SEC Filing | Reinsurance Group of America, Inc

REINSURANCE GROUP OF AMERICA, INCORPORATED

Date: July 26, 2012

/s/ Jack B. Lay

Jack B. Lay

Senior Executive Vice President

and Chief Financial Officer

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8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 26, 2012

REINSURANCE GROUP OF AMERICA, INCORPORATED

(Exact Name of Registrant as Specified in its Charter)

Missouri

1-11848

43-1627032

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification Number)

1370 Timberlake Manor Parkway, Chesterfield, Missouri 63017

(Address of Principal Executive Office)

Registrant’s telephone number, including area code: (636) 736-7000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On July 26, 2012, Reinsurance Group of America, Incorporated (the “Company”) issued (1) a press release announcing its earnings for the three-month period ended June 30, 2012, and providing certain additional information, a copy of which is furnished with this report as Exhibit 99.1, and (2) a Quarterly Financial Supplement for the quarter ended June 30, 2012, a copy of which is attached hereto as Exhibit 99.2. The press release also notes that a conference call will be held on July 27, 2012 to discuss the financial and operating results for the three-month period ended June 30, 2012. The press release and Quarterly Financial Supplement are furnished and are not filed pursuant to Instruction B.2 of Form 8-K.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.


Exhibit No.		Exhibit

99.1		Press Release of Reinsurance Group of America, Incorporated dated July 26, 2012

99.2		Quarterly Financial Supplement for the quarter ended June 30, 2012

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX


Exhibit Number		Description

99.1		Press Release dated July 26, 2012

99.2		Quarterly Financial Supplement for the quarter ended June 30, 2012

EX-99.1

Exhibit 99.1

LOGO

PRESS RELEASE

REINSURANCE GROUP OF AMERICA REPORTS SECOND-QUARTER RESULTS

•

Earnings per diluted share: net income $1.91, operating income* $1.65

•

Net premiums up nine percent to nearly $2.0 billion

•

Large U.S. deferred annuity reinsurance transaction executed during the quarter

•

Trailing 12 months’ operating return on equity* 12 percent

•

33 percent increase in dividend

ST. LOUIS, July 26, 2012 – Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global provider of life reinsurance, reported second-quarter net income of $141.1 million, or $1.91 per diluted share, compared to $123.9 million, or $1.66 per diluted share in the prior-year quarter. Operating income* of $122.3 million, or $1.65 per diluted share, increased three percent over last year’s $119.1 million, or $1.60 per diluted share. Figures for 2011 have been adjusted for the retrospective adoption of new accounting guidance for deferred acquisition costs.


	Quarterly Results				Year-to-Date Results
($ in thousands, except per share data)	2012		2011		2012		2011
Net premiums	$	1,950,661	$	1,788,676	$	3,814,143	$	3,524,806
Net income		141,111		123,944		264,429		272,864
Net income per diluted share		1.91		1.66		3.57		3.68
Operating income*		122,273		119,056		234,650		225,987
Operating income per diluted share*		1.65		1.60		3.17		3.05
Book value per share		84.75		67.81
Book value per share (excl. Accumulated Other Comprehensive Income “AOCI”)*		60.34		53.72
Total assets		38,344,323		30,212,717

*	See ‘Use of Non-GAAP Financial Measures’ below

Consolidated net premiums increased nine percent to $1,950.7 million from $1,788.7 million in the prior-year quarter, including an adverse effect of $45.8 million from changes in foreign currency exchange rates. Investment income decreased three percent to $328.3 million from $337.4 million in the year-earlier quarter, primarily attributable to a $45.1 million decline in fair value of option contracts, which are included in funds withheld at interest and support the crediting rates for equity-indexed annuities. Partially offsetting the effect of those option contracts was an increase in investment income associated with a large fixed deferred annuity coinsurance agreement, effective April 1, 2012. Excluding the effect of both of those items, investment income was flat compared with the second quarter of 2011, with declining new money yields offsetting a growing invested asset base. Excluding funds withheld assets and the investment receivable associated with the newly executed annuity transaction, the average book value of invested assets was up approximately $1.1 billion to $18.6 billion, and the average portfolio yield decreased to 5.05 percent from 5.35 percent in the second quarter of 2011. The average yield was also 5.05 percent in the first quarter of 2012. Net foreign currency fluctuations adversely affected operating income by $2.3 million after taxes, or $0.03 per diluted share.

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A. Greig Woodring, president and chief executive officer, commented, “We had a stable quarter in terms of operating results, with operating income rising to $122 million, or $1.65 per diluted share from $1.60 per diluted share in the second quarter of 2011. The current-period result includes headwinds associated with foreign currency fluctuations and a slightly higher effective tax rate, each of which adversely affected operating income per share by approximately $0.03.

“This quarter’s results reflect mixed claims experience across the globe. We reported slightly elevated claim levels in several markets, including the U.S., Australia and the U.K. The weak equity markets adversely affected our U.S. Asset-Intensive sub-segment. Overall net premium growth was solid, at nine percent on a reported basis and 12 percent on an original currency basis. Our book value per share increased to $84.75, including AOCI, and to $60.34, excluding AOCI.

“We are pleased with the addition of a large fixed deferred annuity reinsurance block in our U.S. Asset-Intensive sub-segment. We deployed approximately $350 million of capital to support this transaction, which increased our invested asset base by roughly $5.4 billion. This business provides balance to our annuity reinsurance portfolio, which includes equity-indexed and variable annuity products.

“Our annualized operating return on equity was 11 percent for the quarter and 12 percent over the last 12 months. Our balance sheet remains strong, including the invested asset portfolio. Our net unrealized investment gains totaled approximately $1.6 billion as of June 30, 2012. We continue to evaluate new global opportunities to provide financial and reinsurance solutions to our clients.”

SEGMENT RESULTS

U.S.

The U.S. Traditional sub-segment pre-tax net income increased to $96.3 million from $91.2 million in last year’s second quarter. Pre-tax operating income was up five percent to $95.5 million from $91.0 million the year before; however, both periods reflected somewhat higher-than-expected claims. In the current period, individual mortality claims were slightly above expectations, but were partially offset by better-than-expected results in our group and individual health lines. Net premiums rose 11 percent, to $1,082.4 million from $973.8 million a year ago, benefiting in part from a new in force transaction effective in the first quarter.

The U.S. Asset-Intensive business reported pre-tax income of $34.6 million, up from $16.0 million a year ago, including changes in the fair values of various free-standing and embedded derivatives. Pre-tax operating income, which excludes the impact of those derivatives, decreased to $16.6 million from $20.4 million last year. The current-period result reflects somewhat weak performance in the underlying business, in part due to equity market performance, and was below the ongoing expected run rate. The company entered into a binding letter of intent to reinsure a large block of fixed deferred annuities, effective April 1, 2012, and the results of that business are included in the second-quarter results. Initial returns on that transaction are anticipated to be below the long-term expectation of 13 percent as management expects to reposition a portion of the transferred invested asset portfolio.

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The U.S. Financial Reinsurance business added pre-tax operating income of $9.6 million this quarter, up 37 percent from $7.0 million last year. This business continues to contribute strong fee income to the bottom line.

Canada

Canadian operations reported pre-tax net income of $35.0 million compared with $44.1 million in the second quarter of 2011. Pre-tax operating income was $30.5 million this quarter, compared with $42.0 million in the prior-year period, a difficult comparison considering the current quarter’s claims experience was in line with expectations and the prior-year experience was quite favorable. A weaker Canadian dollar adversely affected pre-tax operating income by approximately $2.9 million compared to the prior-year period. Reported net premiums were up five percent to $221.2 million from $209.7 million last year, including an adverse foreign currency effect of $9.8 million. On a Canadian dollar basis, net premiums were up 10 percent.

Asia Pacific

Asia Pacific reported pre-tax net income of $23.9 million compared with $4.3 million in the second quarter of 2011, when negative claims experience in Australia and Japan adversely affected results. Pre-tax operating income was $22.7 million, up from $4.6 million last year. Claims were slightly elevated in Australia, but were offset in part by favorable results in other Asian markets and strong fee income on financial reinsurance transactions. Net premiums were up five percent to $331.9 million from $316.4 million in the prior year. Foreign currency fluctuations adversely affected premiums and pre-tax operating income by approximately $13.0 million and $0.6 million, respectively, this period. Original currency premiums rose nine percent over the second quarter of 2011.

Europe & South Africa

Europe & South Africa reported pre-tax net income of $19.6 million, up from $12.5 million in the year-ago quarter. Pre-tax operating income was $18.4 million, a 36 percent increase over $11.8 million last year. A slightly elevated claims level in the U.K. was offset by better-than-expected experience in several other markets. Foreign currency fluctuations adversely affected pre-tax operating income by approximately $1.0 million. Net premiums totaled $310.1 million, up 10 percent from $283.0 million the year before, including an adverse currency effect of $23.0 million. On a local currency basis, net premiums increased 18 percent.

Corporate and Other

The Corporate and Other segment reported a pre-tax net loss of $3.2 million in the second quarter, contrasted with pre-tax net income of $12.0 million in the year-ago period. Pre-tax operating losses were $5.8 million in the current period compared with pre-tax operating income of $3.3 million last year. Investment income was approximately $7.4 million lower in the current quarter compared with last year. That decrease was driven by higher levels of investment income attributed to the operating segments as a result of their increasing business levels.

Dividend Declaration

The board of directors increased the quarterly dividend 33 percent, to $0.24 from $0.18, payable August 31 to shareholders of record as of August 10.

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Earnings Conference Call

A conference call to discuss second-quarter results will begin at 9 a.m. Eastern Time on Friday, July 27. Interested parties may access the call by dialing 877-719-9789 (domestic) or 719-325-4796 (international). The access code is 4555619. A live audio webcast of the conference call will be available on the company’s investor relations website at www.rgare.com. A replay of the conference call will be available at the same address for 90 days following the conference call. A telephonic replay will also be available through August 4 at 888-203-1112 (domestic) or 719-457-0820 (international), access code 4555619.

