Reinsurance Group of America Reports Record Third Quarter Results
Reinsurance Group of America (RGA) reported strong Q3 2024 results with net income of $156 million ($2.33 per diluted share), compared to $287 million ($4.29 per diluted share) in Q3 2023. Adjusted operating income reached $242 million ($3.62 per diluted share), while adjusted operating income excluding notable items hit a record $410 million ($6.13 per diluted share). The company deployed $382 million into in-force block transactions and increased Value of In-force Business Margins by $4.6 billion (13.9%) in the first nine months. Consolidated net premiums totaled $4.4 billion, up 3.2% year-over-year, with investment income increasing 14.4% due to higher rates and transaction volumes.
Reinsurance Group of America (RGA) ha riportato risultati positivi per il terzo trimestre del 2024, con un utile netto di 156 milioni di dollari (2,33 dollari per azione diluita), rispetto ai 287 milioni di dollari (4,29 dollari per azione diluita) del terzo trimestre del 2023. Il reddito operativo rettificato ha raggiunto i 242 milioni di dollari (3,62 dollari per azione diluita), mentre il reddito operativo rettificato escludendo voci significative ha toccato un record di 410 milioni di dollari (6,13 dollari per azione diluita). L'azienda ha investito 382 milioni di dollari in transazioni di blocchi attivi e ha aumentato il Valore dei Margini di Affari In-Force di 4,6 miliardi di dollari (13,9%) nei primi nove mesi. I premi netti consolidati hanno totalizzato 4,4 miliardi di dollari, in crescita del 3,2% rispetto all'anno precedente, con un aumento del reddito da investimenti del 14,4% grazie a tassi più elevati e volumi di transazioni.
Reinsurance Group of America (RGA) reportó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 156 millones de dólares (2.33 dólares por acción diluida), en comparación con 287 millones de dólares (4.29 dólares por acción diluida) en el tercer trimestre de 2023. El ingreso operativo ajustado alcanzó los 242 millones de dólares (3.62 dólares por acción diluida), mientras que el ingreso operativo ajustado excluyendo partidas notables alcanzó un récord de 410 millones de dólares (6.13 dólares por acción diluida). La compañía desplegó 382 millones de dólares en transacciones de bloques en vigor y aumentó el Valor de los Márgenes del Negocio en Vigor en 4.6 mil millones de dólares (13.9%) en los primeros nueve meses. Las primas netas consolidadas ascendieron a 4.4 mil millones de dólares, un aumento del 3.2% interanual, con los ingresos por inversiones creciendo un 14.4% debido a tasas más altas y mayores volúmenes de transacciones.
Reinsurance Group of America (RGA)는 2024년 3분기 강력한 실적을 보고했으며, 순이익은 1억 5,600만 달러(희석주당 2.33달러)로, 2023년 3분기의 2억 8,700만 달러(희석주당 4.29달러)와 비교됩니다. 조정 운영 수익은 2억 4,200만 달러(희석주당 3.62달러)에 도달했으며, 주요 항목을 제외한 조정 운영 수익은 기록적인 4억 1,000만 달러(희석주당 6.13달러)에 달했습니다. 회사는 3억 8,200만 달러를 기존 블록 거래에 투자했으며, 첫 9개월 동안 비즈니스 마진 가치가 46억 달러(13.9%) 증가했습니다. Consolidated net premiums는 44억 달러로, 전년 대비 3.2% 증가했으며, 투자 수익은 높은 금리와 거래량 증가로 14.4% 증가했습니다.
Reinsurance Group of America (RGA) a rapporté de solides résultats pour le troisième trimestre de 2024, avec un bénéfice net de 156 millions de dollars (2,33 dollars par action diluée), contre 287 millions de dollars (4,29 dollars par action diluée) au troisième trimestre 2023. Le résultat opérationnel ajusté a atteint 242 millions de dollars (3,62 dollars par action diluée), tandis que le résultat opérationnel ajusté, hors éléments notables, a atteint un record de 410 millions de dollars (6,13 dollars par action diluée). La société a investi 382 millions de dollars dans des transactions de blocs en cours et a augmenté la Valeur des Marges des Affaires en Cours de 4,6 milliards de dollars (13,9%) au cours des neuf premiers mois. Les primes nettes consolidées ont totalisé 4,4 milliards de dollars, soit une augmentation de 3,2% par rapport à l'année précédente, avec des revenus d'investissement en hausse de 14,4% en raison de taux plus élevés et de volumes de transactions accrus.
Reinsurance Group of America (RGA) meldete starke Ergebnisse für das dritte Quartal 2024 mit einem Nettogewinn von 156 Millionen Dollar (2,33 Dollar pro verwässerter Aktie), im Vergleich zu 287 Millionen Dollar (4,29 Dollar pro verwässerter Aktie) im dritten Quartal 2023. Der bereinigte Betriebsertrag erreichte 242 Millionen Dollar (3,62 Dollar pro verwässerter Aktie), während der bereinigte Betriebsertrag ohne bemerkenswerte Posten einen Rekord von 410 Millionen Dollar (6,13 Dollar pro verwässerter Aktie) erzielte. Das Unternehmen investierte 382 Millionen Dollar in Transaktionen bestehender Blöcke und erhöhte den Wert der in Kraft befindlichen Geschäfts Margen um 4,6 Milliarden Dollar (13,9%) in den ersten neun Monaten. Die konsolidierten Nettoprämien beliefen sich auf 4,4 Milliarden Dollar, was einem Anstieg von 3,2% im Jahresvergleich entspricht, und die Erträge aus Investitionen stiegen um 14,4% aufgrund höherer Zinssätze und Transaktionsvolumina.
