Reinsurance Group of America Inc.

05/02/2024 | Press release | Distributed by Public on 05/02/2024 14:33

Quarterly Financial Supplement 1Q 2024 (Excel)

Cover

Quarterly Financial Supplement
First Quarter 2024
(Unaudited)

Cover_back

World Headquarters Internet Address Contacts
16600 Swingley Ridge Road www.rgare.com Todd C. Larson
Chesterfield, Missouri 63017 Senior Executive Vice President
U.S.A. and Chief Financial Officer
Phone: (636) 736-7000
Current Ratings e-mail: [email protected]
Standard & Poor's A.M. Best Moody's Jeff Hopson
Financial Strength Ratings Senior Vice President
RGA Reinsurance Company AA- A+ A1 Investor Relations
RGA Life Reinsurance Company of Canada AA- A+ Phone: (636) 736-2068
RGA International Reinsurance Company dac AA- e-mail: [email protected]
RGA Global Reinsurance Company, Ltd. AA-
RGA Reinsurance Company of Australia Limited AA-
RGA Americas Reinsurance Company, Ltd. AA- A+
RGA Worldwide Reinsurance Company, Ltd. AA-
RGA Reinsurance Company (Barbados) Ltd. AA-
RGA Atlantic Reinsurance Company Ltd. AA- A+
RGA Life and Annuity Insurance Company AA- A+
Omnilife Insurance Company Limited A+
Aurora National Life Assurance Company A+
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."

TOC

Reinsurance Group of America, Incorporated
1st Quarter 2024
Table of Contents
Page
Notes Notes
Consolidated
Financial Highlights Fin Highlights
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations) CONSOL EARNINGS
Consolidated Balance Sheets CONSOL BAL SHEET
Segment Summaries of GAAP Income Statements and Adjusted Operating Income Statements
U.S. and Latin America Traditional USM
U.S. and Latin America Financial Solutions US FS 1
Canada Traditional CAN
Canada Financial Solutions CAN Fin Sol
Europe, Middle East and Africa Traditional EMEA
Europe, Middle East and Africa Financial Solutions EMEA Fin Sol
Asia Pacific Traditional AP
Asia Pacific Financial Solutions AP Fin Sol
Corporate and Other Corp
Summary of Segment GAAP Income NI Summary
Summary of Segment Adjusted Operating Income OI Summary
Investments
Cash and Invested Assets and Investment Income and Yield Summary Inv1
Fixed Maturity Securities Inv2
Corporate Fixed Maturity Securities by Industry Inv3
Ratings of Fixed Maturity Securities and Structured Fixed Maturity Securities Inv4
Fixed Maturity Securities Below Amortized Cost Inv5
Consolidated Investment Related Gains and Losses Inv6
Appendix
Reconciliations of GAAP to Non-GAAP Measures Appendix
Non-GAAP Disclosures Non-GAAP

Notes

Reinsurance Group of America, Incorporated
Notes
Change in Presentation: U.S. and Latin America Financial Solutions:
In the first quarter of 2024, the Company updated the presentation of the financial results for the U.S. and Latin America Financial Solutions segment by combining the financial results for "Asset-Intensive" and "Capital Solutions" businesses. This change in presentation better aligns the presentation of the U.S. and Latin America Financial Solutions segment's financial results with the Company's management of these businesses and with reporting for the other Financial Solutions segments. This change in presentation did not affect any previously or expected future reported results for the U.S. and Latin America Financial Solutions segment.

Fin Highlights

Reinsurance Group of America, Incorporated
Financial Highlights
(USD millions, except in force and per share data)
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Net premiums $ 5,376 $ 4,108 $ 4,255 $ 3,337 $ 3,385 $ 1,991
Net income (loss) available to RGA's shareholders 210 158 287 205 252 (42)
Adjusted operating income 401 316 372 297 349 52
Adjusted operating income excluding notable items (1) 401 316 372 297 349 52
Return on equity 10.2 % 11.4 % 13.9 % 9.2 % 7.8 % 2.4 %
Adjusted operating return on equity (ex AOCI) 14.8 % 14.5 % 14.7 % 10.9 % 11.2 % 3.6 %
Adjusted operating return on equity (ex AOCI and notable items (1)) 14.8 % 14.4 % 14.0 % 13.0 % 13.1 % 1.7 %
Adjusted operating return on equity (ex AOCI and effect of B36 items) 14.8 % 14.4 % 14.7 % 10.9 % 11.2 % 3.6 %
Per Share and Shares Data (shares in thousands)
Basic earnings per share
Net income $ 3.20 $ 2.40 $ 4.34 $ 3.09 $ 3.77 $ (0.57)
Adjusted operating income $ 6.09 $ 4.80 $ 5.64 $ 4.46 $ 5.22 $ 0.87
Adjusted operating income excluding notable items (1) 6.09 4.80 5.64 4.46 5.22 0.87
Diluted earnings per share
Net income $ 3.16 $ 2.37 $ 4.29 $ 3.05 $ 3.72 $ (0.56)
Adjusted operating income $ 6.02 $ 4.73 $ 5.57 $ 4.40 $ 5.16 $ 0.86
Adjusted operating income excluding notable items (1) $ 6.02 $ 4.73 $ 5.57 $ 4.40 $ 5.16 $ 0.86
Wgt. average common shares outstanding
Basic 65,739 65,853 66,127 66,518 66,779 (1,040)
Diluted 66,559 66,721 66,914 67,420 67,615 (1,056)
Book value per share $ 143.92 $ 138.39 $ 122.40 $ 117.87 $ 114.60 $ 29.32
Book value per share, excluding AOCI $ 145.83 $ 144.01 $ 142.63 $ 138.99 $ 136.56 $ 9.27
Book value per share, excluding AOCI and B36 146.96 146.07 142.51 138.88 136.22 10.74
Shareholders' dividends paid $ 56 $ 56 $ 56 $ 54 $ 53 $ 3
Share buybacks $ - $ 50 $ 50 $ 50 $ 50 $ (50)
Total returns to shareholders $ 56 $ 106 $ 106 $ 104 $ 103 $ (47)
Common shares issued 85,311 85,311 85,311 85,311 85,311 -
Treasury shares 19,523 19,690 19,439 19,099 18,771 752
Common shares outstanding 65,788 65,621 65,872 66,212 66,540 (752)
Assumed life reinsurance in force (in billions) 3729.8 3704.1 3499.4 3479.5 3426.7 303.1
Assumed new business production (in billions) 109.1 97.6 96.7 88.2 80.6 28.5
(1) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".

CONSOL EARNINGS

Reinsurance Group of America, Incorporated
Consolidated GAAP Income Statements (including Adjusted Operating Income Reconciliations)
(USD millions)
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 5,376 $ 4,108 $ 4,255 $ 3,337 $ 3,385 $ 1,991
Net investment income 961 956 922 857 856 105
Investment related gains (losses), net (149) (155) (126) (123) (77) (72)
Other revenue 149 98 102 85 87 62
Total revenues 6,337 5,007 5,153 4,156 4,251 2,086
Benefits and expenses:
Claims and other policy benefits 5,132 3,837 3,959 3,013 3,063 2,069
Future policy benefits remeasurement (gains) losses (24) 33 (82) 13 (26) 2
Market risk benefits remeasurement (gains) losses (35) 28 (21) (31) 14 (49)
Interest credited 254 217 223 209 215 39
Policy acquisition costs and other insurance expenses 387 369 348 349 331 56
Other operating expenses 283 290 274 275 250 33
Interest expense 68 69 72 63 53 15
Total benefits and expenses 6,065 4,843 4,773 3,891 3,900 2,165
Income before income taxes 272 164 380 265 351 (79)
Provision for income taxes 60 4 91 58 98 (38)
Net income 212 160 289 207 253 (41)
Net income attributable to noncontrolling interest 2 2 2 2 1 1
Net income available to RGA's shareholders $ 210 $ 158 $ 287 $ 205 $ 252 $ (42)
Pre-tax adjusted operating income reconciliation:
Income before income taxes $ 272 $ 164 $ 380 $ 265 $ 351 $ (79)
Investment and derivative (gains) losses (1) 232 (18) 134 117 127 105
Market risk benefits remeasurement (gains) losses (35) 28 (21) (31) 14 (49)
Change in fair value of funds withheld embedded derivatives (1) (77) 181 (1) 20 (37) (40)
Funds withheld (gains) losses - investment income (2) (3) (4) 2 - (2)
EIA embedded derivatives - interest credited 13 5 (7) 3 (7) 20
Investment (income) loss on unit-linked variable annuities 1 (3) 2 2 - 1
Interest credited on unit-linked variable annuities (1) 3 (2) (2) - (1)
Interest expense on uncertain tax positions - (1) 1 - - -
Other (2) 113 30 (1) - 8 105
Adjusted operating income before income taxes $ 516 $ 386 $ 481 $ 376 $ 456 $ 60
Notable items (3) - - (3) - - -
Adjusted operating income before income taxes excluding notable items 516 386 478 376 456 60
After-tax adjusted operating income reconciliation:
GAAP net income attributable to RGA $ 210 $ 158 $ 287 $ 205 $ 252 $ (42)
Investment and derivative (gains) losses (1) 185 (14) 104 88 102 83
Market risk benefits remeasurement (gains) losses (28) 22 (17) (24) 11 (39)
Change in fair value of funds withheld embedded derivatives (1) (61) 143 (1) 16 (29) (32)
Funds withheld (gains) losses - investment income (2) (2) (4) 2 - (2)
EIA embedded derivatives - interest credited 10 4 (6) 3 (6) 16
Investment (income) loss on unit-linked variable annuities 1 (2) 1 2 - 1
Interest credited on unit-linked variable annuities (1) 2 (1) (2) - (1)
Interest expense on uncertain tax positions - (1) 1 - - -
Other (2) 89 23 - - 6 83
Uncertain tax positions and other tax related items (4) (19) 6 5 12 (16)
Net income attributable to noncontrolling interest 2 2 2 2 1 1
Adjusted operating income 401 316 372 297 349 52
Notable items (3) - - - - - -
Adjusted operating income excluding notable items $ 401 $ 316 $ 372 $ 297 $ 349 $ 52
Diluted earnings per share - adjusted operating income (loss) $ 6.02 $ 4.73 $ 5.57 $ 4.40 $ 5.16 $ 0.86
Diluted earnings per share - adjusted operating income (loss) excluding notable items $ 6.02 4.73 5.57 4.40 5.16 $ 0.86
Foreign currency effect on (4):
Net premiums $ (12) $ 18 $ 13 $ (45) $ (112) $ 100
Adjusted operating income (loss) before income taxes $ 1 $ 3 $ 1 $ (6) $ (16) $ 17
(1) Included in "Investment related gains (losses), net".
(2) Includes pension risk transfer day one loss and other immaterial items.
(3) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(4) Compared to comparable prior year period.

