Reinsurance Group of America Reports Fourth Quarter and Full Year Results
Fourth Quarter Results
-
Net income available to RGA shareholders of
per diluted share$2.22 -
Adjusted operating income of
per diluted share$4.99 -
Deployed capital of
into in-force block transactions$250 million
Full Year Results
-
Net income available to RGA shareholders of
per diluted share$10.73 -
Adjusted operating income of
per diluted share$20.06 -
Adjusted operating income, excluding notable items of
per diluted share$22.57 -
ROE of
7.1% , adjusted operating ROE of13.8% , adjusted operating ROE, excluding notable items of15.4% for the trailing twelve months -
Deployed capital of
into in-force block transactions$1,676 million -
Increased value of in-force business margins by
, or$4.6 billion 13.9% , in the year to$37.6 billion
Full year net income available to RGA shareholders totaled
Tony Cheng, President and Chief Executive Officer, commented, “The fourth quarter capped off a tremendous year, as we delivered record annual operating earnings, with many achievements across our organization. In the quarter, we continued to see strong momentum in organic business activity in the traditional business, and our in-force transactions were solid, with
“Our balance sheet remains strong, and we ended the quarter with deployable capital of
|
Quarterly Results |
|
Year-to-Date Results |
||||||||||||
($ in millions, except per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net premiums |
$ |
4,156 |
|
$ |
4,108 |
|
$ |
17,843 |
|
$ |
15,085 |
||||
Net income available to RGA shareholders |
|
148 |
|
|
|
158 |
|
|
|
717 |
|
|
|
902 |
|
Net income available to RGA shareholders per diluted share |
|
2.22 |
|
|
|
2.37 |
|
|
|
10.73 |
|
|
|
13.44 |
|
Adjusted operating income |
|
334 |
|
|
|
316 |
|
|
|
1,342 |
|
|
|
1,334 |
|
Adjusted operating income, excluding notable items |
|
334 |
|
|
|
316 |
|
|
|
1,510 |
|
|
|
1,334 |
|
Adjusted operating income per diluted share |
|
4.99 |
|
|
|
4.73 |
|
|
|
20.06 |
|
|
|
19.88 |
|
Adjusted operating income, excluding notable items per diluted share |
|
4.99 |
|
|
|
4.73 |
|
|
|
22.57 |
|
|
|
19.88 |
|
Book value per share |
|
164.19 |
|
|
|
138.39 |
|
|
|
|
|
||||
Book value per share, excluding accumulated other comprehensive income (AOCI) |
|
151.31 |
|
|
|
144.01 |
|
|
|
|
|
||||
Book value per share, excluding AOCI and B36 |
|
151.97 |
|
|
|
146.07 |
|
|
|
|
|
||||
Total assets |
|
118,675 |
|
|
|
97,623 |
|
|
|
|
|
Information regarding the non-GAAP financial measures and operating measures included in this press release, including definitions of these measures, reconciliations to the most comparable GAAP measures and limitations related thereto, is included below under “Non-GAAP Financial Measures and Other Definitions” and in the tables attached to this press release.
In the fourth quarter, consolidated net premiums totaled
Compared with the year-ago period, excluding spread-based businesses, fourth quarter investment income increased
The effective tax rate for the quarter was
The effective tax rate for the quarter was
SEGMENT RESULTS
Traditional |
|||||||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net premiums |
$ |
2,046 |
|
|
$ |
1,912 |
|
|
$ |
7,500 |
|
|
$ |
7,023 |
|
Adjusted operating income before taxes |
|
151 |
|
|
|
25 |
|
|
|
525 |
|
|
|
313 |
|
Adjusted operating income before taxes, excluding notable items |
|
151 |
|
|
|
25 |
|
|
|
578 |
|
|
|
330 |
|
Quarterly Results
- Results reflected favorable impacts of in-force management actions, partially offset by unfavorable Group experience.
Full Year Results
-
Results reflected
of favorable impacts from the annual actuarial assumption review and$30 million of unfavorable impacts from the change in policy retention limit, both of which are reflected as notable items.$83 million - Excluding notable items, results reflected favorable impacts of in-force management actions and favorable Individual Health results.
Financial Solutions |
|||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Adjusted operating income before taxes |
76 |
|
|
101 |
|
|
326 |
|
|
451 |
|
Adjusted operating income before taxes, excluding notable items |
76 |
|
|
101 |
|
|
326 |
|
|
429 |
|
Quarterly Results
- Results were below the expected range due to the continued runoff of existing annuity business and the earnings emergence from new transactions.
