UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): January 28, 2016
REINSURANCE GROUP OF AMERICA, INCORPORATED
(Exact Name of Registrant as Specified in its Charter)
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Missouri | | 1-11848 | | 43-1627032 |
(State or Other Jurisdiction of Incorporation) | | (Commission File Number) | | (IRS Employer Identification Number) |
16600 Swingley Ridge Road, Chesterfield, Missouri 63017
(Address of Principal Executive Office)
Registrant’s telephone number, including area code: (636) 736-7000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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r | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
r | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
r | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
r | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02 | Results of Operations and Financial Condition. |
On January 28, 2016, Reinsurance Group of America, Incorporated issued (1) a press release (the “Press Release”) announcing its earnings for the three-month period ended December 31, 2015, and providing certain additional information, a copy of which is furnished with this report as Exhibit 99.1, and (2) a quarterly financial supplement (the "Quarterly Financial Supplement") for the quarter ended December 31, 2015, a copy of which is attached hereto as Exhibit 99.2. The Press Release also notes that a conference call will be held on January 29, 2016 to discuss the financial and operating results for the three-month period ended December 31, 2015. The information set forth in this Current Report on Form 8-K, including the Press Release and Quarterly Financial Supplement, is being furnished and shall not be deemed to be "filed", as described in Instruction B.2 of Form 8-K.
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Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits.
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Exhibit No. | | Exhibit |
99.1 | | Press Release of Reinsurance Group of America, Incorporated dated January 28, 2016 |
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99.2 | | Quarterly Financial Supplement for the quarter ended December 31, 2015 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | | REINSURANCE GROUP OF AMERICA, INCORPORATED |
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Date: January 28, 2016 | | | By: | | /s/ Jack B. Lay |
| | | | | Jack B. Lay |
| | | | | Senior Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
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Exhibit Number | | Description |
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99.1 | | Press Release dated January 28, 2016 |
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99.2 | | Quarterly Financial Supplement for the quarter ended December 31, 2015 |
PRESS RELEASE
REINSURANCE GROUP OF AMERICA REPORTS FOURTH-QUARTER RESULTS
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• | Earnings per diluted share: operating income* $2.84, net income $2.46 |
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• | Full-year operating return on equity* 11 percent |
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• | Continuing strong performance by Global Financial Solutions (GFS) and International segments; much-improved results in Canada |
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• | Deployed approximately $500 million toward block transactions and repurchased $375 million of shares for the full year |
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• | A stronger U.S. dollar reduced operating EPS* by $0.18 in Q4 and $0.53 for the full year |
ST. LOUIS, January 28, 2016 - Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global provider of life reinsurance, reported operating income* of $188.0 million, or $2.84 per diluted share, compared to $208.3 million, or $2.99 per diluted share, in the prior-year quarter. A relatively stronger U.S. dollar adversely affected fourth-quarter results by $0.18 per share. Enactment of the Active Financing Exception (AFE) added $0.36 per diluted share in Q4; there was no AFE impact for the full year. In the prior-year period, tax-related adjustments benefited the fourth quarter by $0.55 per share. Net income totaled $163.1 million, or $2.46 per diluted share, compared to $191.1 million, or $2.75 per diluted share, the year before.
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| | | | | | | | | | | | | | | | |
| | Quarterly Results | | Year-to-Date Results |
($ in thousands, except per share data) | | 2015 | | 2014 | | 2015 | | 2014 |
Net premiums | | $ | 2,328,501 |
| | $ | 2,217,772 |
| | $ | 8,570,741 |
| | $ | 8,669,854 |
|
Net income | | 163,127 |
| | 191,091 |
| | 502,166 |
| | 684,047 |
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Net income per diluted share | | 2.46 |
| | 2.75 |
| | 7.46 |
| | 9.78 |
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Operating income* | | 187,950 |
| | 208,288 |
| | 567,084 |
| | 638,049 |
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Operating income per diluted share* | | 2.84 |
| | 2.99 |
| | 8.43 |
| | 9.12 |
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Book value per share | | 94.09 |
| | 102.13 |
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Book value per share (excl. Accumulated Other Comprehensive Income “AOCI”)* | | 83.23 |
| | 78.03 |
| | | | |
Total assets | | 50,383,152 |
| | 44,654,300 |
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* See "Use of Non-GAAP Financial Measures" below |
Full-year operating income decreased to $567.1 million, or $8.43 per diluted share, from $638.0 million, or $9.12 per diluted share, the year before. Net adverse foreign currency fluctuations reduced 2015 operating income by $55.2 million, or $0.53 per share. Net premiums were down 1 percent for the current year in reported U.S. dollars and up 4 percent in original currencies. Excluding the adverse foreign currency fluctuations and the effect of a large retrocession agreement executed in the fourth quarter of 2014, net premiums increased 8 percent in 2015. Full-year 2015 net income totaled $502.2 million, or $7.46 per diluted share, versus $684.0 million, or $9.78 per diluted share, in 2014.
For the fourth quarter, consolidated net premiums increased 5 percent and totaled $2.3 billion, including adverse foreign currency effects of approximately $108 million. Original currency premiums increased 10 percent over the prior-year quarter, including contributions from new block transactions. Investment
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income increased 4 percent to $467.5 million from $451.6 million a year ago, primarily attributable to a growing asset base, although the ongoing low interest rate environment continues to put pressure on the portfolio yield and investment income. The average investment yield, excluding spread businesses, was 4.96 percent this quarter, slightly higher than the prior-year quarter, and 30 basis points higher than the third quarter, due primarily to higher variable investment income and a fourth-quarter transaction that included investment income retroactive to January 1.
The effective tax rate on operating income was 23.9 percent this quarter, reflecting a significant decrease in the company’s tax provision associated with Congress permanently enacting the AFE legislation in December. As a result, the company’s tax provision was reduced by $23.7 million, or $0.36 per diluted share. For the full year, there was no AFE effect, and the effective tax rate was 33.1 percent.
Greig Woodring, chief executive officer, commented, “We are pleased to close out the year on a high note, as our fourth-quarter operating earnings of $2.84 per diluted share were strong, even after excluding a tax benefit of $0.36 per share related to the reversal of the AFE accruals. The quarter was highlighted by excellent results in Asia Pacific and Canada, while contributions from our ongoing in-force acquisitions and effective capital management actions were important as well.
“For the year, operating earnings per share of $8.43 was also strong, despite the sizeable negative effect of foreign currency movements and a difficult year for our U.S. Mortality business. All our International operations performed well, and our Global Financial Solutions business continued to make a strong contribution across our global platform. Our operating return on equity was 11 percent in 2015, and our balance sheet remains strong.
“Our strong capital position has allowed us to pursue and execute attractive in-force transactions and manage capital effectively through active share repurchases. For the year, we deployed more than $500 million toward in-force transactions, including approximately $250 million in the fourth quarter. We also repurchased $375 million of common shares in 2015, including $51 million in the fourth quarter, and our board approved a new authorization of $400 million, replacing the previous authorization. Over the past two years, we have deployed a total of $1.3 billion toward transactions and share repurchases, and have reduced shares outstanding by roughly 8 percent. Our deployable excess capital position is approximately $600 million.
“Looking forward, while the macro environment continues to be challenging in certain respects, we are optimistic about our ability to execute collectively across the organization.”
Book value per share at year-end 2015 was $94.09 including AOCI, and $83.23 excluding AOCI, an 8 percent increase over 2014 on a total return basis.
SEGMENT RESULTS
U.S. and Latin America
Traditional
The U.S. and Latin America Traditional segment reported fourth-quarter pre-tax operating income of $79.0 million, down from 2014’s unusually strong $134.1 million. Current-period results were primarily
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driven by poor experience in the Group business. Individual mortality experience was also unfavorable, but to a lesser degree, due to higher average claim size on policies under $1 million. The unfavorable experience was partly offset by growing contributions from in-force transactions. For the full year, pre-tax operating income decreased to $233.5 million compared to $350.2 million in 2014. Pre-tax net income decreased to $79.5 million from $128.9 million during the fourth quarter, and decreased 33 percent to $235.8 million for the full year.
Traditional net premiums increased 12 percent from last year’s fourth quarter to $1.4 billion, including the effect of several block transactions added during 2015. Excluding those new transactions, net premiums were up 6 percent. For the full year, net premiums increased 2 percent and totaled $4.8 billion. Without the effect of the retrocession agreement executed in the fourth quarter of 2014, net premiums rose 9 percent in 2015.
