- Earnings per diluted share: $1.94 from
operating income* and net income
- Higher tax provision and adverse
foreign currency translation had a negative impact of $0.14 and
$0.08 per diluted share, respectively
- Strong results in EMEA and Asia offset
by weakness in U.S. Traditional and Australia; Global Financial
Solutions (GFS) continues strong performance trend
- Reported net premiums decreased 2
percent; up 8 percent net of foreign currency and the effect of
fourth-quarter 2014 retrocession transaction
- Quarterly shareholder dividend raised
12 percent
- Share repurchase authorization
increased to $450 million
Reinsurance Group of America, Incorporated
(NYSE: RGA), a leading global provider of life reinsurance,
reported operating income* of $130.3 million, or $1.94 per diluted
share, compared with $155.1 million, or $2.23 per diluted
share, in the prior-year quarter. Net income totaled
$130.4 million, or $1.94 per diluted share, compared with
$198.3 million, or $2.84 per diluted share, the year before. In
addition to the higher effective tax rate and foreign currency
effects noted above, the current period reflects higher claims in
the U.S. and Australia, partially offset by better-than-expected
overall results in EMEA and Asia; the year-ago period benefited
from the positive effect of a treaty reinstatement and conversion
in Asia, which contributed $0.11 per share.
Quarterly Results
Year-to-Date Results ($ in thousands, except per share
data) 2015 2014 2015
2014 Net premiums $2,129,043 $2,183,160 $4,152,895
$4,283,797 Net income 130,391 198,296 255,505 334,960 Net income
per diluted share 1.94 2.84 3.76 4.75 Operating income* 130,270
155,131 252,048 269,938 Operating income per diluted share* 1.94
2.23 3.70 3.83 Book value per share 97.61 97.21
Book value per share (excl. Accumulated
Other Comprehensive Income “AOCI”)*
80.30
73.54
Total assets 47,460,271 43,171,051
* See ‘Use of Non-GAAP Financial Measures’
below
Consolidated net premiums totaled $2.1 billion
this quarter, down 2 percent from last year’s second quarter.
Current-period premiums reflect a $114 million reduction associated
with the previously announced fourth-quarter 2014 U.S. retrocession
agreement, along with adverse foreign currency effects of
approximately $122 million. Excluding those effects, premiums
increased 8 percent versus the prior-year quarter. Investment
income increased 10 percent to $450.5 million this period,
primarily due to a larger average invested asset base. Excluding
spread-based businesses and the value of associated derivatives,
investment income increased 7 percent over year-ago levels.
The average investment yield was 4.88 percent, nine basis points
over the second quarter of 2014, and 10 basis points higher than
the first-quarter yield.
The effective tax rate on operating income was
38.9 percent this quarter, well above management’s expected range
of 33 percent to 34 percent, and the comparable prior-year rate of
34.6 percent. Although an extension is expected later this year,
Congress has not extended the Active Financing Exception (AFE)
legislation, and as a result, the company increased its tax
provision nearly $10 million in the second quarter, an adverse
effect of $0.14 per diluted share. This amount would be reversed
upon extension of the AFE.
Greig Woodring, president and chief executive
officer, commented, “Operating income was $130.3 million, or
$1.94 per diluted share in the second quarter, compared to $155.1
million a year ago or $2.23 per share. The results this quarter
were negatively affected by the higher tax rate and foreign
currency weakness. Otherwise, the results generally reflect a
continuation of recent trends of balance and diversity of earnings
by geography and product line, but with some volatility in segment
and business line results consistent with the nature of our
business. Most of our international operations continued a pattern
of very good results, with the EMEA segment particularly strong,
but Australia had a weak quarter, a reversal of some of the
experience in the first quarter. The operating income of the
Australia operation is essentially in line with expectations on a
year-to-date basis. Our Global Financial Solutions business was
again a highlight, with the U.S. Asset-Intensive business
generating very favorable results. The U.S. Traditional business
was weaker than expected, as the elevated mortality claims
experienced in the first quarter extended into April before showing
some seasonal recovery as the quarter progressed. On a positive
note, the Canadian business saw slightly favorable mortality
experience, after a string of unfavorable quarters. Therefore,
while we continue to see some variability in our businesses from
quarter to quarter and line to line, we are pleased that our global
operating model has helped us produce favorable financial results
over time.