CONSOL BAL SHEET

Reinsurance Group of America, Incorporated
Consolidated Balance Sheets
(USD millions)
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023
Assets
Fixed maturity securities available-for-sale, at fair value $ 65,827 $ 60,467 $ 54,171 $ 56,236 $ 56,085
Equity securities 144 139 133 136 138
Mortgage loans 7,539 7,377 7,231 7,038 6,833
Policy loans 1,198 1,206 1,180 1,202 1,221
Funds withheld at interest 5,642 5,683 5,725 5,862 5,976
Limited partnerships and real estate joint ventures 2,697 2,635 2,560 2,473 2,405
Short-term investments 327 222 141 224 246
Other invested assets 1,140 1,171 1,091 1,119 1,111
Total investments 84,514 78,900 72,232 74,290 74,015
Cash and cash equivalents 5,935 2,970 2,820 2,598 3,294
Accrued investment income 808 759 744 702 672
Premiums receivable and other reinsurance balances 3,342 3,528 3,279 3,321 3,114
Reinsurance ceded receivables and other 5,265 5,448 2,818 2,664 2,723
Deferred policy acquisition costs 4,673 4,617 4,289 4,286 4,257
Other assets 1,463 1,401 1,240 1,179 1,045
Total assets $ 106,000 $ 97,623 $ 87,422 $ 89,040 $ 89,120
Liabilities and equity
Future policy benefits $ 47,067 $ 41,231 $ 36,474 $ 38,239 $ 38,222
Interest-sensitive contract liabilities 31,319 30,273 29,365 29,910 30,405
Market risk benefits, at fair value 228 258 224 235 261
Other policy claims and benefits 2,753 2,730 2,654 2,579 2,558
Other reinsurance balances 874 1,103 750 858 851
Deferred income taxes 1,897 1,862 1,601 1,424 1,446
Other liabilities 3,468 2,085 1,750 1,477 1,497
Funds withheld payable 4,409 4,483 2,001 1,573 1,709
Long-term debt 4,427 4,427 4,450 4,850 4,455
Total liabilities 96,442 88,452 79,269 81,145 81,404
Equity:
Common stock, at par value 1 1 1 1 1
Additional paid-in-capital 2,549 2,544 2,534 2,522 2,506
Retained earnings 8,934 8,805 8,713 8,483 8,336
Treasury stock (1,891) (1,900) (1,852) (1,803) (1,756)
Accumulated other comprehensive income, net of taxes (AOCI):
Accumulated currency translation adjustment 57 68 (33) 26 (94)
Unrealized (depreciation) appreciation of securities (4,062) (3,667) (6,659) (4,879) (4,393)
Effect of updating discount rates on future policy benefits 3,906 3,256 5,366 3,460 3,034
Change instrument-specific credit risk for market risk benefits 3 3 7 13 14
Pension and postretirement benefits (29) (29) (14) (18) (22)
Total RGA, Inc. shareholders' equity 9,468 9,081 8,063 7,805 7,626
Noncontrolling interest 90 90 90 90 90
Total equity 9,558 9,171 8,153 7,895 7,716
Total liabilities and equity $ 106,000 $ 97,623 $ 87,422 $ 89,040 $ 89,120
Total RGA, Inc. shareholders' equity, excluding AOCI $ 9,593 $ 9,450 $ 9,396 $ 9,203 $ 9,087
See appendix for reconciliation of total shareholders' equity before and after impact of AOCI.

USM

Reinsurance Group of America, Incorporated
U.S. and Latin America Traditional
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 1,715 $ 1,912 $ 1,746 $ 1,750 $ 1,615 $ 100
Net investment income 205 210 195 180 193 12
Investment related gains (losses), net (12) 6 2 (1) (1) (11)
Other revenue 6 2 6 3 5 1
Total revenues 1,914 2,130 1,949 1,932 1,812 102
Benefits and expenses:
Claims and other policy benefits 1,572 1,779 1,611 1,592 1,447 125
Future policy benefits remeasurement (gains) losses (21) 63 (20) 24 7 (28)
Interest credited 19 20 19 18 18 1
Policy acquisition costs and other insurance expenses 175 184 184 187 175 -
Other operating expenses 53 54 50 49 44 9
Total benefits and expenses 1,798 2,100 1,844 1,870 1,691 107
Income before income taxes $ 116 $ 30 $ 105 $ 62 $ 121 $ (5)
Loss and expense ratios:
Loss ratio (1) 90.4 % 96.3 % 91.1 % 92.3 % 90.0 % 0.4 %
Policy acquisition costs and other insurance expenses 10.2 % 9.6 % 10.5 % 10.7 % 10.8 % (0.6)%
Other operating expenses 3.1 % 2.8 % 2.9 % 2.8 % 2.7 % 0.4 %
Foreign currency effect on (2):
Net premiums $ 3 $ 3 $ 5 $ 3 $ 2 $ 1
Income before income taxes $ - $ - $ - $ - $ - $ -
Assumed life reinsurance in force (in billions) $ 1,709.1 $ 1,703.6 $ 1,693.1 $ 1,685.3 $ 1,676.8 $ 32.3
Assumed new business production (in billions) $ 41.0 $ 47.9 $ 36.7 $ 35.6 $ 34.1 $ 6.9
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Includes Claims and other policy holder benefits and Future policy benefits remeasurement (gains) losses
(2) Compared to comparable prior year period.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 1,715 $ 1,912 $ 1,746 $ 1,750 $ 1,615 $ 100
Net investment income 205 211 195 180 193 12
Investment related gains, net - - - - - -
Other revenue 6 2 6 3 5 1
Total revenues 1,926 2,125 1,947 1,933 1,813 113
Benefits and expenses:
Claims and other policy benefits 1,572 1,779 1,611 1,592 1,447 125
Future policy benefits remeasurement (gains) losses (21) 63 (20) 24 7 (28)
Interest credited 19 20 19 18 18 1
Policy acquisition costs and other insurance expenses 175 184 184 187 175 -
Other operating expenses 53 54 50 49 44 9
Total benefits and expenses 1,798 2,100 1,844 1,870 1,691 107
-
Adjusted operating income before income taxes 128 25 103 63 122 6
Notable items (1) - - 17 - -
Adjusted operating income excluding notable items, before income taxes $ 128 $ 25 $ 120 $ 63 $ 122 $ 6
Loss and expense ratios:
Loss ratio (2) 90.4 % 96.3 % 91.1 % 92.3 % 90.0 % 0.4 %
Policy acquisition costs and other insurance expenses 10.2 % 9.6 % 10.5 % 10.7 % 10.8 % (0.6)%
Other operating expenses 3.1 % 2.8 % 2.9 % 2.8 % 2.7 % 0.4 %
Foreign currency effect on (3):
Net premiums $ 3 $ 3 $ 5 $ 3 $ 2 $ 1
Adjusted operating income (loss) before income taxes $ - $ - $ - $ - $ - $ -
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(2) Includes Claims and other policy holder benefits and Future policy benefits remeasurement (gains) losses.
(3) Compared to comparable prior year period.