Non-Traditional
The Asset-Intensive business reported pre-tax operating income of $47.6 million compared to a very strong $56.0 million in the fourth quarter of 2014. The year-ago quarter benefited from $12 million in commercial loan prepayments, while this year reflected a contribution from the acquisition of Aurora National Life Assurance Company completed earlier in 2015. Full-year pre-tax operating income totaled $199.6 million compared to $199.0 million in 2014, with both periods benefiting from favorable interest rate spreads; the year-ago period also included unusually high mortgage and bond prepayments. Pre-tax net income decreased 10 percent to $30.9 million during the fourth quarter, and declined to $152.9 million from $250.7 million for the full year.
The Financial Reinsurance business reported pre-tax operating income of $15.9 million, a 27 percent increase over last year’s fourth quarter. For the year, pre-tax operating income rose 5 percent to $55.0 million. Pre-tax net income increased 29 percent to $15.9 million during the fourth quarter, and was up modestly to $55.0 million from $52.3 million for the full year.
Canada
Traditional
The Canada Traditional business reported pre-tax operating income of $45.1 million this quarter, versus $18.2 million in the prior-year quarter, as individual mortality experience was much better than expected and enough to overcome a foreign currency headwind of $7.8 million. For the full year, pre-tax operating income increased to $123.8 million from $92.3 million in 2014. Pre-tax net income increased to $44.6 million from $19.8 million during the fourth quarter, and 30 percent to $124.2 million for the full year.
Fourth-quarter reported net premiums decreased 16 percent to $201.4 million, primarily due to the weaker Canadian dollar, but only 2 percent on an original currency basis. For the full year, net premiums reported in U.S. dollars were down 12 percent, but up 2 percent in Canadian dollars.
Non-Traditional
The Canada Non-Traditional business segment, which consists of longevity and fee-based transactions, posted pre-tax operating income of $3.4 million this quarter, compared to $1.7 million in the prior-year
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quarter. Full-year pre-tax operating income increased to $13.9 million from $6.2 million in 2014. Pre-tax
net income increased to $3.4 million from $1.7 million during the fourth quarter, and increased to $13.9 million from $6.3 million for the full year.
Europe, Middle East and Africa (EMEA)
Traditional
The EMEA Traditional segment reported pre-tax operating income of $12.9 million compared to $9.9 million the year before, as underwriting experience in this year’s period was generally in line with expectations. Net foreign currency fluctuations adversely affected pre-tax operating income by $1.3 million this quarter. For the full year, pre-tax operating income declined to $48.1 million from $51.1 million in 2014. Pre-tax net income decreased 3 percent to $12.9 million during the fourth quarter, and 20 percent to $48.4 million for the full year.
Net reported premiums were up 4 percent to $299.9 million from $288.2 million in the prior-year quarter. Net premiums increased 13 percent in original currencies. For the full year, reported net premiums decreased 3 percent to $1,121.5 million, while net premiums on an original currency basis increased 7 percent.
Non-Traditional
The EMEA Non-Traditional segment includes asset-intensive, longevity and fee-based transactions. Fourth-quarter pre-tax operating income of $18.8 million was solid, although below a strong $23.9 million in the year-ago period. The current-period result reflects adverse net foreign currency fluctuations of $1.4 million. For the full year, pre-tax operating income increased to $98.1 million from $85.3 million in 2014. Pre-tax net income increased 5 percent to $28.1 million during the fourth quarter, and increased 7 percent to $108.4 million for the full year.
Asia Pacific
Traditional
Asia Pacific’s Traditional business pre-tax operating income was very strong, totaling $35.7 million, versus $18.0 million in the prior-year quarter. Overall claims experience was better than expected, with strong performance in most markets, including Australia. Net adverse foreign currency fluctuations lowered pre-tax operating income by $4.2 million this period. For the full year, pre-tax operating income increased to $105.7 million from $87.7 million in 2014. Pre-tax net income increased to $37.4 million from $19.2 million during the fourth quarter, and increased 17 percent to $105.7 million for the full year. The prior-year result was hampered by investment related losses.
Traditional net premiums decreased 1 percent to $388.7 million, net of $43 million in adverse currency effects, compared to the prior year. Net premiums were up 11 percent in original currencies this quarter. For the year, net premiums were up 1 percent on a U.S. dollar basis and 14 percent in original currencies.
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Non-Traditional
Asia Pacific’s Non-Traditional business includes asset-intensive, fee-based and various other transactions. Current-quarter pre-tax operating income decreased to $5.4 million from $7.2 million in the prior-year period due to unfavorable experience on an existing treaty. For the full year, pre-tax operating income increased to $22.5 million from $19.0 million in 2014. Pre-tax net income increased to $5.5 million from $1.4 million during the fourth quarter, and rose to $19.6 million from $11.7 million for the full year.
Corporate and Other
The Corporate and Other segment posted a pre-tax operating loss of $16.7 million contrasted with pre-tax operating income of $22.6 million in the fourth quarter of 2014. The year-ago period reflected a significant reduction in tax-related interest expense. For the full year, pre-tax operating losses were $52.0 million versus $1.3 million in 2014. Pre-tax net losses were $51.5 million this quarter, including net investment related losses, compared to pre-tax net income of $18.9 million a year ago. For the full year, pre-tax net losses increased to $119.1 million from $11.7 million in 2014.
Company Guidance
On an annual basis, the company provides financial guidance based upon the intermediate term rather than giving a range of annual earnings per share for an upcoming year. This better reflects the long-term nature of the business and the difficulty in predicting the timing of shorter-term or periodic events such as block transactions. The company accepts risks over very long periods of time, up to 30 years or longer in some cases. While more predictable over longer-term horizons, RGA’s business is subject to inherent short-term volatility.
Over the intermediate term, the company targets growth in operating income per share in the 5 to 8 percent range, and operating return on equity of 10 to 12 percent. It is presumed that there are no significant changes in the investment environment from current levels, and the company will deploy $300 million to $400 million of excess capital, on average, annually. These guidance ranges are based upon “normalized” results. The operating EPS target range is unchanged from a year ago, while the operating return on equity range was widened slightly from 11 to 12 percent. The wider return on equity range better reflects the potential for variability in the results due to influences from macro issues, notably foreign exchange and interest rates.
Jack B. Lay, chief financial officer, commented, “We have faced significant macro headwinds in terms of weak foreign currencies and sustained low interest rates over the past several years, and we assume this will continue to be the case for the foreseeable future. However, we believe that our EPS range is appropriate, and we expect the combination of organic growth, execution of block transactions and efficient capital management to mitigate those headwinds and allow us to reach our financial targets.”
Stock Repurchase Authorization
The board of directors authorized a share repurchase program for up to $400 million of the company’s
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outstanding common stock, replacing the previous share repurchase authorization. This new authorization
is effective immediately and does not have an expiration date. Repurchases would be made in accordance with applicable securities laws and would be made through market transactions, block trades, privately negotiated transactions or other means, or a combination of these methods, with the timing and number of
shares repurchased dependent on a variety of factors, including share price, corporate and regulatory requirements, and market and business conditions. Repurchases may be commenced or suspended from time to time without prior notice.
Dividend Declaration
The board of directors declared a regular quarterly dividend of $0.37, payable March 1 to shareholders of record as of February 9.
Earnings Conference Call
A conference call to discuss fourth-quarter results will begin at 9 a.m. Eastern Time on Friday, January 29. Interested parties may access the call by dialing 1-877-548-7905 (domestic) or 719-325-4894 (international). The access code is 3331176. 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 February 6 at 888-203-1112 (domestic) or 719-457-0820 (international), access code 3331176.
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.
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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 $3.0 trillion of life reinsurance in force, and assets of $50.4 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
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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.
