Reinsurance Group Of America Reports 39 Percent Gain In Third Quarter Operating Earnings

October 29, 1998

ST. LOUIS, October 29, 1998 – Reinsurance Group of America, Incorporated (NYSE:RGA, RGA.A) reported operating net income increased 39 percent to $20.2 million for the third quarter, up from $14.6 million in 1997. Operating income per share increased 16 percent for the quarter, to $0.66 per share from $0.57 the year before. Per share results reflect 4.9 million additional common shares issued in June. Third quarter earnings, including realized capital gains and losses, rose 44 percent, to $20.7 million, or $0.68 per share, from $14.4 million, or $0.56 per share, the year before.

Total revenues were up 43 percent, to $355.7 million from $249.0 million the year before, reflecting strong increases in net premiums and net investment income. Net premiums rose 40 percent, to $276.4 million from $197.9 million while net investment income climbed 54 percent, to $71.7 million from $46.5 million, due largely to the company’s growing asset-intensive reinsurance business and investment earnings from the stock issuance in the second quarter.

A. Greig Woodring, president and chief executive officer, commented, "RGA enjoyed another strong quarter. Our North American life reinsurance operations posted particularly noteworthy results. The U.S. Division reported a premium increase of 17 percent, and substantial new business volume. U.S. results reflect some favorable mortality experience this quarter and a 62 percent increase in investment income, primarily from our growing asset-intensive reinsurance block. Though our Canada segment reported some adverse mortality experience for the period, premium and investment income showed strong increases, resulting in a 45 percent increase in total revenue compared to the same period last year. Canadian mortality results year-to-date are in line with our expectations."

Turning to the company’s operations outside of North America, Woodring said, "Our operations in Latin America and the Asia Pacific again reported results generally consistent with our expectations for the quarter. Both regions reported record levels of facultative application submissions and we are pleased by the level of ongoing activity. We have encountered several good opportunities in Taiwan and are considering opening an office in Taipei early next year. Contributions continued from our Hong Kong, Tokyo and Sydney offices at a strong pace."

He concluded, "We continue to take advantage of the many opportunities we see in our domestic and international markets. The life reinsurance business in North America benefits from industry consolidation and the trend to outsourcing mortality risk, which means more large in-force blocks are coming to the reinsurance market. We continue to develop international markets by building on a solid tradition a foundation as well as employing more advanced techniques."

Operating earnings for the nine months totaled $53.6 million, or $1.94 per share, compared with $42.3 million, or $1.65 per share, in 1997, excluding the $10.4 million after-tax, nonoperating charge taken in the first quarter of 1997. Reported net income totaled $55.8 million, or $2.01 per share, compared with $32.3 million, or $1.26 per share, in the prior year. Net premiums rose 36 percent to $822.9 million from $604.9 million, while net investment income was up 55 percent to $207.6 million from $134.4 million. Total revenues increased 40 percent to $1.05 billion from $753.7 million.

The board of directors declared a regular quarterly dividend of $0.07 per share, payable November 25, to shareholders of record as of November 4.

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, the United Kingdom and South Africa. Worldwide, the Company has more than $290 billion of life reinsurance in force. General American Life Insurance Company beneficially owns approximately 64 percent of RGA's outstanding voting shares and approximately 52 percent of all shares outstanding.

                 Condensed Consolidated Statements of Income
                    ($ in thousands, except per share data)
                               Three Months Ended   Nine Months Ended
   (Unaudited)                  September 30,         September 30, 
                                  1998      1997      1998      1997
  Net premiums                 $276,371  $197,910  $822,884  $604,850
  Net investment income          71,702    46,532   207,606   134,376
  Realized capital 
    gains/(losses)                  639      (353)    3,358       566
  Other income                    6,938     4,938    17,593    13,929
     Total revenue              355,650   249,027 1,051,441   753,721
Benefits and expenses:
  Claims and other policy 
    benefits                    200,505   143,870   630,575   447,209
  Interest credited              38,821    21,668   111,178    63,194
  Accident and health pool
    charge                        ---       ---       ---      18,000
  Policy acquisition costs 
    and other insurance 
    expenses                     66,508    46,440   170,870   134,708
  Other expenses                 15,015    12,797    44,568    35,526
  Interest expense                2,228     1,949     6,440     5,853
     Total benefits 
     & expenses                 323,077   226,724   963,631   704,490
  Income before taxes and 
    minority interest            32,573    22,303    87,810    49,231
     Income Taxes                11,765     7,797    31,563    16,553
  Income before minority
    interest                     20,808    14,506    56,247    32,678
     Minority Interest              151       134       464       383
  Net income                   $ 20,657  $ 14,372  $ 55,783  $ 32,295
Earnings per share information:
  Basic Earnings (1)               0.68      0.57      2.04      1.27
  Diluted Earnings (1)             0.68      0.56      2.01      1.26
Diluted earnings before 
  realized investment
    gains/(losses) (1)             0.66      0.57      1.94      1.24
Weighted average number of 
  common and common equivalent
  shares outstanding 
  (in thousands)                 30,525    25,618    27,649    25,635
(1)  All periods reflect adoption of SFAS 128.
- more -
 Add Four
Condensed Consolidated Business Summary
                                                   Nine Months Ended
   (Unaudited)                                       September 30,  
                                                   1998         1997
Gross life reinsurance in force (in billions)
     North American business                      $259.2       $179.8
     International business                         34.5         20.4
Gross life reinsurance written (in billions)
     North American business                        76.5         32.5
     International business                          4.4         15.2
Consolidated cash and invested assets
  (in millions)                                  4,752.5      3,026.2
     Invested asset yield                          6.97%        7.25%
     Investment portfolio mix
          Cash and short-term investments          6.55%        3.20%
          Fixed maturity securities               74.66%       71.58%
          Mortgage loans                           4.51%        5.01%
          Policy loans                             9.92%       14.18%
          Funds withheld at interest               3.90%        5.54%
          Other invested assets                    0.46%        0.49%
Book value per share outstanding (1)             $ 25.99      $ 18.63
Book value per share outstanding, before
  impact of FAS 115 (1)                            23.14        16.32
Treasury stock at September 30                   805,763      758,033
(1)  Shares outstanding include the 4,945,000 non-voting shares
    that were issued on June 10, 1998.
# # #

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