REINSURANCE GROUP OF AMERICA INC – 10-Q – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Note Regarding Forward-Looking Statements

This report 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 future operations, strategies,
earnings, revenues, income or loss, ratios, financial performance and growth
potential of the Company. Forward-looking statements often contain words and
phrases such as "intend," "expect," "project," "estimate," "predict,"
"anticipate," "should," "believe" and other similar expressions. Forward-looking
statements are based on management's current expectations and beliefs concerning
future developments and their potential effects on the Company. Forward-looking
statements are not a guarantee of future performance and are 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.

The effects of the COVID-19 pandemic and the response thereto on economic
conditions, the financial markets and insurance risks, and the resulting effects
on the Company's financial results, liquidity, capital resources, financial
metrics, investment portfolio and stock price, could cause actual results and
events to differ materially from those expressed or implied by forward-looking
statements. Additionally, numerous other important factors (whether related to,
resulting from or exacerbated by the COVID-19 pandemic or otherwise) could also
cause results and events to differ materially from those expressed or implied by
forward-looking statements, including, without limitation: (1) adverse changes
in mortality, morbidity, lapsation or claims experience, (2) inadequate risk
analysis and underwriting, (3) adverse capital and credit market conditions and
their impact on the Company's liquidity, access to capital and cost of capital,
(4) changes in the Company's financial strength and credit ratings and the
effect of such changes on the Company's future results of operations and
financial condition, (5) the availability and cost of collateral necessary for
regulatory reserves and capital, (6) requirements to post collateral or make
payments due to declines in market value of assets subject to the Company's
collateral arrangements, (7) action by regulators who have authority over the
Company's reinsurance operations in the jurisdictions in which it operates,
(8) the effect of the Company parent's status as an insurance holding company
and regulatory restrictions on its ability to pay principal of and interest on
its debt obligations, (9) general economic conditions or a prolonged economic
downturn affecting the demand for insurance and reinsurance in the Company's
current and planned markets, (10) the impairment of other financial institutions
and its effect on the Company's business, (11) fluctuations in U.S. or foreign
currency exchange rates, interest rates, or securities and real estate markets,
(12) market or economic conditions that adversely affect the value of the
Company's investment securities or result in the impairment of all or a portion
of the value of certain of the Company's investment securities, that in turn
could affect regulatory capital, (13) market or economic conditions that
adversely affect the Company's ability to make timely sales of investment
securities, (14) risks inherent in the Company's risk management and investment
strategy, including changes in investment portfolio yields due to interest rate
or credit quality changes, (15) the fact that the determination of allowances
and impairments taken on the Company's investments is highly subjective,
(16) the stability of and actions by governments and economies in the markets in
which the Company operates, including ongoing uncertainties regarding the amount
of U.S. sovereign debt and the credit ratings thereof, (17) the Company's
dependence on third parties, including those insurance companies and reinsurers
to which the Company cedes some reinsurance, third-party investment managers and
others, (18) financial performance of the Company's clients, (19) the threat of
natural disasters, catastrophes, terrorist attacks, epidemics or pandemics
anywhere in the world where the Company or its clients do business,
(20) competitive factors and competitors' responses to the Company's
initiatives, (21) development and introduction of new products and distribution
opportunities, (22) execution of the Company's entry into new markets,
(23) integration of acquired blocks of business and entities, (24) interruption
or failure of the Company's telecommunication, information technology or other
operational systems, or the Company's failure to maintain adequate security to
protect the confidentiality or privacy of personal or sensitive data stored on
such systems, (25) adverse litigation or arbitration results, (26) the adequacy
of reserves, resources and accurate information relating to settlements, awards
and terminated and discontinued lines of business, (27) changes in laws,
regulations, and accounting standards applicable to the Company or its business,
including Long Duration Targeted Improvement accounting changes, and (28) other
risks and uncertainties described in this document and in the Company's other
filings with the Securities and Exchange Commission ("SEC").

Forward-looking statements should be evaluated together with the many risks and
uncertainties that affect the Company's business, including those mentioned in
this document and described in the periodic reports the Company files with the
SEC. These forward-looking statements speak only as of the date on which they
are made. The Company does not undertake any obligation to update these
forward-looking statements, even though the Company's situation may change in
the future. For a discussion of these risks and uncertainties that could cause
actual results to differ materially from those contained in the forward-looking
statements, you are advised to see Item 1A - "Risk Factors" in the 2021 Annual
Report, as may be supplemented by Item 1A - "Risk Factors" in the Company's
subsequent Quarterly Reports on Form 10-Q.

Overview

The Company is among the leading global providers of life reinsurance and
financial solutions, with $3.5 trillion of life reinsurance in force and assets
of $89.8 billion as of March 31, 2022. Traditional reinsurance includes
individual and group life

                                       36

--------------------------------------------------------------------------------

Table of Contents

and health, disability, and critical illness reinsurance. Financial solutions
includes longevity reinsurance, asset-intensive reinsurance, capital solutions,
including financial reinsurance and stable value products. The Company derives
revenues primarily from renewal premiums from existing reinsurance treaties, new
business premiums from existing or new reinsurance treaties, fee income from
financial solutions business and income earned on invested assets.

Historically, the Company's primary business has been traditional life
reinsurance, which involves reinsuring life insurance policies that are often in
force for the remaining lifetime of the underlying individuals insured, with
premiums earned typically over a period of 10 to 30 years. To a lesser extent,
the Company also reinsures health business typically reinsured for one to three
years. Each year, however, a portion of the business under existing treaties
terminates due to, among other things, lapses or voluntary surrenders of
underlying policies, deaths of insureds, and the exercise of recapture options
by ceding companies. The Company has expanded its financial solutions business,
including significant asset-intensive and longevity risk transactions, which
allow its clients to take advantage of growth opportunities and manage their
capital, longevity and investment risk.

For its traditional life business, the Company's profitability largely depends
on the volume and amount of death- and health-related claims incurred and the
ability to adequately price the risks it assumes. While death claims are
reasonably predictable over a period of many years, claims become less
predictable over shorter periods and are subject to significant fluctuation from
quarter to quarter and year to year. For longevity business, the Company's
profitability depends on the lifespan of the underlying contract holders and the
investment performance for certain contracts. Additionally, the Company
generates profits on investment spreads associated with the reinsurance of
investment type contracts and generates fees from financial reinsurance
transactions, which are typically shorter duration than its traditional life
reinsurance business. The Company believes its sources of liquidity are
sufficient to cover potential claims payments on both a short-term and long-term
basis.

As is customary in the reinsurance business, clients continually update, refine,
and revise reinsurance information provided to the Company. Such revised
information is used by the Company in preparation of its condensed consolidated
financial statements and the financial effects resulting from the incorporation
of revised data are reflected in the current period.

Segment Presentation

The Company has geographic-based and business-based operational segments.
Geographic-based operations are further segmented into traditional and financial
solutions businesses. The Company allocates capital to its segments based on an
internally developed economic capital model, the purpose of which is to measure
the risk in the business and to provide a consistent basis upon which capital is
deployed. The economic capital model considers the unique and specific nature of
the risks inherent in RGA's businesses.

As a result of the economic capital allocation process, a portion of investment
income is credited to the segments based on the level of allocated capital. In
addition, the segments are charged for excess capital utilized above the
allocated economic capital basis. This charge is included in policy acquisition
costs and other insurance expenses. Segment investment performance varies with
the composition of investments and the relative allocation of capital to the
operating segments.

Segment revenue levels can be significantly influenced by currency fluctuations,
large transactions, mix of business and reporting practices of ceding companies,
and therefore may fluctuate from period to period. Although reasonably
predictable over a period of years, segment claims experience can be volatile
over shorter periods. See "Results of Operations by Segment" below for further
information about the Company's segments.

                                       37

--------------------------------------------------------------------------------

Table of Contents

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires the
application of accounting policies that often involve a significant degree of
judgment. Management, on an ongoing basis, reviews estimates and assumptions
used in the preparation of financial statements. If management determines that
modifications in assumptions and estimates are appropriate given current facts
and circumstances, results of operations and financial position as reported in
the condensed consolidated financial statements could change significantly.

Management believes the critical accounting policies relating to the following
areas are most dependent on the application of estimates and assumptions:

  Premiums receivable;

  Deferred acquisition costs;

Liabilities for future policy benefits and incurred but not reported claims;

Valuation of investments, allowance for credit losses and impairments to
specific investments;

Valuation of embedded derivatives; and

Income taxes.

A discussion of each of the critical accounting policies may be found in the
Company's 2021 Annual Report under "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Critical Accounting Policies."

Consolidated Results of Operations

Impacts of the COVID-19 Pandemic

Although global COVID-19 related deaths have begun to decline, the Company
continues to experience increased claim costs as a result of the COVID-19 global
pandemic. However, the Company cannot reliably predict the future impact the
ongoing pandemic will have on its business, results of operations and financial
condition as the impact will depend on, among other factors, the severity of new
variants of the virus, vaccination effectiveness, country-specific
circumstances, and COVID-19's indirect impact on mortality and morbidity.

The ultimate amount and timing of claims the Company will experience as a result
of the COVID-19 pandemic will depend on many variables and uncertainties. These
variables and uncertainties include those discussed above, in addition to age,
gender, comorbidities, other insured versus general population characteristics,
geography-specific institutional and individual mitigating actions, medical
capacity, and other factors. To date, general population COVID-19 deaths have
been heavily concentrated in individuals aged 70 and older and with pre-existing
comorbidities; however, many populations have seen an increase in younger age
deaths, particularly in areas where healthcare facilities were unable to provide
adequate care. The Company's insured population has lower exposure to older ages
than the general population and covers a generally healthier population due to
underwriting and socioeconomic factors of those purchasing insurance. In
addition, the Company's longevity business may act as a modest offset to excess
life insurance claims at older ages.

The Company's COVID-19 projection and financial impact models continue to be
updated and refined based on latest external data and the Company's claim
experience to date and are subject to the many variables and uncertainties noted
above. The U.S. continues to be the key driver of mortality claim costs followed
by Canada and the UK. For the three months ended March 31, 2022, the Company
estimates it has incurred approximately $315 million of COVID-19 related life
and health claim costs, including amounts incurred but not reported, with
approximately $272 million of that amount being associated with the U.S. and
Latin America Traditional segment. The Company has maintained the range of
COVID-19 mortality claim cost estimates relative to the level of general
population deaths for the U.S., UK and Canada although short-term experience may
be at the higher end of those ranges, reflecting mortality that is still driven
in part by new variants of the virus. The Company estimates that every
additional 10,000 population deaths in the U.S., UK or Canada as a result of
COVID-19 would result in the following corresponding excess mortality claims of
approximately

•$10 million to $20 million in the U.S.;

•$4 million to $8 million in the UK; and

•$10 million to $20 million in Canada.

RGA's operating subsidiaries continue to be well capitalized, and the Company
continues to monitor its solvency position under multiple capital regimes on a
regular basis while considering both its developing experience and economic
conditions. In addition, the Company utilizes its internal capital model to
assess its ability to meet its long-term obligations under a range of stress
scenarios on a consolidated basis. This internal capital model is also used as
the capital basis for the Company's consolidated Own Risk and Solvency
Assessment.
                                       38

--------------------------------------------------------------------------------

Table of Contents

Results from Operations - 2022 compared to 2021

The following table summarizes net income for the periods presented.

