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): April 22, 2005 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 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT DIRECTORS' COMPENSATION ARRANGEMENTS On April 22, 2005, the Board of Directors of Reinsurance Group of America, Incorporated (the "Company") approved the fees and basic ------- compensation information for the Company's directors for 2005. Effective as of January 1, 2005, directors who are not employed by the Company, MetLife, Inc. ("MetLife") or any subsidiaries of the Company or MetLife ------- (collectively, "Non-Employee Directors") will be paid an annual retainer fee ---------------------- of $50,000, except the chairs of the Compensation and Nominating and Corporate Governance Committees, who will be paid an annual retainer fee of $58,000, and the chair of the Audit Committee, who will be paid an annual retainer fee of $62,000. Non-Employee Directors will be paid $3,000 for each Board meeting attended in person, $1,500 for each telephonic Board meeting attended, $3,000 for each committee meeting attended in person, and $1,500 for each telephonic committee meeting attended. Also on the date of the regular Board meeting in January of each year, each Non-Employee Director (other than the Chairman) will be granted one thousand two hundred (1,200) shares of common stock. The group of Non-Employee Directors currently consists of Messrs. Bartlett, Eason, Greenbaum and Henderson. The Company also reimburses directors for out-of-pocket expenses incurred in connection with attending Board and committee meetings. Directors who also serve as officers of the Company, MetLife or any subsidiaries of the Company or MetLife do not receive any additional compensation for serving as members of the Board of Directors or any of its committees. The Chairman of the Board (if qualified as a Non-Employee Director) will receive an annual retainer of $83,000, $4,000 for each Board meeting attended in person, $2,000 for each telephonic Board meeting attended, Committee chair and member fees as described above, and a grant of one thousand six hundred (1,600) shares of common stock on the date of the regular Board meeting in January of each year. Non-Employee Directors may elect to receive phantom shares in lieu of their annual retainer and meeting fees. A phantom share is a hypothetical share of common stock of the Company based upon the fair market value of the common stock at the time of the grant. Phantom shares are not transferable and are subject to forfeiture unless held until the director ceases to be a director by reason of retirement, death or disability. Upon such an event, the Company will issue cash or shares of common stock in an amount equal to the value of the phantom shares. All grants of stock are issued pursuant to the Flexible Stock Plan for Directors, which was adopted effective January 1, 1997. At the annual meeting held May 28, 2003, the shareholders approved the Amended and Restated Flexible Stock Plan for Directors. Phantom shares are granted under the Phantom Stock Plan for Directors, which was adopted April 13, 1994. At the annual meeting held May 28, 2003, the shareholders approved an amendment to the Phantom Stock Plan for Directors. A copy of the directors' compensation summary sheet is attached as Exhibit 10.1 hereto and is hereby incorporated by reference. The foregoing descriptions of the Flexible Stock Plan for Directors, Phantom Stock Plan for Directors and awards thereunder are only summaries and are qualified in their entirety by the full text of the Flexible Stock Plan for Directors and Phantom Stock Plan for Directors, copies of which are attached as Exhibits 10.2 and 10.3 hereto and are hereby incorporated by reference. ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On April 25, 2005, the Company issued a press release announcing its earnings for the three-month period ended March 31, 2005 and providing certain additional information. In addition, the Company announced in the press release that a conference call would be held on April 26, 2005 to discuss its financial and operating results for the three-month period ended March 31, 2005. A copy of the press release is furnished with this report as Exhibit 99.1 and incorporated by reference herein. The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information or exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. ITEM 7.01 REGULATION FD DISCLOSURE On April 25, 2005, the Company issued a press release announcing its earnings for the three-month period ended March 31, 2005 and providing certain additional information. In addition, the Company announced in the press release that a conference call would be held on April 26, 2005 to discuss its financial and operating results for the three-month period ended March 31, 2005. A copy of the press release is furnished with this report as Exhibit 99.1 and incorporated by