Release Details

ST. LOUIS, July 23, 1998 - Reinsurance Group of America, Incorporated (NYSE:RGA, RGA.A) reported second quarter operating income rose 22 percent, to $18.1 million from $14.8 million the year before. Operating earnings per share for the second quarter were $0.67 compared with $0.58 in 1997, a 16 percent increase. Net income for the period, including realized capital gains and losses, was up 27 percent, to $19.2 million from $15.1 million in 1997. Earnings per share were $0.71 and $0.59, respectively.

The company announced that the board of directors increased the quarterly dividend to $0.07 per share from $0.06 per share. The dividend, payable August 28 to shareholders of record August 7, represents a 17 percent increase over the previous dividend rate.

The company also reported a 37 percent increase in net premium income for the quarter, to $276.5 million from the prior year’s $201.6 million. Net investment income showed a 57 percent increase, to $72.2 million for the period from $46.0 million. The increase is due in part to the company’s continued growth of its asset-intensive reinsurance business. Total revenues grew 40 percent, to $354.7 million from $252.9 million in 1997.

"We’ve seen a lot of activity in all of our markets," commented A. Greig Woodring, president and chief executive officer. "Our North America operations maintain strong growth trends, both in traditional and non-traditional reinsurance, with large opportunities coming to the market as companies look more to reinsurers to help manage their mortality risk. For the quarter, North America operations posted $272.7 million in revenues, 37 percent over last year. Revenue generated in North America totals $544.3 million for the year to date, up 33 percent relative to the first half of 1997.

"Our reinsurance operations outside North America continue to expand as we develop numerous opportunities in those markets," Woodring continued. "Total revenues for our international operations, consisting primarily of Latin America and Asia Pacific, were up 30 percent for the quarter over last year. The increase realized in Latin America revenue levels was due to direct premium written by our Chilean and Argentine subsidiaries, along with increases from reinsurance of Argentine pension products. Our Asia Pacific segment continues to build on its market bases in Hong Kong, Japan and Australia."

Woodring concluded, "All in all, it was another strong quarter for us. Operating expenses have generally stayed within our range of expectations. We are comfortable moving forward with our expansion activities and have just completed an equity offering which added $222 million in new capital."

For the first half of 1998, the company reported operating income of $33.4 million, a 21 percent increase over the first six months of the prior year, during which the company reported $27.7 million in operating income (excluding the $10.4 million non-operating, after-tax charge taken in the first quarter of 1997). Operating earnings per share increased 18 percent, to $1.27 from $1.08 from the prior year.

Reported net income for the first half increased to $35.1 million, or $1.34 per share, from $17.9 million, or $0.70 per share. Revenues increased 38 percent to $695.8 million for the first six months of 1998 and net premiums increased to $546.5 million, a 34 percent increase. Investment income totaled $135.9 million, up 55 percent from the first half of 1997.

Reinsurance Group of America, Incorporated, through its U.S. and Canadian subsidiaries, RGA Reinsurance Company and RGA Life Reinsurance Company of Canada, is one of the largest life reinsurers in North America. Reinsurance Group of America, Incorporated also operates through offices or subsidiary companies in Argentina, Australia, Barbados, Bermuda, Chile, Hong Kong, Japan, Mexico and the United Kingdom. Worldwide, it has more than $273 billion of life reinsurance in force. General American Life Insurance Company owns approximately 64 percent of RGA’s outstanding voting shares and 52 percent of all shares outstanding.

          REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
                 Condensed Consolidated Statements of Income

                    ($ in thousands, except per share data)
                               Three Months Ended    Six Months Ended
   (Unaudited)                      June 30,              June 30,    
                                  1998      1997      1998      1997

Revenues:
  Net premiums                 $276,535  $201,568  $546,513  $406,940
  Net investment income          72,225    45,995   135,904    87,844
  Realized capital gains          1,797       532     2,719       919
  Other income                    4,101     4,836    10,655     8,991
     Total revenue              354,658   252,931   695,791   504,694

Benefits and expenses:
  Claims and other policy 
    benefits                    212,774   144,579   430,070   303,339
  Interest credited              37,845    22,404    72,357    41,526
  Accident and health pool
    charge                        ---       ---       ---      18,000
  Policy acquisition costs 
    and other insurance 
    expenses                     57,428    47,801   104,362    88,268
  Other expenses                 14,089    12,210    29,553    22,729
  Interest expense                2,187     1,956     4,212     3,904
     Total benefits 
     & expenses                 324,323   228,950   640,554   477,766

  Income before taxes and 
    minority interest            30,335    23,981    55,237    26,928

     Income taxes                10,957     8,757    19,797     8,756

  Income before minority
    interest                     19,378    15,224    35,440    18,172

     Minority interest              160       129       313       249

  Net income                   $ 19,218  $ 15,095  $ 35,127  $ 17,923

Earnings per share 
  information:
  Basic Earnings (1)               0.72      0.59      1.35      0.70
  Diluted Earnings (1)             0.71      0.59      1.34      0.70

Diluted earnings before 
  realized investment
    gains/(losses) (1)             0.67      0.58      1.27      0.68

Weighted average number of 
  common and common equivalent
  shares outstanding 
  (in thousands)                 26,933    25,657    26,210    25,643

(1)  All periods reflect adoption of SFAS 128.

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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Business Summary

                                                    Six Months Ended
   (Unaudited)                                           June 30,  
                                                   1998         1997

Gross life reinsurance in force (in billions)
     North American business                      $244.8       $172.0
     International business                         29.1         10.5

Gross life reinsurance written (in billions)
     North American business                        57.9         20.7
     International business                          1.6          1.2

Consolidated cash and invested assets
  (in millions)                                  4,393.3      2,598.5
     Invested asset yield                          7.03%        7.26%
     Investment portfolio mix
          Cash and short-term investments          6.61%        2.88%
          Fixed maturity securities               73.25%       69.88%
          Mortgage loans                           4.87%        4.35%
          Policy loans                            10.87%       16.33%
          Funds withheld at interest               3.92%        6.08%
          Other invested assets                    0.48%        0.48%

Book value per share outstanding (1)             $ 25.20      $ 17.33
Book value per share outstanding, before
  impact of FAS 115 (1)                            22.70        15.99

Treasury stock at June 30                        808,963      643,881

(1)  Shares outstanding include the 4,945,000 non-voting shares
    that were issued on June 10, 1998.

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