REINSURANCE GROUP OF AMERICA INC

The Europe, Middle East and Africa (“EMEA”) operations 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.

The increase in income before income taxes in 2023 was primarily the result of increased net investment income and favorable remeasurement gains and claims experience on longevity business in the Financial Solutions segment.

Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations resulted in a $2 million increase 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 the result of increased net premiums, partially offset by decreases in net investment income and investment related gains (losses), net.

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

The decrease in income before income taxes in 2023 was primarily due to future policy benefits remeasurement losses as compared to future policy benefits remeasurement gains in 2022 and unfavorable claims experience, partially offset by an increase in net premiums.

•The increase in net premiums was due to increases in business volume on new and existing treaties. The segment added new life business production, measured by face amount of reinsurance in force, of $113.7 billion and $169.4 billion during 2023 and 2022, respectively.

•The increase in the loss ratio was due to an update of mortality assumptions primarily in the UK and a worsening in mortality experience primarily in the UK and South Africa.

•During 2023 and 2022, the Company updated its mortality assumptions which resulted in a future policy benefits remeasurement loss of $47 million in 2023 compared to a future policy benefits remeasurement loss of $13 million in 2022.

The increase in income before income taxes in 2022 was the result of an improvement in individual life mortality experience and future policy remeasurement gains as compared to future policy remeasurement losses in 2022.

The increase in income before income taxes in 2023 was primarily due to increases in net investment income, higher future policy benefits remeasurement gains and favorable claims experience related to closed longevity blocks, partially offset by decreased net premiums.

•The decrease in net premiums was primarily due to an increase in the ceded premiums on closed block longevity transactions.

•The increase in net investment income was primarily related to higher yield and higher income associated with unit-linked policies which fluctuate with market performance and are offset by an increase in interest credited related to the unit-linked liabilities, as well as market value movements on funds withheld assets.

•The increase in investment related losses was primarily due to fluctuations in the fair market value of CPI swap derivatives due to changes in future inflation expectations and higher investment related losses on fixed-income securities.

•The decrease in claims and other policy benefits was the result of favorable longevity experience and an increased level of external retrocession coverage on closed block longevity transactions.

The decrease in income before income taxes in 2022 was primarily due to decreases in net investment income, investment related gains (losses), net and an increased volume of claims, partially offset by increases in net premiums.