SEC Filing | Reinsurance Group of America, Inc

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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): January 25, 2007 REINSURANCE GROUP OF AMERICA, INCORPORATED (Exact Name of Registrant as Specified in its Charter) MISSOURI 1-11848 43-1627032 (State or Other Jurisdiction of (Commission (IRS Employer Incorporation) File Number) 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 January 29, 2007, Reinsurance Group of America, Incorporated issued a press release announcing its earnings for the three-month period ended December 31, 2006 and providing certain additional information. The press release also notes that a conference call will be held on January 30, 2007 to discuss the financial and operating results for the three-month period ended December 31, 2006. A copy of the press release is furnished with this report as Exhibit 99.1 and shall not be deemed filed pursuant to Instruction B.2 of Form 8-K. ITEM 5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS. On January 29, 2007, the Company issued a press release announcing that on January 25, 2007, the Board elected Steven A. Kandarian, Executive Vice President and Chief Investment Officer of MetLife, Inc., as a director to fill the vacancy created by the resignation on January 18, 2007 of Leland C. Launer, Jr. as a director and chairman of the Board. The Board also elected Mr. Kandarian to serve as chairman of the Board. Mr. Kandarian will not serve as a member of any Board committees. MetLife, Inc. beneficially owns approximately 53% of the outstanding shares of common stock of the Company. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein. The Company is not aware of any transactions, proposed transactions, or series of either to which the Company or any of its subsidiaries was or is to be a participant since January 1, 2006, in which the amount involved exceeds $120,000 and in which Mr. Kandarian had, or will have, a direct or indirect material interest. The Company's proxy statement dated April 12, 2006 and filed with the Securities and Exchange Commission, describes certain transactions in which MetLife had a material interest under the caption "Certain Relationships and Related Transactions," which description is hereby incorporated by reference herein. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits Exhibit No. Exhibit ----------- ------- 99.1 Press Release of Reinsurance Group of America, Incorporated dated January 29, 2007 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. REINSURANCE GROUP OF AMERICA, INCORPORATED Date: January 29, 2007 By: /s/ Jack B. Lay -------------------------- Jack B. Lay Executive Vice President and Chief Financial Officer

EXHIBIT INDEX Exhibit No. Exhibit ----------- ------- 99.1 Press Release of Reinsurance Group of America, Incorporated dated January 29, 2007.

Exhibit 99.1 [RGA logo] Reinsurance Group of America, Incorporated(R) For further information, contact Jack B. Lay Executive Vice President and Chief Financial Officer (636) 736-7000 FOR IMMEDIATE RELEASE - --------------------- REINSURANCE GROUP OF AMERICA REPORTS FOURTH-QUARTER RESULTS ----------------------------------------------------------- ST. LOUIS, January 29, 2007 - Reinsurance Group of America, Incorporated (NYSE:RGA), a leading global provider of life reinsurance, reported net income for the fourth quarter of $81.5 million, or $1.28 per diluted share, compared to $68.2 million, or $1.07 per diluted share, in the prior-year quarter. RGA uses a non-GAAP financial measure called operating income as a basis for analyzing financial results. The definition of operating income and reconciliations to GAAP net income are provided in the following tables. Operating income increased to $81.0 million, or $1.27 per diluted share, from $73.1 million, or $1.15 per diluted share in the year-ago quarter, reflecting strong international results and solid contributions from the U.S. and Canadian segments. Fourth-quarter net premiums rose 13 percent, to $1,200.7 million, from $1,060.1 million a year ago. Net investment income totaled $240.8 million versus $169.4 million the year before. For the full-year 2006, consolidated net income totaled $288.2 million, or $4.57 per diluted share, compared to $224.2 million, or $3.52 per diluted share for 2005. Operating income increased 30 percent to $293.2 million, or $4.65 per diluted share, from $225.5 million, or $3.54 per diluted share, the year before. Consolidated premiums were up 12 percent, to $4,346.0 million from $3,866.8 million. A. Greig Woodring, president and chief executive officer, commented, "We are pleased with the results for the quarter and the year. Contributions from our international operations were substantial and our more established operations in the U.S. and Canada continue to be among the leaders in their markets. "The U.S. segment reported solid earnings with pre-tax net income totaling $86.3 million for the quarter versus $82.2 million the year before. Pre-tax operating income totaled $84.9 - more -

