EX-99.2

EX-99.2 3 d425701dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

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Financial Supplement

Third Quarter 2012

(Unaudited)

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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
Current Ratings				e-mail: jlay@rgare.com

	Standard & Poor's	A.M. Best	Moody's	John Hayden Sr. Vice President Controller & Investor Relations Phone: (636) 300-8828 e-mail: jhayden@rgare.com
Financial Strength Ratings
RGA Reinsurance Company	AA-	A+	A1
RGA Life Reinsurance Company of Canada	AA-	A+	NR
RGA International Reinsurance Company Limited	AA-	NR	NR
RGA Global Reinsurance Company Limited	AA-	NR	NR
RGA Reinsurance Company of Australia Limited	AA-	NR	NR
Senior Debt Ratings
Reinsurance Group of America, Incorporated	A-	a-	Baa1

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

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Reinsurance Group of America, Incorporated

Financial Supplement

3rd Quarter 2012

Table of Contents


		Page
Non-GAAP Disclosure		1

Consolidated

Financial Highlights		2

Consolidated Income Statement (incl. Operating Income Reconciliation)		3

Consolidated Operating Income Statement		4

Consolidated Balance Sheets		5

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

U.S. Operations		6

Canada Operations		10

Europe & South Africa Operations		11

Asia Pacific Operations		12

Corporate and Other		13

Summary of Pre-tax Segment Operating Income		14

Investments

Cash and Invested Assets, Yield Summary		15

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

Corporate Securities by Sector (Fixed Maturities and Equities)		17

Quality of Fixed Maturity Securities and Structured Fixed Maturity Securities		18

CMBS Exposure (Including Funds Withheld Portfolios)		19

Gross Unrealized Losses Aging		20

Fixed Maturity and Equity Securities Below Amortized Cost		21

Consolidated Gross Gains and Losses		22

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 shareholders’ equity excluding AOCI.


				Page 1

Reinsurance Group of America, Incorporated

Financial Highlights (1)


(USD thousands, except inforce & per share data)	Three Months Ended or As of															Current Qtr vs. PY Quarter			Year-to-Date
	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012		Sept. 30, 2011		Change
Net premiums	$	1,912,746		$	1,950,661		$	1,863,482		$	2,034,716		$	1,776,165		$	136,581		$	5,726,889	$	5,300,971	$	425,918
Net income		144,475			141,111			123,318			138,579			134,602			9,873			408,904		407,466		1,438
Operating income		99,902			122,273			112,377			120,772			138,837			(38,935	)		334,552		364,824		(30,272	)
Operating return on equity (ex AOCI) - annualized		8.9	%		11.2	%		10.6	%		11.7	%		13.8	%		-4.9	%
Operating return on equity (ex AOCI) - trailing 12 months		10.5	%		11.8	%		12.0	%		12.2	%		13.2	%		-2.7	%
Total assets		39,924,013			38,344,323			32,286,082			31,633,973			30,736,591			9,187,422

Assumed Life Reinsurance in Force (in billions)
U.S.	$	1,403.3		$	1,405.8		$	1,406.1		$	1,348.5		$	1,347.9		$	55.4
Canada		384.8			365.1			364.5			344.9			329.5			55.3
Europe & South Africa		559.4			525.2			529.7			513.4			515.0			44.4
Asia Pacific		533.5			486.2			470.7			457.6			422.8			110.7

Total Life Reinsurance in Force	$	2,881.0		$	2,782.3		$	2,771.0		$	2,664.4		$	2,615.2		$	265.8

Assumed New Business Production (in billions)
U.S.	$	23.1		$	24.2		$	84.9		$	24.8		$	30.1		$	(7.0	)	$	132.2	$	85.7	$	46.5
Canada		11.3			12.6			13.1			11.3			14.0			(2.7	)		37.0		39.8		(2.8	)
Europe & South Africa		37.3			25.5			14.8			24.9			38.7			(1.4	)		77.6		123.4		(45.8	)
Asia Pacific		47.2			24.5			5.7			74.0			27.9			19.3			77.4		45.0		32.4

Total New Business Production	$	118.9		$	86.8		$	118.5		$	135.0		$	110.7		$	8.2		$	324.2	$	293.9	$	30.3

Per Share and Shares Data
Basic earnings per share
Net income	$	1.96		$	1.91		$	1.68		$	1.89		$	1.82		$	0.14		$	5.55	$	5.53	$	0.02
Operating income	$	1.35		$	1.66		$	1.53		$	1.65		$	1.88		$	(0.53	)	$	4.54	$	4.95	$	(0.41	)
Diluted earnings per share
Net income	$	1.95		$	1.91		$	1.67		$	1.88		$	1.81		$	0.14		$	5.52	$	5.49	$	0.03
Operating income	$	1.35		$	1.65		$	1.52		$	1.64		$	1.87		$	(0.52	)	$	4.52	$	4.92	$	(0.40	)

Wgt. average common shares outstanding (basic)		73,776			73,718			73,575			73,304			73,856			(80	)		73,690		73,680		10
Wgt. average common shares outstanding (diluted)		74,138			74,054			74,043			73,812			74,254			(116	)		74,078		74,207		(129	)

Common shares issued		79,138			79,138			79,138			79,138			79,138			—			79,138		79,138		—
Treasury shares		5,286			5,416			5,426			5,770			5,871			(585	)		5,286		5,871		(585	)
Common shares outstanding		73,852			73,722			73,712			73,368			73,267			585			73,852		73,267		585

Book value per share	$	91.18		$	84.75		$	80.44		$	79.31		$	73.15
Per share effect of accumulated other comprehensive income (AOCI)	$	29.13		$	24.41		$	21.87		$	22.06		$	17.68
Book value per share, excluding AOCI	$	62.05		$	60.34		$	58.57		$	57.25		$	55.47

Shareholder dividends paid	$	17,696.2		$	13,268.6		$	13,255.3		$	13,189.3		$	13,336.6		$	4,359.6		$	44,220.1	$	31,039.4	$	13,180.7

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.


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Reinsurance Group of America, Incorporated

Consolidated GAAP Income Statement (incl. Operating Income Reconciliations) (1)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Revenues:
Net premiums	$	1,912,746		$	1,950,661		$	1,863,482		$	2,034,716		$	1,776,165		$	136,581		$	5,726,889		$	5,300,971		$	425,918
Investment income, net of related expenses		396,781			328,334			340,940			304,511			268,210			128,571			1,066,055			976,686			89,369
Investment related gains (losses), net
OTTI on fixed maturity securities		(1,996	)		(1,959	)		(7,607	)		(11,824	)		(11,911	)		9,915			(11,562	)		(19,049	)		7,487
OTTI on fixed maturity securities transferred to/from AOCI		(559	)		162			(7,221	)		543			3,089			(3,648	)		(7,618	)		3,381			(10,999	)
Other investment related gains (losses), net		78,608			25,598			58,348			(36,183	)		(130,778	)		209,386			162,554			27,076			135,478

Total investment related gains (losses), net		76,053			23,801			43,520			(47,464	)		(139,600	)		215,653			143,374			11,408			131,966
Other revenue		63,501			72,957			45,033			56,456			90,132			(26,631	)		181,491			192,254			(10,763	)

Total revenues		2,449,081			2,375,753			2,292,975			2,348,219			1,994,907			454,174			7,117,809			6,481,319			636,490

Benefits and expenses:
Claims and other policy benefits		1,662,625			1,625,446			1,580,149			1,720,956			1,514,765			147,860			4,868,220			4,504,227			363,993
Interest credited		130,341			66,697			88,042			78,884			35,251			95,090			285,080			237,510			47,570
Policy acquisition costs and other insurance expenses		318,106			335,939			307,634			204,883			164,372			153,734			961,679			785,138			176,541
Other operating expenses		103,786			105,541			110,098			122,000			94,029			9,757			319,425			297,340			22,085
Interest expense		29,749			23,360			23,322			25,226			27,025			2,724			76,431			77,412			(981	)
Collateral finance facility expense		2,995			2,878			2,967			3,019			3,069			(74	)		8,840			9,372			(532	)