“We continue to pursue a capital management
strategy that entails deploying excess capital into attractive
block acquisitions, share repurchases and shareholder dividends.
After aggressively repurchasing shares in the first quarter of this
year, we slowed this activity in the second quarter as we continued
to pursue a range of potential block acquisition opportunities.
Going forward, we expect to remain active but disciplined as we
consider a range of options in terms of capital usage. We announced
a dividend increase of 12 percent, and our board also increased the
existing share repurchase authorization from $300 million to $450
million, making the current capacity under that authorization
nearly $200 million. Our deployable, excess capital position
exceeds $750 million. Ending book value per share this quarter was
$97.61 including AOCI, and $80.30 excluding AOCI, an 11 percent
increase over that of a year ago, when adding back dividends paid
over that period.”
SEGMENT RESULTS
U.S. and Latin America
Traditional
The U.S. and Latin America Traditional segment
reported pre-tax operating income of $79.4 million, compared
with $89.0 million in the second quarter of 2014. The
current-period results were lower than expected due primarily to
elevated individual mortality claims, particularly older-age
policies, and to a lesser extent, adverse group results.
Traditional net premiums decreased 2 percent from last year’s
second quarter to $1,170.9 million, including the retrocession
agreement effective in last year’s fourth quarter, and increased 8
percent excluding that agreement. Pre-tax net income totaled
$82.8 million for the quarter, compared with
$94.0 million in last year’s second quarter.
Non-Traditional
The Asset-Intensive business reported pre-tax
operating income of $56.4 million compared with
$44.0 million last year. Results were strong in both periods
with the current quarter benefiting primarily from favorable net
interest rate spread performance on fixed annuities, as well as the
addition of earnings from the Aurora National acquisition. Pre-tax
net income decreased to $55.8 million from $81.8 million
a year ago, attributable to changes in the fair value of various
embedded derivatives.
The Financial Reinsurance business continued to
perform well, increasing pre-tax operating income 8 percent to
$14.6 million in the second quarter. Pre-tax net income also
totaled $14.6 million in the current period compared with $13.7
million in the prior-year quarter.
Canada
Traditional
The Canada Traditional business reported
pre-tax operating income of $23.8 million this quarter, down
from $27.7 million the year before. Individual mortality
claims experience improved relative to that of recent quarters and
was slightly favorable this period, but that experience was mostly
offset by weaker results in other products and a weaker Canadian
dollar. Reported net premiums decreased 9 percent to $225.0
million, primarily due to the weaker currency. Pre-tax net income
totaled $22.7 million compared with $32.0 million in the
second quarter of 2014.
Non-Traditional
The Canada Non-Traditional business segment,
which consists of longevity and fee-based transactions, posted
pre-tax operating income and pre-tax net income of $3.1 million
this quarter compared with $3.0 million in the prior-year
quarter.
In total, a relatively weaker Canadian dollar
lowered net premiums and pre-tax operating income by approximately
$30.1 million and $3.5 million, respectively, during the quarter.
In Canadian dollars, premiums increased 4 percent over the second
quarter of 2014.
Europe, Middle East and Africa
(EMEA)
Traditional
The EMEA Traditional segment reported pre-tax
operating income of $9.2 million compared with $23.1 million in
last year’s second quarter, a difficult comparison given the very
favorable mortality and morbidity results in last year’s quarter.
Current-period claims experience was at expected levels. Net
reported premiums decreased 4 percent and totaled $275.7 million,
compared with $286.4 million in the prior-year quarter. Net
foreign currency fluctuations adversely affected pre-tax operating
income and premiums again this quarter. Pre-tax net income totaled
$9.2 million versus $26.8 million in the year-ago quarter.