The company has posted to its website a Quarterly Financial Supplement that includes financial information for all segments as well as information on its investment portfolio. Additionally, the company posts periodic reports, press releases and other useful information on its investor relations website.

Use of Non-GAAP Financial Measures

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. Reconciliations to GAAP net income are provided in the following tables. Additional financial information can be found in the Quarterly Financial Supplement on RGA’s Investor Relations website at www.rgare.com in the “Quarterly Results” tab and in the “Featured Report” section.

Book value per share outstanding before impact of AOCI is a non-GAAP financial measure that management believes is important in evaluating the balance sheet in order to ignore the effects of unrealized amounts primarily associated with mark-to-market adjustments on investments and foreign currency translation.

Operating return on equity is a non-GAAP financial measure calculated as operating income divided by average shareholders’ equity excluding AOCI.

About RGA

Reinsurance Group of America, Incorporated is among the largest global providers of life reinsurance, with operations in Australia, Barbados, Bermuda, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Singapore, South Africa, South Korea, Spain, Taiwan, the United Arab Emirates, the United Kingdom and the United States. Worldwide, the company has approximately $2.8 trillion of life reinsurance in force, and assets of $38.3 billion.

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Cautionary Statement Regarding Forward-looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements relating to projections of the earnings, revenues, income or loss, future financial performance and growth potential of Reinsurance Group of America, Incorporated and its subsidiaries (which we refer to in the following paragraphs as “we,” “us” or “our”). The words “intend,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “should,” “believe,” and other similar expressions also are intended to identify forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance and achievements could differ materially from those set forth in, contemplated by or underlying the forward-looking statements.

Numerous important factors could cause actual results and events to differ materially from those expressed or implied by forward-looking statements including, without limitation, (1) adverse capital and credit market conditions and their impact on our liquidity, access to capital, and cost of capital, (2) the impairment of other financial institutions and its effect on our business, (3) requirements to post collateral or make payments due to declines in market value of assets subject to our collateral arrangements, (4) the fact that the determination of allowances and impairments taken on our investments is highly subjective, (5) adverse changes in mortality, morbidity, lapsation, or claims experience, (6) changes in our financial strength and credit ratings and the effect of such changes on our future results of operations and financial condition, (7) inadequate risk analysis and underwriting, (8) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in our current and planned markets, (9) the availability and cost of collateral necessary for regulatory reserves and capital, (10) market or economic conditions that adversely affect the value of our investment securities or result in the impairment of all or a portion of the value of certain of our investment securities, (11) market or economic conditions that adversely affect our ability to make timely sales of investment securities, (12) risks inherent in our risk management and investment strategy, including changes in investment portfolio yields due to interest rate or credit quality changes, (13) fluctuations in U.S. or foreign currency exchange rates, interest rates, or securities and real estate markets, (14) adverse litigation or arbitration results, (15) the adequacy of reserves, resources, and accurate information relating to settlements, awards, and terminated and discontinued lines of business, (16) the stability of and actions by governments and economies in the markets in which we operate, including ongoing uncertainties regarding the amount of United States sovereign debt and the credit ratings thereof, (17) competitive factors and competitors’ responses to our initiatives, (18) the success of our clients, (19) successful execution of our entry into new markets, (20) successful development and introduction of new products and distribution opportunities, (21) our ability to successfully integrate and operate reinsurance business that we acquire, (22) action by regulators who have authority over our reinsurance operations in the jurisdictions in which we operate, (23) our dependence on third parties, including those insurance companies and reinsurers to which we cede some reinsurance, third-party investment managers, and others, (24) the threat of natural disasters, catastrophes, terrorist attacks, epidemics, or pandemics anywhere in the world where we or our clients do business, (25) changes in laws, regulations, and accounting standards applicable to us, our subsidiaries, or our business, (26) the effect of our status as an insurance holding company and regulatory restrictions on our ability to pay principal and interest on our debt obligations, and (27) other risks and uncertainties described in this document and in our other filings with the Securities and Exchange Commission.

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Forward-looking statements should be evaluated together with the many risks and uncertainties that affect our business, including those mentioned in this document and described in the periodic reports we file with the Securities and Exchange Commission. These forward-looking statements speak only as of the date on which they are made. We do not undertake any obligations to update these forward-looking statements, even though our situation may change in the future. We qualify all of our forward-looking statements by these cautionary statements. For a discussion of the risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements, you are advised to review the risk factors in our 2011 Form 10-K.

Investor Contact

John W. Hayden

Senior Vice President – Controller and Investor Relations

(636) 736-7000

- tables below -

REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

Reconciliation of Consolidated Net Income to Operating Income

(Dollars in thousands)


	Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited)	2012			2011			2012			2011
GAAP net income	$	141,111		$	123,944		$	264,429		$	272,864
Reconciliation to operating income:
Capital (gains) losses, derivatives and other, included in investment related (gains) losses, net		(66,949	)		(26,362	)		(6,645	)		(26,171	)
Capital (gains) losses on funds withheld:
Included in investment income		(3,460	)		(4,671	)		(2,784	)		3,156
Included in policy acquisition costs and other insurance expenses		99			1,165			235			(86	)
Embedded derivatives:
Included in investment related (gains) losses, net		51,599			9,968			(37,417	)		(70,105	)
Included in interest credited		(1,095	)		13,657			24,410			(3,731	)
Included in policy acquisition costs and other insurance expenses		—			(1,348	)		—			566
DAC offset, net		968			2,703			(7,578	)		49,871
Gain on repurchase of collateral finance facility securities		—			—			—			(3,231	)
Loss on retirement of Preferred Income Equity Redeemable Securities (“PIERS”)		—			—			—			2,854

Operating income	$	122,273		$	119,056		$	234,650		$	225,987

Reconciliation of Consolidated Pre-tax Net Income to Pre-tax Operating Income

(Dollars in thousands)


	Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited)	2012			2011			2012			2011
Income before income taxes	$	215,892		$	187,169		$	396,655		$	413,924
Reconciliation to pre-tax operating income:
Capital (gains) losses, derivatives and other, included in investment related (gains) losses, net		(102,184	)		(40,152	)		(8,086	)		(39,053	)
Capital (gains) losses on funds withheld:
Included in investment income		(5,323	)		(7,185	)		(4,283	)		4,856
Included in policy acquisition costs and other insurance expenses		152			1,793			361			(132	)
Embedded derivatives:
Included in investment related (gains) losses, net		79,382			15,335			(57,565	)		(107,854	)
Included in interest credited		(1,685	)		21,011			37,554			(5,740	)
Included in policy acquisition costs and other insurance expenses		—			(2,073	)		—			871
DAC offset, net		1,490			4,158			(11,658	)		76,725
Gain on repurchase of collateral finance facility securities		—			—			—			(4,971	)
Loss on retirement of PIERS		—			—			—			4,391

Pre-tax operating income	$	187,724		$	180,056		$	352,978		$	343,017

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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

Reconciliation of Pre-tax Net Income to Pre-tax Operating Income

(Dollars in thousands)


	Three Months Ended June 30, 2012
(Unaudited)	Pre-tax net income (loss)			Capital (gains) losses, derivatives and other, net			Change in value of embedded derivatives, net			Pre-tax operating income (loss)
U.S. Operations:
Traditional	$	96,336		$	(649	)	$	(140	)	$	95,547
Asset Intensive		34,602			(48,776	)(1)		30,817	(2)		16,643
Financial Reinsurance		9,648			(32	)		—			9,616

Total U.S.		140,586			(49,457	)		30,677			121,806
Canada Operations		35,030			(4,523	)		—			30,507
Europe & South Africa		19,591			(1,156	)		—			18,435
Asia Pacific Operations		23,859			(1,132	)		—			22,727
Corporate and Other		(3,174	)		(2,577	)		—			(5,751	)

Consolidated	$	215,892		$	(58,845	)	$	30,677		$	187,724

(1)	Asset Intensive is net of $48,510 DAC offset.

(2)	Asset Intensive is net of $(47,020) DAC offset.


	Three Months Ended June 30, 2011
(Unaudited)	Pre-tax net income		Capital (gains) losses, derivatives and other, net			Change in value of embedded derivatives, net			Pre-tax operating income
U.S. Operations:
Traditional	$	91,240	$	(205	)	$	—		$	91,035
Asset Intensive		16,040		(8,377	)(1)		12,735	(2)		20,398
Financial Reinsurance		6,997		(7	)		—			6,990

Total U.S.		114,277		(8,589	)		12,735			118,423
Canada Operations		44,089		(2,135	)		—			41,954
Europe & South Africa		12,525		(756	)		—			11,769
Asia Pacific Operations		4,326		298			—			4,624
Corporate and Other		11,952		(8,666	)		—			3,286

Consolidated	$	187,169	$	(19,848	)	$	12,735		$	180,056

(1)	Asset Intensive is net of $25,696 DAC offset.

(2)	Asset Intensive is net of $(21,538) DAC offset.

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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

Reconciliation of Pre-tax Net Income to Pre-tax Operating Income

(Dollars in thousands)


	Six Months Ended June 30, 2012
(Unaudited)	Pre-tax net income (loss)			Capital (gains) losses, derivatives and other, net			Change in value of embedded derivatives, net			Pre-tax operating income (loss)
U.S. Operations:
Traditional	$	146,178		$	12,394		$	(99	)	$	158,473
Asset Intensive		71,192			(32,830	)(1)		2,762	(2)		41,124
Financial Reinsurance		15,961			107			—			16,068

Total U.S.		233,331			(20,329	)		2,663			215,665
Canada Operations		90,093			(12,927	)		—			77,166
Europe & South Africa		26,197			(3,138	)		—			23,059
Asia Pacific Operations		55,926			(6,290	)		—			49,636
Corporate and Other		(8,892	)		(3,656	)		—			(12,548	)

Consolidated	$	396,655		$	(46,340	)	$	2,663		$	352,978

(1)	Asset Intensive is net of $(34,332) DAC offset.