Full Year Results
- Results were below the expected range due to the continued runoff of existing annuity business and the earnings emergence from new transactions.
Traditional |
|||||||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net premiums |
$ |
333 |
|
|
$ |
311 |
|
|
$ |
1,291 |
|
|
$ |
1,215 |
|
Adjusted operating income before taxes |
|
32 |
|
|
|
20 |
|
|
|
134 |
|
|
|
91 |
|
Adjusted operating income before taxes, excluding notable items |
|
32 |
|
|
|
20 |
|
|
|
129 |
|
|
|
104 |
|
Net Premiums
-
Foreign currency exchange rates had an adverse effect on net premiums of
for the quarter and$10 million for the full year.$20 million
Quarterly Results
- Results reflect unfavorable Individual Life claims experience, mostly offset by favorable experience in Group business.
-
Foreign currency exchange rates had an adverse effect of
on adjusted operating income before taxes.$1 million
Full Year Results
-
Results reflected
of favorable impacts from the annual actuarial assumption review and$30 million of unfavorable impacts from the change in policy retention limit, both of which are reflected as notable items.$25 million - Excluding notable items, results were in line with expectations.
-
Foreign currency exchange rates had an adverse effect of
on adjusted operating income before taxes.$2 million
Financial Solutions |
|||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Adjusted operating income before taxes |
8 |
|
|
6 |
|
|
26 |
|
|
52 |
|
Adjusted operating income before taxes, excluding notable items |
8 |
|
|
6 |
|
|
26 |
|
|
30 |
|
Quarterly Results
- Results were in line with expectations.
- Foreign currency exchange rates had an immaterial effect on adjusted operating income before taxes.
Full Year Results
- Results were in line with expectations.
-
Foreign currency exchange rates had an adverse effect of
on adjusted operating income before taxes.$1 million
Traditional |
|||||||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net premiums |
$ |
488 |
|
|
$ |
461 |
|
|
$ |
2,002 |
|
|
$ |
1,775 |
|
Adjusted operating income (loss) before taxes |
|
11 |
|
|
|
8 |
|
|
|
30 |
|
|
|
(20 |
) |
Adjusted operating income before taxes, excluding notable items |
|
11 |
|
|
|
8 |
|
|
|
70 |
|
|
|
27 |
|
Net Premiums
-
Foreign currency exchange rates had a favorable effect on net premiums of
for the quarter and$8 million for the full year.$28 million
Quarterly Results
- Results reflected unfavorable claims experience, partially offset by higher fee income related to a treaty recapture.
-
Foreign currency exchange rates had a favorable effect of
on adjusted operating income before taxes.$2 million
Full Year Results
-
Results reflected
of unfavorable impacts from the annual actuarial assumption review and$25 million of unfavorable impacts from the change in policy retention limit, both of which are reflected as notable items.$15 million - Excluding notable items, results reflected unfavorable claims experience, partially offset by higher fee income related to a treaty recapture and the positive impacts from new business.
-
Foreign currency exchange rates had a favorable effect of
on adjusted operating income before taxes.$1 million
Financial Solutions |
|||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Adjusted operating income before taxes |
96 |
|
|
112 |
|
|
345 |
|
|
355 |
|
Adjusted operating income before taxes, excluding notable items |
96 |
|
|
112 |
|
|
347 |
|
|
321 |
|
Quarterly Results
- Results reflected the impact of strong new business in recent periods, favorable longevity experience, and higher investment margins.
-
Foreign currency exchange rates had a favorable effect of
on adjusted operating income before taxes.$1 million
Full Year Results
-
Results reflected
of unfavorable impacts from assumption updates, which are reflected as notable items.$2 million - Excluding notable items, results reflected the impact of strong new business in recent periods and favorable longevity experience.
-
Foreign currency exchange rates had a favorable effect of
on adjusted operating income before taxes.$6 million
Traditional |
|||||||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net premiums |
$ |
834 |
|
|
$ |
709 |
|
|
$ |
3,014 |
|
|
$ |
2,785 |
|
Adjusted operating income before taxes |
|
63 |
|
|
|
71 |
|
|
|
282 |
|
|
|
373 |
|
Adjusted operating income before taxes, excluding notable items |
|
63 |
|
|
|
71 |
|
|
|
377 |
|
|
|
371 |
|
Net Premiums
-
Foreign currency exchange rates had an adverse effect on net premiums of
for the quarter and$9 million for the full year.$59 million
Quarterly Results
- Results reflected unfavorable claims and other experience. However, economic claims experience was favorable for the quarter.