Total benefits and expenses		2,247,602			2,159,861			2,112,212			2,154,968			1,838,511			409,091			6,519,675			5,910,999			608,676

Income before income taxes		201,479			215,892			180,763			193,251			156,396			45,083			598,134			570,320			27,814

Income tax expense		57,004			74,781			57,445			54,672			21,794			35,210			189,230			162,854			26,376

Net income	$	144,475		$	141,111		$	123,318		$	138,579		$	134,602		$	9,873		$	408,904		$	407,466		$	1,438

Pre-tax Operating Income Reconciliation:
Income before income taxes		201,479			215,892			180,763			193,251			156,396			45,083			598,134			570,320			27,814
Investment and derivative losses (gains) - non-operating (2)		(16,940	)		(102,184	)		94,098			(5,360	)		(221,194	)		204,254			(25,026	)		(260,247	)		235,221
Change in value of modified coinsurance and funds withheld embedded derivatives (2)		(54,836	)		4,453			9,428			85,722			102,574			(157,410	)		(40,955	)		1,514			(42,469	)
GMXB embedded derivatives (2)		(2,579	)		74,929			(146,375	)		(29,261	)		260,239			(262,818	)		(74,025	)		253,445			(327,470	)
Funds withheld losses (gains) - investment income		(6,400	)		(5,323	)		1,040			(194	)		(9,806	)		3,406			(10,683	)		(4,950	)		(5,733	)
Funds withheld losses (gains) - policy acq. costs		122			152			209			47			1,034			(912	)		483			902			(419	)
EIA embedded derivatives - interest credited		(167	)		(1,685	)		39,239			9,490			37,539			(37,706	)		37,387			31,799			5,588
EIA embedded derivatives - policy acq. costs		—			—			—			6,908			(3,664	)		3,664			—			(2,793	)		2,793
DAC offset, net		13,705			1,490			(13,148	)		(82,837	)		(107,709	)		121,414			2,047			(30,984	)		33,031
Gain on repurchase of collateral finance facility securities		—			—			—			(9,725	)		(50,869	)		50,869			—			(55,840	)		55,840
Loss on retirement of Preferred Income Equity Redeemable Securities (“PIERS”)		—			—			—			—			—			—			—			4,391			(4,391	)

Operating Income Before Income Taxes	$	134,384		$	187,724		$	165,254		$	168,041		$	164,540		$	(30,156	)	$	487,362		$	507,557		$	(20,195	)

After-tax Operating Income Reconciliation:
Net Income		144,475			141,111			123,318			138,579			134,602			9,873			408,904			407,466			1,438
Investment and derivative losses (gains) - non-operating (2)		(11,972	)		(66,949	)		60,304			(4,906	)		(144,834	)		132,862			(18,617	)		(171,005	)		152,388
Change in value of modified coinsurance and funds withheld embedded derivatives (2)		(35,644	)		2,895			6,128			55,719			66,673			(102,317	)		(26,621	)		984			(27,605	)
GMXB embedded derivatives (2)		(1,676	)		48,704			(95,144	)		(19,019	)		169,155			(170,831	)		(48,116	)		164,739			(212,855	)
Funds withheld losses (gains) - investment income		(4,160	)		(3,460	)		676			(126	)		(6,374	)		2,214			(6,944	)		(3,218	)		(3,726	)
Funds withheld losses (gains) - policy acq. costs		79			99			136			31			672			(593	)		314			586			(272	)
EIA embedded derivatives - interest credited		(108	)		(1,095	)		25,505			6,169			24,400			(24,508	)		24,302			20,669			3,633
EIA embedded derivatives - policy acq. costs		—			—			—			4,490			(2,381	)		2,381			—			(1,815	)		1,815
DAC offset, net		8,908			968			(8,546	)		(53,844	)		(70,011	)		78,919			1,330			(20,140	)		21,470
Gain on repurchase of collateral finance facility securities		—			—			—			(6,321	)		(33,065	)		33,065			—			(36,296	)		36,296
Loss on retirement of PIERS		—			—			—			—			—			—			—			2,854			(2,854	)

Operating Income	$	99,902		$	122,273		$	112,377		$	120,772		$	138,837		$	(38,935	)	$	334,552		$	364,824		$	(30,272	)

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.

(2)

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


				Page 3

Reinsurance Group of America, Incorporated

Consolidated Operating Income Statement (1)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands, except per share data)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011		Change
Revenues:
Net premiums	$	1,912,746		$	1,950,661		$	1,863,482		$	2,034,716		$	1,776,165		$	136,581		$	5,726,889		$	5,300,971	$	425,918
Investment income, net of related expenses		390,381			323,011			341,980			304,317			258,404			131,977			1,055,372			971,736		83,636
Investment related gains (losses), net		1,698			999			671			3,637			2,019			(321	)		3,368			6,120		(2,752	)
Other revenue		63,501			72,957			45,033			46,731			39,263			24,238			181,491			136,414		45,077

Total revenues		2,368,326			2,347,628			2,251,166			2,389,401			2,075,851			292,475			6,967,120			6,415,241		551,879
Benefits and expenses:
Claims and other policy benefits		1,662,625			1,625,446			1,580,149			1,720,956			1,514,765			147,860			4,868,220			4,504,227		363,993
Interest credited		130,508			68,382			48,803			69,394			(2,288	)		132,796			247,693			205,711		41,982
Policy acquisition costs and other insurance expenses		304,279			334,297			320,573			280,765			274,711			29,568			959,149			818,013		141,136
Other operating expenses		103,786			105,541			110,098			122,000			94,029			9,757			319,425			292,949		26,476
Interest expense		29,749			23,360			23,322			25,226			27,025			2,724			76,431			77,412		(981	)
Collateral finance facility expense		2,995			2,878			2,967			3,019			3,069			(74	)		8,840			9,372		(532	)

Total benefits and expenses		2,233,942			2,159,904			2,085,912			2,221,360			1,911,311			322,631			6,479,758			5,907,684		572,074
Operating income before income taxes		134,384			187,724			165,254			168,041			164,540			(30,156	)		487,362			507,557		(20,195	)
Operating income tax expense		34,482			65,451			52,877			47,269			25,703			8,779			152,810			142,733		10,077

Operating income	$	99,902		$	122,273		$	112,377		$	120,772		$	138,837		$	(38,935	)	$	334,552		$	364,824	$	(30,272	)

Wgt. Average Common Shares Outstanding (Diluted)		74,138			74,054			74,043			73,812			74,254			(116	)		74,078			74,207		(129	)

Diluted Earnings Per Share - Operating Income	$	1.35		$	1.65		$	1.52		$	1.64		$	1.87		$	(0.52	)	$	4.52		$	4.92	$	(0.40	)

Foreign currency effect *(2)*:
Net premiums	$	(25,972	)	$	(45,800	)	$	(4,924	)	$	(5,509	)	$	53,399		$	(79,371	)	$	(76,696	)	$	173,163	$	(249,859	)
Operating income before income taxes	$	(4,165	)	$	(3,471	)	$	(387	)	$	(2,407	)	$	6,846		$	(11,011	)	$	(8,023	)	$	17,193	$	(25,216	)

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.