(2)	Asset Intensive is net of $22,674 DAC offset.


	Six Months Ended June 30, 2011
(Unaudited)	Pre-tax net income		Capital (gains) losses, derivatives and other, net			Change in value of embedded derivatives, net			Net (gain) loss on repurchase and retirement of securities			Pre-tax operating income
U.S. Operations:
Traditional	$	166,152	$	(9,080	)	$	—		$	—		$	157,072
Asset Intensive		82,577		(2,241	)(1)		(39,010	)(2)		—			41,326
Financial Reinsurance		13,117		28			—			—			13,145

Total U.S.		261,846		(11,293	)		(39,010	)					211,543
Canada Operations		74,001		(6,524	)		—			—			67,477
Europe & South Africa		35,060		(1,049	)		—			—			34,011
Asia Pacific Operations		26,302		628			—			—			26,930
Corporate and Other		16,715		(13,079	)		—			(580	)		3,056

Consolidated	$	413,924	$	(31,317	)	$	(39,010	)	$	(580	)	$	343,017

(1)	Asset Intensive is net of $3,012 DAC offset.

(2)	Asset Intensive is net of $73,713 DAC offset.

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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

Per Share and Shares Data

(In thousands, except per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
(Unaudited)	2012		2011		2012		2011
Diluted earnings per share from operating income	$	1.65	$	1.60	$	3.17	$	3.05

Earnings per share from net income:
Basic earnings per share	$	1.91	$	1.68	$	3.59	$	3.71
Diluted earnings per share	$	1.91	$	1.66	$	3.57	$	3.68

Weighted average number of common and common equivalent shares outstanding		74,054		74,530		74,048		74,184


	At or For the Six Months Ended June 30,
(Unaudited)	2012		2011
Treasury shares		5,415		5,062
Common shares outstanding		73,722		74,076
Book value per share outstanding	$	84.75	$	67.81
Book value per share outstanding, before impact of AOCI	$	60.34	$	53.72

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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Dollars in thousands)


	Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited)	2012			2011			2012			2011
Revenues:
Net premiums	$	1,950,661		$	1,788,676		$	3,814,143		$	3,524,806
Investment income, net of related expenses		328,334			337,436			669,274			708,476
Investment related gains (losses), net:
Other-than-temporary impairments on fixed maturity securities		(1,959	)		(5,582	)		(9,566	)		(7,138	)
Other-than-temporary impairments on fixed maturity securities transferred to (from) accumulated other comprehensive income		162			292			(7,059	)		292
Other investment related gains (losses), net		25,598			32,678			83,946			157,854

Total investment related gains (losses), net		23,801			27,388			67,321			151,008
Other revenue		72,957			50,477			117,990			102,122

Total revenues		2,375,753			2,203,977			4,668,728			4,486,412

Benefits and expenses:
Claims and other policy benefits		1,625,446			1,520,013			3,205,595			2,989,462
Interest credited		66,697			96,196			154,739			202,259
Policy acquisition costs and other insurance expenses		335,939			274,519			643,573			620,766
Other operating expenses		105,541			97,161			215,639			203,311
Interest expense		23,360			25,818			46,682			50,387
Collateral finance facility expense		2,878			3,101			5,845			6,303

Total benefits and expenses		2,159,861			2,016,808			4,272,073			4,072,488

Income before income taxes		215,892			187,169			396,655			413,924
Income tax expense		74,781			63,225			132,226			141,060

Net income	$	141,111		$	123,944		$	264,429		$	272,864

# # #

EX-99.2

Exhibit 99.2

LOGO

Financial Supplement

Second Quarter 2012

(Unaudited)

World Headquarters

1370 Timberlake Manor Parkway

Chesterfield, Missouri 63017

U.S.A.

Internet address

www.rgare.com

Contacts:

Jack B. Lay

Senior Executive Vice President and Chief Financial Officer

Phone: (636) 736-7000

e-mail: jlay@rgare.com

John Hayden

Sr. Vice President

Controller & Investor Relations

Phone: (636) 300-8828

e-mail: jhayden@rgare.com


Current Ratings
	Standard & Poor’s	A.M. Best	Moody’s
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”.

Reinsurance Group of America, Incorporated

Financial Supplement

2nd 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 shareholder’s equity excluding AOCI.


				Page 1

Reinsurance Group of America, Incorporated

Financial Highlights (1)


	Three Months Ended or As of															Current Qtr			Year-to-Date
(USD thousands, except inforce & per share data)	June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			June 30, 2011			vs. PY Quarter			June 30, 2012		June 30, 2011		Change
Net premiums	$	1,950,661		$	1,863,482		$	2,034,716		$	1,776,165		$	1,788,676		$	161,985		$	3,814,143	$	3,524,806	$	289,337
Net income		141,111			123,318			138,579			134,602			123,944			17,167			264,429		272,864		(8,435	)
Operating income		122,273			112,377			120,772			138,837			119,056			3,217			234,650		225,987		8,663
Operating return on equity (ex AOCI)—annualized		11.2	%		10.6	%		11.7	%		13.8	%		12.2	%		-1.0	%
Operating return on equity (ex AOCI)—trailing 12 months		11.8	%		12.0	%		12.2	%		13.2	%		13.0	%		-1.2	%
Total assets		38,344,323			32,286,082			31,633,973			30,736,591			30,212,717			8,131,606

Assumed Life Reinsurance in Force (in billions)
U.S.	$	1,405.8		$	1,406.1		$	1,348.5		$	1,347.9		$	1,343.2		$	62.6
Canada		365.1			364.5			344.9			329.5			350.3			14.8
Europe & South Africa		525.2			529.7			513.4			515.0			529.7			(4.5	)
Asia Pacific		486.2			470.7			457.6			422.8			435.6			50.6

Total Life Reinsurance in Force	$	2,782.3		$	2,771.0		$	2,664.4		$	2,615.2		$	2,658.8		$	123.5

Assumed New Business Production (in billions)
U.S.	$	24.2		$	84.9		$	24.8		$	30.1		$	24.3		$	(0.1	)	$	109.1	$	55.6	$	53.5
Canada		12.6			13.1			11.3			14.0			13.4			(0.8	)		25.7		25.8		(0.1	)
Europe & South Africa		25.5			14.8			24.9			38.7			47.6			(22.1	)		40.3		84.7		(44.4	)
Asia Pacific		24.5			5.7			74.0			27.9			9.7			14.8			30.2		17.1		13.1

Total New Business Production	$	86.8		$	118.5		$	135.0		$	110.7		$	95.0		$	(8.2	)	$	205.3	$	183.2	$	22.1

Per Share and Shares Data
Basic earnings per share
Net income	$	1.91		$	1.68		$	1.89		$	1.82		$	1.68		$	0.23		$	3.59	$	3.71	$	(0.12	)
Operating income	$	1.66		$	1.53		$	1.65		$	1.88		$	1.61		$	0.05		$	3.19	$	3.07	$	0.12
Diluted earnings per share
Net income	$	1.91		$	1.67		$	1.88		$	1.81		$	1.66		$	0.25		$	3.57	$	3.68	$	(0.11	)
Operating income	$	1.65		$	1.52		$	1.64		$	1.87		$	1.60		$	0.05		$	3.17	$	3.05	$	0.12

Wgt. average common shares outstanding (basic)		73,718			73,575			73,304			73,856			73,971			(253	)		73,646		73,593		53
Wgt. average common shares outstanding (diluted)		74,054			74,043			73,812			74,254			74,530			(476	)		74,048		74,184		(136	)

Common shares issued		79,138			79,138			79,138			79,138			79,138			—			79,138		79,138		—
Treasury shares		5,415			5,426			5,770			5,871			5,062			353			5,415		5,062		353
Common shares outstanding		73,723			73,712			73,368			73,267			74,076			(353	)		73,723		74,076		(353	)

Book value per share	$	84.75		$	80.44		$	79.31		$	73.15		$	67.81
Per share effect of accumulated other comprehensive income (AOCI)	$	24.41		$	21.87		$	22.06		$	17.68		$	14.09
Book value per share, excluding AOCI	$	60.34		$	58.57		$	57.25		$	55.47		$	53.72

Shareholder dividends paid	$	13,268.6		$	13,255.3		$	13,189.3		$	13,336.6		$	8,870.7		$	4,397.9		$	26,523.9	$	17,702.8	$	8,821.1

(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 2

Reinsurance Group of America, Incorporated

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


	Three Months Ended															Current Qtr			Year-to-Date
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			vs. PY			June 30,			June 30,
(USD thousands)	2012			2012			2011			2011			2011			Quarter			2012			2011			Change
Revenues:
Net premiums	$	1,950,661		$	1,863,482		$	2,034,716		$	1,776,165		$	1,788,676		$	161,985		$	3,814,143		$	3,524,806		$	289,337
Investment income, net of related expenses		328,334			340,940			304,511			268,210			337,436			(9,102	)		669,274			708,476			(39,202	)
Investment related gains (losses), net
OTTI on fixed maturity securities		(1,959	)		(7,607	)		(11,824	)		(11,911	)		(5,582	)		3,623			(9,566	)		(7,138	)		(2,428	)
OTTI on fixed maturity securities transferred to/from AOCI		162			(7,221	)		543			3,089			292			(130	)		(7,059	)		292			(7,351	)
Other investment related gains (losses), net		25,598			58,348			(36,183	)		(130,778	)		32,678			(7,080	)		83,946			157,854			(73,908	)

Total investment related gains (losses), net		23,801			43,520			(47,464	)		(139,600	)		27,388			(3,587	)		67,321			151,008			(83,687	)
Other revenue		72,957			45,033			56,456			90,132			50,477			22,480			117,990			102,122			15,868

Total revenues		2,375,753			2,292,975			2,348,219			1,994,907			2,203,977			171,776			4,668,728			4,486,412			182,316