Investor Contact
Jeff Hopson
Senior Vice President - Investor Relations
(636) 736-7000
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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Operating Income
(Dollars in thousands)
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(Unaudited) | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2015 | | 2014 | | 2015 | | 2014 |
GAAP net income | $ | 163,127 |
| | $ | 191,091 |
| | $ | 502,166 |
| | $ | 684,047 |
|
Reconciliation to operating income: | | | | | | | |
Capital (gains) losses, derivatives and other, included in investment related (gains) losses, net | 40,203 |
| | (15,281 | ) | | 30,020 |
| | (64,625 | ) |
Capital (gains) losses on funds withheld, included in investment income | 161 |
| | (891 | ) | | (10,640 | ) | | (8,590 | ) |
Embedded derivatives: | | | | | | | |
Included in investment related (gains) losses, net | (6,004 | ) | | 43,826 |
| | 85,789 |
| | (44,941 | ) |
Included in interest credited | (917 | ) | | (236 | ) | | (8,178 | ) | | (274 | ) |
DAC offset, net | (8,542 | ) | | (9,914 | ) | | (31,996 | ) | | 72,721 |
|
Non-investment derivatives | (78 | ) | | (307 | ) | | (77 | ) | | (289 | ) |
Operating income | $ | 187,950 |
| | $ | 208,288 |
| | $ | 567,084 |
| | $ | 638,049 |
|
Reconciliation of Consolidated Pre-tax Net Income to Pre-tax Operating Income
(Dollars in thousands)
|
| | | | | | | | | | | | | | | |
(Unaudited) | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2015 | | 2014 | | 2015 | | 2014 |
Income before income taxes | $ | 206,743 |
| | $ | 276,743 |
| | $ | 744,795 |
| | $ | 1,008,533 |
|
Reconciliation to pre-tax operating income: | | | | | | | |
Capital (gains) losses, derivatives and other, included in investment related (gains) losses, net | 64,034 |
| | (22,453 | ) | | 49,586 |
| | (95,308 | ) |
Capital (gains) losses on funds withheld, included in investment income | 246 |
| | (1,371 | ) | | (16,370 | ) | | (13,215 | ) |
Embedded derivatives: | | | | | | | |
Included in investment related (gains) losses, net | (9,236 | ) | | 67,424 |
| | 131,984 |
| | (69,141 | ) |
Included in interest credited | (1,412 | ) | | (362 | ) | | (12,582 | ) | | (421 | ) |
DAC offset, net | (13,142 | ) | | (15,253 | ) | | (49,225 | ) | | 111,879 |
|
Non-investment derivatives | (120 | ) | | (472 | ) | | (118 | ) | | (444 | ) |
Pre-tax operating income | $ | 247,113 |
| | $ | 304,256 |
| | $ | 848,070 |
| | $ | 941,883 |
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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 December 31, 2015 |
| Pre-tax net income (loss) | | Capital (gains) losses, derivatives and other, net | | Change in value of embedded derivatives, net | | Pre-tax operating income (loss) |
U.S. and Latin America: | | | | | | | |
Traditional | $ | 79,483 |
| | $ | 203 |
| | $ | (696 | ) | | $ | 78,990 |
|
Non-Traditional: | | | | | | | |
Asset Intensive | 30,874 |
| | 124,163 |
| (1) | (107,441 | ) | (2) | 47,596 |
|
Financial Reinsurance | 15,936 |
| | — |
| | — |
| | 15,936 |
|
Total U.S. and Latin America | 126,293 |
| | 124,366 |
| | (108,137 | ) | | 142,522 |
|
Canada Traditional | 44,640 |
| | 446 |
| | — |
| | 45,086 |
|
Canada Non-Traditional | 3,420 |
| | — |
| | — |
| | 3,420 |
|
Total Canada | 48,060 |
| | 446 |
| | — |
| | 48,506 |
|
EMEA Traditional | 12,859 |
| | — |
| | — |
| | 12,859 |
|
EMEA Non-Traditional | 28,145 |
| | (9,366 | ) | | — |
| | 18,779 |
|
Total EMEA | 41,004 |
| | (9,366 | ) | | — |
| | 31,638 |
|
Asia Pacific Traditional | 37,415 |
| | (1,706 | ) | | — |
| | 35,709 |
|
Asia Pacific Non-Traditional | 5,467 |
| | (17 | ) | | — |
| | 5,450 |
|
Total Asia Pacific | 42,882 |
| | (1,723 | ) | | — |
| | 41,159 |
|
Corporate and Other | (51,496 | ) | | 34,784 |
| | — |
| | (16,712 | ) |
Consolidated | $ | 206,743 |
| | $ | 148,507 |
| | $ | (108,137 | ) | | $ | 247,113 |
|
| |
(1) | Asset Intensive is net of $84,347 DAC offset. |
| |
(2) | Asset Intensive is net of $(97,489) DAC offset. |
|
| | | | | | | | | | | | | | | |
(Unaudited) | Three Months Ended December 31, 2014 |
| Pre-tax net income | | Capital (gains) losses, derivatives and other, net | | Change in value of embedded derivatives, net | | Pre-tax operating income |
U.S. and Latin America: | | | | | | | |
Traditional | $ | 128,852 |
| | $ | 4,235 |
| | $ | 1,033 |
| | $ | 134,120 |
|
Non-Traditional: | | | | | | | |
Asset Intensive | 34,478 |
| | 48,572 |
| (1) | (27,036 | ) | (2) | 56,014 |
|
Financial Reinsurance | 12,368 |
| | 162 |
| | — |
| | 12,530 |
|
Total U.S. and Latin America | 175,698 |
| | 52,969 |
| | (26,003 | ) | | 202,664 |
|
Canada Traditional | 19,833 |
| | (1,635 | ) | | — |
| | 18,198 |
|
Canada Non-Traditional | 1,739 |
| | (8 | ) | | — |
| | 1,731 |
|
Total Canada | 21,572 |
| | (1,643 | ) | | — |
| | 19,929 |
|
EMEA Traditional | 13,229 |
| | (3,330 | ) | | — |
| | 9,899 |
|
EMEA Non-Traditional | 26,710 |
| | (2,826 | ) | | — |
| | 23,884 |
|
Total EMEA | 39,939 |
| | (6,156 | ) | | — |
| | 33,783 |
|
Asia Pacific Traditional | 19,220 |
| | (1,193 | ) | | — |
| | 18,027 |
|
Asia Pacific Non-Traditional | 1,423 |
| | 5,803 |
| | — |
| | 7,226 |
|
Total Asia Pacific | 20,643 |
| | 4,610 |
| | — |
| | 25,253 |
|
Corporate and Other | 18,891 |
| | 3,736 |
| | — |
| | 22,627 |
|
Consolidated | $ | 276,743 |
| | $ | 53,516 |
| | $ | (26,003 | ) | | $ | 304,256 |
|
| |
(1) | Asset Intensive is net of $77,812 DAC offset. |
| |
(2) | Asset Intensive is net of $(93,065) DAC offset. |
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Add Nine
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Pre-tax Net Income to Pre-tax Operating Income
(Dollars in thousands)
|
| | | | | | | | | | | | | | | |
(Unaudited) | Twelve Months Ended December 31, 2015 |
| Pre-tax net income (loss) | | Capital (gains) losses, derivatives and other, net | | Change in value of embedded derivatives, net | | Pre-tax operating income (loss) |
U.S. and Latin America: | | | | | | | |
Traditional | $ | 235,771 |
| | $ | 201 |
| | $ | (2,507 | ) | | $ | 233,465 |
|
Non-Traditional: | | | | | | | |
Asset Intensive | 152,946 |
| | (37,872 | ) | (1) | 84,488 |
| (2) | 199,562 |
|
Financial Reinsurance | 55,017 |
| | — |
| | — |
| | 55,017 |
|
Total U.S. and Latin America | 443,734 |
| | (37,671 | ) | | 81,981 |
| | 488,044 |
|
Canada Traditional | 124,175 |
| | (364 | ) | | — |
| | 123,811 |
|
Canada Non-Traditional | 13,902 |
| | — |
| | — |
| | 13,902 |
|
Total Canada | 138,077 |
| | (364 | ) | | — |
| | 137,713 |
|
EMEA Traditional | 48,410 |
| | (338 | ) | | — |
| | 48,072 |
|
EMEA Non-Traditional | 108,445 |
| | (10,359 | ) | | — |
| | 98,086 |
|
Total EMEA | 156,855 |
| | (10,697 | ) | | — |
| | 146,158 |
|
Asia Pacific Traditional | 105,654 |
| | — |
| | — |
| | 105,654 |
|
Asia Pacific Non-Traditional | 19,619 |
| | 2,899 |
| | — |
| | 22,518 |
|
Total Asia Pacific | 125,273 |
| | 2,899 |
| | — |
| | 128,172 |
|
Corporate and Other | (119,144 | ) | | 67,127 |
| | — |
| | (52,017 | ) |
Consolidated | $ | 744,795 |
| | $ | 21,294 |
| | $ | 81,981 |
| | $ | 848,070 |
|
| |
(1) | Asset Intensive is net of $(11,804) DAC offset. |
| |
(2) | Asset Intensive is net of $(37,421) DAC offset. |
|
| | | | | | | | | | | | | | | |
(Unaudited) | Twelve Months Ended December 31, 2014 |
| Pre-tax net income (loss) | | Capital (gains) losses, derivatives and other, net | | Change in value of embedded derivatives, net | | Pre-tax operating income (loss) |
U.S. and Latin America: | | | | | | | |
Traditional | $ | 351,645 |
| | $ | (4,542 | ) | | $ | 3,099 |
