,811			3,353			93,746			78,085			15,661

Total benefits and expenses		340,426			271,172			258,420			283,411			283,440			56,986			1,153,429			1,001,542			151,887

Operating income before income taxes		8,122			27,389			21,684			26,565			24,797			(16,675	)		83,760			84,573			(813	)


Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		8,122			27,389			21,684			26,565			24,797			(16,675	)		83,760			84,573			(813	)
Investment and Derivative (losses) gains — non-operating		1,949			1,094			2,077			(120	)		(1,269	)		3,218			5,000			(1,027	)		6,027

Income before income taxes	$	10,071		$	28,483		$	23,761		$	26,445		$	23,528		$	(13,457	)	$	88,760		$	83,546		$	5,214


Loss and Expense Ratios:
Claims and other policy benefits		86.2	%		80.7	%		79.6	%		78.1	%		85.7	%		0.5	%		81.3	%		81.8	%		-0.5	%
Policy acquisition costs and other insurance expenses		11.3	%		10.0	%		12.3	%		13.3	%		6.2	%		5.1	%		11.7	%		10.7	%		1.0	%
Other operating expenses		8.1	%		8.4	%		8.7	%		7.8	%		8.0	%		0.1	%		8.2	%		7.8	%		0.4	%

*Foreign currency effect on:**
Net premiums	$	21,020		$	17,726		$	25,935		$	50,307		$	45,215		$	(24,195	)	$	114,988		$	(58,036	)	$	173,024
Operating income before income taxes	$	487		$	978		$	2,276		$	3,577		$	2,864		$	(2,377	)	$	7,318		$	624		$	6,694

Critical illness net premiums	$	52,386		$	45,954		$	48,508		$	39,398		$	52,311		$	75		$	186,246		$	181,159		$	5,087


*		Represents effect as compared to comparable prior year period

Page 13

Reinsurance Group of America, Incorporated
Corporate and Other Segment Operating Income


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Revenues:
Net premiums	$	2,291		$	2,167		$	1,851		$	1,506		$	2,046		$	245		$	7,815		$	8,728		$	(913	)
Investment income, net of related expenses		29,399			28,616			19,997			29,157			23,239			6,160			107,169			76,240			30,929
Investment related gains (losses), net		(489	)		(794	)		(29	)		166			666			(1,155	)		(1,146	)		614			(1,760	)
Other revenue		3,684			2,752			766			2,669			1,626			2,058			9,871			14,518			(4,647	)

Total revenues		34,885			32,741			22,585			33,498			27,577			7,308			123,709			100,100			23,609

Benefits and expenses:
Claims and other policy benefits		243			141			(138	)		167			160			83			413			49			364
Interest credited		1			—			(1	)		14			121			(120	)		14			121			(107	)
Policy acquisition costs and other insurance expenses		(13,548	)		(13,658	)		(13,755	)		(12,854	)		(10,931	)		(2,617	)		(53,815	)		(43,480	)		(10,335	)
Other operating expenses		13,624			12,421			10,917			13,936			10,545			3,079			50,898			45,782			5,116
Interest expense		25,215			25,191			25,141			15,449			22,985			2,230			90,996			69,940			21,056
Collateral finance facility expense		2,049			2,041			1,960			1,806			1,866			183			7,856			8,268			(412	)

Total benefits and expenses		27,584			26,136			24,124			18,518			24,746			2,838			96,362			80,680			15,682

Operating income (loss) before income taxes		7,301			6,605			(1,539	)		14,980			2,831			4,470			27,347			19,420			7,927


Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		7,301			6,605			(1,539	)		14,980			2,831			4,470			27,347			19,420			7,927
Investment and Derivative (losses) gains — non-operating		11,082			(663	)		(999	)		(9,312	)		(21,681	)		32,763			108			(16,890	)		16,998
Gain on debt repurchase		—			—			—			—			—			—			—			38,875			(38,875	)

Income before income taxes	$	18,383		$	5,942		$	(2,538	)	$	5,668		$	(18,850	)	$	37,233		$	27,455		$	41,405		$	(13,950	)


