REINSURANCE GROUP OF AMERICA INC

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.

The increase in income before income taxes in 2023 was primarily due to favorable experience on longevity business in the Financial Solutions segment, an increase in investment related gains, net and lower operating expenses.

Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations in the Canadian dollar resulted in a $2 million decrease in income before income taxes in 2023. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.

The increase in income before income taxes in 2022 was primarily due to future policy remeasurement gains as compared to future policy benefits remeasurement losses in 2021, partially offset by a decrease in investment income and unfavorable claims experience in the individual mortality and group lines of business.

(1) Includes Claims and other policy benefits and Future policy benefits remeasurements (gains) losses

The decrease in income before income taxes in 2023 was primarily due to higher future policy benefits remeasurement losses as compared to the same period in 2022 due to updating mortality assumptions during the third quarter of 2023 and due to unfavorable claims experience for the year. The remeasurement losses were partially offset by lower policy acquisition costs and other insurance expenses.

•The decrease in premiums was the result of foreign currency fluctuations. Excluding the impact of foreign currency fluctuations, the increase in net premiums was primarily due to organic growth.

•The segment added new life business production, measured by face amount of reinsurance in force, of $44.1 billion and $48.2 billion during 2023 and 2022, 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.

•During 2023, the Company updated its assumptions which resulted in a future policy benefits remeasurement loss of $13 million due to updating mortality assumptions.

•The increase in the loss ratio for 2023 was primarily due to future policy remeasurement losses as compared to future policy benefits remeasurement gains in 2022, primarily as a result of the 2023 assumption updates and unfavorable claims experience.

•The decrease in policy acquisition costs was primarily due to lower allowances and ceded expenses.

The decrease in income before income taxes in 2022 was primarily due to unfavorable claims experience in the individual mortality and group lines of business and lower investment income.

The increase in income before income taxes in 2023 was the result of a future policy remeasurement gain of $22 million due to updating mortality assumptions.

The increase in income before income taxes in 2022 was primarily the result of future policy benefits remeasurement gains recognized in 2022 as compared to future policy benefits remeasurements losses recognized in 2021.