Reinsurance Group Of America Reports 20 Percent Gain In Operating Earnings Per Share For First Quarter

April 23, 1998
For further information, contact
Jack B. Lay
Executive Vice President and
Chief Financial Officer

ST. LOUIS, April 23, 1998 – Reinsurance Group of America, Incorporated (NYSE:RGA) reported a first quarter operating income per share increase of 20 percent, to $0.60 per share, or $15.3 million, from $0.50 per share, or $12.9 million, the year before, excluding the impact of the $0.40 per share, or $10.4 million, after-tax nonoperating accident and health pool charge taken in the first quarter of 1997.

First quarter net premiums increased 31 percent, to $270.0 million, from $205.4 million in 1997. Net investment income was up 52 percent, to $63.7 million, from $41.8 million. Total revenues rose 35 percent, to $341.1 million. The company reported total assets of approximately $5 billion.

A. Greig Woodring, president and chief executive officer, explained, "First quarter results were in line with our expectations and set the stage for 1998. We again experienced strong core earnings from our U.S. and Canadian life segments, due in part to some large transactions we closed at the end of 1997. Both the U.S. and Canadian operations reported significant premium increases. U.S. premiums rose 24 percent, while premiums from our Canadian operation increased 33 percent. The increase in net investment income reflects continued growth in asset-intensive business."

Turning to the company’s operations outside of North America, Woodring commented, "Asia Pacific operations posted a modest profit for the first quarter, thanks in part to a financial reinsurance transaction we closed with a large Japanese life insurance company. This transaction is important because it is the first of its kind in Japan and opens the door to this type of arrangement. It will also provide RGA additional name recognition in that market. Business in other parts of the region continues to develop well, including RGA’s Australian operations, with a premium level of $4.7 million reported this quarter, up from $0.2 million in the first quarter of 1997."

Woodring continued, "Premium levels rose 51 percent in our Latin American operations, due to our increased involvement in privatized pension plans in Argentina and to business written by our direct writing companies in Chile and Argentina. We are expanding our Latin American reinsurance operations by establishing a local presence in Mexico. In March, we opened a new office in Mexico City."

Woodring concluded, "We are pleased with this strong start to 1998. We continue to see a number of opportunities to develop our business domestically and internationally."

The board of directors declared a regular quarterly dividend of $0.06 per share, payable May 29, 1998, to shareholders of record as of May 8, 1998.

Reinsurance Group of America, Incorporated, through its subsidiaries, RGA Reinsurance Company and RGA Life Reinsurance Company of Canada, is among the largest providers of life reinsurance in North America. In addition to its North American operations, Reinsurance Group of America, Incorporated has subsidiary companies or branch offices in Argentina, Australia, Barbados, Bermuda, Chile, Hong Kong, Japan, Mexico and the United Kingdom. Worldwide, the Company has more than $253 billion of life reinsurance in force. General American Life Insurance Company owns approximately 64 percent of RGA’s outstanding shares.

Condensed Consolidated Statements of Income
                    ($ in thousands, except per share data)
                                                  Three Months Ended
   (Unaudited)                                           March 31,  
                                                     1998       1997 

  Net premiums                                     $269,978  $205,372
  Net investment income                              63,679    41,849
  Realized capital gains                                922       387
  Other income                                        6,554     4,155
     Total revenue                                  341,133   251,763

Benefits and expenses:
  Claims and other policy benefits                  217,296   158,760
  Interest credited                                  34,512    19,122
  Accident and health pool charge                     ---      18,000
  Policy acquisition costs and 
    other insurance expenses                         46,934    40,467
  Other expenses                                     15,464    10,519
  Interest expense                                    2,025     1,948
     Total benefits and expenses                    316,231   248,816

  Income before taxes and minority interest          24,902     2,947

     Income taxes                                     8,840        (1)

  Income before minority interest                    16,062     2,948

     Minority interest                                  153       120

  Net income                                       $ 15,909  $  2,828

Earnings per share information:
  Basic Earnings (1)                                   0.63      0.11
  Diluted Earnings (1)                                 0.62      0.11

Diluted earnings before realized investment
    gains/(losses) (1)                                 0.60      0.10

Weighted average number of common and 
  common equivalent shares outstanding 
  (in thousands)                                     25,500    25,629
(1) All periods reflect adoption of FASB 128; diluted earnings per share includes common stock equivalents


Condensed Consolidated Business Summary
                                                 Three Months Ended
   (Unaudited)                                         March 31,  
                                                  1998        1997
Gross life reinsurance in force (in billions)
     North American business                     $225.6       $165.3
     International business                        27.8          8.5
Gross life reinsurance written (in billions)
     North American business                       32.0          9.5
     International business                         0.2          0.5
Consolidated cash and invested assets
  (in millions)                                 4,012.9      2,482.8
     Invested asset yield                          7.06%        7.22%
     Investment portfolio mix
          Cash and short-term investments          5.63         3.46 
          Fixed maturity securities               73.29        68.80 
          Mortgage loans                           4.62         4.00 
          Policy loans                            11.75        17.10 
          Funds withheld at interest               4.18         6.29 
          Other invested assets                    0.53         0.35 
Book value per share outstanding                $ 20.65      $ 16.01
Book value per share outstanding, before
  impact of FAS 115                               17.72        15.59
Treasury stock at March 31                      820,895      581,031


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