| | $ | 350,202 |
|
Non-Traditional: | | | | | | | |
Asset Intensive | 250,686 |
| | 61,020 |
| (1) | (112,684 | ) | (2) | 199,022 |
|
Financial Reinsurance | 52,258 |
| | 111 |
| | — |
| | 52,369 |
|
Total U.S. and Latin America | 654,589 |
| | 56,589 |
| | (109,585 | ) | | 601,593 |
|
Canada Traditional | 95,435 |
| | (3,106 | ) | | — |
| | 92,329 |
|
Canada Non-Traditional | 6,265 |
| | (80 | ) | | — |
| | 6,185 |
|
Total Canada | 101,700 |
| | (3,186 | ) | | — |
| | 98,514 |
|
EMEA Traditional | 60,305 |
| | (9,188 | ) | | — |
| | 51,117 |
|
EMEA Non-Traditional | 101,337 |
| | (16,034 | ) | | — |
| | 85,303 |
|
Total EMEA | 161,642 |
| | (25,222 | ) | | — |
| | 136,420 |
|
Asia Pacific Traditional | 90,602 |
| | (2,939 | ) | | — |
| | 87,663 |
|
Asia Pacific Non-Traditional | 11,693 |
| | 7,326 |
| | — |
| | 19,019 |
|
Total Asia Pacific | 102,295 |
| | 4,387 |
| | — |
| | 106,682 |
|
Corporate and Other | (11,693 | ) | | 10,367 |
| | — |
| | (1,326 | ) |
Consolidated | $ | 1,008,533 |
| | $ | 42,935 |
| | $ | (109,585 | ) | | $ | 941,883 |
|
| |
(1) | Asset Intensive is net of $151,902 DAC offset. |
| |
(2) | Asset Intensive is net of $(40,023) DAC offset. |
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Add Ten
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Per Share and Shares Data
(In thousands, except per share data)
|
| | | | | | | | | | | | | | | |
(Unaudited) | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2015 | | 2014 | | 2015 | | 2014 |
Diluted earnings per share from operating income | $ | 2.84 |
| | $ | 2.99 |
| | $ | 8.43 |
| | $ | 9.12 |
|
Earnings per share from net income: | | | | | | | |
Basic earnings per share | $ | 2.49 |
| | $ | 2.78 |
| | $ | 7.55 |
| | $ | 9.88 |
|
Diluted earnings per share | $ | 2.46 |
| | $ | 2.75 |
| | $ | 7.46 |
| | $ | 9.78 |
|
Weighted average number of common and common equivalent shares outstanding | 66,247 |
| | 69,550 |
| | 67,292 |
| | 69,962 |
|
|
| | | | | | | |
(Unaudited) | At or for the Nine Months Ended September 30, |
| 2015 | | 2014 |
Treasury shares | 13,933 |
| | 10,365 |
|
Common shares outstanding | 65,205 |
| | 68,773 |
|
Book value per share outstanding | $ | 94.09 |
| | $ | 102.13 |
|
Book value per share outstanding, before impact of AOCI | $ | 83.23 |
| | $ | 78.03 |
|
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Add Eleven
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Dollars in thousands)
|
| | | | | | | | | | | | | | | |
(Unaudited) | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2015 | | 2014 | | 2015 | | 2014 |
Revenues: | | | | | | | |
Net premiums | $ | 2,328,501 |
| | $ | 2,217,772 |
| | $ | 8,570,741 |
| | $ | 8,669,854 |
|
Investment income, net of related expenses | 467,468 |
| | 451,603 |
| | 1,734,495 |
| | 1,713,691 |
|
Investment related gains (losses), net: | | | | | | | |
Other-than-temporary impairments on fixed maturity securities | (27,605 | ) | | (6,347 | ) | | (57,380 | ) | | (7,766 | ) |
Other investment related gains (losses), net | (17,204 | ) | | (32,876 | ) | | (107,370 | ) | | 193,959 |
|
Total investment related gains (losses), net | (44,809 | ) | | (39,223 | ) | | (164,750 | ) | | 186,193 |
|
Other revenue | 77,431 |
| | 67,261 |
| | 277,692 |
| | 334,456 |
|
Total revenues | 2,828,591 |
| | 2,697,413 |
| | 10,418,178 |
| | 10,904,194 |
|
Benefits and expenses: | | | | | | | |
Claims and other policy benefits | 2,015,929 |
| | 1,866,042 |
| | 7,489,382 |
| | 7,406,641 |
|
Interest credited | 105,032 |
| | 103,523 |
| | 336,964 |
| | 451,031 |
|
Policy acquisition costs and other insurance expenses | 300,329 |
| | 290,775 |
| | 1,127,486 |
| | 1,391,433 |
|
Other operating expenses | 158,556 |
| | 166,280 |
| | 554,044 |
| | 538,415 |
|
Interest expense | 35,820 |
| | (9,660 | ) | | 142,863 |
| | 96,700 |
|
Collateral finance and securitization expense | 6,182 |
| | 3,710 |
| | 22,644 |
| | 11,441 |
|
Total benefits and expenses | 2,621,848 |
| | 2,420,670 |
| | 9,673,383 |
| | 9,895,661 |
|
Income before income taxes | 206,743 |
| | 276,743 |
| | 744,795 |
| | 1,008,533 |
|
Provision for income taxes | 43,616 |
| | 85,652 |
| | 242,629 |
| | 324,486 |
|
Net income | $ | 163,127 |
| | $ | 191,091 |
| | $ | 502,166 |
| | $ | 684,047 |
|
# # #
Exhibit 99.2
Financial Supplement
Fourth Quarter 2015
(Unaudited)
|
| | | | |
World Headquarters | | Internet address | | Contacts: |
16600 Swingley Ridge Road | | www.rgare.com | | Jack B. Lay |
Chesterfield, Missouri 63017 U.S.A. | | | | Senior Executive Vice President |
| | | | and Chief Financial Officer |
| | | | Phone: (636) 736-7000 |
| | | | e-mail: jlay@rgare.com |
| | | | |
| | | | Jeff Hopson |
| | | | Sr. Vice President, Investor Relations |
| | | | Phone: (636) 736-2068 |
| | | | e-mail: jhopson@rgare.com |
|
| | | | | | |
Current Ratings |
| | | |
| | Standard & Poor’s | | A.M. Best | | Moody’s |
Financial Strength Ratings | | | | | | |
RGA Reinsurance Company | | AA- | | A+ | | A1 |
RGA Life Reinsurance Company of Canada | | AA- | | A+ | | NR |
RGA International Reinsurance Company Limited | | AA- | | NR | | NR |
RGA Global Reinsurance Company Limited | | AA- | | NR | | NR |
RGA Reinsurance Company of Australia Limited | | AA- | | NR | | NR |
RGA Americas Reinsurance Company, Ltd. | | AA- | | A+ | | NR |
RGA Atlantic Reinsurance Company Ltd. | | NR | | A+ | | NR |
Senior Debt Ratings | | | | | | |
Reinsurance Group of America, Incorporated | | A- | | a- | | Baa1 |
Our common stock is traded on the New York Stock Exchange under the symbol “RGA.”
Reinsurance Group of America, Incorporated
Financial Supplement
4th Quarter 2015
Table of Contents
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Segment Pre-tax Operating Income Summaries and Reconciliations to U.S. GAAP | |
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Investments | |
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Reinsurance Group of America, Incorporated
Financial Supplement
This Financial Supplement is for information purposes only and includes unaudited figures. This report should be read in conjunction with documents filed by Reinsurance Group of America, Incorporated ("RGA") with the SEC.
Non-GAAP Disclosures
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. A reconciliation of income before income taxes of the operating segments to pre-tax operating income (loss) is presented herein.
RGA evaluates its stockholder equity position excluding the impact of Accumulated Other Comprehensive Income (“AOCI”) since the net unrealized gains or losses included in AOCI primarily relate to changes in interest rates, credit spreads on its investment securities and foreign currency fluctuations that are not permanent and can fluctuate significantly from period to period.
Additionally, RGA uses a non-GAAP financial measure called operating return on equity, which is calculated as operating income divided by average shareholders’
equity excluding AOCI.
Reinsurance Group of America, Incorporated
Financial Supplement
2016 Guidance
On an annual basis, the company provides financial guidance based upon the intermediate term rather than giving a range of annual earnings per share for an upcoming year. This better reflects the long-term nature of the business and the difficulty in predicting the timing of shorter-term or periodic events such as block transactions. The company accepts risks over very long periods of time, up to 30 years or longer in some cases. While more predictable over longer-term horizons, RGA’s business is subject to inherent short-term volatility.
