For the full year net income totaled 176

LOUIS(Business Wire)Reinsurance Group of America, Incorporated (NYSE:RGA), a leading global providerof life reinsurance, reported net income for the fourth quarter of $9.4 million,or $0.14 per diluted share, compared to $63.6 million, or $0.99 per dilutedshare, in the prior-year quarter. RGA uses a non-GAAP financial measure calledoperating income as a basis for analyzing financial results. The definition ofoperating income and reconciliations to GAAP net income are provided in thefollowing tables. Additional financial information can be found in the QuarterlyFinancial Supplement on RGAs Investor Relations site at in the"Quarterly Results" tab and in the "Featured Report" section. Operating incomeincreased to $100.0 million, or $1.45 per diluted share, from $91.2 million, or$1.42 per diluted share in the year-ago quarter, attributable to improvedCanadian and international operations. The quarters earnings per share includeddilution of $0.14 from the companys 10,235,000-share common stock offering inearly November.

Weaker foreign currencies also negatively affected the 2008results by approximately $0.16 per share. Fourth-quarter net premiums rose 3percent, to $1,389.1 million, from $1,348.0 million a year ago. Excluding theimpact of foreign currency translation, premiums increased approximately 11percent for the quarter. Net investment income totaled $196.6 million versus$226.8 million the year before. Net income for the 2008 quarter included approximately $16.1 million, pre-tax,in investment impairments. Additionally, net income included unrealized lossesof $74.5 million, after taxes and adjustments to deferred acquisition costs(DAC), due to the decline in the fair value of embedded derivatives associatedwith treaties structured on a modified coinsurance and funds withheld basis.This non-cash, unrealized loss is due to widening credit spreads on theinvestment portfolios underlying certain funds withheld annuity reinsurancetreaties. For the full year, net income totaled $176.8 million or $2.71 per diluted share,compared to $293.8 million, or $4.57 per diluted share, for 2007.

Operatingincome increased to $399.2 million, or $6.12 per diluted share, compared to$353.5 million, or $5.50 per diluted share, in the prior-year period, an11-percent increase on a per-share basis and within the guidance rangeestablished by the company in January 2008. Consolidated net premiums were up 9percent, to $5,349.3 million from $4,909.0 million A. Greig Woodring, president and chief executive officer, commented, "Overall,we are pleased with the quarter and full-year results given the turmoil inworldwide financial markets, the relative dilution in earnings per share untilwe can deploy proceeds from our recent stock offering, and the impact of therelative depreciation in several major foreign currencies, notably the Canadiandollar, Australian dollar and British pound sterling. Although the financialmarkets turmoil continues to put pressure on investment values, our write-downsfor the quarter were relatively modest at $16.1 million. Gross unrealized losseson investment securities increased to $1,416.4 million from $960.6 million atSeptember 30, primarily due to credit spread widening.

Although the environmentis volatile, we believe our portfolio remains appropriately positioned. We haveposted to our Web site a Quarterly Financial Supplement that includesinformation on our investments, including exposures to subprime, Alt-A, andother structured securities. Our investment profile is largely unchanged, with97 percent of our fixed maturity securities held in the investment gradecategories. Additionally, we have further enhanced our already strong liquidityposition, which is prudent in the current environment." Woodring continued, "Our operating results were mixed, somewhat weak in theU.S., but much stronger in Canada and internationally The U.S. reported apre-tax loss of $47.1 million for the quarter versus pre-tax income of $82.4million the year before.