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, asset intensive and capital solutions.

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

The increase in adjusted operating income before income taxes in 2024 was primarily due to favorable experience on group business and future policy remeasurement gains compared to policy benefits remeasurement losses in 2023 in the Traditional segment. These favorable variances were partially offset by lower policy remeasurement gains in the Financial Solutions segment.

Foreign currency fluctuations can result in variances in the financial statement line items. Foreign currency fluctuations in the Canadian dollar resulted in a $3 million decrease in income before income taxes in 2024. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.

The increase in adjusted operating income before income taxes in 2023 was primarily due to favorable experience on longevity business in the Financial Solutions segment, partially offset by the effects of unfavorable assumption updates in the Traditional segment.

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

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

The increase in adjusted operating income before income taxes in 2024 was primarily due to favorable experience on group business and future policy benefits remeasurement gains as compared to future policy benefits remeasurement losses in 2023.

•The increase in net premiums was primarily due to new group business and organic growth in all lines of business.

•The segment added new life business production, measured by face amount of reinsurance in force, of $48.0 billion and $44.1 billion during 2024 and 2023, respectively. The new business production added in 2024 was partially offset by a decrease of $40 billion due to changes in foreign exchange rates.

•The increase in net investment income was primarily due to increased yield on new investments and an increase in the invested asset base.

•The changes in future policy benefits remeasurement (gains) losses were primarily the result of net favorable assumption updates totaling $30 million primarily attributable to updated mortality assumptions, partially offset by unfavorable impacts of the increase in the Company’s per life retention limit which resulted in a loss of $25 million. The increase in per life retention is expected to contribute to earnings in future periods.

•The decrease in the loss ratio for 2024 was primarily due to favorable experience on the group line of business and future policy remeasurement gains as compared to future policy benefits remeasurement losses in 2023.

•The increase in other operating expenses was primarily due to an increase in salaries and incentive compensation.

The decrease in adjusted operating income before income taxes in 2023 for the Canada Traditional segment 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 following table sets forth the Canada Financial Solutions segment operating results for the periods indicated (dollars in millions):

The decrease in adjusted operating income before income taxes in 2024 was the result of a future policy remeasurement gain of $30 million in 2023 due to updating actuarial assumptions and favorable mortality experience on the longevity business. The increases in net premiums, net investment income claims and other policy benefits and policy acquisitions costs and other insurance expenses were due to a new transaction executed in the second quarter of 2024.

The increase in adjusted operating income before income taxes in 2023 for the Canada Financial Solutions segment was the result of higher future policy remeasurement gains in 2023 due to updating actuarial assumptions and favorable longevity experience.