Non-Traditional
The EMEA Non-Traditional segment includes
asset-intensive, longevity and fee-based transactions. Pre-tax
operating income increased sharply to $31.8 million from $21.6
million a year ago, primarily due to the execution of two longevity
transactions this quarter and favorable experience on existing
longevity business. Pre-tax net income totaled $31.4 million this
quarter, compared with $34.5 million in last year’s second
quarter.
In total, adverse foreign currency fluctuations
reduced net premiums and pre-tax operating income by $40.2 million
and $5.0 million, respectively. EMEA premiums based in local
currencies increased 7 percent over the second quarter of
2014.
Asia Pacific
Traditional
Asia Pacific’s Traditional business reported
pre-tax operating income of $4.3 million, down from $26.3
million in the prior-year quarter. The Australia operation posted
poor results in its individual and group morbidity product lines,
contributing to a pre-tax operating loss of approximately
$20 million in that market. That performance follows an
unusually strong first quarter result. For the first six months,
results in Australia were still profitable, in line with expected
levels. Outside of Australia, Traditional businesses performed very
well, with particularly strong results from our operations in Hong
Kong & Southeast Asia, Japan and South Korea.
Traditional net premiums were even with the
prior-year period at $390.5 million, including significant
adverse foreign currency fluctuations compared with the prior year.
Pre-tax net income totaled $4.3 million compared with
$28.2 million in last year’s second quarter.
Non-Traditional
Asia Pacific’s Non-Traditional business
includes asset-intensive, fee-based and various other transactions.
Pre-tax operating income in this segment decreased to $0.7 million
from $3.1 million last year due to lower volume and less
favorable experience on certain treaties. Pre-tax net losses were
$1.4 million this quarter versus pre-tax net income of $6.7 million
in the year-ago period.
In total, Asia Pacific premiums included an
adverse foreign currency effect of $51.0 million compared to the
prior-year quarter. Local currency premiums increased 12 percent
over the prior-year quarter. Pre-tax operating income benefited by
$0.9 million from currency fluctuations, reflecting favorable
effects on the losses incurred in Australia.
Corporate and Other
The Corporate and Other segment reported
pre-tax operating losses of $9.9 million this period and $14.1
million in the second quarter of 2014. Current-quarter results were
in line with expectations. Pre-tax net losses were $8.7 million
this quarter and $20.2 million a year ago.
Dividend Declaration
The board of directors increased the quarterly
dividend 12 percent, to $0.37 from $0.33, payable August 26 to
shareholders of record as of August 5.
Earnings Conference Call
A conference call to discuss second-quarter
results will begin at 9 a.m. Eastern Time on Friday, July 24.
Interested parties may access the call by dialing 1-877-741-4240
(domestic) or 719-325-4784 (international). The access code is
5926650. A live audio webcast of the conference call will be
available on the company’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. A
telephonic replay also will be available through August 1 at
888-203-1112 (domestic) or 719-457-0820 (international), access
code 5926650.
The company has posted to its website a
Quarterly Financial Supplement that includes financial information
for all segments as well as information on its investment
portfolio. Additionally, the company posts periodic reports, press
releases and other useful information on its investor relations
website.
Use of Non-GAAP Financial Measures
RGA uses a non-GAAP financial measure called
operating income as a basis for analyzing financial results. This
measure also serves as a basis for establishing target levels and
awards under RGA’s management incentive programs. Management
believes that operating income, on a pre-tax and after-tax basis,
better measures the ongoing profitability and underlying trends of
the company’s continuing operations, primarily because that measure
excludes substantially all of the effect of net investment related
gains and losses, as well as changes in the fair value of certain
embedded derivatives and related deferred acquisition costs. These
items can be volatile, primarily due to the credit market and
interest rate environment, and are not necessarily indicative of
the performance of the company’s underlying businesses.
