Cautionary Note Regarding Forward-Looking Statements



This report contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 including, among others,
statements relating to projections of the future operations, strategies,
earnings, revenues, income or loss, ratios, financial performance and growth
potential of the Company. Forward-looking statements often contain words and
phrases such as "intend," "expect," "project," "estimate," "predict,"
"anticipate," "should," "believe" and other similar expressions. Forward-looking
statements are based on management's current expectations and beliefs concerning
future developments and their potential effects on the Company. Forward-looking
statements are not a guarantee of future performance and are subject to risks
and uncertainties, some of which cannot be predicted or quantified. Future
events and actual results, performance, and achievements could differ materially
from those set forth in, contemplated by or underlying the forward-looking
statements.

The effects of the COVID-19 pandemic and the response thereto on economic
conditions, the financial markets and insurance risks, and the resulting effects
on the Company's financial results, liquidity, capital resources, financial
metrics, investment portfolio and stock price, could cause actual results and
events to differ materially from those expressed or implied by forward-looking
statements. Additionally, numerous other important factors (whether related to,
resulting from or exacerbated by the COVID-19 pandemic or otherwise) could also
cause results and events to differ materially from those expressed or implied by
forward-looking statements, including, without limitation: (1) adverse changes
in mortality, morbidity, lapsation or claims experience, (2) inadequate risk
analysis and underwriting, (3) adverse capital and credit market conditions and
their impact on the Company's liquidity, access to capital and cost of capital,
(4) changes in the Company's financial strength and credit ratings and the
effect of such changes on the Company's future results of operations and
financial condition, (5) the availability and cost of collateral necessary for
regulatory reserves and capital, (6) requirements to post collateral or make
payments due to declines in market value of assets subject to the Company's
collateral arrangements, (7) action by regulators who have authority over the
Company's reinsurance operations in the jurisdictions in which it operates,
(8) the effect of the Company parent's status as an insurance holding company
and regulatory restrictions on its ability to pay principal of and interest on
its debt obligations, (9) general economic conditions or a prolonged economic
downturn affecting the demand for insurance and reinsurance in the Company's
current and planned markets, (10) the impairment of other financial institutions
and its effect on the Company's business, (11) fluctuations in U.S. or foreign
currency exchange rates, interest rates, or securities and real estate markets,
(12) market or economic conditions that adversely affect the value of the
Company's investment securities or result in the impairment of all or a portion
of the value of certain of the Company's investment securities, that in turn
could affect regulatory capital, (13) market or economic conditions that
adversely affect the Company's ability to make timely sales of investment
securities, (14) risks inherent in the Company's risk management and investment
strategy, including changes in investment portfolio yields due to interest rate
or credit quality changes, (15) the fact that the determination of allowances
and impairments taken on the Company's investments is highly subjective,
(16) the stability of and actions by governments and economies in the markets in
which the Company operates, including ongoing uncertainties regarding the amount
of U.S. sovereign debt and the credit ratings thereof, (17) the Company's
dependence on third parties, including those insurance companies and reinsurers
to which the Company cedes some reinsurance, third-party investment managers and
others, (18) financial performance of the Company's clients, (19) the threat of
natural disasters, catastrophes, terrorist attacks, epidemics or pandemics
anywhere in the world where the Company or its clients do business,
(20) competitive factors and competitors' responses to the Company's
initiatives, (21) development and introduction of new products and distribution
opportunities, (22) execution of the Company's entry into new markets,
(23) integration of acquired blocks of business and entities, (24) interruption
or failure of the Company's telecommunication, information technology or other
operational systems, or the Company's failure to maintain adequate security to
protect the confidentiality or privacy of personal or sensitive data stored on
such systems, (25) adverse litigation or arbitration results, (26) the adequacy
of reserves, resources and accurate information relating to settlements, awards
and terminated and discontinued lines of business, (27) changes in laws,
regulations, and accounting standards applicable to the Company or its business,
including Long Duration Targeted Improvement accounting changes, and (28) other
risks and uncertainties described in this document and in the Company's other
filings with the Securities and Exchange Commission ("SEC").

Forward-looking statements should be evaluated together with the many risks and
uncertainties that affect the Company's business, including those mentioned in
this document and described in the periodic reports the Company files with the
SEC. These forward-looking statements speak only as of the date on which they
are made. The Company does not undertake any obligation to update these
forward-looking statements, even though the Company's situation may change in
the future. For a discussion of these risks and uncertainties that could cause
actual results to differ materially from those contained in the forward-looking
statements, you are advised to see Item 1A - "Risk Factors" in the 2021 Annual
Report, as may be supplemented by Item 1A - "Risk Factors" in the Company's
subsequent Quarterly Reports on Form 10-Q.

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Overview



The Company is among the leading global providers of life reinsurance and
financial solutions, with $3.4 trillion of life reinsurance in force and assets
of $84.6 billion as of June 30, 2022. Traditional reinsurance includes
individual and group life and health, disability, and critical illness
reinsurance. Financial solutions includes longevity reinsurance, asset-intensive
reinsurance, capital solutions, including financial reinsurance, and stable
value products. The Company derives revenues primarily from renewal premiums
from existing reinsurance treaties, new business premiums from existing or new
reinsurance treaties, fee income from financial solutions business and income
earned on invested assets.

Historically, the Company's primary business has been traditional life
reinsurance, which involves reinsuring life insurance policies that are often in
force for the remaining lifetime of the underlying individuals insured, with
premiums earned typically over a period of 10 to 30 years. To a lesser extent,
the Company also reinsures health business typically reinsured for one to three
years. Each year, however, a portion of the business under existing treaties
terminates due to, among other things, lapses or voluntary surrenders of
underlying policies, deaths of insureds, and the exercise of recapture options
by ceding companies. The Company has expanded its financial solutions business,
including significant asset-intensive and longevity risk transactions, which
allow its clients to take advantage of growth opportunities and manage their
capital, longevity and investment risk.

For its traditional life business, the Company's profitability largely depends
on the volume and amount of death- and health-related claims incurred and the
ability to adequately price the risks it assumes. While death claims are
reasonably predictable over a period of many years, claims become less
predictable over shorter periods and are subject to significant fluctuation from
quarter to quarter and year to year. For longevity business, the Company's
profitability depends on the lifespan of the underlying contract holders and the
investment performance for certain contracts. Additionally, the Company
generates profits on investment spreads associated with the reinsurance of
investment type contracts and generates fees from financial reinsurance
transactions, which are typically shorter duration than its traditional life
reinsurance business. The Company believes its sources of liquidity are
sufficient to cover potential claims payments on both a short-term and long-term
basis.

As is customary in the reinsurance business, clients continually update, refine,
and revise reinsurance information provided to the Company. Such revised
information is used by the Company in preparation of its condensed consolidated
financial statements and the financial effects resulting from the incorporation
of revised data are reflected in the current period.

Segment Presentation



The Company has geographic-based and business-based operational segments.
Geographic-based operations are further segmented into traditional and financial
solutions businesses. The Company allocates capital to its segments based on an
internally developed economic capital model, the purpose of which is to measure
the risk in the business and to provide a consistent basis upon which capital is
deployed. The economic capital model considers the unique and specific nature of
the risks inherent in RGA's businesses.

As a result of the economic capital allocation process, a portion of investment
income is credited to the segments based on the level of allocated capital. In
addition, the segments are charged for excess capital utilized above the
allocated economic capital basis. This charge is included in policy acquisition
costs and other insurance expenses. Segment investment performance varies with
the composition of investments and the relative allocation of capital to the
operating segments.

Segment revenue levels can be significantly influenced by currency fluctuations,
large transactions, mix of business and reporting practices of ceding companies,
and therefore may fluctuate from period to period. Although reasonably
predictable over a period of years, segment claims experience can be volatile
over shorter periods. See "Results of Operations by Segment" below for further
information about the Company's segments.


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Critical Accounting Policies



The preparation of financial statements in conformity with GAAP requires the
application of accounting policies that often involve a significant degree of
judgment. Management, on an ongoing basis, reviews estimates and assumptions
used in the preparation of financial statements. If management determines that
modifications in assumptions and estimates are appropriate given current facts
and circumstances, results of operations and financial position as reported in
the condensed consolidated financial statements could change significantly.

Management believes the critical accounting policies relating to the following areas are most dependent on the application of estimates and assumptions:



  Premiums receivable;

  Deferred acquisition costs;

Liabilities for future policy benefits and incurred but not reported claims;

Valuation of investments, allowance for credit losses and impairments to specific investments;

Valuation of embedded derivatives; and

Income taxes.

A discussion of each of the critical accounting policies may be found in the Company's 2021 Annual Report under "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies."

Consolidated Results of Operations

Impacts of the COVID-19 Pandemic



Although global COVID-19 related deaths have begun to decline, the Company
continues to experience increased claim costs, primarily in the first quarter of
2022, as a result of the COVID-19 global pandemic. However, the Company cannot
reliably predict the future impact the ongoing pandemic will have on its
business, results of operations and financial condition as the impact will
depend on, among other factors, the severity of new variants of the virus,
vaccination effectiveness, country-specific circumstances, and COVID-19's
indirect impact on mortality and morbidity.

The ultimate amount and timing of claims the Company will experience as a result
of the COVID-19 pandemic will depend on many variables and uncertainties. These
variables and uncertainties include those discussed above, in addition to age,
gender, comorbidities, other insured versus general population characteristics,
geography-specific institutional and individual mitigating actions, medical
capacity, and other factors. To date, general population COVID-19 deaths have
been heavily concentrated in individuals aged 70 and older and with pre-existing
comorbidities; however, many populations have seen an increase in younger age
deaths, particularly in areas where healthcare facilities were unable to provide
adequate care. The Company's insured population has lower exposure to older ages
than the general population and covers a generally healthier population due to
underwriting and socioeconomic factors of those purchasing insurance. In
addition, the Company's longevity business may act as a modest offset to excess
life insurance claims at older ages.

The Company's COVID-19 projection and financial impact models continue to be
updated and refined based on latest external data and the Company's claim
experience to date and are subject to the many variables and uncertainties noted
above. The U.S. continues to be the key driver of mortality claim costs followed
by Canada and the UK. For the six months ended June 30, 2022, the Company
estimates it has incurred approximately $316 million of COVID-19 related life
and health claim costs, including amounts incurred but not reported, with
approximately $258 million of that amount being associated with the U.S. and
Latin America Traditional segment. The Company has maintained the range of
COVID-19 mortality claim cost estimates relative to the level of general
population deaths for the U.S., UK and Canada. The Company estimates that every
additional 10,000 population deaths in the U.S., UK or Canada as a result of
COVID-19 would result in the following corresponding excess mortality claims of
approximately

•$10 million to $20 million in the U.S.;

•$4 million to $8 million in the UK; and

•$10 million to $20 million in Canada.


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Results from Operations - 2022 compared to 2021

The following table summarizes net income for the periods presented.



                                                           Three months ended June 30,                                      Six months ended June 

30,


                                                   2022                 2021            2022 vs 2021               2022                2021            2022 vs 2021
Revenues:                                                              (Dollars in millions, except per share data)
Net premiums                                $    3,230               $ 3,098          $         132          $    6,385             $ 6,012          $         373
Investment income, net of related
expenses                                           754                   759                     (5)              1,564               1,571                     (7)

Investment related gains (losses),
net                                               (254)                  112                   (366)               (380)                414                   (794)
Other revenues                                     157                   168                    (11)                248                 259                    (11)
Total revenues                                   3,887                 4,137                   (250)              7,817               8,256                   (439)
Benefits and Expenses:
Claims and other policy benefits                 2,815                 2,813                      2               6,040               6,005                     35
Interest credited                                  138                   218                    (80)                279                 364                    (85)
Policy acquisition costs and other
insurance expenses                                 393                   339                     54                 748                 672                     76
Other operating expenses                           243                   240                      3                 469                 454                     15
Interest expense                                    42                    43                     (1)                 84                  88                     (4)
Collateral finance and securitization
expense                                              2                     2                      -                   3                   5                     (2)
Total benefits and expenses                      3,633                 3,655                    (22)              7,623               7,588                     35
 Income before income taxes                        254                   482                   (228)                194                 668                   (474)
Provision for income taxes                          55                   138                    (83)                 58                 185                   (127)
Net income                                         199                   344                   (145)                136                 483                   (347)
Net income attributable to
noncontrolling interest                     $        1               $     -                      1          $        1             $     -                      1
Net income available to RGA, Inc.
shareholders                                $      198               $   344          $        (146)         $      135             $   483          $        (348)
Earnings per share:
Basic earnings per share                    $     2.95               $  5.06          $       (2.11)         $     2.01             $  7.11          $       (5.10)
Diluted earnings per share                  $     2.92               $  5.02          $       (2.10)         $     2.00             $  7.06          $       (5.06)

Three months ended June 30, 2022 compared to three months ended June 30, 2021

The decrease in income for the three months ended June 30, 2022, was primarily the result of:



•Changes in the fair value of derivative instruments included in investment
related gains (losses), net. During the three and six month periods ended June
30, 2022, the fair value of these instruments decreased by $114 million and $204
million, compared to an increase (decrease) of $30 million and $(21) million
during the three and six months ended June 30, 2021, respectively.