-
Foreign currency exchange rates had a favorable effect of
on adjusted operating income before taxes.$1 million
Full Year Results
-
Results reflected
of unfavorable impacts from the annual actuarial assumption review and$82 million of unfavorable impacts from the change in policy retention limit, both of which are reflected as notable items.$13 million - Excluding notable items, results reflected the benefit of in-force management actions and favorable overall experience.
-
Foreign currency exchange rates had a favorable effect of
on adjusted operating income before taxes.$1 million
Financial Solutions |
|||||||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net premiums |
$ |
66 |
|
|
$ |
47 |
|
|
$ |
224 |
|
|
$ |
218 |
|
Adjusted operating income before taxes |
|
65 |
|
|
|
66 |
|
|
|
255 |
|
|
|
212 |
|
Adjusted operating income before taxes, excluding notable items |
|
65 |
|
|
|
66 |
|
|
|
264 |
|
|
|
212 |
|
Quarterly Results
- Results reflected favorable overall experience, partially offset by lower variable investment income.
-
Foreign currency exchange rates had a favorable effect of
on adjusted operating income before taxes.$6 million
Full Year Results
-
Results reflected
of unfavorable impacts from assumption changes, which are reflected as notable items.$9 million - Excluding notable items, results reflected favorable overall experience, partially offset by lower variable investment income.
-
Foreign currency exchange rates had a favorable effect of
on adjusted operating income before taxes.$1 million
Corporate and Other |
|||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Adjusted operating income (loss) before taxes |
(71 |
) |
|
(23 |
) |
|
(171 |
) |
|
(128 |
) |
Adjusted operating income (loss) before taxes, excluding notable items |
(71 |
) |
|
(23 |
) |
|
(171 |
) |
|
(128 |
) |
Quarterly Results
- Results were unfavorable compared to the expected quarterly average run rate due to higher general expenses, primarily related to projects, initiatives, and incentive compensation accrual true-up, and higher financing costs.
Full Year Results
- Results were unfavorable due to higher general expenses, primarily related to projects, initiatives, and incentive compensation, and higher financing costs, partially offset by favorable investment income.
Intermediate Financial Targets
We have updated our intermediate term financial targets, including raising our adjusted operating ROE target to
Dividend Declaration
Effective February 4, 2025, the board of directors declared a regular quarterly dividend of
Earnings Conference Call
A conference call to discuss fourth quarter results will begin at 10 a.m. Eastern Time on Friday, February 7, 2025. Interested parties may access the call by dialing 1-844-481-2753 (1-412-317-0669 international) and asking to be joined into the Reinsurance Group of America, Incorporated (RGA) call. A live audio webcast of the conference call will be available on RGA's Investor Relations website at www.rgare.com. A replay of the conference call will be available at the same address for 90 days following the conference call.
RGA has posted to its website an earnings presentation and a Quarterly Financial Supplement that includes financial information for all segments as well as information on its investment portfolio. Additionally, RGA posts periodic reports, press releases and other useful information on its Investor Relations website.