- Record quarterly adjusted operating income of $6.13 per diluted share
- Net premiums increased 3.2% to $4.4 billion
- Investment income grew 14.4% due to higher rates
- Value of In-force Business Margins increased by $4.6 billion (13.9%)
- Strong capital position with $0.7 billion in excess capital
- Net income decreased to $156 million from $287 million year-over-year
- Net income per diluted share declined to $2.33 from $4.29 year-over-year
- Unfavorable $194 million impact from actuarial assumption review and retrocession recapture
Insights
RGA delivered a record-breaking quarter with adjusted operating income, excluding notable items, of
Key strengths include robust performance in Asia Traditional and Financial Solutions segments, alongside strong U.S. Traditional and EMEA operations. Net premiums grew by
The decision to increase per-life retention limits effective January 2025 initially results in a
The strategic shift in retention policy demonstrates RGA's growing risk appetite and market confidence. The increased retention limit, unchanged since 2008, reflects the company's enhanced ability to manage larger risks due to its significant growth and diversification. While causing a short-term earnings impact, this move positions RGA to capture more premium revenue and improve long-term profitability.
The favorable
Third Quarter Results
-
Net income available to RGA shareholders of
per diluted share$2.33 -
Adjusted operating income of
per diluted share$3.62 -
Adjusted operating income, excluding notable items of
per diluted share, a record quarterly result$6.13 -
ROE of
7.7% , adjusted operating ROE of13.8% . Adjusted operating ROE, excluding notable items of15.5% for the trailing twelve months, a record quarterly result -
Deployed capital of
into in-force block transactions$382 million -
Increased Value of In-force Business Margins by
or$4.6 billion 13.9% in the first nine months of the year
Tony Cheng, President and Chief Executive Officer, commented, “The third quarter was an excellent one for us, as we produced record financial results and demonstrated our continued strong momentum in virtually all aspects of our business. Our Asia Traditional and Financial Solutions businesses produced very good results, and our
“Our balance sheet remains strong, and we ended the quarter with excess capital of approximately
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions, except per share data) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net premiums |
$ |
4,391 |
|
$ |
4,255 |
|
$ |
13,687 |
|
$ |
10,977 |
Net income available to RGA shareholders |
|
156 |
|
|
287 |
|
|
569 |
|
|
744 |
Net income available to RGA shareholders per diluted share |
|
2.33 |
|
|
4.29 |
|
|
8.53 |
|
|
11.06 |
Adjusted operating income |
|
242 |
|
|
372 |
|
|
1,008 |
|
|
1,018 |
Adjusted operating income, excluding notable items |
|
410 |
|
|
372 |
|
|
1,176 |
|
|
1,018 |
Adjusted operating income per diluted share |
|
3.62 |
|
|
5.57 |
|
|
15.11 |
|
|
15.14 |
Adjusted operating income, excluding notable items per diluted share |
|
6.13 |
|
|
5.57 |
|
|
17.63 |
|
|
15.14 |
Book value per share |
|
168.93 |
|
|
122.40 |
|
|
|
|
||
Book value per share, excluding accumulated other comprehensive income (AOCI) |
|
149.63 |
|
|
142.63 |
|
|
|
|
||
Book value per share, excluding AOCI and B36 |
|
151.79 |
|
|
142.51 |
|
|
|
|
||
Total assets |
|
120,258 |
|
|
87,422 |
|
|
|
|
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.
There are two key items reflected as notable items in the third quarter:
-
In individual life markets, RGA retains a maximum coverage per individual life and retrocedes risk for amounts above this amount. The current “per life” retention limit has been effective since 2008 and RGA has decided to increase this limit, effective January 1, 2025. Since 2008 RGA has grown significantly and further diversified its business, thus increasing the ability to absorb earnings volatility related to claims. Additionally, under the recently adopted LDTI accounting standard, earnings volatility is further reduced and spread over the life of the business. As a result of this increase, RGA expects to recapture business previously retroceded starting in 2025. The impact of updating our assumptions to reflect the new retention limit is an unfavorable
to consolidated pre-tax adjusted operating income in the third quarter. However, this action has a favorable$136 million impact to the Value of In-force Business Margins that is expected to be recognized over the remaining life of the business. RGA expects a favorable impact to 2025 run-rates, with increasing impacts over time.$1.5 billion -
RGA completed its annual actuarial assumption review. The impact to consolidated pre-tax adjusted operating income is an unfavorable
, primarily driven by updated lapse rate assumptions for term business in$58 million India , partially offset by favorable mortality updates in theU.S. andCanada . However, this has a favorable impact to the Value of In-force Business Margins that is expected to be recognized over the remaining life of the business.$0.1 billion
Pre-tax Income Impact ($ in millions) |
Annual Assumption Review |
|
Retrocession Recapture |
|
Total |
||||||
|
$ |
30 |
|
|
$ |
(83 |
) |
|
$ |
(53 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Canada Traditional |
|
30 |
|
|
|
(25 |
) |
|
|
5 |
|
Canada Financial Solutions |
|
— |
|
|
|
— |
|
|
|
— |
|
EMEA Traditional |
|
(25 |
) |
|
|
(15 |
) |
|
|
(40 |
) |
EMEA Financial Solutions |
|
(2 |
) |
|
|
— |
|
|
|
(2 |
) |
APAC Traditional |
|
(82 |
) |
|
|
(13 |
) |
|
|
(95 |
) |
APAC Financial Solutions |
|
(9 |
) |
|
|
— |
|
|
|
(9 |
) |
Total |
$ |
(58 |
) |
|
$ |
(136 |
) |
|
$ |
(194 |
) |
In the third quarter, consolidated net premiums totaled
Compared with the year-ago period, excluding spread-based businesses, third 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 |
$ |
1,912 |
|
$ |
1,746 |
|
$ |
5,454 |
|
$ |
5,111 |
Pre-tax income |
|
57 |
|
|
105 |
|
|
347 |
|
|
288 |
Pre-tax adjusted operating income |
|
79 |
|
|
103 |
|
|
374 |
|
|
288 |
Pre-tax adjusted operating income, excluding notable items |
|
132 |
|
|
120 |
|
|
427 |
|
|
305 |
Quarterly 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.$83 million - Excluding notable items, results reflected favorable in-force management actions and favorable Individual Health results. Individual Life claims experience was in line with expectations.