Additionally, operating income excludes any net gain or loss from
discontinued operations, the cumulative effect of any accounting
changes, and other items that management believes are not
indicative of the company’s ongoing operations. The definition of
operating income can vary by company and is not considered a
substitute for GAAP net income.
Reconciliations to GAAP net income are provided
in the following tables. Additional financial information can be
found in the Quarterly Financial Supplement on RGA’s Investor
Relations website at www.rgare.com in the “Quarterly Results” tab
and in the “Featured Report” section.
Book value per share before impact of AOCI is a
non-GAAP financial measure that management believes is important in
evaluating the balance sheet in order to ignore the effects of
unrealized amounts primarily associated with mark-to-market
adjustments on investments and foreign currency translation.
Operating income per diluted share is a
non-GAAP financial measure calculated as operating income divided
by weighted average diluted shares outstanding. Operating return on
equity is a non-GAAP financial measure calculated as operating
income divided by average shareholders’ equity excluding AOCI.
About RGA
Reinsurance Group of America, Incorporated is
among the largest global providers of life reinsurance, with
operations in Australia, Barbados, Bermuda, Canada, China, France,
Germany, Hong Kong, India, Ireland, Italy, Japan, Malaysia, Mexico,
the Netherlands, New Zealand, Poland, Singapore, South Africa,
South Korea, Spain, Taiwan, Turkey, the United Arab Emirates, the
United Kingdom and the United States. Worldwide, the company has
approximately $2.9 trillion of life reinsurance in force, and
assets of $47.5 billion.
Cautionary Statement Regarding
Forward-looking Statements
This release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including, among others, statements relating to
projections of the earnings, revenues, income or loss, future
financial performance and growth potential of Reinsurance Group of
America, Incorporated and its subsidiaries (which we refer to in
the following paragraphs as “we,” “us” or “our”). The words
“intend,” “expect,” “project,” “estimate,” “predict,” “anticipate,”
“should,” “believe,” and other similar expressions also are
intended to identify forward-looking statements. Forward-looking
statements are inherently 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.
Numerous important factors could cause actual
results and events to differ materially from those expressed or
implied by forward-looking statements including, without
limitation, (1) adverse capital and credit market conditions and
their impact on the Company’s liquidity, access to capital and cost
of capital, (2) the impairment of other financial institutions and
its effect on the Company’s business, (3) requirements to post
collateral or make payments due to declines in market value of
assets subject to the Company’s collateral arrangements, (4) the
fact that the determination of allowances and impairments taken on
the Company’s investments is highly subjective, (5) adverse changes
in mortality, morbidity, lapsation or claims experience, (6)
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, (7) inadequate risk analysis
and underwriting, (8) general economic conditions or a prolonged
economic downturn affecting the demand for insurance and
reinsurance in the Company’s current and planned markets, (9) the
availability and cost of collateral necessary for regulatory
reserves and capital, (10) market or economic conditions that
adversely affect the value of the Company’s investment securities
or result in the impairment of all or a portion of the value of
certain of the Company’s investment securities, that in turn could
affect regulatory capital, (11) market or economic conditions that
adversely affect the Company’s ability to make timely sales of
investment securities, (12) risks inherent in the Company’s risk
management and investment strategy, including changes in investment
portfolio yields due to interest rate or credit quality changes,
(13) fluctuations in U.S. or foreign currency exchange rates,
interest rates, or securities and real estate markets, (14) adverse
litigation or arbitration results, (15) the adequacy of reserves,
resources and accurate information relating to settlements, awards
and terminated and discontinued lines of business, (16) the
stability of and actions by governments and economies in the
markets in which the Company operates, including ongoing
uncertainties regarding the amount of United States sovereign debt
and the credit ratings thereof, (17) competitive factors and
competitors’ responses to the Company’s initiatives, (18) the
success of the Company’s clients, (19) successful execution of the
Company’s entry into new markets, (20) successful development and
introduction of new products and distribution opportunities, (21)
the Company’s ability to successfully integrate acquired blocks of
business and entities, (22) action by regulators who have authority
over the Company’s reinsurance operations in the jurisdictions in
which it operates, (23) the Company’s dependence on third parties,
including those insurance companies and reinsurers to which the
Company cedes some reinsurance, third-party investment managers and
others, (24) the threat of natural disasters, catastrophes,
terrorist attacks, epidemics or pandemics anywhere in the world
where the Company or its clients do business, (25) interruption or
failure of the Company’s telecommunication, information technology
or other operational systems, or the Company’s failure to maintain
adequate security to protect the confidentiality or privacy of
personal or sensitive data stored on such systems, (26) changes in
laws, regulations, and accounting standards applicable to the
Company, its subsidiaries, or its business, (27) the effect of the
Company’s status as an insurance holding company and regulatory
restrictions on its ability to pay principal of and interest on its
debt obligations, and (28) other risks and uncertainties described
in this document and in the Company’s other filings with the
SEC.