Non-GAAP Financial Measures and Other Definitions
Reinsurance Group of America, Incorporated (the “Company”) discloses certain financial measures that are not determined in accordance with
The following non-GAAP financial measures are used in this document or in other public disclosures made by the Company from time to time:
1. |
Adjusted operating income, on a pre-tax and after-tax basis, and adjusted operating income per diluted share. The Company uses these measures as a basis for analyzing financial results because the Company believes that such measures better reflect the ongoing profitability and underlying trends of the Company’s continuing operations. Adjusted operating income is calculated as net income available to the Company’s shareholders (or, in the case of pre-tax adjusted operating income, income before income taxes) excluding, as applicable: |
|
|
as such items can be volatile and may not reflect the underlying performance of the Company’s business. In addition, adjusted operating income per diluted share is calculated as adjusted operating income divided by weighted average diluted shares outstanding. These measures also serve as a basis for establishing target levels and awards under the Company’s management incentive programs. | |
Adjusted operating income (loss) before income taxes, when presented at a segment level, is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments, and will be presented in our financial statement footnotes beginning with the Company’s annual report on Form 10-K to be filed for the fiscal year ended December 31, 2024 in accordance with ASC 280 – “Segment Reporting.” Adjusted operating income (loss) before income taxes, when presented on a consolidated basis, is a non-GAAP financial measure. |
|
2. |
Adjusted operating income (on a pre-tax and after-tax basis), excluding notable items, and adjusted operating income per diluted share, excluding notable items. Notable items are items the Company believes may not be indicative of its ongoing operating performance which are excluded from adjusted operating income to provide investors and other third parties with a better understanding of the Company’s results. Such items may be unexpected, unknown when the Company prepares its business plan or otherwise. Notable items presented include the financial impact of the Company’s assumption reviews. |
3. |
Adjusted operating revenue. This measure excludes the effects of net realized capital gains and losses, and changes in the fair value of certain embedded derivatives. |
4. |
Shareholders’ equity position excluding the impact of accumulated other comprehensive income (loss) (“AOCI”), shareholders’ average equity position excluding AOCI, and book value per share excluding the impact of AOCI. The Company believes that these measures provide useful information since such measures exclude AOCI-related items that are not permanent and can fluctuate significantly from period to period, and may not reflect the impact of the underlying performance of the Company’s businesses on shareholders’ equity and book value per share. AOCI primarily relates to changes in interest rates, credit spreads on its investment securities, future policy benefits discount rate measurement gains (losses), market risk benefits instrument-specific credit risk remeasurement gains (losses) and foreign currency fluctuations. The Company also discloses the following non-GAAP financial measures: |
|
|
5. |
Adjusted operating return on equity. This measure is calculated as adjusted operating income divided by average shareholders’ equity excluding AOCI. Adjusted operating return on equity also serves as a basis for establishing target levels and awards under the Company’s management incentive programs. The Company also discloses the following non-GAAP financial measures: |
|
Reconciliations of the foregoing non-GAAP financial measures (to the extent disclosed in this document) to the most comparable GAAP financial measures are provided in the Appendix at the end of this document. Except as otherwise noted herein, the non-GAAP figures and reconciliations presented herein reflect the Company’s adoption of the Financial Accounting Standards Board’s Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts” and related amendments (“LDTI”). For additional information regarding the Company’s adoption of LDTI, see Note 1 – “Business and Basis of Presentation” and Note 3 – “Impact of New Accounting Standard” in the notes to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
The Company is unable to provide reconciliations of the intermediate term targets of consolidated adjusted operating income (loss) before taxes, adjusted operating income (loss) before taxes, excluding notable items (on both a segment-level and consolidated basis), consolidated adjusted operating ROE, respectively, which are forward-looking non-GAAP financial measures, due to, among other things, that these targets are a composite of our goals for future results, the inherent difficulty in forecasting generally, and the difficulty of quantifying accurate forecasts of the numerous components comprising these calculations that would be necessary to provide any such reconciliations. In addition, actual performance in future periods may vary from the intermediate term target ranges for a variety of reasons, including known and unknown risk and uncertainties.
Other Definitions:
Value of In-force Business Margins is an operating measure reflecting:
- Expected underwriting margin1, which is derived from the estimated cash flows used to determine LDTI reserves. This amount is calculated using the locked-in LDTI liability discount rates.
- Expected investment margin, which (i) for LDTI products, values derived from the difference between using the expected book yields2 and locked-in LDTI liability discount rates and (ii) for Interest-sensitive products, values calculated using expected investment spread2 and expected duration of treaty.
- Expected fee income, which comes primarily from capital solutions products, is calculated as the present value of expected fees.
Such measure excludes management expenses, impact of capital, and taxes.
These values are based on the Company’s current estimates and assumptions and could materially change.
1 Represents the expected difference, based on current assumptions, between the present value of premiums and present value of claim benefits and treaty allowances, with:
- Present value of premiums is the present value of expected gross premiums plus Deferred Profit Liability (DPL);
- Present value of claim benefits is the present value of expected claim payments less Liability for Future Policy Benefits (LFPB) (before zero floor is applied); and
- Present value of treaty allowances is the present value of future allowances plus related Deferred Acquisition Costs (DAC).
2 Expected book yields are based on 2024 actual portfolio book yields adjusted for longer-term VII expectations. Investment spread is the difference between expected book yields and interest credited expense.