Financial Solutions |
||||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
|||||||||
($ in millions) |
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
2023 |
Pre-tax income (loss) |
$ |
(46 |
) |
|
$ |
108 |
|
$ |
54 |
|
$ |
290 |
Pre-tax adjusted operating income |
|
80 |
|
|
|
136 |
|
|
250 |
|
|
350 |
Pre-tax adjusted operating income, excluding notable items |
|
80 |
|
|
|
114 |
|
|
250 |
|
|
328 |
Quarterly Results
- Results were below the expected range due to lower contributions from new business.
Traditional |
|||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net premiums |
$ |
314 |
|
$ |
302 |
|
$ |
958 |
|
$ |
904 |
Pre-tax income |
|
29 |
|
|
6 |
|
|
103 |
|
|
70 |
Pre-tax adjusted operating income |
|
30 |
|
|
10 |
|
|
102 |
|
|
71 |
Pre-tax adjusted operating income, excluding notable items |
|
25 |
|
|
23 |
|
|
97 |
|
|
84 |
Net Premiums
-
Foreign currency exchange rates had an adverse effect on net premiums of
for the quarter.$5 million
Quarterly 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 slightly below expectations due to modestly unfavorable claims experience.
-
Foreign currency exchange rates had an adverse effect of
on pre-tax income and pre-tax adjusted operating income.$1 million
Financial Solutions |
|||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Pre-tax income |
$ |
21 |
|
$ |
30 |
|
$ |
34 |
|
$ |
46 |
Pre-tax adjusted operating income |
|
4 |
|
|
30 |
|
|
18 |
|
|
46 |
Pre-tax adjusted operating income, excluding notable items |
|
4 |
|
|
8 |
|
|
18 |
|
|
24 |
Quarterly Results
- Results reflected the negative impact of a modest one-time item.
-
Foreign currency exchange rates had an adverse effect of
on pre-tax income and pre-tax adjusted operating income.$1 million
Traditional |
||||||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
|||||||||||
($ in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Net premiums |
$ |
521 |
|
|
$ |
447 |
|
|
$ |
1,514 |
|
$ |
1,314 |
|
Pre-tax income (loss) |
|
(17 |
) |
|
|
(60 |
) |
|
|
12 |
|
|
(29 |
) |
Pre-tax adjusted operating income (loss) |
|
(18 |
) |
|
|
(59 |
) |
|
|
19 |
|
|
(28 |
) |
Pre-tax adjusted operating income (loss), excluding notable items |
|
22 |
|
|
|
(12 |
) |
|
|
59 |
|
|
19 |
|
Net Premiums
-
Foreign currency exchange rates had a favorable effect on net premiums of
for the quarter.$12 million
Quarterly 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 favorable claims experience, primarily in the
United Kingdom and Continental Europe. -
Foreign currency exchange rates had an adverse effect of
on pre-tax income and pre-tax adjusted operating income.$1 million
Financial Solutions |
|||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Pre-tax income |
$ |
84 |
|
$ |
84 |
|
$ |
220 |
|
$ |
195 |
Pre-tax adjusted operating income |
|
86 |
|
|
108 |
|
|
249 |
|
|
243 |
Pre-tax adjusted operating income, excluding notable items |
|
88 |
|
|
74 |
|
|
251 |
|
|
209 |
Quarterly 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.
-
Foreign currency exchange rates had a favorable effect of
on pre-tax income and pre-tax adjusted operating income.$2 million
Traditional |
|||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||
($ in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net premiums |
$ |
756 |
|
$ |
737 |
|
$ |
2,180 |
|
$ |
2,076 |
Pre-tax income |
|
11 |
|
|
134 |
|
|
220 |
|
|
302 |
Pre-tax adjusted operating income |
|
11 |
|
|
134 |
|
|
219 |
|
|
302 |
Pre-tax adjusted operating income, excluding notable items |
|
106 |
|
|
132 |
|
|
314 |
|
|
300 |
Net Premiums
-
Foreign currency exchange rates had an adverse effect on net premiums of
for the quarter.$4 million
Quarterly 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 favorable overall experience.
-
Foreign currency exchange rates had a favorable effect of
on pre-tax income and$5 million on pre-tax adjusted operating income.$4 million
Financial Solutions |
|||||||||||||
|
Quarterly Results |
|
Year-to-Date Results |
||||||||||
($ in millions) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Net premiums |
$ |
62 |
|
$ |
63 |
|
|
$ |
158 |
|
$ |
171 |
|
Pre-tax income (loss) |
|
93 |
|
|
(16 |
) |
|
|
48 |
|
|
(9 |
) |
Pre-tax adjusted operating income |
|
60 |
|
|
44 |
|
|
|
190 |
|
|
146 |
|
Pre-tax adjusted operating income, excluding notable items |
|
69 |
|
|
44 |
|
|
|
199 |
|
|
146 |
|
Quarterly 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.
-
Foreign currency exchange rates had an adverse effect of
on pre-tax income and$5 million on pre-tax adjusted operating income.$2 million
Corporate and Other
|
Quarterly Results |
|
Year-to-Date Results |
||||
($ in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
Pre-tax income (loss) |
|
|
|
|
|
|
|
Pre-tax adjusted operating income (loss) |
(18) |
|
(25) |
|
(100) |
|
(105) |
Pre-tax adjusted operating income (loss), excluding notable items |
(18) |
|
(25) |
|
(100) |
|
(105) |
Quarterly Results
- Results were favorable compared to the expected quarterly average run rate, primarily due to higher investment income.