•Changes in the fair value of embedded derivatives, associated with modco/funds
withheld treaties, decreased investment related gains by $56 million for the
three months ended June 30, 2022, compared to an increase of $16 million for the
three month period June 30, 2021.

•$60 million, pre-tax, of net realized losses, included in investment related gains (losses), net associated with portfolio repositioning compared to $23 million of net realized gains recognized in the prior year.

Six months ended June 30, 2022 compared to six months ended June 30, 2021

The decrease in income for the six months ended June 30, 2022, was primarily the result of:



•Changes in the fair value of embedded derivatives, associated with modco/funds
withheld treaties, decreased investment related gains by $89 million for the six
months ended June 30, 2022, compared to an increase of $66 million for the six
months ended June 30, 2021.

•$85 million, pre-tax, of net realized losses, included in investment related
gains (losses), net associated with portfolio repositioning compared to $177
million of net realized gains recognized in the prior year.

•The prior year benefited from a one-time adjustment of $162 million, pretax,
associated with prior periods that includes $92 million, pretax, to correct the
accounting for equity method limited partnerships to reflect unrealized gains in
investment income, net of related expenses that were previously included in
accumulated other comprehensive income, and a $70 million, pretax, correction
reflected in other investment related gains (losses), net to adjust the carrying
value of certain limited partnerships from cost less impairments to a fair value
approach, using the net asset value ("NAV") per share or its equivalent.

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Foreign currency fluctuations can result in variances in financial statement
line items. Foreign currency increased income before taxes for the three and six
month periods ended June 30, 2022, by $7 million and $13 million, respectively,
primarily due to the weakening of the Japanese Yen compared to the U.S. Dollar.
Unless otherwise stated, all amounts discussed below are net of foreign currency
fluctuations.

Premiums and business growth

The increase in premiums during the three and six month period ended June 30,
2022, is primarily due to new business production. Consolidated assumed life
reinsurance in force decreased from $3,471.7 billion as of June 30, 2021, to
$3,380.9 billion as of June 30, 2022, due to changes in foreign exchange rates
partially offset by new business production. The Company added new business
production, measured by face amount of reinsurance in force, of $215.7 billion
and $220.9 billion during the six months ended June 30, 2022 and 2021,
respectively.

Investment income, net of related expenses and investment related gains (losses), net



The decrease in investment income, net of related expenses is primarily
attributable to the aforementioned accounting correction associated with equity
method limited partnerships recorded in the first quarter of 2021, partially
offset by an increase in the average invested asset base and yield:

•The average invested assets at amortized cost, excluding spread business, was
$34.9 billion for the six months ended June 30, 2022, compared to $33.3 billion
for the six months ended June 30, 2021.

•The average yield earned on investments, excluding spread related business, was
4.63% and 4.64% for the three month periods ended June 30, 2022 and 2021,
respectively, and 4.96% and 5.15% for the six months ended June 30, 2022 and
2021, respectively.

The average yield will vary from year to year depending on several variables,
including the prevailing risk-fee interest rate and credit spread environment,
prepayment fees and make-whole premiums, changes in the mix of the underlying
investments and cash and cash equivalents balances. Variable investment income
from joint ventures and limited partnerships, including unrealized gains and
losses on certain limited partnerships, will also vary from year to year and can
be highly variable based on equity-market performance and the timing of
dividends and distributions on certain investments. Investment income is
allocated to the operating segments based upon average assets and related
capital levels deemed appropriate to support segment operations.

The decrease in investment related gains (losses), net is primarily attributable to the following:

•During the three and six months ended June 30, 2022, the Company repositioned its portfolio generating capital losses of $60 million and $85 million, respectively, compared to net capital gains of $23 million and $177 million during the three and six months ended June 30, 2021, respectively.



•The Company uses various derivative instruments such as interest rate swaps,
credit default swaps and foreign exchange forwards for risk management purposes
that either do not qualify or have not been elected for hedge accounting
treatment. Changes in the fair value of these instruments are included in
investment related gains (losses), net. During the three and six months periods
ended June 30, 2022, the fair value of these instruments decreased by $114
million and $204 million, compared to an increase (decrease) of $30 million and
$(21) million during the three and six months ended June 30, 2021, respectively.
See Note 5 - "Derivative Instruments" in the Notes to Condensed Consolidated
Financial Statements for additional information.

•Changes in the fair value of embedded derivatives, associated with modco/funds
withheld treaties, decreased investment related gains (losses), net by $56
million and $89 million for the three and six month periods ended June 30, 2022,
respectively, compared to an increase of $16 million and $66 million for the
three and six month periods ended June 30, 2021.

•The Company incurred $15 million and $27 million of impairments and change in
allowance for credit losses on fixed maturity securities during the three and
six month periods ended June 30, 2022, respectively, compared to a decrease of
$5 million and $3 of impairments and change in allowance for credit losses
during the three and six month periods ended June 30, 2021, respectively.

•Investment related gains (losses), net, for the first six months of 2021
included the adjustment previously discussed to investments in limited
partnerships considered to be investment companies, which should have been
recognized in prior periods, of $70 million pre-tax to adjust the carrying value
from cost less impairments to the fair value approach, using the net asset value
("NAV") per share or its equivalent.

The effective tax rate on a consolidated basis was 22.1% and 28.5% for the three
months ended June 30, 2022 and 2021, respectively, and 30.1% and 27.6% for the
six months ended June 30, 2022 and 2021, respectively. See Note 9 - "Income Tax"

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in the Notes to Condensed Consolidated Financial Statements for additional information on the Company's consolidated effective tax rates.



Impact of certain derivatives
The Company recognizes in consolidated income, any changes in the fair value of
embedded derivatives on modco or funds withheld treaties, equity index annuities
("EIAs") and variable annuities with guaranteed minimum benefit riders. The
Company utilizes freestanding derivatives to minimize the income statement
volatility due to changes in the fair value of embedded derivatives associated
with guaranteed minimum benefit riders. The following table presents the effect
of embedded derivatives and related freestanding derivatives on income before
income taxes for the periods indicated (dollars in millions):

                                              Three Months Ended June 30,                                  Six Months Ended June 30,
                                     2022               2021             2022 vs 2021             2022              2021           2022 vs 2021
Modco/Funds withheld:
Unrealized gains (losses)        $      (56)         $     16          $         (72)         $     (89)         $    66          $       (155)
Deferred acquisition
costs/retrocession                       31                (7)                    38                 51              (23)                   74
Net effect                              (25)                9                    (34)               (38)              43                   (81)
EIAs:
Unrealized gains (losses)                27                 3                     24                 44               33                    11
Deferred acquisition
costs/retrocession                      (12)               (1)                   (11)               (20)             (17)                   (3)
Net effect                               15                 2                     13                 24               16                     8
Guaranteed minimum benefit
riders:
Unrealized gains (losses)               (11)              (16)                     5                  2                1                     1
Related freestanding
derivatives, net of deferred
acquisition costs/retrocession            1                20                    (19)               (27)             (33)                    6
Net effect                              (10)                4                    (14)               (25)             (32)                    7
Total net effect after
freestanding derivatives         $      (20)         $     15          $         (35)         $     (39)         $    27          $        (66)



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Results of Operations by Segment

U.S. and Latin America Operations



The U.S. and Latin America operations consist of two major segments: Traditional
and Financial Solutions. The Traditional segment primarily specializes in the
reinsurance of individual mortality risk, health and long-term care and to a
lesser extent, group reinsurance. The Financial Solutions segment consists of
Asset-Intensive and Capital Solutions. Asset-Intensive within the Financial
Solutions segment includes coinsurance of annuities and corporate-owned life
insurance policies and to a lesser extent, fee-based synthetic guaranteed
investment contracts, which include investment-only, stable value contracts.
Capital Solutions within the Financial Solutions segment primarily involves
assisting ceding companies in meeting applicable regulatory requirements by
enhancing the ceding companies' financial strength and regulatory surplus
position through relatively low risk reinsurance and other transactions.
Typically, these transactions do not qualify as reinsurance under GAAP, due to
the low-risk nature of the transactions, therefore only the related net fees are
reflected in other revenues on the condensed consolidated statements of income.

The following table summarizes income before income taxes for the Company's U.S. and Latin America operations for the periods presented:



                                           Three Months Ended June 30,                                      Six Months Ended June 30,
(dollars in millions)             2022               2021             2022 vs 2021                2022                 2021             2022 vs 2021
Revenues:
Net premiums                 $     1,645          $  1,593          $          52          $    3,201               $  3,025          $         176
Investment income, net of
related expenses                     461               509                    (48)              1,028                    974                     54
Investment related gains
(losses), net                        (74)               31                   (105)               (139)                    31                   (170)
Other revenues                       114               116                     (2)                175                    174                      1
Total revenues                     2,146             2,249                   (103)              4,265                  4,204                     61
Benefits and expenses:
Claims and other policy
benefits                           1,431             1,439                     (8)              3,244                  3,239                      5
Interest credited                    118               200                    (82)                242                    331                    (89)
Policy acquisition costs and
other insurance expenses             268               238                     30                 517                    469                     48
Other operating expenses              59                51                      8                 114                     99                     15
Total benefits and expenses        1,876             1,928                    (52)              4,117                  4,138                    (21)

Income before income taxes $ 270 $ 321 $

   (51)         $      148               $     66          $          82


The decrease in income before income taxes in the second quarter of 2022 was
primarily driven by a decrease in investment related gains (losses) in the
Financial Solutions segment, as well as a decrease in the fair value of the
embedded derivative associated with modco/funds withheld treaties. The decrease
was partially offset by favorable claims experience within the Individual
Mortality line of business. The increase in income before income taxes for the
first six months of 2022 is attributable primarily to higher investment income
related to strong variable investment income in the first quarter combined with
increases in net premiums, and favorable claims experience within the Individual
Mortality line of business. Partially offsetting the six month increases were
decreases in investment related gains (losses) and a decrease in the fair value
of the embedded derivative associated with modco/funds withheld treaties.


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Traditional Reinsurance

                                               Three Months Ended June 30,                                         Six Months Ended June 30,
(dollars in millions)                  2022                2021           2022 vs 2021                2022                     2021                2022 vs 2021
Revenues:
Net premiums                      $     1,631           $ 1,578          $         53          $        3,172           $        2,997           $         175
Investment income, net of related
expenses                                  209               233                   (24)                    513                      440                      73
Investment related gains
(losses), net                              19                 1                    18                      34                        7                      27
Other revenues                              9                 4                     5                      16                        9                       7
Total revenues                          1,868             1,816                    52                   3,735                    3,453                     282
Benefits and expenses:
Claims and other policy benefits        1,389             1,418                   (29)                  3,154                    3,158                      (4)
Interest credited                          17                18                    (1)                     34                       35                      (1)
Policy acquisition costs and
other insurance expenses                  208               206                     2                     416                      388                      28
Other operating expenses                   45                39                     6                      88                       75                      13
Total benefits and expenses             1,659             1,681            

      (22)                  3,692                    3,656                 

36


Income (loss) before income taxes $       209           $   135          $         74          $           43           $         (203)          $      

246


Key metrics:
Life reinsurance in force                                                                        $1,650.5 billion         $1,619.4 billion
Claims and other policy benefits
as a percentage of net premiums
("loss ratios")                          85.2   %          89.9  %                                       99.4   %                105.4   %
Policy acquisition costs and
other insurance expenses as a
percentage of net premiums               12.8   %          13.1  %                                       13.1   %                 12.9   %
Other operating expenses as a
percentage of net premiums                2.8   %           2.5  %                                        2.8   %                  2.5   %


The increase in income before income taxes in the second quarter for the U.S.
and Latin America Traditional segment was primarily the result of favorable
claims experience within the Individual Mortality business, partially offset by
less favorable claims experience within the U.S. Group and Latin American
markets. The increase in income before taxes for the first six months was
primarily the result of higher investment income related to variable investment
income, increased premium, and favorable claims experience within the Individual
Mortality business, partially offset by less favorable claims experience within
the U.S. Group and Latin American markets.

Revenues



•The increase in net premiums of $53 million for the second quarter was
primarily due to organic growth as well as new sales. The increase in net
premiums for the six month period was primarily due to organic growth and new
sales of $95 million, as well as $47 million in restructuring of a transaction
that was previously recognized as a low risk or deposit transaction in Latin
America and $33 million related to the partial recapture of a large reinsurance
transaction in the second quarter of 2021. The segment added new life business
production, measured by face amount of reinsurance in force, of $32.7 billion
and $35.7 billion during the second quarter of 2022 and 2021, respectively, and
$72.2 billion and $64.2 billion during the first six months of 2022 and 2021,
respectively.