US FS 1

Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 1,916 $ 521 $ 820 $ 17 $ 163 $ 1,753
Net investment income 304 293 299 278 281 23
Investment related gains (losses), net 27 (158) (63) (68) 20 7
Other revenue 62 60 59 51 51 11
Total revenues 2,309 716 1,115 278 515 1,794
Benefits and expenses:
Claims and other policy benefits 2,079 585 851 45 199 1,880
Future policy benefits remeasurement (gains) losses 2 1 (25) (1) (4) 6
Market risk benefits remeasurement (gains) losses (35) 28 (21) (31) 14 (49)
Interest credited 148 126 137 133 129 19
Policy acquisition costs and other insurance expenses 80 78 47 49 48 32
Other operating expenses 18 18 18 15 15 3
Total benefits and expenses 2,292 836 1,007 210 401 1,891
Income (loss) before income taxes $ 17 $ (120) $ 108 $ 68 $ 114 $ (97)
Assumed life reinsurance in force (in billions) $ 10.1 $ 10.3 $ 5.1 $ 5.2 $ 5.2 $ 4.9
Assumed new business production (in billions) $ - $ 5.2 $ - $ - $ - $ -
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 1,916 $ 521 $ 820 $ 17 $ 163 $ 1,753
Net investment income 303 289 292 279 277 26
Other revenue 62 60 59 51 51 11
Total revenues 2,281 870 1,171 347 491 1,790
Benefits and expenses:
Claims and other policy benefits 1,956 551 851 45 199 1,757
Future policy benefits remeasurement (gains) losses 2 1 (25) (1) (4) 6
Interest credited 135 121 144 130 136 (1)
Policy acquisition costs and other insurance expenses 80 78 47 49 40 40
Other operating expenses 18 18 18 15 15 3
Total benefits and expenses 2,191 769 1,035 238 386 1,805
Adjusted operating income before income taxes 90 101 136 109 105 (15)
Notable items (1) - - (22) - - -
Adjusted operating income before income taxes excluding notable items $ 90 $ 101 $ 114 $ 109 $ 105 $ (15)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".

US FS 2

Reinsurance Group of America, Incorporated
U.S. and Latin America Financial Solutions
(Continued)
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
(USD millions, shown net of reinsurance ceded) 2024 2023 2023 2023 2023
Policyholder account balances
Fixed annuities (deferred) $ 9,981 $ 10,331 $ 11,066 $ 11,361 $ 11,699
Equity-indexed annuities $ 2,234 $ 2,354 $ 2,469 $ 2,580 $ 2,701
Bank-owned life insurance (BOLI) and universal life $ 2,063 $ 2,091 $ 2,480 $ 2,494 $ 2,505
Other policyholder account balances $ 46 $ 47 $ 51 $ 52 $ 75
Variable annuities account balances
No riders $ 629 $ 624 $ 578 $ 599 $ 598
GMDB only 793 739 742 738 734
GMIB only 14 13 16 16 16
GMAB only 2 2 2 2 2
GMWB only 862 858 814 883 866
GMDB / WB 166 162 156 169 168
Other 11 11 12 13 12
Total variable annuities account balances $ 2,477 $ 2,409 $ 2,320 $ 2,420 $ 2,396
Interest-sensitive contract liabilities not associated with policyholder account balances:
Guaranteed investment contracts, funding agreements and immediate annuities $ 693 $ 690 $ 707 $ 843 $ 828
Future policy benefits (at original discount rate) associated with:
Payout annuities $ 6,503 $ 4,524 $ 4,909 $ 4,181 $ 4,231
Other future policy benefits $ 59 $ 60 $ 60 $ 62 $ 58
Liability for market risk benefits:
Equity-indexed annuities $ 154 $ 159 $ 135 $ 140 $ 144
Variable annuities (liability) $ 74 $ 99 $ 89 $ 95 $ 117
Variable annuities (asset) $ 14 $ 9 $ 8 $ 6 $ 2
Net interest spread (1) 0.9 % 1.3 % 1.3 % 1.4 % 1.2 %
(1) Net interest spread for Asset-Intensive is calculated as net investment income less interest credited and the interest accretion on future policy benefits, divided by total investments and cash and cash equivalents

CAN

Reinsurance Group of America, Incorporated
Canada Traditional
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 318 $ 311 $ 302 $ 307 $ 295 $ 23
Net investment income 64 62 62 61 61 3
Investment related gains, net 1 3 - 4 2 (1)
Other revenue 3 - 2 1 1 2
Total revenues 386 376 366 373 359 27
-
Benefits and expenses: -
Claims and other policy benefits 283 294 284 282 270 13
Future policy benefits remeasurement (gains) losses (3) 4 16 (1) 3 (6)
Interest credited - - 1 - - -
Policy acquisition costs and other insurance expenses 47 46 46 47 45 2
Other operating expenses 12 11 13 10 12 -
Total benefits and expenses 339 355 360 338 330 9
-
Income before income taxes $ 47 $ 21 $ 6 $ 35 $ 29 $ 18
Loss and expense ratios:
Loss ratio (1) 88.1 % 95.8 % 99.3 % 91.5 % 92.5 % (4.4)%
Policy acquisition costs and other insurance expenses 14.8 % 14.8 % 15.2 % 15.3 % 15.3 % (0.5)%
Other operating expenses 3.8 % 3.5 % 4.3 % 3.3 % 4.1 % (0.3)%
Foreign currency effect on (2):
Net premiums $ 1 $ (1) $ (8) $ (16) $ (20) $ 21
Income before income taxes $ - $ 4 $ (1) $ (2) $ (2) $ 2
Creditor reinsurance net premiums $ 17 $ 18 $ 17 $ 18 $ 18 $ (1)
Assumed life reinsurance in force (in billions) $ 488.0 $ 493.5 $ 477.2 $ 484.6 $ 469.5 $ 18.5
Assumed new business production (in billions) $ 11.5 $ 11.1 $ 11.0 $ 11.2 $ 10.8 $ 0.7
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Includes Claims and other policy holder benefits and Future policy benefits remeasurement (gains) losses.
(2) Compared to comparable prior year period.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 318 $ 311 $ 302 $ 307 $ 295 $ 23
Net investment income 64 62 64 61 62 2
Investment related gains, net - 2 - 1 1 (1)
Other revenue 3 - 2 1 1 2
Total revenues 385 375 368 370 359 26
Benefits and expenses:
Claims and other policy benefits 283 294 284 282 270 13
Future policy benefits remeasurement (gains) losses (3) 4 16 (1) 3 (6)
Interest credited - - 1 - - -
Policy acquisition costs and other insurance expenses 47 46 46 47 45 2
Other operating expenses 12 11 11 10 12 -
Total benefits and expenses 339 355 358 338 330 9
Adjusted operating income (loss) before income taxes $ 46 $ 20 $ 10 $ 32 $ 29 $ 17
Notable items (1) - - 13 - - -
Adjusted operating income excluding notable items, before income taxes 46 20 23 32 29 17
Loss and expense ratios:
Loss ratio (2) 88.1 % 95.8 % 99.3 % 91.5 % 92.5 % (4.4)%
Policy acquisition costs and other insurance expenses 14.8 % 14.8 % 15.2 % 15.3 % 15.3 % (0.5)%
Other operating expenses 3.8 % 3.5 % 3.6 % 3.3 % 4.1 % (0.3)%
Foreign currency effect on (3):
Net premiums $ 1 $ (1) $ (8) $ (16) $ (20) $ 21
Adjusted operating income before income taxes $ - $ 5 $ (1) $ (2) $ (2) $ 2
Creditor reinsurance net premiums $ 17 $ 18 $ 17 $ 18 $ 18 $ (1)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(2) Includes Claims and other policy holder benefits and Future policy benefits remeasurement (gains) losses.
(3) Compared to comparable prior year period.

CAN Fin Sol

Reinsurance Group of America, Incorporated
Canada Financial Solutions (1)
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 23 $ 22 $ 22 $ 23 $ 23 $ -
Net investment income 1 1 1 1 1 -
Other revenue 3 4 3 2 3 -
Total revenues 27 27 26 26 27 -
Benefits and expenses:
Claims and other policy benefits 19 19 18 20 21 (2)
Future policy benefits remeasurement (gains) losses - - (23) (2) (5) 5
Policy acquisition costs and other insurance expenses 1 - 1 - 1 -
Other operating expenses - 2 - 2 - -
Total benefits and expenses 20 21 (4) 20 17 3
Income before income taxes $ 7 $ 6 $ 30 $ 6 $ 10 $ (3)
Foreign currency effect on (2):
Net premiums $ - $ 1 $ (1) $ (2) $ (1) $ 1
Income before income taxes $ - $ - $ - $ - $ (1) $ 1
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Canada Financial Solutions operations includes longevity and fee-based transactions.
(2) Compared to comparable prior year period.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 23 $ 22 $ 22 $ 23 $ 23 $ -
Net investment income 1 1 1 1 1 -
Other revenue 3 4 3 2 3 -
Total revenues 27 27 26 26 27 -
Benefits and expenses:
Claims and other policy benefits 19 19 18 20 21 (2)
Future policy benefits remeasurement (gains) losses - - (23) (2) (5) 5
Policy acquisition costs and other insurance expenses 1 - 1 - 1 -
Other operating expenses - 2 - 2 - -
Total benefits and expenses 20 21 (4) 20 17 3
Adjusted operating income before income taxes 7 6 30 6 10 (3)
Notable items (2) - - (22) - - -
Adjusted operating income excluding notable items, before income taxes $ 7 $ 6 $ 8 $ 6 $ 10 $ (3)
Foreign currency effect on (3):
Net premiums $ - $ 1 $ (1) $ (2) $ (1) $ 1
Adjusted operating income before income taxes $ - $ (1) $ - $ - $ (1) $ 1
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Canada Financial Solutions operations includes longevity and fee-based transactions.
(2) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(3) Compared to comparable prior year period.