Over the intermediate term, the company targets growth in operating income per share in the 5 to 8 percent range, and operating return on equity of 10 to 12 percent. It is presumed that there are no significant changes in the investment environment from current levels, and the company will deploy $300 million to $400 million of excess capital, on average, annually. These guidance ranges are based upon “normalized” results. The operating EPS target range is unchanged from a year ago, while the operating return on equity range was widened slightly from 11 to 12 percent. The wider return on equity range better reflects the potential for variability in the results due to influences from macro issues, notably foreign exchange and interest rates.
Additionally, the company has faced significant macro headwinds in terms of weak foreign currencies and sustained low interest rates over the past several years, and assumes this will continue to be the case for the foreseeable future. However, management believes that the EPS range is appropriate and expects the combination of organic growth, execution of block transactions and efficient capital management to mitigate those headwinds and allow the company to reach its financial targets.
Reinsurance Group of America, Incorporated
PRIOR PERIOD RECLASSIFICATIONS
Effective January 1, 2015, the Company further segmented the Canada; Europe, Middle East and Africa; and Asia Pacific segments into traditional and non-traditional businesses to reflect the expanded product offerings within its geographic-based segments. The prior-period presentation has been adjusted to conform to the new segment reporting structure.
Effective December 2015, prior period balances have been updated to conform with current period presentation for the adoption of the accounting standard update "Simplifying the Presentation of Debt Issuance Costs".
Reinsurance Group of America, Incorporated Financial Highlights |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to Date |
(USD thousands, except inforce & per share data) | | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
| | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Net premiums | | $ | 2,328,501 |
| | $ | 2,089,345 |
| | $ | 2,129,043 |
| | $ | 2,023,852 |
| | $ | 2,217,772 |
| | $ | 110,729 |
| | | | $ | 8,570,741 |
| | $ | 8,669,854 |
| | $ | (99,113 | ) |
Net income | | 163,127 |
| | 83,534 |
| | 130,391 |
| | 125,114 |
| | 191,091 |
| | (27,964 | ) | | | | 502,166 |
| | 684,047 |
| | (181,881 | ) |
Operating income | | 187,950 |
| | 127,086 |
| | 130,270 |
| | 121,778 |
| | 208,288 |
| | (20,338 | ) | | | | 567,084 |
| | 638,049 |
| | (70,965 | ) |
Operating return on equity (ex AOCI)- | | | | | | | | | | | | | | | | | | | | |
annualized | | 14.0 | % | | 9.5 | % | | 9.8 | % | | 9.2 | % | | 15.8 | % | | (1.8 | )% | | | | | | | | |
trailing 12 months | | 10.6 | % | | 11.1 | % | | 11.8 | % | | 12.5 | % | | 12.5 | % | | (1.9 | )% | | | | | | | | |
Total assets (1) | | 50,383,152 |
| | 47,581,959 |
| | 47,435,240 |
| | 44,666,938 |
| | 44,654,300 |
| | 5,728,852 |
| | | | | | | | |
Assumed Life Reinsurance in Force (in billions) | | | | | | | | | | | | | | | | | | | | |
U.S. and Latin America Traditional | | $ | 1,594.3 |
| | $ | 1,476.1 |
| | $ | 1,475.6 |
| | $ | 1,479.4 |
| | $ | 1,483.9 |
| | $ | 110.4 |
| | | | | | | | |
U.S. and Latin America Non-Traditional | | 2.1 |
| | 2.2 |
| | 2.1 |
| | 2.1 |
| | 1.4 |
| | 0.7 |
| | | | | | | | |
Canada Traditional | | 333.0 |
| | 343.0 |
| | 360.7 |
| | 349.0 |
| | 402.8 |
| | (69.8 | ) | | | | | | | | |
Europe, Middle East and Africa Traditional | | 602.7 |
| | 566.0 |
| | 573.9 |
| | 553.3 |
| | 561.1 |
| | 41.6 |
| | | | | | | | |
Asia Pacific Traditional | | 462.7 |
| | 461.8 |
| | 512.7 |
| | 460.6 |
| | 494.0 |
| | (31.3 | ) | | | | | | | | |
Asia Pacific Non-Traditional | | 0.3 |
| | 0.3 |
| | 0.3 |
| | 0.3 |
| | 0.3 |
| | — |
| | | | | | | | |
Total Life Reinsurance in Force | | $ | 2,995.1 |
| | $ | 2,849.4 |
| | $ | 2,925.3 |
| | $ | 2,844.7 |
| | $ | 2,943.5 |
| | $ | 51.6 |
| | | |
|
| |
|
| |
|
|
Assumed New Business Production (in billions) | | | | | | | | | | | | | | | | | | | | |
U.S. and Latin America Traditional | | $ | 142.1 |
| (2) | $ | 26.4 |
| | $ | 15.7 |
| | $ | 19.7 |
| | $ | 118.1 |
| (2) | $ | 24.0 |
| | | | $ | 203.9 |
| | $ | 176.9 |
| | $ | 27.0 |
|
Canada Traditional | | 8.7 |
| | 9.1 |
| | 11.1 |
| | 9.7 |
| | 13.9 |
| | (5.2 | ) | | | | 38.6 |
| | 48.3 |
| | (9.7 | ) |
Europe, Middle East and Africa Traditional | | 66.0 |
| (2) | 24.7 |
| | 32.3 |
| | 48.6 |
| | 38.5 |
| | 27.5 |
| | | | 171.6 |
| | 175.2 |
| | (3.6 | ) |
Asia Pacific Traditional | | 12.1 |
| | 24.4 |
| | 12.6 |
| | 27.8 |
| | 22.4 |
| | (10.3 | ) | | | | 76.9 |
| | 81.6 |
| | (4.7 | ) |
Total New Business Production | | $ | 228.9 |
| | $ | 84.6 |
| | $ | 71.7 |
| | $ | 105.8 |
| | $ | 192.9 |
| | $ | 36.0 |
| | | | $ | 491.0 |
| | $ | 482.0 |
| | $ | 9.0 |
|
Per Share and Shares Data | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 2.49 |
| | $ | 1.26 |
| | $ | 1.97 |
| | $ | 1.84 |
| | $ | 2.78 |
| | $ | (0.29 | ) | | | | $ | 7.55 |
| | $ | 9.88 |
| | $ | (2.33 | ) |
Operating income | | $ | 2.87 |
| | $ | 1.92 |
| | $ | 1.96 |
| | $ | 1.79 |
| | $ | 3.03 |
| | $ | (0.16 | ) | | | | $ | 8.52 |
| | $ | 9.21 |
| | $ | (0.69 | ) |
Diluted earnings per share | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 2.46 |
| | $ | 1.25 |
| | $ | 1.94 |
| | $ | 1.81 |
| | $ | 2.75 |
| | $ | (0.29 | ) | | | | $ | 7.46 |
| | $ | 9.78 |
| | $ | (2.32 | ) |
Operating income | | $ | 2.84 |
| | $ | 1.90 |
| | $ | 1.94 |
| | $ | 1.77 |
| | $ | 2.99 |
| | $ | (0.15 | ) | | | | $ | 8.43 |
| | $ | 9.12 |
| | $ | (0.69 | ) |
| | | | | | | | | | | | | | | | | | | | |
Wgt. average common shares outstanding | | | | | | | | | | | | | | | | | | | | |
(basic) | | 65,535 |
| | 66,205 |
| | 66,351 |
| | 68,141 |
| | 68,718 |
| | (3,183 | ) | | | | 66,553 |
| | 69,248 |
| | (2,695 | ) |
(diluted) | | 66,247 |
| | 66,882 |
| | 67,120 |
| | 68,942 |
| | 69,550 |
| | (3,303 | ) | | | | 67,292 |
| | 69,962 |
| | (2,670 | ) |
| | | | | | | | | | | | | | | | | | | | |
Common shares issued | | 79,138 |
| | 79,138 |
| | 79,138 |
| | 79,138 |
| | 79,138 |
| | — |
| | | | 79,138 |
| | 79,138 |
| | — |
|
Treasury shares | | 13,933 |
| | 13,389 |
| | 12,716 |
| | 12,699 |
| | 10,365 |
| | 3,568 |
| | | | 13,933 |
| | 10,365 |
| | 3,568 |
|
Common shares outstanding | | 65,205 |