•The decrease in net investment income for the three month period ended June 30,
2022, was primarily due to lower variable investment income. The increase in net
investment income for the six month period was primarily the result of higher
variable investment income associated with investments in real estate joint
ventures, limited partnerships, and private equity funds.

Benefits and expenses



•The decreases in the loss ratio for the three and six months ended June 30,
2022, as compared to the same periods in 2021, were primarily due to favorable
COVID-19 and non-COVID-19 experience, mainly within the Individual Mortality
line of business. While the cause of death is not yet available for all claims,
the Company estimates that approximately $258 million of claims for the six
months ended June 30, 2022, were attributable to COVID-19.

•The increase in policy acquisition costs and other insurance expenses as a
percentage of net premiums for the six months ended June 30, 2022, was primarily
attributable to the restructure of a transaction in Latin America.


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Financial Solutions



For the three months ended June 30,                           2022                                                            2021                                                       2022 vs 2021
                                                                 Capital                                                         Capital                                                         Capital
                                     Asset-Intensive            Solutions            Total           Asset-Intensive            Solutions            Total           Asset-Intensive            Solutions            Total

(dollars in millions)
Revenues:
Net premiums                        $            14          $          -          $    14          $            15          $          -          $   15          $             (1)         $          -          $   (1)
Investment income, net of related
expenses                                        251                     1              252                      276                     -             276                       (25)                    1             (24)
Investment related gains (losses),
net                                             (93)                    -              (93)                      30                     -              30                      (123)                    -            (123)
Other revenues                                   31                    74              105                       85                    27             112                       (54)                   47              (7)
Total revenues                                  203                    75              278                      406                    27             433                      (203)                   48            (155)
Benefits and expenses:
Claims and other policy benefits                 42                     -               42                       21                     -              21                        21                     -              21
Interest credited                               101                     -              101                      182                     -             182                       (81)                    -             (81)
Policy acquisition costs and other
insurance expenses                               59                     1               60                       32                     -              32                        27                     1              28
Other operating expenses                         12                     2               14                        8                     4              12                         4                    (2)              2
Total benefits and expenses                     214                     3              217                      243                     4             247                       (29)                   (1)            (30)
Income before income taxes          $           (11)         $         72          $    61          $           163          $         23          $  186          $           (174)         $         49          $ (125)


For the six months ended June 30,                             2022                                                            2021                                                       2022 vs 2021
                                                                  Capital                                                        Capital                                                         Capital
                                      Asset-Intensive            Solutions            Total          Asset-Intensive            Solutions            Total           Asset-Intensive            Solutions            Total

(dollars in millions)
Revenues:
Net premiums                        $             29          $          -          $   29          $            28          $          -          $   28          $              1          $          -          $    1
Investment income, net of related
expenses                                         513                     2             515                      533                     1             534                       (20)                    1             (19)
Investment related gains (losses),
net                                             (173)                    -            (173)                      24                     -              24                      (197)                    -            (197)
Other revenues                                    58                   101             159                      111                    54             165                       (53)                   47              (6)
Total revenues                                   427                   103             530                      696                    55             751                      (269)                   48            (221)
Benefits and expenses:
Claims and other policy benefits                  90                     -              90                       81                     -              81                         9                     -               9
Interest credited                                208                     -             208                      296                     -             296                       (88)                    -             (88)
Policy acquisition costs and other
insurance expenses                                99                     2             101                       79                     2              81                        20                     -              20
Other operating expenses                          21                     5              26                       17                     7              24                         4                    (2)              2
Total benefits and expenses                      418                     7             425                      473                     9             482                       (55)                   (2)            (57)
Income before income taxes          $              9          $         96          $  105          $           223          $         46          $  269          $           (214)         $         50          $ (164)

Asset-Intensive Reinsurance



The decreases in income before income taxes for U.S. and Latin America Financial
Solutions' Asset-intensive segment for the three and six months ended June 30,
2022, were primarily due to higher investment related losses, net in coinsurance
portfolios and the decrease in fair value of the embedded derivatives related to
modco/funds withheld treaties.

The invested asset base, at amortized cost, supporting this segment decreased to $23.8 billion as of June 30, 2022, from $26.7 billion as of June 30, 2021.

•The decrease in the asset base was primarily due to $1.6 billion of retrocessions completed in the second half of 2021 and net run off in existing in force transactions.



•As of June 30, 2022 and 2021, $4.3 billion and $4.8 billion, respectively, of
the invested assets were funds withheld at interest of which greater than 90%
was associated with two clients.


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Impact of certain derivatives



Income from the asset-intensive business tends to be volatile due to changes in
the fair value of certain derivatives, including embedded derivatives associated
with reinsurance treaties structured on a modco or funds withheld basis, as well
as embedded derivatives associated with the Company's reinsurance of
equity-indexed annuities and variable annuities with guaranteed minimum benefit
riders. Fluctuations occur period to period primarily due to changing investment
conditions including, but not limited to, interest rate movements (including
risk-free rates and credit spreads), implied volatility, the Company's own
credit risk and equity market performance, all of which are factors in the
calculations of fair value. Therefore, management believes it is helpful to
distinguish between the effects of changes in these derivatives, net of related
hedging activity, and the primary factors that drive profitability of the
underlying treaties, namely investment income, fee income (included in other
revenues), and interest credited. These fluctuations are considered unrealized
by management and do not affect current cash flows, crediting rates or spread
performance on the underlying treaties.

The following table summarizes the asset-intensive results and quantifies the
impact of these embedded derivatives for the periods presented. Revenues before
certain derivatives, benefits and expenses before certain derivatives, and
income before income taxes and certain derivatives, should not be viewed as
substitutes for GAAP revenues, GAAP benefits and expenses, and GAAP income
before income taxes.

(dollars in millions)                                  Three months ended June 30,               Six months ended June 30,
                                                         2022                 2021                 2022                2021
Revenues:
Total revenues                                     $          203          $    406          $         427          $    696
Less:
Embedded derivatives - modco/funds withheld
treaties                                                      (75)               14                   (123)               59
Guaranteed minimum benefit riders and
related free standing derivatives                              (5)                -                    (28)              (65)
Revenues before certain derivatives                           283               392                    578               702
Benefits and expenses:
Total benefits and expenses                                   214               243                    418               473

Less:


Embedded derivatives - modco/funds withheld
treaties                                                      (31)                6                    (51)               23
Guaranteed minimum benefit riders and
related free standing derivatives                               5                (4)                    (3)              (33)
Equity-indexed annuities                                      (15)               (2)                   (24)              (16)
Benefits and expenses before certain
derivatives                                                   255               243                    496               499
Income before income taxes:
Income before income taxes                                    (11)              163                      9               223

Less:


Embedded derivatives - modco/funds withheld
treaties                                                      (44)                8                    (72)               36
Guaranteed minimum benefit riders and
related free standing derivatives                             (10)                4                    (25)              (32)
Equity-indexed annuities                                       15                 2                     24                16
Income before income taxes and certain
derivatives                                        $           28          

$ 149 $ 82 $ 203




Embedded Derivatives - Modco/Funds Withheld Treaties - Represents the change in
the fair value of embedded derivatives on funds withheld at interest associated
with treaties written on a modco or funds withheld basis. The fair value changes
of embedded derivatives are reflected in revenues, while the related impact on
deferred acquisition expenses is reflected in benefits and expenses. The
Company's utilization of a credit valuation adjustment did not have a material
effect on the change in fair value of these embedded derivatives for the three
and six months ended June 30, 2022 and 2021.

The change in fair value of the embedded derivatives related to modco/funds
withheld treaties, net of deferred acquisition costs increased (decreased)
income before income taxes by $(44) million and $8 million for the second
quarter and $(72) million and $36 million for the six months ended June 30, 2022
and 2021, respectively. The decrease in revenue for the second quarter and six
months ended June 30, 2022, was primarily driven by the impact of higher
interest rates of $(56) million and $(87) million and the impact of widening
credit spreads of $(30) million and $(56) million, respectively, on the fair
value calculation. The revenue for the second quarter ended June 30, 2021, was
primarily due to natural run-off of the funds withheld. The revenue for the six
months ended June 30, 2021, was primarily driven by tightening credit spreads of
$71 million.

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Guaranteed Minimum Benefit Riders - Represents the impact related to guaranteed
minimum benefits associated with the Company's reinsurance of variable
annuities. The fair value changes of the guaranteed minimum benefits along with
the changes in fair value of the free standing derivatives (interest rate swaps,
financial futures and equity options), purchased by the Company to substantially
hedge the liability are reflected in revenues, while the related impact on
deferred acquisition expenses is reflected in benefits and expenses. Changes in
fair values of the embedded derivatives on guaranteed minimum benefits are net
of an increase (decrease) in investment related gains (losses), net of $2
million and $(8) million for the second quarters of 2022 and 2021, respectively,
and $(11) million and $(63) million for the six months ended June 30, 2022 and
2021, respectively, associated with the Company's utilization of a credit
valuation adjustment.

The change in fair value of the guaranteed minimum benefits, after allowing for
changes in the associated free standing derivatives, increased (decreased)
income before income taxes by $(10) million and $4 million for the second
quarter and $(25) million and $(32) million for the six months ended June 30,
2022 and 2021, respectively. The revenue for the three months ended June 30,
2022, was primarily driven by higher interest rates of $(8) million, net of
hedging. The decrease in income for the six months ended June 30, 2022, was
primarily due to higher interest rates of $(9) million, net of hedging and an
$(11) million decrease in the credit valuation adjustment which has the impact
of increasing the fair value of the guaranteed minimum benefit liability, net of
related impact on deferred acquisition expenses. The revenue for the six months
ended June 30, 2021, was primarily driven by a $(63) million decrease in the
credit valuation adjustment which has the impact of increasing the fair value of
the guaranteed minimum benefit liability, net of related impact on deferred
acquisition expenses.

Equity-Indexed Annuities - Represents changes in the liability for
equity-indexed annuities in excess of changes in account value, after
adjustments for related deferred acquisition expenses. The change in fair value
of embedded derivative liabilities associated with equity-indexed annuities
increased income before income taxes by $15 million and $2 million for the
second quarters of 2022 and 2021, respectively, and $24 million and $16 million
for the six months ended June 30, 2022 and 2021, respectively.  The increase in
income for the second quarter and first six months of 2022 was primarily due to
an increase in risk free interest rates which has the impact of lowering the
fair value of the liability.

The changes in derivatives discussed above are considered unrealized by
management and do not affect current cash flows, crediting rates or spread
performance on the underlying treaties. Fluctuations occur period to period
primarily due to changing investment conditions including, but not limited to,
interest rate movements (including benchmark rates and credit spreads), credit
valuation adjustments, implied volatility and equity market performance, all of
which are factors in the calculations of fair value. Therefore, management
believes it is helpful to distinguish between the effects of changes in these
derivatives and the primary factors that drive profitability of the underlying
treaties, namely investment income, fee income (included in other revenues) and
interest credited.

Discussion and analysis before certain derivatives:



•Income before income taxes and certain derivatives decreased by $121 million
for both the three and six months ended June 30, 2022, as compared to the same
periods in 2021. The decrease for the three months ended June 30, 2022, was
primarily due to a $(61) million decrease in investment related gains (losses),
net in coinsurance and funds withheld portfolios. Additionally, the prior period
included a one-time fee of $34 million associated with a new transaction and
favorable prior year policyholder experience including impacts from COVID-19 of
$13 million. The decrease for the six months ended June 30, 2022, was primarily
due to $(88) million lower investment related gains (losses), net in coinsurance
and funds withheld portfolios, partially offset by $22 million of higher
variable investment income. Additionally, the prior period included a one-time
fee of $34 million associated with a new transaction and favorable prior year
policyholder experience including impacts from COVID-19 of $13 million.

•Revenue before certain derivatives decreased by $109 million and by $124
million for the three and six months ended June 30, 2022, respectively, as
compared to the same periods in 2021. The decrease for the three months ended
June 30, 2022, was primarily due to a $(39) million change in the fair value of
equity options associated with the reinsurance of EIAs and $(33) million
decrease in investment related gains (losses), net in coinsurance and funds
withheld portfolios. Additionally, the prior period included a one-time fee of
$34 million associated with a new transaction. The decrease for the six months
ended June 30, 2022, was primarily due to $(72) million change in fair value of
equity options associated with the reinsurance of EIAs and $(58) million
decrease in investment related gains (losses), net in coinsurance and funds
withheld portfolios, partially offset by $28 million of higher variable
investment income. Additionally, the prior period included a one-time fee of $34
million associated with a new transaction. The effect on investment income
related to equity options is substantially offset by a corresponding change in
interest credited.

