Reinsurance Group of America Reports Fourth-Quarter Results

  Reinsurance Group of America Reports Fourth-Quarter Results

  *Fourth-quarter earnings per diluted share: net income $3.00, operating
    income* $2.44
  *Results boosted by strong U.S. individual mortality and Canada segment
    results
  *Net premiums up seven percent to $2.2 billion
  *Full-year operating return on equity* 12 percent
  *Board of directors approves $200 million stock repurchase program

Business Wire

ST. LOUIS -- January 31, 2013

Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global
provider of life reinsurance, reported fourth-quarter net income of
$223.0million, or $3.00 per diluted share, compared to $138.6 million, or
$1.88 per diluted share in the prior-year quarter. Operating income* totaled
$181.8 million, or $2.44 per diluted share, up from last year’s
$120.8million, or $1.64 per diluted share, an increase of 49 percent on a
per-share basis. The current-period results reflect better-than-expected
claims experience in the U.S. mortality business, and strong performance in
both the U.S. Asset-Intensive line and Canada segment. Certain amounts 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,           2012        2011           2012        2011
except per share data)
Net premiums               $2,179,707   $2,034,716     $7,906,596   $7,335,687
Net income                 222,989      138,579        631,893      546,045
Net income per diluted     3.00         1.88           8.52         7.37
share
Operating income*          181,830      120,772        516,382      485,596
Operating income per       2.44         1.64           6.96         6.55
diluted share*
Book value per share       93.47        79.31
Book value per share
(excl. Accumulated         64.95        57.25
Other Comprehensive
Income “AOCI”)*
Total assets               40,360,438   31,633,973
* See ‘Use of Non-GAAP Financial Measures’ below
                                                                    

Net income for the year increased to $631.9 million, or $8.52 per diluted
share, from $546.0million, or $7.37 per diluted share, in 2011. Operating
income* totaled $516.4 million, or $6.96 per diluted share, compared with
$485.6 million, or $6.55 per diluted share, the year before. Net foreign
currency fluctuations lowered 2012 operating income per diluted share by
$0.06. Consolidated net premiums for 2012 rose $570.9 million, or
approximately eight percent including the effects of currency fluctuations,
and nine percent without them.

For the quarter, consolidated net premiums increased seven percent to $2.2
billion from $2.0 billion in the prior-year quarter, including a favorable
$14.1 million impact from foreign currency fluctuations. Investment income
increased to $370.2 million from $304.5 million in the year-earlier quarter,
primarily attributable to investment income associated with a large fixed
deferred annuity coinsurance agreement that became effective April 1, 2012.

Excluding the effect of spread-based investment income and changes in value of
associated derivatives, investment income increased approximately six percent,
or $13.3 million, compared with the fourth quarter of 2011. The average book
value of non-spread-based invested assets was up approximately $1.7 billion to
$17.5 billion, and the average portfolio yield decreased to 4.83percent from
5.18 percent in the fourth quarter of 2011. For the year, the average yield
dropped 30 basis points as a result of the lower interest rate environment.
Current reinvestment rates are approximately 3.7 percent. Net foreign currency
fluctuations increased the current quarter’s operating income by approximately
$1.2 million after taxes, or $0.02 per diluted share.

The company’s effective tax rate on the full years’ operating income was 30.8
percent and 28.1 percent in 2012 and 2011, respectively. Both years’ tax rates
were below management’s expected rate of approximately 33 - 34 percent,
primarily due to the recognition of income tax benefits associated with
unfavorable claims experience on certain treaties and changes in foreign
jurisdiction tax rates.

A. Greig Woodring, president and chief executive officer, commented, “We are
pleased to report a very strong fourth quarter and a solid 2012 overall.
Annualized operating return on equity was 16percent for the quarter, 12
percent for the full year and has averaged 13 percent over the last five
years. The fourth quarter benefited primarily from favorable individual
mortality and annuity results in the U.S. and strong results in Canada, which
more than offset weak results in Australia and the ongoing effects of the low
interest rate environment. We reported a modest loss in Australia this quarter
and will continue to manage this business in a challenging environment.

“For the year, consolidated claims experience was generally in line with
management expectations, aside from the Australia operations where negative
claims experience and reserve increases during the year negatively affected
earnings. Consolidated premiums were up eight percent this year and operating
income was up six percent.