reference herein. The information in Item 7.01 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, nor shall such information or exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits Exhibit No. Exhibit ----------- ------- 10.1 Directors' Compensation Summary Sheet 10.2 Reinsurance Group of America, Incorporated Flexible Stock Plan for Directors, as amended and restated effective May 28, 2003, incorporated by reference to Proxy Statement on Schedule 14A for the annual meeting of shareholders on May 28, 2003, filed on April 10, 2003 10.3 Phantom Stock Plan for Directors of Reinsurance Group of America, Incorporated, as amended and restated, incorporated by reference to Exhibit 10.1 to Registration Statement on Form S-8 (File No. 333- 119544), filed on October 5, 2004 99.1 Press Release of Reinsurance Group of America, Incorporated dated April 25, 2005 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: April 25, 2005 By: /s/ Jack B. Lay ------------------------------ Jack B. Lay Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Exhibit ----------- ------- 10.1 Directors' Compensation Summary Sheet 10.2 Reinsurance Group of America, Incorporated Flexible Stock Plan for Directors, as amended and restated effective May 28, 2003, incorporated by reference to Proxy Statement on Schedule 14A for the annual meeting of shareholders on May 28, 2003, filed on April 10, 2003 10.3 Phantom Stock Plan for Directors of Reinsurance Group of America, Incorporated, as amended and restated, incorporated by reference to Exhibit 10.1 to Registration Statement on Form S-8 (File No. 333- 119544), filed on October 5, 2004 99.1 Press Release of Reinsurance Group of America, Incorporated dated April 25, 2005.
Exhibit 10.1 REINSURANCE GROUP OF AMERICA, INCORPORATED DIRECTORS' COMPENSATION SUMMARY SHEET EFFECTIVE JANUARY 1, 2005 - --------------------------------------------------------------------------------------------------------- NON- EMPLOYEE BOARD MEMBERS OUTSIDE BOARD CHAIRMAN - --------------------------------------------------------------------------------------------------------- ANNUAL RETAINER Board Members - $50,000 $83,000 Committee Chairpersons - $58,000 Audit Committee Chair - $62,000 - --------------------------------------------------------------------------------------------------------- BOARD MEETING FEE $3,000 - In Person $4,000 - In Person $1,500 - By Telephone $2,000 - By Telephone - --------------------------------------------------------------------------------------------------------- COMMITTEE MEMBER MEETING FEE $3,000 - In Person $4,000 - In Person $1,500 - By Telephone $2,000 - By Telephone - --------------------------------------------------------------------------------------------------------- COMMITTEE CHAIR MEETING FEES $3,000 - In Person $4,000 - In Person $1,500 - By Telephone $2,000 - By Telephone - --------------------------------------------------------------------------------------------------------- STOCK GRANT 1,200 Shares 1,600 Shares - ---------------------------------------------------------------------------------------------------------
Exhibit 99.1 [RGA logo] For further information, contact Jack B. Lay Executive Vice President and Chief Financial Officer (636) 736-7439 FOR IMMEDIATE RELEASE - --------------------- REINSURANCE GROUP OF AMERICA REPORTS ------------------------------------ FIRST-QUARTER RESULTS --------------------- ST. LOUIS, April 25, 2005 - Reinsurance Group of America, Incorporated (NYSE:RGA), a leading global provider of life reinsurance, reported net income for the first quarter of $66.6 million, or $1.04 per diluted share, compared to net income of $61.7 million, or $0.98 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 16 percent to $60.4 million from $52.1 million, while diluted operating earnings per share rose 14 percent to $0.95 from $0.83 in the year-ago quarter. First-quarter net premiums totaled $901.8 million compared to $813.9 million a year ago. Net investment income totaled $157.1 million versus $133.6 million the year before. A. Greig Woodring, president and chief executive officer, commented, "On a consolidated basis, bottom-line results were in line with expectations, with strong results in Canada and some of the international businesses offsetting poor mortality experience in the U.S. The U.S. segment reported pre-tax net income of $66.0 million compared with $70.2 million in the prior-year quarter, while pre-tax operating income decreased to $56.6 million from $65.3 million. An unusually high number of large claims during the quarter was the primary driver for the mortality experience in the U.S. Net premiums rose 7 percent to $568.1 million from $532.4 million in the prior year, slightly behind our expected full-year growth rate of at least 10 percent. The fundamentals in the U.S. market remain strong. - more - Add One "For the quarter, our Canada operations reported pre-tax net income of $24.2 million