EMEA

Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Traditional
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 496 $ 461 $ 447 $ 429 $ 438 $ 58
Net investment income 27 22 23 23 23 4
Other revenue 2 1 1 (1) (1) 3
Total revenues 525 484 471 451 460 65
Benefits and expenses:
Claims and other policy benefits 424 420 429 383 390 34
Future policy benefits remeasurement (gains) losses (5) 1 43 12 (8) 3
Policy acquisition costs and other insurance expenses 37 22 25 21 18 19
Other operating expenses 41 33 34 31 33 8
Total benefits and expenses 497 476 531 447 433 64
Income (loss) before income taxes $ 28 $ 8 $ (60) $ 4 $ 27 $ 1
Loss and expense ratios:
Loss ratio (1) 84.5 % 91.3 % 105.6 % 92.1 % 87.2 % (2.7)%
Policy acquisition costs and other insurance expenses 7.5 % 4.8 % 5.6 % 4.9 % 4.1 % 3.4 %
Other operating expenses 8.3 % 7.2 % 7.6 % 7.2 % 7.5 % 0.8 %
Foreign currency effect on (2):
Net premiums $ 7 $ 14 $ 20 $ (6) $ (41) $ 48
Income (loss) before income taxes $ - $ 1 $ (4) $ 1 $ (1) $ 1
Critical illness net premiums $ 32 $ 37 $ 34 $ 35 $ 33 $ (1)
Assumed life reinsurance in force (in billions) $ 985.1 $ 960.1 $ 814.5 $ 802.3 $ 759.6 $ 225.5
Assumed new business production (in billions) $ 38.0 $ 16.1 $ 30.9 $ 36.6 $ 30.1 $ 7.9
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Includes Claims and other policy holder benefits and Future policy benefits remeasurement (gains) losses.
(2) Compared to comparable prior year period.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 496 $ 461 $ 447 $ 429 $ 438 $ 58
Net investment income 27 22 23 23 23 4
Other revenue 2 1 1 (1) (1) 3
Total revenues 525 484 471 451 460 65
Benefits and expenses:
Claims and other policy benefits 424 420 429 383 390 34
Future policy benefits remeasurement (gains) losses (5) 1 43 12 (8) 3
Policy acquisition costs and other insurance expenses 37 22 25 21 18 19
Other operating expenses 31 33 33 31 33 (2)
Total benefits and expenses 487 476 530 447 433 54
Adjusted operating income (loss) before income taxes 38 8 (59) 4 27 11
Notable items (1) - - 47 - -
Adjusted operating income excluding notable items, before income taxes $ 38 $ 8 $ (12) $ 4 $ 27 $ 11
Loss and expense ratios:
Loss ratio (2) 84.5 % 91.3 % 105.6 % 92.1 % 87.2 % (2.7)%
Policy acquisition costs and other insurance expenses 7.5 % 4.8 % 5.6 % 4.9 % 4.1 % 3.4 %
Other operating expenses 6.3 % 7.2 % 7.4 % 7.2 % 7.5 % (1.2)%
Foreign currency effect on (3):
Net premiums $ 7 $ 14 $ 20 $ (6) $ (41) $ 48
Adjusted operating income (loss) before income taxes $ - $ 1 $ (4) $ 1 $ (1) $ 1
Critical illness net premiums $ 32 $ 37 $ 34 $ 35 $ 33 $ (1)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(2) Includes Claims and other policy holder benefits and Future policy benefits remeasurement (gains) losses.
(3) Compared to comparable prior year period.

EMEA Fin Sol

Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Financial Solutions (1)
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 146 $ 125 $ 118 $ 90 $ 125 $ 21
Net investment income 69 62 56 45 46 23
Investment related gains (losses), net (15) (8) (21) (9) (6) (9)
Other revenue 11 1 7 4 4 7
Total revenues 211 180 160 130 169 42
Benefits and expenses:
Claims and other policy benefits 122 96 95 68 104 18
Future policy benefits remeasurement (gains) losses 2 (42) (33) (5) (9) 11
Interest credited 6 3 (2) (2) - 6
Policy acquisition costs and other insurance expenses 2 1 2 2 2 -
Other operating expenses 15 16 14 15 13 2
Total benefits and expenses 147 74 76 78 110 37
Income before income taxes $ 64 $ 106 $ 84 $ 52 $ 59 $ 5
Foreign currency effect on (2):
Net premiums $ 5 $ 6 $ 9 $ (1) $ (12) $ 17
Income before income taxes $ 3 $ 5 $ 6 $ - $ (6) $ 9
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Europe, Middle East and Africa Financial Solutions operations includes longevity, asset-intensive and fee-based transactions.
(2) Compared to comparable prior year period.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 146 $ 125 $ 118 $ 90 $ 125 $ 21
Net investment income 69 59 59 48 49 20
Investment related gains (losses), net (1) (2) 2 4 1 (2)
Other revenue 11 1 7 4 4 7
Total revenues 225 183 186 146 179 46
Benefits and expenses:
Claims and other policy benefits 122 96 95 68 104 18
Future policy benefits remeasurement (gains) losses 2 (42) (33) (5) (9) 11
Interest credited 7 - - - - 7
Policy acquisition costs and other insurance expenses 2 1 2 2 2 -
Other operating expenses 15 16 14 15 13 2
Total benefits and expenses 148 71 78 80 110 38
Adjusted operating income (loss) before income taxes 77 112 108 66 69 8
Notable items (2) - - (34) - - -
Adjusted operating income excluding notable items, before income taxes $ 77 $ 112 $ 74 $ 66 $ 69 $ 8
Foreign currency effect on (3):
Net premiums $ 5 $ 6 $ 9 $ (1) $ (12) $ 17
Adjusted operating income before income taxes $ 3 $ 5 $ 8 $ - $ (7) $ 10
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Europe, Middle East and Africa Financial Solutions operations includes longevity, asset-intensive and fee-based transactions.
(2) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(3) Compared to comparable prior year period.

AP

Reinsurance Group of America, Incorporated
Asia Pacific Traditional
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 716 $ 709 $ 737 $ 677 $ 662 $ 54
Net investment income 65 59 60 62 61 4
Investment related gains, net - 1 1 2 3 (3)
Other revenue 10 (1) 3 11 3 7
Total revenues 791 768 801 752 729 62
Benefits and expenses:
Claims and other policy benefits 586 594 604 579 563 23
Future policy benefits remeasurement (gains) losses 1 6 (39) (14) (9) 10
Policy acquisition costs and other insurance expenses 45 40 46 44 46 (1)
Other operating expenses 50 58 56 54 50 -
Total benefits and expenses 682 698 667 663 650 32
Income before income taxes $ 109 $ 70 $ 134 $ 89 $ 79 $ 30
Loss and expense ratios:
Loss ratio (1) 82.0 % 84.6 % 76.7 % 83.5 % 83.7 % (1.7)%
Policy acquisition costs and other insurance expenses 6.3 % 5.6 % 6.2 % 6.5 % 6.9 % (0.6)%
Other operating expenses 7.0 % 8.2 % 7.6 % 8.0 % 7.6 % (0.6)%
Foreign currency effect on (2):
Net premiums $ (23) $ (3) $ (10) $ (21) $ (33) $ 10
Income (loss) before income taxes $ (3) $ - $ - $ (2) $ (3) $ -
Critical illness net premiums $ 352 $ 344 $ 368 $ 341 $ 299 $ 53
Assumed life reinsurance in force (in billions) $ 528.9 $ 528.6 $ 501.8 $ 495.4 $ 508.2 $ 20.7
Assumed new business production (in billions) $ 17.6 $ 17.3 $ 17.1 $ 4.7 $ 3.9 $ 13.7
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Includes Claims and other policy holder benefits and Future policy benefits remeasurement (gains) losses.
(2) Compared to comparable prior year period.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 716 $ 709 $ 737 $ 677 $ 662 $ 54
Net investment income 65 59 60 62 61 4
Investment related gains, net - 1 1 2 3 (3)
Other revenue 10 (1) 3 11 3 7
Total revenues 791 768 801 752 729 62
Benefits and expenses:
Claims and other policy benefits 586 594 604 579 563 23
Future policy benefits remeasurement (gains) losses 1 6 (39) (14) (9) 10
Policy acquisition costs and other insurance expenses 45 40 46 44 46 (1)
Other operating expenses 50 57 56 54 50 -
Total benefits and expenses 682 697 667 663 650 32
Adjusted operating income before income taxes 109 71 134 89 79 30
Notable items (1) - - (2) - - -
Adjusted operating income excluding notable items, before income taxes $ 109 $ 71 $ 132 $ 89 $ 79 $ 30
Loss and expense ratios:
Loss ratio (2) 82.0 % 84.6 % 76.7 % 83.5 % 83.7 % (1.7)%
Policy acquisition costs and other insurance expenses 6.3 % 5.6 % 6.2 % 6.5 % 6.9 % (0.6)%
Other operating expenses 7.0 % 8.0 % 7.6 % 8.0 % 7.6 % (0.6)%
Foreign currency effect on (3):
Net premiums $ (23) $ (3) $ (10) $ (21) $ (33) $ 10
Adjusted operating income (loss) before income taxes $ (2) $ 1 $ (1) $ (3) $ (2) $ -
Critical illness net premiums $ 352 $ 344 $ 368 $ 341 $ 299 $ 53
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(2) Includes Claims and other policy holder benefits and Future policy benefits remeasurement (gains) losses.
(3) Compared to comparable prior year period.

