- Earnings per diluted share: operating
income* $1.90, net income $1.25
- Operating ROE* 11 percent, trailing 12
months
- Expiration of Active Financing
Exception (AFE) and strengthening U.S. dollar each reduced
operating EPS* by $0.15
- Continuing strong results in Global
Financial Solutions (GFS) and overall favorable claims experience
in Canada and international operations
- U.S. Traditional hampered by unusually
high claims in older issue-age policies
- Reported net premiums decreased 4
percent; up 8 percent net of foreign currency and the effect of
fourth-quarter 2014 retrocession transaction
- Repurchased approximately 782,000
shares for $71 million during the quarter
Reinsurance Group of America, Incorporated (NYSE: RGA), a
leading global provider of life reinsurance, reported operating
income* of $127.1 million, or $1.90 per diluted share, compared
with $159.8 million, or $2.31 per diluted share, in the
prior-year quarter. Net income totaled $83.5 million, or $1.25
per diluted share, compared with $158.0 million, or $2.28 per
diluted share, the year before. In addition to the effects on
operating income noted above, the significant decrease in
current-period net income reflected net investment related losses,
including the change in fair value of certain stand-alone and
embedded derivatives.
Quarterly Results
Year-to-Date Results ($ in thousands, except per share
data) 2015 2014 2015
2014 Net premiums $2,089,345 $2,168,285 $6,242,240
$6,452,082 Net income 83,534 157,996 339,039 492,956 Net income per
diluted share 1.25 2.28 5.01 7.03 Operating income* 127,086 159,823
379,134 429,761 Operating income per diluted share* 1.90 2.31 5.60
6.13 Book value per share 94.92 97.28
Book value per share (excl. Accumulated
Other Comprehensive Income “AOCI”)*
81.14
75.44
Total assets 47,606,120 42,910,363
* See ‘Use of Non-GAAP Financial Measures’
below
Consolidated net premiums decreased 4 percent and totaled $2.1
billion this quarter, reflecting adverse foreign currency effects
of approximately $147 million and a $114 million reduction
associated with the previously announced fourth-quarter 2014 U.S.
retrocession agreement. Excluding those effects, premiums increased
8 percent over the prior-year quarter. Investment income decreased
13 percent from $447.1 million to $389.6 million this period,
primarily attributable to a $76.4 million decrease in the fair
value of options contracts that are included in funds withheld at
interest on the consolidated balance sheet and support the
crediting rates for equity-indexed annuities. Excluding
spread-based businesses and the value of associated derivatives,
investment income was even with year-ago levels.
The average investment yield was 4.66 percent, 14 basis points
below the third quarter of 2014, and 22 basis points lower
than the second-quarter yield, with both of those comparable yields
benefiting from investment prepayments.
For the first nine months of 2015, net adverse foreign currency
fluctuations lowered operating income by approximately $0.35 per
diluted share and the non-extension of the Active Financing
Exception (AFE) further reduced operating income per share by
$0.35. Aside from those items, underlying operating results were
modestly favorable compared with the prior-year period.
The effective tax rate on operating income was 38.6 percent this
quarter, well above the ongoing expected range of 33 percent to 34
percent, and the comparable prior-year rate of 31.9 percent.
Although an extension is expected in the fourth quarter of 2015,
Congress has not yet extended the AFE legislation, and as a result,
the company increased its tax provision by $10.1 million in
the third quarter, an adverse effect of $0.15 per diluted share.
Excluding this increase, the effective tax rate was 33.8 percent in
the third quarter. Through the first nine months of 2015, the
AFE-related increase to the tax provision totaled $23.7 million, or
$0.35 per share, which would be reversed upon extension of the
AFE.
Greig Woodring, president and chief executive officer,
commented, “Similar to the second quarter, the results were
negatively affected by a higher effective tax rate and foreign
currency weakness that together provided a considerable headwind to
our quarterly and year-to-date results, although we still expect a
reversal of AFE-related tax provisions in this year’s fourth
quarter. Beyond these headwinds, year-to-date operating EPS were
modestly improved over 2014 levels, as continued strong results in
our GFS and international operations, ongoing in-force
transactions, and effective capital management partially mitigated
unusually high claims in our U.S. individual mortality
business.