compared to $15.9 million a year ago. Pre-tax operating income was up 60 percent to $23.4 million from $14.6 million. Strong premium levels, favorable mortality and a stronger Canadian dollar contributed to the results. Net premiums increased $13.7 million, or 23 percent for the quarter, and totaled $73.8 million. Approximately $5.1 million of the increase in net premiums and approximately $1.8 million of the increase in pre-tax operating income were the result of a favorable currency exchange rate. "Other International operations, which include our Asia Pacific and Europe and South Africa segments, reported 18 percent growth in net premiums, increasing to $259.6 million from $220.7 million. Stronger foreign currencies contributed approximately $8.1 million to the premium growth. Pre-tax net income totaled $19.5 million compared to $13.1 million in the prior-year quarter. Pre-tax operating income for the quarter more than doubled to $19.6 million from $9.6 million in the prior year, with foreign currency appreciation contributing approximately $1.3 million to current quarter pre-tax operating income. Results were strong in Europe and South Africa while Asia Pacific was adversely affected by large claims in Japan. During the quarter we strengthened our presence in South Korea when regulators approved our branch license. We expect our office in China to be up and running during the second quarter. As previously indicated, quarterly results in our international operations may be more volatile than our North American operations due to the smaller size and relative maturity of this business." Woodring concluded, "We reported a good quarter, despite the weakness in the U.S. results. Our segments outside the U.S. combined to contribute nearly $43 million of the $90 million in consolidated pre-tax operating income for the quarter, a clear indication that we are creating diverse sources of mortality-based earnings." The company also announced that its board of directors declared a regular quarterly dividend of $0.09, payable May 31 to shareholders of record as of May 9. - more - Add Two A conference call to discuss the company's first-quarter results will begin at 9 a.m. Eastern Time on Tuesday, April 26. Interested parties may access the call by dialing 800-262-1292 (domestic) or 719-457-2680 (international). The access code is 804742. 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 15 days following the conference call. A replay of the conference call will also be available via telephone through May 3 at 888-203-1112 (domestic) or 719-457-0820, access code 804742. Reinsurance Group of America, Incorporated, through its subsidiaries, is among the largest global providers of life reinsurance. In addition to its U.S. and Canadian operations, Reinsurance Group of America, Incorporated has subsidiary companies or offices in Australia, Barbados, Hong Kong, India, Ireland, Japan, Mexico, South Africa, South Korea, Spain, Taiwan, and the United Kingdom. Worldwide, the company has approximately $1.5 trillion of life reinsurance in force, and assets of $14.4 billion. MetLife, Inc. is the beneficial owner of approximately 51 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. - more - Add Three 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 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 or terrorist attacks 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 Four 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 realized capital 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) Three Months Ended March 31, ------------------ 2005 2004 ---- ---- GAAP net income-continuing operations $67,264 $62,994 Realized investment (gains)/losses (2,732) (12,684) Change in value of embedded derivatives (14,664) (989) DAC offsets for embedded derivatives and realized investment (gains)/losses, net 10,553 2,767 -------------------- Operating income $60,421 $52,088 - more - Add Five 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 March 31, 2005 Realized Change in Pre-tax investment value of Pre-tax net (gains)/ embedded operating income losses, derivatives, income (loss) net net (loss) ------- ---------- ------------ -------- U.S. Operations: Traditional $ 45,076 $ 423 $ -- $45,499 Asset Intensive 17,626 (2,977)(1) (6,853)(2) 7,796 Financial Reinsurance 3,282 -- -- 3,282 -------------------------------------------- Total U.S. 65,984 (2,554) (6,853) 56,577 Canada Operations 24,209 (834) -- 23,375 Asia Pacific Operations 4,772 79 -- 4,851 Europe & South Africa 14,758 (43) -- 14,715 -------------------------------------------- Other Intl Operations 19,530 36 -- 19,566 Corporate & Other (9,188) (100) -- (9,288) -------------------------------------------- Consolidated $100,535 $(3,452) $(6,853) $90,230 ============================================