Add One million versus $88.7 million the year before, when results were quite strong. The quarter capped off a solid year for the U.S. segment with $330.8 million of pre-tax operating earnings, a 21 percent increase from 2005. Mortality experience for the quarter, and the year as a whole, was within our range of expectations. Net premiums were up 7 percent to $728.2 million from $678.3 million in the prior-year quarter. For the year, premiums increased 9 percent, at the midpoint of our expected range. "For the quarter, our Canada operations reported pre-tax net income of $12.8 million compared to $12.1 million a year ago. Pre-tax operating income totaled $11.0 million compared to $11.6 million a year ago. Claims flow improved from earlier in the year, but was still slightly higher-than-expected. Net premiums increased 30 percent to $134.6 million from $103.4 million in the prior year. A significant portion of that growth was driven by one group creditor treaty. Net premiums and pre-tax operating income for the fourth quarter of 2006 benefited from a favorable currency exchange rate relative to the prior year by approximately $3.5 million and $0.4 million, respectively. "Other International operations, which include our Asia Pacific and Europe and South Africa segments, were strong across the board. Asia Pacific reported pre-tax net income of $23.9 million compared with $15.6 million in the year-ago quarter. Pre-tax operating income totaled $24.1 million compared with $15.9 million a year ago. Segment-wide claims experience was good during the current quarter, which was also the case in the prior-year quarter. Stronger premium flow also contributed to the bottom line as net premiums increased 37 percent to $186.6 million from $136.4 million. Foreign currency fluctuations favorably affected net premiums and pre-tax operating income by approximately $7.0 million and $1.2 million, respectively. Results for the full year were very strong with pre-tax operating income increasing 87 percent to $59.0 million. "Europe and South Africa results were also strong for the quarter, due primarily to favorable claims experience, with pre-tax net income rising to $17.4 million from $12.1 million a year ago. Pre-tax operating income increased to $17.4 million versus $12.3 million last year. Net premiums increased 7 percent for the quarter to $150.9 million. That rate of growth has slowed compared to previous years, reflecting the considerable level of competition, most notably in the UK, our largest market in this segment. Foreign currency exchange fluctuations favorably affected reported net premiums and pre-tax operating income by approximately $9.5 million and $1.6 million, respectively. For the year, Europe and South Africa results were very strong with pre-tax operating income increasing 63 percent to $58.6 million." - more -

Add Two Woodring continued, "Fourth-quarter results mark the completion of a very successful year. Of particular note is the contribution from our international operations, which in total generated $117.5 million in pre-tax operating income, or approximately 26 percent of our consolidated amount. Looking ahead for 2007, we expect continued strong growth in select international markets, particularly in Asia, while our North American operations will continue to grow at a more moderate pace. On a consolidated basis, we expect premiums to increase in a range of 10 percent to 13 percent. The North American operations will likely grow in the high single digits, while the international operations are expected to grow in a range of 12 to 15 percent. In terms of earnings per share, we expect 2007 to be within a range of $4.80 to $5.40 per diluted share." Woodring concluded, "Further, we head into 2007 with strong operations across the globe. We have made significant progress over the past several years in running off the ancillary businesses that were problematic and non-core to our broader life reinsurance businesses, and are in better shape than ever to focus our attention on continuing to build our core businesses." The board of directors elected Steven A. Kandarian, Executive Vice President and Chief Investment Officer of MetLife, Inc., as a director and chairman of the board to fill the vacancies created by the resignation on January 18, 2007, of Leland C. Launer, Jr. The company also announced that its board of directors declared a regular quarterly dividend of $0.09, payable February 26 to shareholders of record as of February 5. A conference call to discuss the company's fourth-quarter results will begin at 9 a.m. Eastern Time on Tuesday, January 30. Interested parties may access the call by dialing 800-210-9006 (domestic) or 719-457-2621 (international). The access code is 6804032. A live audio webcast of the conference call will be available on the company's investor relations web page at www.rgare.com. A replay of the conference call will be available at the same address for three months following the conference call. A replay of the conference call will also be available via telephone through February 6 at 888-203-1112 (domestic) or 719-457-0820, access code 6804032. Reinsurance Group of America, Incorporated, through its various operating subsidiaries, is among the largest global providers of life reinsurance. Reinsurance Group of America, Incorporated has subsidiary companies or offices in Australia, Barbados, Bermuda, Canada, China, Hong Kong, India, Ireland, Japan, Mexico, Poland, South Africa, South Korea, Spain, - more -