Benefits and expenses:
Claims and other policy benefits		1,625,446			1,580,149			1,720,956			1,514,765			1,520,013			105,433			3,205,595			2,989,462			216,133
Interest credited		66,697			88,042			78,884			35,251			96,196			(29,499	)		154,739			202,259			(47,520	)
Policy acquisition costs and other insurance expenses		335,939			307,634			204,883			164,372			274,519			61,420			643,573			620,766			22,807
Other operating expenses		105,541			110,098			122,000			94,029			97,161			8,380			215,639			203,311			12,328
Interest expense		23,360			23,322			25,226			27,025			25,818			(2,458	)		46,682			50,387			(3,705	)
Collateral finance facility expense		2,878			2,967			3,019			3,069			3,101			(223	)		5,845			6,303			(458	)

Total benefits and expenses		2,159,861			2,112,212			2,154,968			1,838,511			2,016,808			143,053			4,272,073			4,072,488			199,585

Income before income taxes		215,892			180,763			193,251			156,396			187,169			28,723			396,655			413,924			(17,269	)

Income tax expense		74,781			57,445			54,672			21,794			63,225			11,556			132,226			141,060			(8,834	)

Net income	$	141,111		$	123,318		$	138,579		$	134,602		$	123,944		$	17,167		$	264,429		$	272,864		$	(8,435	)

Pre-tax Operating Income Reconciliation:
Income before income taxes		215,892			180,763			193,251			156,396			187,169			28,723			396,655			413,924			(17,269	)
Investment and derivative losses (gains) — non-operating (2)		(102,184	)		94,098			(5,360	)		(221,194	)		(40,152	)		(62,032	)		(8,086	)		(39,053	)		30,967
Change in value of modified coinsurance and funds withheld embedded derivatives (2)		4,453			9,428			85,722			102,574			(10,525	)		14,978			13,881			(101,060	)		114,941
GMXB embedded derivatives (2)		74,929			(146,375	)		(29,261	)		260,239			25,860			49,069			(71,446	)		(6,794	)		(64,652	)
Funds withheld losses (gains) — investment income		(5,323	)		1,040			(194	)		(9,806	)		(7,185	)		1,862			(4,283	)		4,856			(9,139	)
Funds withheld losses (gains) — policy acq. costs		152			209			47			1,034			1,793			(1,641	)		361			(132	)		493
EIA embedded derivatives — interest credited		(1,685	)		39,239			9,490			37,539			21,011			(22,696	)		37,554			(5,740	)		43,294
EIA embedded derivatives — policy acq. costs		—			—			6,908			(3,664	)		(2,073	)		2,073			—			871			(871	)
DAC offset, net		1,490			(13,148	)		(82,837	)		(107,709	)		4,158			(2,668	)		(11,658	)		76,725			(88,383	)
Gain on repurchase of collateral finance facility securities		—			—			(9,725	)		(50,869	)		—			—			—			(4,971	)		4,971
Loss on retirement of Preferred Income Equity Redeemable Securities (“PIERS”)		—			—			—			—			—			—			—			4,391			(4,391	)

Operating Income Before Income Taxes	$	187,724		$	165,254		$	168,041		$	164,540		$	180,056		$	7,668		$	352,978		$	343,017		$	9,961

After-tax Operating Income Reconciliation:
Net Income		141,111			123,318			138,579			134,602			123,944			17,167			264,429			272,864			(8,435	)
Investment and derivative losses (gains) — non-operating (2)		(66,949	)		60,304			(4,906	)		(144,834	)		(26,362	)		(40,587	)		(6,645	)		(26,171	)		19,526
Change in value of modified coinsurance and funds withheld embedded derivatives (2)		2,895			6,128			55,719			66,673			(6,841	)		9,736			9,023			(65,689	)		74,712
GMXB embedded derivatives (2)		48,704			(95,144	)		(19,019	)		169,155			16,809			31,895			(46,440	)		(4,416	)		(42,024	)
Funds withheld losses (gains) — investment income		(3,460	)		676			(126	)		(6,374	)		(4,671	)		1,211			(2,784	)		3,156			(5,940	)
Funds withheld losses (gains) — policy acq. costs		99			136			31			672			1,165			(1,066	)		235			(86	)		321
EIA embedded derivatives — interest credited		(1,095	)		25,505			6,169			24,400			13,657			(14,752	)		24,410			(3,731	)		28,141
EIA embedded derivatives — policy acq. costs		—			—			4,490			(2,381	)		(1,348	)		1,348			—			566			(566	)
DAC offset, net		968			(8,546	)		(53,844	)		(70,011	)		2,703			(1,735	)		(7,578	)		49,871			(57,449	)
Gain on repurchase of collateral finance facility securities		—			—			(6,321	)		(33,065	)		—			—			—			(3,231	)		3,231
Loss on retirement of PIERS		—			—			—			—			—			—			—			2,854			(2,854	)

Operating Income	$	122,273		$	112,377		$	120,772		$	138,837		$	119,056		$	3,217		$	234,650		$	225,987		$	8,663

(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			Year-to-Date
(USD thousands, except per share data)	June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			June 30, 2011		vs. PY Quarter			June 30, 2012			June 30, 2011		Change
Revenues:
Net premiums	$	1,950,661		$	1,863,482		$	2,034,716		$	1,776,165		$	1,788,676	$	161,985		$	3,814,143		$	3,524,806	$	289,337
Investment income, net of related expenses		323,011			341,980			304,317			258,404			330,251		(7,240	)		664,991			713,332		(48,341	)
Investment related gains (losses), net		999			671			3,637			2,019			2,571		(1,572	)		1,670			4,101		(2,431	)
Other revenue		72,957			45,033			46,731			39,263			50,477		22,480			117,990			97,151		20,839

Total revenues		2,347,628			2,251,166			2,389,401			2,075,851			2,171,975		175,653			4,598,794			4,339,390		259,404
Benefits and expenses:
Claims and other policy benefits		1,625,446			1,580,149			1,720,956			1,514,765			1,520,013		105,433			3,205,595			2,989,462		216,133
Interest credited		68,382			48,803			69,394			(2,288	)		75,185		(6,803	)		117,185			207,999		(90,814	)
Policy acquisition costs and other insurance expenses		334,297			320,573			280,765			274,711			270,641		63,656			654,870			543,302		111,568
Other operating expenses		105,541			110,098			122,000			94,029			97,161		8,380			215,639			198,920		16,719
Interest expense		23,360			23,322			25,226			27,025			25,818		(2,458	)		46,682			50,387		(3,705	)
Collateral finance facility expense		2,878			2,967			3,019			3,069			3,101		(223	)		5,845			6,303		(458	)

Total benefits and expenses		2,159,904			2,085,912			2,221,360			1,911,311			1,991,919		167,985			4,245,816			3,996,373		249,443
Operating income before income taxes		187,724			165,254			168,041			164,540			180,056		7,668			352,978			343,017		9,961
Operating income tax expense		65,451			52,877			47,269			25,703			61,000		4,451			118,328			117,030		1,298

Operating income	$	122,273		$	112,377		$	120,772		$	138,837		$	119,056	$	3,217		$	234,650		$	225,987	$	8,663

Wgt. Average Common Shares Outstanding (Diluted)		74,054			74,043			73,812			74,254			74,530		(476	)		74,048			74,184		(136	)
Diluted Earnings Per Share - Operating Income	$	1.65		$	1.52		$	1.64		$	1.87		$	1.60	$	0.05		$	3.17		$	3.05	$	0.12

Foreign currency effect *(2)*:
Net premiums	$	(45,800	)	$	(4,924	)	$	(5,509	)	$	53,399		$	77,277	$	(123,077	)	$	(50,724	)	$	119,764	$	(170,488	)
Operating income before income taxes	$	(3,471	)	$	(387	)	$	(2,407	)	$	6,846		$	5,713	$	(9,184	)	$	(3,858	)	$	10,347	$	(14,205	)

(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)	June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			June 30, 2011
Assets
Fixed maturity securities, available-for-sale	$	17,244,192		$	16,794,057		$	16,200,950		$	15,557,032		$	15,153,807
Mortgage loans on real estate		1,157,049			1,040,733			991,731			934,694			908,048
Policy loans		1,250,238			1,260,070			1,260,400			1,228,890			1,229,663
Funds withheld at interest		5,457,888			5,472,532			5,410,424			5,445,886			5,671,844
Short-term investments		49,981			75,425			88,566			81,747			125,618
Investment Receivable		5,406,898			—			—			—			—
Other invested assets		940,605			867,507			1,012,541			1,020,043			799,341

Total investments		31,506,851			25,510,324			24,964,612			24,268,292			23,888,321
Cash and cash equivalents		957,341			873,933			962,870			802,651			710,973
Accrued investment income		182,586			173,629			144,334			190,298			160,436
Premiums receivable and other reinsurance balances		1,104,176			1,131,334			1,059,572			1,060,631			1,045,131
Reinsurance ceded receivables		626,734			597,508			626,194			727,290			781,006
Deferred policy acquisition costs		3,605,008			3,629,424			3,543,925			3,340,394			3,287,126
Other assets		361,627			369,930			332,466			347,035			339,724

Total assets	$	38,344,323		$	32,286,082		$	31,633,973		$	30,736,591		$	30,212,717

Liabilities and Stockholders’ Equity
Future policy benefits		10,725,096		$	10,413,361		$	9,903,886		$	9,445,222		$	9,642,814
Interest-sensitive contract liabilities		13,352,601			8,252,995			8,394,468			8,378,159			8,100,608
Other policy claims and benefits		3,026,467			2,984,681			2,841,373			2,826,297			2,774,031
Other reinsurance balances		249,336			132,389			118,219			136,298			159,340
Deferred income taxes		1,785,614			1,728,765			1,679,834			1,518,990			1,276,153
Other liabilities		890,687			777,678			810,775			776,239			784,291
Short-term debt		—			—			—			199,997			199,993
Long-term debt		1,414,969			1,414,829			1,414,688			1,414,546			1,414,406
Collateral finance facility		651,936			652,029			652,032			681,004			837,789