Dividend Declaration
Effective October 29, 2024, the board of directors declared a regular quarterly dividend of
Earnings Conference Call
A conference call to discuss third quarter results will begin at 10 a.m. Eastern Time on Friday, November 1, 2024. 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. |
2. |
Adjusted operating income (on a pre-tax and after-tax basis), excluding notable items.
|
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.
Other Definitions:
Value of In-force Business Margins:
Operating measure reflecting expected underwriting margins, expected investment margins, and expected fee income; excludes management expenses, impact of capital, and taxes
-
Expected underwriting margin1 is derived from the estimated cash flows used to determine LDTI reserves, which are reviewed as part of the annual audit
- Calculated using the locked-in LDTI liability discount rates
-
Expected investment margin:
- LDTI products: values derived from the difference between using the expected book yields2 and locked-in LDTI liability discount rates
- Interest-sensitive products: values calculated using expected investment spread2 and expected duration of treaty
- Expected fee income, primarily from capital solutions products, is calculated as the present value of expected fees
- Value is 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.
- 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)
- 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 September 30, |
||||||||||||||
|
2024 |
|
2023 |
||||||||||||
|
|
|
Diluted
|
|
|
|
Diluted
|
||||||||
Net income available to RGA shareholders |
$ |
156 |
|
|
$ |
2.33 |
|
|
$ |
287 |
|
|
$ |
4.29 |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
(18 |
) |
|
|
(0.26 |
) |
|
|
104 |
|
|
|
1.56 |
|
Market risk benefits remeasurement (gains) losses |
|
25 |
|
|
|
0.37 |
|
|
|
(17 |
) |
|
|
(0.25 |
) |
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(0.06 |
) |
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
|
88 |
|
|
|
1.32 |
|
|
|
(1 |
) |
|
|
(0.01 |
) |
Included in interest credited |
|
8 |
|
|
|
0.12 |
|
|
|
(6 |
) |
|
|
(0.09 |
) |
Investment (income) loss on unit-linked variable annuities |
|
(1 |
) |
|
|
(0.01 |
) |
|
|
1 |
|
|
|
0.01 |
|
Interest credited on unit-linked variable annuities |
|
1 |
|
|
|
0.01 |
|
|
|
(1 |
) |
|
|
(0.01 |
) |
Interest expense on uncertain tax positions |
|
1 |
|
|
|
0.01 |
|
|
|
1 |
|
|
|
0.01 |
|
Other (1) |
|
(25 |
) |
|
|
(0.37 |
) |
|
|
— |
|
|
|
— |
|
Uncertain tax positions and other tax related items |
|
5 |
|
|
|
0.07 |
|
|
|
6 |
|
|
|
0.09 |
|
Net income attributable to noncontrolling interest |
|
2 |
|
|
|
0.03 |
|
|
|
2 |
|
|
|
0.03 |
|
Adjusted operating income |
|
242 |
|
|
|
3.62 |
|
|
|
372 |
|
|
|
5.57 |
|
Notable items |
|
168 |
|
|
|
2.51 |
|
|
|
— |
|
|
|
— |
|
Adjusted operating income, excluding notable items |
$ |
410 |
|
|
$ |
6.13 |
|
|
$ |
372 |
|
|
$ |
5.57 |
|
(Unaudited) |
Nine Months Ended September 30, |
||||||||||||||
|
2024 |
|
2023 |
||||||||||||
|
|
|
Diluted
|
|
|
|
Diluted
|
||||||||
Net income available to RGA shareholders |
$ |
569 |
|
|
$ |
8.53 |
|
|
$ |
744 |
|
|
$ |
11.06 |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
406 |
|
|
|
6.09 |
|
|
|
294 |
|
|
|
4.39 |
|
Market risk benefits remeasurement (gains) losses |
|
(9 |
) |
|
|
(0.13 |
) |
|
|
(30 |
) |
|
|
(0.45 |
) |
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
(2 |
) |
|
|
(0.03 |
) |
|
|
(2 |
) |
|
|
(0.03 |
) |
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
|
7 |
|
|
|
0.10 |
|
|
|
(14 |
) |
|
|
(0.21 |
) |
Included in interest credited |
|
14 |
|
|
|
0.21 |
|
|
|
(9 |
) |
|
|
(0.13 |
) |
Investment (income) loss on unit-linked variable annuities |
|
1 |
|
|
|
0.01 |
|
|
|
3 |
|
|
|
0.04 |
|
Interest credited on unit-linked variable annuities |
|
(1 |
) |
|
|
(0.01 |
) |
|
|
(3 |
) |
|
|
(0.04 |
) |
Interest expense on uncertain tax positions |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
0.01 |
|
Other (1) |
|
29 |
|
|
|
0.43 |
|
|
|
6 |
|
|
|
0.09 |
|
Uncertain tax positions and other tax related items |
|
(11 |
) |
|
|
(0.16 |
) |
|
|
23 |
|
|
|
0.34 |
|
Net income attributable to noncontrolling interest |