“In the third quarter, GFS results were strong across all
geographies, Canada performed well due to favorable mortality
experience, and further, our EMEA and Asian operations produced
solid results but faced tough comparisons with unusually strong
year-ago results. The U.S. individual mortality business had
another challenging quarter, driven primarily by large claims
(those over $1 million) from older issue-age policies. This
continues a trend of higher volatility in this business more
recently and adverse experience on the older issue-age block over
time.
“Our ongoing analysis suggests a continuing negative effect from
the older issue-age block and some degree of diminished future
returns. However, we view this situation as manageable given that
block’s relative size and declining influence, and we expect some
rebound from this year’s unusually volatile results. Furthermore,
we are encouraged by the ongoing strength from other parts of our
business, a growing influence from in-force transactions, and
effective capital management actions. We remain optimistic about
our business overall given its strong global position and ample
opportunities to put our client-centric solutions to work.
“In the third quarter, we continued to implement our capital
management strategy, reflecting a continuation of our share
repurchase activity and the announcement of a meaningful in-force
block transaction. Thus, we have had the opportunity to deploy a
considerable amount of excess capital throughout the year,
continuing the trend from 2014. At the end of the quarter, we had
capacity under our current share repurchase authorization of
approximately $126 million, and our deployable, excess capital
position is approximately $700 million. Ending book value per share
this quarter was $94.92 including AOCI, and $81.14 excluding AOCI,
a 9 percent increase over that of a year ago on a total returns
basis.”
SEGMENT RESULTS
U.S. and Latin America
Traditional
The U.S. and Latin America Traditional segment reported pre-tax
operating income of $54.7 million, a 31 percent decrease
from last year’s third-quarter total of $78.9 million. Both
periods reflected high claims flow, with the current-period
mortality experience being unusually poor and driven by large
policies issued to those over 70 years of age. Traditional net
premiums decreased 2 percent from last year’s second quarter
to $1,150.9 million, including the retrocession agreement
effective in last year’s fourth quarter, and increased 8 percent
excluding that agreement. Pre-tax net income totaled
$55.7 million for the quarter, compared with
$77.8 million in last year’s third quarter.
Non-Traditional
The Asset-Intensive business reported pre-tax operating income
of $55.2 million compared with $58.0 million last year.
Results continue to outpace expectations and benefited from
favorable net interest rate spread performance on fixed annuities,
as well as strong contributions from this segment’s annuity block
acquisitions. The prior-year quarter benefited from prepayment fees
of $8.4 million associated with commercial mortgage loans. Pre-tax
net income decreased to $24.2 million from $63.8 million
a year ago, attributable to changes in the fair value of various
embedded derivatives.
The Financial Reinsurance business reported pre-tax operating
income of $12.1 million, a decrease from the $13.8 million posted
in last year’s third quarter. Pre-tax net income totaled $12.1
million in the current period compared with $13.7 million in the
prior-year quarter. This business is driven by fees earned on
financial reinsurance transactions, and quarterly earnings can vary
depending on the size and timing of transactions.
Canada
Traditional
The Canada Traditional business reported pre-tax operating
income of $37.8 million this quarter, a 52 percent
increase over $24.9 million the year before, overcoming the
significantly negative effect of a weaker Canadian currency.
Individual mortality claims experience continued to improve and was
better than expected in the third quarter. Reported net premiums
decreased 17 percent to $200.0 million, primarily due to the
significantly weaker Canadian dollar. Pre-tax net income totaled
$34.1 million compared with $24.2 million in the third
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 $3.3 million this quarter compared
with $0.9 million in the prior-year quarter.
In total, a relatively weaker Canadian dollar lowered net
premiums and pre-tax operating income by approximately $42.2
million and $8.3 million, respectively, during the quarter. In
Canadian dollars, premiums increased 3 percent over the third
quarter of 2014.