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•Benefits and expenses before certain derivatives increased (decreased) by $12
million and $(3) million for the three and six months ended June 30, 2022, as
compared to the same period in 2021. The increase in the second quarter of 2022
was primarily due to $23 million higher amortization of deferred acquisition
costs associated with investment related gains (losses), net in coinsurance and
funds withheld portfolios and a $14 million increase in other insurance expenses
related to a funds withheld transaction which is retroceded to a third party.
These expense increases were partially offset by $38 million lower interest
credited associated with reinsurance of EIAs. Additionally, the prior period
included favorable policyholder experience including impacts from COVID-19 of
$13 million. The decrease in the first six months of 2022 was due to $70 million
lower interest credited associated with the reinsurance of EIAs, and favorable
policyholder experience of $13 million in the prior year. The effect on interest
credited related to equity options is substantially offset by a corresponding
increase in investment income. The decreases in interest credited and
policyholder benefits was partially offset by $24 million higher amortization of
deferred acquisition costs associated with investment related gains (losses),
net in coinsurance and funds withheld portfolios and a $24 million in other
insurance expenses related to a funds withheld transactions which is retroceded
to a third party.

Capital Solutions

Income before income taxes for the U.S. and Latin America Capital Solutions'
business increased $49 million, or 213.0%, and $50 million, or 108.7%, for the
three and six months ended June 30, 2022, as compared to the same periods in
2021. The increase was primarily due to a recapture fee earned on a terminated
transaction. Fees earned from this business can vary significantly depending on
the size of the transactions and the timing of their completion and therefore
can fluctuate from period to period.

•At June 30, 2022 and 2021, the amount of reinsurance assumed from client companies, as measured by pre-tax statutory surplus, risk based capital and other financial structures was $24.1 billion and $22.3 billion, respectively.

Canada Operations



The Company conducts reinsurance business in Canada primarily through RGA
Canada, which assists clients with capital management activity and mortality and
morbidity risk management. 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.

                                          Three Months Ended June 30,                                   Six Months Ended June 30,
(dollars in millions)            2022               2021             2022 vs 2021             2022              2021             2022 vs 2021
Revenues:
Net premiums                 $      339          $    324          $          15          $     666          $    627          $          39
Investment income, net of
related expenses                     57                63                     (6)               113               123                    (10)
Investment related gains
(losses), net                        (6)                -                     (6)                (5)                2                     (7)
Other revenues                        4                 5                     (1)                 7                 9                     (2)
Total revenues                      394               392                      2                781               761                     20
Benefits and expenses:
Claims and other policy
benefits                            317               298                     19                628               582                     46
Interest credited                     -                 -                      -                  -                 -                      -
Policy acquisition costs and
other insurance expenses             46                47                     (1)                93                92                      1
Other operating expenses             11                11                      -                 21                21                      -
Total benefits and expenses         374               356                     18                742               695                     47

Income before income taxes $ 20 $ 36 $

(16) $ 39 $ 66 $ (27)




•The decreases in income before income taxes for the three and six months ended
June 30, 2022, as compared to the same periods in 2021, were primarily due to
unfavorable claims experience in the individual mortality line of business and
lower investment income, partially offset by favorable claims experience in the
creditor line of business and favorable longevity experience.

•Foreign currency fluctuations can result in variances in the financial
statement line items. Foreign currency fluctuations resulted in a decrease in
income before incomes taxes of $1 million for both the three and six months
ended June 30, 2022. Unless otherwise stated, all amounts discussed below are
net of foreign currency fluctuations.

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Traditional Reinsurance

                                              Three Months Ended June 30,                                      Six Months Ended June 30,
(dollars in millions)                 2022              2021            2022 vs 2021               2022                   2021               2022 vs 2021
Revenues:
Net premiums                      $     314           $  301          $          13          $        618           $         581          $          37
Investment income, net of related
expenses                                 58               63                     (5)                  113                     123                    

(10)


Investment related gains
(losses), net                            (6)               -                     (6)                   (5)                      2                     (7)
Other revenues                            1                2                     (1)                    3                       3                      -
Total revenues                          367              366                      1                   729                     709                     20
Benefits and expenses:
Claims and other policy benefits        295              277                     18                   595                     543                     52
Interest credited                         -                -                      -                     -                       -                      -
Policy acquisition costs and
other insurance expenses                 46               46                      -                    92                      91                      1
Other operating expenses                 10               11                     (1)                   20                      19                      1
Total benefits and expenses             351              334                     17                   707                     653                     54
Income (loss) before income taxes $      16           $   32          $         (16)         $         22           $          56          $         

(34)


Key metrics:
Life reinsurance in force                                                                      $477.2 billion         $468.3 billion
Claims and other policy benefits
as a percentage of net premiums
("loss ratios")                        93.9   %         92.0  %                                      96.3   %                93.5  %
Policy acquisition costs and
other insurance expenses as a
percentage of net premiums             14.6   %         15.3  %                                      14.9   %                15.7  %
Other operating expenses as a
percentage of net premiums              3.2   %          3.7  %                                       3.2   %                 3.3  %


The decreases in income before income taxes for the three and six months ended
June 30, 2022, were primarily due to unfavorable claims experience in the
individual mortality line of business and lower investment income, partially
offset by favorable claims experience in the creditor line of business.

Revenues



•The segment added new life business production, measured by face amount of
reinsurance in force, of $12.8 billion and $8.5 billion for the second quarter
of 2022 and 2021, respectively, and $25.5 billion, and $22.7 billion during the
first six months of 2022 and 2021, respectively.

•The decreases in net investment income for the three and six months ended June
30, 2022, were primarily due to decreased variable investment income, partially
offset by an increase in the invested asset base.

Benefits and expenses



•The increases in the loss ratio for the three and six months ended June 30,
2022, as compared to the same periods in 2021, were primarily due to unfavorable
claims experience in the individual mortality line of business. While the cause
of death is not yet available for all claims, the Company estimates that
approximately $22 million of claims for the six months ended June 30, 2022, were
attributable to COVID-19.

Financial Solutions

                                              Three Months Ended June 30,                                 Six Months Ended June 30,
(dollars in millions)                  2022              2021           2022 vs 2021             2022               2021           2022 vs 2021
Revenues:
Net premiums                      $        25          $   23          $          2          $       48          $    46          $          2
Investment income, net of related
expenses                                   (1)              -                    (1)                  -                -                     -
Investment related gains
(losses), net                               -               -                     -                   -                -                     -
Other revenues                              3               3                     -                   4                6                    (2)
Total revenues                             27              26                     1                  52               52                     -
Benefits and expenses:
Claims and other policy benefits           22              21                     1                  33               39                    (6)
Interest credited                           -               -                     -                   -                -                     -
Policy acquisition costs and
other insurance expenses                    -               1                    (1)                  1                1                     -
Other operating expenses                    1               -                     1                   1                2                    (1)
Total benefits and expenses                23              22                     1                  35               42                    (7)

Income (loss) before income taxes $ 4 $ 4 $

- $ 17 $ 10 $ 7


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The increase in income before income taxes for the six months ended June 30,
2022, was primarily a result of more favorable mortality experience on longevity
business as compared to the same period in 2021.

Europe, Middle East and Africa Operations



The Europe, Middle East and Africa ("EMEA") operations include business
primarily generated by offices in France, Germany, Ireland, Italy, the Middle
East, the Netherlands, Poland, South Africa, Spain and the United Kingdom
("UK"). EMEA 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.

                                          Three Months Ended June 30,                                   Six Months Ended June 30,
(dollars in millions)            2022               2021             2022 vs 2021              2022               2021            2022 vs 2021
Revenues:
Net premiums                 $      546          $    517          $          29          $     1,125          $  1,034          $         91
Investment income, net of
related expenses                     55                74                    (19)                 112               142                   (30)
Investment related gains
(losses), net                       (22)                2                    (24)                  (6)               18                   (24)
Other revenues                        2                 5                     (3)                   8                 7                     1
Total revenues                      581               598                    (17)               1,239             1,201                    38
Benefits and expenses:
Claims and other policy
benefits                            471               456                     15                  989             1,000                   (11)
Interest credited                    (8)                2                    (10)                 (17)                1                   (18)
Policy acquisition costs and
other insurance expenses             39                28                     11                   65                59                     6
Other operating expenses             44                41                      3                   88                78                    10
Total benefits and expenses         546               527                     19                1,125             1,138                   (13)

Income before income taxes $ 35 $ 71 $

(36) $ 114 $ 63 $ 51




•The decrease in income before income taxes for the three months ended June 30,
2022, was primarily the result of decreases in net investment income and
investment related gains (losses), net. The increase in income before income
taxes for the six months ended June 30, 2022, as compared to the same period in
2021, was primarily due to increased net premiums, as well as improved mortality
experience.

•Foreign currency fluctuations can result in variances in the financial
statement line items. Foreign currency exchange fluctuations resulted in
decreases in income before income taxes of $5 million and $7 million for the
three and six months ended June 30, 2022, respectively, as compared to the same
periods in 2021. Unless otherwise stated, all amounts discussed below are net of
foreign currency fluctuations.

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Traditional Reinsurance

                                              Three Months Ended June 30,                                     Six Months Ended June 30,
(dollars in millions)                 2022              2021           2022 vs 2021               2022                   2021              2022 vs 2021
Revenues:
Net premiums                      $     427           $  433          $         (6)         $        878           $         871          $          7
Investment income, net of related
expenses                                 22               24                    (2)                   44                      44                     -
Investment related gains
(losses), net                             -                -                     -                     -                       -                     -
Other revenues                           (2)               2                    (4)                    1                       1                     -
Total revenues                          447              459                   (12)                  923                     916                     7
Benefits and expenses:
Claims and other policy benefits        377              414                   (37)                  804                     883                   (79)
Interest credited                         -                -                     -                     -                       -                     -
Policy acquisition costs and
other insurance expenses                 37               27                    10                    62                      56                     6
Other operating expenses                 31               30                     1                    61                      57                     4
Total benefits and expenses             445              471                   (26)                  927                     996                   (69)
Income (loss) before income taxes $       2           $  (12)         $     

14 $ (4) $ (80) $ 76 Key metrics: Life reinsurance in force

$756.4 billion         $861.4 billion
Claims and other policy benefits
as a percentage of net premiums
("loss ratios")                        88.3   %         95.6  %                                     91.6   %               101.4  %
Policy acquisition costs and
other insurance expenses as a
percentage of net premiums              8.7   %          6.2  %                                      7.1   %                 6.4  %
Other operating expenses as a
percentage of net premiums              7.3   %          6.9  %                                      6.9   %                 6.5  %


The increase in income before income taxes for the three and six months ended
June 30, 2022, as compared to the same periods in 2021 were primarily due to an
improvement in individual life mortality experience and increased net premiums
in the first six months of 2022.

Revenues



•The increases in net premiums for the three and six months ended June 30, 2022,
as compared to the same periods in 2021, were due to an in increase in business
volume on new and existing treaties.

•The segment added new life business production, measured by face amount of
reinsurance in force, of $45.1 billion and $87.8 billion during the second
quarter of 2022 and 2022, respectively, and $95.6 billion and $115.4 billion
during the six months ended June 30, 2022 and 2021, respectively.

Benefits and expenses



•The decreases in the loss ratio for the second quarter and first six months of
2022 were due to improved mortality experience. While the cause of death is not
available for all claims, the Company estimates for the six months ended June
30, 2022, that approximately $12 million of claims were primarily attributable
to COVID-19.

Financial Solutions

                                              Three Months Ended June 30,                                 Six Months Ended June 30,
(dollars in millions)                 2022              2021            2022 vs 2021             2022              2021            2022 vs 2021
Revenues:
Net premiums                      $      119          $   84          $          35          $     247          $   163          $          84
Investment income, net of related
expenses                                  33              50                    (17)                68               98                    (30)
Investment related gains
(losses), net                            (22)              2                    (24)                (6)              18                    (24)
Other revenues                             4               3                      1                  7                6                      1
Total revenues                           134             139                     (5)               316              285                     31
Benefits and expenses:
Claims and other policy benefits          94              42                     52                185              117                     68
Interest credited                         (8)              2                    (10)               (17)               1                    (18)
Policy acquisition costs and
other insurance expenses                   2               1                      1                  3                3                      -
Other operating expenses                  13              11                      2                 27               21                      6
Total benefits and expenses              101              56                     45                198              142                     56

Income (loss) before income taxes $ 33 $ 83 $

(50) $ 118 $ 143 $ (25)


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The decreases in income before income taxes for the three and six months ended June 30, 2022, compared to the same periods in 2021, were primarily due to decreases in investment income, net of related expenses, investment related gains (losses), net and unfavorable claims experience, partially offset by increases in net premiums.