(2)

Compared to comparable prior year period


				Page 4

Reinsurance Group of America, Incorporated

Consolidated Balance Sheets (1)


(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011
Assets
Fixed maturity securities, available-for-sale	$	21,658,414		$	17,244,192		$	16,794,057		$	16,200,950		$	15,557,032
Mortgage loans on real estate		2,256,881			1,157,049			1,040,733			991,731			934,694
Policy loans		1,243,498			1,250,238			1,260,070			1,260,400			1,228,890
Funds withheld at interest		5,608,640			5,457,888			5,472,532			5,410,424			5,445,886
Short-term investments		90,789			49,981			75,425			88,566			81,747
Investment receivable		—			5,406,898			—			—			—
Other invested assets		1,236,616			940,605			867,507			1,012,541			1,020,043

Total investments		32,094,838			31,506,851			25,510,324			24,964,612			24,268,292
Cash and cash equivalents		1,603,730			957,341			873,933			962,870			802,651
Accrued investment income		250,048			182,586			173,629			144,334			190,298
Premiums receivable and other reinsurance balances		1,179,687			1,104,176			1,131,334			1,059,572			1,060,631
Reinsurance ceded receivables		623,954			626,734			597,508			626,194			727,290
Deferred policy acquisition costs		3,630,877			3,605,008			3,629,424			3,543,925			3,340,394
Other assets		540,879			361,627			369,930			332,466			347,035

Total assets	$	39,924,013		$	38,344,323		$	32,286,082		$	31,633,973		$	30,736,591

Liabilities and Stockholders’ Equity
Future policy benefits	$	11,093,483		$	10,725,096		$	10,413,361		$	9,903,886		$	9,445,222
Interest-sensitive contract liabilities		13,254,859			13,352,601			8,252,995			8,394,468			8,378,159
Other policy claims and benefits		3,132,526			3,026,467			2,984,681			2,841,373			2,826,297
Other reinsurance balances		218,057			249,336			132,389			118,219			136,298
Deferred income taxes		1,806,186			1,785,614			1,728,765			1,679,834			1,518,990
Other liabilities		1,217,788			890,687			777,678			810,775			776,239
Short-term debt		—			—			—			—			199,997
Long-term debt		1,815,111			1,414,969			1,414,829			1,414,688			1,414,546
Collateral finance facility		651,968			651,936			652,029			652,032			681,004

Total liabilities		33,189,978			32,096,706			26,356,727			25,815,275			25,376,752
Stockholders’ Equity:
Common stock, at par value		791			791			791			791			791
Additional paid-in-capital		1,743,822			1,740,415			1,736,184			1,727,774			1,719,683
Retained earnings		3,154,317			3,033,505			2,906,310			2,818,429			2,695,680
Treasury stock		(316,542	)		(326,292	)		(325,732	)		(346,449	)		(352,106	)

Accumulated other comprehensive income (AOCI):
Accumulated currency translation adjustment, net of income taxes		273,258			237,010			253,875			229,795			189,347
Unrealized appreciation of securities, net of income taxes		1,907,512			1,591,647			1,388,597			1,419,318			1,119,724
Pension and postretirement benefits, net of income taxes		(29,123	)		(29,459	)		(30,670	)		(30,960	)		(13,280	)

Total stockholders’ equity		6,734,035			6,247,617			5,929,355			5,818,698			5,359,839

Total liabilities and stockholders’ equity	$	39,924,013		$	38,344,323		$	32,286,082		$	31,633,973		$	30,736,591

Total stockholders’ equity, excluding AOCI	$	4,582,388		$	4,448,419		$	4,317,553		$	4,200,545		$	4,064,048

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.


				Page 5

Reinsurance Group of America, Incorporated

U.S. Traditional Sub-segment Pre-tax Operating Income (1)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Revenues:
Net premiums	$	1,045,767		$	1,082,400		$	1,021,507		$	1,099,409		$	971,190		$	74,577		$	3,149,674		$	2,880,080		$	269,594
Investment income, net of related expenses		135,532			133,652			132,417			125,528			123,686			11,846			401,601			370,122			31,479
Other revenue		764			401			1,003			1,571			599			165			2,168			1,830			338

Total revenues		1,182,063			1,216,453			1,154,927			1,226,508			1,095,475			86,588			3,553,443			3,252,032			301,411
Benefits and expenses:
Claims and other policy benefits		917,264			934,807			907,461			952,609			844,090			73,174			2,759,532			2,505,670			253,862
Interest credited		14,637			14,555			15,054			15,174			15,166			(529	)		44,246			44,717			(471	)
Policy acquisition costs and other insurance expenses		156,995			150,958			145,485			152,246			135,747			21,248			453,438			403,265			50,173
Other operating expenses		20,684			20,586			24,001			23,971			20,299			385			65,271			61,135			4,136

Total benefits and expenses		1,109,580			1,120,906			1,092,001			1,144,000			1,015,302			94,278			3,322,487			3,014,787			307,700
Operating income before income taxes		72,483			95,547			62,926			82,508			80,173			(7,690	)		230,956			237,245			(6,289	)

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		72,483			95,547			62,926			82,508			80,173			(7,690	)		230,956			237,245			(6,289	)
Investment and derivative (losses) gains - non-operating		(1,927	)		789			(13,084	)		30,075			5,056			(6,983	)		(14,222	)		14,136			(28,358	)

Income before income taxes	$	70,556		$	96,336		$	49,842		$	112,583		$	85,229		$	(14,673	)	$	216,734		$	251,381		$	(34,647	)

Loss and Expense Ratios:
Claims and other policy benefits		87.7	%		86.4	%		88.8	%		86.6	%		86.9	%		0.8	%		87.6	%		87.0	%		0.6	%
Policy acquisition costs and other insurance expenses		15.0	%		13.9	%		14.2	%		13.8	%		14.0	%		1.0	%		14.4	%		14.0	%		0.4	%
Other operating expenses		2.0	%		1.9	%		2.3	%		2.2	%		2.1	%		-0.1	%		2.1	%		2.1	%		0.0	%

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.


				Page 6

Reinsurance Group of America, Incorporated

U.S. Asset Intensive Sub-segment Pre-tax Operating Income (1)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Revenues:
Net premiums	$	3,623		$	3,355		$	3,596		$	3,619		$	2,786		$	837		$	10,574		$	9,570		$	1,004
Investment income, net of related expenses		154,789			90,527			111,501			79,604			20,361			134,428			356,817			277,974			78,843
Investment related gains (losses), net		—			(18	)		(30	)		(82	)		(14	)		14			(48	)		(50	)		2
Other revenue		31,976			29,254			19,893			20,154			19,827			12,149			81,123			67,364			13,759

Total revenues		190,388			123,118			134,960			103,295			42,960			147,428			448,466			354,858			93,608

Benefits and expenses:
Claims and other policy benefits		2,828			5,102			1,902			2,766			4,431			(1,603	)		9,832			11,511			(1,679	)
Interest credited		115,645			53,611			33,511			53,965			(17,733	)		133,378			202,767			160,100			42,667
Policy acquisition costs and other insurance expenses		42,200			44,955			72,004			16,858			52,854			(10,654	)		159,159			134,616			24,543
Other operating expenses		2,596			2,807			3,062			2,434			1,886			710			8,465			5,783			2,682

Total benefits and expenses		163,269			106,475			110,479			76,023			41,438			121,831			380,223			312,010			68,213
Operating income before income taxes		27,119			16,643			24,481			27,272			1,522			25,597			68,243			42,848			25,395

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		27,119			16,643			24,481			27,272			1,522			25,597			68,243			42,848			25,395
Investment and derivative gains (losses) - non-operating (2)		2,039			92,008			(96,355	)		(23,077	)		219,530			(217,491	)		(2,308	)		229,507			(231,815	)
Change in value of modified coinsurance and funds withheld embedded derivatives (2)		54,257			(4,593	)		(9,387	)		(86,759	)		(103,949	)		158,206			40,277			(2,889	)		43,166
GMXB embedded derivatives (2)		2,579			(74,929	)		146,375			29,261			(260,239	)		262,818			74,025			(253,445	)		327,470
Funds withheld gains (losses) - investment income		5,652			5,430			(2,224	)		194			9,806			(4,154	)		8,858			4,950			3,908
Funds withheld gains (losses) - policy acq. costs		(122	)		(152	)		(209	)		(47	)		(1,034	)		912			(483	)		(902	)		419
EIA embedded derivatives - interest credited		167			1,685			(39,239	)		(9,490	)		(37,539	)		37,706			(37,387	)		(31,799	)		(5,588	)
EIA embedded derivatives - policy acq. costs		—			—			—			(6,908	)		3,664			(3,664	)		—			2,793			(2,793	)
DAC offset, net		(13,705	)		(1,490	)		13,148			82,837			107,709			(121,414	)		(2,047	)		30,984			(33,031	)

Income (loss) before income taxes	$	77,986		$	34,602		$	36,590		$	13,283		$	(60,530	)	$	138,516		$	149,178		$	22,047		$	127,131

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.