Add Three Taiwan, the United Kingdom and the United States. Worldwide, the company has approximately $2.0 trillion of life reinsurance in force, and assets of $19.0 billion. MetLife, Inc. is the beneficial owner of approximately 53 percent of RGA's outstanding shares. 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 changes in mortality, morbidity or claims experience, (2) changes in our financial strength and credit ratings or those of MetLife, Inc. ("MetLife"), the beneficial owner of a majority of our common shares, or its subsidiaries, and the effect of such changes on our future results of operations and financial condition, (3) inadequate risk analysis and underwriting, (4) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in our current and planned markets, (5) the availability and cost of collateral necessary for regulatory reserves and capital, (6) market or economic conditions that adversely affect our ability to make timely sales of investment securities, (7) risks inherent in our risk management and investment strategy, including changes in investment portfolio yields due to interest rate or credit quality changes, (8) fluctuations in U.S. or foreign currency exchange rates, interest rates, or securities and real estate markets, (9) adverse litigation or arbitration results, (10) the adequacy of reserves, resources and accurate information relating to settlements, awards and terminated and discontinued lines of business, (11) the stability of and actions by governments and economies in the markets in which we operate, (12) competitive factors and competitors' responses to our initiatives, (13) the success of our clients, (14) successful execution - more -

Add Four of our entry into new markets, (15) successful development and introduction of new products and distribution opportunities, (16) our ability to successfully integrate and operate reinsurance business that we acquire, (17) regulatory action that may be taken by state Departments of Insurance with respect to us, MetLife, or its subsidiaries, (18) our dependence on third parties, including those insurance companies and reinsurers to which we cede some reinsurance, third-party investment managers and others, (19) the threat of natural disasters, catastrophes, terrorist attacks, epidemics or pandemics anywhere in the world where we or our clients do business, (20) changes in laws, regulations, and accounting standards applicable to us, our subsidiaries, or our business, (21) the effect of our status as a holding company and regulatory restrictions on our ability to pay principal of and interest on our debt obligations, and (22) other risks and uncertainties described in this document and in our other filings with the Securities and Exchange Commission. 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. - tables attached -

Add Five Operating Income 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 embedded derivatives and related deferred acquisition costs. These items tend to be highly variable, 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. REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Net Income From Continuing Operations to Operating Income (Dollars in thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, -------------------------------------- 2006 2005 2006 2005 ---- ---- ---- ---- GAAP net income-continuing operations $ 83,318 $ 69,665 $293,261 $235,608 Investment related (gains)losses (523) 3,942 2,744 (12,798) Change in value of embedded derivatives (5,716) (822) (4,253) (4,839) DAC offset for embedded derivatives and investment related losses, net 3,916 341 1,453 7,503 -------------------------------------- Operating income $ 80,995 $ 73,126 $293,205 $225,474 - more -

Add Six REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Net Income From Continuing Operations to Pre-tax Operating Income (Dollars in thousands) (Unaudited) Three Months Ended December 31, 2006 Investment Change in Pre-tax related value of Pre-tax net (gains) embedded operating income losses, derivatives, income (loss) net net (loss) ------- ---------- ------------ --------- U.S. Operations: Traditional $ 74,635 $ 542 $ -- $ 75,177 Asset Intensive 7,903 815(1) (2,720)(2) 5,998 Financial Reinsurance 3,737 -- -- 3,737 ----------------------------------------------- Total U.S. 86,275 1,357 (2,720) 84,912 Canada Operations 12,799 (1,830) -- 10,969 Asia Pacific Operations 23,874 249 -- 24,123 Europe & South Africa 17,362 84 -- 17,446 ----------------------------------------------- Other Intl Operations 41,236 333 -- 41,569 Corporate & Other (12,125) (652) -- (12,777) Consolidated ----------------------------------------------- $128,185 $ (792) $ (2,720) $124,673 =============================================== (1) Asset Intensive is net of $(49)DAC offset. (2) Asset Intensive is net of DAC offsets of $6,074 included in change in deferred acquisition cost associated with change in value of embedded derivative. (Unaudited) Three Months Ended December 31, 2005 Investment Change in Pre-tax related value of Pre-tax net (gains) embedded operating income losses, derivatives, income (loss) net net (loss) ------- ---------- ------------ --------- U.S. Operations: Traditional $ 74,005 $ 4,078 $ -- $ 78,083 Asset Intensive 3,489 2,613(1) (254)(2) 5,848 Financial Reinsurance 4,709 11 -- 4,720 ----------------------------------------------- Total U.S. 82,203 6,702 (254) 88,651 Canada Operations 12,050 (464) -- 11,586 Asia Pacific Operations 15,566 344 -- 15,910 Europe & South Africa 12,124 136 -- 12,260 ----------------------------------------------- Other Intl Operations 27,690 480 -- 28,170 Corporate & Other (12,303) (1,152) -- (13,455) Consolidated ----------------------------------------------- $109,640 $ 5,566 $ (254) $114,952 =============================================== (1) Asset Intensive is net of $(485) DAC offset (2) Asset Intensive is net of DAC offsets of $1,010 included in change in deferred acquisition cost associated with change in value of embedded derivative. - more -