Forward-looking statements should be evaluated
together with the many risks and uncertainties that affect our
business, including those mentioned in this document and described
in the periodic reports we file with the Securities and Exchange
Commission. These forward-looking statements speak only as of the
date on which they are made. We do not undertake any obligations to
update these forward-looking statements, even though our situation
may change in the future. We qualify all of our forward-looking
statements by these cautionary statements. 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 review the risk factors in our Annual Report on
Form 10-K for the year ended December 31, 2014.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Operating Income
(Dollars in thousands)
(Unaudited) Three Months Ended Six
Months Ended June 30, June 30,
2015 2014
2015 2014 GAAP net income $ 130,391 $
198,296 $ 255,505 $ 334,960 Reconciliation to operating income:
Capital (gains) losses, derivatives and other, included in
investment related (gains) losses, net 27,152 (26,820 ) 12,567
(43,827 ) Capital (gains) losses on funds withheld, included in
investment income (1,951 ) (3,870 ) (9,363 ) (4,123 ) Embedded
derivatives: Included in investment related (gains) losses, net
(18,056 ) (47,873 ) (209 ) (82,700 ) Included in interest credited
(6,817 ) 4,495 (114 ) 231 DAC offset, net (770 ) 30,903 (6,589 )
65,397 Non-investment derivatives 321 -
251 - Operating income $ 130,270
$ 155,131 $ 252,048 $ 269,938
Reconciliation of Consolidated Pre-tax Net Income to Pre-tax
Operating Income (Dollars in thousands) (Unaudited)
Three Months Ended Six Months Ended June 30, June 30,
2015 2014 2015
2014 Income before income taxes $ 213,790 $ 300,535 $
397,915 $ 499,975 Reconciliation to pre-tax operating income:
Capital (gains) losses, derivatives and other, included in
investment related (gains) losses, net 41,526 (38,136 ) 20,580
(64,442 ) Capital (gains) losses on funds withheld, included in
investment income (3,002 ) (5,954 ) (14,404 ) (6,343 ) Embedded
derivatives: Included in investment related (gains) losses, net
(27,780 ) (73,652 ) (322 ) (127,232 ) Included in interest credited
(10,488 ) 6,916 (175 ) 356 DAC offset, net (1,187 ) 47,543 (10,138
) 100,611 Non-investment derivatives 493 -
385 - Pre-tax operating income $
213,352 $ 237,252 $ 393,841 $ 402,925
REINSURANCE GROUP OF AMERICA, INCORPORATED AND
SUBSIDIARIES Reconciliation of Pre-tax Net Income to Pre-tax
Operating Income (Dollars in thousands)
(Unaudited)
Three Months Ended June 30, 2015
Capital Change in (gains) losses, value of Pre-tax Pre-tax
net derivatives embedded operating
income (loss)
and other, net derivatives, net
income (loss) U.S. and Latin America: Traditional $
82,793 $ (2 ) $ (3,358 ) $ 79,433 Non-Traditional: Asset Intensive
55,750 25,739 (1) (25,087 ) (2) 56,402 Financial Reinsurance
14,643 - - 14,643
Total U.S. and Latin America 153,186 25,737 (28,445 ) 150,478
Canada Traditional 22,736 1,023 - 23,759 Canada Non-Traditional
3,094 - - 3,094
Total Canada 25,830 1,023 - 26,853 EMEA Traditional 9,159 -
- 9,159 EMEA Non-Traditional 31,432 402
- 31,834 Total EMEA 40,591 402 - 40,993
Asia Pacific Traditional 4,315 - - 4,315 Asia Pacific
Non-Traditional (1,405 ) 2,056 -
651 Total Asia Pacific 2,910 2,056 - 4,966 Corporate
and Other (8,727 ) (1,211 ) -
(9,938 ) Consolidated $ 213,790 $ 28,007 $ (28,445 )
$ 213,352 (1) Asset Intensive is net of $(11,010) DAC
offset. (2) Asset Intensive is net of $9,823 DAC offset.
