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FHLBanks Insurance Conference:Introduction to RGA

Timothy Matson

EVP & Chief Investment Officer

June 16, 2015

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RGA at a Glance

RGA is recognized as a high-quality, global provider of risk-transfer and other financial solutions

RGA helps clients manage risk and capital efficiently & effectively

RGA is unique as the only pure-play, global life reinsurer

RGA is a global leader in a concentrated sector – top 5 players control 80% of global premiums

RGA has proven expertise in mortality, morbidity, longevity, and structured solutions

RGA has a unique culture – client centric, innovative, collaborative

55%

18%

16%

11%

2014 Premiums

U.S.

APAC

EMEA

Canada

38%

25%

11%

15%

11%

2014 Operating Income

U.S. Trad

USFS

Canada

EMEA

Asia

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Ordinary life reinsurance in force of $2.9 trillion Total assets of $44.7 billion Market capitalization of $6.0 billion 45% of net premium income derived outside the U.S. Total revenue in 2014 of approximately $10.9 billion Net income of $684 million in 2014

*as of December 31, 2014

Key Financial Metrics*

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A Global Life and Health Reinsurer

U.S. Canada U.K. Australia Japan South Africa Mexico Spain Hong Kong Malaysia Taiwan

Where we are in 2014…

India South Korea Ireland China Poland France Germany Italy New Zealand Netherlands U.A.E. Singapore Turkey

Represents offices opened since 2001

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Top 10 Global Life and Health Reinsurers Ranked by 2014 Net Earned Premiums

($ Millions as of December 31, 2014)

1Does not include Munich Health2Net premiums3Does not include BHRG results4 Due to unavailability of 2013 data, we have used 2012 results 5Gross written premiums

Sources: Annual filings, A. M. Best insurance reports

Rank ReinsurerNet EarnedPremiums

1 Munich Re1 12,707

2 Swiss Reinsurance Company 11,265

3 Reinsurance Group of America2 8,669

4 SCOR Global Life Re 7,529

5 Hanover Re 7,130

6 London Re4 3,862

7 General Re3 3,161

8 China Life Re4 2,524

9 Partner Re 1,222

10 Pacific Life4 896

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Ratings

RGA Reinsurance Company

RGA Life Reinsurance Company of Canada

RGA Americas Reinsurance Company, Ltd.

RGA International Reinsurance Company

Limited; RGA Global Reinsurance Company, Ltd.; RGA Reinsurance Company of Australia

Limited

RGA Atlantic Reinsurance Company

Ltd.

Standard & Poor’s AA- AA- AA- AA- NR

A.M. Best Company A+ A+ A+ NR A+

Moody’s Investors Service A1 NR NR NR NR

Standard & Poor’s A-

A.M. Best Company a-

Moody’s Investors Service Baa1

RGA Senior Debt Ratings

All ratings on “Stable” outlook

Financial Strength Ratings

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Role of Investments within RGA

Investments is a key function within RGA to manage assets for in-force businesses and to support future growth

RGA Investments has three key long-term objectives:• Manage balance sheet strength and investment income

• Partner with business segments on new deal flow

• Enhance the investment platform

Target• Best-in-class investment operation specializing in insurance - related activities

• Third-party asset manager quality in all facets of operation, including mastery of capital, financial reporting, and regulatory issues

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RGA’s Investment Philosophy

Achieve appropriate risk-adjusted returns relative to liabilities

Maintain a diversified portfolio

Take an agnostic approach to manager selection• Use both internal and external investment managers

• Access best-in-class external managers; best long-term track record

• Take advantage of scale and lower costs where they exist

• Gain flexibility as asset allocation or business mix change

Avoid frequent trading to minimize costs

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Manage Balance Sheet Strength and Income

Ability to manage assets for balance sheet strength and to meet income targets• Enhance investment performance for in-force business• Generate optimal level of realized gains/losses

St. Louis-based investment team• Investment securities group managing investment grade credit, RMBS/CMBS, and some alternatives (private

equity funds/co-investments and mezzanine debt); 60 staff, includes 10 credit analysts• Commercial mortgage team originating/servicing loans in the U.S. and Canada from 6 regional offices; 30 staff

London-based investment team• Investment securities group managing investment grade sterling and euro portfolios; 5 staff

External managers for domestic and international portfolios• Utilize top tier third-party managers for specialty asset classes• 8 managers covering domestic and emerging market high yield, senior bank loans, and RMBS• 7 managers covering local currency portfolios in Canada, U.K., Australia, Korea, and South Africa

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Partner with RGA Business Segments

Demonstrated ability to work closely with business units to develop investment strategies that contribute to new business development