AP Fin Sol

Reinsurance Group of America, Incorporated
Asia Pacific Financial Solutions (1)
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 46 $ 47 $ 63 $ 44 $ 64 $ (18)
Net investment income 120 136 117 125 108 12
Investment related gains (losses), net (71) 61 (66) (51) (51) (20)
Other revenue 48 9 16 18 10 38
Total revenues 143 253 130 136 131 12
Benefits and expenses:
Claims and other policy benefits 47 50 67 44 69 (22)
Future policy benefits remeasurement (gains) losses - - (1) - (1) 1
Interest credited 51 49 54 46 54 (3)
Policy acquisition costs and other insurance expenses 25 25 21 19 16 9
Other operating expenses 7 7 5 7 6 1
Total benefits and expenses 130 131 146 116 144 (14)
Income (loss) before income taxes $ 13 $ 122 $ (16) $ 20 $ (13) $ 26
Foreign currency effect on (2):
Net premiums $ (5) $ (2) $ (2) $ (2) $ (7) $ 2
Income (loss) before income taxes $ 5 $ (6) $ 1 $ - $ - $ 5
Assumed life reinsurance in force (in billions) $ 8.5 $ 8.0 $ 7.7 $ 6.7 $ 7.4 $ 1.1
Assumed new business production (in billions) $ 1.0 $ - $ 1.0 $ 0.1 $ 1.7 $ (0.7)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Asia Pacific Financial Solutions operations includes asset-intensive and fee-based transactions.
(2) Compared to comparable prior year period.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net premiums $ 46 $ 47 $ 63 $ 44 $ 64 $ (18)
Net investment income 120 136 117 125 108 12
Investment related gains, net 3 2 2 4 4 (1)
Other revenue 20 12 8 5 8 12
Total revenues 189 197 190 178 184 5
-
Benefits and expenses:
Claims and other policy benefits 47 50 67 44 69 (22)
Future policy benefits remeasurement (gains) losses - - (1) - (1) 1
Interest credited 51 49 54 46 54 (3)
Policy acquisition costs and other insurance expenses 25 25 21 19 16 9
Other operating expenses 7 7 5 7 6 1
Total benefits and expenses 130 131 146 116 144 (14)
Adjusted operating income before income taxes 59 66 44 62 40 19
Notable items (2) - - - - - -
Adjusted operating income excluding notable items, before income taxes $ 59 $ 66 $ 44 $ 62 $ 40 $ 19
Foreign currency effect on (3):
Net premiums $ (5) $ (2) $ (2) $ (2) $ (7) $ 2
Adjusted operating income before income taxes $ (1) $ (2) $ (2) $ (2) $ (3) $ 2
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Asia Pacific Financial Solutions operations includes asset-intensive and fee-based transactions.
(2) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(3) Compared to comparable prior year period.

Corp

Reinsurance Group of America, Incorporated
Corporate and Other
(USD millions)
Three Months Ended
GAAP Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net investment income $ 106 $ 111 $ 109 $ 82 $ 82 $ 24
Investment related gains (losses), net (79) (60) 21 - (44) (35)
Other revenue 4 22 5 (4) 11 (7)
Total revenues 31 73 135 78 49 (18)
Benefits and expenses:
Interest credited 30 19 14 14 14 16
Policy acquisition costs and other insurance income (25) (27) (24) (20) (20) (5)
Other operating expenses 87 91 84 92 77 10
Interest expense 68 69 72 63 53 15
Total benefits and expenses 160 152 146 149 124 36
Loss before income taxes $ (129) $ (79) $ (11) $ (71) $ (75) $ (54)
Foreign currency effect on (1):
Loss before income taxes $ 1 $ (5) $ 1 $ (1) $ - $ 1
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Compared to comparable prior year period.
Three Months Ended
Adjusted Operating Income Statements March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Revenues:
Net investment income $ 106 $ 111 $ 109 $ 82 $ 82 $ 24
Investment related gains, net 4 5 2 3 4 -
Other revenue 12 15 9 6 13 (1)
Total revenues 122 131 120 91 99 23
Benefits and expenses:
Interest credited 30 19 14 14 14 16
Policy acquisition costs and other insurance income (25) (27) (24) (20) (20) (5)
Other operating expenses 87 92 84 89 77 10
Interest expense 68 70 71 63 53 15
Total benefits and expenses 160 154 145 146 124 36
Adjusted operating income (loss) before income taxes (38) (23) (25) (55) (25) (13)
Notable items (1) - - - - - -
Adjusted operating income excluding notable items, before income taxes $ (38) $ (23) $ (25) $ (55) $ (25) $ (13)
Foreign currency effect on (2):
Adjusted operating income (loss) before income taxes $ 1 $ (6) $ 1 $ - $ - $ 1
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(2) Compared to comparable prior year period.

NI Summary

Reinsurance Group of America, Incorporated
Summary of Segment GAAP Income
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
(USD millions) 2024 2023 2023 2023 2023 Change
U.S. and Latin America:
Traditional $ 116 $ 30 $ 105 $ 62 $ 121 $ (5)
Financial Solutions 17 (120) 108 68 114 (97)
Total U.S. and Latin America 133 (90) 213 130 235 (102)
Canada:
Traditional $ 47 $ 21 $ 6 $ 35 $ 29 $ 18
Financial Solutions 7 6 30 6 10 (3)
Total Canada 54 27 36 41 39 15
Europe, Middle East and Africa:
Traditional $ 28 $ 8 $ (60) $ 4 $ 27 $ 1
Financial Solutions 64 106 84 52 59 5
Total Europe, Middle East and Africa 92 114 24 56 86 6
Asia Pacific:
Traditional $ 109 $ 70 $ 134 $ 89 $ 79 $ 30
Financial Solutions 13 122 (16) 20 (13) 26
Total Asia Pacific 122 192 118 109 66 56
Corporate and Other (129) (79) (11) (71) (75) (54)
Consolidated income before income taxes $ 272 $ 164 $ 380 $ 265 $ 351 $ (79)
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.

OI Summary

Reinsurance Group of America, Incorporated
Summary of Segment Adjusted Operating Income
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
(USD millions) 2024 2023 2023 2023 2023 Change
U.S. and Latin America:
Traditional $ 128 $ 25 $ 103 $ 63 $ 122 $ 6
Financial Solutions 90 101 136 109 105 (15)
Total U.S. and Latin America 218 126 239 172 227 (9)
Canada:
Traditional $ 46 $ 20 $ 10 $ 32 $ 29 $ 17
Financial Solutions 7 6 30 6 10 (3)
Total Canada 53 26 40 38 39 14
Europe, Middle East and Africa:
Traditional $ 38 $ 8 $ (59) $ 4 $ 27 $ 11
Financial Solutions 77 112 108 66 69 8
Total Europe, Middle East and Africa 115 120 49 70 96 19
Asia Pacific:
Traditional $ 109 $ 71 $ 134 $ 89 $ 79 $ 30
Financial Solutions 59 66 44 62 40 19
Total Asia Pacific 168 137 178 151 119 49
Corporate and Other (38) (23) (25) (55) (25) (13)
Consolidated adjusted operating income before income taxes $ 516 $ 386 $ 481 $ 376 $ 456 $ 60
Notable items (1) - - (3) - - -
Consolidated adjusted operating income (loss) excluding notable items before income taxes $ 516 $ 386 $ 478 $ 376 $ 456 $ 60
See appendix for reconciliation of GAAP income before income taxes to adjusted operating income before income taxes.
(1) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".