(2)

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


				Page 7

Reinsurance Group of America, Incorporated

U.S. Asset Intensive Sub-segment

(Cont’d)


	Three Months Ended
(USD millions)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011
Annuity account values:

Fixed annuities (deferred)	$	5,815		$	5,942		$	897		$	879		$	856

Net interest spread (fixed annuities):		1.1	%		1.0	%		2.4	%		2.8	%		2.7	%

Equity-indexed annuities	$	4,882		$	4,867		$	4,895		$	4,881		$	4,327

Variable annuities:
No riders	$	957		$	944		$	1,040		$	986		$	979
GMDB only		80			79			82			85			76
GMIB only		6			6			6			6			5
GMAB only		55			54			57			55			54
GMWB only		1,667			1,620			1,704			1,538			1,524
GMDB / WB		461			451			460			498			428
Other		31			30			32			31			30

Total VA account values	$	3,257		$	3,184		$	3,381		$	3,199		$	3,096

Fair value of liabilities associated with living benefit riders	$	203		$	205		$	130		$	277		$	306

Interest-sensitive contract liabilities associated with:

Guaranteed investment contracts	$	200		$	200		$	198		$	198		$	199

Bank-owned life insurance (BOLI)	$	519		$	515		$	512		$	508		$	505

Other asset-intensive business	$	76		$	77		$	78		$	78		$	79


				Page 8

Reinsurance Group of America, Incorporated

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


	Three Months Ended														Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012		March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Revenues:
Investment income, net of related expenses	$	364		$	179	$	164		$	131		$	168		$	196		$	707		$	33		$	674
Other revenue		11,565			11,734		8,910			9,558			8,619			2,946			32,209			26,815			5,394

Total revenues		11,929			11,913		9,074			9,689			8,787			3,142			32,916			26,848			6,068

Benefits and expenses:
Policy acquisition costs and other insurance expenses		2,012			704		770			743			798			1,214			3,486			2,448			1,038
Other operating expenses		1,635			1,593		1,852			2,025			1,584			51			5,080			4,850			230

Total benefits and expenses		3,647			2,297		2,622			2,768			2,382			1,265			8,566			7,298			1,268
Operating income before income taxes		8,282			9,616		6,452			6,921			6,405			1,877			24,350			19,550			4,800

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		8,282			9,616		6,452			6,921			6,405			1,877			24,350			19,550			4,800
Investment and derivative gains (losses) - non-operating		(146	)		32		(139	)		(87	)		(13	)		(133	)		(253	)		(41	)		(212	)

Income before income taxes	$	8,136		$	9,648	$	6,313		$	6,834		$	6,392		$	1,744		$	24,097		$	19,509		$	4,588


				Page 9

Reinsurance Group of America, Incorporated

Canadian Segment Pre-tax Operating Income (1)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Revenues:
Net premiums	$	227,944		$	221,167		$	218,210		$	224,763		$	185,790		$	42,154		$	667,321		$	610,535		$	56,786
Investment income, net of related expenses		46,016			46,349			47,716			42,604			53,698			(7,682	)		140,081			145,700			(5,619	)
Investment related gains (losses), net		1,003			995			1,323			1,579			1,267			(264	)		3,321			3,619			(298	)
Other revenue		3,288			3,205			(30	)		(9	)		440			2,848			6,463			5,442			1,021

Total revenues		278,251			271,716			267,219			268,937			241,195			37,056			817,186			765,296			51,890

Benefits and expenses:
Claims and other policy benefits		191,275			184,857			160,625			165,456			162,734			28,541			536,757			507,649			29,108
Interest credited		22			—			—			—			—			22			22			—			22
Policy acquisition costs and other insurance expenses		49,790			47,476			50,285			52,140			34,350			15,440			147,551			128,572			18,979
Other operating expenses		9,022			8,876			9,650			10,645			9,129			(107	)		27,548			26,616			932

Total benefits and expenses		250,109			241,209			220,560			228,241			206,213			43,896			711,878			662,837			49,041
Operating income before income taxes		28,142			30,507			46,659			40,696			34,982			(6,840	)		105,308			102,459			2,849

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		28,142			30,507			46,659			40,696			34,982			(6,840	)		105,308			102,459			2,849
Investment and derivative gains (losses) - non-operating		8,630			4,630			7,220			6,545			8,729			(99	)		20,480			15,253			5,227
Funds withheld gains (losses) - investment income		748			(107	)		1,184			—			—			748			1,825			—			1,825

Income before income taxes	$	37,520		$	35,030		$	55,063		$	47,241		$	43,711		$	(6,191	)	$	127,613		$	117,712		$	9,901

Loss and Expense Ratios:
Loss ratios (creditor business)		40.4	%		38.0	%		34.1	%		36.3	%		38.4	%		2.0	%		37.7	%		38.6	%		-0.9	%
Loss ratios (excluding creditor business)		96.8	%		95.5	%		83.8	%		85.5	%		96.9	%		-0.1	%		92.1	%		94.4	%		-2.3	%
Claims and other policy benefits / (net premiums + investment income)		69.8	%		69.1	%		60.4	%		61.9	%		68.0	%		1.8	%		66.5	%		67.1	%		-0.6	%
Policy acquisition costs and other insurance expenses (creditor business)		58.2	%		58.5	%		57.1	%		59.2	%		52.8	%		5.4	%		58.0	%		55.4	%		2.6	%
Policy acquisition costs and other insurance expenses (excluding creditor business)		11.1	%		11.8	%		14.2	%		10.9	%		10.9	%		0.2	%		12.4	%		11.5	%		0.9	%
Other operating expenses		4.0	%		4.0	%		4.4	%		4.7	%		4.9	%		-0.9	%		4.1	%		4.4	%		-0.3	%

Foreign currency effect *(2)*:
Net premiums	$	(3,413	)	$	(9,838	)	$	(3,328	)	$	(2,669	)	$	10,269		$	(13,682	)	$	(16,579	)	$	33,926		$	(50,505	)
Operating income before income taxes	$	919		$	(2,905	)	$	(554	)	$	(641	)	$	2,571		$	(1,652	)	$	(2,540	)	$	6,045		$	(8,585	)

Creditor reinsurance net premiums	$	52,038		$	45,883		$	44,810		$	54,227		$	29,895		$	22,143		$	142,731		$	123,092		$	19,639

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

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.

(2)

Compared to comparable prior year period


				Page 10

Reinsurance Group of America, Incorporated

Europe & South Africa Segment Pre-tax Operating Income (1)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Revenues:
Net premiums	$	303,101		$	310,075		$	292,771		$	356,284		$	286,054		$	17,047		$	905,947		$	838,193		$	67,754
Investment income, net of related expenses		11,437			11,248			11,331			11,709			11,242			195			34,016			32,642			1,374
Other revenue		1,576			1,464			2,253			1,035			1,196			380			5,293			3,996			1,297

Total revenues		316,114			322,787			306,355			369,028			298,492			17,622			945,256			874,831			70,425

Benefits and expenses:
Claims and other policy benefits		251,553			263,992			261,484			293,126			248,890			2,663			777,029			708,795			68,234
Policy acquisition costs and other insurance expenses		14,697			13,550			15,052			13,329			15,004			(307	)		43,299			45,888			(2,589	)
Other operating expenses		24,809			26,810			25,195			29,511			24,569			240			76,814			76,108			706

Total benefits and expenses		291,059			304,352			301,731			335,966			288,463			2,596			897,142			830,791			66,351
Operating income before income taxes		25,055			18,435			4,624			33,062			10,029			15,026			48,114			44,040			4,074

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		25,055			18,435			4,624			33,062			10,029			15,026			48,114			44,040			4,074
Investment and derivative gains (losses) - non-operating		7,111			1,156			1,982			2,951			2,000			5,111			10,249			3,049			7,200