“Book value per share increased 18 percent during 2012 to $93.47. Excluding
AOCI, it rose 13percent to $64.95. Net unrealized capital gains in the
investment portfolio increased 32 percent for the year, and totaled $1.9
billion at December 31, 2012. We have a strong balance sheet with deployable
excess capital. We continue to consider appropriate uses of that capital. We
are well-positioned and remain committed to meeting our clients’ needs in all
major life and health reinsurance markets across the globe.”

SEGMENT RESULTS

U.S.

The U.S. Traditional sub-segment reported pre-tax net income of $151.4million
for the quarter, up from $112.6million last year. Fourth-quarter pre-tax
operating income totaled $139.6million, a 69 percent increase from
$82.5million the year before. This increase was driven by the segment’s
individual mortality business, where claims experience was approximately $36.0
million better than expected on a pre-tax basis. The group reinsurance
business experienced slightly higher-than-expected claims this quarter, which
were offset by favorable results in the individual health business. Net
premiums rose fivepercent, to $1,159.1million from $1,099.4million a year
ago. For the full year, net premiums increased more than eight percent and
totaled $4,308.8 million.

The U.S. Asset-Intensive business reported pre-tax income of $86.4 million
this quarter, up from $13.3million last year. The fourth quarter of 2011
reflected unfavorable changes in the fair values of various free-standing and
embedded derivatives. Pre-tax operating income, which excludes the impact of
those derivatives, increased to $40.8 million from $27.3 million last year.
The current-period result was better than expected and was driven by strong
performance in the equity-indexed and fixed annuity blocks, including the
large block of fixed deferred annuities reinsured effective April 1, 2012.
Full-year pre-tax operating income totaled $109.1 million and $70.1 million in
2012 and 2011, respectively.

The U.S. Financial Reinsurance business added pre-tax operating income of $8.5
million this quarter, up from $6.9 million last year. For the year, pre-tax
income rose 24 percent to $32.9 million. This fee-based business has grown
consistently over the past several years.

Canada

Canadian operations reported pre-tax net income of $59.4 million compared with
$47.2million in the fourth quarter of 2011. Pre-tax operating income was
$54.0million this quarter, compared with $40.7million in the prior-year
period, an increase of 33 percent. Both current- and prior-period results
benefited from better-than-expected claims experience, while the current
period also benefited from a favorable pre-tax reserve adjustment of
approximately $16.0 million related to this segment’s creditor reinsurance
business. That reserve adjustment was the result of incorporating previously
unavailable individual policy level detail into the reserve calculation.
Fourth-quarter net premiums were up 11percent to $248.4 million from
$224.8million last year, including a favorable foreign currency effect of
$7.6million. For the full year, reported net premiums increased 10 percent
and totaled $915.8 million. On a Canadian dollar basis, net premiums increased
seven percent for the quarter and 11percent for the full year versus 2011.

Asia Pacific

Asia Pacific reported fourth-quarter pre-tax net income of $5.9 million
compared with a pre-tax loss of $9.7million last year. Pre-tax operating
income totaled $8.5 million compared with pre-tax operating losses of $15.0
million in last year’s fourth quarter. Both periods reflect adverse results in
Australia. Australia reported an operating pre-tax loss of approximately $5.7
million this quarter. Outside of Australia, all markets in this segment
performed well this quarter. Quarterly net premiums rose four percent to
$362.6 million from $348.4million in the prior year. On a local currency
basis, net premiums rose two percent for the quarter. For the year, net
premiums were up approximately four percent in reported and local currencies.

Europe & South Africa

Europe & South Africa reported pre-tax net income of $15.6 million compared
with $36.0million in the year-ago quarter. Pre-tax operating income was
$14.3million versus a very strong $33.1million in the fourth quarter of
2011. While substantially all markets in this segment performed well this
quarter, higher-than-expected morbidity claims in the U.K. negatively impacted
overall results. Foreign currency fluctuations adversely affected pre-tax
operating income by approximately $0.3million. Net premiums totaled $402.5
million, up 13percent from $356.3 million the year before, with very little
influence from foreign currency fluctuations. For the year, net premiums were
up approximately 10 percent on a U.S. dollar basis and 14 percent on an
original currency basis.

Corporate and Other

The Corporate and Other segment reported a pre-tax net loss of $6.2 million
this quarter, and a pre-tax net loss of $13.0 million in the year-ago period.
Pre-tax operating losses were $7.1 million in the current period and $7.4
million last year. For the year, this segment reported pre-tax operating
losses of $25.5 million compared to $0.2 million in 2011, primarily due to
lower investment income.