For the three months ended March 31,
(Dollars in millions, except per share data)                                2022               2021             2022 vs 2021
Revenues:
Net premiums                                                            $   3,155          $   2,914          $         241
Net investment income                                                         810                812                     (2)

Investment related gains (losses), net                                       (126)               302                   (428)
Other revenues                                                                 91                 91                      -
Total revenues                                                              3,930              4,119                   (189)
Benefits and Expenses:
Claims and other policy benefits                                            3,225              3,192                     33
Interest credited                                                             141                146                     (5)
Policy acquisition costs and other insurance expenses                         355                333                     22
Other operating expenses                                                      226                214                     12
Interest expense                                                               42                 45                     (3)
Collateral finance and securitization expense                                   1                  3                     (2)
Total benefits and expenses                                                 3,990              3,933                     57
 Income (loss) before income taxes                                            (60)               186                   (246)
Provision for income taxes                                                      3                 47                    (44)
Net income (loss)                                                       $     (63)         $     139          $        (202)
Earnings per share:
Basic earnings per share                                                $   (0.93)         $    2.04          $       (2.97)
Diluted earnings per share                                              $   

(0.93) $ 2.03 $ (2.96)

The decrease in income for the three months ended March 31, 2022, was primarily
the result of:

•As discussed in the "Impacts of the COVID-19 Pandemic" above, the Company
estimates it has incurred approximately $315 million, pre-tax, of COVID-19
related life and health claim costs, including amounts incurred but not
reported, with approximately $272 million, pre-tax, in the U.S. and Latin
America segment.

•Changes in the fair value of embedded derivatives, associated with modco/funds
withheld treaties, decreased investment related gains by $33 million for the
three month period ended March 31 2022, compared to an increase of $50 million
for the three month period ended March 31, 2021.

•$25 million, pre-tax, of net realized losses, included in investment related
gains (losses), net associated with portfolio repositioning compared to $154
million of net realized gains recognized in the prior year.

Foreign currency fluctuations can result in variances in the financial statement
line items. Foreign currency exchange fluctuation increased income before taxes
for the three months ended March 31, 2022 by $6 million primarily due to a
weakening of the Japanese Yen compared to the U.S. dollar. Unless otherwise
stated, all amounts discussed below are net of foreign currency fluctuations.

Premiums and business growth

The increase in premiums is primarily due to an increase in new business
production, measured by the face amount of life reinsurance in force, of $119.4
billion and $77.9 billion during the three months ended March 31, 2022 and 2021,
respectively. Consolidated assumed life reinsurance in force increased to
$3,495.1 billion as of March 31, 2022, from $3,428.6 billion as of March 31,
2021, due to new business production offset by lapses and mortality claims.

Net investment income and investment related gains (losses), net

Net investment income is consistent with the comparable period in 2021 as an
increase in the average invested asset base was offset by a decrease in yield:

•The average invested assets at amortized cost, excluding spread related
business, totaled $35.3 billion and $33.4 billion in 2022 and 2021,
respectively.

•The average yield earned on investments, excluding spread related business, was
5.29% and 5.67% for the three-month periods ended March 31, 2022 and 2021,
respectively.

•Investment income, net for the three-months ended March 31, 2021, benefited
from a one-time adjustment of approximately $92 million, pre-tax, to correct the
accounting for unrealized gains on certain limited partnerships, for
                                       39

--------------------------------------------------------------------------------

Table of Contents

which the Company uses the equity method of accounting, from AOCI to net
investment income. The unrealized gains should have been recognized directly in
net investment income in the same prior periods they were reported as earnings
by the investees.

The average yield will vary from period to period depending on several
variables, including the prevailing risk-free interest rate and credit spread
environment, prepayment fees and make-whole premiums, changes in the mix of the
underlying investments and cash and cash equivalents balances. Variable
investment income from joint ventures and limited partnerships will also vary
from period to period and is highly dependent on the timing of dividends and
distributions on certain investments. Investment income is allocated to the
operating segments based upon average assets and related capital levels deemed
appropriate to support segment operations.

The decrease in investment related gains (losses), net is primarily attributable
to the following:

•During the three months ended March 31, 2022, the Company repositioned select
investment portfolios generating net realized losses of $25 million compared to
net realized gains of $154 million during the first three months of 2021.

•Changes in the fair value of embedded derivatives, associated with modco/funds
withheld treaties, decreased investment related gains (losses), net by $33
million for the three month period ended March 31 2022, compared to an increase
of $50 million for the three month period ended March 31, 2021.

•The Company uses various derivative instruments such as interest rate swaps,
credit default swaps and foreign exchange forwards for risk management purposes
that either do not qualify or have not been elected for hedge accounting
treatment. Changes in the fair value of these instruments are included in
investment related gains (losses), net. During the three months period ended
March 31, 2022, the fair value of these instruments decreased by $90 million,
compared to a decrease of $51 million during the first three months of 2021. See
Note 5 - "Derivative Instruments" in the Notes to Condensed Consolidated
Financial Statements for additional information.

•During the three months ended March 31, 2022, the Company incurred $12 million
of impairments and change in allowance for credit losses on fixed maturity
securities compared to $2 million during the first three months of 2021.

•Investment related gains (losses), net, for the first three months of 2021
included an adjustment to investments in limited partnerships considered to be
investment companies, which should have been recognized in prior periods, of $70
million pre-tax to adjust the carrying value from cost less impairments to the
fair value approach, using the net asset value ("NAV") per share or its
equivalent.

The effective tax rate on a consolidated basis was 3.7% tax rate expense on a
pre-tax loss for the three months ended March 31, 2022, and 25.3% tax rate
expense on pre-tax income for the three months ended March 31, 2021,
respectively. See Note 9 - "Income Tax" in the Notes to Condensed Consolidated
Financial Statements for additional information on the Company's consolidated
effective tax rate.

Impact of certain derivatives

The Company recognizes in consolidated income, any changes in the fair value of
embedded derivatives on modco or funds withheld treaties, equity index annuities
("EIAs") and variable annuities with guaranteed minimum benefit riders. The
Company utilizes freestanding derivatives to minimize the income statement
volatility due to changes in the fair value of embedded derivatives associated
with guaranteed minimum benefit riders. The following table presents the effect
of embedded derivatives and related freestanding derivatives on income before
income taxes for the periods indicated (dollars in millions):

                                                                         

Three months ended March 31,

                                                                2022               2021             2022 vs. 2021
Modco/Funds withheld:
Unrealized gains (losses)                                   $      (33)         $     50          $          (83)
Deferred acquisition costs/retrocession                             19               (17)                     36
Net effect                                                         (14)               33                     (47)
EIAs:
Unrealized gains (losses)                                           17                29                     (12)
Deferred acquisition costs/retrocession                             (7)              (15)                      8
Net effect                                                          10                14                      (4)
Guaranteed minimum benefit riders:
Unrealized gains (losses)                                           14                19                      (5)
Related freestanding derivatives, net of deferred
acquisition costs costs/retrocession                               (29)              (54)                     25
Net effect                                                         (15)              (35)                     20
Total net effect after freestanding derivatives             $      (19)     

$ 12 $ (31)

                                       40

--------------------------------------------------------------------------------

Table of Contents

Results of Operations by Segment

U.S. and Latin America Operations

The U.S. and Latin America operations consist of two major segments: Traditional
and Financial Solutions. The Traditional segment primarily specializes in the
reinsurance of individual mortality-risk, health and long-term care and to a
lesser extent, group reinsurance. The Financial Solutions segment consists of
Asset-Intensive and Capital Solutions. Asset-Intensive within the Financial
Solutions segment includes coinsurance of annuities and corporate-owned life
insurance policies and to a lesser extent, fee-based synthetic guaranteed
investment contracts, which include investment-only, stable value contracts.
Capital Solutions within the Financial Solutions segment primarily involves
assisting ceding companies in meeting applicable regulatory requirements by
enhancing the ceding companies' financial strength and regulatory surplus
position through relatively low risk reinsurance and other transactions.
Typically, these transactions do not qualify as reinsurance under GAAP, due to
the low-risk nature of the transactions, therefore only the related net fees are
reflected in other revenues on the condensed consolidated statements of income.

The following table summarizes income before income taxes for the Company's U.S.
and Latin America operations for the periods presented:

For the three months ended March 31,
(dollars in millions)                                           2022              2021             2022 vs 2021
Revenues:
Net premiums                                                 $  1,556          $  1,432          $         124
Net investment income                                             567               465                    102
Investment related gains (losses), net                            (65)                -                    (65)
Other revenues                                                     61                58                      3
Total revenues                                                  2,119             1,955                    164
Benefits and expenses:
Claims and other policy benefits                                1,813             1,800                     13
Interest credited                                                 124               131                     (7)
Policy acquisition costs and other insurance expenses             249               231                     18
Other operating expenses                                           55                48                      7
Total benefits and expenses                                     2,241             2,210                     31
Income (loss) before income taxes                            $   (122)      

$ (255) $ 133

The decrease in loss before income taxes was the result of increases in net
premiums and net investment income in the U.S. Traditional segment. The decrease
in losses was partially offset by a decrease in investment related gains
(losses), net.

                                       41

--------------------------------------------------------------------------------

Table of Contents

Traditional Reinsurance

For the three months ended March 31,
(dollars in millions)                                               2022                     2021                2022 vs 2021
Revenues:
Net premiums                                                 $        1,541           $        1,419           $         122
Net investment income                                                   304                      207                      97
Investment related gains (losses), net                                   15                        6                       9
Other revenues                                                            7                        5                       2
Total revenues                                                        1,867                    1,637                     230
Benefits and expenses:
Claims and other policy benefits                                      1,765                    1,740                      25
Interest credited                                                        17                       17                       -
Policy acquisition costs and other insurance expenses                   208                      182                      26
Other operating expenses                                                 43                       36                       7
Total benefits and expenses                                           2,033                    1,975                      58
Income (loss) before income taxes                            $         

(166) $ (338) $ 172
Key metrics:
Life reinsurance in force

                                      $1,645.1 

billion $1,610.2 billion
Claims and other policy benefits as a percentage of
net premiums ("loss ratios")

                                          114.5   %                122.6   %

Policy acquisition costs and other insurance expenses
as a percentage of net premiums

                                        13.5   %                 12.8   %
Other operating expenses as a percentage of net
premiums                                                                2.8   %                  2.5   %

The decrease in loss before income taxes for the U.S. and Latin America
Traditional segment was primarily due to improved claims experience of $70
million within the Individual Mortality line of business, as well as higher net
investment income.

Revenues

•The increase in net premiums was primarily due to organic growth as well as $46
million of new business, $45 million related to the restructuring of a
transaction that was previously recognized as a low risk transaction or deposit
accounting in Latin America and $31 million related to the partial recapture of
a large reinsurance transaction, which had been retroceded to another reinsurer,
in the second quarter of 2021. The segment added new life business production,
measured by face amount of life reinsurance in force, of $39.5 billion and $28.5
billion during the three months ended March 31, 2022 and 2021, respectively.

•The increase in net investment income was primarily due to an increase in
variable investment income associated with investments in real estate joint
ventures and an increase in realized gains associated with investments in
limited partnerships and private equity funds.