|
5 |
|
|
|
0.07 |
|
|
|
5 |
|
|
|
0.07 |
|
Adjusted operating income |
|
1,008 |
|
|
|
15.11 |
|
|
|
1,018 |
|
|
|
15.14 |
|
Notable items |
|
168 |
|
|
|
2.52 |
|
|
|
— |
|
|
|
— |
|
Adjusted operating income, excluding notable items |
$ |
1,176 |
|
|
$ |
17.63 |
|
|
$ |
1,018 |
|
|
$ |
15.14 |
|
(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
|
|
Nine Months Ended
|
||||||||||||||||||
|
Pre-tax
|
|
Income
|
|
Effective
|
|
Pre-tax
|
|
Income
|
|
Effective
|
||||||||||
GAAP income |
$ |
214 |
|
|
$ |
56 |
|
|
26.7 |
% |
|
$ |
755 |
|
|
$ |
181 |
|
|
24.1 |
% |
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized and unrealized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
(23 |
) |
|
|
(5 |
) |
|
|
|
|
517 |
|
|
|
111 |
|
|
|
||
Market risk benefits remeasurement (gains) losses |
|
31 |
|
|
|
6 |
|
|
|
|
|
(12 |
) |
|
|
(3 |
) |
|
|
||
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
||
Embedded derivatives: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in investment related gains/losses, net |
|
112 |
|
|
|
24 |
|
|
|
|
|
9 |
|
|
|
2 |
|
|
|
||
Included in interest credited |
|
11 |
|
|
|
3 |
|
|
|
|
|
18 |
|
|
|
4 |
|
|
|
||
Investment (income) loss on unit-linked variable annuities |
|
(1 |
) |
|
|
— |
|
|
|
|
|
1 |
|
|
|
— |
|
|
|
||
Interest credited on unit-linked variable annuities |
|
1 |
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
— |
|
|
|
||
Interest expense on uncertain tax positions |
|
1 |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
||
Other (2) |
|
(31 |
) |
|
|
(6 |
) |
|
|
|
|
37 |
|
|
|
8 |
|
|
|
||
Uncertain tax positions and other tax related items |
|
— |
|
|
|
(5 |
) |
|
|
|
|
— |
|
|
|
11 |
|
|
|
||
Adjusted operating income |
|
314 |
|
|
|
72 |
|
|
23.0 |
% |
|
|
1,321 |
|
|
|
313 |
|
|
23.7 |
% |
Notable items |
|
194 |
|
|
|
26 |
|
|
|
|
|
194 |
|
|
|
26 |
|
|
|
||
Adjusted operating income, excluding notable items |
$ |
508 |
|
|
$ |
98 |
|
|
|
|
$ |
1,515 |
|
|
$ |
339 |
|
|
|
(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
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Income before income taxes |
$ |
214 |
|
|
$ |
380 |
|
Reconciliation to pre-tax adjusted operating income: |
|
|
|
||||
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
(23 |
) |
|
|
134 |
|
Market risk benefits remeasurement (gains) losses |
|
31 |
|
|
|
(21 |
) |
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
(1 |
) |
|
|
(4 |
) |
Embedded derivatives: |
|
|
|
||||
Included in investment related gains/losses, net |
|
112 |
|
|
|
(1 |
) |
Included in interest credited |
|
11 |
|
|
|
(7 |
) |
Investment (income) loss on unit-linked variable annuities |
|
(1 |
) |
|
|
2 |
|
Interest credited on unit-linked variable annuities |
|
1 |
|
|
|
(2 |
) |
Interest expense on uncertain tax positions |
|
1 |
|
|
|
1 |
|
Other (1) |
|
(31 |
) |
|
|
(1 |
) |
Pre-tax adjusted operating income |
|
314 |
|
|
|
481 |
|
Notable items |
|
194 |
|
|
|
(3 |
) |
Pre-tax adjusted operating income, excluding notable items |
$ |
508 |
|
|
$ |
478 |
|
(Unaudited) |
Nine Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Income before income taxes |
$ |
755 |
|
|
$ |
996 |
|
Reconciliation to pre-tax adjusted operating income: |
|
|
|
||||
Realized (gains) losses, derivatives and other, included in investment related gains (losses), net |
|
517 |
|
|
|
378 |
|
Market risk benefits remeasurement (gains) losses |
|
(12 |
) |
|
|
(38 |
) |
Realized (gains) losses on funds withheld, included in investment income, net of related expenses |
|
(3 |
) |
|
|
(2 |
) |
Embedded derivatives: |
|
|
|
||||
Included in investment related gains/losses, net |
|
9 |
|
|
|
(18 |
) |
Included in interest credited |
|
18 |
|
|
|
(11 |
) |
Investment (income) loss on unit-linked variable annuities |
|
1 |
|
|
|
4 |
|
Interest credited on unit-linked variable annuities |
|
(1 |
) |
|
|
(4 |
) |
Interest expense on uncertain tax positions |
|
— |
|
|
|
1 |
|
Other (1) |
|
37 |
|
|
|
7 |
|
Pre-tax adjusted operating income |
|
1,321 |
|
|
|
1,313 |
|
Notable items |
|
194 |
|
|
|
(3 |
) |
Pre-tax adjusted operating income, excluding notable items |
$ |
1,515 |
|
|
$ |
1,310 |
|