*Foreign currency effect on:**
Net premiums	$	58		$	(14	)	$	(6	)	$	1		$	16		$	42		$	39		$	102		$	(63	)
Operating income before income taxes	$	(61	)	$	1,912		$	(12	)	$	4,213		$	747		$	(808	)	$	6,052		$	(2,662	)	$	8,714


*		Represents effect as compared to comparable prior year period

Page 14

Reinsurance Group of America, Incorporated
Summary of Pre-tax Segment Operating Income


	Three Months Ended											Current Qtr			Year-to-Date
	Dec. 31,		Sept. 30,		June 30,			March 31,		Dec. 31,		vs. PY			Dec. 31,		Dec. 31,
(USD thousands)	2010		2010		2010			2010		2009		Quarter			2010		2009		Change
U.S. Traditional	$	107,095	$	101,066	$	96,093		$	60,977	$	82,145	$	24,950		$	365,231	$	339,607	$	25,624
U.S. Asset Intensive		19,981		13,989		15,770			16,546		13,869		6,112			66,286		45,843		20,443
U.S. Financial Reinsurance		5,578		4,361		4,410			3,194		4,620		958			17,543		15,812		1,731

Total U.S. Segment		132,654		119,416		116,273			80,717		100,634		32,020			449,060		401,262		47,798
Canadian Segment		36,643		28,037		32,933			16,018		30,735		5,908			113,631		87,877		25,754
Europe & South Africa Segment		36,387		15,686		20,979			10,198		23,886		12,501			83,250		51,089		32,161
Asia Pacific Segment		8,122		27,389		21,684			26,565		24,797		(16,675	)		83,760		84,573		(813	)
Corporate and Other		7,301		6,605		(1,539	)		14,980		2,831		4,470			27,347		19,420		7,927

Consolidated	$	221,107	$	197,133	$	190,330		$	148,478	$	182,883	$	38,224		$	757,048	$	644,221	$	112,827

Page 15

Reinsurance Group of America, Incorporated
Investments


	Cash and Invested Assets
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
(USD thousands)	2010		2010		2010		2010		2009
Fixed maturity securities, available-for-sale	$	14,304,597	$	14,169,930	$	13,077,607	$	12,775,342	$	11,763,358
Mortgage loans on real estate		885,811		863,873		838,827		797,272		791,668
Policy loans		1,228,418		1,173,148		1,173,016		1,162,723		1,136,564
Funds withheld at interest		5,421,952		5,276,511		5,257,929		5,180,300		4,895,356
Short-term investments		118,387		84,091		63,962		79,160		121,060
Other invested assets		707,403		738,830		637,827		564,753		516,086
Cash and cash equivalents		463,661		634,075		557,756		525,360		512,027

Total cash and invested assets	$	23,130,229	$	22,940,458	$	21,606,924	$	21,084,910	$	19,736,119

Investment Income and Yield Summary
(Excludes Funds Withheld)


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Average invested assets at amortized cost	$	16,257,365		$	15,763,396		$	15,432,369		$	15,062,452		$	14,180,733		$	2,076,632		$	15,283,113		$	13,013,390		$	2,269,723
Net investment income	$	216,176		$	218,546		$	208,303		$	215,295		$	203,150		$	13,026		$	858,320		$	747,730		$	110,590

Annualized investment yield (ratio of net investment income to average invested assets)		5.43	%		5.66	%		5.51	%		5.84	%		5.85	%		-0.42	%		5.62	%		5.75	%		-0.13	%

Page 16

Reinsurance Group of America, Incorporated
Investments

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


	December 31, 2010
												Other-than
							Estimated					temporary
	Amortized		Unrealized		Unrealized		Fair		% of			impairment
(USD thousands)	Cost		Gains		Losses		Value		Total			in AOCI
Available-for-sale:
Corporate securities	$	6,826,937	$	436,384	$	107,816	$	7,155,505		50.0	%	$	—
Canadian and Canadian provincial governments		2,354,418		672,951		3,886		3,023,483		21.1	%		—
Residential mortgage-backed securities		1,443,892		55,765		26,580		1,473,077		10.3	%		(1,650	)
Asset-backed securities		440,752		12,001		61,544		391,209		2.7	%		(4,963	)
Commercial mortgage-backed securities		1,353,279		81,839		97,265		1,337,853		9.4	%		(10,010	)
U.S. government and agencies		199,129		7,795		708		206,216		1.4	%		—
State and political subdivisions		170,479		2,098		8,117		164,460		1.2	%		—
Other foreign government securities		556,136		4,304		7,646		552,794		3.9	%		—