Income before income taxes	$	32,166		$	19,591		$	6,606		$	36,013		$	12,029		$	20,137		$	58,363		$	47,089		$	11,274

Loss and Expense Ratios:
Claims and other policy benefits		83.0	%		85.1	%		89.3	%		82.3	%		87.0	%		-4.0	%		85.8	%		84.6	%		1.2	%
Policy acquisition costs and other insurance expenses		4.8	%		4.4	%		5.1	%		3.7	%		5.2	%		-0.4	%		4.8	%		5.5	%		-0.7	%
Other operating expenses		8.2	%		8.6	%		8.6	%		8.3	%		8.6	%		-0.4	%		8.5	%		9.1	%		-0.6	%

Foreign currency effect *(2)*:
Net premiums	$	(17,157	)	$	(22,973	)	$	(11,362	)	$	(9,136	)	$	9,234		$	(26,391	)	$	(51,492	)	$	40,386		$	(91,878	)
Operating income before income taxes	$	(2,989	)	$	(1,013	)	$	(1,417	)	$	(1,605	)	$	669		$	(3,658	)	$	(5,419	)	$	2,614		$	(8,033	)

Critical illness net premiums	$	58,793		$	62,001		$	61,548		$	61,564		$	59,679		$	(886	)	$	182,342		$	183,260		$	(918	)

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.

(2)

Compared to comparable prior year period


				Page 11

Reinsurance Group of America, Incorporated

Asia Pacific Segment Pre-tax Operating Income (1)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Revenues:
Net premiums	$	330,415		$	331,945		$	325,350		$	348,358		$	328,259		$	2,156		$	987,710		$	956,132		$	31,578
Investment income, net of related expenses		19,316			20,711			22,578			21,666			21,472			(2,156	)		62,605			63,171			(566	)
Investment related gains (losses), net		468			(164	)		(809	)		1,237			1,452			(984	)		(505	)		2,721			(3,226	)
Other revenue		10,052			24,109			7,408			9,741			8,557			1,495			41,569			24,332			17,237

Total revenues		360,251			376,601			354,527			381,002			359,740			511			1,091,379			1,046,356			45,023

Benefits and expenses:
Claims and other policy benefits		299,782			236,733			248,620			306,802			254,739			45,043			785,135			770,031			15,104
Interest Credited		204			216			238			254			280			(76	)		658			895			(237	)
Policy acquisition costs and other insurance expenses		52,779			89,996			50,847			58,713			49,854			2,925			193,622			142,417			51,205
Other operating expenses		28,234			26,929			27,913			30,254			27,598			636			83,076			78,814			4,262

Total benefits and expenses		380,999			353,874			327,618			396,023			332,471			48,528			1,062,491			992,157			70,334
Operating income (loss) before income taxes		(20,748	)		22,727			26,909			(15,021	)		27,269			(48,017	)		28,888			54,199			(25,311	)

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		(20,748	)		22,727			26,909			(15,021	)		27,269			(48,017	)		28,888			54,199			(25,311	)
Investment and derivative gains (losses) - non-operating		4,265			1,132			5,158			5,309			(1,625	)		5,890			10,555			(2,253	)		12,808

Income (loss) before income taxes	$	(16,483	)	$	23,859		$	32,067		$	(9,712	)	$	25,644		$	(42,127	)	$	39,443		$	51,946		$	(12,503	)

Loss and Expense Ratios:
Claims and other policy benefits		90.7	%		71.3	%		76.4	%		88.1	%		77.6	%		13.1	%		79.5	%		80.5	%		-1.0	%
Policy acquisition costs and other insurance expenses		16.0	%		27.1	%		15.6	%		16.9	%		15.2	%		0.8	%		19.6	%		14.9	%		4.7	%
Other operating expenses		8.5	%		8.1	%		8.6	%		8.7	%		8.4	%		0.1	%		8.4	%		8.2	%		0.2	%

Foreign currency effect *(2)*:
Net premiums	$	(5,401	)	$	(12,998	)	$	9,756		$	6,296		$	33,908		$	(39,309	)	$	(8,643	)	$	98,955		$	(107,598	)
Operating income before income taxes	$	(1,280	)	$	(614	)	$	1,529		$	325		$	3,379		$	(4,659	)	$	(365	)	$	5,491		$	(5,856	)

Critical illness net premiums	$	68,356		$	46,700		$	40,333		$	40,566		$	30,135		$	38,221		$	155,389		$	116,760		$	38,629

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.

(2)

Compared to comparable prior year period


				Page 12

Reinsurance Group of America, Incorporated

Corporate and Other Segment Pre-tax Operating Income (1)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Revenues:
Net premiums	$	1,896		$	1,719		$	2,048		$	2,283		$	2,086		$	(190	)	$	5,663		$	6,461		$	(798	)
Investment income, net of related expenses		22,927			20,345			16,273			23,075			27,777			(4,850	)		59,545			82,094			(22,549	)
Investment related gains (losses), net		227			186			187			903			(686	)		913			600			(170	)		770
Other revenue		4,280			2,790			5,596			4,681			25			4,255			12,666			6,635			6,031

Total revenues		29,330			25,040			24,104			30,942			29,202			128			78,474			95,020			(16,546	)

Benefits and expenses:
Claims and other policy benefits		(77	)		(45	)		57			197			(119	)		42			(65	)		571			(636	)
Interest credited		—			—			—			1			(1	)		1			—			(1	)		1
Policy acquisition costs and other insurance expenses		(14,194	)		(13,342	)		(13,870	)		(13,264	)		(13,896	)		(298	)		(41,406	)		(39,193	)		(2,213	)
Other operating expenses		16,806			17,940			18,425			23,160			8,964			7,842			53,171			39,643			13,528
Interest expense		29,749			23,360			23,322			25,226			27,025			2,724			76,431			77,412			(981	)
Collateral finance facility expense		2,995			2,878			2,967			3,019			3,069			(74	)		8,840			9,372			(532	)

Total benefits and expenses		35,279			30,791			30,901			38,339			25,042			10,237			96,971			87,804			9,167

Operating income (loss) before income taxes		(5,949	)		(5,751	)		(6,797	)		(7,397	)		4,160			(10,109	)		(18,497	)		7,216			(25,713	)

Operating to U.S. GAAP Reconciliation:
Operating income (loss) before income taxes		(5,949	)		(5,751	)		(6,797	)		(7,397	)		4,160			(10,109	)		(18,497	)		7,216			(25,713	)
Investment and derivative gains (losses) - non-operating		(2,453	)		2,577			1,079			(15,319	)		(11,108	)		8,655			1,203			1,971			(768	)
Gain on repurchase of collateral finance facility securities		—			—			—			9,725			50,869			(50,869	)		—			55,840			(55,840	)
Loss on retirement of PIERS		—			—			—			—			—			—			—			(4,391	)		4,391

Income (loss) before income taxes	$	(8,402	)	$	(3,174	)	$	(5,718	)	$	(12,991	)	$	43,921		$	(52,323	)	$	(17,294	)	$	60,636		$	(77,930	)

Foreign currency effect *(2)*:
Net premiums	$	(1	)	$	9		$	10		$	—		$	(12	)	$	11		$	18		$	(104	)	$	122
Operating income before income taxes	$	(815	)	$	1,061		$	55		$	(486	)	$	227		$	(1,042	)	$	301		$	3,043		$	(2,742	)

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.