Total liabilities		32,096,706			26,356,727			25,815,275			25,376,752			25,189,425

Stockholders’ Equity:
Common stock, at par value		791			791			791			791			791
Additional paid-in-capital		1,740,415			1,736,184			1,727,774			1,719,683			1,713,893
Retained earnings		3,033,505			2,906,310			2,818,429			2,695,680			2,575,240
Treasury stock		(326,292	)		(325,732	)		(346,449	)		(352,106	)		(310,856	)

Accumulated other comprehensive income (AOCI):
Accumulated currency translation adjustment, net of income taxes		237,010			253,875			229,795			189,347			291,189
Unrealized appreciation of securities, net of income taxes		1,591,647			1,388,597			1,419,318			1,119,724			767,023
Pension and postretirement benefits, net of income taxes		(29,459	)		(30,670	)		(30,960	)		(13,280	)		(13,988	)

Total stockholders’ equity		6,247,617			5,929,355			5,818,698			5,359,839			5,023,292

Total liabilities and stockholders’ equity	$	38,344,323		$	32,286,082		$	31,633,973		$	30,736,591		$	30,212,717

Total stockholders’ equity, excluding AOCI	$	4,448,419		$	4,317,553		$	4,200,545		$	4,064,048		$	3,979,068

(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			Year-to-Date
(USD thousands)	June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			June 30, 2011			vs. PY Quarter			June 30, 2012			June 30, 2011			Change
Revenues:
Net premiums	$	1,082,400		$	1,021,507		$	1,099,409		$	971,190		$	973,837		$	108,563		$	2,103,907		$	1,908,890		$	195,017
Investment income, net of related expenses		133,652			132,417			125,528			123,686			125,688			7,964			266,069			246,436			19,633
Other revenue		401			1,003			1,571			599			738			(337	)		1,404			1,231			173

Total revenues		1,216,453			1,154,927			1,226,508			1,095,475			1,100,263			116,190			2,371,380			2,156,557			214,823

Benefits and expenses:
Claims and other policy benefits		934,807			907,461			952,609			844,090			839,173			95,634			1,842,268			1,661,580			180,688
Interest credited		14,555			15,054			15,174			15,166			14,967			(412	)		29,609			29,551			58
Policy acquisition costs and other insurance expenses		150,958			145,485			152,246			135,747			135,602			15,356			296,443			267,518			28,925
Other operating expenses		20,586			24,001			23,971			20,299			19,486			1,100			44,587			40,836			3,751

Total benefits and expenses		1,120,906			1,092,001			1,144,000			1,015,302			1,009,228			111,678			2,212,907			1,999,485			213,422

Operating income before income taxes		95,547			62,926			82,508			80,173			91,035			4,512			158,473			157,072			1,401

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		95,547			62,926			82,508			80,173			91,035			4,512			158,473			157,072			1,401
Investment and derivative (losses) gains - non-operating		789			(13,084	)		30,075			5,056			205			584			(12,295	)		9,080			(21,375	)

Income before income taxes	$	96,336		$	49,842		$	112,583		$	85,229		$	91,240		$	5,096		$	146,178		$	166,152		$	(19,974	)


Loss and Expense Ratios:
Claims and other policy benefits		86.4	%		88.8	%		86.6	%		86.9	%		86.2	%		0.2	%		87.6	%		87.0	%		0.6	%
Policy acquisition costs and other insurance expenses		13.9	%		14.2	%		13.8	%		14.0	%		13.9	%		0.0	%		14.1	%		14.0	%		0.1	%
Other operating expenses		1.9	%		2.3	%		2.2	%		2.1	%		2.0	%		-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			Year-to-Date
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			vs. PY			June 30,			June 30,
(USD thousands except account values)	2012			2012			2011			2011			2011			Quarter			2012			2011			Change
Revenues:
Net premiums	$	3,355		$	3,596		$	3,619		$	2,786		$	3,459		$	(104	)	$	6,951		$	6,784		$	167
Investment income, net of related expenses		90,527			111,501			79,604			20,361			98,080			(7,553	)		202,028			257,613			(55,585	)
Investment related gains (losses), net		(18	)		(30	)		(82	)		(14	)		(20	)		2			(48	)		(36	)		(12	)
Other revenue		29,254			19,893			20,154			19,827			23,536			5,718			49,147			47,537			1,610

Total revenues		123,118			134,960			103,295			42,960			125,055			(1,937	)		258,078			311,898			(53,820	)
Benefits and expenses:
Claims and other policy benefits		5,102			1,902			2,766			4,431			4,264			838			7,004			7,080			(76	)
Interest credited		53,611			33,511			53,965			(17,733	)		59,603			(5,992	)		87,122			177,833			(90,711	)
Policy acquisition costs and other insurance expenses		44,955			72,004			16,858			52,854			39,047			5,908			116,959			81,762			35,197
Other operating expenses		2,807			3,062			2,434			1,886			1,743			1,064			5,869			3,897			1,972

Total benefits and expenses		106,475			110,479			76,023			41,438			104,657			1,818			216,954			270,572			(53,618	)
Operating income (loss) before income taxes		16,643			24,481			27,272			1,522			20,398			(3,755	)		41,124			41,326			(202	)

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		16,643			24,481			27,272			1,522			20,398			(3,755	)		41,124			41,326			(202	)
Investment and derivative gains (losses) - non-operating (2)		92,008			(96,355	)		(23,077	)		219,530			28,681			63,327			(4,347	)		9,977			(14,324	)
Change in value of modified coinsurance and funds withheld embedded derivatives (2)		(4,593	)		(9,387	)		(86,759	)		(103,949	)		10,525			(15,118	)		(13,980	)		101,060			(115,040	)
GMXB embedded derivatives (2)		(74,929	)		146,375			29,261			(260,239	)		(25,860	)		(49,069	)		71,446			6,794			64,652
Funds withheld gains (losses) - investment income		5,430			(2,224	)		194			9,806			7,185			(1,755	)		3,206			(4,856	)		8,062
Funds withheld gains (losses) - policy acq. costs		(152	)		(209	)		(47	)		(1,034	)		(1,793	)		1,641			(361	)		132			(493	)
EIA embedded derivatives - interest credited		1,685			(39,239	)		(9,490	)		(37,539	)		(21,011	)		22,696			(37,554	)		5,740			(43,294	)
EIA embedded derivatives - policy acq. costs		—			—			(6,908	)		3,664			2,073			(2,073	)		—			(871	)		871
DAC offset, net		(1,490	)		13,148			82,837			107,709			(4,158	)		2,668			11,658			(76,725	)		88,383

Income (loss) before income taxes	$	34,602		$	36,590		$	13,283		$	(60,530	)	$	16,040		$	18,562		$	71,192		$	82,577		$	(11,385	)

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

Fixed annuities (deferred)	$	5,942		$	897		$	879		$	856		$	835

Net interest spread (fixed annuities):		1.8	%		2.4	%		2.8	%		2.7	%		2.2	%

Equity-indexed annuities	$	4,867		$	4,895		$	4,881		$	4,327		$	4,324

Variable annuities:
No riders	$	944		$	1,040		$	986		$	979		$	1,114
GMDB only		79			82			85			76			89
GMIB only		6			6			6			5			6
GMAB only		54			57			55			54			63
GMWB only		1,620			1,704			1,538			1,524			1,751
GMDB / WB		451			460			498			428			493
Other		30			32			31			30			35

Total VA account values	$	3,184		$	3,381		$	3,199		$	3,096		$	3,551

Fair value of liabilities associated with living benefit riders	$	205		$	130		$	277		$	306		$	46

Interest-sensitive contract liabilities associated with:

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

Bank-owned life insurance (BOLI)	$	515		$	512		$	508		$	505		$	502

Other asset-intensive business	$	77		$	78		$	78		$	79		$	85


				Page 8

Reinsurance Group of America, Incorporated

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


	Three Months Ended													Current Qtr			Year-to-Date
	June 30,		March 31,			Dec. 31,			Sept. 30,			June 30,		vs. PY			June 30,			June 30,
(USD thousands)	2012		2012			2011			2011			2011		Quarter			2012			2011			Change
Revenues:
Investment income, net of related expenses	$	179	$	164		$	131		$	168		$	62	$	117		$	343		$	(135	)	$	478
Other revenue		11,734		8,910			9,558			8,619			9,194		2,540			20,644			18,196			2,448

Total revenues		11,913		9,074			9,689			8,787			9,256		2,657			20,987			18,061			2,926

Benefits and expenses:
Policy acquisition costs and other insurance expenses		704		770			743			798			797		(93	)		1,474			1,650			(176	)
Other operating expenses		1,593		1,852			2,025			1,584			1,469		124			3,445			3,266			179

Total benefits and expenses		2,297		2,622			2,768			2,382			2,266		31			4,919			4,916			3

Operating income before income taxes		9,616		6,452			6,921			6,405			6,990		2,626			16,068			13,145			2,923

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		9,616		6,452			6,921			6,405			6,990		2,626			16,068			13,145			2,923
Investment and derivative gains (losses) — non-operating		32		(139	)		(87	)		(13	)		7		25			(107	)		(28	)		(79	)

Income before income taxes	$	9,648	$	6,313		$	6,834		$	6,392		$	6,997	$	2,651		$	15,961		$	13,117		$	2,844


				Page 9

Reinsurance Group of America, Incorporated

Canadian Segment Pre-tax Operating Income (1)


	Three Months Ended															Current Qtr			Year-to-Date
(USD thousands)	June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			June 30, 2011			vs. PY Quarter			June 30, 2012			June 30, 2011			Change
Revenues:
Net premiums	$	221,167		$	218,210		$	224,763		$	185,790		$	209,717		$	11,450		$	439,377		$	424,745		$	14,632
Investment income, net of related expenses		46,349			47,716			42,604			53,698			46,083			266			94,065			92,002			2,063
Investment related gains (losses), net		995			1,323			1,579			1,267			1,183			(188	)		2,318			2,352			(34	)
Other revenue		3,205			(30	)		(9	)		440			4,980			(1,775	)		3,175			5,002			(1,827	)