Add Seven REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Net Income From Continuing Operations to Pre-tax Operating Income (Dollars in thousands) (Unaudited) Twelve Months Ended December 31, 2006 Pre-tax Investment Change in Pre-tax net related value of operating income (gains) embedded income (loss) losses, net derivative (loss) ------ ----------- ---------- ------ U.S. Operations: Traditional $287,122 $ 4,077 $ -- $291,199 Asset Intensive 20,187 7,206(1) (2,808)(2) 24,585 Financial Reinsurance 15,039 (4) -- 15,035 ---------------------------------------------- Total U.S. 322,348 11,279 (2,808) 330,819 Canada Operations 45,766 (5,137) -- 40,629 Asia Pacific Operations 58,591 372 -- 58,963 Europe & South Africa 58,241 322 -- 58,563 ---------------------------------------------- Other Intl Operations 116,832 694 -- 117,526 Corporate & Other (33,558) (4,014) -- (37,572) Consolidated ---------------------------------------------- $451,388 $ 2,822 $ (2,808) $451,402 ============================================== (1) Asset Intensive is net of $(1,500)DAC offset. (2) Asset Intensive is net of DAC offsets of $3,735 included in change in deferred acquisition cost associated with change in value of embedded derivative. (Unaudited) Twelve Months Ended December 31, 2005 Pre-tax Investment Change in Pre-tax net related value of operating income (gains) embedded income (loss) losses, net derivative (loss) ------ ----------- ---------- ------ U.S. Operations: Traditional $232,371 $ 8,603 $ -- $240,974 Asset Intensive 16,317 941(1) (472)(2) 16,786 Financial Reinsurance 15,064 21 -- 15,085 ---------------------------------------------- Total U.S. 263,752 9,565 (472) 272,845 Canada Operations 50,199 (3,365) -- 46,834 Asia Pacific Operations 31,268 269 -- 31,537 Europe & South Africa 35,520 318 -- 35,838 ---------------------------------------------- Other Intl Operations 66,788 587 -- 67,375 Corporate & Other (24,393) (17,315)(3) -- (41,708) Consolidated ---------------------------------------------- $356,346 $(10,528) $ (472) $345,346 ============================================== (1) Asset Intensive is net of $(118) DAC offset. (2) Asset Intensive is net of DAC offsets of $6,972 included in change in deferred acquisition cost associated with change in value of embedded derivative. (3) Corporate & Other is net of DAC offsets of $3,048 included in policy acquisition costs and other insurance expenses. - more -

Add Eight REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollars in thousands) Three Months Ended Twelve Months Ended (Unaudited) December 31, December 31, - ----------------------------------------------------------------------- 2006 2005 2006 2005 ---- ---- ---- ---- Revenues: Net premiums $1,200,733 $1,060,069 $4,345,969 $3,866,775 Investment income, net of related expenses 240,752 169,372 779,655 639,165 Investment related gains(losses), net 854 (5,998) (3,953) 13,590 Change in value of embedded derivatives 8,794 1,264 6,543 7,444 Other revenues 18,442 14,093 65,477 57,791 ---------------------- ---------------------- Total revenues 1,469,575 1,238,800 5,193,691 4,584,765 Benefits and expenses: Claims and other policy benefits 955,436 847,583 3,488,388 3,187,902 Interest credited 94,928 54,789 244,771 208,376 Policy acquisition costs and other insurance expenses 199,333 168,830 712,568 629,359 Change in deferred acquisition cost associated with change in value of embedded derivatives 6,074 1,010 3,735 6,972 Other operating expenses 57,455 45,352 204,380 154,382 Collateral finance facilities expense 13,015 -- 26,428 -- Interest expense 15,149 11,596 62,033 41,428 ---------------------- ---------------------- Total benefits and expenses 1,341,390 1,129,160 4,742,303 4,228,419 ---------------------- ---------------------- Income from continuing operations before income taxes 128,185 109,640 451,388 356,346 Provision for income taxes 44,867 39,975 158,127 120,738 ---------------------- ---------------------- Income from continuing operations 83,318 69,665 293,261 235,608 Discontinued operations: Loss from discontinued accident and health operations, net of income taxes (1,844) (1,488) (5,051) (11,428) ---------------------- ---------------------- Net income $ 81,474 $68,177 $ 288,210 $ 224,180 ====================== ====================== - more -