Revenues



•The increases in net premiums for the three and six months ended June 30, 2022,
as compared to the same periods in 2021, were primarily due to increased volumes
of closed longevity block business.

•The decreases in net investment income for the three and six months ended June
30, 2022, as compared to the same periods in 2021, were primarily related lower
yield and lower income associated with unit-linked policies which fluctuate with
market performance and is offset by a decrease in interest credited related to
the unit-linked liabilities.

•The decreases in investment related gains (losses), net for the three and six
month periods were primarily due to fluctuations in the fair market value of CPI
swap derivatives due to changes in future inflation expectations and lower
investment related gains on fixed-income securities, respectively.

Benefits and expenses



•The increases in claims and other policy benefits for the three and six months
ended June 30, 2022, as compared to the same periods in 2021, were the result of
increased volumes of closed longevity block business.

Asia Pacific Operations



The Asia Pacific operations include business generated by its offices
principally in Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand,
Singapore, South Korea and Taiwan. 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.

                                          Three Months Ended June 30,                                     Six Months Ended June 30,
(dollars in millions)            2022               2021             2022 vs 2021               2022                 2021            2022 vs 2021

Revenues:


Net premiums                 $      700          $    664          $          36          $    1,393              $  1,326          $         67
Investment income, net of
related expenses                     89                65                     24                 166                   126                    40
Investment related gains
(losses), net                      (108)               15                   (123)               (189)                   26                  (215)
Other revenues                       48                13                     35                  68                    30                    38
Total revenues                      729               757                    (28)              1,438                 1,508                   (70)
Benefits and expenses:
Claims and other policy
benefits                            596               620                    (24)              1,179                 1,184                    (5)
Interest credited                    22                15                      7                  42                    30                    12
Policy acquisition costs and
other insurance expenses             64                52                     12                 123                   106                    17
Other operating expenses             55                51                      4                 107                   100                     7
Total benefits and expenses         737               738                     (1)              1,451                 1,420                    31

Income before income taxes $ (8) $ 19 $

  (27)         $      (13)             $     88          $       (101)


•The decreases in income before income taxes for the three and six months ended
June 30, 2022, were primarily due to unfavorable fluctuations in the fair value
of derivatives within the Financial Solutions business, partially offset by
increases in net premiums and investment income, net.

•Foreign currency fluctuations can result in variances in the financial
statement line items. Foreign currency fluctuations resulted in an increase in
income before income taxes of $11 million and $19 million for the three and six
months ended June 30, 2022, as compared to the same periods in 2021. Unless
otherwise stated, all amounts discussed below are net of foreign currency
fluctuations.

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Traditional Reinsurance

                                              Three Months Ended June 30,                                       Six Months Ended June 30,
(dollars in millions)                 2022              2021           2022 vs 2021               2022                        2021              2022 vs 2021
Revenues:
Net premiums                      $     640           $  616          $         24          $       1,290               $       1,225          $         65
Investment income, net of related
expenses                                 33               34                    (1)                    66                          67                    (1)
Investment related gains
(losses), net                             5                -                     5                      5                          (1)                    6
Other revenues                            8                3                     5                     13                           9                     4
Total revenues                          686              653                    33                  1,374                       1,300                    74
Benefits and expenses:
Claims and other policy benefits        537              578                   (41)                 1,079                       1,096                   (17)
Interest credited                         -                -                     -                      -                           -                     -
Policy acquisition costs and
other insurance expenses                 42               41                     1                     89                          84                     5
Other operating expenses                 49               46                     3                     97                          91                     6
Total benefits and expenses             628              665                   (37)                 1,265                       1,271                    (6)
Income (loss) before income taxes $      58           $  (12)         $         70          $         109               $          29          $       

80


Key metrics:
Life reinsurance in force                                                                      $486.1 billion             $516.1 billion
Claims and other policy benefits
as a percentage of net premiums
("loss ratios")                        83.9   %         93.8  %                                      83.6   %                    89.5  %
Policy acquisition costs and
other insurance expenses as a
percentage of net premiums              6.6   %          6.7  %                                       6.9   %                     6.9  %
Other operating expenses as a
percentage of net premiums              7.7   %          7.5  %                                       7.5   %                     7.4  %


The increases in income before income taxes for the three and six months ended
June 30, 2022, as compared to the same periods in 2021 were primarily the result
of an increase in net premiums and favorable claims experience, partially offset
by increases in expenses across the segment.

Revenues



•The increases in net premiums for the three and six months ended June 30, 2022,
as compared to the same periods in 2021 were primarily due to continued business
growth in the segment related to continued growth in the segment.

•The segment added new life business production, measured by face amount of
reinsurance in force, of $5.7 billion and $10.9 billion during the second
quarter of 2022 and 2021, respectively, and $22.3 billion and $18.5 billion
during the six months ended June 30, 2022 and 2021, respectively, due to new
business production.

Benefits and expenses

•The decreases in the loss ratio for the three and six months ended June 30,
2022, as compared to the same periods in 2021 were primarily due to favorable
claims experience across the segment due to improved COVID-19 experience,
primarily in India, and favorable claims experience, primarily in Hong Kong.
While the cause of death is not yet available for all claims, the Company
estimates for the six months ended June 30, 2022, that approximately $20 million
of claims were attributable to COVID-19.

Financial Solutions

                                              Three Months Ended June 30,                                 Six Months Ended June 30,
(dollars in millions)                 2022              2021            2022 vs 2021             2022               2021           2022 vs 2021

Revenues:


Net premiums                      $       60          $   48          $          12          $      103          $   101          $          2
Investment income, net of related
expenses                                  56              31                     25                 100               59                    41
Investment related gains
(losses), net                           (113)             15                   (128)               (194)              27                  (221)
Other revenues                            40              10                     30                  55               21                    34
Total revenues                            43             104                    (61)                 64              208                  (144)
Benefits and expenses:
Claims and other policy benefits          59              42                     17                 100               88                    12
Interest credited                         22              15                      7                  42               30                    12
Policy acquisition costs and
other insurance expenses                  22              11                     11                  34               22                    12
Other operating expenses                   6               5                      1                  10                9                     1
Total benefits and expenses              109              73                     36                 186              149                    37

Income (loss) before income taxes $ (66) $ 31 $

(97) $ (122) $ 59 $ (181)


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The decreases in income before income taxes for the second quarter and first six
months of 2022 were primarily due to unfavorable fluctuations in the fair value
of derivatives. The invested asset base supporting asset-intensive transactions
increased to $10.7 billion as of June 30, 2022, from $6.9 billion as of June 30,
2021. The increase in the asset base compared to 2021 was primarily due to $3.7
billion from recently executed transactions and net organic growth of $1.0
billion from existing inforce blocks. The amount of reinsurance assumed from
client companies, as measured by pre-tax statutory surplus, risk based capital
and other financial reinsurance structures was $0.9 billion and $1.6 billion for
the period ended June 30, 2022 and 2021, 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 premium and claims and other policy benefits for the three
months ended June 30, 2022, as compared to the same period in 2021 is
attributable to the impact of recently executed asset-intensive transactions.
The increase in net premiums for the six months ended June 30, 2022, as compared
to 2021 is attributable to new asset-intensive business, partially offset by
lower contributions from single premium asset-intensive transactions.

•The Company estimates for the six months ended June 30, 2022, that approximately $4 million of claims were attributable to COVID-19.



•The increases in investment income for the three and six months ended June 30,
2022, as compared to the same periods in 2021 were primarily due to the increase
in the asset base.

•The decreases in investment related gains (losses), net for the second quarter
and six months ended June 30, 2022, were primarily due to the decrease in fair
value of derivatives of $(106) million and $(196) million, respectively, due to
the weakening of the Japanese yen, higher interest rates and widening credit
spreads.

•The increases in other revenues for the second quarter and six months ended June 30, 2022, were primarily attributable to surrender and market value adjustment charges of $21 million due to higher lapses.

Corporate and Other



Corporate and Other revenues primarily include investment income from
unallocated invested assets, investment related gains and losses and service
fees. Corporate and Other expenses consist of the offset to capital charges
allocated to the operating segments within the policy acquisition costs and
other insurance income line item, unallocated overhead and executive costs,
interest expense related to debt, and the investment income and expense
associated with the Company's Funding Agreement Backed Notes ("FABN") program,
collateral finance and securitization transactions and service business
expenses. Additionally, Corporate and Other includes results from certain
wholly-owned subsidiaries, such as RGAX, and joint ventures that, among other
activities, develop and market technology, and provide consulting and
outsourcing solutions for the insurance and reinsurance industries. The Company
continues to invest in this area in an effort to both support its clients and
accelerate the development of new solutions and services to increase consumer
engagement within the life insurance industry and hence generate new future
revenue streams.

(dollars in millions)                            Three months ended June 30,                                Six months ended June 30,
                                         2022              2021            2022 vs 2021             2022             2021           2022 vs 2021
Revenues:
Net premiums                         $        -          $    -          $ 

- $ - $ - $ - Investment income, net of related expenses

                                     92              48                     44                145             206                   (61)
Investment related gains (losses),
net                                         (44)             64                   (108)               (41)            337                  (378)
Other revenues                              (11)             29                    (40)               (10)             39                   (49)
Total revenues                               37             141                   (104)                94             582                  (488)
Benefits and expenses:
Claims and other policy benefits              -               -                      -                  -               -                     -
Interest credited                             6               1                      5                 12               2                    10
Policy acquisition costs and other
insurance income                            (24)            (26)                     2                (50)            (54)                    4
Other operating expenses                     74              86                    (12)               139             156                   (17)
Interest expense                             42              43                     (1)                84              88                    (4)
Collateral finance and
securitization expense                        2               2                      -                  3               5                    (2)
Total benefits and expenses                 100             106                     (6)               188             197                    (9)

Income (loss) before income taxes $ (63) $ 35 $

(98) $ (94) $ 385 $ (479)




The decreases in income before income taxes for the three and six month periods
ended June 30, 2022, were primarily due to a decrease in total revenues,
partially offset by a decrease in other operating expenses, attributable to the
following:

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•Net investment income for the six months ended June 30, 2021, includes a
one-time adjustment of $92 million of pre-tax unrealized gains on certain
limited partnerships, for which the Company uses the equity method of
accounting, from AOCI to net investment income. The unrealized gains should have
been recognized directly in net investment income in the same prior periods they
were reported as earnings by the investees. Excluding this adjustment, the
increase in net investment income for the three and six month periods ended June
30, 2022, is attributable to higher investment income on Corporate invested
assets due to a higher asset base and higher yield. Higher investment income
includes income earned on assets associated with the Company's FABN program,
which is partially offset by interest credited related to the program.

•Investment related gains (losses), net, for the first six months of 2021
includes an adjustment to investments in limited partnerships considered to be
investment companies, which should have been recognized in prior periods, of $70
million to adjust the carrying value from cost less impairments to the fair
value approach, using the net asset value ("NAV") per share or its equivalent.
The remaining decrease in investment related gains (losses), net for the second
quarter and first six months of 2022 as compared to the prior year is
attributable to losses on sales of fixed maturity securities in the current
period compared to gains in the prior period, lower unrealized gains on limited
partnerships, changes in allowances and impairments on mortgage loans and
available for sale securities and a decline in the fair value of equity
securities. In addition, changes in the fair value of derivatives as a result of
fluctuations in foreign exchange rates, interest rates and equity markets
decreased investment related gains (losses), net.

•The decrease in other revenues was primarily due to a decline in the cash
surrender value on corporate-owned life insurance of $7 million and $10 million
for the three and six month periods ended June 30, 2022, respectively, and gains
on the sales of subsidiaries in the prior period of $11 million.

•The decreases in other operating expenses for the three and six month periods
ended June 30, 2022, were attributable to a decrease in incentive compensation
expense.

Liquidity and Capital Resources

Overview



The Company believes that cash flows from the source of funds available to it
will provide sufficient cash flows for the next twelve months to satisfy the
current liquidity requirements of the Company under various scenarios that
include the potential risk of early recapture of reinsurance treaties, market,
and economic uncertainties, including interest rates and inflation, and higher
than expected claims associated with COVID-19 primarily during the first quarter
of 2022. The Company performs periodic liquidity stress testing to ensure its
asset portfolio includes sufficient high quality liquid assets that could be
utilized to bolster its liquidity position under stress scenarios. These assets
could be utilized as collateral for secured borrowing transactions with various
third parties or by selling the securities in the open market if needed. The
Company's liquidity requirements have been and will continue to be funded
through net cash flows from operations. However, in the event of significant
unanticipated cash requirements beyond normal liquidity needs, the Company has
multiple liquidity alternatives available based on market conditions and the
amount and timing of the liquidity need. These alternatives include the sale of
invested assets subject to market conditions, borrowings under committed credit
facilities, secured borrowings, and if necessary issuing long-term debt,
preferred securities or common equity.