Total revenues		271,716			267,219			268,937			241,195			261,963			9,753			538,935			524,101			14,834

Benefits and expenses:
Claims and other policy benefits		184,857			160,625			165,456			162,734			165,860			18,997			345,482			344,915			567
Interest credited		—			—			—			—			—			—			—			—			—
Policy acquisition costs and other insurance expenses		47,476			50,285			52,140			34,350			45,356			2,120			97,761			94,222			3,539
Other operating expenses		8,876			9,650			10,645			9,129			8,793			83			18,526			17,487			1,039

Total benefits and expenses		241,209			220,560			228,241			206,213			220,009			21,200			461,769			456,624			5,145

Operating income before income taxes		30,507			46,659			40,696			34,982			41,954			(11,447	)		77,166			67,477			9,689

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		30,507			46,659			40,696			34,982			41,954			(11,447	)		77,166			67,477			9,689
Investment and derivative gains (losses) — non-operating		4,630			7,220			6,545			8,729			2,135			2,495			11,850			6,524			5,326
Funds withheld gains (losses) — investment income		(107	)		1,184			—			—			—			(107	)		1,077			—			1,077

Income before income taxes	$	35,030		$	55,063		$	47,241		$	43,711		$	44,089		$	(9,059	)	$	90,093		$	74,001		$	16,092

Loss and Expense Ratios:
Loss ratios (creditor business)		38.0	%		34.1	%		36.3	%		38.4	%		39.7	%		-1.7	%		36.1	%		38.6	%		-2.5	%
Loss ratios (excluding creditor business)		95.5	%		83.8	%		85.5	%		96.9	%		88.8	%		6.7	%		89.7	%		93.2	%		-3.5	%
Claims and other policy benefits / (net premiums + investment income)		69.1	%		60.4	%		61.9	%		68.0	%		64.8	%		4.3	%		64.8	%		66.7	%		-1.9	%
Policy acquisition costs and other insurance expenses (creditor business)		58.5	%		57.1	%		59.2	%		52.8	%		57.3	%		1.2	%		57.8	%		56.2	%		1.6	%
Policy acquisition costs and other insurance expenses (excluding creditor business)		11.8	%		14.2	%		10.9	%		10.9	%		12.2	%		-0.4	%		13.0	%		11.8	%		1.2	%
Other operating expenses		4.0	%		4.4	%		4.7	%		4.9	%		4.2	%		-0.2	%		4.2	%		4.1	%		0.1	%

Foreign currency effect *(2)*:
Net premiums	$	(9,838	)	$	(3,328	)	$	(2,669	)	$	10,269		$	12,409		$	(22,247	)	$	(13,166	)	$	23,657		$	(36,823	)
Operating income before income taxes	$	(2,905	)	$	(554	)	$	(641	)	$	2,571		$	3,021		$	(5,926	)	$	(3,459	)	$	3,474		$	(6,933	)

Creditor reinsurance net premiums	$	45,883		$	44,810		$	54,227		$	29,895		$	41,613		$	4,270		$	90,693		$	93,197		$	(2,504	)

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			Year-to-Date
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			vs. PY			June 30,			June 30,
(USD thousands)	2012			2012			2011			2011			2011			Quarter			2012			2011			Change
Revenues:
Net premiums	$	310,075		$	292,771		$	356,284		$	286,054		$	283,019		$	27,056		$	602,846		$	552,139		$	50,707
Investment income, net of related expenses		11,248			11,331			11,709			11,242			10,865			383			22,579			21,400			1,179
Other revenue		1,464			2,253			1,035			1,196			1,745			(281	)		3,717			2,800			917

Total revenues		322,787			306,355			369,028			298,492			295,629			27,158			629,142			576,339			52,803

Benefits and expenses:
Claims and other policy benefits		263,992			261,484			293,126			248,890			242,973			21,019			525,476			459,905			65,571
Policy acquisition costs and other insurance expenses		13,550			15,052			13,329			15,004			14,360			(810	)		28,602			30,884			(2,282	)
Other operating expenses		26,810			25,195			29,511			24,569			26,527			283			52,005			51,539			466

Total benefits and expenses		304,352			301,731			335,966			288,463			283,860			20,492			606,083			542,328			63,755

Operating income before income taxes		18,435			4,624			33,062			10,029			11,769			6,666			23,059			34,011			(10,952	)

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		18,435			4,624			33,062			10,029			11,769			6,666			23,059			34,011			(10,952	)
Investment and derivative gains (losses) — non-operating		1,156			1,982			2,951			2,000			756			400			3,138			1,049			2,089

Income before income taxes	$	19,591		$	6,606		$	36,013		$	12,029		$	12,525		$	7,066		$	26,197		$	35,060		$	(8,863	)

Loss and Expense Ratios:
Claims and other policy benefits		85.1	%		89.3	%		82.3	%		87.0	%		85.9	%		-0.8	%		87.2	%		83.3	%		3.9	%
Policy acquisition costs and other insurance expenses		4.4	%		5.1	%		3.7	%		5.2	%		5.1	%		-0.7	%		4.7	%		5.6	%		-0.9	%
Other operating expenses		8.6	%		8.6	%		8.3	%		8.6	%		9.4	%		-0.8	%		8.6	%		9.3	%		-0.7	%

Foreign currency effect *(2)*:
Net premiums	$	(22,973	)	$	(11,362	)	$	(9,136	)	$	9,234		$	24,686		$	(47,659	)	$	(34,335	)	$	31,152		$	(65,487	)
Operating income before income taxes	$	(1,013	)	$	(1,417	)	$	(1,605	)	$	669		$	1,712		$	(2,725	)	$	(2,430	)	$	1,945		$	(4,375	)

Critical illness net premiums	$	62,001		$	61,548		$	61,564		$	59,679		$	63,320		$	(1,319	)	$	123,549		$	123,581		$	(32	)

(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			Year-to-Date
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			vs. PY			June 30,			June 30,
(USD thousands)	2012			2012			2011			2011			2011			Quarter			2012			2011			Change
Revenues:
Net premiums	$	331,945		$	325,350		$	348,358		$	328,259		$	316,356		$	15,589		$	657,295		$	627,873		$	29,422
Investment income, net of related expenses		20,711			22,578			21,666			21,472			21,756			(1,045	)		43,289			41,699			1,590
Investment related gains (losses), net		(164	)		(809	)		1,237			1,452			1,377			(1,541	)		(973	)		1,269			(2,242	)
Other revenue		24,109			7,408			9,741			8,557			7,283			16,826			31,517			15,775			15,742

Total revenues		376,601			354,527			381,002			359,740			346,772			29,829			731,128			686,616			44,512

Benefits and expenses:
Claims and other policy benefits		236,733			248,620			306,802			254,739			267,362			(30,629	)		485,353			515,292			(29,939	)
Interest Credited		216			238			254			280			615			(399	)		454			615			(161	)
Policy acquisition costs and other insurance expenses		89,996			50,847			58,713			49,854			48,082			41,914			140,843			92,563			48,280
Other operating expenses		26,929			27,913			30,254			27,598			26,089			840			54,842			51,216			3,626

Total benefits and expenses		353,874			327,618			396,023			332,471			342,148			11,726			681,492			659,686			21,806

Operating income (loss) before income taxes		22,727			26,909			(15,021	)		27,269			4,624			18,103			49,636			26,930			22,706

Operating to U.S. GAAP Reconciliation:
Operating income before income taxes		22,727			26,909			(15,021	)		27,269			4,624			18,103			49,636			26,930			22,706
Investment and derivative gains (losses) - non-operating		1,132			5,158			5,309			(1,625	)		(298	)		1,430			6,290			(628	)		6,918

Income (loss) before income taxes	$	23,859		$	32,067		$	(9,712	)	$	25,644		$	4,326		$	19,533		$	55,926		$	26,302		$	29,624

Loss and Expense Ratios:
Claims and other policy benefits		71.3	%		76.4	%		88.1	%		77.6	%		84.5	%		-13.2	%		73.8	%		82.1	%		-8.3	%
Policy acquisition costs and other insurance expenses		27.1	%		15.6	%		16.9	%		15.2	%		15.2	%		11.9	%		21.4	%		14.7	%		6.7	%
Other operating expenses		8.1	%		8.6	%		8.7	%		8.4	%		8.2	%		-0.1	%		8.3	%		8.2	%		0.1	%

Foreign currency effect *(2)*:
Net premiums	$	(12,998	)	$	9,756		$	6,296		$	33,908		$	40,222		$	(53,220	)	$	(3,242	)	$	65,047		$	(68,289	)
Operating income before income taxes	$	(614	)	$	1,529		$	325		$	3,379		$	557		$	(1,171	)	$	915		$	2,112		$	(1,197	)

Critical illness net premiums	$	46,700		$	40,333		$	40,566		$	30,135		$	41,003		$	5,697		$	87,033		$	86,625		$	408

(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
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,						June 30,			June 30,
(USD thousands)	2012			2012			2011			2011			2011						2012			2011			Change
Revenues:
Net premiums	$	1,719		$	2,048		$	2,283		$	2,086		$	2,288		$	(569	)	$	3,767		$	4,375		$	(608	)
Investment income, net of related expenses		20,345			16,273			23,075			27,777			27,717			(7,372	)		36,618			54,317			(17,699	)
Investment related gains (losses), net		186			187			903			(686	)		31			155			373			516			(143	)
Other revenue		2,790			5,596			4,681			25			3,001			(211	)		8,386			6,610			1,776

Total revenues		25,040			24,104			30,942			29,202			33,037			(7,997	)		49,144			65,818			(16,674	)