Total fixed maturity securities	$	13,345,022	$	1,273,137	$	313,562	$	14,304,597		100.0	%	$	(16,623	)


Non-redeemable preferred stock		100,718		4,130		5,298		99,550		71.0	%
Other equity securities		34,832		6,100		271		40,661		29.0	%

Total equity securities	$	135,550	$	10,230	$	5,569	$	140,211		100.0	%


	December 31, 2009
												Other-than
							Estimated					temporary
	Amortized		Unrealized		Unrealized		Fair		% of			impairment
(USD thousands)	Cost		Gains		Losses		Value		Total			in AOCI
Available-for-sale:
Corporate securities	$	5,317,603	$	257,975	$	180,782	$	5,394,796		45.9	%	$	—
Canadian and Canadian provincial governments		1,984,475		394,498		25,746		2,353,227		20.0	%		—
Residential mortgage-backed securities		1,494,021		32,538		70,015		1,456,544		12.4	%		(7,018	)
Asset-backed securities		522,760		9,307		80,131		451,936		3.8	%		(2,194	)
Commercial mortgage-backed securities		1,177,621		20,670		169,427		1,028,864		8.7	%		(13,690	)
U.S. government and agencies		540,001		1,085		15,027		526,059		4.5	%		—
State and political subdivisions		107,233		273		17,744		89,762		0.8	%		—
Other foreign government securities		473,243		2,198		13,271		462,170		3.9	%		—

Total fixed maturity securities	$	11,616,957	$	718,544	$	572,143	$	11,763,358		100.0	%	$	(22,902	)


Non-redeemable preferred stock		123,648		1,878		12,328		113,198		66.0	%
Other equity securities		58,008		760		409		58,359		34.0	%

Total equity securities	$	181,656	$	2,638	$	12,737	$	171,557		100.0	%

Page 17

Reinsurance Group of America, Incorporated
Investments

Corporate Securities by Sector (Fixed Maturities and Equities)


	December 31, 2010								December 31, 2009
			Estimated Fair					Average Credit			Estimated Fair					Average Credit
(USD thousands)	Amortized Cost		Value		% of Total			Ratings	Amortized Cost		Value		% of Total			Ratings
Financial Institutions
Banking	$	1,739,077	$	1,740,978		23.9	%	A+	$	1,372,940	$	1,334,155		24.0	%	A+
Brokerage		98,351		103,902		1.4	%	A-		87,168		87,747		1.6	%	A-
Finance Comp		216,212		224,729		3.1	%	A		239,659		237,719		4.3	%	A+
Insurance		403,557		422,996		5.8	%	A-		374,486		366,893		6.6	%	A-
REITs		178,106		187,587		2.6	%	BBB+		138,727		139,455		2.5	%	BBB
Other Finance		253,794		259,092		3.5	%	A-		204,309		180,684		3.2	%	A-

Total Financial Institutions		2,889,097		2,939,284		40.3	%			2,417,289		2,346,653		42.2	%
Industrials
Basic		349,522		376,723		5.2	%	BBB		244,242		261,135		4.7	%	BBB
Capital Goods		349,526		372,557		5.1	%	BBB+		235,090		247,594		4.5	%	BBB+
Communications		586,179		634,557		8.7	%	BBB+		444,939		485,405		8.7	%	BBB+
Consumer Cyclical		309,255		324,648		4.4	%	BBB+		242,206		247,077		4.4	%	BBB
Consumer Noncyclical		646,383		693,785		9.5	%	A-		396,739		419,161		7.5	%	BBB+
Energy		383,293		414,592		5.7	%	BBB+		330,748		356,716		6.4	%	BBB+
Technology		228,702		238,975		3.3	%	BBB+		114,795		119,548		2.1	%	BBB+
Transportation		242,719		255,910		3.5	%	BBB+		205,776		209,048		3.8	%	BBB
Other Industrial		50,679		53,767		0.7	%	BBB		62,175		39,414		0.7	%	BBB-