Europe, Middle East and Africa (EMEA)
Traditional
The EMEA Traditional segment reported pre-tax operating income
of $15.6 million compared with $20.3 million in last year’s third
quarter. Both periods had favorable overall claims experience, with
the year-ago period being unusually strong. Net reported premiums
decreased 5 percent and totaled $276.1 million, compared with
$291.0 million in the prior-year quarter. Net foreign currency
fluctuations had an adverse effect on pre-tax operating income and
premiums again this quarter and for the first nine months. Pre-tax
net income totaled $15.9 million versus $21.3 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 22 percent to $28.8 million from $23.7 million a year
ago, primarily due to contributions from new longevity transactions
and favorable experience on existing longevity and asset-intensive
business. Pre-tax net income totaled $29.2 million this quarter,
compared with $23.9 million in last year’s third quarter.
In total, adverse foreign currency fluctuations reduced net
premiums and pre-tax operating income by $33.3 million and $3.5
million, respectively. EMEA premiums based in local currencies
increased 2 percent over the third quarter of 2014.
Asia Pacific
Traditional
Asia Pacific’s Traditional business reported pre-tax operating
income of $13.0 million, compared with a very strong $24.6
million in the prior-year quarter. Overall claims experience was
better than expected, with most markets performing well, and was
especially favorable in the year-ago period. Operations in
Australia reported a modest loss for the quarter, versus a modest
gain in last year’s third quarter. Traditional net premiums
increased 2 percent to $400.3 million, including a significant
foreign currency headwind compared with the prior year. Pre-tax net
income totaled $11.3 million compared with $24.3 million
in last year’s third 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 increased to $6.3 million from
$2.8 million last year due to the effects of several new
treaties and favorable experience on existing treaties in the
current period. Pre-tax net income totaled $5.4 million this
quarter versus a pre-tax net loss of $3.9 million in the
year-ago period. The prior-year result was driven by investment
related losses.
In total, adverse foreign currency fluctuations reduced Asia
Pacific net premiums and pre-tax operating income by $69.5 million
and $2.3 million, respectively. Premiums based in local currencies
increased 18 percent over the third quarter of 2014.
Corporate and Other
The Corporate and Other segment’s pre-tax operating losses
increased to $19.7 million from $13.2 million in the third
quarter of 2014, mainly attributable to the retention of certain
executive costs that were previously allocated to other segments.
Pre-tax net losses were $50.9 million this quarter, including net
investment related losses, and $14.2 million a year ago.
Dividend Declaration
The board of directors declared a regular quarterly dividend of
$0.37, payable December 1 to shareholders of record as of November
10.
Earnings Conference Call
A conference call to discuss third-quarter results will begin at
9 a.m. Eastern Time on Friday, October 30. Interested parties may
access the call by dialing 1-877-795-3599 (domestic) or
719-325-4785 (international). The access code is 8717800. 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 November 7 at 888-203-1112
(domestic) or 719-457-0820 (international), access code
8717800.