Benefits and expenses

•The decrease in the loss ratio for the three months ended March 31, 2022, as
compared to the same period in 2021, was primarily due to favorable non-COVID-19
experience, mainly within the Individual Mortality line of business. Although
global COVID-19 related deaths have begun to decline, the U.S. and Latin America
segment continued to experience increased claim costs as result of COVID-19
during the period. While the cause of death is not yet available for all claims,
the Company estimates that approximately $272 million of claims for the three
months ended March 31, 2022, were attributable to COVID-19.

•The increase in policy acquisition costs and other insurance expenses as a
percentage of net premiums is primarily attributable to the restructure of a
transaction in Latin America.


                                       42

--------------------------------------------------------------------------------

Table of Contents

Financial Solutions

For the three months ended March
31,                                                           2022                                                             2021                                                        2022 vs 2021
                                                                 Capital                                                          Capital                                                         Capital
                                     Asset-Intensive            Solutions            Total            Asset-Intensive            Solutions            Total           Asset-Intensive            Solutions            Total

(dollars in millions)
Revenues:
Net premiums                       $             15          $          -          $    15          $             13          $          -          $    13          $             2          $          -          $    2
Net investment income                           262                     1              263                       257                     1              258                        5                     -               5
Investment related gains (losses),
net                                             (80)                    -              (80)                       (6)                    -               (6)                     (74)                    -             (74)
Other revenues                                   27                    27               54                        26                    27               53                        1                     -               1
Total revenues                                  224                    28              252                       290                    28              318                      (66)                    -             (66)
Benefits and expenses:
Claims and other policy benefits                 48                     -               48                        60                     -               60                      (12)                    -             (12)
Interest credited                               107                     -              107                       114                     -              114                       (7)                    -              (7)
Policy acquisition costs and other
insurance expenses                               40                     1               41                        47                     2               49                       (7)                   (1)             (8)
Other operating expenses                          9                     3               12                         9                     3               12                        -                     -               -
Total benefits and expenses                     204                     4              208                       230                     5              235                      (26)                   (1)            (27)
Income before income taxes         $             20          $         24          $    44          $             60          $         23          $    83          $           (40)         $          1          $  (39)

Asset-Intensive Reinsurance

The decrease in income before income taxes for the U.S. and Latin America
Financial Solutions Asset-Intensive segment was primarily due to higher
investment related losses, net in coinsurance portfolios and the decrease in
fair value of the embedded derivatives related to modco/funds withheld treaties.

The invested asset base supporting this segment increased to $23.7 billion as of
March 31, 2022, from $23.2 billion as of March 31, 2021.

•The increase in the asset base was primarily due to $3.2 billion of new
transactions, partially offset by $1.6 billion of retrocessions competed in the
second half of 2021, and $1.1 billion of net run off in existing inforce blocks.

•As of March 31, 2022 and 2021, $4.4 billion and $3.2 billion, respectively, of
the invested assets were funds withheld at interest, of which greater than 90%
was associated with two clients.

Impact of certain derivatives

Income from the asset-intensive business tends to be volatile due to changes in
the fair value of certain derivatives, including embedded derivatives associated
with reinsurance treaties structured on a modco or funds withheld basis, as well
as embedded derivatives associated with the Company's reinsurance of EIAs and
variable annuities with guaranteed minimum benefit riders. Fluctuations occur
period to period primarily due to changing investment conditions including, but
not limited to, interest rate movements (including risk-free rates and credit
spreads), implied volatility, the Company's own credit risk and equity market
performance, all of which are factors in the calculations of fair value.
Therefore, management believes it is helpful to distinguish between the effects
of changes in these derivatives, net of related hedging activity, and the
primary factors that drive profitability of the underlying treaties, namely
investment income, fee income (included in other revenues), and interest
credited. These fluctuations are considered unrealized by management and do not
affect current cash flows, crediting rates or spread performance on the
underlying treaties.

The following table summarizes the asset-intensive results and quantifies the
impact of these embedded derivatives for the periods presented. Revenues before
certain derivatives, benefits and expenses before certain derivatives, and
income before income taxes and certain derivatives should not be viewed as
substitutes for GAAP revenues, GAAP benefits and expenses, and GAAP income
before income taxes.

                                       43

--------------------------------------------------------------------------------

  Table of Contents

                                                                              Three months ended
(dollars in millions)                                                             March 31,
                                                                                        2022              2021
Revenues:
Total revenues                                                                       $    224          $    290
Less:
Embedded derivatives - modco/funds withheld treaties                                      (49)               44

Guaranteed minimum benefit riders and related free standing
derivatives

                                                                               (22)              (64)
Revenues before certain derivatives                                                       295               310
Benefits and expenses:
Total benefits and expenses                                                               204               230
Less:
Embedded derivatives - modco/funds withheld treaties                                      (20)               17

Guaranteed minimum benefit riders and related free standing
derivatives

                                                                                (7)              (29)
Equity-indexed annuities                                                                  (10)              (14)
Benefits and expenses before certain derivatives                                          241               256
Income before income taxes:
Income (loss) before income taxes                                                          20                60

Less:

Embedded derivatives - modco/funds withheld treaties                                      (29)               27

Guaranteed minimum benefit riders and related free standing
derivatives

                                                                               (15)              (35)
Equity-indexed annuities                                                                   10                14
Income before income taxes and certain derivatives                          

$ 54 $ 54

Embedded Derivatives - Modco/Funds Withheld Treaties - Represents the change in
the fair value of embedded derivatives on funds withheld at interest associated
with treaties written on a modco or funds withheld basis. The fair value changes
of these embedded derivatives are reflected in revenues, while the related
impact on deferred acquisition expenses is reflected in benefits and expenses.
The Company's utilization of a credit valuation adjustment did not have a
material effect on the change in fair value of these embedded derivatives for
the three months ended March 31, 2022 and 2021.

The change in fair value of the embedded derivatives related to modco/funds
withheld treaties, net of deferred acquisition costs increased (decreased)
income before income taxes by $(29) million and $27 million for the three months
ended March 31, 2022 and 2021, respectively. The decrease in revenue for the
three months ended March 31, 2022, was due to higher interest rates of $(31)
million and $(26) million of widening credit spreads during the three months
ended March 31, 2022, compared to the prior period.

Guaranteed Minimum Benefit Riders - Represents the impact related to guaranteed
minimum benefits associated with the Company's reinsurance of variable
annuities. The fair value changes of the guaranteed minimum benefits along with
the changes in fair value of the free standing derivatives (interest rate swaps,
financial futures and equity options), purchased by the Company to substantially
hedge the liability are reflected in revenues, while the related impact on
deferred acquisition expenses is reflected in benefits and expenses. The change
in fair value of the embedded derivatives on guaranteed minimum benefits are net
of a decrease in investment related gains (losses), net of $13 million and $55
million for the three months ended March 31, 2022 and 2021, respectively,
associated with the Company's utilization of a credit valuation adjustment.

The change in fair value of the guaranteed minimum benefits, after allowing for
changes in the associated free standing derivatives, decreased income before
income taxes by $15 million and $35 million for the three months ended March 31,
2022 and 2021, respectively. The decrease in income for the three months ended
March 31, 2022, was primarily due to the $13 million reduction in the credit
valuation adjustment which has the impact of increasing the fair value of the
guaranteed minimum benefit liability.

Equity-Indexed Annuities - Represents changes in the liability for
equity-indexed annuities in excess of changes in account value, after
adjustments for related deferred acquisition expenses. The change in fair value
of embedded derivative liabilities associated with equity-indexed annuities
increased income before income taxes by $10 million and $14 million for the
three months ended March 31, 2022 and 2021, respectively. The increase in income
for the three months ended March 31, 2022, was due to an increase in risk free
interest rates which has the impact of lowering the fair value of the liability.


                                       44

--------------------------------------------------------------------------------

Table of Contents

The changes in derivatives discussed above are considered unrealized by
management and do not affect current cash flows, crediting rates or spread
performance on the underlying treaties. Fluctuations occur period to period
primarily due to changing investment conditions including, but not limited to,
interest rate movements (including benchmark rates and credit spreads), credit
valuation adjustments, implied volatility and equity market performance, all of
which are factors in the calculations of fair value. Therefore, management
believes it is helpful to distinguish between the effects of changes in these
derivatives and the primary factors that drive profitability of the underlying
treaties, namely investment income, fee income (included in other revenues) and
interest credited.

Discussion and analysis before certain derivatives

•Income before income taxes and certain derivatives was consistent for the three
months ended March 31, 2022, as compared to the same period in 2021.

•Revenue before certain derivatives decreased by $15 million for the three
months ended March 31, 2022, as compared to the same period in 2021. The
decrease in the first quarter of 2022 was primarily due to $(33) million change
in fair value of equity options associated with the reinsurance of EIAs,
partially offset by a $10 million increase in investment income associated with
a funds withheld transaction which is retroceded to a third party. Both of these
items are substantially offset by a corresponding change in interest credited
and other insurance expenses, respectively.

•Benefits and expenses before certain derivatives decreased by $15 million for
the three months ended March 31, 2022, as compared to the same period in 2021.
The decrease in the current quarter was primarily due to $(29) million higher
interest credited associated with the reinsurance of EIAs, partially offset by
$10 million increase in other insurance expenses related to a funds withheld
transaction which is retroceded to a third party.

Capital Solutions

Income before income taxes for the U.S. and Latin America Capital Solutions'
business for the three months ended March 31, 2022, increased slightly compared
to the three months ended March 31, 2021. Fees earned from this business can
vary significantly depending on the size of the transactions and the timing of
their completion and therefore can fluctuate from period to period.

•As of March 31, 2022 and 2021, the amount of reinsurance assumed from client
companies, as measured by pre-tax statutory surplus, risk based capital and
other financial structures was $23.3 billion and $22.0 billion, respectively.

Canada Operations
The Company conducts reinsurance business in Canada primarily through RGA
Canada, which assists clients with capital management activity and mortality and
morbidity risk management. The Canada operations are primarily engaged in
Traditional reinsurance, which consists mainly of traditional individual life
reinsurance, and to a lesser extent creditor, group life and health, critical
illness and disability reinsurance. Creditor insurance covers the outstanding
balance on personal, mortgage or commercial loans in the event of death,
disability or critical illness and is generally shorter in duration than
traditional individual life insurance. The Canada Financial Solutions segment
consists of longevity and capital solutions.

For the three months ended March 31,
(dollars in millions)                                         2022       2021       2022 vs 2021
Revenues:
Net premiums                                                 $ 327      $ 303      $          24
Net investment income                                           56         60                 (4)
Investment related gains (losses), net                           1          2                 (1)
Other revenues                                                   3          4                 (1)
Total revenues                                                 387        369                 18
Benefits and expenses:
Claims and other policy benefits                               311        284                 27
Interest credited                                                -          -                  -
Policy acquisition costs and other insurance expenses           47         45                  2
Other operating expenses                                        10         10                  -
Total benefits and expenses                                    368        339                 29
Income (loss) before income taxes                            $  19      $  

30 $ (11)

•The decrease in income before income taxes for the three months ended March 31,
2022, as compared to the same period in 2021, is primarily due to unfavorable
claims experience in the individual mortality line of business and lower
investment income, partially offset by favorable claims experience in the group
life and health line of business and favorable longevity experience.