Total Industrials		3,146,258		3,365,514		46.1	%			2,276,710		2,385,098		42.8	%
Utilities
Electric		612,790		642,177		8.8	%	BBB+		512,898		525,379		9.4	%	BBB+
Natural Gas		276,402		303,679		4.2	%	BBB+		246,329		262,064		4.7	%	BBB+
Other Utility		23,002		29,700		0.4	%	A-		26,830		27,940		0.5	%	A-

Total Utilities		912,194		975,556		13.4	%			786,057		815,383		14.6	%
Other Sectors		14,938		15,362		0.2	%	AA+		19,203		19,219		0.4	%	AA

Total	$	6,962,487	$	7,295,716		100.0	%	A-	$	5,499,259	$	5,566,353		100.0	%	A-

Page 18

Reinsurance Group of America, Incorporated
Investments

Ratings of Fixed Maturity Securities


		December 31, 2010							September 30, 2010							June 30, 2010							March 31, 2010							December 31, 2009
(USD thousands)	Rating Agency	Amortized		Estimated Fair					Amortized		Estimated Fair					Amortized		Estimated Fair					Amortized		Estimated Fair					Amortized		Estimated Fair
NAIC Designation	Designation	Cost		Value		% of Total			Cost		Value		% of Total			Cost		Value		% of Total			Cost		Value		% of Total			Cost		Value		% of Total
1	AAA	$	3,516,872	$	3,592,987		25.1	%	$	3,492,193	$	3,633,780		25.6	%	$	3,534,911	$	3,642,644		27.9	%	$	3,669,930	$	3,668,484		28.7	%	$	3,726,020	$	3,664,665		31.2	%
1	AA		3,284,387		3,758,523		26.3	%		3,155,855		3,675,615		25.9	%		2,860,403		3,177,314		24.3	%		2,905,244		3,122,295		24.5	%		2,527,944		2,684,878		22.8	%
1	A		2,896,256		3,205,431		22.4	%		2,714,384		3,138,268		22.2	%		2,512,744		2,773,399		21.2	%		2,436,385		2,630,133		20.6	%		2,203,848		2,367,377		20.1	%
2	BBB		2,860,603		3,035,593		21.2	%		2,778,394		3,030,667		21.4	%		2,639,071		2,783,867		21.3	%		2,561,843		2,658,713		20.8	%		2,401,885		2,433,144		20.7	%
3	BB		460,675		450,368		3.2	%		471,013		440,012		3.1	%		479,755		424,060		3.2	%		472,151		417,253		3.3	%		455,539		381,242		3.3	%
4	B		239,604		191,287		1.3	%		237,136		185,668		1.3	%		255,530		192,244		1.5	%		253,930		185,177		1.4	%		210,252		145,206		1.2	%
5	CCC and lower		63,859		47,493		0.3	%		63,033		44,683		0.3	%		80,415		65,496		0.5	%		94,537		77,652		0.6	%		75,486		70,165		0.6	%
6	In or near default		22,766		22,915		0.2	%		21,108		21,237		0.2	%		18,809		18,583		0.1	%		13,205		15,635		0.1	%		15,983		16,681		0.1	%

	Total	$	13,345,022	$	14,304,597				$	12,933,116	$	14,169,930				$	12,381,638	$	13,077,607				$	12,407,225	$	12,775,342				$	11,616,957	$	11,763,358

Structured Fixed Maturity Securities


	December 31, 2010				September 30, 2010				June 30, 2010				March 31, 2010				December 31, 2009
	Amortized		Estimated Fair		Amortized		Estimated Fair		Amortized		Estimated Fair		Amortized		Estimated Fair		Amortized		Estimated Fair
(USD thousands)	Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value
Residential mortgage-backed securities:
Agency	$	636,931	$	668,405	$	682,621	$	728,354	$	726,078	$	770,690	$	744,920	$	776,013	$	771,787	$	797,354
Non-agency		806,961		804,672		837,648		832,934		828,507		802,670		859,102		800,152		722,234		659,190