(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 Pre-tax Income to Pre-tax Adjusted Operating Income |
||||||||||||||||||||||
(Dollars in millions) |
||||||||||||||||||||||
|
||||||||||||||||||||||
(Unaudited) |
Three Months Ended September 30, 2024 |
|||||||||||||||||||||
|
Pre-tax income (loss) |
|
Realized (gains) losses, derivatives and other, net |
|
Change in value of embedded derivatives, net |
|
Pre-tax adjusted operating income (loss) |
|
Notable Items |
|
Pre-tax adjusted operating income (loss) ex. notable items |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Traditional |
$ |
57 |
|
|
$ |
1 |
|
|
$ |
21 |
|
$ |
79 |
|
|
$ |
53 |
|
|
$ |
132 |
|
Financial Solutions |
|
(46 |
) |
|
|
24 |
|
|
|
102 |
|
|
80 |
|
|
|
— |
|
|
|
80 |
|
Total |
|
11 |
|
|
|
25 |
|
|
|
123 |
|
|
159 |
|
|
|
53 |
|
|
|
212 |
|
Canada Traditional |
|
29 |
|
|
|
1 |
|
|
|
— |
|
|
30 |
|
|
|
(5 |
) |
|
|
25 |
|
Canada Financial Solutions |
|
21 |
|
|
|
(17 |
) |
|
|
— |
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
Total |
|
50 |
|
|
|
(16 |
) |
|
|
— |
|
|
34 |
|
|
|
(5 |
) |
|
|
29 |
|
EMEA Traditional |
|
(17 |
) |
|
|
(1 |
) |
|
|
— |
|
|
(18 |
) |
|
|
40 |
|
|
|
22 |
|
EMEA Financial Solutions |
|
84 |
|
|
|
2 |
|
|
|
— |
|
|
86 |
|
|
|
2 |
|
|
|
88 |
|
Total EMEA |
|
67 |
|
|
|
1 |
|
|
|
— |
|
|
68 |
|
|
|
42 |
|
|
|
110 |
|
APAC Traditional |
|
11 |
|
|
|
— |
|
|
|
— |
|
|
11 |
|
|
|
95 |
|
|
|
106 |
|
APAC Financial Solutions |
|
93 |
|
|
|
(33 |
) |
|
|
— |
|
|
60 |
|
|
|
9 |
|
|
|
69 |
|
Total |
|
104 |
|
|
|
(33 |
) |
|
|
— |
|
|
71 |
|
|
|
104 |
|
|
|
175 |
|
Corporate and Other |
|
(18 |
) |
|
|
— |
|
|
|
— |
|
|
(18 |
) |
|
|
— |
|
|
|
(18 |
) |
Consolidated |
$ |
214 |
|
|
$ |
(23 |
) |
|
$ |
123 |
|
$ |
314 |
|
|
$ |
194 |
|
|
$ |
508 |
|
(Unaudited) |
Three Months Ended September 30, 2023 |
||||||||||||||||||||||
|
Pre-tax income (loss) |
|
Realized (gains) losses, derivatives and other, net |
|
Change in value of embedded derivatives, net |
|
Pre-tax adjusted operating income (loss) |
|
Notable Items |
|
Pre-tax adjusted operating income (loss) ex. notable items |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Traditional |
$ |
105 |
|
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
103 |
|
|
$ |
17 |
|
|
$ |
120 |
|
Financial Solutions |
|
108 |
|
|
|
34 |
|
|
|
(6 |
) |
|
|
136 |
|
|
|
(22 |
) |
|
|
114 |
|
Total |
|
213 |
|
|
|
34 |
|
|
|
(8 |
) |
|
|
239 |
|
|
|
(5 |
) |
|
|
234 |
|
Canada Traditional |
|
6 |
|
|
|
4 |
|
|
|
— |
|
|
|
10 |
|
|
|
13 |
|
|
|
23 |
|
Canada Financial Solutions |
|
30 |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
(22 |
) |
|
|
8 |
|
Total |
|
36 |
|
|
|
4 |
|
|
|
— |
|
|
|
40 |
|
|
|
(9 |
) |
|
|
31 |
|
EMEA Traditional |
|
(60 |
) |
|
|
1 |
|
|
|
— |
|
|
|
(59 |
) |
|
|
47 |
|
|
|
(12 |
) |
EMEA Financial Solutions |
|
84 |
|
|
|
24 |
|
|
|
— |
|
|
|
108 |
|
|
|
(34 |
) |
|
|
74 |
|
Total EMEA |
|
24 |
|
|
|
25 |
|
|
|
— |
|
|
|
49 |
|
|
|
13 |
|
|
|
62 |
|
APAC Traditional |
|
134 |
|
|
|
— |
|
|
|
— |
|
|
|
134 |
|
|
|
(2 |
) |
|
|
132 |
|
APAC Financial Solutions |
|
(16 |
) |
|
|
60 |
|
|
|
— |
|
|
|
44 |
|
|
|
— |
|
|
|
44 |
|
Total |
|
118 |
|
|
|
60 |
|
|
|
— |
|
|
|
178 |
|
|
|
(2 |
) |
|
|
176 |
|
Corporate and Other |
|
(11 |
) |
|
|
(14 |
) |
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
|
|
(25 |
) |
Consolidated |
$ |
380 |
|
|
$ |
109 |
|
|
$ |
(8 |
) |
|
$ |
481 |
|
|
$ |
(3 |
) |
|
$ |
478 |
|
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES |
||||||||||||||||||||||
Reconciliation of Pre-tax Income to Pre-tax Adjusted Operating Income |
||||||||||||||||||||||
(Dollars in millions) |
||||||||||||||||||||||
|
||||||||||||||||||||||
(Unaudited) |
Nine Months Ended September 30, 2024 |
|||||||||||||||||||||
|
Pre-tax income (loss) |
|
Realized (gains) losses, derivatives and other, net |
|
Change in value of embedded derivatives, net |
|
Pre-tax adjusted operating income (loss) |
|
Notable Items |
|
Pre-tax adjusted operating income (loss) ex. notable items |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Traditional |
$ |
347 |
|
|
$ |
— |
|
|
$ |
27 |
|
$ |
374 |
|
|
$ |
53 |
|
|
$ |
427 |
|
Financial Solutions |
|
54 |
|
|
|
196 |
|
|
|
— |
|
|
250 |
|
|
|
— |
|
|
|
250 |
|
Total |