                                       45

--------------------------------------------------------------------------------

Table of Contents

•While foreign currency fluctuations can result in variances in the financial
statement line items, fluctuation in the Canadian dollar did not result in a
material change in income before income taxes for the three months ended
March 31, 2022. Unless otherwise stated, all amounts discussed below are net of
foreign currency fluctuations.

Traditional Reinsurance

For the three months ended March 31,
(dollars in millions)                                              2022                   2021               2022 vs 2021
Revenues:
Net premiums                                                 $         304          $         280          $          24
Net investment income                                                   55                     60                     (5)
Investment related gains (losses), net                                   1                      2                     (1)
Other revenues                                                           2                      1                      1
Total revenues                                                         362                    343                     19
Benefits and expenses:
Claims and other policy benefits                                       300                    266                     34
Interest credited                                                        -                      -                      -
Policy acquisition costs and other insurance expenses                   46                     45                      1
Other operating expenses                                                10                      8                      2
Total benefits and expenses                                            356                    319                     37
Income (loss) before income taxes                            $           6          $          24          $         (18)
Key metrics:
Life reinsurance in force                                      $484.5 

billion $460.1 billion
Claims and other policy benefits as a percentage of
net premiums ("loss ratios")

                                          98.7  %                95.0  %

Policy acquisition costs and other insurance expenses
as a percentage of net premiums

                                       15.1  %                16.1  %
Other operating expenses as a percentage of net
premiums                                                               3.3  %                 2.9  %

The decrease in income before income taxes for the three months ended March 31,
2022, is primarily due to unfavorable claims experience in the individual
mortality line of business and lower investment income, partially offset by
favorable claims experience in the group life and health line of business.

Revenues

•The segment added new life business production, measured by face amount of life
reinsurance in force, of $12.7 billion, and $14.2 billion during the first three
months of 2022 and 2021, respectively.

•The decrease in net investment income was primarily due to decreased variable
investment income, partially offset by an increase in the invested asset base.

Benefits and expenses

•The increase in the loss ratio for the three months ended March 31, 2022, as
compared to the same period in 2021, was primarily due to unfavorable claims
experience in the individual mortality line of business. While the cause of
death is not yet available for all claims, the Company estimates that
approximately $20 million of claims for the three months ended March 31, 2022,
were attributable to COVID-19 related factors.

Financial Solutions

For the three months ended March 31,
(dollars in millions)                                         2022      2021      2022 vs 2021
Revenues:
Net premiums                                                 $ 23      $ 23      $          -
Net investment income                                           1         -                 1
Investment related gains (losses), net                          -         -                 -
Other revenues                                                  1         3                (2)
Total revenues                                                 25        26                (1)
Benefits and expenses:
Claims and other policy benefits                               11        18                (7)
Interest credited                                               -         -                 -
Policy acquisition costs and other insurance expenses           1         -                 1
Other operating expenses                                        -         2                (2)
Total benefits and expenses                                    12        20                (8)
Income (loss) before income taxes                            $ 13      $  6 

$ 7

                                       46

--------------------------------------------------------------------------------

Table of Contents

The increase in income before income taxes was primarily a result of more
favorable mortality experience on longevity business for the three months ended
March 31, 2022, as compared to the same period in 2021.

Europe, Middle East and Africa Operations

The Europe, Middle East and Africa ("EMEA") operations include business
primarily generated by offices in France, Germany, Ireland, Italy, the Middle
East, the Netherlands, Poland, South Africa, Spain and the United Kingdom
("UK"). EMEA consists of two major segments: Traditional and Financial
Solutions. The Traditional segment primarily provides reinsurance through yearly
renewable term and coinsurance agreements on a variety of life, health and
critical illness products. Reinsurance agreements may be facultative or
automatic agreements covering primarily individual risks and, in some markets,
group risks. The Financial Solutions segment consists of reinsurance and other
transactions associated with longevity closed blocks, payout annuities, capital
management solutions and financial reinsurance.

For the three months ended March 31,
(dollars in millions)                                         2022       2021       2022 vs 2021
Revenues:
Net premiums                                                 $ 579      $ 517      $         62
Net investment income                                           57         68               (11)
Investment related gains (losses), net                          16         16                 -
Other revenues                                                   6          2                 4
Total revenues                                                 658        603                55
Benefits and expenses:
Claims and other policy benefits                               518        544               (26)
Interest credited                                               (9)        (1)               (8)
Policy acquisition costs and other insurance expenses           26         31                (5)
Other operating expenses                                        44         37                 7
Total benefits and expenses                                    579        611               (32)
Income (loss) before income taxes                            $  79      $  

(8) $ 87

•The increase in income before income taxes for the three months ended March 31,
2022, as compared to the same period in 2021, was primarily due to increased net
premiums, as well as improved mortality experience compared to the prior-year
quarter.

•Foreign currency fluctuations can result in variances in the financial
statement line items. Foreign currency fluctuations resulted in a $2 million
decrease in income before income taxes for the three months ended March 31,
2022. Unless otherwise stated, all amounts discussed below are net of foreign
currency fluctuations.

Traditional Reinsurance

For the three months ended March 31,
(dollars in millions)                                              2022                   2021              2022 vs 2021
Revenues:
Net premiums                                                 $         451          $         438          $         13
Net investment income                                                   22                     20                     2
Investment related gains (losses), net                                   -                      -                     -
Other revenues                                                           3                     (1)                    4
Total revenues                                                         476                    457                    19
Benefits and expenses:
Claims and other policy benefits                                       427                    469                   (42)
Interest credited                                                        -                      -                     -
Policy acquisition costs and other insurance expenses                   25                     29                    (4)
Other operating expenses                                                30                     27                     3
Total benefits and expenses                                            482                    525                   (43)
Income (loss) before income taxes                            $          (6)         $         (68)         $         62
Key metrics:
Life reinsurance in force                                      $850.7 

billion $830.8 billion
Claims and other policy benefits as a percentage of
net premiums ("loss ratios")

                                          94.7  %               107.1  %

Policy acquisition costs and other insurance expenses
as a percentage of net premiums

                                        5.5  %                 6.6  %
Other operating expenses as a percentage of net
premiums                                                               6.7  %                 6.2  %

The decrease in loss before income taxes for the three months ended March 31,
2022, as compared to the same period in 2021, was primarily due to an
improvement in individual life mortality experience and increased net premiums.

                                       47

--------------------------------------------------------------------------------

Table of Contents

Revenues

•The increase in net premiums was due to an increase in business volume on new
and existing treaties.

•The segment added new life business production, measured by face amount of life
reinsurance in force, of $50.5 billion and $27.6 billion during the three months
ended March 31, 2022, and the same period in 2021, respectively.

Benefits and expenses

•The decrease in the loss ratio for the first three months of 2022 is due to
improved mortality experience. While the cause of death is not available for all
claims, the Company estimates that approximately $10 million of claims for the
three months ended March 31, 2022, were attributable to COVID-19 related
factors.

Financial Solutions

For the three months ended March 31,
(dollars in millions)                                         2022       2021      2022 vs 2021
Revenues:
Net premiums                                                 $ 128      $ 79      $         49
Net investment income                                           35        48               (13)
Investment related gains (losses), net                          16        16                 -
Other revenues                                                   3         3                 -
Total revenues                                                 182       146                36
Benefits and expenses:
Claims and other policy benefits                                91        75                16
Interest credited                                               (9)       (1)               (8)
Policy acquisition costs and other insurance expenses            1         2                (1)
Other operating expenses                                        14        10                 4
Total benefits and expenses                                     97        86                11
Income (loss) before income taxes                            $  85      $ 

60 $ 25

The increase in income before income taxes for the first three months was
primarily due to new business growth and favorable longevity experience.

Revenues

•The increase in net premiums was primarily due to increased volumes of closed
block longevity transactions.

•The decrease in net investment income was primarily related to lower income
associated with unit-linked policies which fluctuate with market performance and
is offset by a decrease in interest credited.

Benefits and expenses

•The increase in claims and other policy benefits is the result of increased
production and continued growth in the segment's longevity block business.

•Interest credited in this segment relates to amounts credited to the contract
holders of unit-linked products. This amount will fluctuate according to
contract holder investment selections, equity returns and interest rates. The
effect on interest credited related to unit-linked products is substantially
offset by a corresponding change in investment income.

•The increase in operating expenses is due to an increase in transaction related
costs.

Asia Pacific Operations

The Asia Pacific operations include business generated by its offices
principally in Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand,
Singapore, South Korea and Taiwan. The Traditional segment's principal types of
reinsurance include individual and group life and health, critical illness,
disability and superannuation. Reinsurance agreements may be facultative or
automatic agreements covering primarily individual risks, and in some markets,
group risks. Superannuation is the Australian government mandated compulsory
retirement savings program. Superannuation funds accumulate retirement funds for
employees, and, in addition, typically offer life and disability insurance
coverage. The Financial Solutions segment includes financial reinsurance,
asset-intensive and certain disability and life blocks.

                                       48

--------------------------------------------------------------------------------

Table of Contents

For the three months ended March 31,
(dollars in millions)                                      2022       2021       2022 vs 2021
Revenues:
Net premiums                                              $ 693      $ 662      $          31
Net investment income                                        77         61                 16
Investment related gains (losses), net                      (81)        11                (92)
Other revenues                                               20         17                  3
Total revenues                                              709        751                (42)
Benefits and expenses:
Claims and other policy benefits                            583        564                 19
Interest credited                                            20         15                  5

Policy acquisition costs and other insurance expenses 59 54

                5
Other operating expenses                                     52         49                  3
Total benefits and expenses                                 714        682                 32
Income (loss) before income taxes                         $  (5)     $  69  

$ (74)

•The decrease in income before taxes as compared to the same period in 2021 was
primarily due to unfavorable fluctuations in the fair value of derivatives
within the Financial Solutions business, partially offset by favorable claims
experience in Asia and Australia.

•Foreign currency fluctuations can result in variances in the financial
statement line items. Foreign currency fluctuations resulted in an $8 million
increase in income before income taxes during the three months ended March 31,
2022. Unless otherwise stated, all amounts discussed below are net of foreign
currency fluctuations.

Traditional Reinsurance

For the three months ended March 31,
(dollars in millions)                                              2022                   2021              2022 vs 2021
Revenues:
Net premiums                                                 $         650          $         609          $         41
Net investment income                                                   33                     33                     -
Investment related gains (losses), net                                   -                     (1)                    1
Other revenues                                                           5                      6                    (1)
Total revenues                                                         688                    647                    41
Benefits and expenses:
Claims and other policy benefits                                       542                    518                    24
Interest credited                                                        -                      -                     -
Policy acquisition costs and other insurance expenses                   47                     43                     4
Other operating expenses                                                48                     45                     3
Total benefits and expenses                                            637                    606                    31
Income (loss) before income taxes                            $          51          $          41          $         10
Key metrics:
Life reinsurance in force                                      $508.4 

billion $521.0 billion
Claims and other policy benefits as a percentage of
net premiums ("loss ratios")

                                          83.4  %                85.1  %

Policy acquisition costs and other insurance expenses
as a percentage of net premiums

                                        7.2  %                 7.1  %
Other operating expenses as a percentage of net
premiums                                                               7.4  %                 7.4  %

The increase in income before income taxes is primarily the result of an
increase in net premiums, partially offset by increases in benefits and expenses
across the segment.