(2)

Compared to comparable prior year period


				Page 13

Reinsurance Group of America, Incorporated

Summary of Pre-tax Segment Operating Income (1)


	Three Months Ended														Current Qtr vs. PY Quarter			Year-to-Date
(USD thousands)	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011		Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011		Change
U.S. Traditional	$	72,483		$	95,547		$	62,926		$	82,508		$	80,173	$	(7,690	)	$	230,956		$	237,245	$	(6,289	)
U.S. Asset Intensive		27,119			16,643			24,481			27,272			1,522		25,597			68,243			42,848		25,395
U.S. Financial Reinsurance		8,282			9,616			6,452			6,921			6,405		1,877			24,350			19,550		4,800

Total U.S. Segment		107,884			121,806			93,859			116,701			88,100		19,784			323,549			299,643		23,906
Canadian Segment		28,142			30,507			46,659			40,696			34,982		(6,840	)		105,308			102,459		2,849
Europe & South Africa Segment		25,055			18,435			4,624			33,062			10,029		15,026			48,114			44,040		4,074
Asia Pacific Segment		(20,748	)		22,727			26,909			(15,021	)		27,269		(48,017	)		28,888			54,199		(25,311	)
Corporate and Other		(5,949	)		(5,751	)		(6,797	)		(7,397	)		4,160		(10,109	)		(18,497	)		7,216		(25,713	)

Consolidated	$	134,384		$	187,724		$	165,254		$	168,041		$	164,540	$	(30,156	)	$	487,362		$	507,557	$	(20,195	)

(1)

Certain amounts in the prior periods have been revised in connection with the retrospective adoption of ASU 2010-26 in the first quarter of 2012.


				Page 14

Reinsurance Group of America, Incorporated

Investments


Cash and Invested Assets
(USD thousands)	Sept. 30, 2012		June 30, 2012		March 31, 2012		Dec. 31, 2011		Sept. 30, 2011
Fixed maturity securities, available-for-sale	$	21,658,414	$	17,244,192	$	16,794,057	$	16,200,950	$	15,557,032
Mortgage loans on real estate		2,256,881		1,157,049		1,040,733		991,731		934,694
Policy loans		1,243,498		1,250,238		1,260,070		1,260,400		1,228,890
Funds withheld at interest		5,608,640		5,457,888		5,472,532		5,410,424		5,445,886
Short-term investments		90,789		49,981		75,425		88,566		81,747
Investment Receivable		—		5,406,898		—		—		—
Other invested assets		1,236,616		940,605		867,507		1,012,541		1,020,043
Cash and cash equivalents		1,603,730		957,341		873,933		962,870		802,651

Total cash and invested assets	$	33,698,568	$	32,464,192	$	26,384,257	$	25,927,482	$	25,070,943

Investment Income and Yield Summary


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Average invested assets at amortized cost (1)	$	17,030,794		$	16,539,380		$	16,342,741		$	15,792,721		$	15,779,896		$	1,250,898		$	16,432,165		$	15,321,870		$	1,110,295
Net investment income (1)	$	208,346		$	205,471		$	202,603		$	200,702		$	204,719		$	3,627		$	616,420		$	605,954		$	10,466
Annualized investment yield (ratio of net investment income to average invested assets) (1)		4.98	%		5.06	%		5.05	%		5.18	%		5.29	%		-0.31	%		5.03	%		5.31	%		-0.28	%

(1)

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


				Page 15

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

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

(Excludes Funds Withheld Portfolios)


	September 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total			Other-than- temporary Impairment in AOCI
Available-for-sale:
Corporate securities	$	10,885,071	$	1,059,275	$	44,624	$	11,899,722		55.0	%	$	—
Canadian and Canadian provincial governments		2,653,761		1,438,124		2		4,091,883		18.9	%		—
Residential mortgage-backed securities		980,655		80,614		5,461		1,055,808		4.9	%		(477	)
Asset-backed securities		588,851		18,050		34,201		572,700		2.6	%		(2,295	)
Commercial mortgage-backed securities		1,663,493		137,153		60,255		1,740,391		8.0	%		(6,111	)
U.S. government and agencies		251,417		33,458		18		284,857		1.3	%		—
State and political subdivisions		254,845		38,784		6,212		287,417		1.3	%		—
Other foreign government, supranational, and foreign government-sponsored enterprises		1,627,190		100,539		2,093		1,725,636		8.0	%		—

Total fixed maturity securities	$	18,905,283	$	2,905,997	$	152,866	$	21,658,414		100.0	%	$	(8,883	)

Non-redeemable preferred stock		69,182		6,332		834		74,680		35.7	%
Other equity securities		133,037		1,555		—		134,592		64.3	%

Total equity securities	$	202,219	$	7,887	$	834	$	209,272		100.0	%


	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total			Other-than- temporary Impairment in AOCI
Available-for-sale:
Corporate securities	$	6,931,958	$	654,519	$	125,371	$	7,461,106		46.0	%	$	—
Canadian and Canadian provincial governments		2,507,802		1,362,160		29		3,869,933		23.9	%		—
Residential mortgage-backed securities		1,167,265		76,393		16,424		1,227,234		7.6	%		(1,042	)
Asset-backed securities		443,974		11,692		53,675		401,991		2.5	%		(5,256	)
Commercial mortgage-backed securities		1,233,958		87,750		79,489		1,242,219		7.7	%		(12,225	)
U.S. government and agencies		341,087		32,976		61		374,002		2.3	%		—
State and political subdivisions		184,308		24,419		3,341		205,386		1.3	%		—
Other foreign government, supranational, and foreign government-sponsored enterprises		1,372,528		50,127		3,576		1,419,079		8.7	%		—

Total fixed maturity securities	$	14,182,880	$	2,300,036	$	281,966	$	16,200,950		100.0	%	$	(18,523	)

Non-redeemable preferred stock		82,488		4,677		8,982		78,183		68.6	%
Other equity securities		35,352		1,903		1,538		35,717		31.4	%

Total equity securities	$	117,840	$	6,580	$	10,520	$	113,900		100.0	%


				Page 16

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Corporate Securities by Sector (Fixed Maturities and Equities)

(Excludes Funds Withheld Portfolios)


	September 30, 2012								December 31, 2011
	Amortized Cost		Estimated Fair Value		% of Total			Average Credit Ratings	Amortized Cost		Estimated Fair Value		% of Total			Average Credit Ratings
Financial Institutions
Banking	$	2,118,048	$	2,236,653		18.5	%	A	$	1,477,638	$	1,454,124		19.2	%	A
Brokerage		87,137		97,478		0.8	%	A		59,288		63,101		0.8	%	A
Finance Comp.		211,751		225,109		1.9	%	A		158,271		161,992		2.1	%	A
Insurance		591,559		648,986		5.4	%	A-		391,092		413,339		5.5	%	A-
REITs		476,487		517,964		4.3	%	BBB		300,401		316,192		4.2	%	BBB+
Other Finance		268,619		286,033		2.4	%	A+		130,984		135,812		1.8	%	A-

Total Financial Institutions		3,753,601		4,012,223		33.3	%			2,517,674		2,544,560		33.6	%
Industrials
Basic		769,994		822,844		6.8	%	BBB		367,323		402,225		5.3	%	BBB+
Capital Goods		592,007		645,392		5.3	%	BBB+		360,309		396,150		5.2	%	BBB+
Communications		995,240		1,118,108		9.2	%	BBB+		674,182		745,064		9.8	%	BBB+
Consumer Cyclical		715,321		780,013		6.4	%	BBB+		407,873		438,034		5.8	%	BBB+
Consumer Noncyclical		920,933		1,040,701		8.6	%	BBB+		691,245		784,819		10.4	%	A-
Energy		719,572		792,312		6.5	%	BBB+		405,317		454,727		6.0	%	BBB+
Technology		395,658		425,991		3.5	%	BBB		245,954		269,301		3.6	%	BBB+
Transportation		369,964		406,829		3.4	%	BBB+		219,605		234,822		3.1	%	BBB+
Other Industrial		104,851		113,879		0.9	%	BBB+		41,266		46,053		0.6	%	BBB

Total Industrials		5,583,540		6,146,069		50.6	%			3,413,074		3,771,195		49.8	%
Utilities
Electric		1,010,795		1,125,780		9.3	%	BBB+		673,725		756,033		10.0	%	BBB+
Natural Gas		642,651		715,671		5.9	%	BBB		398,648		447,617		5.9	%	BBB
Other Utility		62,067		73,358		0.6	%	A-		43,377		51,921		0.7	%	A-

Total Utilities		1,715,513		1,914,809		15.8	%			1,115,750		1,255,571		16.6	%
Other Sectors		34,636		35,893		0.3	%	AA-		3,300		3,680		0.0	%	AA-