(Unaudited)
Three Months Ended June 30, 2014
Capital Change in (gains) losses, value of Pre-tax Pre-tax
net derivatives embedded operating
income (loss)
and other, net derivatives, net
income (loss) U.S. and Latin America: Traditional $
93,988 $ (5,967 ) $ 933 $ 88,954 Non-Traditional: Asset Intensive
81,797 (22,813 ) (1) (14,957 ) (2) 44,027 Financial Reinsurance
13,677 (68 ) - 13,609
Total U.S. and Latin America 189,462 (28,848 ) (14,024 )
146,590 Canada Traditional 32,009 (4,266 ) - 27,743 Canada
Non-Traditional 3,011 (28 )
-
2,983 Total Canada 35,020 (4,294 ) - 30,726
EMEA Traditional 26,787 (3,737 )
-
23,050 EMEA Non-Traditional 34,535 (12,904 )
- 21,631 Total EMEA 61,322 (16,641 ) -
44,681 Asia Pacific Traditional 28,213 (1,950 )
-
26,263 Asia Pacific Non-Traditional 6,715
(3,651 )
-
3,064 Total Asia Pacific 34,928 (5,601 ) -
29,327 Corporate and Other (20,197 ) 6,125
- (14,072 ) Consolidated $ 300,535 $
(49,259 ) $ (14,024 ) $ 237,252 (1) Asset Intensive
is net of $(5,169) DAC offset. (2) Asset Intensive is net of
$52,712 DAC offset. REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Net Income
to Pre-tax Operating Income (Dollars in thousands)
(Unaudited)
Six Months Ended June 30, 2015
Capital Change in (gains) losses, value of Pre-tax Pre-tax
net derivatives embedded operating
income (loss)
and other, net derivatives, net
income (loss) U.S. and Latin America: Traditional $
100,636 $ (1 ) $ (886 ) $ 99,749 Non-Traditional: Asset Intensive
97,890 2,347 (1) (3,501 ) (2) 96,736 Financial Reinsurance
27,008 - - 27,008
Total U.S. and Latin America 225,534 2,346 (4,387 ) 223,493 Canada
Traditional 45,463 (4,531 ) - 40,932 Canada Non-Traditional
7,225 - - 7,225
Total Canada 52,688 (4,531 ) - 48,157 EMEA Traditional 19,641 (49 )
- 19,592 EMEA Non-Traditional 51,066 (597 )
- 50,469 Total EMEA 70,707 (646 ) -
70,061 Asia Pacific Traditional 56,963 - - 56,963 Asia Pacific
Non-Traditional 8,740 2,035 -
10,775 Total Asia Pacific 65,703 2,035 -
67,738 Corporate and Other (16,717 ) 1,109
- (15,608 ) Consolidated $ 397,915 $
313 $ (4,387 ) $ 393,841 (1) Asset Intensive
is net of $(6,248) DAC offset. (2) Asset Intensive is net of
$(3,890) DAC offset. (Unaudited)
Six Months Ended June 30, 2014
Capital Change in (gains) losses, value of Pre-tax Pre-tax
net derivatives embedded operating
income (loss)
and other, net derivatives, net
income (loss) U.S. and Latin America: Traditional $
144,960 $ (10,191 ) $ 2,388 $ 137,157 Non-Traditional: Asset
Intensive 152,412 (42,052 ) (1) (25,328 ) (2) 85,032 Financial
Reinsurance 26,186 (151 ) -
26,035 Total U.S. and Latin America 323,558 (52,394 )
(22,940 ) 248,224 Canada Traditional 51,442 (2,166 ) - 49,276
Canada Non-Traditional 3,642 (69 )
-
3,573 Total Canada 55,084 (2,235 ) - 52,849
EMEA Traditional 25,795 (4,868 )
-
20,927 EMEA Non-Traditional 50,732 (13,002 )