Total residential mortgage-backed securities		1,443,892		1,473,077		1,520,269		1,561,288		1,554,585		1,573,360		1,604,022		1,576,165		1,494,021		1,456,544
Commercial mortgage-backed securities		1,353,279		1,337,853		1,257,835		1,235,849		1,229,237		1,166,937		1,222,346		1,124,736		1,177,621		1,028,864
Asset-backed securities		440,752		391,209		457,047		414,515		496,652		449,623		516,924		458,664		522,760		451,936

Total	$	3,237,923	$	3,202,139	$	3,235,151	$	3,211,652	$	3,280,474	$	3,189,920	$	3,343,292	$	3,159,565	$	3,194,402	$	2,937,344

Page 19

Investments

Subprime Mortgage Exposure
(Includes Funds Withheld Portfolios)


	December 31, 2010
	AAA				AA				A
(USD thousands)			Estimated Fair				Estimated Fair				Estimated Fair
Underwriting Year	Amortized Cost		Value		Amortized Cost		Value		Amortized Cost		Value
2005 & Prior	$	13,343	$	12,079	$	29,809	$	27,746	$	10,504	$	9,573
2006		—		—		—		—		—		—
2007		—		—		—		—		—		—
2008 - 2010		—		—		—		—		—		—

Total	$	13,343	$	12,079	$	29,809	$	27,746	$	10,504	$	9,573


	BBB				Below Investment Grade				Total
			Estimated Fair				Estimated Fair				Estimated Fair
Underwriting Year	Amortized Cost		Value		Amortized Cost		Value		Amortized Cost		Value
2005 & Prior	$	22,608	$	19,213	$	71,582	$	41,308	$	147,846	$	109,919
2006		—		—		2,152		2,508		2,152		2,508
2007		—		—		5,279		3,329		5,279		3,329
2008 - 2010		—		—		—		—		—		—

Total	$	22,608	$	19,213	$	79,013	$	47,145	$	155,277	$	115,756


	December 31, 2009
	AAA				AA				A
(USD thousands)			Estimated Fair				Estimated Fair				Estimated Fair
Underwriting Year	Amortized Cost		Value		Amortized Cost		Value		Amortized Cost		Value
2005 & Prior	$	22,816	$	18,780	$	39,873	$	33,014	$	17,017	$	9,779
2006		—		—		—		—		—		—
2007		—		—		—		—		—		—
2008 - 2009		—		—		—		—		—		—

Total	$	22,816	$	18,780	$	39,873	$	33,014	$	17,017	$	9,779


	BBB				Below Investment Grade				Total
			Estimated Fair				Estimated Fair				Estimated Fair
Underwriting Year	Amortized Cost		Value		Amortized Cost		Value		Amortized Cost		Value
2005 & Prior	$	24,394	$	12,593	$	39,203	$	18,686	$	143,303	$	92,852
2006		4,985		1,507		4,566		2,563		9,551		4,070
2007		—		—		11,709		7,372		11,709		7,372
2008 - 2009		—		—		—		—		—		—

Total	$	29,379	$	14,100	$	55,478	$	28,621	$	164,563	$	104,294

Page 20

Reinsurance Group of America, Incorporated
Investments

CMBS Exposure
(Includes Funds Withheld Portfolios)


	December 31, 2010
	AAA				AA				A
(USD thousands)			Estimated Fair				Estimated Fair				Estimated Fair
Underwriting Year	Amortized Cost		Value		Amortized Cost		Value		Amortized Cost		Value
2005 & Prior	$	261,763	$	282,522	$	81,795	$	85,675	$	63,234	$	63,491
2006		314,043		328,422		46,372		50,217		48,851		49,949
2007		255,589		270,731		29,493		23,512		92,910		96,790
2008		29,547		33,115		37,291		39,657		7,495		7,886
2009		8,020		7,877		3,088		3,505		6,834		9,675
2010		69,580		68,879		5,193		4,800		10,970		10,928