Cohort Definitions:
-
Uncapped (profitable) cohorts: cohorts with a net premium ratio under
100% -
Capped (loss) cohorts: cohorts with a net premium ratio equal to or greater than
100% - Floored cohorts: cohorts with reserves floored at zero as reserves cannot be negative
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world’s largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus – all directed toward creating sustainable long-term value. RGA has approximately
Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial performance, and growth potential of Reinsurance Group of America, Incorporated (the “Company”). Forward-looking statements often contain words and phrases such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “pro forma,” “project,” “should,” “will,” “would,” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. 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.
Factors that could also cause results or events to differ, possibly materially, from those expressed or implied by forward-looking statements, include, among others: (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 the 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
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, except as required under applicable securities law. For a discussion of the 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 Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as may be supplemented by Item 1A - “Risk Factors” in the Company’s subsequent Quarterly Reports on Form 10-Q and in our other periodic and current reports filed with the SEC.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Adjusted Operating Income (Dollars in millions, except per share data) |
|||||||||||||||
(Unaudited) |
Three Months Ended December 31, |
||||||||||||||
|
2024 |
|
2023 |
||||||||||||
|
|
|
Diluted
|
|
|
|
Diluted
|
||||||||
Net income available to RGA shareholders |
$ |
148 |
|
|
$ |
2.22 |
|
|
$ |
158 |
|
|
$ |
2.37 |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net |
300 |
4.48 |
(14 |
) |
(0.22 |
) |
|||||||||
Market risk benefits remeasurement (gains) losses |
(26 |
) |
(0.39 |
) |
22 |
0.33 |
|||||||||
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
4 |
|
|
|
0.06 |
|
|
|
(2 |
) |
|
|
(0.03 |
) |
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
|
(99 |
) |
|
|
(1.48 |
) |
|
|
143 |
|
|
|
2.14 |
|
Included in interest credited |
|
(2 |
) |
|
|
(0.03 |
) |
|
|
4 |
|
|
|
0.06 |
|
Investment (income) loss on unit-linked variable annuities |
|
1 |
|
|
|
0.01 |
|
|
|
(2 |
) |
|
|
(0.03 |
) |
Interest credited on unit-linked variable annuities |
|
(1 |
) |
|
|
(0.01 |
) |
|
|
2 |
|
|
|
0.03 |
|
Interest expense on uncertain tax positions |
|
1 |
|
|
|
0.01 |
|
|
|
(1 |
) |
|
|
(0.01 |
) |
Other (1) |
|
(16 |
) |
|
|
(0.24 |
) |
|
|
23 |
|
|
|
0.34 |
|
Uncertain tax positions and other tax related items |
|
22 |
|
|
|
0.33 |
|
|
|
(19 |
) |
|
|
(0.28 |
) |
Net income attributable to noncontrolling interest |
|
2 |
|
|
|
0.03 |
|
|
|
2 |
|
|
|
0.03 |
|
Adjusted operating income |
|
334 |
|
|
|
4.99 |
|
|
|
316 |
|
|
|
4.73 |
|
Notable items |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted operating income, excluding notable items |
$ |
334 |
|
|
$ |
4.99 |
|
|
$ |
316 |
|
|
$ |
4.73 |
|
(Unaudited) |
Twelve Months Ended December 31, |
||||||||||||||
|
2024 |
|
2023 |
||||||||||||
|
|
|
Diluted
|
|
|
|
Diluted
|
||||||||
Net income available to RGA shareholders |
$ |
717 |
|
|
$ |
10.73 |
|
|
$ |
902 |
|
|
$ |
13.44 |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
706 |
|
|
|
10.56 |
|
|
|
280 |
|
|
|
4.18 |
|
Market risk benefits remeasurement (gains) losses |
|
(35 |
) |
|
|
(0.52 |
) |
|
|
(8 |
) |
|
|
(0.12 |
) |
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