- 37,730 Total EMEA 76,527 (17,870 ) -
58,657 Asia Pacific Traditional 47,080 (2,070 )
-
45,010 Asia Pacific Non-Traditional 14,159
(5,184 )
-
8,975 Total Asia Pacific 61,239 (7,254 ) -
53,985 Corporate and Other (16,433 ) 5,643
- (10,790 ) Consolidated $ 499,975 $
(74,110 ) $ (22,940 ) $ 402,925 (1) Asset Intensive
is net of $(3,325) DAC offset. (2) Asset Intensive is net of
$103,936 DAC offset. REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES Per Share and Shares Data (In
thousands, except per share data)
(Unaudited) Three Months
Ended Six Months Ended June 30, June 30,
2015
2014 2015 2014 Diluted
earnings per share from operating income $ 1.94 $ 2.23 $ 3.70 $
3.83 Earnings per share from net income: Basic earnings per
share $ 1.97 $ 2.87 $ 3.80 $ 4.80 Diluted earnings per share $ 1.94
$ 2.84 $ 3.76 $ 4.75
Weighted average number of common and
common equivalent shares outstanding
67,120 69,718 68,030 70,489 (Unaudited) At or
For the Six Months Ended June 30,
2015
2014 Treasury shares 12,716 10,328 Common shares
outstanding 66,422 68,810 Book value per share outstanding $ 97.61
$ 97.21 Book value per share outstanding, before impact of AOCI $
80.30 $ 73.54 REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of
Income (Dollars in thousands)
(Unaudited) Three Months
Ended Six Months Ended June 30, June 30, Revenues:
2015 2014 2015
2014 Net premiums $ 2,129,043 $ 2,183,160 $ 4,152,895
$ 4,283,797 Investment income, net of related expenses 450,539
410,607 877,430 814,982 Investment related gains (losses), net:
Other-than-temporary impairments on fixed maturity securities
(4,137 ) (870 ) (6,664 ) (1,173 ) Other investment related gains
(losses), net (12,041 ) 119,397 (1,931
) 204,271 Total investment related gains (losses),
net (16,178 ) 118,527 (8,595 ) 203,098 Other revenue 66,936
120,726 129,223 188,316
Total revenues 2,630,340 2,833,020
5,150,953 5,490,193
Benefits and expenses: Claims and other policy benefits 1,866,183
1,841,885 3,641,634 3,685,562 Interest credited 77,246 115,962
197,924 226,556 Policy acquisition costs and other insurance
expenses 300,412 409,374 577,455 764,247 Other operating expenses
131,600 127,462 253,218 238,398 Interest expense 35,851 35,211
71,478 70,295
Collateral finance and securitization
expense
5,258 2,591 11,329
5,160 Total benefits and expenses 2,416,550
2,532,485 4,753,038 4,990,218
Income before income taxes 213,790 300,535 397,915
499,975 Income tax expense 83,399 102,239
142,410 165,015 Net income $
130,391 $ 198,296 $ 255,505 $ 334,960
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version on businesswire.com: http://www.businesswire.com/news/home/20150723006569/en/
Reinsurance Group of America, IncorporatedJeff
Hopson, 636-736-7000Senior Vice President – Investor Relations
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