Benefits and expenses:
Claims and other policy benefits		(45	)		57			197			(119	)		381			(426	)		12			690			(678	)
Interest credited		—			—			1			(1	)		—			—			—			—			—
Policy acquisition costs and other insurance expenses		(13,342	)		(13,870	)		(13,264	)		(13,896	)		(12,603	)		(739	)		(27,212	)		(25,297	)		(1,915	)
Other operating expenses		17,940			18,425			23,160			8,964			13,054			4,886			36,365			30,679			5,686
Interest expense		23,360			23,322			25,226			27,025			25,818			(2,458	)		46,682			50,387			(3,705	)
Collateral finance facility expense		2,878			2,967			3,019			3,069			3,101			(223	)		5,845			6,303			(458	)

Total benefits and expenses		30,791			30,901			38,339			25,042			29,751			1,040			61,692			62,762			(1,070	)

Operating income (loss) before income taxes		(5,751	)		(6,797	)		(7,397	)		4,160			3,286			(9,037	)		(12,548	)		3,056			(15,604	)

Operating to U.S. GAAP Reconciliation:
Operating income (loss) before income taxes		(5,751	)		(6,797	)		(7,397	)		4,160			3,286			(9,037	)		(12,548	)		3,056			(15,604	)
Investment and derivative gains (losses) - non-operating		2,577			1,079			(15,319	)		(11,108	)		8,666			(6,089	)		3,656			13,079			(9,423	)
Gain on repurchase of collateral finance facility securities		—			—			9,725			50,869			—			—			—			4,971			(4,971	)
Loss on retirement of PIERS		—			—			—			—			—			—			—			(4,391	)		4,391

Income (loss) before income taxes	$	(3,174	)	$	(5,718	)	$	(12,991	)	$	43,921		$	11,952		$	(15,126	)	$	(8,892	)	$	16,715		$	(25,607	)

Foreign currency effect *(2)*:
Net premiums	$	9		$	10		$	—		$	(12	)	$	(40	)	$	49		$	19		$	(92	)	$	111
Operating income before income taxes	$	1,061		$	55		$	(486	)	$	227		$	423		$	638		$	1,116		$	2,816		$	(1,700	)

(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)	June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011		June 30, 2011		Current Qtr vs. PY Quarter			June 30, 2012			June 30, 2011		Change
U.S. Traditional	$	95,547		$	62,926		$	82,508		$	80,173	$	91,035	$	4,512		$	158,473		$	157,072	$	1,401
U.S. Asset Intensive		16,643			24,481			27,272			1,522		20,398		(3,755	)		41,124			41,326		(202	)
U.S. Financial Reinsurance		9,616			6,452			6,921			6,405		6,990		2,626			16,068			13,145		2,923

Total U.S. Segment		121,806			93,859			116,701			88,100		118,423		3,383			215,665			211,543		4,122
Canadian Segment		30,507			46,659			40,696			34,982		41,954		(11,447	)		77,166			67,477		9,689
Europe & South Africa Segment		18,435			4,624			33,062			10,029		11,769		6,666			23,059			34,011		(10,952	)
Asia Pacific Segment		22,727			26,909			(15,021	)		27,269		4,624		18,103			49,636			26,930		22,706
Corporate and Other		(5,751	)		(6,797	)		(7,397	)		4,160		3,286		(9,037	)		(12,548	)		3,056		(15,604	)

Consolidated	$	187,724		$	165,254		$	168,041		$	164,540	$	180,056	$	7,668		$	352,978		$	343,017	$	9,961

(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

(USD thousands)

Cash and Invested Assets


	June 30, 2012		March 31, 2012		Dec. 31, 2011		Sept. 30, 2011		June 30, 2011
Fixed maturity securities, available-for-sale	$	17,244,192	$	16,794,057	$	16,200,950	$	15,557,032	$	15,153,807
Mortgage loans on real estate		1,157,049		1,040,733		991,731		934,694		908,048
Policy loans		1,250,238		1,260,070		1,260,400		1,228,890		1,229,663
Funds withheld at interest		5,457,888		5,472,532		5,410,424		5,445,886		5,671,844
Short-term investments		49,981		75,425		88,566		81,747		125,618
Investment Receivable		5,406,898		—		—		—		—
Other invested assets		940,605		867,507		1,012,541		1,020,043		799,341
Cash and cash equivalents		957,341		873,933		962,870		802,651		710,973

Total cash and invested assets	$	32,464,192	$	26,384,257	$	25,927,482	$	25,070,943	$	24,599,294

Investment Income and Yield Summary

(Excludes Funds Withheld and Investment Receivable associated with a large fixed annuity annuity transaction executed during 2Q12)


	Three Months Ended															Current Qtr vs. PY Quarter			Year-to-Date
	June 30, 2012			March 31, 2012			Dec. 31, 2011			Sept. 30, 2011			June 30, 2011			Current Qtr vs. PY Quarter			June 30, 2012			June 30, 2011			Change
Average invested assets at amortized cost	$	18,584,971		$	18,347,561		$	17,765,960		$	17,683,301		$	17,446,168		$	1,138,803			18,351,827		$	16,992,394		$	1,359,433
Net investment income	$	230,383		$	227,370		$	226,077		$	229,373		$	228,728		$	1,655		$	457,753		$	448,636		$	9,117

Annualized investment yield (ratio of net investment income to average invested assets)		5.05	%		5.05	%		5.19	%		5.29	%		5.35	%		-0.30	%		5.05	%		5.35	%		-0.30	%


				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)


	June 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total			Other-than- temporary Impairment in AOCI
Available-for-sale:
Corporate securities		7,675,473		792,051		65,615	$	8,401,909		48.7	%	$	—
Canadian and Canadian provincial governments		2,579,161		1,350,301		88		3,929,374		22.8	%		—
Residential mortgage-backed securities		1,007,793		78,727		7,958		1,078,562		6.3	%		(520	)
Asset-backed securities		469,616		12,746		41,311		441,051		2.6	%		(3,521	)
Commercial mortgage-backed securities		1,308,668		107,284		67,905		1,348,047		7.8	%		(6,119	)
U.S. government and agencies		218,164		31,761		11		249,914		1.4	%		—
State and political subdivisions		204,108		34,066		8,398		229,776		1.3	%		—
Other foreign government, supranational, and foreign government-sponsored enterprises		1,494,182		73,916		2,539		1,565,559		9.1	%		—

Total fixed maturity securities	$	14,957,165	$	2,480,852	$	193,825	$	17,244,192		100.0	%	$	(10,160	)

Non-redeemable preferred stock		73,265		5,170		2,465		75,970		95.9	%
Other equity securities		2,235		1,001		9		3,227		4.1	%

Total equity securities	$	75,500	$	6,171	$	2,474	$	79,197		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)


	June 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	$	1,526,715	$	1,582,592		18.7	%	A	$	1,477,638	$	1,454,124		19.2	%	A
Brokerage		82,216		89,779		1.1	%	A		59,288		63,101		0.8	%	A
Finance Comp.		156,176		164,071		1.9	%	A		158,271		161,992		2.1	%	A
Insurance		475,248		514,206		6.1	%	A-		391,092		413,339		5.5	%	A-
REITs		335,479		362,035		4.3	%	BBB+		300,401		316,192		4.2	%	BBB+
Other Finance		116,344		126,134		1.5	%	BBB+		130,984		135,812		1.8	%	A-

Total Financial Institutions		2,692,178		2,838,817		33.6	%			2,517,674		2,544,560		33.6	%
Industrials
Basic		419,307		461,046		5.4	%	BBB		367,323		402,225		5.3	%	BBB+
Capital Goods		402,121		445,909		5.2	%	BBB+		360,309		396,150		5.2	%	BBB+
Communications		771,551		856,653		10.1	%	BBB+		674,182		745,064		9.8	%	BBB+
Consumer Cyclical		512,466		561,217		6.6	%	BBB+		407,873		438,034		5.8	%	BBB+
Consumer Noncyclical		730,100		832,355		9.8	%	A-		691,245		784,819		10.4	%	A-
Energy		417,304		466,154		5.5	%	BBB+		405,317		454,727		6.0	%	BBB+
Technology		278,112		304,137		3.6	%	BBB+		245,954		269,301		3.6	%	BBB+
Transportation		235,493		256,641		3.0	%	BBB+		219,605		234,822		3.1	%	BBB+
Other Industrial		69,934		76,507		0.9	%	BBB+		41,266		46,053		0.6	%	BBB

Total Industrials		3,836,388		4,260,619		50.1	%			3,413,074		3,771,195		49.8	%
Utilities
Electric		698,874		789,593		9.3	%	BBB+		673,725		756,033		10.0	%	BBB+
Natural Gas		458,277		516,616		6.1	%	BBB+		398,648		447,617		5.9	%	BBB
Other Utility		56,548		66,330		0.8	%	A-		43,377		51,921		0.7	%	A-

Total Utilities		1,213,699		1,372,539		16.2	%			1,115,750		1,255,571		16.6	%
Other Sectors		8,708		9,131		0.1	%	AA-		3,300		3,680		0.0	%	AA-

Total	$	7,750,973	$	8,481,106		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)


			June 30, 2012							March 31, 2012							December 31, 2011							September 30, 2011							June 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	$	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	%	$	3,261,242	$	3,360,370		22.2	%
1		AA		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	%		3,593,909		4,103,688		27.0	%
1		A		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	%		3,250,321		3,587,885		23.7	%
2		BBB		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	%		3,129,518		3,330,600		22.0	%
3		BB		421,128		428,875		2.5	%		428,543		430,002		2.6	%		446,610		436,001		2.7	%		444,042		423,559		2.7	%		464,363		466,393		3.1	%
4		B		269,970		248,850		1.4	%		240,603		220,924		1.3	%		244,645		210,222		1.3	%		229,658		196,617		1.3	%		248,242		229,591		1.5	%
5		CCC and lower		89,665		64,812		0.4	%		106,637		80,660		0.5	%		95,128		71,410		0.4	%		78,310		60,014		0.4	%		65,181		49,540		0.3	%
6		In or near default		31,445		20,838		0.1	%		35,050		23,605		0.1	%		24,948		17,273		0.1	%		28,343		23,007		0.1	%		28,571		25,740		0.2	%