2 |
|
|
|
0.03 |
|
|
|
(4 |
) |
|
|
(0.06 |
) |
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
|
(92 |
) |
|
|
(1.38 |
) |
|
|
129 |
|
|
|
1.92 |
|
Included in interest credited |
|
12 |
|
|
|
0.18 |
|
|
|
(5 |
) |
|
|
(0.07 |
) |
Investment (income) loss on unit-linked variable annuities |
|
2 |
|
|
|
0.03 |
|
|
|
1 |
|
|
|
0.01 |
|
Interest credited on unit-linked variable annuities |
|
(2 |
) |
|
|
(0.03 |
) |
|
|
(1 |
) |
|
|
(0.01 |
) |
Interest expense on uncertain tax positions |
|
1 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Other (1) |
|
13 |
|
|
|
0.19 |
|
|
|
29 |
|
|
|
0.43 |
|
Uncertain tax positions and other tax related items |
|
11 |
|
|
|
0.16 |
|
|
|
4 |
|
|
|
0.06 |
|
Net income attributable to noncontrolling interest |
|
7 |
|
|
|
0.10 |
|
|
|
7 |
|
|
|
0.10 |
|
Adjusted operating income |
|
1,342 |
|
|
|
20.06 |
|
|
|
1,334 |
|
|
|
19.88 |
|
Notable items |
|
168 |
|
|
|
2.51 |
|
|
|
— |
|
|
|
— |
|
Adjusted operating income, excluding notable items |
$ |
1,510 |
|
|
$ |
22.57 |
|
|
$ |
1,334 |
|
|
$ |
19.88 |
|
(1) |
The Other line item includes pension risk transfer day one loss, market value adjustments on surrender charges and other immaterial items. |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Consolidated Effective Income Tax Rates (Dollars in millions) |
|||||||||||||||||||||
(Unaudited) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||
|
Pre-tax
|
|
Income
|
|
Effective
|
|
Pre-tax
|
|
Income
|
|
Effective
|
||||||||||
GAAP income |
$ |
225 |
|
|
$ |
75 |
|
|
33.6 |
% |
|
$ |
980 |
|
|
$ |
256 |
|
|
26.3 |
% |
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized and unrealized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
380 |
|
|
|
80 |
|
|
|
|
|
897 |
|
|
|
191 |
|
|
|
||
Market risk benefits remeasurement (gains) losses |
|
(32 |
) |
|
|
(6 |
) |
|
|
|
|
(44 |
) |
|
|
(9 |
) |
|
|
||
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
6 |
|
|
|
2 |
|
|
|
|
|
3 |
|
|
|
1 |
|
|
|
||
Embedded derivatives: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in investment related gains/losses, net |
|
(125 |
) |
|
|
(26 |
) |
|
|
|
|
(116 |
) |
|
|
(24 |
) |
|
|
||
Included in interest credited |
|
(3 |
) |
|
|
(1 |
) |
|
|
|
|
15 |
|
|
|
3 |
|
|
|
||
Investment (income) loss on unit-linked variable annuities |
|
2 |
|
|
|
1 |
|
|
|
|
|
3 |
|
|
|
1 |
|
|
|
||
Interest credited on unit-linked variable annuities |
|
(2 |
) |
|
|
(1 |
) |
|
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
||
Interest expense on uncertain tax positions |
|
1 |
|
|
|
— |
|
|
|
|
|
1 |
|
|
|
— |
|
|
|
||
Other (2) |
|
(21 |
) |
|
|
(5 |
) |
|
|
|
|
16 |
|
|
|
3 |
|
|
|
||
Uncertain tax positions and other tax related items |
|
— |
|
|
|
(22 |
) |
|
|
|
|
— |
|
|
|
(11 |
) |
|
|
||
Adjusted operating income |
|
431 |
|
|
|
97 |
|
|
22.5 |
% |
|
|
1,752 |
|
|
|
410 |
|
|
23.4 |
% |
Notable items |
|
— |
|
|
|
— |
|
|
|
|
|
194 |
|
|
|
26 |
|
|
|
||
Adjusted operating income, excluding notable items |
$ |
431 |
|
|
$ |
97 |
|
|
|
|
$ |
1,946 |
|
|
$ |
436 |
|
|
|
(1) |
The Company rounds amounts in the financial statements to millions and calculates the effective tax rate from the underlying whole-dollar amounts. Thus certain amounts may not recalculate based on the numbers due to rounding. |
|
(2) |
The Other line item includes pension risk transfer day one loss, market value adjustments on surrender charges and other immaterial items. |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Consolidated Income before Income Taxes to Pre-tax Adjusted Operating Income (Dollars in millions) |
|||||||
(Unaudited) |
Three Months Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Income before income taxes |
$ |
225 |
|
|
$ |
164 |
|