Inv1

Reinsurance Group of America, Incorporated
Investments
(USD millions)
Cash and Invested Assets
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023
Fixed maturity securities, available-for-sale (1) $ 65,827 $ 60,467 $ 54,171 $ 56,236 $ 56,085
Equity securities 144 139 133 136 138
Mortgage loans 7,539 7,377 7,231 7,038 6,833
Policy loans 1,198 1,206 1,180 1,202 1,221
Funds withheld at interest 5,642 5,683 5,725 5,862 5,976
Limited partnerships and real estate joint ventures 2,697 2,635 2,560 2,473 2,405
Short-term investments 327 222 141 224 246
Other invested assets 1,140 1,171 1,091 1,119 1,111
Cash and cash equivalents 5,935 2,970 2,820 2,598 3,294
Total cash and invested assets $ 90,449 $ 81,870 $ 75,052 $ 76,888 $ 77,309
(1) The Company holds various types of fixed maturity securities available-for-sale and classifies them as corporate securities ("Corporate"), Canadian and Canadian provincial government securities ("Canadian government"), Japanese government and agencies ("Japanese government"), asset-backed securities ("ABS"), commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), U.S. government and agencies ("U.S. government"), state and political subdivisions, and other foreign government, supernational and foreign government-sponsored enterprises ("Other foreign government").
Investment Income and Yield Summary
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Average invested assets at amortized cost (1) $ 38,483 $ 37,169 $ 37,051 $ 36,124 $ 35,863 $ 2,620
Net investment income (1) $ 444 $ 443 $ 430 $ 393 $ 415 $ 29
Annualized investment yield (ratio of net investment income to average invested assets at amortized cost) (1) 4.70 % 4.86 % 4.72 % 4.42 % 4.71 % (1) bp
Variable investment income ("VII") (included in net investment income) (1) $ 16 $ 44 $ 39 $ 17 $ 39 $ (23)
Annualized investment yield excluding VII (ratio of net investment income, excluding VII, to average invested assets, excluding assets with only VII, at amortized cost) (1) 4.75 % 4.60 % 4.51 % 4.43 % 4.45 % 30 bps
(1) Excludes spread related business (e.g. coinsurance of annuities).

Inv2

Reinsurance Group of America, Incorporated
Investments
(USD millions)
Fixed Maturity Securities
March 31, 2024
Estimated
Amortized Allowance for Unrealized Unrealized Fair % of
Cost Credit Losses Gains Losses Value Total
Available-for-sale:
Corporate $ 44,575 $ 79 $ 485 $ 3,933 $ 41,048 62.4 %
Canadian government 3,455 - 326 68 3,713 5.6 %
Japanese government 5,722 - 4 522 5,204 7.9 %
ABS 5,137 15 30 207 4,945 7.5 %
CMBS 2,002 1 14 154 1,861 2.8 %
RMBS 1,250 - 10 110 1,150 1.7 %
U.S. government 3,028 - 2 244 2,786 4.2 %
State and political subdivisions 1,249 - 6 139 1,116 1.7 %
Other foreign government 4,372 - 39 407 4,004 6.2 %
Total fixed maturity securities $ 70,790 $ 95 $ 916 $ 5,784 $ 65,827 100.0 %
December 31, 2023
Estimated
Amortized Allowance for Unrealized Unrealized Fair % of
Cost Credit Losses Gains Losses Value Total
Available-for-sale:
Corporate $ 42,014 $ 62 $ 554 $ 3,751 $ 38,755 64.1 %
Canadian government 3,477 - 473 33 3,917 6.5 %
Japanese government 3,630 - 3 502 3,131 5.2 %
ABS 4,661 12 19 239 4,429 7.3 %
CMBS 1,969 1 7 202 1,773 2.9 %
RMBS 1,173 - 8 102 1,079 1.8 %
U.S. government 2,725 - 9 214 2,520 4.2 %
State and political subdivisions 1,236 - 7 129 1,114 1.8 %
Other foreign government 4,092 - 45 388 3,749 6.2 %
Total fixed maturity securities $ 64,977 $ 75 $ 1,125 $ 5,560 $ 60,467 100.0 %

Inv3

Reinsurance Group of America, Incorporated
Investments
(USD millions)
Corporate Fixed Maturity Securities by Industry
March 31, 2024 December 31, 2023
Amortized Cost Estimated Fair Value % of Total Average Credit Ratings (1) Amortized Cost Estimated Fair Value % of Total Average Credit Ratings (1)
Financial institutions
Banking $ 6,865 $ 6,516 15.9 % A- $ 6,474 $ 6,109 15.8 % A-
Brokerage/asset managers/exchanges 1,362 1,237 3.0 % A- 1,320 1,194 3.1 % A-
Finance companies 391 356 0.8 % BBB+ 367 330 0.9 % BBB+
Insurance 4,621 4,181 10.2 % A- 4,507 4,086 10.5 % A-
REITs 1,515 1,386 3.4 % A- 1,401 1,269 3.2 % BBB+
Other finance 1,034 850 2.1 % A- 983 801 2.1 % A-
Total financial institutions $ 15,788 $ 14,526 35.4 % $ 15,052 $ 13,789 35.6 %
Industrials
Basic $ 1,979 $ 1,817 4.4 % BBB+ $ 1,940 $ 1,797 4.6 % BBB+
Capital goods 1,842 1,740 4.2 % BBB 1,664 1,531 4.0 % BBB
Communications 2,965 2,709 6.6 % BBB 2,853 2,635 6.8 % BBB
Consumer cyclical 2,570 2,401 5.8 % BBB+ 2,286 2,139 5.5 % BBB+
Consumer noncyclical 5,345 4,899 11.9 % BBB+ 5,057 4,661 12.0 % BBB+
Energy 2,497 2,330 5.8 % A- 2,317 2,171 5.6 % A-
Technology 1,997 1,872 4.6 % BBB+ 1,899 1,819 4.7 % BBB+
Transportation 2,347 2,140 5.2 % A- 2,286 2,100 5.4 % A-
Other industrial 1,064 1,038 2.5 % BBB 1,111 1,082 2.8 % BBB
Total industrials $ 22,606 $ 20,946 51.0 % $ 21,413 $ 19,935 51.4 %
Utilities
Electric $ 4,871 $ 4,401 10.7 % A- $ 4,371 $ 3,973 10.3 % A-
Natural gas 835 747 1.9 % A- 770 694 1.8 % A-
Other utility 475 428 1.0 % BBB+ 408 364 0.9 % BBB+
Total utilities $ 6,181 $ 5,576 13.6 % $ 5,549 $ 5,031 13.0 %
Total $ 44,575 $ 41,048 100.0 % BBB+ $ 42,014 $ 38,755 100.0 % BBB+
(1) The Average Credit Rating designations are based on the ratings from nationally recognized statistical rating organizations (NRSRO), primarily those assigned by Moody's, S&P and Fitch.

Inv4

Reinsurance Group of America, Incorporated
Investments
(USD millions)
Ratings of Fixed Maturity Securities
March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
NAIC Designation (1) Rating Agency Designation (2) Amortized Cost Estimated Fair Value % of Total Amortized Cost Estimated Fair Value % of Total Amortized Cost Estimated Fair Value % of Total Amortized Cost Estimated Fair Value % of Total Amortized Cost Estimated Fair Value % of Total
1 AAA/AA/A $ 46,541 $ 43,336 65.8 % $ 41,469 $ 38,739 64.1 % $ 38,876 $ 33,799 62.4 % $ 38,928 $ 35,512 63.1 % $ 38,291 $ 35,308 63.0 %
2 BBB 20,527 18,951 28.8 % 19,793 18,261 30.2 % 19,959 17,134 31.6 % 19,840 17,517 31.2 % 19,832 17,658 31.5 %
3 BB 3,039 2,952 4.5 % 3,068 2,956 4.9 % 2,902 2,780 5.1 % 2,919 2,801 5.0 % 2,811 2,698 4.8 %
4 B 515 468 0.8 % 479 396 0.7 % 439 368 0.7 % 347 328 0.6 % 402 340 0.6 %
5 CCC 123 98 0.1 % 116 92 0.1 % 104 81 0.2 % 99 69 0.1 % 100 69 0.1 %
6 In or near default 45 22 - % 52 23 - % 52 9 - % 52 9 - % 58 12 - %
Total $ 70,790 $ 65,827 100.0 % $ 64,977 $ 60,467 100.0 % $ 62,332 $ 54,171 100.0 % $ 62,185 $ 56,236 100.0 % $ 61,494 $ 56,085 100.0 %
(1) Structured securities held by the Company's insurance subsidiaries that maintain the NAIC statutory basis of accounting utilize the NAIC rating methodology.
(2) The Rating Agency Designation includes all "+" or "-" at that rating level (e. g. "BBB" includes "BBB+", "BBB", and "BBB-").
Structured Fixed Maturity Securities
March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
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
ABS:
Collateralized loan obligations ("CLOs") $ 2,540 $ 2,518 31.6 % $ 2,086 $ 2,048 28.1 % $ 2,022 $ 1,967 28.2 % $ 1,936 $ 1,857 26.9 % $ 1,880 $ 1,775 26.1 %
ABS, excluding CLOs 2,597 2,427 30.5 % 2,575 2,381 32.7 % 2,540 2,269 32.5 % 2,574 2,308 33.5 % 2,590 2,328 34.2 %
Total ABS 5,137 4,945 62.1 % 4,661 4,429 60.8 % 4,562 4,236 60.7 % 4,510 4,165 60.4 % 4,470 4,103 60.3 %
CMBS 2,002 1,861 23.4 % 1,969 1,773 24.3 % 1,959 1,710 24.5 % 1,932 1,699 24.6 % 1,882 1,670 24.6 %
RMBS
Agency 436 385 4.8 % 444 398 5.5 % 454 388 5.6 % 464 413 6.0 % 473 432 6.4 %
Non-agency 814 765 9.7 % 729 681 9.4 % 718 642 9.2 % 681 624 9.0 % 647 592 8.7 %
Total RMBS 1,250 1,150 14.5 % 1,173 1,079 14.9 % 1,172 1,030 14.8 % 1,145 1,037 15.0 % 1,120 1,024 15.1 %
Total $ 8,389 $ 7,956 100.0 % $ 7,803 $ 7,281 100.0 % $ 7,693 $ 6,976 100.0 % $ 7,587 $ 6,901 100.0 % $ 7,472 $ 6,797 100.0 %