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 $2.8
trillion of life reinsurance in force, and assets of $47.6
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 Nine
Months Ended September 30, September 30,
2015
2014 2015 2014 GAAP net
income $ 83,534 $ 157,996 $ 339,039 $ 492,956 Reconciliation to
operating income: Capital (gains) losses, derivatives and other,
included in investment related (gains) losses, net (22,750 ) (5,517
) (10,183 ) (49,344 ) Capital (gains) losses on funds withheld,
included in investment income (1,438 ) (3,576 ) (10,801 ) (7,699 )
Embedded derivatives: Included in investment related (gains)
losses, net 92,002 (6,067 ) 91,793 (88,767 ) Included in interest
credited (7,147 ) (269 ) (7,261 ) (38 ) DAC offset, net (16,865 )
17,238 (23,454 ) 82,635 Non-investment derivatives (250 )
18 1 18 Operating income
$ 127,086 $ 159,823 $ 379,134 $ 429,761
Reconciliation of Consolidated Pre-tax
Net Income to Pre-tax Operating Income (Dollars in thousands)
(Unaudited) Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014
2015 2014 Income before income taxes $
140,137 $ 231,815 $ 538,052 $ 731,790 Reconciliation to pre-tax
operating income: Capital (gains) losses, derivatives and other,
included in investment related (gains) losses, net (35,028 ) (8,413
) (14,448 ) (72,855 ) Capital (gains) losses on funds withheld,
included in investment income (2,212 ) (5,501 ) (16,616 ) (11,844 )
Embedded derivatives: Included in investment related (gains)
losses, net 141,542 (9,333 ) 141,220 (136,565 ) Included in
interest credited (10,995 ) (415 ) (11,170 ) (59 ) DAC offset, net
(25,945 ) 26,521 (36,083 ) 127,132 Non-investment derivatives
(383 ) 28 2 28
Pre-tax operating income $ 207,116 $ 234,702 $
600,957 $ 637,627 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 September 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 $ 55,652 $ (1 ) $ (925 ) $
54,726 Non-Traditional: Asset Intensive 24,182 (164,382 ) (1)
195,430 (2) 55,230 Financial Reinsurance 12,073
- - 12,073 Total U.S. and
Latin America 91,907 (164,383 ) 194,505 122,029 Canada Traditional
34,072 3,721 - 37,793 Canada Non-Traditional 3,257
- - 3,257 Total Canada
37,329 3,721 - 41,050 EMEA Traditional 15,910 (289 ) - 15,621 EMEA
Non-Traditional 29,234 (396 ) -
28,838 Total EMEA 45,144 (685 ) - 44,459 Asia Pacific
Traditional 11,276 1,706 - 12,982 Asia Pacific Non-Traditional
5,412 881 - 6,293
Total Asia Pacific 16,688 2,587 - 19,275 Corporate and Other
(50,931 ) 31,234 -
(19,697 ) Consolidated $ 140,137 $ (127,526 ) $ 194,505
$ 207,116 (1) Asset Intensive is net of
$(89,903) DAC offset. (2) Asset Intensive is net of $63,958 DAC
offset. (Unaudited) Three Months Ended September 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 $ 77,833 $ 1,414 $ (322 ) $ 78,925 Non-Traditional:
Asset Intensive 63,796 54,500 (1) (60,320 ) (2) 57,976 Financial
Reinsurance 13,704 100 -
13,804 Total U.S. and Latin America 155,333 56,014
(60,642 ) 150,705 Canada Traditional 24,160 695 - 24,855 Canada
Non-Traditional 884 (3 )
-
881 Total Canada 25,044 692 - 25,736 EMEA
Traditional 21,281 (990 )
-
20,291 EMEA Non-Traditional 23,895 (206 )
- 23,689 Total EMEA 45,176
(1,196 ) - 43,980 Asia Pacific Traditional 24,302 324
-
24,626 Asia Pacific Non-Traditional (3,889 ) 6,707
-
2,818 Total Asia Pacific 20,413 7,031 - 27,444
Corporate and Other (14,151 ) 988 -
(13,163 ) Consolidated $ 231,815 $ 63,529
$ (60,642 ) $ 234,702 (1) Asset Intensive is
net of $77,415 DAC offset. (2) Asset Intensive is net of $(50,894)
DAC offset. REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Net Income
to Pre-tax Operating Income (Dollars in thousands)
(Unaudited) Nine Months Ended September 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 $ 156,288 $ (2 ) $ (1,811 ) $
154,475 Non-Traditional: Asset Intensive 122,072 (162,035 ) (1)
191,929 (2) 151,966 Financial Reinsurance 39,081