Total	$	11,087,290	$	12,108,994		100.0	%	BBB+	$	7,049,798	$	7,575,006		100.0	%	BBB+


				Page 17

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Ratings of Fixed Maturity Securities

(Excludes Funds Withheld Portfolios)


		September 30, 2012							June 30, 2012							March 31, 2012							December 31, 2011							September 30, 2011
NAIC Designation	Rating Agency Designation	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	$	2,222,818	$	2,364,081		10.9	%	$	1,979,353	$	2,092,043		12.1	%	$	2,090,606	$	2,196,118		13.1	%	$	2,205,406	$	2,304,991		14.2	%	$	2,375,876	$	2,459,503		15.8	%
1	AA		5,265,613		6,572,815		30.4	%		4,578,944		5,708,472		33.1	%		4,727,343		5,764,579		34.3	%		4,675,653		5,815,846		35.9	%		4,351,791		5,254,456		33.8	%
1	A		4,666,113		5,525,476		25.5	%		3,919,020		4,705,816		27.3	%		3,646,110		4,263,802		25.4	%		3,206,553		3,822,796		23.6	%		3,231,583		3,736,883		24.0	%
2	BBB		5,716,281		6,185,558		28.6	%		3,667,640		3,974,486		23.1	%		3,539,967		3,814,367		22.7	%		3,283,937		3,522,411		21.8	%		3,187,296		3,402,993		21.9	%
3	BB		583,622		608,439		2.8	%		421,128		428,875		2.5	%		428,543		430,002		2.6	%		446,610		436,001		2.7	%		444,042		423,559		2.7	%
4	B		322,040		306,871		1.4	%		269,970		248,850		1.4	%		240,603		220,924		1.3	%		244,645		210,222		1.3	%		229,658		196,617		1.3	%
5	CCC and lower		92,149		68,193		0.3	%		89,665		64,812		0.4	%		106,637		80,660		0.5	%		95,128		71,410		0.4	%		78,310		60,014		0.4	%
6	In or near default		36,647		26,981		0.1	%		31,445		20,838		0.1	%		35,050		23,605		0.1	%		24,948		17,273		0.1	%		28,343		23,007		0.1	%

	Total	$	18,905,283	$	21,658,414		100.0	%	$	14,957,165	$	17,244,192		100.0	%	$	14,814,859	$	16,794,057		100.0	%	$	14,182,880	$	16,200,950		100.0	%	$	13,926,899	$	15,557,032		100.0	%

Structured Fixed Maturity Securities


	September 30, 2012				June 30, 2012				March 31, 2012				December 31, 2011				September 30, 2011
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Residential mortgage-backed securities:
Agency	$	511,887	$	571,894	$	511,985	$	571,821	$	523,206	$	576,045	$	561,156	$	619,010	$	596,072	$	660,833
Non-agency		468,768		483,914		495,808		506,741		551,867		562,183		606,109		608,224		642,791		646,941

Total residential mortgage-backed securities		980,655		1,055,808		1,007,793		1,078,562		1,075,073		1,138,228		1,167,265		1,227,234		1,238,863		1,307,774
Commercial mortgage-backed securities		1,663,493		1,740,391		1,308,668		1,348,047		1,302,734		1,342,421		1,233,958		1,242,219		1,330,302		1,326,994
Asset-backed securities		588,851		572,700		469,616		441,051		448,688		414,527		443,974		401,991		412,468		372,957

Total	$	3,232,999	$	3,368,899	$	2,786,077	$	2,867,660	$	2,826,495	$	2,895,176	$	2,845,197	$	2,871,444	$	2,981,633	$	3,007,725


				Page 18

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

CMBS Exposure

(Includes Funds Withheld Portfolios)


	September 30, 2012
	AAA				AA				A
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2005 & Prior	$	210,908	$	218,327	$	132,108	$	143,785	$	97,311	$	99,438
2006		245,431		273,176		60,760		67,989		78,858		84,663
2007		177,192		194,352		19,048		21,752		109,263		121,310
2008		7,750		7,821		48,514		61,261		14,330		16,690
2009		1,647		1,778		17,307		19,229		3,450		5,414
2010		27,968		29,778		45,882		52,122		13,270		14,466
2011		16,848		17,372		16,060		18,282		35,419		36,708
2012		20,009		20,617		27,226		27,553		24,892		25,389

Total	$	707,753	$	763,221	$	366,905	$	411,973	$	376,793	$	404,078


	BBB				Below Investment Grade				Total
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2005 & Prior	$	118,379	$	119,048	$	45,671	$	39,819	$	604,377	$	620,417
2006		83,778		81,072		47,481		42,885		516,308		549,785
2007		99,814		114,742		116,312		87,728		521,629		539,884
2008		—		—		22,210		15,903		92,804		101,675
2009		3,821		5,070		—		—		26,225		31,491
2010		—		—		—		—		87,120		96,366
2011		6,100		6,379		—		—		74,427		78,741
2012		7,637		7,910		—		—		79,764		81,469

Total	$	319,529	$	334,221	$	231,674	$	186,335	$	2,002,654	$	2,099,828

NOTE: Totals include directly held investments with amortized cost of $1,663.5 million and fair value of $1,740.4 million as well as

investments in funds withheld with amortized cost of $339.2 million and fair value of $359.4 million.


	December 31, 2011
	AAA				AA				A
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2005 & Prior	$	92,275	$	98,213	$	130,890	$	143,609	$	32,504	$	31,187
2006		260,765		277,959		52,883		59,727		52,805		55,074
2007		201,228		214,510		23,565		18,700		116,898		122,945
2008		8,975		9,053		48,818		59,536		17,012		19,237
2009		1,664		1,709		12,367		13,684		7,060		9,515
2010		27,946		28,872		49,323		53,480		19,434		20,727
2011		20,047		20,002		11,146		12,079		7,563		7,594

Total	$	612,900	$	650,318	$	328,992	$	360,815	$	253,276	$	266,279


	BBB				Below Investment Grade				Total
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2005 & Prior	$	24,750	$	24,295	$	52,475	$	40,753	$	332,894	$	338,057
2006		27,995		26,563		53,205		43,559		447,653		462,882
2007		102,604		108,047		113,946		77,718		558,241		541,920
2008		—		—		24,916		17,554		99,721		105,380
2009		—		—		—		—		21,091		24,908
2010		—		—		—		—		96,703		103,079
2011		—		—		—		—		38,756		39,675

Total	$	155,349	$	158,905	$	244,542	$	179,584	$	1,595,059	$	1,615,901

NOTE: Totals include directly held investments with amortized cost of $1,234.0 million and fair value of $1,242.2 million as well as

investments in funds withheld with amortized cost of $361.1 million and fair value of $373.7 million.


				Page 19

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Gross Unrealized Losses Aging

Fixed Maturity Securities


	September 30, 2012					June 30, 2012					March 31, 2012					December 31, 2011					September 30, 2011
	Gross Unrealized Losses		% of Total			Gross Unrealized Losses		% of Total			Gross Unrealized Losses		% of Total			Gross Unrealized Losses		% of Total			Gross Unrealized Losses		% of Total
Less than 20%	$	55,097		35.9	%	$	75,539		38.5	%	$	88,526		41.3	%	$	126,250		43.1	%	$	139,671		46.1	%
20% or more for less than six months		509		0.3	%		5,924		3.0	%		9,803		4.6	%		46,386		15.9	%		49,034		16.2	%
20% or more for six months or greater		97,260		63.3	%		112,362		57.2	%		111,830		52.2	%		109,330		37.4	%		105,170		34.7	%

Total	$	152,866		99.5	%	$	193,825		98.7	%	$	210,159		98.1	%	$	281,966		96.4	%	$	293,875		97.0	%