Total	$	938,542	$	991,546	$	203,232	$	207,366	$	230,294	$	238,719


	BBB				Below Investment Grade				Total
			Estimated Fair				Estimated Fair				Estimated Fair
Underwriting Year	Amortized Cost		Value		Amortized Cost		Value		Amortized Cost		Value
2005 & Prior	$	67,341	$	66,392	$	56,882	$	44,770	$	531,015	$	542,850
2006		32,651		31,646		56,636		39,127		498,553		499,361
2007		99,796		105,962		125,123		77,459		602,911		574,454
2008		—		—		24,085		15,234		98,418		95,892
2009		—		—		—		—		17,942		21,057
2010		—		—		—		—		85,743		84,607

Total	$	199,788	$	204,000	$	262,726	$	176,590	$	1,834,582	$	1,818,221

NOTE: Totals include directly held investments with amortized cost of $1,353.3 million and fair value of $1,337.9 million as well as investments in funds withheld with amortized cost of $481.3 million and fair value of $480.4 million.


	December 31, 2009
	AAA				AA				A
(USD thousands)			Estimated Fair				Estimated Fair				Estimated Fair
Underwriting Year	Amortized Cost		Value		Amortized Cost		Value		Amortized Cost		Value
2005 & Prior	$	398,619	$	403,551	$	57,602	$	51,754	$	75,449	$	55,124
2006		292,369		280,475		41,649		34,854		41,128		34,859
2007		223,827		216,853		6,922		2,267		64,860		56,996
2008		19,050		19,790		29,211		26,617		—		—
2009		16,638		16,422		1,485		1,532		—		—

Total	$	950,503	$	937,091	$	136,869	$	117,024	$	181,437	$	146,979


	BBB				Below Investment Grade				Total
			Estimated Fair				Estimated Fair				Estimated Fair
Underwriting Year	Amortized Cost		Value		Amortized Cost		Value		Amortized Cost		Value
2005 & Prior	$	47,616	$	33,986	$	28,298	$	19,457	$	607,584	$	563,872
2006		26,257		19,091		47,951		22,392		449,354		391,671
2007		82,460		68,428		128,193		62,440		506,262		406,984
2008		—		—		25,384		12,204		73,645		58,611
2009		—		—		—		—		18,123		17,954

Total	$	156,333	$	121,505	$	229,826	$	116,493	$	1,654,968	$	1,439,092

NOTE: Totals include directly held investments with amortized cost of $1,177.6 million and fair value of $1,028.9 million as well as investments in funds withheld with amortized cost of $477.4 million and fair value of $410.2 million.

Page 21

Reinsurance Group of America, Incorporated
Investments

Gross Unrealized Losses Aging

Fixed Maturity Securities


	December 31, 2010					September 30, 2010					June 30, 2010					March 31, 2010					December 31, 2009
	Gross Unrealized					Gross Unrealized					Gross Unrealized					Gross Unrealized					Gross Unrealized
(USD thousands)	Losses		% of Total			Losses		% of Total			Losses		% of Total			Losses		% of Total			Losses		% of Total
Less than 20%	$	143,451		44.9	%	$	86,770		29.1	%	$	132,900		34.4	%	$	198,928		42.3	%	$	248,145		42.4	%
20% or more for less than six months		17,293		5.4	%		45,706		15.3	%		54,620		14.1	%		59,530		12.6	%		67,435		11.5	%
20% or more for six months or greater		152,818		47.9	%		160,785		53.9	%		188,398		48.7	%		204,321		43.4	%		256,563		43.9	%

Total	$	313,562		98.2	%	$	293,261		98.3	%	$	375,918		97.2	%	$	462,779		98.3	%	$	572,143		97.8	%

Equity Securities


	December 31, 2010					September 30, 2010					June 30, 2010					March 31, 2010					December 31, 2009
	Gross Unrealized					Gross Unrealized					Gross Unrealized					Gross Unrealized					Gross Unrealized
(USD thousands)	Losses		% of Total			Losses		% of Total			Losses		% of Total			Losses		% of Total			Losses		% of Total
Less than 20%	$	2,953		0.9	%	$	2,921		1.0	%	$	4,888		1.3	%	$	4,696		1.0	%	$	5,930		1.0	%
20% or more for less than six months		821		0.3	%		265		0.1	%		1,808		0.5	%		1,883		0.4	%		1,887		0.3	%
20% or more for six months or greater		1,795		0.6	%		1,857		0.6	%		4,039		1.0	%		1,346		0.3	%		4,920		0.9	%