Revenues

•The increase in net premiums was primarily due to continued business growth in
the segment.

•The segment added new life business production, measured by face amount of life
reinsurance in force, of $16.6 billion and $7.6 billion during the three months
ended March 31, 2022 and 2021, respectively, due to new business production.




                                       49

--------------------------------------------------------------------------------

Table of Contents

Benefits and expenses

•The decrease in the loss ratio for the three months ended March 31, 2022, as
compared to the same period in 2021 was primarily due to increases in net
premiums in excess of unfavorable claims experience across the segment. While
the cause of death is not yet available for all claims, the Company estimates
that approximately $14 million of claims for the three months ended March 31,
2022, were attributable to COVID-19 related factors.

Financial Solutions

For the three months ended March 31,
(dollars in millions)                                         2022       2021      2022 vs 2021
Revenues:
Net premiums                                                 $  43      $ 53      $         (10)
 Net investment income                                          44        28                 16
Investment related gains (losses), net                         (81)       12                (93)
Other revenues                                                  15        11                  4
Total revenues                                                  21       104                (83)
Benefits and expenses:
Claims and other policy benefits                                41        46                 (5)
Interest credited                                               20        15                  5
Policy acquisition costs and other insurance expenses           12        11                  1
Other operating expenses                                         4         4                  -
Total benefits and expenses                                     77        76                  1
Income (loss) before income taxes                            $ (56)     $ 

28 $ (84)

The decrease in income before income taxes is primarily due to unfavorable
fluctuations in the fair value of derivatives. The invested asset base
supporting asset-intensive transactions increased to $10.3 billion as of March
31, 2022 from $6.6 billion as of March 31, 2021. The increase in the asset base
compared to March 31, 2021, was primarily due to $3.3 billion from recently
executed transactions and net organic growth of $0.4 billion from existing
inforce blocks. The amount of reinsurance assumed from client companies, as
measured by pre-tax statutory surplus, risk based capital and other financial
reinsurance structures was $1.3 billion and $1.6 billion for the three months
ended March 31, 2022 and 2021, respectively. Fees earned from this business can
vary significantly depending on the size, complexity and timing of the
transactions and, therefore, can fluctuate from period to period.

Revenues

•The decrease in net premiums is attributable to a lower contribution from
single premium asset-intensive transactions of $8 million for the three months
ended March 31, 2022, as compared to the same period in 2021.

•The increase in net investment income is due to the increase in the asset base.

•The decrease in investment related gains (losses), net is primarily due to
unfavorable fluctuations in the fair value of credit derivatives of $(78)
million due to widening credit spreads.

Corporate and Other

Corporate and Other revenues primarily include investment income from
unallocated invested assets, investment related gains and losses and service
fees. Corporate and Other expenses consist of the offset to capital charges
allocated to the operating segments within the policy acquisition costs and
other insurance income line item, unallocated overhead and executive costs,
interest expense related to debt, and the investment income and expense
associated with the Company's collateral finance and securitization transactions
and service business expenses. Additionally, Corporate and Other includes
results from certain wholly-owned subsidiaries, such as RGAX, and joint ventures
that, among other activities, develop and market technology, and provide
consulting and outsourcing solutions for the insurance and reinsurance
industries. The Company continues to invest in this area in an effort to both
support its clients and accelerate the development of new solutions and services
to increase consumer engagement within the life insurance industry and hence
generate new future revenue streams.

                                       50

--------------------------------------------------------------------------------

Table of Contents

For the three months ended March 31,
(dollars in millions)                                                   2022       2021       2022 vs 2021
Revenues:
Net premiums                                                           $   -      $   -      $          -
Net investment income                                                     53        158              (105)
Investment related gains (losses), net                                     3        273              (270)
Other revenues                                                             1         10                (9)
Total revenues                                                            57        441              (384)
Benefits and expenses:
Claims and other policy benefits                                           -          -                 -
Interest credited                                                          6          1                 5
Policy acquisition costs and other insurance income                      (26)       (28)                2
Other operating expenses                                                  65         70                (5)
Interest expense                                                          42         45                (3)
Collateral finance and securitization expense                              1          3                (2)
Total benefits and expenses                                               88         91                (3)
Loss before income taxes                                               $ (31)     $ 350      $       (381)

The decrease in income before income taxes is primarily due to a decrease in
total revenues attributable to the following:

•The decrease in net investment income is primarily due to a one-time adjustment
recorded in the prior period of $92 million of pre-tax unrealized gains on
certain limited partnerships, for which the Company uses the equity method of
accounting, from AOCI to net investment income. The unrealized gains should have
been recognized directly in net investment income in the same prior periods they
were reported as earnings by the investees. The remaining decrease is
attributable to lower investment income on Corporate invested assets primarily
due to a lower yield.

•The decrease in investment related gains (losses), net is attributable to
losses on sales of fixed maturity securities in the first three months of 2022
of $18 million compared to gains of $144 million for the prior year, lower
unrealized gains on limited partnerships and changes in allowances and
impairments on mortgage loans and available for sale securities. In addition,
investment related gains (losses), net, for the first three months of 2021
includes an adjustment to investments in limited partnerships considered to be
investment companies, which should have been recognized in prior periods, of $70
million to adjust the carrying value from cost less impairments to the fair
value approach, using the net asset value ("NAV") per share or its equivalent.

Liquidity and Capital Resources

Overview

The Company believes that cash flows from the source of funds available to it
will provide sufficient cash flows for the next twelve months to satisfy the
current liquidity requirements of the Company under various scenarios that
include the potential risk of early recapture of reinsurance treaties, market
events and higher than expected claims associated with COVID-19. The Company is
currently holding higher cash and cash equivalents levels in response to
COVID-19. The Company performs periodic liquidity stress testing to ensure its
asset portfolio includes sufficient high quality liquid assets that could be
utilized to bolster its liquidity position under stress scenarios. These assets
could be utilized as collateral for secured borrowing transactions with various
third parties or by selling the securities in the open market if needed. The
Company's liquidity requirements have been and will continue to be funded
through net cash flows from operations. However, in the event of significant
unanticipated cash requirements beyond normal liquidity needs, the Company has
multiple liquidity alternatives available based on market conditions and the
amount and timing of the liquidity need. These alternatives include the sale of
invested assets subject to market conditions, borrowings under committed credit
facilities, secured borrowings, and if necessary issuing long-term debt,
preferred securities or common equity.

Current Market Environment

The Company's average investment yield, excluding spread related business, for
the three months ended March 31, 2022, was 5.29%, 38 basis points below the same
period in 2021 due to lower variable investment income. The Company's insurance
liabilities, in particular its annuity products, are sensitive to changing
market factors. Gross unrealized gains on fixed maturity securities
available-for-sale decreased from $5.3 billion at December 31, 2021, to $2.2
billion at March 31, 2022, due to tightening credit spreads. Additionally, gross
unrealized losses increased from $0.3 billion at December 31, 2021, to $2.1
billion at March 31, 2022.

                                       51

--------------------------------------------------------------------------------

Table of Contents

The Company continues to be in a position to hold any investment security
showing an unrealized loss until recovery, provided it remains comfortable with
the credit of the issuer. The Company does not rely on short-term funding or
commercial paper and to date it has experienced no liquidity pressure, nor does
it anticipate such pressure in the foreseeable future.

The Company projects its reserves to be sufficient, and it would not expect to
write down deferred acquisition costs or be required to take any actions to
augment capital, even if interest rates remain at current levels for the next
five years, assuming all other factors remain constant. While the Company has
felt the pressures of sustained low interest rates and volatile equity markets
and may continue to do so, its business and results of operations are not overly
sensitive to these risks. Mortality and morbidity risks continue to be the most
significant risk for the Company. Although management believes the Company's
current capital base is adequate to support its business at current operating
levels, it continues to monitor new business opportunities and any associated
new capital needs that could arise from the changing financial landscape.

The Holding Company

RGA is an insurance holding company whose primary uses of liquidity include, but
are not limited to, the immediate capital needs of its operating companies,
dividends paid to its shareholders, repurchase of common stock and interest
payments on its indebtedness. The primary sources of RGA's liquidity include
proceeds from its capital-raising efforts, interest income on undeployed
corporate investments, interest income received on surplus notes with RGA
Reinsurance Company ("RGA Reinsurance"), Reinsurance Company of Missouri,
Incorporated ("RCM") and Rockwood Reinsurance Company ("Rockwood Re") and
dividends from operating subsidiaries. As the Company continues its growth
efforts, RGA will continue to be dependent upon these sources of liquidity. The
following tables provide comparative information for RGA (dollars in millions):

                                                     Three months ended March 31,
                                                                                2022      2021
Interest expense                                                               $ 41      $ 52
Capital contributions to subsidiaries                                             7         4
Dividends to shareholders                                                        49        48
Purchase of common stock                                                         25         -
Interest and dividend income                                                    108        32


                                           March 31, 2022       December 31, 2021
Cash and invested assets                  $           511      $              621

See Item 15, Schedule II - "Condensed Financial Information of the Registrant"
in the 2021 Annual Report for additional financial information related to RGA.

The undistributed earnings of substantially all of the Company's foreign
subsidiaries have been reinvested indefinitely in those non-U.S. operations, as
described in Note 9 - "Income Tax" in the Notes to Consolidated Financial
Statements in the 2021 Annual Report. As U.S. Tax Reform generally eliminates
U.S. federal income taxes on dividends from foreign subsidiaries, the Company
does not expect to incur material income taxes if these funds are repatriated.

RGA endeavors to maintain a capital structure that provides financial and
operational flexibility to its subsidiaries, credit ratings that support its
competitive position in the financial services marketplace, and shareholder
returns. As part of the Company's capital deployment strategy, it has in recent
years repurchased shares of RGA common stock and paid dividends to RGA
shareholders, as authorized by the board of directors.

On January 24, 2019, RGA's board of directors authorized a share repurchase
program for up to $400 million of RGA's outstanding common stock. During the
three months ended March 31, 2022, RGA repurchased 219,116 shares of common
stock under this program for $25 million.

On February 25, 2022, RGA's board of directors authorized a share repurchase
program for up to $400 million of RGA's outstanding common stock. The
authorization was effective immediately and does not have an expiration date. In
connection with this authorization, the board of directors terminated the stock
repurchase authority granted in 2019. During the three months ended March 31,
2022, RGA did not repurchase any shares of common stock under this program.

The pace of repurchase activity depends on various factors such as the level of
available cash, an evaluation of the costs and benefits associated with
alternative uses of excess capital, such as acquisitions and in force
reinsurance transactions, and RGA's stock price.

                                       52

--------------------------------------------------------------------------------

Table of Contents

Details underlying dividend and share repurchase program activity were as
follows (in millions, except share data):

                                                  Three months ended March 31,
                                                         2022                      2021
Dividends to shareholders               $                 49                      $ 48
Purchase of common stock (1)                              25                         -
Total amount paid to shareholders       $                 74                

$ 48

Number of common shares purchased (1)                219,116                         -
Average price per share                 $             114.09                      $  -

(1)Excludes shares utilized to execute and settle certain stock incentive
awards.