Current Market Environment



The Company's average investment yield, excluding spread related business and
variable investment income, for the six months ended June 30, 2022, was 3.88% or
6 basis points above the same period in 2021 due to the rising interest rate
environment. The Company's insurance liabilities, in particular its annuity
products, are sensitive to changing market factors. Gross unrealized gains on
fixed maturity securities available-for-sale decreased from $5.3 billion at
December 31, 2021, to $0.9 billion at June 30, 2022, due to increased interest
rates. Similarly, gross unrealized losses increased from $0.3 billion at
December 31, 2021, to $5.1 billion at June 30, 2022.

The Company continues to be in a position to hold any investment security
showing an unrealized loss until recovery, provided it remains comfortable with
the credit of the issuer. The Company does not rely on short-term funding or
commercial paper and to date it has experienced no liquidity pressure, nor does
it anticipate such pressure in the foreseeable future.

The Company projects its reserves to be sufficient, and it would not expect to
write down deferred acquisition costs or be required to take any actions to
augment capital, even if interest rates remain at current levels for the next
five years, assuming all other factors remain constant. While interest rates
have recently increased, the Company continues to feel the pressures of
sustained low interest and volatile equity markets and may continue to do so;
however, its underlying business is not overly sensitive to these risks.
Mortality and morbidity risks continue to be the most significant risk for the
Company. Although management believes the Company's current capital base is
adequate to support its business at current operating levels, it

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continues to monitor new business opportunities and any associated new capital needs that could arise from the changing financial landscape

The Holding Company



RGA is an insurance holding company whose primary uses of liquidity include, but
are not limited to, the immediate capital needs of its operating companies,
dividends paid to its shareholders, repurchase of common stock and interest
payments on its indebtedness. The primary sources of RGA's liquidity include
proceeds from its capital-raising efforts, interest income on undeployed
corporate investments, interest income received on surplus notes with RGA
Reinsurance Company ("RGA Reinsurance"), RGA Life and Annuity Insurance Company
(formerly Reinsurance Company of Missouri, Incorporated) and Rockwood
Reinsurance Company ("Rockwood Re") and dividends from operating subsidiaries.
The following tables provide comparative information for RGA (dollars in
millions):

                                                   Three months ended June 30,                    Six months ended June 30,
                                                    2022                   2021                   2022                   2021
Interest and dividend income                 $            44          $        32          $           152          $        64
Interest expense                                          42                   51                       83                  103
Capital contributions to subsidiaries                      5                    3                       12                    7

Dividends to shareholders                                 49                   47                       98                   95

Purchase of treasury stock                                 -                    2                       25                    2


                               June 30, 2022       December 31, 2021
Cash and invested assets      $          464      $              621

See Item 15, Schedule II - "Condensed Financial Information of the Registrant" in the 2021 Annual Report for additional financial information related to RGA.



The undistributed earnings of substantially all of the Company's foreign
subsidiaries have been reinvested indefinitely in those non-U.S. operations, as
described in Note 9 - "Income Tax" in the Notes to Consolidated Financial
Statements in the 2021 Annual Report. As U.S. Tax Reform generally eliminates
U.S. federal income taxes on dividends from foreign subsidiaries, the Company
does not expect to incur material income taxes if these funds are repatriated.

RGA endeavors to maintain a capital structure that provides financial and
operational flexibility to its subsidiaries, credit ratings that support its
competitive position in the financial services marketplace, and shareholder
returns. As part of the Company's capital deployment strategy, it has in recent
years repurchased shares of RGA common stock and paid dividends to RGA
shareholders, as authorized by the board of directors.

On January 24, 2019, RGA's board of directors authorized a share repurchase
program for up to $400 million of RGA's outstanding common stock. During the six
months ended June 30, 2022, RGA repurchased 219,116 shares of common stock under
this program for $25 million.

On February 25, 2022, RGA's board of directors authorized a share repurchase
program for up to $400 million of RGA's outstanding common stock. The
authorization was effective immediately and does not have an expiration date. In
connection with this authorization, the board of directors terminated the stock
repurchase authority granted in 2019. During the six months ended June 30, 2022,
RGA did not repurchase any shares of common stock under this program.

The pace of repurchase activity depends on various factors such as the level of available cash, an evaluation of the costs and benefits associated with alternative uses of excess capital, such as acquisitions and in force reinsurance transactions, and RGA's stock price.

Details underlying dividend and share repurchase program activity were as follows (dollars in millions, except share data):



                                                      Six months ended June 

30,


                                                           2022                    2021
   Dividends to shareholders                 $               98                   $ 95
   Purchase of treasury stock (1)                            25                      -
   Total amount paid to shareholders         $              123                   $ 95

   Number of treasury shares purchased (1)              219,116                      -
   Average price per share                   $           114.09                   $  -

(1)Excludes shares utilized to execute and settle certain stock incentive awards.


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In August 2022, RGA's board of directors declared a quarterly dividend of $0.80
per share. All future payments of dividends are at the discretion of RGA's board
of directors and will depend on the Company's earnings, capital requirements,
insurance regulatory conditions, operating conditions, and other such factors as
the board of directors may deem relevant. The amount of dividends that RGA can
pay will depend in part on the operations of its reinsurance subsidiaries. See
Note 3 - "Equity" in the Notes to Condensed Consolidated Financial Statements
for information on the Company's share repurchase program.

Debt



Certain of the Company's debt agreements contain financial covenant restrictions
related to, among others, liens, the issuance and disposition of stock of
restricted subsidiaries, minimum requirements of consolidated net worth, maximum
ratios of debt to capitalization and change of control provisions. The Company
is required to maintain a minimum consolidated net worth, as defined in the debt
agreements, of $5.3 billion, calculated as of the last day of each fiscal
quarter. Also, consolidated indebtedness, calculated as of the last day of each
fiscal quarter, cannot exceed 35% of the sum of the Company's consolidated
indebtedness plus adjusted consolidated stockholders' equity. A material ongoing
covenant default could require immediate payment of the amount due, including
principal, under the various agreements. Additionally, the Company's debt
agreements contain cross-acceleration covenants, which would make outstanding
borrowings immediately payable in the event of a material uncured covenant
default under any of the agreements, including, but not limited to, non-payment
of indebtedness when due for an amount in excess of the amounts set forth in
those agreements, bankruptcy proceedings, or any other event that results in the
acceleration of the maturity of indebtedness.

As of June 30, 2022 and December 31, 2021, the Company had $3.7 billion in
outstanding borrowings under its debt agreements and was in compliance with all
covenants under those agreements. As of June 30, 2022 and December 31, 2021, the
average net interest rate on long-term debt outstanding was 4.42%. The ability
of the Company to make debt principal and interest payments depends on the
earnings and surplus of subsidiaries, investment earnings on undeployed capital
proceeds, available liquidity at the holding company, and the Company's ability
to raise additional funds.

The Company enters into derivative agreements with counterparties that reference
either the Company's debt rating or its financial strength rating. If either
rating is downgraded in the future, it could trigger certain terms in the
Company's derivative agreements, which could negatively affect overall
liquidity. For the majority of the Company's derivative agreements, there is a
termination event should the long-term senior debt ratings drop below either
BBB+ (S&P) or Baa1 (Moody's) or the financial strength ratings drop below either
A- (S&P) or A3 (Moody's).

The Company may borrow up to $850 million in cash and obtain letters of credit
in multiple currencies on its revolving credit facility that matures in August
2023. As of June 30, 2022, the Company had no cash borrowings outstanding and $7
million in issued, but undrawn, letters of credit under this facility.

On December 13, 2021, RGA Reinsurance issued 4.00% Surplus Notes due in 2051,
with a face amount of $500 million. The net proceeds were approximately $494
million and will be used for general corporate purposes.

Based on the historic cash flows and the current financial results of the Company, management believes RGA's cash flows will be sufficient to enable RGA to meet its obligations for at least the next twelve months.

Credit and Committed Facilities



At June 30, 2022, the Company maintained an $850 million syndicated revolving
credit facility and certain committed letter of credit facilities aggregating to
$928 million. See Note 13 - "Debt" in the Notes to Consolidated Financial
Statements in the 2021 Annual Report for further information about these
facilities.

The Company has obtained bank letters of credit in favor of various affiliated
and unaffiliated insurance companies from which the Company assumes business.
These letters of credit represent guarantees of performance under the
reinsurance agreements and allow ceding companies to take statutory reserve
credits. Certain of these letters of credit contain financial covenant
restrictions similar to those described in the "Debt" discussion above. At
June 30, 2022, there were approximately $51 million of outstanding bank letters
of credit in favor of third parties. Additionally, in accordance with applicable
regulations, the Company utilizes letters of credit to secure statutory reserve
credits when it retrocedes business to its affiliated subsidiaries. The Company
cedes business to its affiliates to help reduce the amount of regulatory capital
required in certain jurisdictions, such as the U.S. and the UK. The Company
believes the capital required to support the business in the affiliates reflects
more realistic expectations than the original jurisdiction of the business,
where capital requirements are often considered to be quite conservative. As of
June 30, 2022, $1.7 billion in letters of credit from various banks were
outstanding, but undrawn, backing reinsurance between the various subsidiaries
of the Company.

Cash Flows

The Company's principal cash inflows from its reinsurance operations include
premiums and deposit funds received from ceding companies. The primary liquidity
concerns with respect to these cash flows are early recapture of the reinsurance
contract by the ceding company and lapses of annuity products reinsured by the
Company. The Company's principal cash

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inflows from its invested assets result from investment income and the maturity
and sales of invested assets. The primary liquidity concerns with respect to
these cash inflows relates to the risk of default by debtors and interest rate
volatility. The Company manages these risks very closely. See "Investments"
below.

Additional sources of liquidity to meet unexpected cash outflows in excess of
operating cash inflows and current cash and equivalents on hand also includes
drawing funds under a revolving credit facility, under which the Company had
availability of $843 million as of June 30, 2022. The Company also has $582
million of funds available through collateralized borrowings from the FHLB as of
June 30, 2022. As of June 30, 2022, the Company could have borrowed these
additional amounts without violating any of its existing debt covenants.

The Company's principal cash outflows relate to the payment of claims
liabilities, interest credited, operating expenses, income taxes, dividends to
shareholders, purchases of treasury stock and principal and interest under debt
and other financing obligations. The Company seeks to limit its exposure to loss
on any single insured and to recover a portion of benefits paid by ceding
reinsurance to other insurance enterprises or reinsurers under excess coverage
and coinsurance contracts (See Note 2 - "Significant Accounting Policies and
Pronouncements" in the Notes to Consolidated Financial Statements in the 2021
Annual Report). The Company performs annual financial reviews of its
retrocessionaires to evaluate financial stability and performance. The Company
has never experienced a material default in connection with retrocession
arrangements, nor has it experienced any difficulty in collecting claims
recoverable from retrocessionaires; however, no assurance can be given as to the
future performance of such retrocessionaires nor to the recoverability of future
claims. The Company's management believes its cash and cash equivalents along
with its current sources of liquidity are adequate to meet its cash requirements
for the next twelve months, despite the uncertainty associated with the
pandemic.

Summary of Primary Sources and Uses of Liquidity and Capital

The Company's primary sources and uses of liquidity and capital are summarized as follows:



                                                                               For the six months ended June 30,
                                                                                   2022                    2021
                                                                                     (Dollars in millions)
Sources:
         Net cash provided by operating activities                          $            242          $     2,330

         Change in cash collateral for derivative positions and other
         arrangements                                                                    143                  184

         Net deposits from investment-type policies and contracts                      2,641                      79
         Issuance of preferred interests by subsidiary                                    90                    -
         Total sources                                                                 3,116                2,593

Uses:
         Net cash used in investing activities                                         3,211                2,173
         Dividends to stockholders                                                        98                   95
         Repayment of collateral finance and securitization notes                         29                   65

         Principal payments of long-term debt                                              2                  401

         Purchases of treasury stock                                                      27                    2

         Change in deposit asset on reinsurance                                           32                    -

         Distributions to noncontrolling interest                                          1                    -
         Effect of exchange rate changes on cash                                         108                   11
         Total uses                                                                    3,508                2,747
Net change in cash and cash equivalents                                     $           (392)         $      (154)


Cash Flows from Operations - The principal cash inflows from the Company's
reinsurance activities come from premiums, investment and fee income, annuity
considerations and deposit funds. The principal cash outflows relate to the
liabilities associated with various life and health insurance, annuity and
disability products, operating expenses, income tax payments and interest on
outstanding debt obligations. The primary liquidity concern with respect to
these cash flows is the risk of shortfalls in premiums and investment income,
particularly in periods with abnormally high claims levels.