Add Nine REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (In thousands, except per share data) Three Months Ended Twelve Months Ended (Unaudited) December 31, December 31, - ----------------------------------------------------------------------------- 2006 2005 2006 2005 ---- ---- ---- ---- Earnings per share from continuing operations: Basic earnings per share $ 1.36 $ 1.12 $ 4.79 $ 3.77 Diluted earnings per share $ 1.31 $ 1.09 $ 4.65 $ 3.70 Diluted earnings per share before investment related gains/(losses), change in value of embedded derivatives, and related deferred acquisition costs $ 1.27 $ 1.15 $ 4.65 $ 3.54 Earnings per share from net income: Basic earnings per share $ 1.33 $ 1.09 $ 4.71 $ 3.58 Diluted earnings per share $ 1.28 $ 1.07 $ 4.57 $ 3.52 Weighted average number of common and common equivalent shares outstanding 63,815 63,653 63,062 63,724 - more -

Add Ten REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Business Summary At or For the Twelve Months Ended (Unaudited) December 31, - --------------------------------------------------------------------- 2006 2005 ---- ---- Gross life reinsurance in force (in billions) North American business $1,315.2 $1,211.1 International business $ 665.1 $ 525.5 Gross life reinsurance written (in billions) North American business $ 211.9 $ 218.9 International business $ 158.5 $ 135.2 Consolidated cash and invested assets (in millions) $14,773.3 $12,460.1 Invested asset book yield - trailing three months excluding funds withheld 5.92% 5.92% Investment portfolio mix Cash and short-term investments 2.04% 2.05% Fixed maturity securities 56.67% 55.17% Mortgage loans 4.98% 5.20% Policy loans 6.87% 7.92% Funds withheld at interest 27.95% 27.77% Other invested assets 1.49% 1.89% Collateral finance facilities (in millions) $ 850.4 $ -- Short-term debt (in millions) $ 29.4 $ 125.6 Long-term debt (in millions) $ 676.2 $ 674.4 Company-obligated mandatorily redeemable preferred securities of subsidiary (in millions) $ 158.7 $ 158.6 Book value per share outstanding $ 45.85 $ 41.38 Book value per share outstanding, before impact of FAS 115* $ 40.38 $ 35.46 Total stockholders' equity (in millions) 2,815.4 2,527.5 Total stockholders' equity, before impact of FAS 115* (in millions) 2,479.8 2,165.7 Treasury shares 1,717,722 2,052,316 Common stock outstanding 61,410,551 61,075,957 * Book value per share outstanding and total stockholders' equity, before impact of FAS 115, are non-GAAP financial measures that management believes are important in evaluating the balance sheet ignoring the effect of mark-to-market adjustments that primarily relate to changes in interest rates and credit spreads on investment securities since they were acquired. - more -