Inv5

Reinsurance Group of America, Incorporated
Investments
(USD millions)
Fixed Maturity Securities Below Amortized Cost (1)
March 31, 2024
Less than 12 months Equal to or greater than 12 months Total
Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses
Investment grade securities:
Corporate $ 4,063 $ 89 $ 23,710 $ 3,753 $ 27,773 $ 3,842
Canadian government 291 14 433 54 724 68
Japanese government 2,728 63 2,013 459 4,741 522
ABS 560 8 2,883 191 3,443 199
CMBS 108 1 1,266 143 1,374 144
RMBS 161 3 683 107 844 110
U.S. government 1,932 14 654 230 2,586 244
State and political subdivisions 119 3 815 136 934 139
Other foreign government 466 6 2,190 348 2,656 354
Total investment grade securities $ 10,428 $ 201 $ 34,647 $ 5,421 $ 45,075 $ 5,622
Below investment grade securities:
Corporate 246 25 512 66 758 91
ABS 10 1 62 7 72 8
CMBS - - 4 1 4 1
Other foreign government - - 193 53 193 53
Total below investment grade securities $ 256 $ 26 $ 771 $ 127 $ 1,027 $ 153
Total fixed maturity securities $ 10,684 $ 227 $ 35,418 $ 5,548 $ 46,102 $ 5,775
(1) Included in the table above are securities for which an allowance for credit loss has not been recorded.
December 31, 2023
Less than 12 months Equal to or greater than 12 months Total
Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses
Investment grade securities:
Corporate $ 2,134 $ 70 $ 24,207 $ 3,524 $ 26,341 $ 3,594
Canadian government - - 459 33 459 33
Japanese government 876 50 2,193 452 3,069 502
ABS 336 5 3,025 223 3,361 228
CMBS 160 5 1,328 190 1,488 195
RMBS 115 3 681 99 796 102
U.S. government 614 10 717 204 1,331 214
State and political subdivisions 73 1 864 128 937 129
Other foreign government 254 3 2,290 333 2,544 336
Total investment grade securities $ 4,562 $ 147 $ 35,764 $ 5,186 $ 40,326 $ 5,333
Below investment grade securities:
Corporate 295 36 649 121 944 157
ABS - - 68 10 68 10
CMBS - - 4 1 4 1
Other foreign government - - 193 52 193 52
Total below investment grade securities $ 295 $ 36 $ 914 $ 184 $ 1,209 $ 220
Total fixed maturity securities $ 4,857 $ 183 $ 36,678 $ 5,370 $ 41,535 $ 5,553
(1) Included in the table above are securities for which an allowance for credit loss has not been recorded.

Inv6

Reinsurance Group of America, Incorporated
Investments
(USD millions)
Consolidated Investment Related Gains and Losses
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
Fixed maturity securities available-for-sale:
Change in allowance for credit losses $ (20) $ (7) $ 7 $ 4 $ (42) $ 22
Impairments on fixed maturities - (2) - - (1) 1
Realized gains on investment activity 32 18 12 11 31 1
Realized losses on investment activity (134) (102) (61) (37) (75) (59)
Net gains (losses) on fixed maturity securities available-for-sale (122) (93) (42) (22) (87) (35)
Net gains (losses) on equity securities 4 3 (2) (4) 2 2
Change in mortgage loan allowance for credit losses (10) 7 (17) (9) 3 (13)
Limited partnerships and real estate joint venture impairment losses (8) - - - - (8)
Change in fair value of certain limited partnership investments 1 16 25 10 (3) 4
Other, net 8 - 7 15 2 6
Freestanding derivatives (1):
Interest rate swaps (31) 59 (64) (30) 20 (51)
Interest rate options (3) (23) 16 (3) (23) 20
Total return swaps 4 14 (8) 5 3 1
Interest rate futures 1 (1) - 2 - 1
Foreign currency swaps 14 (3) 8 12 - 14
Foreign currency swaps - hedged (1) (2) (1) - (1) -
Foreign currency forwards (64) 32 (37) (74) (19) (45)
Equity options (4) (6) 3 (11) (14) 10
Equity futures (17) (23) 11 (10) (9) (8)
Credit default swaps 2 47 (26) 10 11 (9)
CPI swaps - (1) - 6 1 (1)
Total free-standing derivatives (99) 93 (98) (93) (31) (68)
Embedded derivatives 77 (181) 1 (20) 37 40
Net gains (losses) on total derivatives (22) (88) (97) (113) 6 (28)
Total investment related gains, net $ (149) $ (155) $ (126) $ (123) $ (77) $ (72)
(1) Freestanding derivatives are non-hedged unless specified.

APPENDIX

Appendix
Reconciliations of GAAP to Non-GAAP Measures

Non-GAAP Recon Inc to Op Inc

Reinsurance Group of America, Incorporated
Reconciliations of GAAP Income to Adjusted Operating Income
(USD millions)
Three Months Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023 Change
U.S. and Latin America Traditional
Income (loss) before income taxes $ 116 $ 30 $ 105 $ 62 $ 121 $ (5)
Investment and derivative (gains) losses (1) - (2) - - - -
Funds withheld losses - investment income - 1 - - - -
Change in fair value of funds withheld embedded derivatives (1) 12 (4) (2) 1 1 11
Adjusted operating income before income taxes 128 25 103 63 122 6
Notable items (2) - - 17 - - -
Adjusted operating income excluding notable items, before income taxes $ 128 $ 25 $ 120 $ 63 $ 122 $ 6
U.S. and Latin America Financial Solutions
Income (loss) before income taxes $ 17 $ (120) $ 108 $ 68 $ 114 $ (97)
Market risk benefits remeasurement (gains) losses (35) 28 (21) (31) 14 (49)
Investment and derivative (gains) losses (1) 62 (27) 62 49 18 44
Change in fair value of funds withheld embedded derivatives (1) (89) 185 1 19 (38) (51)
Funds withheld (gains) losses - investment income (1) (4) (7) 1 (4) 3
EIA embedded derivatives - interest credited 13 5 (7) 3 (7) 20
Other (3) 123 34 - - 8 115
Adjusted operating income before income taxes 90 101 136 109 105 (15)
Notable items (2) - - (22) - - -
Adjusted operating income excluding notable items, before income taxes $ 90 $ 101 $ 114 $ 109 $ 105 $ (15)
Canada Traditional
Income before income taxes $ 47 $ 21 $ 6 $ 35 $ 29 $ 18
Investment and derivative (gains) losses (1) (1) (1) - (3) (1) -
Investment income - non-operating FWAI - - 2 - 1 (1)
Other Other - - 2 - - -
Adjusted operating income before income taxes 46 20 10 32 29 17
Notable items (2) - - 13 - - -
Adjusted operating income excluding notable items, before income taxes $ 46 $ 20 $ 23 $ 32 $ 29 $ 17
Canada Financial Solutions
Income before income taxes Income (loss) before income taxes $ 7 $ 6 $ 30 $ 6 $ 10 $ (3)
Adjusted operating income before income taxes 7 6 30 6 10 (3)
Notable items (2) - - (22) - - -
Adjusted operating income excluding notable items, before income taxes $ 7 $ 6 $ 8 $ 6 $ 10 $ (3)
Europe, Middle East and Africa Traditional
Income (loss) before income taxes $ 28 $ 8 $ (60) $ 4 $ 27 $ 1
Other Other 10 - 1 - - 10
Adjusted operating income (loss) before income taxes 38 8 (59) 4 27 11
Notable items (2) - - 47 - - -
Adjusted operating income (loss) excluding notable items, before income taxes $ 38 $ 8 $ (12) $ 4 $ 27 $ 11
Europe, Middle East and Africa Financial Solutions
Income before income taxes $ 64 $ 106 $ 84 $ 52 $ 59 $ 5
Investment and derivative losses (1) 14 6 23 13 7 7
Investment income - non-operating FWAI (1) - 1 1 3 (4)
Investment (income) loss on unit-linked variable annuities 1 (3) 2 2 - 1
Interest credited on unit-linked variable annuities (1) 3 (2) (2) - (1)
Adjusted operating income before income taxes 77 112 108 66 69 8
Notable items (2) - - (34) - - -
Adjusted operating income excluding notable items, before income taxes $ 77 $ 112 $ 74 $ 66 $ 69 $ 8
Asia Pacific Traditional
Income before income taxes $ 109 $ 70 $ 134 $ 89 $ 79 $ 30
Other - 1 - - - -
Adjusted operating income before income taxes 109 71 134 89 79 30
Notable items (2) - - (2) - - -
Adjusted operating income excluding notable items, before income taxes $ 109 $ 71 $ 132 $ 89 $ 79 $ 30
Asia Pacific Financial Solutions
Income (loss) before income taxes $ 13 $ 122 $ (16) $ 20 $ (13) $ 26
Investment and derivative (gains) losses (1) 74 (59) 68 55 55 19
Other (28) 3 (8) (13) (2) (26)
Adjusted operating income before income taxes 59 66 44 62 40 19
Notable items (2) - - - - - -
Adjusted operating income excluding notable items, before income taxes $ 59 $ 66 $ 44 $ 62 $ 40 $ 19
Corporate and Other
Income (loss) before income taxes $ (129) $ (79) $ (11) $ (71) $ (75) $ (54)
Investment and derivative (gains) losses (1) 83 65 (19) 3 48 35
Interest expense on uncertain tax positions - (1) 1 - - -
Other 8 (8) 4 13 2 6
Adjusted operating income (loss) before income taxes (38) (23) (25) (55) (25) (13)
Notable items (2) - - - - - -
Adjusted operating income (loss) excluding notable items, before income taxes $ (38) $ (23) $ (25) $ (55) $ (25) $ (13)
(1) Included in "Investment related gains (losses), net".
(2) Represents the impact of changes in actuarial assumptions on business subject to LDTI recorded in "Future policy benefits remeasurement (gains) losses".
(3) Includes pension risk transfer day one loss and other immaterial items.