Reconciliation to pre-tax adjusted operating income: |
|
|
|
||||
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
380 |
|
|
|
(18 |
) |
Market risk benefits remeasurement (gains) losses |
|
(32 |
) |
|
|
28 |
|
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
6 |
|
|
|
(3 |
) |
Embedded derivatives: |
|
|
|
||||
Included in investment related gains/losses, net |
|
(125 |
) |
|
|
181 |
|
Included in interest credited |
|
(3 |
) |
|
|
5 |
|
Investment (income) loss on unit-linked variable annuities |
|
2 |
|
|
|
(3 |
) |
Interest credited on unit-linked variable annuities |
|
(2 |
) |
|
|
3 |
|
Interest expense on uncertain tax positions |
|
1 |
|
|
|
(1 |
) |
Other (1) |
|
(21 |
) |
|
|
30 |
|
Pre-tax adjusted operating income |
|
431 |
|
|
|
386 |
|
Notable items |
|
— |
|
|
|
— |
|
Pre-tax adjusted operating income, excluding notable items |
$ |
431 |
|
|
$ |
386 |
|
(Unaudited) |
Twelve Months Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Income before income taxes |
$ |
980 |
|
|
$ |
1,160 |
|
Reconciliation to pre-tax adjusted operating income: |
|
|
|
||||
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
897 |
|
|
|
360 |
|
Market risk benefits remeasurement (gains) losses |
|
(44 |
) |
|
|
(10 |
) |
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
3 |
|
|
|
(5 |
) |
Embedded derivatives: |
|
|
|
||||
Included in investment related gains/losses, net |
|
(116 |
) |
|
|
163 |
|
Included in interest credited |
|
15 |
|
|
|
(6 |
) |
Investment (income) loss on unit-linked variable annuities |
|
3 |
|
|
|
1 |
|
Interest credited on unit-linked variable annuities |
|
(3 |
) |
|
|
(1 |
) |
Interest expense on uncertain tax positions |
|
1 |
|
|
|
— |
|
Other (1) |
|
16 |
|
|
|
37 |
|
Pre-tax adjusted operating income |
|
1,752 |
|
|
|
1,699 |
|
Notable items |
|
194 |
|
|
|
(3 |
) |
Pre-tax adjusted operating income, excluding notable items |
$ |
1,946 |
|
|
$ |
1,696 |
|
(1) |
The Other line item includes pension risk transfer day one loss, market value adjustments on surrender charges and other immaterial items. |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Per Share and Shares Data (In thousands, except per share data) |
|||||||||||
(Unaudited) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Earnings per share from net income (loss): |
|
|
|
|
|
|
|
||||
Basic earnings per share |
$ |
2.26 |
|
$ |
2.40 |
|
$ |
10.90 |
|
$ |
13.60 |
Diluted earnings per share |
$ |
2.22 |
|
$ |
2.37 |
|
$ |
10.73 |
|
$ |
13.44 |
|
|
|
|
|
|
|
|
||||
Diluted earnings per share from adjusted operating income |
$ |
4.99 |
|
$ |
4.73 |
|
$ |
20.06 |
|
$ |
19.88 |
Weighted average number of common and common equivalent shares outstanding |
|
66,982 |
|
|
66,721 |
|
|
66,880 |
|
|
67,117 |
(Unaudited) |
At December 31, |
||||
|
|
2024 |
|
|
2023 |
Treasury shares |
|
19,439 |
|
|
19,690 |
Common shares outstanding |
|
65,872 |
|
|
65,621 |
Book value per share outstanding |
$ |
164.19 |
|
$ |
138.39 |
Book value per share outstanding, before impact of AOCI |
$ |
151.31 |
|
$ |
144.01 |
Reconciliation of Book Value Per Share to Book Value Per Share Excluding AOCI and B36 Derivatives |
|||||||
(Unaudited) |
At December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Book value per share outstanding |
$ |
164.19 |
|
|
$ |
138.39 |
|
Less effect of AOCI: |
|
|
|
||||
Accumulated currency translation adjustment |
|
(0.27 |
) |
|
|
1.04 |
|
Unrealized (depreciation) appreciation of securities |
|
(68.73 |
) |
|
|
(55.88 |
) |
Effect of updating discount rates on future policy benefits |
|
82.16 |
|
|
|
49.62 |
|
Change in instrument-specific credit risk for market risk benefits |
|
0.03 |
|
|
|
0.05 |
|
Pension and postretirement benefits |
|
(0.31 |
) |
|
|
(0.45 |
) |
Book value per share outstanding, before impact of AOCI |