Add Eleven REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. OPERATIONS (Unaudited) (Dollars in thousands) Three Months Ended December 31, 2006 Asset- Financial Total Traditional Intensive Reinsurance U.S. Revenues: ----------- --------- ----------- ------ Net premiums $ 726,655 $ 1,552 $ -- $ 728,207 Investment income, net of related expenses 82,622 99,317 (51) 181,888 Investment related losses, net (542) (864) -- (1,406) Change in value of embedded derivatives -- 8,794 -- 8,794 Other revenues 42 5,571 7,478 13,091 -------------------------------------------- Total revenues 808,777 114,370 7,427 930,574 Benefits and expenses: Claims and other policy benefits 606,097 (346) 1 605,752 Interest credited 14,439 79,801 -- 94,240 Policy acquisition costs and other insurance expenses 102,917 18,883 2,232 124,032 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- 6,074 -- 6,074 Other operating expenses 10,689 2,055 1,457 14,201 -------------------------------------------- Total benefits and expenses 734,142 106,467 3,690 844,299 Income before income taxes $ 74,635 $ 7,903 $ 3,737 $ 86,275 ========== ========== ======== ========== (Unaudited) Three Months Ended December 31, 2005 Asset- Financial Total Traditional Intensive Reinsurance U.S. Revenues: ----------- --------- ----------- ------ Net premiums $ 677,159 $ 1,182 $ -- $678,341 Investment income, net of related expenses 70,023 57,470 148 127,641 Investment related losses, net (4,078) (3,098) (11) (7,187) Change in value of embedded derivatives -- 1,264 -- 1,264 Other revenues 422 2,661 8,094 11,177 -------------------------------------------- Total revenues 743,526 59,479 8,231 811,236 Benefits and expenses: Claims and other policy benefits 543,763 761 1 544,525 Interest credited 12,095 42,157 -- 54,252 Policy acquisition costs and other insurance expenses 102,830 10,753 2,179 115,762 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- 1,010 -- 1,010 Other operating expenses 10,833 1,309 1,342 13,484 -------------------------------------------- Total benefits and expenses 669,521 55,990 3,522 729,033 Income before income taxes $ 74,005 $ 3,489 $ 4,709 $ 82,203 ========== ======== ========= ======== - more -

Add Twelve REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. OPERATIONS (Dollars in thousands) (Unaudited) Twelve Months Ended December 31, 2006 Asset- Financial Total Traditional Intensive Reinsurance U.S. Revenues: ----------- --------- ----------- ------ Net premiums $ 2,647,322 $ 6,190 $ -- $2,653,512 Investment income, net of related expenses 305,221 267,111 (213) 572,119 Investment related gains(losses), net (4,077) (8,706) 4 (12,779) Change in value of embedded derivatives -- 6,543 -- 6,543 Other revenues 269 20,031 29,868 50,168 ----------------------------------------------- Total revenues 2,948,735 291,169 29,659 3,269,563 Benefits and expenses: Claims and other policy benefits 2,174,142 581 5 2,174,728 Interest credited 50,059 192,092 -- 242,151 Policy acquisition costs and other insurance expenses 395,531 67,461 9,284 472,276 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- 3,735 -- 3,735 Other operating expenses 41,881 7,113 5,331 54,325 ----------------------------------------------- Total benefits and expenses 2,661,613 270,982 14,620 2,947,215 Income before income taxes $ 287,122 $ 20,187 $ 15,039 $ 322,348 =========== ======== ======== ========== (Unaudited) Twelve Months Ended December 31, 2005 Asset- Financial Total Traditional Intensive Reinsurance U.S. Revenues: ----------- --------- ----------- ------- Net premiums $ 2,428,890 $ 4,670 $ -- $2,433,560 Investment income, net of related expenses 268,531 214,941 467 483,939 Investment related losses, net (8,603) (1,059) (21) (9,683) Change in value of embedded derivatives -- 7,444 -- 7,444 Other revenues 1,318 8,621 28,393 38,332 ---------------------------------------------- Total revenues 2,690,136 234,617 28,839 2,953,592 Benefits and expenses: Claims and other policy benefits 2,008,537 4,870 6 2,013,413 Interest credited 53,958 151,966 -- 205,924 Policy acquisition costs and other insurance expenses 354,981 49,436 8,358 412,775 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- 6,972 -- 6,972 Other operating expenses 40,289 5,056 5,411 50,756 ---------------------------------------------- Total benefits and expenses 2,457,765 218,300 13,775 2,689,840 Income before income taxes $ 232,371 $16,317 $ 15,064 $ 263,752 ========== ======= ======== ========== - more -

Add Thirteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES CANADIAN OPERATIONS (Dollars in thousands) Three Months Ended (Unaudited) December 31, - --------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $134,600 $103,447 Investment income, net of related expenses 28,092 25,372 Investment related gains, net 1,941 517 Other revenues (155) (13) ------- -------- Total revenues 164,478 129,323 Benefits and expenses: Claims and other policy benefits 105,839 91,252 Interest credited 208 230 Policy acquisition costs and other insurance expenses 41,201 21,617 Other operating expenses 4,431 4,174 -------- -------- Total benefits and expenses 151,679 117,273 Income before income taxes $ 12,799 $ 12,050 ======== ======== Twelve Months Ended (Unaudited) December 31, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $429,438 $343,131 Investment income, net of related expenses 106,973 93,009 Investment related gains, net 5,506 3,497 Other revenues 160 (279) -------- -------- Total revenues 542,077 439,358 Benefits and expenses: Claims and other policy benefits 386,221 307,959 Interest credited 831 1,105 Policy acquisition costs and other insurance expenses 92,936 64,921 Other operating expenses 16,323 15,174 --------- -------- Total benefits and expenses 496,311 389,159 Income before income taxes $ 45,766 $ 50,199 ======== ======== - more -