Company Guidance

The company has determined it is more meaningful to issue guidance regarding
expected intermediate-term earnings growth rates and target operating returns
rather than simply a range of expected annual earnings per share for the
upcoming year. That determination is driven by the long-term nature of the
business and any effects of potential block acquisition transactions, the
timing of which can be difficult to project. The company accepts risks over
very long periods of time, up to 30 years or longer in some cases. While more
predictable over longer-term horizons, the business is subject to inherent
short-term volatility. Although no specific 2013 operating earnings per share
guidance is being provided, the company expects that near-term growth in
premiums and operating income will be consistent with that exhibited over the
last several years.

Over the intermediate term, the company targets operating earnings growth in
the five to eight percent range, and operating return on equity of 11 to 12
percent. These targets presume no significant changes in the investment
environment and the deployment of $200 million to $400 million of excess
capital, on average, annually.

Stock Repurchase Authorization

The board of directors authorized a share repurchase program for up to $200
million of the company’s outstanding common stock. The authorization is
effective immediately and does not have an expiration date. Repurchases would
be made in accordance with applicable securities laws and would be made
through market transactions, block trades, privately negotiated transactions
or other means or a combination of these methods, with the timing and number
of shares repurchased dependent on a variety of factors, including share
price, corporate and regulatory requirements and market and business
conditions. Repurchases may be commenced or suspended from time to time
without prior notice.

Dividend Declaration

The board of directors declared a regular quarterly dividend of $0.24, payable
March 8 to shareholders of record as of February 15.

Earnings Conference Call

A conference call to discuss fourth-quarter results will begin at 9 a.m.
Eastern Time on Friday, February 1. Interested parties may access the call by
dialing 877-879-6203 (domestic) or 719-325-4824 (international). The access
code is 2397564. 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 90days following
the conference call. A telephonic replay will also be available through
February 9 at 888-203-1112 (domestic) or 719-457-0820 (international), access
code 2397564.

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 substantially all of 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, the cumulative effect of any accounting changes, and
other items that 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 $2.9
trillion of life reinsurance in force, and assets of $40.4 billion.

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.

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
Annual Report on Form 10-K for the year ended December 31, 2011.


REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Operating Income
(Dollars in thousands)
                                                           
                                                                  
(Unaudited)         Three Months Ended             Twelve Months Ended
                    December 31,                   December 31,
                    2012           2011            2012           2011
GAAP net income     $ 222,989      $ 138,579       $ 631,893      $ 546,045
Reconciliation
to operating
income:
Capital (gains)
losses,
derivatives and
other, included       (2,801   )     (4,906  )       (21,418  )     (175,911 )
in investment
related (gains)
losses, net
Capital (gains)
losses on funds
withheld:
Included in
investment            (4,190   )     (126    )       (11,134  )     (3,344   )
income
Included in
policy
acquisition           36             31              350            617
costs and other
insurance
expenses
Embedded
derivatives:
Included in
investment            (68,017  )     36,700          (142,754 )     202,423
related (gains)
losses, net
Included in
interest              5,012          6,169           29,314         26,838
credited
Included in
policy
acquisition           -              4,490           -              2,675
costs and other
insurance
expenses
DAC offset, net       28,801         (53,844 )       30,131         (73,984  )
Gain on
repurchase of
collateral            -              (6,321  )       -              (42,617  )
finance
facility
securities
Loss on
retirement of
Preferred
Income Equity        -            -             -            2,854    
Redeemable
Securities
("PIERS")
Operating           $ 181,830     $ 120,772      $ 516,382     $ 485,596  
income
                                                                  
                                                                  
                                                                  
                                                                  
Reconciliation of Consolidated Pre-tax Net Income to Pre-tax Operating Income
(Dollars in thousands)
                                                                  
                                                                  
(Unaudited)         Three Months Ended             Twelve Months Ended
                    December 31,                   December 31,
                    2012           2011            2012           2011
Income before       $ 321,089      $ 193,251       $ 919,223      $ 763,571
income taxes
Reconciliation
to pre-tax
operating
income:
Capital (gains)
losses,
derivatives and
other, included       (3,404   )     (5,360  )       (28,430  )     (265,607 )
in investment
related (gains)
losses, net
Capital (gains)
losses on funds
withheld:
Included in
investment            (6,447   )     (194    )       (17,130  )     (5,144   )
income
Included in
policy
acquisition           55             47              538            949
costs and other
insurance
expenses
Embedded
derivatives:
Included in
investment            (104,642 )     56,461          (219,622 )     311,420
related (gains)
losses, net
Included in
interest              7,711          9,490           45,098         41,289
credited
Included in
policy
acquisition           -              6,908           -              4,115
costs and other
insurance
expenses
DAC offset, net       44,308         (82,837 )       46,355         (113,821 )
Gain on
repurchase of
collateral            -              (9,725  )       -              (65,565  )
finance
facility
securities
Loss on
retirement of        -            -             -            4,391    
PIERS
Pre-tax
operating           $ 258,670     $ 168,041      $ 746,032     $ 675,598  
income