| | 65,749 |
| | 66,422 |
| | 66,439 |
| | 68,773 |
| | (3,568 | ) | | | | 65,205 |
| | 68,773 |
| | (3,568 | ) |
| | | | | | | | | | | | | | | | | | | | |
Book value per share | | $ | 94.09 |
| | $ | 94.92 |
| | $ | 97.61 |
| | $ | 107.62 |
| | $ | 102.13 |
| | | | | | | | | | |
Per share effect of accumulated other | | | | | | | | | | | | | | | | | | | | |
comprehensive income (AOCI) | | $ | 10.86 |
| | $ | 13.78 |
| | $ | 17.31 |
| | $ | 28.36 |
| | $ | 24.10 |
| | | | | | | | | | |
Book value per share, excluding AOCI | | $ | 83.23 |
| | $ | 81.14 |
| | $ | 80.30 |
| | $ | 79.26 |
| | $ | 78.03 |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Shareholder dividends paid | | $ | 24,269.1 |
| | $ | 24,592.1 |
| | $ | 21,850.5 |
| | $ | 22,668.8 |
| | $ | 22,669.4 |
| | $ | 1,599.7 |
| | | | $ | 93,380.5 |
| | $ | 87,256.2 |
| | $ | 6,124.3 |
|
(1) Prior period balances have been updated to conform with current period presentation for the adoption of the accounting standard update "Simplifying the Presentation of Debt Issuance Costs". |
(2) Includes the effect of significant inforce transactions. |
Reinsurance Group of America, Incorporated Consolidated GAAP Income Statement (incl. Operating Income Reconciliations) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr | | | | Year-to Date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | vs. PY | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | Quarter | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 2,328,501 |
| | $ | 2,089,345 |
| | $ | 2,129,043 |
| | $ | 2,023,852 |
| | $ | 2,217,772 |
| | $ | 110,729 |
| | | | $ | 8,570,741 |
| | $ | 8,669,854 |
| | $ | (99,113 | ) |
Investment income, net of related expenses | | 467,468 |
| | 389,597 |
| | 450,539 |
| | 426,891 |
| | 451,603 |
| | 15,865 |
| | | | 1,734,495 |
| | 1,713,691 |
| | 20,804 |
|
Investment related gains (losses), net | | | | | | | | | | | | | | | | | | | | |
OTTI on fixed maturity securities | | (27,605 | ) | | (23,111 | ) | | (4,137 | ) | | (2,527 | ) | | (6,347 | ) | | (21,258 | ) | | | | (57,380 | ) | | (7,766 | ) | | (49,614 | ) |
Other investment related gains (losses), net | | (17,204 | ) | | (88,235 | ) | | (12,041 | ) | | 10,110 |
| | (32,876 | ) | | 15,672 |
| | | | (107,370 | ) | | 193,959 |
| | (301,329 | ) |
Total investment related gains (losses), net | | (44,809 | ) | | (111,346 | ) | | (16,178 | ) | | 7,583 |
| | (39,223 | ) | | (5,586 | ) | | | | (164,750 | ) | | 186,193 |
| | (350,943 | ) |
Other revenue | | 77,431 |
| | 71,038 |
| | 66,936 |
| | 62,287 |
| | 67,261 |
| | 10,170 |
| | | | 277,692 |
| | 334,456 |
| | (56,764 | ) |
Total revenues | | 2,828,591 |
| | 2,438,634 |
| | 2,630,340 |
| | 2,520,613 |
| | 2,697,413 |
| | 131,178 |
| | | | 10,418,178 |
| | 10,904,194 |
| | (486,016 | ) |
Benefits and expenses: | | | | | | | | | | | |
|
| | | | | | | | |
Claims and other policy benefits | | 2,015,929 |
| | 1,831,819 |
| | 1,866,183 |
| | 1,775,451 |
| | 1,866,042 |
| | 149,887 |
| | | | 7,489,382 |
| | 7,406,641 |
| | 82,741 |
|
Interest credited | | 105,032 |
| | 34,008 |
| | 77,246 |
| | 120,678 |
| | 103,523 |
| | 1,509 |
| | | | 336,964 |
| | 451,031 |
| | (114,067 | ) |
Policy acquisition costs and other insurance expenses | | 300,329 |
| | 249,702 |
| | 300,412 |
| | 277,043 |
| | 290,775 |
| | 9,554 |
| | | | 1,127,486 |
| | 1,391,433 |
| | (263,947 | ) |
Other operating expenses | | 158,556 |
| | 142,270 |
| | 131,600 |
| | 121,618 |
| | 166,280 |
| | (7,724 | ) | | | | 554,044 |
| | 538,415 |
| | 15,629 |
|
Interest expense | | 35,820 |
| | 35,565 |
| | 35,851 |
| | 35,627 |
| | (9,660 | ) | | 45,480 |
| | | | 142,863 |
| | 96,700 |
| | 46,163 |
|
Collateral finance and securitization expense | | 6,182 |
| | 5,133 |
| | 5,258 |
| | 6,071 |
| | 3,710 |
| | 2,472 |
| | | | 22,644 |
| | 11,441 |
| | 11,203 |
|
Total benefits and expenses | | 2,621,848 |
| | 2,298,497 |
| | 2,416,550 |
| | 2,336,488 |
| | 2,420,670 |
| | 201,178 |
| | | | 9,673,383 |
| | 9,895,661 |
| | (222,278 | ) |
Income before income taxes | | 206,743 |
| | 140,137 |
| | 213,790 |
| | 184,125 |
| | 276,743 |
| | (70,000 | ) | | | | 744,795 |
| | 1,008,533 |
| | (263,738 | ) |
Income tax expense | | 43,616 |
| | 56,603 |
| | 83,399 |
| | 59,011 |
| | 85,652 |
| | (42,036 | ) | | | | 242,629 |
| | 324,486 |
| | (81,857 | ) |
Net income | | $ | 163,127 |
| | $ | 83,534 |
| | $ | 130,391 |
| | $ | 125,114 |
| | $ | 191,091 |
| | $ | (27,964 | ) | | | | $ | 502,166 |
| | $ | 684,047 |
| | $ | (181,881 | ) |
Pre-tax Operating Income Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | 206,743 |
| | 140,137 |
| | 213,790 |
| | 184,125 |
| | 276,743 |
| | (70,000 | ) | | | | 744,795 |
| | 1,008,533 |
| | (263,738 | ) |
Investment and derivative losses (gains)— | | | | | | | | | | | | | | | | | | | | |
non-operating (1) | | 64,034 |
| | (35,028 | ) | | 41,526 |
| | (20,946 | ) | | (22,453 | ) | | 86,487 |
| | | | 49,586 |
| | (95,308 | ) | | 144,894 |
|
Change in value of modified coinsurance and | | | | | | | | | | | | | | | | | | | | |
funds withheld embedded derivatives (1) | | 27,201 |
| | 46,169 |
| | 23,098 |
| | 2,325 |
| | 14,523 |
| | 12,678 |
| | | | 98,793 |
| | (198,365 | ) | | 297,158 |
|
GMXB embedded derivatives (1) | | (36,437 | ) | | 95,373 |
| | (50,878 | ) | | 25,133 |
| | 52,901 |
| | (89,338 | ) | | | | 33,191 |
| | 129,224 |
| | (96,033 | ) |
Funds withheld losses (gains)—investment income | | 246 |
| | (2,212 | ) | | (3,002 | ) | | (11,402 | ) | | (1,371 | ) | | 1,617 |
| | | | (16,370 | ) | | (13,215 | ) | | (3,155 | ) |
EIA embedded derivatives—interest credited | | (1,412 | ) | | (10,995 | ) | | (10,488 | ) | | 10,313 |
| | (362 | ) | | (1,050 | ) | | | | (12,582 | ) | | (421 | ) | | (12,161 | ) |
DAC offset, net | | (13,142 | ) | | (25,945 | ) | | (1,187 | ) | | (8,951 | ) | | (15,253 | ) | | 2,111 |
| | | | (49,225 | ) | | 111,879 |
| | (161,104 | ) |
Non-investment derivatives | | (120 | ) | | (383 | ) | | 493 |
| | (108 | ) | | (472 | ) | | 352 |
| | | | (118 | ) | | (444 | ) | | 326 |
|
Operating Income Before Income Taxes | | $ | 247,113 |
| | $ | 207,116 |
| | $ | 213,352 |
| | $ | 180,489 |
| | $ | 304,256 |
| | $ | (57,143 | ) | | | | $ | 848,070 |
| | $ | 941,883 |
| | $ | (93,813 | ) |
After-tax Operating Income Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Net Income | | 163,127 |
| | 83,534 |
| | 130,391 |
| | 125,114 |
| | 191,091 |
| | (27,964 | ) | | | | 502,166 |