Add Fourteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Europe & South Africa (Dollars in thousands) Three Months Ended (Unaudited) December 31, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $150,910 $141,217 Investment income, net of related expenses 4,836 3,280 Investment related losses, net (84) (136) Other revenues 739 41 -------- --------- Total revenues 156,401 144,402 Benefits and expenses: Claims and other policy benefits 106,683 99,633 Interest credited 285 220 Policy acquisition costs and other insurance expenses 20,910 24,676 Other operating expenses 11,161 7,749 -------- -------- Total benefits and expenses 139,039 132,278 Income before income taxes $ 17,362 $ 12,124 ======== ======== Twelve Months Ended (Unaudited) December 31, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $587,903 $552,692 Investment income, net of related expenses 16,311 11,494 Investment related losses, net (322) (318) Other revenues 858 299 -------- -------- Total revenues 604,750 564,167 Benefits and expenses: Claims and other policy benefits 414,855 405,121 Interest credited 764 882 Policy acquisition costs and other insurance expenses 90,098 94,853 Other operating expenses 40,792 27,791 -------- -------- Total benefits and expenses 546,509 528,647 Income before income taxes $ 58,241 $ 35,520 ======== ======== - more -

Add Fifteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Asia Pacific (Dollars in thousands) Three Months Ended (Unaudited) December 31, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $186,564 $136,365 Investment income, net of related expenses 7,751 6,355 Investment related losses, net (249) (344) Other revenues 1,731 1,946 -------- -------- Total revenues 195,797 144,322 Benefits and expenses: Claims and other policy benefits 136,341 104,599 Policy acquisition costs and other insurance expenses 23,384 15,785 Other operating expenses 12,198 8,372 -------- -------- Total benefits and expenses 171,923 128,756 Income before income taxes $ 23,874 $ 15,566 ======== ======== Twelve Months Ended (Unaudited) December 31, - --------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $673,179 $534,927 Investment income, net of related expenses 28,105 21,773 Investment related losses, net (372) (269) Other revenues 6,465 4,593 -------- -------- Total revenues 707,377 561,024 Benefits and expenses: Claims and other policy benefits 512,740 419,935 Policy acquisition costs and other insurance expenses 93,614 82,384 Other operating expenses 42,432 27,437 -------- -------- Total benefits and expenses 648,786 529,756 Income before income taxes $ 58,591 $ 31,268 ======== ======== - more -

Add Sixteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES CORPORATE AND OTHER (Dollars in thousands) Three Months Ended (Unaudited) December 31, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $ 452 $ 699 Investment income, net of related expenses 18,185 6,724 Investment related gains, net 652 1,152 Other revenues 3,036 942 -------- -------- Total revenues 22,325 9,517 Benefits and expenses: Claims and other policy benefits 821 7,574 Interest credited 195 87 Policy acquisition costs and other insurance expenses (10,194) (9,010) Other operating expenses 15,464 11,573 Collateral finance facilities expense 13,015 -- Interest expense 15,149 11,596 -------- -------- Total benefits and expenses 34,450 21,820 Loss before income taxes $(12,125) $(12,303) ======== ======== Twelve Months Ended (Unaudited) December 31, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $ 1,937 $ 2,465 Investment income, net of related expenses 56,147 28,950 Investment related gains, net 4,014 20,363 Other revenues 7,826 14,846 -------- -------- Total revenues 69,924 66,624 Benefits and expenses: Claims and other policy benefits (156) 41,474 Interest credited 1,025 465 Policy acquisition costs and other insurance expenses (36,356) (25,574) Other operating expenses 50,508 33,224 Collateral finance facilities expense 26,428 -- Interest expense 62,033 41,428 -------- -------- Total benefits and expenses 103,482 91,017 Loss before income taxes $(33,558) $(24,393) ======== ======== # # #