In April 2022, RGA's board of directors declared a quarterly dividend of $0.73
per share. All future payments of dividends are at the discretion of RGA's board
of directors and will depend on the Company's earnings, capital requirements,
insurance regulatory conditions, operating conditions, and other such factors as
the board of directors may deem relevant. The amount of dividends that RGA can
pay will depend in part on the operations of its reinsurance subsidiaries. See
Note 3 - "Equity" in the Notes to Condensed Consolidated Financial Statements
for information on the Company's share repurchase program.

Debt

Certain of the Company's debt agreements contain financial covenant restrictions
related to, among others, liens, the issuance and disposition of stock of
restricted subsidiaries, minimum requirements of consolidated net worth, maximum
ratios of debt to capitalization and change of control provisions. The Company
is required to maintain a minimum consolidated net worth, as defined in the debt
agreements, of $5.3 billion, calculated as of the last day of each fiscal
quarter. Also, consolidated indebtedness, calculated as of the last day of each
fiscal quarter, cannot exceed 35% of the sum of the Company's consolidated
indebtedness plus adjusted RGA Inc's stockholders' equity. A material ongoing
covenant default could require immediate payment of the amount due, including
principal, under the various agreements. Additionally, the Company's debt
agreements contain cross-acceleration covenants, which would make outstanding
borrowings immediately payable in the event of a material uncured covenant
default under any of the agreements, including, but not limited to, non-payment
of indebtedness when due for an amount in excess of the amounts set forth in
those agreements, bankruptcy proceedings, or any other event that results in the
acceleration of the maturity of indebtedness.

As of March 31, 2022 and December 31, 2021, the Company had $3.7 billion, in
outstanding borrowings under its debt agreements and was in compliance with all
covenants under those agreements. As of March 31, 2022 and December 31, 2021,
the average interest rate on long-term debt outstanding was 4.42%. The ability
of the Company to make debt principal and interest payments depends on the
earnings and surplus of subsidiaries, investment earnings on undeployed capital
proceeds, available liquidity at the holding company, and the Company's ability
to raise additional funds.

The Company enters into derivative agreements with counterparties that reference
either the Company's debt rating or its financial strength rating. If either
rating is downgraded in the future, it could trigger certain terms in the
Company's derivative agreements, which could negatively affect overall
liquidity. For the majority of the Company's derivative agreements, there is a
termination event should the long-term senior debt ratings drop below either
BBB+ (S&P) or Baa1 (Moody's) or the financial strength ratings drop below either
A- (S&P) or A3 (Moody's).

The Company may borrow up to $850 million in cash and obtain letters of credit
in multiple currencies on its revolving credit facility that matures in August
2023. As of March 31, 2022, the Company had no cash borrowings outstanding and
$21 million in issued, but undrawn, letters of credit under this facility.

On December 13, 2021, RGA Reinsurance issued 4.00% Surplus Notes due in 2051,
with a face amount of $500 million. The net proceeds were approximately $494
million and will be used for general corporate purposes.

Based on the historic cash flows and the current financial results of the
Company, management believes RGA's cash flows will be sufficient to enable RGA
to meet its obligations for at least the next 12 months.

Credit and Committed Facilities

At March 31, 2022, the Company maintained an $850 million syndicated revolving
credit facility in addition to committed letter of credit facilities aggregating
$929 million. See Note 13 - "Debt" in the Notes to Consolidated Financial
Statements in the 2021 Annual Report for further information about these
facilities.

The Company has obtained bank letters of credit in favor of various affiliated
and unaffiliated insurance companies from which the Company assumes business.
These letters of credit represent guarantees of performance under the
reinsurance agreements and allow ceding companies to take statutory reserve
credits. Certain of these letters of credit contain financial covenant
restrictions similar to those described in the "Debt" discussion above. At
March 31, 2022, there were approximately $53 million

                                       53

--------------------------------------------------------------------------------

Table of Contents

of outstanding bank letters of credit in favor of third parties. Additionally,
in accordance with applicable regulations, the Company utilizes letters of
credit to secure statutory reserve credits when it retrocedes business to its
affiliated subsidiaries. The Company cedes business to its affiliates to help
reduce the amount of regulatory capital required in certain jurisdictions, such
as the U.S. and the UK. The Company believes the capital required to support the
business in the affiliates reflects more realistic expectations than the
original jurisdiction of the business, where capital requirements are often
considered to be quite conservative. As of March 31, 2022, $1.7 billion in
letters of credit from various banks were outstanding, but undrawn, backing
reinsurance between the various subsidiaries of the Company.

Cash Flows

The Company's principal cash inflows from its reinsurance operations include
premiums and deposit funds received from ceding companies. The primary liquidity
concerns with respect to these cash flows are early recapture of the reinsurance
contract by the ceding company and lapses of annuity products reinsured by the
Company. The Company's principal cash inflows from its invested assets result
from investment income and the maturity and sales of invested assets. The
primary liquidity concerns with respect to these cash inflows relates to the
risk of default by debtors and interest rate volatility. The Company manages
these risks very closely. See "Investments" below.

Additional sources of liquidity to meet unexpected cash outflows in excess of
operating cash inflows and current cash and equivalents on hand also includes
drawing funds under a revolving credit facility, under which the Company had
availability of $829 million as of March 31, 2022. The Company also has $742
million of funds available through collateralized borrowings from the FHLB as of
March 31, 2022. As of March 31, 2022, the Company could have borrowed these
additional amounts without violating any of its existing debt covenants.

The Company's principal cash outflows relate to the payment of claims
liabilities, interest credited, operating expenses, income taxes, dividends to
shareholders, purchases of treasury stock, and principal and interest under debt
and other financing obligations. The Company seeks to limit its exposure to loss
on any single insured and to recover a portion of benefits paid by ceding
reinsurance to other insurance enterprises or reinsurers under excess coverage
and coinsurance contracts (See Note 2 - "Significant Accounting Policies and
Pronouncements" in the Notes to Consolidated Financial Statements in the 2021
Annual Report). The Company performs annual financial reviews of its
retrocessionaires to evaluate financial stability and performance. The Company
has never experienced a material default in connection with retrocession
arrangements, nor has it experienced any difficulty in collecting claims
recoverable from retrocessionaires; however, no assurance can be given as to the
future performance of such retrocessionaires nor to the recoverability of future
claims. The Company's management believes its cash and cash equivalents along
with its current sources of liquidity are adequate to meet its cash requirements
for the next 12 months, despite the uncertainty associated with the pandemic.

Summary of Primary Sources and Uses of Liquidity and Capital

The Company's primary sources and uses of liquidity and capital are summarized
as follows:

                                                                                For the three months ended March
                                                                                               31,
                                                                                     2022                2021
                                                                                      (Dollars in millions)
Sources:
         Net cash provided by operating activities                              $       163          $   2,366

         Net deposits to investment-type policies and contracts                       1,864                  -
         Issuance of preferred interests by subsidiary                                   90                  -

         Total sources                                                                2,117              2,366

Uses:
         Net cash used in investing activities                                        2,235              2,492
         Dividends to stockholders                                                       49                 48
         Repayment of collateral finance and securitization notes                        14                 42
         Principal payments of long-term debt                                             1                  1
         Purchases of treasury stock                                                     27                  1
         Change in cash collateral for derivative positions and other
         arrangements                                                                     6                 25
         Change in deposit asset on reinsurance                                           3                  -
         Net withdrawals from investment-type policies and contracts                      -                 26
         Effect of exchange rate changes on cash                                         21                 17
         Total uses                                                                   2,356              2,652
Net change in cash and cash equivalents                                     

$ (239) $ (286)

Cash Flows from Operations - The principal cash inflows from the Company's
reinsurance activities come from premiums, investment and fee income, annuity
considerations and deposit funds. The principal cash outflows relate to the
liabilities associated with various life and health insurance, annuity and
disability products, operating expenses, income tax payments and

                                       54

--------------------------------------------------------------------------------

Table of Contents

interest on outstanding debt obligations. The primary liquidity concern with
respect to these cash flows is the risk of shortfalls in premiums and investment
income, particularly in periods with abnormally high claims levels.

Cash Flows from Investments - The principal cash inflows from the Company's
investment activities come from repayments of principal on invested assets,
proceeds from maturities of invested assets, sales of invested assets and
settlements of freestanding derivatives. The principal cash outflows relate to
purchases of investments, issuances of policy loans and settlements of
freestanding derivatives. The Company typically has a net cash outflow from
investing activities because cash inflows from insurance operations are
reinvested in accordance with its asset/liability management discipline to fund
insurance liabilities. The Company closely monitors and manages these risks
through its credit risk management process. The primary liquidity concerns with
respect to these cash flows are the risk of default by debtors and market
disruption, which could make it difficult for the Company to sell investments.

Financing Cash Flows - The principal cash inflows from the Company's financing
activities come from issuances of RGA debt and equity securities, and deposit
funds associated with universal life and other investment type policies and
contracts. The principal cash outflows come from repayments of debt, payments of
dividends to stockholders, purchases of treasury stock, and withdrawals
associated with universal life and other investment type policies and contracts.
A primary liquidity concern with respect to these cash flows is the risk of
early contractholder and policyholder withdrawal.

Contractual Obligations

There were no material changes in the Company's contractual obligations from
those reported in the 2021 Annual Report.

Asset / Liability Management

The Company actively manages its cash and invested assets using an approach that
is intended to balance quality, diversification, asset/liability matching,
liquidity and investment return. The goals of the investment process are to
optimize after-tax, risk-adjusted investment income and after-tax, risk-adjusted
total return while managing the assets and liabilities on a cash flow and
duration basis.

The Company has established target asset portfolios for its operating segments,
which represent the investment strategies intended to profitably fund its
liabilities within acceptable risk parameters. These strategies include
objectives and limits for effective duration, yield curve sensitivity and
convexity, liquidity, asset sector concentration and credit quality.

The Company's asset-intensive products are primarily supported by investments in
fixed maturity securities reflected on the Company's balance sheet and under
funds withheld arrangements with the ceding company. Investment guidelines are
established to structure the investment portfolio based upon the type, duration
and behavior of products in the liability portfolio so as to achieve targeted
levels of profitability. The Company manages the asset-intensive business to
provide a targeted spread between the interest rate earned on investments and
the interest rate credited to the underlying interest-sensitive contract
liabilities. The Company periodically reviews models projecting different
interest rate scenarios and their effect on profitability. Certain of these
asset-intensive agreements, primarily in the U.S. and Latin America Financial
Solutions operating segment, are generally funded by fixed maturity securities
that are withheld by the ceding company.

The Company's liquidity position (cash and cash equivalents and short term
investments) was $3.0 billion at March 31, 2022 and December 31, 2021,
respectively. Given the uncertainty associated with the COVID-19 pandemic and
the related volatility in the financial markets, the Company has increased its
liquidity position. Liquidity needs are determined from valuation analyses
conducted by operational units and are driven by product portfolios. Periodic
evaluations of demand liabilities and short-term liquid assets are designed to
adjust specific portfolios, as well as their durations and maturities, in
response to anticipated liquidity needs.

See "Securities Borrowing, Lending and Other" in Note 4 - "Investments" in the
Notes to Condensed Consolidated Financial Statements for information related to
the Company's securities borrowing, lending and repurchase/reverse repurchase
programs. In addition to its security agreements with third parties, certain
RGA's subsidiaries have entered into intercompany securities lending agreements
to more efficiently source securities for lending to third parties and to
provide for more efficient regulatory capital management.