             
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Pre-tax Net Income to Pre-tax Operating Income
(Dollars in thousands)
                                                                               
(Unaudited)
               Three Months Ended December 31, 2012
                                                                                         
                                Capital             Change in
                                (gains)             value of             Pre-tax
                                losses,
                Pre-tax net     derivatives         embedded             operating
                income          and other,          derivatives,         income
                (loss)          net                 net                  (loss)
U.S.
Operations:
Traditional     $ 151,361       $ (14,476 )         $  2,724             $ 139,609
Asset             86,407          (15,145 ) (1)        (30,424 ) (2)       40,838
Intensive
Financial        8,633         (112    )           -                 8,521   
Reinsurance
Total U.S.        246,401         (29,733 )            (27,700 )           188,968
Canada            59,358          (5,320  )            -                   54,038
Operations
Europe &          15,584          (1,325  )            -                   14,259
South Africa
Asia Pacific      5,935           2,520                -                   8,455
Operations
Corporate        (6,189  )      (861    )           -                 (7,050  )
and Other
Consolidated    $ 321,089      $ (34,719 )         $  (27,700 )         $ 258,670 
                                                                                         
(1) Asset Intensive is net of $(24,923) DAC offset.
(2) Asset Intensive is net of $69,231 DAC offset.
                                                                                         
                                                                                         
(Unaudited)
               Three Months Ended December 31, 2011
                                                                                         
                                Capital             Change in            Net (gain)
                                                                         loss
                                (gains)             value of             on              Pre-tax
                                losses,                                  repurchase
                Pre-tax net     derivatives         embedded             and             operating
                                                                         retirement
                income          and other,          derivatives,         of              income
                (loss)          net                 net                  securities      (loss)
U.S.
Operations:
Traditional     $ 112,583       $ (29,038 )         $  (1,037  )         $ -             $ 82,508
Asset             13,283          (14,585 ) (1)        28,574    (2)       -               27,272
Intensive
Financial        6,834         87                 -                 -             6,921   
Reinsurance
Total U.S.        132,700         (43,536 )            27,537              -               116,701
Canada            47,241          (6,545  )            -                   -               40,696
Operations
Europe &          36,013          (2,951  )            -                   -               33,062
South Africa
Asia Pacific      (9,712  )       (5,309  )            -                   -               (15,021 )
Operations
Corporate        (12,991 )      15,319             -                 (9,725  )      (7,397  )
and Other
Consolidated    $ 193,251      $ (43,022 )         $  27,537           $ (9,725  )     $ 168,041 
                                                                                         
(1) Asset Intensive is net of $(37,515) DAC offset.
(2) Asset Intensive is net of $(45,322) DAC offset.

              
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Pre-tax Net Income to Pre-tax Operating Income
(Dollars in thousands)
                                                                                  
(Unaudited)
                Twelve Months Ended December 31, 2012
                                                                                         
                                 Capital             Change in
                                 (gains)             value of            Pre-tax
                                 losses,
                 Pre-tax net     derivatives         embedded            operating
                 income          and other,          derivatives,        income
                 (loss)          net                 net                 (loss)
U.S.
Operations:
Traditional      $ 368,095       $ 424               $  2,046            $ 370,565
Asset              235,585         (80,767  ) (1 )      (45,737 ) (2 )     109,081
Intensive
Financial         32,730        141                -                32,871  
Reinsurance
Total U.S.         636,410         (80,202  )           (43,691 )          512,517
Canada             186,971         (27,625  )           -                  159,346
Operations
Europe &           73,947          (11,574  )           -                  62,373
South Africa
Asia Pacific       45,378          (8,035   )           -                  37,343
Operations
Corporate         (23,483 )      (2,064   )          -                (25,547 )
and Other
Consolidated     $ 919,223      $ (129,500 )        $  (43,691 )        $ 746,032 
                                                                                         
(1) Asset Intensive is net of $(84,478) DAC offset.
(2) Asset Intensive is net of $130,833 DAC offset.
                                                                                         