|
151.31 |
|
|
|
144.01 |
|
Less effect of B36 derivatives |
|
(0.66 |
) |
|
|
(2.06 |
) |
Book value per share outstanding, before impact of AOCI and B36 derivatives |
$ |
151.97 |
|
|
$ |
146.07 |
|
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Shareholders' Average Equity to Shareholders' Average Equity Excluding AOCI (Dollars in millions) |
|||
(Unaudited) |
|
||
Trailing Twelve Months Ended December 31, 2024: |
Average Equity |
||
Shareholders' average equity |
$ |
10,045 |
|
Less effect of AOCI: |
|
||
Accumulated currency translation adjustment |
|
60 |
|
Unrealized (depreciation) appreciation of securities |
|
(3,950 |
) |
Effect of updating discount rates on future policy benefits |
|
4,234 |
|
Change in instrument-specific credit risk for market risk benefits |
|
4 |
|
Pension and postretirement benefits |
|
(27 |
) |
Shareholders' average equity, excluding AOCI |
|
9,724 |
|
Year-to-date notable items, net of tax |
|
67 |
|
Shareholders' average equity, excluding AOCI and notable items |
$ |
9,791 |
|
Reconciliation of Trailing Twelve Months of Consolidated Net Income to Adjusted Operating Income and Related Return on Equity (Dollars in millions) |
||||
(Unaudited) |
|
|
Return on
|
|
Trailing Twelve Months Ended December 31, 2024: |
Income |
|
||
Net income available to RGA shareholders |
$ |
717 |
|
7.1 % |
Reconciliation to adjusted operating income: |
|
|
|
|
Capital (gains) losses, derivatives and other, net |
|
687 |
|
|
Change in fair value of embedded derivatives |
|
(80) |
|
|
Tax expense on uncertain tax positions and other tax related items |
|
11 |
|
|
Net income attributable to noncontrolling interest |
|
7 |
|
|
Adjusted operating income |
|
1,342 |
|
13.8 % |
Notable items after tax |
|
168 |
|
|
Adjusted operating income, excluding notable items |
$ |
1,510 |
|
15.4 % |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollars in millions) |
|||||||||||||||
(Unaudited) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Net premiums |
$ |
4,156 |
|
|
$ |
4,108 |
|
|
$ |
17,843 |
|
|
$ |
15,085 |
|
Investment income, net of related expenses |
|
1,185 |
|
|
|
956 |
|
|
|
4,416 |
|
|
|
3,591 |
|
Investment related gains (losses), net |
|
(247 |
) |
|
|
(155 |
) |
|
|
(745 |
) |
|
|
(481 |
) |
Other revenue |
|
147 |
|
|
|
98 |
|
|
|
593 |
|
|
|
372 |
|
Total revenues |
|
5,241 |
|
|
|
5,007 |
|
|
|
22,107 |
|
|
|
18,567 |
|
Benefits and expenses: |
|
|
|
|
|
|
|
||||||||
Claims and other policy benefits |
|
3,943 |
|
|
|
3,837 |
|
|
|
16,903 |
|
|
|
13,872 |
|
Future policy benefits remeasurement (gains) losses |
|
(69 |
) |
|
|
33 |
|
|
|
(32 |
) |
|
|
(62 |
) |
Market risk benefits remeasurement (gains) losses |
|
(32 |
) |
|
|
28 |
|
|
|
(44 |
) |
|
|
(10 |
) |
Interest credited |
|
292 |
|
|
|
217 |
|
|
|
1,087 |
|
|
|
864 |
|
Policy acquisition costs and other insurance expenses |
|
411 |
|
|
|
369 |
|
|
|
1,641 |
|
|
|
1,397 |
|
Other operating expenses |
|
385 |
|
|
|
290 |
|
|
|
1,268 |
|
|
|
1,089 |
|
Interest expense |
|
86 |
|
|
|
69 |
|
|
|
304 |
|
|
|
257 |
|
Total benefits and expenses |
|
5,016 |
|
|
|
4,843 |
|
|
|
21,127 |
|
|
|
17,407 |
|
Income before income taxes |
|
225 |
|
|
|
164 |
|
|
|
980 |
|
|
|
1,160 |
|
Provision for income taxes |
|
75 |
|
|
|
4 |
|
|
|
256 |
|
|
|
251 |
|
Net income |
|
150 |
|
|
|
160 |
|
|
|
724 |
|
|
|
909 |
|
Net income attributable to noncontrolling interest |
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
7 |
|
Net income available to RGA shareholders |
$ |
148 |
|
|
$ |
158 |
|
|
$ |
717 |
|
|
$ |
902 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250204363813/en/
Investor Contact
Jeff Hopson
Senior Vice President - Investor Relations
(636) 736-2068
Source: Reinsurance Group of America, Incorporated