Total	$	5,569		1.8	%	$	5,043		1.7	%	$	10,735		2.8	%	$	7,925		1.7	%	$	12,737		2.2	%

Page 22

Reinsurance Group of America, Incorporated
Investments

Fixed Maturities and Equity Securities Below Amortized Cost


	As of December 31, 2010
	Less than 12 months				Equal to or greater than 12 months				Total
	Estimated Fair		Gross Unrealized		Estimated Fair		Gross Unrealized		Estimated Fair		Gross Unrealized
(USD thousands)	Value		Losses		Value		Losses		Value		Losses
Investment grade securities:
Corporate securities	$	1,170,016	$	34,097	$	368,128	$	61,945	$	1,538,144	$	96,042
Canadian and Canadian provincial governments		118,585		3,886		—		—		118,585		3,886
Residential mortgage-backed securities		195,406		4,986		105,601		13,607		301,007		18,593
Asset-backed securities		23,065		570		131,172		38,451		154,237		39,021
Commercial mortgage-backed securities		132,526		4,143		109,158		29,059		241,684		33,202
U.S. government and agencies		11,839		708		—		—		11,839		708
State and political subdivisions		68,229		2,890		31,426		5,227		99,655		8,117
Other foreign government securities		322,363		3,142		43,796		4,504		366,159		7,646

Investment grade securities		2,042,029		54,422		789,281		152,793		2,831,310		207,215


Non-investment grade securities:
Corporate securities		58,420		1,832		91,205		9,942		149,625		11,774
Asset-backed securities		—		—		23,356		22,523		23,356		22,523
Residential mortgage-backed securities		1,162		605		38,206		7,382		39,368		7,987
Commercial mortgage-backed securities		—		—		89,170		64,063		89,170		64,063
State and political subdivisions		—		—		—		—		—		—

Non-investment grade securities		59,582		2,437		241,937		103,910		301,519		106,347

Total fixed maturity securities	$	2,101,611	$	56,859	$	1,031,218	$	256,703	$	3,132,829	$	313,562


Non-redeemable preferred stock		15,987		834		28,549		4,464		44,536		5,298
Other equity securities		6,877		271		318		—		7,195		271

Total Equity securities	$	22,864	$	1,105	$	28,867	$	4,464	$	51,731	$	5,569

Total number of securities in an unrealized loss position		520				508				1,028


	As of December 31, 2009
	Less than 12 months				Equal to or greater than 12 months				Total
	Estimated Fair		Gross Unrealized		Estimated Fair		Gross Unrealized		Estimated Fair		Gross Unrealized
(USD thousands)	Value		Losses		Value		Losses		Value		Losses
Investment grade securities:
Corporate securities	$	735,455	$	32,887	$	862,208	$	114,404	$	1,597,663	$	147,291
Canadian and Canadian provincial governments		494,718		15,374		135,315		10,372		630,033		25,746
Residential mortgage-backed securities		402,642		23,671		197,320		20,185		599,962		43,856
Asset-backed securities		48,651		1,927		166,603		57,262		215,254		59,189
Commercial mortgage-backed securities		177,360		10,312		425,793		79,297		603,153		89,609
U.S. government and agencies		496,514		15,027		—		—		496,514		15,027
State and political subdivisions		34,612		3,397		40,945		11,437		75,557		14,834
Other foreign government securities		240,216		8,370		30,321		4,901		270,537		13,271

Investment grade securities		2,630,168		110,965		1,858,505		297,858		4,488,673		408,823


Non-investment grade securities:
Corporate securities		37,232		11,310		172,146		22,181		209,378		33,491
Asset-backed securities		6,738		3,256		24,408		17,686		31,146		20,942
Residential mortgage-backed securities		10,657		1,909		66,756		24,250		77,413		26,159
Commercial mortgage-backed securities		—		—		57,179		79,818		57,179		79,818
State and political subdivisions		—		—		5,170		2,910		5,170		2,910

Non-investment grade securities		54,627		16,475		325,659		146,845		380,286		163,320

Total fixed maturity securities	$	2,684,795	$	127,440	$	2,184,164	$	444,703	$	4,868,959	$	572,143