- - 39,081 Total U.S. and
Latin America 317,441 (162,037 ) 190,118 345,522 Canada Traditional
79,535 (810 ) - 78,725 Canada Non-Traditional 10,482
- - 10,482 Total Canada
90,017 (810 ) - 89,207 EMEA Traditional 35,551 (338 ) - 35,213 EMEA
Non-Traditional 80,300 (993 ) -
79,307 Total EMEA 115,851 (1,331 ) - 114,520 Asia
Pacific Traditional 68,239 1,706 - 69,945 Asia Pacific
Non-Traditional 14,152 2,916 -
17,068 Total Asia Pacific 82,391 4,622 -
87,013 Corporate and Other (67,648 ) 32,343
- (35,305 ) Consolidated $ 538,052 $
(127,213 ) $ 190,118 $ 600,957 (1) Asset
Intensive is net of $(96,151) DAC offset. (2) Asset Intensive is
net of $60,068 DAC offset. (Unaudited) Nine Months
Ended September 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 $ 222,793 $ (8,777 ) $ 2,066 $ 216,082
Non-Traditional: Asset Intensive 216,208 12,448 (1) (85,648 ) (2)
143,008 Financial Reinsurance 39,890 (51 )
- 39,839 Total U.S. and Latin America
478,891 3,620 (83,582 ) 398,929 Canada Traditional 75,602 (1,471 )
- 74,131 Canada Non-Traditional 4,526 (72 )
-
4,454 Total Canada 80,128 (1,543 ) - 78,585
EMEA Traditional 47,076 (5,858 )
-
41,218 EMEA Non-Traditional 74,627 (13,208 )
- 61,419 Total EMEA 121,703 (19,066 ) -
102,637 Asia Pacific Traditional 71,382 (1,746 )
-
69,636 Asia Pacific Non-Traditional 10,270
1,523
-
11,793 Total Asia Pacific 81,652 (223 ) -
81,429 Corporate and Other (30,584 ) 6,631
- (23,953 ) Consolidated $ 731,790 $
(10,581 ) $ (83,582 ) $ 637,627 (1) Asset Intensive
is net of $74,090 DAC offset. (2) Asset Intensive is net of $53,042
DAC offset. 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 September 30, September 30,
2015 2014 2015
2014 Diluted earnings per share from operating income
$ 1.90 $ 2.31 $ 5.60 $ 6.13 Earnings per share from net
income: Basic earnings per share $ 1.26 $ 2.30 $ 5.07 $ 7.10
Diluted earnings per share $ 1.25 $ 2.28 $ 5.01 $ 7.03
Weighted average number of common and
common equivalent shares outstanding
66,882 69,335 67,644 70,101 (Unaudited) At or
For the Nine Months Ended September 30,
2015
2014 Treasury shares 13,389 10,472 Common shares
outstanding 65,749 68,666 Book value per share outstanding $ 94.92
$ 97.28 Book value per share outstanding, before impact of AOCI $
81.14 $ 75.44 REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of
Income (Dollars in thousands)
(Unaudited) Three Months
Ended Nine Months Ended September 30, September 30, Revenues:
2015 2014 2015
2014 Net premiums $ 2,089,345 $ 2,168,285 $ 6,242,240
$ 6,452,082 Investment income, net of related expenses 389,597
447,106 1,267,027 1,262,088 Investment related gains (losses), net:
Other-than-temporary impairments on fixed maturity securities
(23,111 ) (246 ) (29,775 ) (1,419 ) Other investment related gains
(losses), net (88,235 ) 22,564 (90,166
) 226,835 Total investment related gains (losses),
net (111,346 ) 22,318 (119,941 ) 225,416 Other revenue
71,038 78,879 200,261
267,195 Total revenues 2,438,634
2,716,588 7,589,587 8,206,781
Benefits and expenses: Claims and other policy benefits
1,831,819 1,855,037 5,473,453 5,540,599 Interest credited 34,008
120,952 231,932 347,508 Policy acquisition costs and other
insurance expenses 249,702 336,411 827,157 1,100,658 Other
operating expenses 142,270 133,737 395,488 372,135 Interest expense
35,565 36,065 107,043 106,360 Collateral finance and securitization
expense 5,133 2,571 16,462
7,731 Total benefits and expenses
2,298,497 2,484,773 7,051,535
7,474,991 Income before income taxes 140,137
231,815 538,052 731,790 Provision for income taxes 56,603
73,819 199,013 238,834
Net income $ 83,534 $ 157,996 $ 339,039
$ 492,956
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151029006683/en/
Reinsurance Group of America, IncorporatedJeff Hopson,
636-736-7000Senior Vice President – Investor Relations
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