• Global Acquisitions

• Global Financial Solutions

Maintain ongoing communication with business leaders with regard to deal flow

Active involvement in capital markets through in-force management aids in solutions capability, perspective, and creativity

Investment staff incorporate RGA’s dynamic business model; not just a group of index-focused asset managers

Ultimately create an environment when Investments not only finds asset solutions for liabilities, but also seeks liability solutions for assets

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Enhance RGA’s Investment Platform

Expanded credit staff, documented credit analysis process, designed training program for new credit staff

• Capture beta from investment grade corporate bonds and minimize downside

• Build strong credit culture

• Develop staff for other asset classes

Commercial mortgage group becoming “brand name” manager with third-party asset management qualifications

• Group has achieved critical mass to compete in market

• Expect third-party capability by year-end

• All mortgage servicing brought in-house in 2014

Building out investment team in Asia Pacific for business support and asset management

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Identification of Key Metrics

Investment Performance• Meet or exceed plan projection for net earned book yield

• Total return measures – employ where needed

Cost Structure• Target asset management expense/AUM of less than 10 basis points

Realized Gain/Loss• Low turnover commensurate with book yield approach

Compliance Breaches• Expect 0%

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Asset Allocation

Note: Excludes the Timberlake note of $272 million MV, the RGA note of $82 million MV, the derivatives used for VA/EIA and NIFO hedges totaling $306 million MV, two liability replication portfolios totaling $2 million MV and five positions related to Aurora repos liabilities totaling –$1.4 million MV

Well-diversified portfolio• Investment Policy Statements define limits

by asset type and issuer • Illiquid assets below policy limits

Allocations vs. Peers• No significant allocation differences• Higher foreign government exposure due to

asset mix in Canada operation

Total U.S. Total IntlGrand Total

MV (USD million) $24,225 $11,235 $35,460BV (USD million) $22,670 $9,513 $32,183Cash & Short Term 1.9% 3.5% 2.4%Treasuries 1.5% 6.2% 2.9%Other Government 2.3% 38.2% 12.9%Municipal 6.1% 0.3% 4.4%Corporate IG 37.0% 43.7% 39.0%Corporate HY 2.8% 0.3% 2.1%EMD IG 4.9% 3.5% 4.5%EMD HY 1.2% 0.0% 0.8%Bank Loan 1.5% 0.0% 1.1%Hybrid 2.5% 1.5% 2.2%ABS 6.5% 0.5% 4.8%Agency MBS/CMO 4.1% 0.2% 2.9%Non-Agency MBS/CMO 1.7% 0.5% 1.3%CMBS 7.8% 0.6% 5.6%CML 12.5% 0.0% 8.8%Equity Real Estate 0.6% 0.0% 0.4%Private Placement 3.6% 0.8% 2.8%Alternatives 1.5% 0.1% 1.1%Derivatives 0.0% 0.0% 0.0%Total 100% 100% 100%

12/31/2014 (BV Weight)

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Commercial Mortgage Portfolio

OFFICE32%

RETAIL30%

INDUSTRIAL16%

MULTI FAMILY

14%

OTHER7%

HOTEL1%

Property Type(Book Value Basis)

0%

5%

10%

15%

20%

25%

30%

East NorthCentral

East SouthCentral

Mountain NewEngland

Pacific SouthAtlantic

West NorthCentral

West SouthCentral

Mid-Atlantic

By Region

RGA ACLI

C1 & C23%

D1 & D21%

A122%

A227%

B133%

B214%

Rating Distribution(Book Value Basis)

ACLI Region

Total Outstanding Prin. Bal. (000s) 2,908,764$

Wtd. Avg. Coupon 4.89%

Wtd. Avg. Loan to Value 53%

Wtd. Avg. Debt Service Coverage Ratio 1.90x

Wtd. Avg. Rating A2/B1 (A- to BBB+)

Portfolio performanceBalance (000s) Percent

Current: 2,908,764$ 100%

60 days: - 0%

90 days: - 0%

> 90 days: - 0%

In foreclosure: - 0%

Total 2,908,764$ 100%

As of March 31, 2015

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Important Steps over Next Three Years

Improve Efficiency• Enhance ability to price and execute deals on tight timeframes • Drive total asset management expenses to less than 10 basis points

Develop reputation as a best-in-class asset manager • Key for business development• Important to attract and retain top level talent• Provide third-party asset management, where profitable

Enhance stability and scalability of investment technology platform• Improve data integrity and functionality for all applications• Enable more activity, such as third-party asset management and tailored solutions for block transactions• Continue automation of back office activities

Build out investment platform in Asia Pacific region• Fastest growing geographic region• Local presence for deal support• Enhance asset management capabilities

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