Non-redeemable preferred stock		8,320		1,263		68,037		11,065		76,357		12,328
Other equity securities		5		15		7,950		394		7,955		409

Total Equity securities	$	8,325	$	1,278	$	75,987	$	11,459	$	84,312	$	12,737

Total number of securities in an unrealized loss position		582				734				1,316

Page 23

Reinsurance Group of America, Incorporated
Investments

Consolidated Investment Related Gains and Losses


	Three Months Ended															Current Qtr			Year-to-Date
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			vs. PY			Dec. 31,			Dec. 31,
(USD thousands)	2010			2010			2010			2010			2009			Quarter			2010			2009			Change
Fixed Maturity and Equity Securities:
Other-than-temporary impairment losses on fixed maturities	$	(16,097	)	$	(4,904	)	$	(3,489	)	$	(7,430	)	$	(40,552	)	$	24,455		$	(31,920	)	$	(128,834	)	$	96,914
Portion of loss recognized in other accumulated comprehensive income (before taxes)		(186	)		26			(139	)		2,344			3,910			(4,096	)		2,045			16,045			(14,000	)

Net other-than-temporary impairment losses on fixed maturities recognized in earnings		(16,283	)		(4,878	)		(3,628	)		(5,086	)		(36,642	)		20,359			(29,875	)		(112,789	)		82,914
Impairment losses on equity securities		—			—			(10	)		(22	)		(5,628	)		5,628			(32	)		(11,059	)		11,027
Gain on investment activity		26,124			39,371			19,363			16,099			44,538			(18,414	)		100,957			113,872			(12,915	)
Loss on investment activity		(6,763	)		(7,773	)		(5,662	)		(8,532	)		(10,728	)		3,965			(28,730	)		(72,987	)		44,257

Net gain/(loss) on fixed maturity and equity securities		3,078			26,720			10,063			2,459			(8,460	)		11,538			42,320			(82,963	)		125,283

Other impairment losses		1,506			(5,087	)		(1,165	)		(1,230	)		(715	)		2,221			(5,976	)		(8,471	)		2,495
Other non-derivative gain/(loss), net		4,751			4,644			4,789			(448	)		1,344			3,407			13,736			11,741			1,995

Free-standing Derivatives:
Credit Default Swaps		4,340			3,730			(4,060	)		776			3,358			982			4,786			13,654			(8,868	)
Interest Rate Swaps — non-hedged		(79,546	)		49,825			87,114			11,341			(49,213	)		(30,333	)		68,734			(160,715	)		229,449
Interest Rate Swaps — hedged		19			239			168			132			55			(36	)		558			216			342
Futures		(23,766	)		(42,270	)		32,822			(11,745	)		(9,942	)		(13,824	)		(44,959	)		(72,641	)		27,682
CPI Swaps		438			(508	)		109			923			1,318			(880	)		962			2,234			(1,272	)
Equity options		(2,402	)		(731	)		127			—			—			(2,402	)		(3,006	)		—			(3,006	)
Currency Forwards		1,226			1,543			1,447			(829	)		(1,030	)		2,256			3,387			2			3,385

Total free-standing derivatives		(99,691	)		11,828			117,727			598			(55,454	)		(44,237	)		30,462			(217,250	)		247,712

Embedded Derivatives:
Modified coinsurance and funds withheld treaties		43,780			(38,653	)		32,512			122,635			3,028			40,752			160,274			78,394			81,880
GMXB		121,209			(16,232	)		(140,934	)		7,171			46,120			75,089			(28,786	)		252,697			(281,483	)

Total embedded derivatives		164,989			(54,885	)		(108,422	)		129,806			49,148			115,841			131,488			331,091			(199,603	)

Net gain/(loss) on total derivatives		65,298			(43,057	)		9,305			130,404			(6,306	)		71,604			161,950			113,841			48,109


Total investment related gains (losses), net	$	74,633		$	(16,780	)	$	22,992		$	131,185		$	(14,137	)	$	88,770		$	212,030		$	34,148		$	177,882

Page 24

Attached files

Stock widget

Investing forum

REINSURANCE GROUP OF AMERICA INC Reports

Also read