REINSURANCE GROUP OF AMERICA INC

The Asia Pacific operations include business generated by its offices throughout Asia and Australia. 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.

The following table sets forth the Asia Pacific operating results for the periods indicated (dollars in millions). See additional information in the Traditional and Financial Solutions sections.

The decrease in adjusted operating income before income taxes in 2024 was primarily due to unfavorable mortality and morbidity assumptions updates in the current year.

The increase in adjusted operating income before income taxes in 2023 was primarily due to increased net investment income related to an increase in the asset base from new asset-intensive transactions in the Financial Solutions segment, increased net premiums, and future policy benefits remeasurement gains, as compared to future policy benefits remeasurement losses in 2022.

The following table sets forth the Asia Pacific Traditional segment operating results for the periods indicated (dollars in millions):

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

The decrease in adjusted operating income before income taxes in 2024 was primarily the result of remeasurement losses due to unfavorable assumption updates.

•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 reinsurance in force, of $60.7 billion and $43.0 billion during 2024 and 2023, respectively.

•The increase in net investment income was attributable to an increase in investment yield due to an increase in interest rates.

•The increase in the loss ratio for 2024 was primarily due to future policy benefits remeasurement losses recognized in 2024.

•During 2024 and 2023, the Company updated its actuarial assumptions which resulted in a future policy benefits remeasurement loss of $82 million primarily attributable to updated lapse assumptions in India and an increase in the Company’s per life retention limit which resulted in a loss of $13 million in 2024. The increase in per life retention is expected to contribute to earnings in future periods.

•The increase in adjusted operating income before income taxes in 2023 was primarily due to a remeasurement gain of $2 million recognized as a result of the Company’s annual assumption review compared to a remeasurement loss of $75 million in 2022.

The following table sets forth the Asia Pacific Financial Solutions segment operating results for the periods indicated (dollars in millions):

The increase in adjusted operating income before income taxes in 2024 was attributable to new business growth and an increase in investment income, primarily from new asset-intensive transactions.

The invested asset base supporting asset-intensive transactions increased to $22.2 billion as of December 31, 2024, from $15.0 billion as of December 31, 2023, primarily due to approximately $7.3 billion in additional assets from recently executed transactions. The amount of reinsurance assumed from client companies, as measured by pre-tax statutory surplus, risk based capital and other financial reinsurance structures was $2.1 billion and $1.2 billion for the year ended December 31, 2024 and 2023, 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.

•The increase in net investment income was the result of an increased asset base from recently executed asset-intensive transactions.

•The increase in other revenues was primarily due to surrender charges from higher lapses on a single premium annuity block of business.

•The increase in policy acquisition costs and other insurance expenses was the result of recently executed asset-intensive transactions, partially offset by lower contributions from single premium asset-intensive transactions.

The increase in adjusted operating income before income taxes in 2023 was primarily due to new business growth, which drove increases in investment income as well as benefits and expenses.

•The decrease in net premiums was the result of lower contributions from single premium asset-intensive transactions, partially offset by contributions from new asset-intensive transactions.

•The increase in net investment income was related to an increased asset base and improved yields from increased interest rates.

•The decrease in other revenues was attributable to surrender charges from higher lapses on a single premium annuity block of business in the prior year.

•The increases in adjusted interest credited and policy acquisition costs and other insurance expenses were driven by new asset-intensive transactions.