Equity Securities

	September 30, 2012					June 30, 2012					March 31, 2012					December 31, 2011					September 30, 2011
	Gross Unrealized Losses		% of Total			Gross Unrealized Losses		% of Total			Gross Unrealized Losses		% of Total			Gross Unrealized Losses		% of Total			Gross Unrealized Losses		% of Total
Less than 20%	$	833		0.5	%	$	1,659		0.9	%	$	3,511		1.6	%	$	4,905		1.7	%	$	4,774		1.6	%
20% or more for less than six months		—		0.0	%		815		0.4	%		183		0.1	%		5,117		1.7	%		4,142		1.4	%
20% or more for six months or greater		1		0.0	%		—		0.0	%		499		0.2	%		498		0.2	%		49		0.0	%

Total	$	834		0.5	%	$	2,474		1.3	%	$	4,193		1.9	%	$	10,520		3.6	%	$	8,965		3.0	%


				Page 20

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Fixed Maturities and Equity Securities Below Amortized Cost

(Excludes Funds Withheld Portfolios)


	As of September 30, 2012
	Less than 12 months				Equal to or greater than 12 months				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Investment grade securities:
Corporate securities	$	436,908	$	7,947	$	168,366	$	26,006	$	605,274	$	33,953
Canadian and Canadian provincial governments		589		2		—		—		589		2
Residential mortgage-backed securities		21,365		113		21,236		4,763		42,601		4,876
Asset-backed securities		55,260		1,286		101,691		20,960		156,951		22,246
Commercial mortgage-backed securities		117,736		1,350		40,110		9,546		157,846		10,896
U.S. government and agencies		6,715		18		—		—		6,715		18
State and political subdivisions		2,885		1,272		18,409		4,940		21,294		6,212
Other foreign government, supranational, and foreign government-sponsored enterprises		53,671		1,068		16,589		1,025		70,260		2,093

Investment grade securities		695,129		13,056		366,401		67,240		1,061,530		80,296

Non-investment grade securities:
Corporate securities		133,893		4,330		63,817		6,341		197,710		10,671
Residential mortgage-backed securities		7,774		55		4,304		530		12,078		585
Asset-backed securities		—		—		18,244		11,955		18,244		11,955
Commercial mortgage-backed securities		12,157		492		60,373		48,867		72,530		49,359
State and political subdivisions		—		—		—		—		—		—
Other foreign government, supranational, and foreign government-sponsored enterprises		—		—		—		—		—		—

Non-investment grade securities		153,824		4,877		146,738		67,693		300,562		72,570

Total fixed maturity securities	$	848,953	$	17,933	$	513,139	$	134,933	$	1,362,092	$	152,866

Non-redeemable preferred stock		734		6		6,744		828		7,478		834

Total Equity securities	$	734	$	6	$	6,744	$	828	$	7,478	$	834


	As of December 31, 2011
	Less than 12 months				Equal to or greater than 12 months				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Investment grade securities:
Corporate securities	$	790,758	$	40,180	$	286,244	$	63,117	$	1,077,002	$	103,297
Canadian and Canadian provincial governments		3,094		29		—		—		3,094		29
Residential mortgage-backed securities		128,622		3,549		58,388		10,382		187,010		13,931
Asset-backed securities		101,263		3,592		93,910		29,036		195,173		32,628
Commercial mortgage-backed securities		109,455		3,538		58,979		22,001		168,434		25,539
U.S. government and agencies		1,764		61		—		—		1,764		61
State and political subdivisions		21,045		1,845		12,273		1,268		33,318		3,113
Other foreign government, supranational, and foreign government-sponsored enterprises		148,416		1,085		16,588		2,491		165,004		3,576

Investment grade securities		1,304,417		53,879		526,382		128,295		1,830,799		182,174

Non-investment grade securities:
Corporate securities		212,795		10,852		47,310		11,222		260,105		22,074
Residential mortgage-backed securities		23,199		712		10,459		1,781		33,658		2,493
Asset-backed securities		2,363		940		21,275		20,107		23,638		21,047
Commercial mortgage-backed securities		34,918		7,220		62,357		46,730		97,275		53,950
State and political subdivisions		4,000		228		—		—		4,000		228

Non-investment grade securities		277,275		19,952		141,401		79,840		418,676		99,792

Total fixed maturity securities	$	1,581,692	$	73,831	$	667,783	$	208,135	$	2,249,475	$	281,966

Non-redeemable preferred stock		19,516		4,478		15,694		4,504		35,210		8,982
Other equity securities		1,662		602		5,905		936		7,567		1,538

Total Equity securities	$	21,178	$	5,080	$	21,599	$	5,440	$	42,777	$	10,520


				Page 21

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Consolidated Investment Related Gains and Losses


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
	Sept. 30, 2012			June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			Current Qtr vs. PY Quarter			Sept. 30, 2012			Sept. 30, 2011			Change
Fixed Maturity and Equity Securities:
Other-than-temporary impairment losses on fixed maturities	$	(1,996	)	$	(1,959	)	$	(7,607	)	$	(11,824	)	$	(11,911	)	$	9,915		$	(11,562	)	$	(19,049	)	$	7,487
Portion of loss recognized in accumulated other comprehensive income (before taxes)		(559	)		162			(7,221	)		543			3,089			(3,648	)		(7,618	)		3,381			(10,999	)

Net other-than-temporary impairment losses on fixed maturities recognized in earnings		(2,555	)		(1,797	)		(14,828	)		(11,281	)		(8,822	)		6,267			(19,180	)		(15,668	)		(3,512	)
Impairment losses on equity securities		—			(2,186	)		(839	)		(436	)		—			—			(3,025	)		(3,680	)		655
Gain on investment activity		53,173			26,593			22,312			39,622			34,840			18,333			102,078			92,423			9,655
Loss on investment activity		(6,668	)		(8,918	)		(7,504	)		(6,247	)		(7,182	)		514			(23,090	)		(20,749	)		(2,341	)

Net gain/(loss) on fixed maturity and equity securities		43,950			13,692			(859	)		21,658			18,836			25,114			56,783			52,326			4,457
Other impairment losses and change in mortgage loan provision		(10,301	)		1,762			(5,843	)		(5,258	)		(2,370	)		(7,931	)		(14,382	)		(4,980	)		(9,402	)
Other non-derivative gain/(loss), net		5,563			5,628			6,641			7,318			5,698			(135	)		17,832			15,039			2,793

Free-standing Derivatives:
Credit Default Swaps		7,819			(4,794	)		11,813			8,075			(10,018	)		17,837			14,838			(8,138	)		22,976
Interest Rate Swaps - non-hedged		(1,437	)		73,342			(47,352	)		20,818			142,907			(144,344	)		24,553			157,520			(132,967	)
Interest Rate Swaps - hedged		(4	)		29			(26	)		28			258			(262	)		(1	)		589			(590	)
Futures		(3,977	)		11,073			(17,408	)		(22,866	)		36,217			(40,194	)		(10,312	)		21,921			(32,233	)
CPI Swaps		422			(1,431	)		(802	)		726			(219	)		641			(1,811	)		1,095			(2,906	)
Equity options		(23,916	)		3,367			(37,983	)		(22,063	)		30,530			(54,446	)		(58,532	)		29,881			(88,413	)
Currency Forwards		519			515			(1,608	)		561			1,374			(855	)		(574	)		1,114			(1,688	)

Total free-standing derivatives		(20,574	)		82,101			(93,366	)		(14,721	)		201,049			(221,623	)		(31,839	)		203,982			(235,821	)

Embedded Derivatives:
Modified coinsurance and funds withheld treaties		54,836			(4,453	)		(9,428	)		(85,722	)		(102,574	)		157,410			40,955			(1,514	)		42,469
GMXB		2,579			(74,929	)		146,375			29,261			(260,239	)		262,818			74,025			(253,445	)		327,470

Total embedded derivatives		57,415			(79,382	)		136,947			(56,461	)		(362,813	)		420,228			114,980			(254,959	)		369,939
Net gain/(loss) on total derivatives		36,841			2,719			43,581			(71,182	)		(161,764	)		198,605			83,141			(50,977	)		134,118

Total investment related gains / (losses), net	$	76,053		$	23,801		$	43,520		$	(47,464	)	$	(139,600	)	$	215,653		$	143,374		$	11,408		$	131,966


				Page 22