                                                                                         
(Unaudited)
                Twelve Months Ended December 31, 2011
                                                                                         
                                 Capital             Change in           Net (gain)
                                                                         loss
                                 (gains)             value of            on              Pre-tax
                                 losses,                                 repurchase
                 Pre-tax net     derivatives         embedded            and             operating
                                                                         retirement
                 income          and other,          derivatives,        of              income
                                 net                 net                 securities      (loss)
U.S.
Operations:
Traditional      $ 363,964       $ (41,799  )        $  (2,412  )        $ -             $ 319,753
Asset              35,330          (42,327  ) (1 )      77,117    (2 )     -               70,120
Intensive
Financial         26,343        128                -                -             26,471  
Reinsurance
Total U.S.         425,637         (83,998  )           74,705             -               416,344
Canada             164,953         (21,798  )           -                  -               143,155
Operations
Europe &           83,102          (6,000   )           -                  -               77,102
South Africa
Asia Pacific       42,234          (3,056   )           -                  -               39,178
Operations
Corporate         47,645        13,348             -                (61,174 )      (181    )
and Other
Consolidated     $ 763,571      $ (101,504 )        $  74,705          $ (61,174 )     $ 675,598 
                                                                                         
(1) Asset Intensive is net of $168,298 DAC offset.
(2) Asset Intensive is net of $(282,119) DAC offset.


REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Per Share and Shares Data
(In thousands, except per share data)
                                                                
                                                                      
(Unaudited)                          Three Months Ended    Twelve Months Ended
                                     December 31,          December 31,
                                     2012       2011       2012       2011
Diluted earnings per share from      $ 2.44     $ 1.64     $ 6.96     $ 6.55
operating income
                                                                      
Earnings per share from net
income:
Basic earnings per share             $ 3.02     $ 1.89     $ 8.57     $ 7.42
Diluted earnings per share           $ 3.00     $ 1.88     $ 8.52     $ 7.37
                                                                      
Weighted average number of
common and common equivalent           74,375     73,812     74,153     74,108
shares outstanding
                                                                      
                                                                      
                                                                      
(Unaudited)
                                     At December 31,
                                     2012       2011
Treasury shares                        5,211      5,770
Common shares outstanding              73,927     73,368
Book value per share outstanding     $ 93.47    $ 79.31
Book value per share
outstanding, before impact of        $ 64.95    $ 57.25
AOCI


REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

Condensed Consolidated Statements of Income
(Dollars in thousands)
                                                                      
                                                                               
(Unaudited)              Three Months Ended                  Twelve Months Ended
                         December 31,                        December 31,
Revenues:                2012              2011              2012              2011
Net premiums             $ 2,179,707       $ 2,034,716       $ 7,906,596       $ 7,335,687
Investment income,
net of related             370,151           304,511           1,436,206         1,281,197
expenses
Investment related
gains (losses), net:
Other-than-temporary
impairments on fixed       (4,346    )       (11,824   )       (15,908   )       (30,873   )
maturity securities
Other-than-temporary
impairments on fixed
maturity securities
transferred to             -                 543               (7,618    )       3,924
(from) accumulated
other comprehensive
income
Other investment
related gains             115,108         (36,183   )      277,662         (9,107    )
(losses), net
Total investment
related gains              110,762           (47,464   )       254,136           (36,056   )
(losses), net
Other revenue             62,482          56,456          243,973         248,710   
Total revenues            2,723,102       2,348,219       9,840,911       8,829,538 
                                                                               
Benefits and
expenses:
Claims and other           1,797,779         1,720,956         6,665,999         6,225,183
policy benefits
Interest credited          94,835            78,884            379,915           316,394
Policy acquisition
costs and other            344,791           204,883           1,306,470         990,021
insurance expenses
Other operating            132,334           122,000           451,759           419,340
expenses
Interest expense           28,917            25,226            105,348           102,638
Collateral finance        3,357           3,019           12,197          12,391    
facility expense
Total benefits and        2,402,013       2,154,968       8,921,688       8,065,967 
expenses
                                                                               
Income before income       321,089           193,251           919,223           763,571
taxes
Income tax expense        98,100          54,672          287,330         217,526   
Net income               $ 222,989        $ 138,579        $ 631,893        $ 546,045   

Contact:

Reinsurance Group of America, Incorporated
John W. Hayden, 636-736-7000
Senior Vice President – Controller and Investor Relations
 
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