Cash Flows from Investments - The principal cash inflows from the Company's
investment activities come from repayments of principal on invested assets,
proceeds from maturities of invested assets, sales of invested assets and
settlements of freestanding derivatives. The principal cash outflows relate to
purchases of investments, issuances of policy loans and settlements of
freestanding derivatives. The Company typically has a net cash outflow from
investing activities because cash inflows from insurance operations are
reinvested in accordance with its asset/liability management discipline to fund
insurance liabilities. The Company closely monitors and manages these risks
through its credit risk management process. The primary liquidity

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concerns with respect to these cash flows are the risk of default by debtors and market disruption, which could make it difficult for the Company to sell investments.



Financing Cash Flows - The principal cash inflows from the Company's financing
activities come from issuances of RGA debt and equity securities, and deposit
funds associated with universal life and other investment type policies and
contracts. The principal cash outflows come from repayments of debt, payments of
dividends to stockholders, purchases of treasury stock, and withdrawals
associated with universal life and other investment type policies and contracts.
A primary liquidity concern with respect to these cash flows is the risk of
early contractholder and policyholder withdrawal.

Contractual Obligations

There were no other material changes in the Company's contractual obligations from those reported in the 2021 Annual Report.

Asset / Liability Management



The Company actively manages its cash and invested assets using an approach that
is intended to balance quality, diversification, asset/liability matching,
liquidity and investment return. The goals of the investment process are to
optimize after-tax, risk-adjusted investment income and after-tax, risk-adjusted
total return while managing the assets and liabilities on a cash flow and
duration basis.

The Company has established target asset portfolios for its operating segments, which represent the investment strategies intended to profitably fund its liabilities within acceptable risk parameters. These strategies include objectives and limits for effective duration, yield curve sensitivity and convexity, liquidity, asset sector concentration and credit quality.



The Company's asset-intensive products are primarily supported by investments in
fixed maturity securities reflected on the Company's balance sheet and under
funds withheld arrangements with the ceding company. Investment guidelines are
established to structure the investment portfolio based upon the type, duration
and behavior of products in the liability portfolio so as to achieve targeted
levels of profitability. The Company manages the asset-intensive business to
provide a targeted spread between the interest rate earned on investments and
the interest rate credited to the underlying interest-sensitive contract
liabilities. The Company periodically reviews models projecting different
interest rate scenarios and their effect on profitability. Certain of these
asset-intensive agreements, primarily in the U.S. and Latin America Financial
Solutions operating segment, are generally funded by fixed maturity securities
that are withheld by the ceding company.

The Company's liquidity position (cash and cash equivalents and short-term
investments) was $2.8 billion and $3.0 billion at June 30, 2022 and December 31,
2021, respectively. Liquidity needs are determined from valuation analyses
conducted by operational units and are driven by product portfolios. Periodic
evaluations of demand liabilities and short-term liquid assets are designed to
adjust specific portfolios, as well as their durations and maturities, in
response to anticipated liquidity needs.

See "Securities Borrowing, Lending and Repurchase/Reverse Repurchase Agreements"
in Note 4 - "Investments" in the Notes to Condensed Consolidated Financial
Statements for information related to the Company's securities borrowing,
lending and repurchase/reverse repurchase agreements. In addition to its
security agreements with third parties, certain RGA's subsidiaries have entered
into intercompany securities lending agreements to more efficiently source
securities for lending to third parties and to provide for more efficient
regulatory capital management.

The Company is a member of the FHLB and holds $60 million of FHLB common stock, which is included in other invested assets on the Company's condensed consolidated balance sheets.



The Company has entered into funding agreements with the FHLB under guaranteed
investment contracts whereby the Company has issued the funding agreements in
exchange for cash and for which the FHLB has been granted a blanket lien on the
Company's commercial and residential mortgage-backed securities and commercial
mortgage loans used to collateralize the Company's obligations under the funding
agreements. The Company maintains control over these pledged assets, and may
use, commingle, encumber or dispose of any portion of the collateral as long as
there is no event of default and the remaining qualified collateral is
sufficient to satisfy the collateral maintenance level. The funding agreements
and the related security agreements represented by this blanket lien provide
that upon any event of default by the Company, the FHLB's recovery is limited to
the amount of the Company's liability under the outstanding funding agreements.
The amount of the Company's liability for the funding agreements with the FHLB
under guaranteed investment contracts was $1.2 billion and $1.4 billion at
June 30, 2022 and December 31, 2021, respectively, which is included in
interest-sensitive contract liabilities on the Company's condensed consolidated
balance sheets. The advances on these agreements are collateralized primarily by
commercial and residential mortgage-backed securities, commercial mortgage
loans, and U.S. Treasury and government agency securities. The amount of
collateral exceeds the liability and is dependent on the type of assets
collateralizing the guaranteed investment contracts.

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Investments

Management of Investments

The Company's investment and derivative strategies involve matching the
characteristics of its reinsurance products and other obligations. The Company
seeks to closely approximate the interest rate sensitivity of the assets with
estimated interest rate sensitivity of the reinsurance liabilities. The Company
achieves its income objectives through strategic and tactical asset allocations,
applying security and derivative strategies within asset/liability and
disciplined risk management frameworks. Derivative strategies are employed
within the Company's risk management framework to help manage duration,
currency, and other risks in assets and/or liabilities and to replicate the
credit characteristics of certain assets.

The Company's portfolio management groups work with the Enterprise Risk
Management function to develop the investment policies for the assets of the
Company's domestic and international investment portfolios. All investments held
by the Company, directly or in a funds withheld at interest reinsurance
arrangement, are monitored for conformance with the Company's stated investment
policy limits as well as any limits prescribed by the applicable jurisdiction's
insurance laws and regulations. See Note 4 - "Investments" in the Notes to
Condensed Consolidated Financial Statements for additional information regarding
the Company's investments.

Portfolio Composition

The Company had total cash and invested assets of $73.5 billion and $81.5 billion as of June 30, 2022 and December 31, 2021, respectively, as illustrated below (dollars in millions):



                                                                                                     December 31,
                                                   June 30, 2022              % of Total                 2021                  % of Total
Fixed maturity securities
available-for-sale                               $       53,294                       72.4  %       $     60,749                       74.6  %
Equity securities                                           127                        0.2                   151                        0.2
Mortgage loans                                            6,544                        8.9                 6,283                        7.7
Policy loans                                              1,218                        1.7                 1,234                        1.5
Funds withheld at interest                                6,393                        8.7                 6,954                        8.5
Short-term investments                                      272                        0.4                    87                        0.1
Other invested assets                                     3,110                        4.2                 3,070                        3.8
Cash and cash equivalents                                 2,556                        3.5                 2,948                        3.6
Total cash and invested assets                   $       73,514                      100.0  %       $     81,476                      100.0  %


Investment Yield

The following table presents consolidated average invested assets, at amortized
cost, net investment income, investment yield, variable investment income
("VII"), and investment yield excluding VII, which can vary significantly from
period to period (dollars in millions). The table excludes spread related
business. Spread related business is primarily associated with contracts on
which the Company earns an interest rate spread between assets and liabilities.
To varying degrees, fluctuations in the yield on other spread related business
is generally subject to corresponding adjustments to the interest credited on
the liabilities.

                                                  Three months ended June 30,                                 Six months ended June 30,
                                                                              Increase/                                                 Increase/
                                         2022               2021              (Decrease)            2022              2021              (Decrease)
Average invested assets at amortized
cost                                 $   34,859          $ 33,587

$ 1,272 $ 34,852 $ 33,266 $ 1,586 Net investment income

$      397          $    383          $         14          $    854          $    846          $          8
Annualized investment yield (ratio
of net investment income to average
invested assets at amortized cost)         4.63  %           4.64  %                (1) bp           4.96  %           5.15  %              (19) bps
VII (included in net investment
income)                              $       70          $     78          $         (8)         $    211          $    240          $        (29)
Annualized investment yield
excluding VII (ratio of net
investment income, excluding VII, to
average invested assets, excluding
assets with only VII, at amortized
cost)                                      3.96  %           3.84  %                12 bps           3.88  %           3.82  %                 6 bps


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Investment yield stayed relatively flat for the three months ended June 30,
2022, in comparison to the same period in the prior year. Investment yield
decreased for the six months ended June 30, 2022, in comparison to the same
period in the prior year, primarily due to decreased variable income from
limited partnerships, which are included in other invested assets on the
condensed consolidated balance sheets. Investment yield excluding variable
investment income increased for the three and six months ended June 30, 2022, in
comparison to the same periods in the prior year, primarily due to the rising
interest rate environment.

Fixed Maturity Securities Available-for-Sale



See "Fixed Maturity Securities Available-for-Sale" in Note 4 - "Investments" in
the Notes to Condensed Consolidated Financial Statements for tables that provide
the amortized cost, allowance for credit losses, unrealized gains and losses and
estimated fair value of these securities by type as of June 30, 2022 and
December 31, 2021.

The Company holds various types of fixed maturity securities available-for-sale
and classifies them as corporate securities ("Corporate"), Canadian and Canadian
provincial government securities ("Canadian government"), residential
mortgage-backed securities ("RMBS"), asset-backed securities ("ABS"), commercial
mortgage-backed securities ("CMBS"), U.S. government and agencies ("U.S.
government"), state and political subdivisions, and other foreign government,
supranational and foreign government-sponsored enterprises ("Other foreign
government"). RMBS, ABS, and CMBS are collectively "structured securities." As
of June 30, 2022 and December 31, 2021, approximately 93.4% and 94.0%,
respectively, of the Company's consolidated investment portfolio of fixed
maturity securities were investment grade.

Important factors in the selection of investments include diversification,
quality, yield, call protection and total rate of return potential. The relative
importance of these factors is determined by market conditions and the
underlying reinsurance liability and existing portfolio characteristics. The
Company owns floating rate securities that represent approximately 7.0% and 5.3%
of the total fixed maturity securities as of June 30, 2022 and December 31,
2021, respectively. These investments have a higher degree of income variability
than the other fixed income holdings in the portfolio due to fluctuations in
interest payments. The Company holds floating rate investments to match specific
floating rate liabilities primarily reflected in the condensed consolidated
balance sheets as collateral finance notes, as well as to enhance asset
management strategies.

The largest asset class in which fixed maturity securities were invested was
corporate securities, which represented approximately 64.5% and 62.8% of total
fixed maturity securities as of June 30, 2022 and December 31, 2021. See
"Corporate Fixed Maturity Securities" in Note 4 - "Investments" in the Notes to
Condensed Consolidated Financial Statements for tables showing the major sector
types, which comprise the corporate fixed maturity holdings as of June 30, 2022
and December 31, 2021.

As of June 30, 2022 and December 31, 2021, the Company's investments in Canadian
government securities represented 7.1% and 8.1%, respectively, of the fair value
of total fixed maturity securities. These assets are primarily high quality,
long duration provincial strip bonds, the valuation of which is closely linked
to the interest rate curve. These assets are longer in duration and held
primarily for asset/liability management to meet Canadian regulatory
requirements.

The Company references rating agency designations in some of its investments
disclosures. These designations are based on the ratings from nationally
recognized statistical rating organizations, primarily Moody's, S&P and Fitch.
Structured securities held by the Company's insurance subsidiaries that maintain
the NAIC statutory basis of accounting utilize the NAIC rating methodology. The
NAIC assigns designations to publicly traded as well as privately placed
securities. The designations assigned by the NAIC range from class 1 to class 6,
with designations in classes 1 and 2 generally considered investment grade (BBB
or higher rating agency designation). NAIC designations in classes 3 through 6
are generally considered below investment grade (BB or lower rating agency
designation). If no rating is available from a rating agency or the NAIC, then
an internally developed rating is used.