Non-GAAP Rec Equity ex AOCI

Reinsurance Group of America, Incorporated
Reconciliations of RGA, Inc. Shareholders' Equity to RGA, Inc. Shareholders' Equity Excluding AOCI
(USD millions except per share data)
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023
RGA, Inc. shareholders' equity $ 9,468 $ 9,081 $ 8,063 $ 7,805 $ 7,626
Less effect of AOCI:
Accumulated currency translation adjustments 57 68 (33) 26 (94)
Unrealized (depreciation) appreciation of securities (4,062) (3,667) (6,659) (4,879) (4,393)
Effect of updating discount rates on future policy benefits 3,906 3,256 5,366 3,460 3,034
Change in instrument-specific credit risk for market risk benefits 3 3 7 13 14
Pension and postretirement benefits (29) (29) (14) (18) (22)
RGA, Inc. shareholders' equity, excluding AOCI 9,593 9,450 9,396 9,203 9,087
Year-to-date notable items, net of tax - - - - -
RGA, Inc. shareholders' equity, excluding AOCI and notable items $ 9,593 $ 9,450 $ 9,396 $ 9,203 $ 9,087
Reconciliations of Book Value Per Share to Book Value Per Share Excluding AOCI
March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2023 2023 2023 2023
Book value per share $ 143.92 $ 138.39 $ 122.40 $ 117.87 $ 114.60
Less effect of AOCI:
Accumulated currency translation adjustment 0.88 1.04 (0.49) 0.38 (1.41)
Unrealized (depreciation) appreciation of securities (61.74) (55.88) (101.10) (73.69) (66.02)
Effect of updating discount rates on future policy benefits 59.36 49.62 81.46 52.26 45.59
Change in instrument-specific credit risk for market risk benefits 0.04 0.05 0.11 0.20 0.22
Pension and postretirement benefits (0.45) (0.45) (0.21) (0.27) (0.34)
Book value per share, excluding AOCI $ 145.83 $ 144.01 $ 142.63 $ 138.99 $ 136.56
Less effect of B36: (1.13) (2.06) 0.12 0.11 0.34
Book value per share, excluding AOCI and B36 $ 146.96 $ 146.07 $ 142.51 $ 138.88 $ 136.22

Non-GAAP

Reinsurance Group of America, Incorporated
Non-GAAP Disclosures
This Quarterly Financial Supplement is for information purposes only and includes unaudited figures. This report should be read in conjunction with documents filed by Reinsurance Group of America, Incorporated ("RGA") with the SEC. The consolidated financial information herein include the assets, liabilities, and results of operations of RGA and its subsidiaries.
Non-GAAP Financial Measures
Reinsurance Group of America, Incorporated (the "Company") discloses certain financial measures that are not determined in accordance with U.S. GAAP. The Company principally uses such non-GAAP financial measures in evaluating performance because the Company believes that such measures, when reviewed in conjunction with relevant U.S. GAAP measures, present a clearer picture of our operating performance and assist the Company in the allocation of its resources. The Company believes that these non-GAAP financial measures provide third parties with a better understanding of the Company's results of operations, financial statements and the underlying profitability drivers and trends of the Company's businesses by excluding specified items which may not be indicative of the Company's ongoing operating performance and may fluctuate significantly from period to period. These measures should be considered supplementary to the Company's financial results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Consequently, the Company's non-GAAP financial measures may not be comparable to similar measures used by other companies.
The following non-GAAP financial measures are used in this document and other documents published by the Company from time to time:
1. Adjusted operating income, on a pre-tax and after-tax basis, and adjusted operating income per diluted share. The Company uses these measures as a basis for analyzing financial results because the Company believes that such measures better reflect the ongoing profitability and underlying trends of the Company's continuing operations. Adjusted operating income is calculated as net income available to the Company's shareholders (or, in the case of pre-tax adjusted operating income, income before income taxes) excluding, as applicable: • substantially all of the effect of net investment related gains and losses, • changes in the fair value of certain embedded derivatives, • changes in the fair value of contracts that provide market risk benefits, • non-economic losses at contract inception for direct pension risk transfer single premium business (which are amortized into adjusted operating income within claims and other policy benefits over the estimated lives of the contracts), • any net gain or loss from discontinued operations, • the cumulative effect of any accounting changes, • the impact of certain tax-related items, and • any other items that the Company believes are not indicative of the Company's ongoing operations, as such items can be volatile and may not reflect the underlying performance of the Company's businesses. In addition, adjusted operating income per diluted share is calculated as adjusted operating income divided by weighted average diluted shares outstanding. These measures also serve as a basis for establishing target levels and awards under the Company's management incentive programs.
2. Adjusted operating income, excluding notable items. Notable items currently represent the financial impact of the Company's assumption reviews on business subject to the Financial Accounting Standards Board's Accounting Standards Update No. 2018-12, "Targeted Improvements to the Accounting for Long-Duration Contracts" and related amendments, reflected in future policy benefits remeasurement (gains or) losses. In addition, notable items may in future periods include other items the Company believes may not be indicative of future performance. Any such notable items represent a positive or negative impact to adjusted operating income.
3. Adjusted operating revenue. This measure excludes the effects of net realized capital gains and losses, and changes in the fair value of certain embedded derivatives.
4. Shareholders' equity position excluding the impact of accumulated other comprehensive income (loss) ("AOCI"), and book value per share excluding the impact of AOCI. The Company believes that these measures provide useful information since such measures exclude AOCI-related items that are not permanent and can fluctuate significantly from period to period, and may not reflect the impact of the underlying performance of the Company's businesses on shareholders' equity and book value per share. AOCI primarily relates to changes in interest rates, credit spreads on its investment securities, future policy benefits discount rate measurement gains (losses), market risk benefits instrument-specific credit risk remeasurement gains (losses) and foreign currency fluctuations. The Company also discloses the following non-GAAP financial measures: •Shareholders' average equity position excluding AOCI and B36, where B36 refers to the cumulative change in fair value of funds withheld embedded derivatives; •Shareholders' average equity position excluding AOCI and notable items; and •Shareholders' average equity position excluding AOCI, B36 and notable items.
5. Adjusted operating return on equity. This measure is calculated as adjusted operating income divided by average shareholders' equity excluding AOCI. Adjusted operating return on equity also serves as a basis for establishing target levels and awards under the Company's management incentive programs. The Company also discloses the following non-GAAP financial measures: •Adjusted operating return on equity excluding AOCI and B36; •Adjusted operating return on equity excluding AOCI and notable items, which is calculated as adjusted operating income excluding notable items divided by average shareholders' equity excluding notable items and AOCI; and •Adjusted operating return on equity excluding AOCI, B36 and notable items.
Reconciliations of the foregoing non-GAAP financial measures to the most comparable GAAP financial measures are provided in the Appendix.