|
401 |
|
|
|
196 |
|
|
|
27 |
|
|
624 |
|
|
|
53 |
|
|
|
677 |
|
Canada Traditional |
|
103 |
|
|
|
(1 |
) |
|
|
— |
|
|
102 |
|
|
|
(5 |
) |
|
|
97 |
|
Canada Financial Solutions |
|
34 |
|
|
|
(16 |
) |
|
|
— |
|
|
18 |
|
|
|
— |
|
|
|
18 |
|
Total |
|
137 |
|
|
|
(17 |
) |
|
|
— |
|
|
120 |
|
|
|
(5 |
) |
|
|
115 |
|
EMEA Traditional |
|
12 |
|
|
|
7 |
|
|
|
— |
|
|
19 |
|
|
|
40 |
|
|
|
59 |
|
EMEA Financial Solutions |
|
220 |
|
|
|
29 |
|
|
|
— |
|
|
249 |
|
|
|
2 |
|
|
|
251 |
|
Total EMEA |
|
232 |
|
|
|
36 |
|
|
|
— |
|
|
268 |
|
|
|
42 |
|
|
|
310 |
|
APAC Traditional |
|
220 |
|
|
|
(1 |
) |
|
|
— |
|
|
219 |
|
|
|
95 |
|
|
|
314 |
|
APAC Financial Solutions |
|
48 |
|
|
|
142 |
|
|
|
— |
|
|
190 |
|
|
|
9 |
|
|
|
199 |
|
Total |
|
268 |
|
|
|
141 |
|
|
|
— |
|
|
409 |
|
|
|
104 |
|
|
|
513 |
|
Corporate and Other |
|
(283 |
) |
|
|
183 |
|
|
|
— |
|
|
(100 |
) |
|
|
— |
|
|
|
(100 |
) |
Consolidated |
$ |
755 |
|
|
$ |
539 |
|
|
$ |
27 |
|
$ |
1,321 |
|
|
$ |
194 |
|
|
$ |
1,515 |
|
(Unaudited) |
Nine Months Ended September 30, 2023 |
|||||||||||||||||||||
|
Pre-tax income (loss) |
|
Realized (gains) losses, derivatives and other, net |
|
Change in value of embedded derivatives, net |
|
Pre-tax adjusted operating income (loss) |
|
Notable Items |
|
Pre-tax adjusted operating income (loss) ex. notable items |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Traditional |
$ |
288 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
288 |
|
|
$ |
17 |
|
|
$ |
305 |
|
Financial Solutions |
|
290 |
|
|
|
89 |
|
|
(29 |
) |
|
|
350 |
|
|
|
(22 |
) |
|
|
328 |
|
Total |
|
578 |
|
|
|
89 |
|
|
(29 |
) |
|
|
638 |
|
|
|
(5 |
) |
|
|
633 |
|
Canada Traditional |
|
70 |
|
|
|
1 |
|
|
— |
|
|
|
71 |
|
|
|
13 |
|
|
|
84 |
|
Canada Financial Solutions |
|
46 |
|
|
|
— |
|
|
— |
|
|
|
46 |
|
|
|
(22 |
) |
|
|
24 |
|
Total |
|
116 |
|
|
|
1 |
|
|
— |
|
|
|
117 |
|
|
|
(9 |
) |
|
|
108 |
|
EMEA Traditional |
|
(29 |
) |
|
|
1 |
|
|
— |
|
|
|
(28 |
) |
|
|
47 |
|
|
|
19 |
|
EMEA Financial Solutions |
|
195 |
|
|
|
48 |
|
|
— |
|
|
|
243 |
|
|
|
(34 |
) |
|
|
209 |
|
Total EMEA |
|
166 |
|
|
|
49 |
|
|
— |
|
|
|
215 |
|
|
|
13 |
|
|
|
228 |
|
APAC Traditional |
|
302 |
|
|
|
— |
|
|
— |
|
|
|
302 |
|
|
|
(2 |
) |
|
|
300 |
|
APAC Financial Solutions |
|
(9 |
) |
|
|
155 |
|
|
— |
|
|
|
146 |
|
|
|
— |
|
|
|
146 |
|
Total |
|
293 |
|
|
|
155 |
|
|
— |
|
|
|
448 |
|
|
|
(2 |
) |
|
|
446 |
|
Corporate and Other |
|
(157 |
) |
|
|
52 |
|
|
— |
|
|
|
(105 |
) |
|
|
— |
|
|
|
(105 |
) |
Consolidated |
$ |
996 |
|
|
$ |
346 |
|
$ |
(29 |
) |
|
$ |
1,313 |
|
|
$ |
(3 |
) |
|
$ |
1,310 |
|
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES |
|||||||||||
Per Share and Shares Data |
|||||||||||
(In thousands, except per share data) |
|||||||||||
|
|||||||||||
(Unaudited) |
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Earnings per share from net income (loss): |
|
|
|
|
|
|
|
||||
Basic earnings per share |
$ |
2.37 |
|
$ |
4.34 |
|
$ |
8.64 |
|
$ |
11.19 |
Diluted earnings per share |
$ |
2.33 |
|
$ |
4.29 |
|
$ |
8.53 |
|
$ |
11.06 |
|
|
|
|
|
|
|
|
||||
Diluted earnings per share from adjusted operating income |
$ |
3.62 |
|
$ |
5.57 |
|
$ |
15.11 |
|
$ |
15.14 |
Weighted average number of common and common equivalent shares outstanding |
|
66,797 |
|
|
66,914 |
|
|
66,694 |
|
|
67,252 |
(Unaudited) |
At September 30, |
||||
|
|
2024 |
|
|
2023 |
Treasury shares |
|
19,447 |
|
|
19,439 |
Common shares outstanding |
|
65,864 |
|
|
65,872 |
Book value per share outstanding |
$ |
168.93 |
|
$ |
122.40 |
Book value per share outstanding, before impact of AOCI |
$ |
149.63 |
|
$ |
142.63 |
Reconciliation of Book Value Per Share to Book Value Per Share Excluding AOCI and B36 Derivatives |
|||||||
|
|||||||
(Unaudited) |
At September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Book value per share outstanding |
$ |
168.93 |
|
|
$ |
122.40 |
|
Less effect of AOCI: |
|
|
|
||||
Accumulated currency translation adjustment |
|
1.64 |
|
|
|
(0.49 |
) |
Unrealized (depreciation) appreciation of securities |
|
(42.52 |
) |
|
|
(101.10 |
) |
Effect of updating discount rates on future policy benefits |
|
60.54 |
|
|
|
81.46 |
|