The Company is a member of the FHLB and holds $58 million of FHLB common stock,
which is included in other invested assets on the Company's condensed
consolidated balance sheets. The Company has entered into funding agreements
with the FHLB under guaranteed investment contracts whereby the Company has
issued the funding agreements in exchange for cash and for which the FHLB has
been granted a blanket lien on the Company's commercial and residential
mortgage-backed securities and commercial mortgage loans used to collateralize
the Company's obligations under the funding agreements. The Company maintains
control over these pledged assets, and may use, commingle, encumber or dispose
of any portion of the collateral as long as there is no event of default and the
remaining qualified collateral is sufficient to satisfy the collateral
maintenance level. The funding agreements and the related security agreements
represented by this blanket lien provide that upon any event of default by the
Company, the FHLB's recovery is limited to the amount of the Company's liability
under the

                                       55

--------------------------------------------------------------------------------

Table of Contents

outstanding funding agreements. The amount of the Company's liability for the
funding agreements with the FHLB under guaranteed investment contracts was $1.1
billion and $1.4 billion at March 31, 2022 and December 31, 2021, respectively,
which is included in interest sensitive contract liabilities on the Company's
condensed consolidated balance sheets. The advances on these agreements are
collateralized primarily by commercial and residential mortgage-backed
securities, commercial mortgage loans, and U.S. Treasury and government agency
securities. The amount of collateral exceeds the liability and is dependent on
the type of assets collateralizing the guaranteed investment contracts.

Investments

Management of Investments

The Company's investment and derivative strategies involve matching the
characteristics of its reinsurance products and other obligations. The Company
seeks to closely approximate the interest rate sensitivity of the assets with
estimated interest rate sensitivity of the reinsurance liabilities. The Company
achieves its income objectives through strategic and tactical asset allocations,
applying security and derivative strategies within asset/liability and
disciplined risk management frameworks. Derivative strategies are employed
within the Company's risk management framework to help manage duration,
currency, and other risks in assets and/or liabilities and to replicate the
credit characteristics of certain assets.

The Company's portfolio management groups work with the Enterprise Risk
Management function to develop the investment policies for the assets of the
Company's domestic and international investment portfolios. All investments held
by the Company, directly or in a funds withheld at interest reinsurance
arrangement, are monitored for conformance with the Company's stated investment
policy limits as well as any limits prescribed by the applicable jurisdiction's
insurance laws and regulations. See Note 4 - "Investments" in the Notes to
Condensed Consolidated Financial Statements for additional information regarding
the Company's investments.

Portfolio Composition

The Company had total cash and invested assets of $78.6 billion and $81.5
billion as of March 31, 2022 and December 31, 2021, respectively, as illustrated
below (dollars in millions):

                                                                                                      December 31,
                                                   March 31, 2022              % of Total                 2021                  % of Total
Fixed maturity securities,
available-for-sale                               $        57,922                       73.6  %       $     60,749                       74.6  %
Equity securities                                            139                        0.2                   151                        0.2
Mortgage loans on real estate                              6,535                        8.3                 6,283                        7.7
Policy loans                                               1,221                        1.6                 1,234                        1.5
Funds withheld at interest                                 6,737                        8.6                 6,954                        8.5
Short-term investments                                       315                        0.4                    87                        0.1
Other invested assets                                      3,033                        3.9                 3,070                        3.8
Cash and cash equivalents                                  2,709                        3.4                 2,948                        3.6
Total cash and invested assets                   $        78,611                      100.0  %       $     81,476                      100.0  %


Investment Yield

The following table presents consolidated average invested assets at amortized
cost, net investment income, investment yield, variable investment income
("VII"), and investment yield excluding VII, which can vary significantly from
period to period (dollars in millions). The table excludes spread related
business. Spread related business is primarily associated with contracts on
which the Company earns an interest rate spread between assets and liabilities.
To varying degrees, fluctuations in the yield on other spread related business
is generally subject to corresponding adjustments to the interest credited on
the liabilities.

                                                                            Three months ended March 31,
                                                                                                         Increase/
                                                                    2022               2021              (Decrease)
Average invested assets at amortized cost                      $   35,271           $ 33,367          $      1,904
Net investment income                                          $      457   

$ 463 $ (6)
Annualized investment yield (ratio of net investment income to
average invested assets at amortized cost)

                           5.29   %           5.67  %              (38) bps
VII (included in net investment income)                        $      141   

$ 162 $ (21)
Annualized investment yield excluding VII (ratio of net
investment income, excluding VII, to average invested assets,
excluding assets with only VII, at amortized cost)

                   3.80   %           3.79  %                  1 bp


Investment yield decreased for the three months ended March 31, 2022, in
comparison to the same period in the prior year, primarily due to decreased
variable income from limited partnerships partially offset by increased variable
income from real estate joint ventures, which are included in other invested
assets on the condensed consolidated balance sheets.

                                       56

--------------------------------------------------------------------------------

Table of Contents

Fixed Maturity Securities Available-for-Sale

See "Fixed Maturity Securities Available-for-Sale" in Note 4 - "Investments" in
the Notes to Condensed Consolidated Financial Statements for tables that provide
the amortized cost, allowance for credit losses, unrealized gains and losses and
estimated fair value of these securities by type as of March 31, 2022 and
December 31, 2021.

The Company holds various types of fixed maturity securities available-for-sale
and classifies them as corporate securities ("Corporate"), Canadian and Canadian
provincial government securities ("Canadian government"), residential
mortgage-backed securities ("RMBS"), asset-backed securities ("ABS"), commercial
mortgage-backed securities ("CMBS"), U.S. government and agencies ("U.S.
government"), state and political subdivisions, and other foreign government,
supranational and foreign government-sponsored enterprises ("Other foreign
government"). RMBS, ABS, and CMBS are collectively "structured securities." As
of March 31, 2022 and December 31, 2021, approximately 93.8% and 94.0%,
respectively, of the Company's consolidated investment portfolio of fixed
maturity securities were investment grade.

Important factors in the selection of investments include diversification,
quality, yield, call protection and total rate of return potential. The relative
importance of these factors is determined by market conditions and the
underlying reinsurance liability and existing portfolio characteristics. The
Company owns floating rate securities that represent approximately 6.3% and 5.3%
of the total fixed maturity securities as of March 31, 2022 and December 31,
2021, respectively. These investments have a higher degree of income variability
than the other fixed income holdings in the portfolio due to fluctuations in
interest payments. The Company holds floating rate investments to match specific
floating rate liabilities primarily reflected in the condensed consolidated
balance sheets as collateral finance notes, as well as to enhance asset
management strategies.

The largest asset class in which fixed maturity securities were invested was
corporate securities, which represented approximately 62.8% of total fixed
maturity securities as of March 31, 2022 and December 31, 2021. See "Corporate
Fixed Maturity Securities" in Note 4 - "Investments" in the Notes to Condensed
Consolidated Financial Statements for tables showing the major sector types,
which comprise the corporate fixed maturity holdings as of March 31, 2022 and
December 31, 2021.

As of March 31, 2022 and December 31, 2021, the Company's investments in
Canadian government securities represented 7.6% and 8.1%, respectively, of the
fair value of total fixed maturity securities. These assets are primarily high
quality, long duration provincial strip bonds, the valuation of which is closely
linked to the interest rate curve. These assets are longer in duration and held
primarily for asset/liability management to meet Canadian regulatory
requirements.

The Company references rating agency designations in some of its investments
disclosures. These designations are based on the ratings from nationally
recognized statistical rating organizations, primarily Moody's, S&P and Fitch.
Structured securities held by the Company's insurance subsidiaries that maintain
the NAIC statutory basis of accounting utilize the NAIC rating methodology. The
NAIC assigns designations to publicly traded as well as privately placed
securities. The designations assigned by the NAIC range from class 1 to class 6,
with designations in classes 1 and 2 generally considered investment grade (BBB
or higher rating agency designation). NAIC designations in classes 3 through 6
are generally considered below investment grade (BB or lower rating agency
designation). If no rating is available from a rating agency or the NAIC, then
an internally developed rating is used.

The quality of the Company's available-for-sale fixed maturity securities
portfolio, as measured at fair value and by the percentage of fixed maturity
securities invested in various ratings categories, relative to the entire
available-for-sale fixed maturity securities portfolio, as of March 31, 2022 and
December 31, 2021 was as follows (dollars in millions):

                                                                                      March 31, 2022                                                     December 31, 2021
         NAIC                       Rating Agency               Amortized           Estimated                                       Amortized           Estimated
     Designation                     Designation                  Cost              Fair Value             % of Total                 Cost              Fair Value             % of Total
          1                  AAA/AA/A                          $  34,434          $    34,741                        60.0  %       $  33,540          $    36,725                        60.5  %
          2                  BBB                                  19,691               19,574                        33.8             18,684               20,379                        33.5
          3                  BB                                    2,821                2,769                         4.8              2,620                2,668                         4.4
          4                  B                                       730                  720                         1.2                876                  863                         1.4
          5                  CCC and lower                           127                   92                         0.2                 96                   79                         0.1
          6                  In or near default                       46                   26                           -                 57                   35                         0.1
                             Total                             $  57,849          $    57,922                       100.0  %       $  55,873          $    60,749                       100.0  %



                                       57

--------------------------------------------------------------------------------

Table of Contents

The Company's fixed maturity portfolio includes structured securities. The
following table shows the types of structured securities the Company held as of
March 31, 2022 and December 31, 2021 (dollars in millions):

                                                                 March 31, 2022                                                        December 31, 2021
                                                                   Estimated                                                               Estimated
                                          Amortized Cost           Fair Value             % of Total             Amortized Cost            Fair Value             % of Total
RMBS:
Agency                                   $          538          $       537                      8.3  %       $            551          $       582                      8.4  %
Non-agency                                          445                  429                      6.6                       469                  468                      6.8
Total RMBS                                          983                  966                     14.9                     1,020                1,050                     15.2
ABS:
Collateralized loan obligations
("CLOs")                                          1,659                1,630                     25.1                     1,761                1,752                     25.4
ABS, excluding CLOs                               2,256                2,116                     32.5                     2,263                2,253                     32.6
Total ABS                                         3,915                3,746                     57.6                     4,024                4,005                     58.0
CMBS                                              1,829                1,786                     27.5                     1,790                1,849                     26.8
Total                                    $        6,727          $     6,498                    100.0  %       $          6,834          $     6,904                    100.0  %


The Company's RMBS portfolio includes agency-issued pass-through securities and
collateralized mortgage obligations. Agency-issued pass-through securities are
guaranteed or otherwise supported by the Federal Home Loan Mortgage Corporation,
Federal National Mortgage Association, or the Government National Mortgage
Association. The principal risks inherent in holding RMBS are prepayment and
extension risks, which will affect the timing of when cash will be received and
are dependent on the level of mortgage interest rates. Prepayment risk is the
unexpected increase in principal payments from the expected, primarily as a
result of owner refinancing. Extension risk relates to the unexpected slowdown
in principal payments from the expected. In addition, non-agency RMBS face
credit risk should the borrower be unable to pay the contractual interest or
principal on their obligation. The Company monitors its mortgage-backed
securities to mitigate exposure to the cash flow uncertainties associated with
these risks.