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The quality of the Company's available-for-sale fixed maturity securities
portfolio, as measured at fair value and by the percentage of fixed maturity
securities invested in various ratings categories, relative to the entire
available-for-sale fixed maturity securities portfolio, as of June 30, 2022 and
December 31, 2021 was as follows (dollars in millions):

                                                                                       June 30, 2022                                                     December 31, 2021
         NAIC                       Rating Agency               Amortized           Estimated                                       Amortized           Estimated
     Designation                     Designation                  Cost              Fair Value             % of Total                 Cost              Fair Value             % of Total
          1                  AAA/AA/A                          $  33,989          $    31,782                        59.6  %       $  33,540          $    36,725                        60.5  %
          2                  BBB                                  19,851               18,011                        33.8             18,684               20,379                        33.5
          3                  BB                                    2,940                2,774                         5.2              2,620                2,668                         4.4
          4                  B                                       658                  619                         1.2                876                  863                         1.4
          5                  CCC and lower                           124                   84                         0.2                 96                   79                         0.1
          6                  In or near default                       46                   24                           -                 57                   35                         0.1
                             Total                             $  57,608          $    53,294                       100.0  %       $  55,873          $    60,749                       100.0  %

The Company's fixed maturity portfolio includes structured securities. The following table shows the types of structured securities the Company held as of June 30, 2022 and December 31, 2021 (dollars in millions):



                                                                       June 30, 2022                                                        December 31, 2021
                                                                         Estimated                                                               Estimated
                                                Amortized Cost           Fair Value            % of Total             Amortized  Cost            Fair Value            % of Total
RMBS:
Agency                                         $          519          $       498                     7.7  %       $             551          $       582                     8.4  %
Non-agency                                                485                  452                     7.0                        469                  468                     6.8
Total RMBS                                              1,004                  950                    14.7                      1,020                1,050                    15.2
ABS:
Collateralized loan obligations ("CLOs")                1,714                1,622                    25.1                      1,761                1,752                    25.4
ABS, excluding CLOs                                     2,377                2,160                    33.4                      2,263                2,253                    32.6
Total ABS                                               4,091                3,782                    58.5                      4,024                4,005                    58.0
CMBS                                                    1,856                1,735                    26.8                      1,790                1,849                    26.8
Total                                          $        6,951          $     6,467                   100.0  %       $           6,834          $     6,904                   100.0  %


The Company's RMBS portfolio includes agency-issued pass-through securities and
collateralized mortgage obligations. Agency-issued pass-through securities are
guaranteed or otherwise supported by the Federal Home Loan Mortgage Corporation,
Federal National Mortgage Association, or the Government National Mortgage
Association. The principal risks inherent in holding RMBS are prepayment and
extension risks, which will affect the timing of when cash will be received and
are dependent on the level of mortgage interest rates. Prepayment risk is the
unexpected increase in principal payments from the expected, primarily as a
result of owner refinancing. Extension risk relates to the unexpected slowdown
in principal payments from the expected. In addition, non-agency RMBS face
credit risk should the borrower be unable to pay the contractual interest or
principal on their obligation. The Company monitors its mortgage-backed
securities to mitigate exposure to the cash flow uncertainties associated with
these risks.

The Company's ABS portfolio primarily consists of CLOs, aircraft and
single-family rentals. The principal risks in holding ABS are structural,
credit, capital market and interest rate risks. Structural risks include the
securities' cash flow priority in the capital structure and the inherent
prepayment sensitivity of the underlying collateral. Credit risks include the
adequacy and ability to realize proceeds from the collateral. Credit risks are
mitigated by credit enhancements that include excess spread,
over-collateralization and subordination. Capital market risks include general
level of interest rates and the liquidity for these securities in the
marketplace.

The Company's CMBS portfolio primarily consists of large pool securitizations
that are diverse by property type, borrower and geographic dispersion. The
principal risks in holding CMBS are structural and credit risks. Structural
risks include the securities' cash flow priority in the capital structure and
the inherent prepayment sensitivity of the underlying collateral. Credit risks
include the adequacy and ability to realize proceeds from the collateral. The
Company focuses on investment grade rated tranches that provide additional
credit support beyond the equity protection in the underlying loans. These
assets are viewed as an attractive alternative to other fixed income asset
classes.

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As of June 30, 2022 and December 31, 2021, the Company had $5,129 million and
$349 million, respectively, of gross unrealized losses related to its fixed
maturity securities. The Company monitors its fixed maturity securities to
determine impairments in value and evaluates factors such as financial condition
of the issuer, payment performance, compliance with covenants, general market
and industry sector conditions, current intent and ability to hold securities,
and various other subjective factors. Based on management's judgment an
allowance for credit losses in the amount that fair value is less than the
amortized cost is recorded for securities determined to have expected credit
losses.

Mortgage Loans

The Company's mortgage loan portfolio consists of U.S., Canada and UK based
investments primarily in commercial offices, light industrial properties and
retail locations. The mortgage loan portfolio is diversified by geographic
region and property type as discussed further under "Mortgage Loans" in Note 4 -
"Investments" in the Notes to Condensed Consolidated Financial Statements. Most
of the mortgage loans in the Company's portfolio range in size up to $30
million, with the average mortgage loan investment as of June 30, 2022, totaling
approximately $9 million.

As of June 30, 2022 and December 31, 2021, the Company's recorded investment in
mortgage loans, gross of unamortized deferred loan origination fees and expenses
and allowance for credit losses, were distributed geographically as follows
(dollars in millions):

                             June 30, 2022                     December 31, 2021
                        Recorded                            Recorded
                       Investment       % of Total         Investment         % of Total
U.S. Region:
West                 $      2,330           35.3  %    $          2,270           36.0  %
South                       2,250           34.1                  2,135           33.7
Midwest                     1,158           17.6                  1,166           18.4
Northeast                     483            7.3                    419            6.6
Subtotal - U.S.             6,221           94.3                  5,990           94.7
Canada                        217            3.3                    193            3.0
United Kingdom                156            2.4                    144            2.3
Other                           -              -                      2              -
Total                $      6,594          100.0  %    $          6,329          100.0  %


See "Allowance for Credit Losses and Impairments" in Note 2 - "Significant
Accounting Policies and Pronouncements" of the Company's 2021 Annual Report and
"Mortgage Loans" in Note 4 - "Investments" in the Notes to Condensed
Consolidated Financial Statements for information regarding the Company's policy
for allowance for credit losses on mortgage loans.

Allowance for Credit Losses and Impairments



The Company's determination of whether a decline in value necessitates the
recording of an allowance for credit losses includes an analysis of whether the
issuer is current on its contractual payments, evaluating whether it is probable
that the Company will be able to collect all amounts due according to the
contractual terms of the security and analyzing the overall ability of the
Company to recover the amortized cost of the investment. See "Allowance for
Credit Losses and Impairments" in Note 2 - "Significant Accounting Policies and
Pronouncements" of the Company's 2021 Annual Report for additional information.
The table below summarizes investment related gains (losses), net related to
allowances for credit losses and impairments for the three and six months ended
June 30, 2022 and 2021 (dollars in millions).

                                               Three months ended June 30,                Six months ended June 30,
                                                 2022                  2021                2022                 2021

Change in allowance for credit losses on
fixed maturity securities                 $            13          $      (5)         $         24          $      (3)
Impairments on fixed maturity securities                2                  -                     3                  -
Other impairment losses and changes in
provision                                               -                 (1)                    -                 (2)
Change in mortgage loan allowance for
credit losses                                           1                 (2)                    3                (19)
Total                                     $            16          $      (8)         $         30          $     (24)

The increase in allowance for credit losses and impairments on fixed maturity securities for the three and six months ended June 30, 2022, was primarily related to high-yield securities.



See "Unrealized Losses for Fixed Maturity Securities Available-for-Sale" in Note
4 - "Investments" in the Notes to Condensed Consolidated Financial Statements
for tables that present the estimated fair value and gross unrealized losses for
securities that have estimated fair values below amortized cost, by class and
grade, as well as the length of time the related estimated fair value has
remained below amortized cost as of June 30, 2022 and December 31, 2021.

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As of June 30, 2022 and December 31, 2021, the Company classified approximately
10.4% and 8.5%, respectively, of its fixed maturity securities in the Level 3
category (refer to Note 6 - "Fair Value of Assets and Liabilities" in the Notes
to Condensed Consolidated Financial Statements for additional information).
These securities primarily consist of private placement corporate and
asset-backed securities.

See "Securities Borrowing, Lending and Repurchase/Reverse Repurchase Agreements" in Note 4 - "Investments" in the Notes to Condensed Consolidated Financial Statements for information related to the Company's securities borrowing, lending and repurchase/reverse repurchase agreements.

Funds Withheld at Interest



For reinsurance agreements written on a modified coinsurance basis and certain
agreements written on a coinsurance basis, assets equal to the net statutory
reserves are withheld and legally owned and managed by the ceding company, and
are reflected as funds withheld at interest on the Company's condensed
consolidated balance sheets. In the event of a ceding company's insolvency, the
Company would need to assert a claim on the assets supporting its reserve
liabilities. However, the risk of loss to the Company is mitigated by its
ability to offset amounts it owes the ceding company for claims or allowances
against amounts owed by the ceding company. Interest accrues to the total funds
withheld at interest assets at rates defined by the treaty terms. The Company is
subject to the investment performance on the withheld assets, although it does
not directly control them. These assets are primarily fixed maturity investment
securities and pose risks similar to the fixed maturity securities the Company
owns. To mitigate this risk, the Company helps set the investment guidelines
followed by the ceding company and monitors compliance. Ceding companies with
funds withheld at interest had an average financial strength rating of "A" as of
June 30, 2022 and December 31, 2021. Certain ceding companies maintain
segregated portfolios for the benefit of the Company.

Other Invested Assets



Other invested assets include limited partnership interests, joint ventures
(other than operating joint ventures), lifetime mortgages, derivative contracts,
FHLB common stock and unit-linked investments. See "Other Invested Assets" in
Note 4 - "Investments" in the Notes to Condensed Consolidated Financial
Statements for a table that presents the carrying value of the Company's other
invested assets by type as of June 30, 2022 and December 31, 2021.

The Company utilizes derivative financial instruments to protect the Company
against possible changes in the fair value of its investment portfolio as a
result of interest rate changes, to hedge against risk of changes in the
purchase price of securities, to hedge liabilities associated with the
reinsurance of variable annuities with guaranteed living benefits and to manage
the portfolio's effective yield, maturity and duration. In addition, the Company
utilizes derivative financial instruments to reduce the risk associated with
fluctuations in foreign currency exchange rates. The Company uses
exchange-traded, centrally cleared, and customized over-the-counter derivative
financial instruments.

See Note 5 - "Derivative Instruments" in the Notes to Condensed Consolidated
Financial Statements for a table that presents the notional amounts and fair
value of investment related derivative instruments held as of June 30, 2022 and
December 31, 2021.

The Company may be exposed to credit-related losses in the event of
non-performance by counterparties to derivative financial instruments.
Generally, the credit exposure of the Company's derivative contracts is limited
to the fair value and accrued interest of non-collateralized derivative
contracts in an asset position at the reporting date. As of June 30, 2022, the
Company had credit exposure of $15 million.

The Company manages its credit risk related to over-the-counter derivatives by
entering into transactions with creditworthy counterparties, maintaining
collateral arrangements and through the use of master agreements that provide
for a single net payment to be made by one counterparty to another at each due
date and upon termination. As exchange-traded futures are affected through
regulated exchanges, and positions are marked to market on a daily basis, the
Company has minimal exposure to credit-related losses in the event of
nonperformance by counterparties. See Note 5 - "Derivative Instruments" in the
Notes to Condensed Consolidated Financial Statements for more information
regarding the Company's derivative instruments.

The Company holds $812 million and $758 million of beneficial interest in
lifetime mortgages in the UK, net of allowance for credit losses as of June 30,
2022 and December 31, 2021, respectively. Investment income includes $9 million
and $13 million in interest income earned on lifetime mortgages for the three
months ended June 30, 2022 and 2021, respectively, and $19 million and $26
million in interest income earned on lifetime mortgages for the six months ended
June 30, 2022 and 2021, respectively. Lifetime mortgages represent loans
provided to individuals 55 years of age and older secured by the borrower's
residence. Lifetime mortgages are comparable to a home equity loan by allowing
the borrower to utilize the equity in their home as collateral. The amount of
the loan is dependent on the appraised value of the home at the time of
origination, the borrower's age and interest rate. Unlike a home equity loan, no
payment of principal or interest is required until the death of the borrower or
sale of the home. Lifetime mortgages may also be either fully funded at
origination, or the borrower can request

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periodic funding similar to a line of credit. Lifetime mortgages are subject to risks, including market, credit, interest rate, liquidity, operational, reputational and legal risks.

New Accounting Standards



Changes to the general accounting principles are established by the Financial
Accounting Standards Board ("FASB") in the form of accounting standards updates
to the FASB Accounting Standards CodificationTM.

Financial Services - Insurance



In August 2018, the FASB issued amendments that will significantly change the
recognition and measurement of long-duration insurance contracts and expand
disclosure requirements. The guidance is effective for the Company on January 1,
2023. The Company established a team to support the implementation of the
updated guidance, which requires significant changes to policies, reporting and
processes. The Company's achievements as of the balance sheet date include, but
are not limited to, the following:

•Established preliminary key accounting policies;

•Updated chart of accounts to support enhanced financial statement presentation and disclosures;

•Implemented a data management system and process for grouping treaties into cohorts;

•Established valuation analytics and reporting foundation;

•Established an assumption governance process for assumption review, changes and approvals; and

•Conducted dry runs and end to end system testing.

The Company continues to make progress on the following items (includes, but not limited to):

•Evaluating and finalizing key accounting policies;

•Evaluating the impact to the consolidated financial statements at transition;

•Determining and documenting key risks and appropriate internal controls; and

•Conducting parallel valuation runs.



See Note 13 - "New Accounting Standards" in the Notes to Condensed Consolidated
Financial Statements for additional information on new accounting pronouncements
and their impact, if any, on the Company's results of operations and financial
position.

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