| | 684,047 |
| | (181,881 | ) |
Investment and derivative losses (gains)— | | | | | | | | | | | | | | | | | | | |
|
|
non-operating (1) | | 40,203 |
| | (22,750 | ) | | 27,152 |
| | (14,585 | ) | | (15,281 | ) | | 55,484 |
| | | | 30,020 |
| | (64,625 | ) | | 94,645 |
|
Change in value of modified coinsurance | | | | | | | | | | | | | | | | | | | | |
and funds withheld embedded derivatives (1) | | 17,680 |
| | 30,010 |
| | 15,014 |
| | 1,511 |
| | 9,440 |
| | 8,240 |
| | | | 64,215 |
| | (128,937 | ) | | 193,152 |
|
GMXB embedded derivatives (1) | | (23,684 | ) | | 61,992 |
| | (33,070 | ) | | 16,336 |
| | 34,386 |
| | (58,070 | ) | | | | 21,574 |
| | 83,996 |
| | (62,422 | ) |
Funds withheld losses (gains)—investment income | | 161 |
| | (1,438 | ) | | (1,951 | ) | | (7,412 | ) | | (891 | ) | | 1,052 |
| | | | (10,640 | ) | | (8,590 | ) | | (2,050 | ) |
EIA embedded derivatives—interest credited | | (917 | ) | | (7,147 | ) | | (6,817 | ) | | 6,703 |
| | (236 | ) | | (681 | ) | | | | (8,178 | ) | | (274 | ) | | (7,904 | ) |
DAC offset, net | | (8,542 | ) | | (16,865 | ) | | (770 | ) | | (5,819 | ) | | (9,914 | ) | | 1,372 |
| | | | (31,996 | ) | | 72,721 |
| | (104,717 | ) |
Non-investment derivatives | | (78 | ) | | (250 | ) | | 321 |
| | (70 | ) | | (307 | ) | | 229 |
| | | | (77 | ) | | (289 | ) | | 212 |
|
Operating Income | | $ | 187,950 |
| | $ | 127,086 |
| | $ | 130,270 |
| | $ | 121,778 |
| | $ | 208,288 |
| | $ | (20,338 | ) | | | | $ | 567,084 |
| | $ | 638,049 |
| | $ | (70,965 | ) |
| | | | | | | | | | | | | | | | | | | | |
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement
|
Reinsurance Group of America, Incorporated Consolidated Operating Income Statement |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-Date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands, except per share data) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 2,328,501 |
| | $ | 2,089,345 |
| | $ | 2,129,043 |
| | $ | 2,023,852 |
| | $ | 2,217,772 |
| | $ | 110,729 |
| | | | $ | 8,570,741 |
| | $ | 8,669,854 |
| | $ | (99,113 | ) |
Investment income, net of related expenses | | 467,714 |
| | 387,385 |
| | 447,537 |
| | 415,489 |
| | 450,232 |
| | 17,482 |
| | | | 1,718,125 |
| | 1,700,476 |
| | 17,649 |
|
Investment related gains (losses), net | | 9,989 |
| | (4,832 | ) | | (2,432 | ) | | 14,095 |
| | 5,748 |
| | 4,241 |
| | | | 16,820 |
| | 21,744 |
| | (4,924 | ) |
Other revenue | | 77,311 |
| | 70,655 |
| | 67,429 |
| | 62,179 |
| | 66,789 |
| | 10,522 |
| | | | 277,574 |
| | 334,012 |
| | (56,438 | ) |
Total revenues | | 2,883,515 |
| | 2,542,553 |
| | 2,641,577 |
| | 2,515,615 |
| | 2,740,541 |
| | 142,974 |
| | | | 10,583,260 |
| | 10,726,086 |
| | (142,826 | ) |
| | | | | | | | | | | | | | | | | | | | |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 2,015,929 |
| | 1,831,819 |
| | 1,866,183 |
| | 1,775,451 |
| | 1,866,042 |
| | 149,887 |
| | | | 7,489,382 |
| | 7,406,641 |
| | 82,741 |
|
Interest credited | | 106,444 |
| | 45,003 |
| | 87,734 |
| | 110,365 |
| | 103,885 |
| | 2,559 |
| | | | 349,546 |
| | 451,452 |
| | (101,906 | ) |
Policy acquisition costs and other insurance expenses | | 313,471 |
| | 275,647 |
| | 301,599 |
| | 285,994 |
| | 306,028 |
| | 7,443 |
| | | | 1,176,711 |
| | 1,279,554 |
| | (102,843 | ) |
Other operating expenses | | 158,556 |
| | 142,270 |
| | 131,600 |
| | 121,618 |
| | 166,280 |
| | (7,724 | ) | | | | 554,044 |
| | 538,415 |
| | 15,629 |
|
Interest expense | | 35,820 |
| | 35,565 |
| | 35,851 |
| | 35,627 |
| | (9,660 | ) | | 45,480 |
| | | | 142,863 |
| | 96,700 |
| | 46,163 |
|
Collateral finance and securitization expense | | 6,182 |
| | 5,133 |
| | 5,258 |
| | 6,071 |
| | 3,710 |
| | 2,472 |
| | | | 22,644 |
| | 11,441 |
| | 11,203 |
|
Total benefits and expenses | | 2,636,402 |
| | 2,335,437 |
| | 2,428,225 |
| | 2,335,126 |
| | 2,436,285 |
| | 200,117 |
| | | | 9,735,190 |
| | 9,784,203 |
| | (49,013 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 247,113 |
| | 207,116 |
| | 213,352 |
| | 180,489 |
| | 304,256 |
| | (57,143 | ) | | | | 848,070 |
| | 941,883 |
| | (93,813 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income tax expense | | 59,163 |
| | 80,030 |
| | 83,082 |
| | 58,711 |
| | 95,968 |
| | (36,805 | ) | | | | 280,986 |
| | 303,834 |
| | (22,848 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 187,950 |
| | $ | 127,086 |
| | $ | 130,270 |
| | $ | 121,778 |
| | $ | 208,288 |
| | $ | (20,338 | ) | | | | $ | 567,084 |
| | $ | 638,049 |
| | $ | (70,965 | ) |
| | | | | | | | | | | | | | | | | | | | |
Wgt. Average Common Shares Outstanding (Diluted) | | 66,247 |
| | 66,882 |
| | 67,120 |
| | 68,942 |
| | 69,550 |
| | (3,303) |
| | | | 67,292 |
| | 69,962 |
| | (2,670) |
|
| | | | | | | | | | | | | | | | | | | | |
Diluted Earnings Per Share—Operating Income | | $ | 2.84 |
| | $ | 1.90 |
| | $ | 1.94 |
| | $ | 1.77 |
| | $ | 2.99 |
| | $ | (0.15 | ) | | | | $ | 8.43 |
| | $ | 9.12 |
| | $ | (0.69 | ) |
| | | | | | | | | | | | | | | | | | | | |
Foreign currency effect on (1): | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | (106,556 | ) | | $ | (145,047 | ) | | $ | (121,287 | ) | | $ | (96,024 | ) | | $ | (61,093 | ) | | $ | (45,463 | ) | | | | $ | (468,914 | ) | | $ | (110,376 | ) | | $ | (358,538 | ) |
Operating income before income taxes | | $ | (18,726 | ) | | $ | (15,526 | ) | | $ | (8,700 | ) | | $ | (11,833 | ) | | $ | (9,276 | ) | | $ | (9,450 | ) | | | | $ | (54,785 | ) | | $ | (18,706 | ) | | $ | (36,079 | ) |
| | | | | | | | | | | | | | | | | | | | |
(1) Compared to comparable prior year period |
Reinsurance Group of America, Incorporated Consolidated Balance Sheets |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 |
Assets | | | | | | | | | | |
Fixed maturity securities, available-for-sale | | $ | 29,642,905 |
| | $ | 27,411,788 |
| | $ | 28,063,975 |
| | $ | 25,801,223 |
| | $ | 25,480,972 |
|
Mortgage loans on real estate | | 3,129,951 |
| | 3,170,002 |
| | 3,073,313 |
| | 2,913,486 |
| | 2,712,238 |
|
Policy loans | | 1,468,796 |
| | 1,444,009 |
| | 1,438,156 |
| | 1,284,085 |
| | 1,284,284 |
|
Funds withheld at interest | | 5,880,203 |
| | 5,675,174 |
| | 5,840,076 |
| | 5,841,554 |
| | 5,922,561 |
|
Short-term investments | | 558,284 |
| | 58,200 |
| | 76,118 |
| | 89,136 |
| | 97,694 |
|
Other invested assets | | 1,298,120 |
| | 1,187,504 |
| | 1,110,107 |
| | 1,243,033 |
| | 1,198,319 |
|
Total investments | | 41,978,259 |