(1) Asset Intensive is net of $527 DAC offset. (2) Asset Intensive is net of DAC offsets of $15,708 included in change in deferred acquisition cost associated with change in value of embedded derivative. Three Months Ended March 31, 2004 Realized Change in Pre-tax investment value of Pre-tax net (gains)/ embedded operating income losses, derivatives, income (loss) net net (loss) ------- ---------- ------------ -------- U.S. Operations: Traditional $64,032 $ (7,558) $ -- $ 56,474 Asset Intensive 3,508 (87)(1) 2,678(2) 6,099 Financial Reinsurance 2,707 -- -- 2,707 -------------------------------------------- Total U.S. 70,247 (7,645) 2,678 65,280 Canada Operations 15,920 (1,309) -- 14,611 Asia Pacific Operations 6,797 (347) -- 6,450 Europe & South Africa 6,260 (3,159) -- 3,101 -------------------------------------------- Other Intl Operations 13,057 (3,506) -- 9,551 Corporate & Other (4,409) (5,899) -- (10,308) -------------------------------------------- Consolidated $94,815 $(18,359) $2,678 $ 79,134 ============================================ (1)Asset Intensive is net of $57 DAC offset. (2)Asset Intensive is net of DAC offsets of $4,200 included in change in deferred acquisition cost associated with change in value of embedded derivative. - more - Add Six REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollars in thousands) Three Months Ended (Unaudited) March 31, - ------------------------------------------------------------------- 2005 2004 ---- ---- Revenues: Net premiums $901,820 $813,874 Investment income, net of related expenses 157,053 133,560 Realized investment gains/(losses), net 3,979 18,416 Change in value of embedded derivatives 22,561 1,522 Other revenues 10,803 11,850 ----------------------- Total revenues 1,096,216 979,222 Benefits and expenses: Claims and other policy benefits 738,053 647,054 Interest credited 55,053 47,018 Policy acquisition costs and other insurance expenses 143,976 143,068 Change in deferred acquisition cost associated with change in value of embedded derivatives 15,708 4,200 Other operating expenses 33,006 33,529 Interest expense 9,885 9,538 ----------------------- Total benefits and expenses 995,681 884,407 ----------------------- Income from continuing operations before income taxes 100,535 94,815 Provision for income taxes 33,271 31,821 ----------------------- Income from continuing operations 67,264 62,994 Discontinued operations: Loss from discontinued accident and health operations, net of income taxes (707) (894) Cumulative effect of change in accounting principle -- (361) ----------------------- Net income $ 66,557 $ 61,739 ======================= - more - Add Seven REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollars in thousands, except per share data) Three Months Ended (Unaudited) March 31, - --------------------------------------------------------------------- 2005 2004 ---- ---- Earnings per share from continuing operations: Basic earnings per share $ 1.08 $ 1.01 Diluted earnings per share $ 1.05 $ 1.00 Diluted earnings before realized investment gains/(losses), change in value of embedded derivatives, and related deferred acquisition costs $ 0.95 $ 0.83 Earnings per share from net income: Basic earnings per share $ 1.06 $ 0.99 Diluted earnings per share $ 1.04 $ 0.98 Weighted average number of common and common equivalent shares outstanding (in thousands) 63,854 62,708 - more - Add Eight REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Business Summary At or For the Three Months Ended (Unaudited) March 31, - ----------------------------------------------------------------------- 2005 2004 ---- ---- Gross life reinsurance in force (in billions) North American business $1,125.3 $1,003.0 International business $ 366.6 $ 310.5 Gross life reinsurance written (in billions) North American business $ 42.7 $ 47.3 International business $ 25.2 $ 30.5 Consolidated cash and invested assets (in millions) $10,963.0 $9,607.7 Invested asset book yield - trailing three months excluding funds withheld 5.75% 5.83% Investment portfolio mix Cash and short-term investments 1.48% 2.88% Fixed maturity securities 55.94% 50.53% Mortgage loans 5.60% 5.25% Policy loans 8.73% 9.40% Funds withheld at interest 26.27% 29.79% Other invested assets 1.98% 2.15% Short-term debt (in millions) $ 55.4 $ -- Long-term debt (in millions) $ 349.7 $ 404.1 Book value per share outstanding $ 36.79 $ 33.11 Book value per share outstanding, before impact of FAS 115* $ 33.42 $ 29.44 Total stockholder's equity (in millions) 2,303.5 2,060.9 Total stockholder's equity, before impact of FAS 115* (in millions) 2,092.7 1,832.8 Treasury shares 513,918 883,067 Common stock outstanding 62,614,355 62,245,206 * Book value per share outstanding and total stockholders' equity, before impact of FAS 115, is a non-GAAP financial measure that management believes is 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 Nine REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. OPERATIONS (Unaudited) (Dollars in thousands) Three Months Ended March 31, 2005 Asset- Financial Total