Change in instrument-specific credit risk for market risk benefits |
|
0.09 |
|
|
|
0.11 |
|
Pension and postretirement benefits |
|
(0.45 |
) |
|
|
(0.21 |
) |
Book value per share outstanding, before impact of AOCI |
|
149.63 |
|
|
|
142.63 |
|
Less effect of B36 derivatives |
|
(2.16 |
) |
|
|
0.12 |
|
Book value per share outstanding, before impact of AOCI and B36 derivatives |
$ |
151.79 |
|
|
$ |
142.51 |
|
Reconciliation of Shareholders' Average Equity to Shareholders' Average Equity Excluding AOCI |
|||
(Dollars in millions) |
|||
(Unaudited) |
|
||
Trailing Twelve Months Ended September 30, 2024: |
Average Equity |
||
Shareholders' average equity |
$ |
9,495 |
|
Less effect of AOCI: |
|
||
Accumulated currency translation adjustment |
|
57 |
|
Unrealized (depreciation) appreciation of securities |
|
(4,376 |
) |
Effect of updating discount rates on future policy benefits |
|
4,225 |
|
Change in instrument-specific credit risk for market risk benefits |
|
5 |
|
Pension and postretirement benefits |
|
(26 |
) |
Shareholders' average equity, excluding AOCI |
|
9,610 |
|
Year-to-date notable items, net of tax |
|
33 |
|
Shareholders' average equity, excluding AOCI and notable items |
$ |
9,643 |
|
Reconciliation of Trailing Twelve Months of Consolidated Net Income to Adjusted Operating Income |
||||||
and Related Return on Equity |
||||||
(Dollars in millions) |
||||||
|
||||||
(Unaudited) |
|
|
Return on Equity |
|||
Trailing Twelve Months Ended September 30, 2024: |
Income |
|
||||
Net income available to RGA shareholders |
$ |
727 |
|
|
7.7 |
% |
Reconciliation to adjusted operating income: |
|
|
|
|||
Capital (gains) losses, derivatives and other, net |
|
452 |
|
|
|
|
Change in fair value of embedded derivatives |
|
168 |
|
|
|
|
Tax expense on uncertain tax positions and other tax related items |
|
(30 |
) |
|
|
|
Net income attributable to noncontrolling interest |
|
7 |
|
|
|
|
Adjusted operating income |
|
1,324 |
|
|
13.8 |
% |
Notable items after tax |
|
168 |
|
|
|
|
Adjusted operating income, excluding notable items |
$ |
1,492 |
|
|
15.5 |
% |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES |
|||||||||||||||
Condensed Consolidated Statements of Income |
|||||||||||||||
(Dollars in millions) |
|||||||||||||||
|
|||||||||||||||
(Unaudited) |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Net premiums |
$ |
4,391 |
|
|
$ |
4,255 |
|
|
$ |
13,687 |
|
|
$ |
10,977 |
|
Investment income, net of related expenses |
|
1,188 |
|
|
|
922 |
|
|
|
3,231 |
|
|
|
2,635 |
|
Investment related gains (losses), net |
|
(78 |
) |
|
|
(126 |
) |
|
|
(498 |
) |
|
|
(326 |
) |
Other revenue |
|
150 |
|
|
|
102 |
|
|
|
446 |
|
|
|
274 |
|
Total revenues |
|
5,651 |
|
|
|
5,153 |
|
|
|
16,866 |
|
|
|
13,560 |
|
Benefits and expenses: |
|
|
|
|
|
|
|
||||||||
Claims and other policy benefits |
|
4,116 |
|
|
|
3,959 |
|
|
|
12,960 |
|
|
|
10,035 |
|
Future policy benefits remeasurement (gains) losses |
|
151 |
|
|
|
(82 |
) |
|
|
37 |
|
|
|
(95 |
) |
Market risk benefits remeasurement (gains) losses |
|
31 |
|
|
|
(21 |
) |
|
|
(12 |
) |
|
|
(38 |
) |
Interest credited |
|
310 |
|
|
|
223 |
|
|
|
795 |
|
|
|
647 |
|
Policy acquisition costs and other insurance expenses |
|
452 |
|
|
|
348 |
|
|
|
1,230 |
|
|
|
1,028 |
|
Other operating expenses |
|
299 |
|
|
|
274 |
|
|
|
883 |
|
|
|
799 |
|
Interest expense |
|
78 |
|
|
|
72 |
|
|
|
218 |
|
|
|
188 |
|
Total benefits and expenses |
|
5,437 |
|
|
|
4,773 |
|
|
|
16,111 |
|
|
|
12,564 |
|
Income before income taxes |
|
214 |
|
|
|
380 |
|
|
|
755 |
|
|
|
996 |
|
Provision for income taxes |
|
56 |
|
|
|
91 |
|
|
|
181 |
|
|
|
247 |
|
Net income |
|
158 |
|
|
|
289 |
|
|
|
574 |
|
|
|
749 |
|
Net income attributable to noncontrolling interest |
|
2 |
|
|
|
2 |
|
|
|
5 |
|
|
|
5 |
|
Net income available to RGA shareholders |
$ |
156 |
|
|
$ |
287 |
|
|
$ |
569 |
|
|
$ |
744 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030230625/en/
Investor Contact
Jeff Hopson
Senior Vice President - Investor Relations
(636) 736-2068
Source: Reinsurance Group of America, Incorporated
FAQ
What was RGA's earnings per share in Q3 2024?
How much capital did RGA deploy in Q3 2024?
What was RGA's net premium growth in Q3 2024?