The Company's ABS portfolio primarily consists of CLOs, aircraft, and
single-family rentals. The principal risks in holding ABS are structural,
credit, capital market and interest rate risks. Structural risks include the
securities' cash flow priority in the capital structure and the inherent
prepayment sensitivity of the underlying collateral. Credit risks include the
adequacy and ability to realize proceeds from the collateral. Credit risks are
mitigated by credit enhancements that include excess spread,
over-collateralization and subordination. Capital market risks include general
level of interest rates and the liquidity for these securities in the
marketplace.

The Company's CMBS portfolio primarily consists of large pool securitizations
that are diverse by property type, borrower and geographic dispersion. The
principal risks in holding CMBS are structural and credit risks. Structural
risks include the securities' cash flow priority in the capital structure and
the inherent prepayment sensitivity of the underlying collateral. Credit risks
include the adequacy and ability to realize proceeds from the collateral. The
Company focuses on investment grade rated tranches that provide additional
credit support beyond the equity protection in the underlying loans. These
assets are viewed as an attractive alternative to other fixed income asset
classes.

As of March 31, 2022 and December 31, 2021, the Company had $2,066 million and
$349 million, respectively, of gross unrealized losses related to its fixed
maturity securities. The Company monitors its fixed maturity securities to
determine impairments in value and evaluates factors such as financial condition
of the issuer, payment performance, compliance with covenants, general market
and industry sector conditions, current intent and ability to hold securities,
and various other subjective factors. Based on management's judgment, an
allowance for credit losses in the amount that fair value is less than the
amortized cost is recorded for securities determined to have expected credit
losses.

Mortgage Loans on Real Estate

The Company's mortgage loan portfolio consists of U.S., Canada and UK based
investments primarily in commercial offices, light industrial properties and
retail locations. The mortgage loan portfolio is diversified by geographic
region and property type as discussed further under "Mortgage Loans on Real
Estate" in Note 4 - "Investments" in the Notes to Condensed Consolidated
Financial Statements. Most of the mortgage loans in the Company's portfolio
range in size up to $30 million, with the average mortgage loan investment as of
March 31, 2022, totaling approximately $9 million.


                                       58

--------------------------------------------------------------------------------

Table of Contents

As of March 31, 2022 and December 31, 2021, the Company's recorded investment in
mortgage loans, gross of unamortized deferred loan origination fees and expenses
and allowance for credit losses, were distributed geographically as follows
(dollars in millions):

                             March 31, 2022                     December 31, 2021
                        Recorded                             Recorded
                       Investment        % of Total         Investment         % of Total
U.S. Region:
West                 $       2,302           35.1  %    $          2,270           36.0  %
South                        2,238           34.0                  2,135           33.7
Midwest                      1,187           18.0                  1,166           18.4
Northeast                      475            7.2                    419            6.6
Subtotal - U.S.              6,202           94.3                  5,990           94.7
Canada                         213            3.2                    193            3.0
United Kingdom                 167            2.5                    144            2.3
Other                            1              -                      2              -
Total                $       6,583          100.0  %    $          6,329          100.0  %

See "Allowance for Credit Losses and Impairments" in Note 2 - "Significant
Accounting Policies and Pronouncements" of the Company's 2021 Annual Report and
"Mortgage Loans on Real Estate" in Note 4 - "Investments" in the Notes to
Condensed Consolidated Financial Statements for information regarding the
Company's policy for allowance for credit losses on mortgage loans.

Allowance for Credit Losses and Impairments

The Company's determination of whether a decline in value necessitates the
recording of an allowance for credit losses includes an analysis of whether the
issuer is current on its contractual payments, evaluating whether it is probable
that the Company will be able to collect all amounts due according to the
contractual terms of the security and analyzing the overall ability of the
Company to recover the amortized cost of the investment. See "Allowance for
Credit Losses and Impairments" in Note 2 - "Significant Accounting Policies and
Pronouncements" of the Company's 2021 Annual Report for additional information.
The table below summarizes investment related gains (losses), net related to
allowances for credit losses and impairments for the three months ended
March 31, 2022 and 2021 (dollars in millions).

                                                                     Three months ended
                                                                          March 31,
                                                                                2022                2021

Change in allowance for credit losses on fixed maturity
securities

                                                                  $       11          $        2
Impairments on fixed maturity securities                                             1                   -
Other impairment losses and changes in provision                                     -                  (1)
Change in mortgage loan allowance for credit losses                                  2                 (17)
Total                                                                       $       14          $      (16)


The change in allowance for credit losses and impairments on fixed maturity
securities for the three months ended March 31, 2022 and 2021, was primarily
related to high-yield securities. The decrease in mortgage loan allowance for
credit losses for the three months ended, March 31, 2021 reflects the improved
outlook from the COVID-19 pandemic.

See "Unrealized Losses for Fixed Maturity Securities Available-for-Sale" in Note
4 - "Investments" in the Notes to Condensed Consolidated Financial Statements
for tables that present the estimated fair value and gross unrealized losses for
securities that have estimated fair values below amortized cost by class and
grade, as well as the length of time the related estimated fair value has
remained below amortized cost as of March 31, 2022 and December 31, 2021.

As of March 31, 2022 and December 31, 2021, the Company classified approximately
9.0% and 8.5%, respectively, of its fixed maturity securities in the Level 3
category (refer to Note 6 - "Fair Value of Assets and Liabilities" in the Notes
to Condensed Consolidated Financial Statements for additional information).
These securities primarily consist of private placement corporate and
asset-backed securities.

See "Securities Borrowing, Lending and Repurchase Agreements" in Note 4 -
"Investments" in the Notes to Condensed Consolidated Financial Statements for
information related to the Company's securities borrowing, lending and
repurchase/reverse repurchase programs.

                                       59

--------------------------------------------------------------------------------

Table of Contents

Funds Withheld at Interest

For reinsurance agreements written on a modified coinsurance basis and certain
agreements written on a coinsurance basis, assets equal to the net statutory
reserves are withheld and legally owned and managed by the ceding company, and
are reflected as funds withheld at interest on the Company's condensed
consolidated balance sheets. In the event of a ceding company's insolvency, the
Company would need to assert a claim on the assets supporting its reserve
liabilities. However, the risk of loss to the Company is mitigated by its
ability to offset amounts it owes the ceding company for claims or allowances
against amounts owed by the ceding company. Interest accrues to the total funds
withheld at interest assets at rates defined by the treaty terms. The Company is
subject to the investment performance on the withheld assets, although it does
not directly control them. These assets are primarily fixed maturity investment
securities and pose risks similar to the fixed maturity securities the Company
owns. To mitigate this risk, the Company helps set the investment guidelines
followed by the ceding company and monitors compliance. Ceding companies with
funds withheld at interest had an average financial strength rating of "A" as of
March 31, 2022 and December 31, 2021. Certain ceding companies maintain
segregated portfolios for the benefit of the Company.

Other Invested Assets

Other invested assets include limited partnership interests, joint ventures
(other than operating joint ventures), lifetime mortgages, derivative contracts,
FHLB common stock and unit-linked investments. See "Other Invested Assets" in
Note 4 - "Investments" in the Notes to Condensed Consolidated Financial
Statements for a table that presents the carrying value of the Company's other
invested assets by type as of March 31, 2022 and December 31, 2021.

The Company utilizes derivative financial instruments to protect the Company
against possible changes in the fair value of its investment portfolio as a
result of interest rate changes, to hedge against risk of changes in the
purchase price of securities, to hedge liabilities associated with the
reinsurance of variable annuities with guaranteed living benefits and to manage
the portfolio's effective yield, maturity and duration. In addition, the Company
utilizes derivative financial instruments to reduce the risk associated with
fluctuations in foreign currency exchange rates. The Company uses
exchange-traded, centrally cleared, and customized over-the-counter derivative
financial instruments.

See Note 5 - "Derivative Instruments" in the Notes to Condensed Consolidated
Financial Statements for a table that presents the notional amounts and fair
value of investment related derivative instruments held as of March 31, 2022 and
December 31, 2021.

The Company may be exposed to credit-related losses in the event of
non-performance by counterparties to derivative financial instruments.
Generally, the credit exposure of the Company's derivative contracts is limited
to the fair value and accrued interest of non-collateralized derivative
contracts in an asset position at the reporting date. As of March 31, 2022, the
Company had credit exposure of $16 million.

The Company manages its credit risk related to over-the-counter derivatives by
entering into transactions with creditworthy counterparties, maintaining
collateral arrangements and through the use of master agreements that provide
for a single net payment to be made by one counterparty to another at each due
date and upon termination. As exchange-traded futures are affected through
regulated exchanges, and positions are marked to market on a daily basis, the
Company has minimal exposure to credit-related losses in the event of
nonperformance by counterparties. See Note 5 - "Derivative Instruments" in the
Notes to Condensed Consolidated Financial Statements for more information
regarding the Company's derivative instruments.

The Company holds $823 million and $758 million of beneficial interest in
lifetime mortgages in the UK, net of allowance for credit losses, as of
March 31, 2022 and December 31, 2021, respectively. Investment income includes
$10 million and $13 million in interest income earned on lifetime mortgages for
the three months ended March 31, 2022 and 2021, respectively. Lifetime mortgages
represent loans provided to individuals 55 years of age and older secured by the
borrower's residence. Lifetime mortgages are comparable to a home equity loan by
allowing the borrower to utilize the equity in their home as collateral. The
amount of the loan is dependent on the appraised value of the home at the time
of origination, the borrower's age and interest rate. Unlike a home equity loan,
no payment of principal or interest is required until the death of the borrower
or sale of the home. Lifetime mortgages may also be either fully funded at
origination, or the borrower can request periodic funding similar to a line of
credit. Lifetime mortgages are subject to risks, including market, credit,
interest rate, liquidity, operational, reputational and legal risks.

New Accounting Standards

Changes to the general accounting principles are established by the Financial
Accounting Standards Board ("FASB") in the form of accounting standards updates
to the FASB Accounting Standards CodificationTM.

Financial Services - Insurance

In August 2018, the FASB issued amendments that will significantly change the
recognition and measurement of long-duration insurance contracts and expand
disclosure requirements. The guidance is effective for the Company on January 1,
2023. The
                                       60

--------------------------------------------------------------------------------

Table of Contents

Company established a team to support the implementation of the updated
guidance, which requires significant changes to policies, reporting and
processes. The Company's achievements as of the balance sheet date include, but
are not limited to, the following:

•Established preliminary key accounting policies;

•Updated chart of accounts to support enhanced financial statement presentation
and disclosures;

•Implemented a data management system and process for grouping treaties into
cohorts;

•Established valuation analytics and reporting foundation;

•Established an assumption governance process for assumption review, changes and
approvals; and

•Conducted dry runs and end to end system testing.

The Company continues to make progress on the following items (includes, but not
limited to):

•Evaluating and finalizing key accounting policies;

•Evaluating the impact to the consolidated financial statements at transition;

•Determining and documenting key risks and appropriate internal controls; and

•Conducting parallel valuation runs.

See Note 13 - "New Accounting Standards" in the Notes to Condensed Consolidated
Financial Statements for additional information on new accounting pronouncements
and their impact, if any, on the Company's results of operations and financial
position.