		Total	$	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	%	$	14,041,347	$	15,153,807		100.0	%

Structured Fixed Maturity Securities


	June 30, 2012				March 31, 2012				December 31, 2011				September 30, 2011				June 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	$	511,985	$	571,821	$	523,206	$	576,045	$	561,156	$	619,010	$	596,072	$	660,833	$	637,806	$	674,599
Non-agency		495,808		506,741		551,867		562,183		606,109		608,224		642,791		646,941		682,952		691,185

Total residential mortgage-backed securities		1,007,793		1,078,562		1,075,073		1,138,228		1,167,265		1,227,234		1,238,863		1,307,774		1,320,758		1,365,784
Commercial mortgage-backed securities		1,308,668		1,348,047		1,302,734		1,342,421		1,233,958		1,242,219		1,330,302		1,326,994		1,333,832		1,359,105
Asset-backed securities		469,616		441,051		448,688		414,527		443,974		401,991		412,468		372,957		415,637		376,920

Total	$	2,786,077	$	2,867,660	$	2,826,495	$	2,895,176	$	2,845,197	$	2,871,444	$	2,981,633	$	3,007,725	$	3,070,227	$	3,101,809


				Page 18

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

CMBS Exposure

(Includes Funds Withheld Portfolios)


	June 30, 2012
	AAA				AA				A
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2005 & Prior	$	70,446	$	76,457	$	153,178	$	162,467	$	84,719	$	83,838
2006		240,958		264,432		61,474		67,147		63,307		66,402
2007		166,347		181,013		13,093		15,362		105,024		114,127
2008		8,757		8,750		43,657		56,075		23,613		27,928
2009		1,636		1,721		17,268		19,393		3,436		5,192
2010		27,960		29,298		46,949		52,726		13,248		14,154
2011		21,139		21,244		16,050		18,173		7,475		7,938
2012		5,132		5,179		17,298		17,466		1,499		1,501

Total	$	542,375	$	588,094	$	368,967	$	408,809	$	302,321	$	321,080


	BBB				Below Investment Grade				Total
Underwriting Year	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
2005 & Prior	$	56,847	$	55,405	$	28,855	$	21,646	$	394,045	$	399,813
2006		44,298		39,512		47,361		41,039		457,398		478,532
2007		103,035		112,915		114,312		81,467		501,811		504,884
2008		—		—		22,011		15,389		98,038		108,142
2009		3,767		4,759		—		—		26,107		31,065
2010		—		—		—		—		88,157		96,178
2011		—		—		—		—		44,664		47,355
2012		—		—		7,117		7,286		31,046		31,432

Total	$	207,947	$	212,591	$	219,656	$	166,827	$	1,641,266	$	1,697,401

NOTE: Totals include directly held investments with amortized cost of $1,308.7 million and fair value of $1,348.0 million as well as investments in funds withheld with amortized cost of $332.6 million and fair value of $349.4 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


	June 30, 2012					March 31, 2012					December 31, 2011					September 30, 2011					June 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%	$	75,539		38.5	%	$	88,526		41.3	%	$	126,250		43.1	%	$	139,671		46.1	%	$	120,770		51.7	%

20% or more for less than six months		5,924		3.0	%		9,803		4.6	%		46,386		15.9	%		49,034		16.2	%		7,742		3.3	%

20% or more for six months or greater		112,362		57.2	%		111,830		52.2	%		109,330		37.4	%		105,170		34.7	%		102,017		43.6	%

Total	$	193,825		98.7	%	$	210,159		98.1	%	$	281,966		96.4	%	$	293,875		97.0	%	$	230,529		98.6	%

Equity Securities


	June 30, 2012					March 31, 2012					December 31, 2011					September 30, 2011					June 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%	$	1,659		0.9	%	$	3,511		1.6	%	$	4,905		1.7	%	$	4,774		1.6	%	$	3,019		1.3	%

20% or more for less than six months		815		0.4	%		183		0.1	%		5,117		1.7	%		4,142		1.4	%		223		0.1	%

20% or more for six months or greater		—		0.0	%		499		0.2	%		498		0.2	%		49		0.0	%		48		0.0	%

Total	$	2,474		1.3	%	$	4,193		1.9	%	$	10,520		3.6	%	$	8,965		3.0	%	$	3,290		1.4	%


				Page 20

Reinsurance Group of America, Incorporated

Investments

(USD thousands)

Fixed Maturities and Equity Securities Below Amortized Cost

(Excludes Funds Withheld Portfolios)


	As of June 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	$	397,287	$	12,765	$	299,074	$	41,570	$	696,361	$	54,335
Canadian and Canadian provincial governments		10,573		88		—		—		10,573		88
Residential mortgage-backed securities		36,106		425		54,545		6,573		90,651		6,998
Asset-backed securities		59,722		938		101,011		24,734		160,733		25,672
Commercial mortgage-backed securities		129,450		2,590		73,130		12,757		202,580		15,347
U.S. government and agencies		4,004		11		—		—		4,004		11
State and political subdivisions		24,191		2,532		18,688		5,866		42,879		8,398
Other foreign government, supranational, and foreign government-sponsored enterprises		79,976		465		33,620		1,449		113,596		1,914

Investment grade securities	$	741,309	$	19,814	$	580,068	$	92,949	$	1,321,377	$	112,763

Non-investment grade securities:
Corporate securities		135,253		4,001		49,063		7,279		184,316		11,280
Residential mortgage-backed securities		2,025		178		9,858		782		11,883		960
Asset-backed securities		7		18		19,374		15,621		19,381		15,639
Commercial mortgage-backed securities		12,483		1,218		73,062		51,340		85,545		52,558
State and political subdivisions		—		—		—		—		—		—
Other foreign government, supranational, and foreign government-sponsored enterprises		11,779		625		—		—		11,779		625

Non-investment grade securities	$	161,547	$	6,040	$	151,357	$	75,022	$	312,904	$	81,062

Total fixed maturity securities	$	902,856	$	25,854	$	731,425	$	167,971	$	1,634,281	$	193,825

Non-redeemable preferred stock		1,743		245		17,280		2,220		19,023		2,465
Other equity securities		—		—		309		9		309		9

Total Equity securities	$	1,743	$	245	$	17,589	$	2,229	$	19,332	$	2,474


	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			Year-to-Date
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			vs. PY			June 30,			June 30,
	2012			2012			2011			2011			2011			Quarter			2012			2011			Change
Fixed Maturity and Equity Securities:
Other-than-temporary impairment losses on fixed maturities	$	(1,959	)	$	(7,607	)	$	(11,824	)	$	(11,911	)	$	(5,582	)	$	3,623		$	(9,566	)	$	(7,138	)	$	(2,428	)
Portion of loss recognized in accumulated other comprehensive income (before taxes)		162			(7,221	)		543			3,089			292			(130	)		(7,059	)		292			(7,351	)

Net other-than-temporary impairment losses on fixed maturities recognized in earnings		(1,797	)		(14,828	)		(11,281	)		(8,822	)		(5,290	)		3,493			(16,625	)		(6,846	)		(9,779	)
Impairment losses on equity securities		(2,186	)		(839	)		(436	)		—			(3,680	)		1,494			(3,025	)		(3,680	)		655
Gain on investment activity		26,593			22,312			39,622			34,840			28,207			(1,614	)		48,905			57,584			(8,679	)
Loss on investment activity		(8,918	)		(7,504	)		(6,247	)		(7,182	)		(6,653	)		(2,265	)		(16,422	)		(13,567	)		(2,855	)

Net gain/(loss) on fixed maturity and equity securities		13,692			(859	)		21,658			18,836			12,584			1,108			12,833			33,491			(20,658	)

Other impairment losses and change in mortgage loan provision		1,762			(5,843	)		(5,258	)		(2,370	)		(3,186	)		4,948			(4,081	)		(2,610	)		(1,471	)
Other non-derivative gain/(loss), net		5,628			6,641			7,318			5,698			4,645			983			12,269			9,341			2,928

Free-standing Derivatives:
Credit Default Swaps		(4,794	)		11,813			8,075			(10,018	)		988			(5,782	)		7,019			1,880			5,139
Interest Rate Swaps—non-hedged		73,342			(47,352	)		20,818			142,907			25,343			47,999			25,990			14,613			11,377
Interest Rate Swaps—hedged		29			(26	)		28			258			205			(176	)		3			331			(328	)
Futures		11,073			(17,408	)		(22,866	)		36,217			(2,873	)		13,946			(6,335	)		(14,296	)		7,961
CPI Swaps		(1,431	)		(802	)		726			(219	)		503			(1,934	)		(2,233	)		1,314			(3,547	)
Equity options		3,367			(37,983	)		(22,063	)		30,530			3,919			(552	)		(34,616	)		(649	)		(33,967	)
Currency Forwards		515			(1,608	)		561			1,374			595			(80	)		(1,093	)		(260	)		(833	)

Total free-standing derivatives		82,101			(93,366	)		(14,721	)		201,049			28,680			53,421			(11,265	)		2,933			(14,198	)

Embedded Derivatives:
Modified coinsurance and funds withheld treaties		(4,453	)		(9,428	)		(85,722	)		(102,574	)		10,525			(14,978	)		(13,881	)		101,060			(114,941	)
GMXB		(74,929	)		146,375			29,261			(260,239	)		(25,860	)		(49,069	)		71,446			6,793			64,653

Total embedded derivatives		(79,382	)		136,947			(56,461	)		(362,813	)		(15,335	)		(64,047	)		57,565			107,853			(50,288	)

Net gain/(loss) on total derivatives		2,719			43,581			(71,182	)		(161,764	)		13,345			(10,626	)		46,300			110,786			(64,486	)

Total investment related gains / (losses), net	$	23,801		$	43,520		$	(47,464	)	$	(139,600	)	$	27,388		$	(3,587	)	$	67,321		$	151,008		$	(83,687	)


				Page 22