Revenues: Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Net premiums $566,894 $ 1,224 $ -- $568,118 Investment income, net of related expenses 55,231 58,272 41 113,544 Realized investment gains/(losses), net (423) 3,504 -- 3,081 Change in value of embedded derivatives -- 22,561 -- 22,561 Other revenues 921 1,047 7,304 9,272 ------------------------------------------- Total revenues 622,623 86,608 7,345 716,576 Benefits and expenses: Claims and other policy benefits 483,261 (1,684) 2 481,579 Interest credited 14,007 40,251 -- 54,258 Policy acquisition costs and other insurance expenses 71,017 13,369 2,624 87,010 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- 15,708 -- 15,708 Other operating expenses 9,262 1,338 1,437 12,037 -------------------------------------------- Total benefits and expenses 577,547 68,982 4,063 650,592 Income before income taxes $ 45,076 $ 17,626 $ 3,282 $ 65,984 ======== ======== ======== ======== Three Months Ended March 31, 2004 Asset- Financial Total Revenues: Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Net premiums $531,211 $ 1,182 $ -- $532,393 Investment income, net of related expenses 54,053 45,467 43 99,563 Realized investment gains, net 7,558 144 -- 7,702 Change in value of embedded derivatives -- 1,522 -- 1,522 Other revenues 1,334 1,670 6,380 9,384 --------------------------------------------- Total revenues 594,156 49,985 6,423 650,564 Benefits and expenses: Claims and other policy benefits 430,891 (1,021) -- 429,870 Interest credited 12,078 34,494 -- 46,572 Policy acquisition costs and other insurance expenses 75,431 7,645 2,294 85,370 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- 4,200 -- 4,200 Other operating expenses 11,724 1,159 1,422 14,305 -------------------------------------------- Total benefits and expenses 530,124 46,477 3,716 580,317 Income before income taxes $ 64,032 $ 3,508 $ 2,707 $ 70,247 ======== ======== ======== ======== - more - Add Ten REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES CANADIAN OPERATIONS (Dollars in thousands) Three Months Ended (Unaudited) March 31, - ------------------------------------------------------------------------ 2005 2004 ---- ---- Revenues: Net premiums $ 73,756 $ 60,148 Investment income, net of related expenses 28,760 23,980 Realized investment gains, net 834 1,309 Other revenues 34 38 -------- -------- Total revenues 103,384 85,475 Benefits and expenses: Claims and other policy benefits 68,646 59,366 Interest credited 357 377 Policy acquisition costs and other insurance expenses 6,713 7,083 Other operating expenses 3,459 2,729 -------- -------- Total benefits and expenses 79,175 69,555 Income before income taxes $ 24,209 $ 15,920 ======== ======== Europe & South Africa (Dollars in thousands) Three Months Ended (Unaudited) March 31, - ------------------------------------------------------------------------ 2005 2004 ---- ---- Revenues: Net premiums $141,358 $117,203 Investment income, net of related expenses 2,555 1,544 Realized investment gains, net 43 3,159 Other revenues 52 438 -------- -------- Total revenues 144,008 122,344 Benefits and expenses: Claims and other policy benefits 96,332 81,997 Interest credited 363 -- Policy acquisition costs and other insurance expenses 26,396 29,031 Other operating expenses 5,660 4,682 Interest expense 499 374 -------- -------- Total benefits and expenses 129,250 116,084 Income before income taxes $ 14,758 $ 6,260 ======== ======== - more - Add Eleven REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Asia Pacific (Dollars in thousands) Three Months Ended (Unaudited) March 31, - ------------------------------------------------------------------------ 2005 2004 ---- ---- Revenues: Net premiums $118,207 $103,539 Investment income, net of related expenses 6,228 3,735 Realized investment gains/(losses), net (79) 347 Other revenues (187) 635 -------- -------- Total revenues 124,169 108,256 Benefits and expenses: Claims and other policy benefits 90,660 74,845 Policy acquisition costs and other insurance expenses 23,655 21,530 Other operating expenses 4,674 4,742 Interest expense 408 342 -------- -------- Total benefits and expenses 119,397 101,459 Income before income taxes $ 4,772 $ 6,797 ======== ======== CORPORATE AND OTHER (Dollars in thousands) Three Months Ended (Unaudited) March 31, - ------------------------------------------------------------------------ 2005 2004 ---- ---- Revenues: Net premiums $ 381 $ 591 Investment income, net of related expenses 5,966 4,738 Realized investment gains, net 100 5,899 Other revenues 1,632 1,355 -------- -------- Total revenues 8,079 12,583 Benefits and expenses: Claims and other policy benefits 835 976 Interest credited 75 69 Policy acquisition costs and other insurance expenses 203 54 Other operating expenses 7,176 7,071 Interest expense 8,978 8,822 -------- -------- Total benefits and expenses 17,267 16,992 Income before income taxes $ (9,188) $ (4,409) ======== ======== # # #