| | 38,946,677 |
| | 39,601,745 |
| | 37,172,517 |
| | 36,696,068 |
|
Cash and cash equivalents | | 1,525,275 |
| | 1,747,692 |
| | 1,335,661 |
| | 1,083,179 |
| | 1,645,669 |
|
Accrued investment income | | 339,452 |
| | 342,088 |
| | 322,069 |
| | 283,665 |
| | 261,096 |
|
Premiums receivable and other reinsurance balances | | 1,797,504 |
| | 1,553,093 |
| | 1,518,208 |
| | 1,509,810 |
| | 1,527,729 |
|
Reinsurance ceded receivables | | 637,859 |
| | 661,185 |
| | 711,463 |
| | 665,797 |
| | 578,206 |
|
Deferred policy acquisition costs | | 3,392,437 |
| | 3,311,086 |
| | 3,299,541 |
| | 3,286,348 |
| | 3,342,575 |
|
Other assets (1) | | 712,366 |
| | 1,020,138 |
| | 646,553 |
| | 665,622 |
| | 602,957 |
|
Total assets (1) | | $ | 50,383,152 |
| | $ | 47,581,959 |
| | $ | 47,435,240 |
| | $ | 44,666,938 |
| | $ | 44,654,300 |
|
| | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | |
Future policy benefits | | $ | 19,612,251 |
| | $ | 16,574,783 |
| | $ | 16,773,035 |
| | $ | 14,152,780 |
| | $ | 14,476,637 |
|
Interest-sensitive contract liabilities | | 13,663,873 |
| | 13,699,896 |
| | 13,516,059 |
| | 12,508,201 |
| | 12,591,497 |
|
Other policy claims and benefits | | 4,094,640 |
| | 3,892,036 |
| | 3,857,610 |
| | 3,822,699 |
| | 3,824,069 |
|
Other reinsurance balances | | 296,899 |
| | 280,093 |
| | 311,388 |
| | 320,950 |
| | 306,915 |
|
Deferred income taxes | | 2,218,328 |
| | 2,285,066 |
| | 2,246,086 |
| | 2,529,733 |
| | 2,365,817 |
|
Other liabilities | | 1,165,071 |
| | 1,405,675 |
| | 1,032,980 |
| | 1,118,645 |
| | 994,230 |
|
Long-term debt (1) | | 2,297,548 |
| | 2,297,592 |
| | 2,297,629 |
| | 2,297,761 |
| | 2,297,704 |
|
Collateral finance and securitization notes (1) | | 899,161 |
| | 905,752 |
| | 917,220 |
| | 766,144 |
| | 773,979 |
|
Total liabilities (1) | | 44,247,771 |
| | 41,340,893 |
| | 40,952,007 |
| | 37,516,913 |
| | 37,630,848 |
|
| | | | | | | | | | |
Stockholders’ Equity: | | | | | | | | | | |
Common stock, at par value | | 791 |
| | 791 |
| | 791 |
| | 791 |
| | 791 |
|
Additional paid-in-capital | | 1,816,142 |
| | 1,812,377 |
| | 1,805,858 |
| | 1,802,774 |
| | 1,798,279 |
|
Retained earnings | | 4,620,303 |
| | 4,482,709 |
| | 4,425,302 |
| | 4,339,028 |
| | 4,239,647 |
|
Treasury stock | | (1,010,139 | ) | | (961,290 | ) | | (898,082 | ) | | (876,804 | ) | | (672,394 | ) |
Accumulated other comprehensive income (AOCI): | | | | | | | | | | |
Accumulated currency translation adjustment, net of income taxes | | (181,151 | ) | | (119,493 | ) | | (13,989 | ) | | (35,924 | ) | | 81,847 |
|
Unrealized appreciation of securities, net of income taxes | | 935,697 |
| | 1,071,990 |
| | 1,211,056 |
| | 1,968,697 |
| | 1,624,773 |
|
Pension and postretirement benefits, net of income taxes | | (46,262 | ) | | (46,018 | ) | | (47,703 | ) | | (48,537 | ) | | (49,491 | ) |
Total stockholders’ equity | | 6,135,381 |
| | 6,241,066 |
| | 6,483,233 |
| | 7,150,025 |
| | 7,023,452 |
|
Total liabilities and stockholders’ equity (1) | | $ | 50,383,152 |
| | $ | 47,581,959 |
| | $ | 47,435,240 |
| | $ | 44,666,938 |
| | $ | 44,654,300 |
|
| | | | | | | | | | |
Total stockholders’ equity, excluding AOCI | | $ | 5,427,097 |
| | $ | 5,334,587 |
| | $ | 5,333,869 |
| | $ | 5,265,789 |
| | $ | 5,366,323 |
|
| | | | | | | | | | |
(1) Prior period balances have been updated to conform with current period presentation for the adoption of the accounting standard update "Simplifying the Presentation of Debt Issuance Costs". |
Reinsurance Group of America, Incorporated U.S. and Latin America Traditional Segment Pre-tax Operating Income |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 1,370,745 |
| | $ | 1,150,936 |
| | $ | 1,170,931 |
| | $ | 1,114,094 |
| | $ | 1,221,862 |
| | $ | 148,883 |
| | | | $ | 4,806,706 |
| | $ | 4,725,505 |
| | $ | 81,201 |
|
Investment income, net of related expenses | | 176,174 |
| | 154,210 |
| | 163,390 |
| | 143,005 |
| | 142,753 |
| | 33,421 |
| | | | 636,779 |
| | 552,805 |
| | 83,974 |
|
Other revenue | | 7,438 |
| | 6,566 |
| | 4,567 |
| | 664 |
| | 1,323 |
| | 6,115 |
| | | | 19,235 |
| | 3,515 |
| | 15,720 |
|
Total revenues | | 1,554,357 |
| | 1,311,712 |
| | 1,338,888 |
| | 1,257,763 |
| | 1,365,938 |
| | 188,419 |
| | | | 5,462,720 |
| | 5,281,825 |
| | 180,895 |
|
| | | | | | | | | | | | | | | | | | | | |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | |
|
Claims and other policy benefits | | 1,235,926 |
| | 1,049,973 |
| | 1,041,390 |
| | 1,039,407 |
| | 1,021,046 |
| | 214,880 |
| | | | 4,366,696 |
| | 4,130,308 |
| | 236,388 |
|
Interest credited | | 21,682 |
| | 20,999 |
| | 21,875 |
| | 12,944 |
| | 13,101 |
| | 8,581 |
| | | | 77,500 |
| | 51,184 |
| | 26,316 |
|
Policy acquisition costs and other insurance expenses | | 187,277 |
| | 158,452 |
| | 169,035 |
| | 158,567 |
| | 168,395 |
| | 18,882 |
| | | | 673,331 |
| | 641,785 |
| | 31,546 |
|
Other operating expenses | | 30,482 |
| | 27,562 |
| | 27,155 |
| | 26,529 |
| | 29,276 |
| | 1,206 |
| | | | 111,728 |
| | 108,346 |
| | 3,382 |
|
Total benefits and expenses | | 1,475,367 |
| | 1,256,986 |
| | 1,259,455 |
| | 1,237,447 |
| | 1,231,818 |
| | 243,549 |
| | | | 5,229,255 |
| | 4,931,623 |
| | 297,632 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 78,990 |
| | 54,726 |
| | 79,433 |
| | 20,316 |
| | 134,120 |
| | (55,130 | ) | | | | 233,465 |
| | 350,202 |
| | (116,737 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | |
|
Operating income before income taxes | | 78,990 |
| | 54,726 |
| | 79,433 |
| | 20,316 |
| | 134,120 |
| | (55,130 | ) | | | | 233,465 |
| | 350,202 |
| | (116,737 | ) |
Investment and derivative (losses) gains - non-operating | | 493 |
| | 926 |
| | 3,360 |
| | (2,473 | ) | | (5,268 | ) | | 5,761 |
| | | | 2,306 |
| | 1,443 |
| | 863 |
|
Income before income taxes | | $ | 79,483 |
| | $ | 55,652 |
| | $ | 82,793 |
| | $ | 17,843 |
| | $ | 128,852 |
| | $ | (49,369 | ) | | | | $ | 235,771 |
| | $ | 351,645 |
| | $ | (115,874 | ) |
| | | | | | | | | | | | | | | | | | | | |
Loss and Expense Ratios: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 90.2 | % | | 91.2 | % | | 88.9 | % | | 93.3 | % | | 83.6 | % | | 6.6 | % | | | | 90.8 | % | | 87.4 | % | | 3.4 | % |
Policy acquisition costs and other insurance expenses | | 13.7 | % | | 13.8 | % | | 14.4 | % | | 14.2 | % | | 13.8 | % | | (0.1 | )% | | | | 14.0 | % | | 13.6 | % | | 0.4 | % |
Other operating expenses | | 2.2 | % | | 2.4 | % | | 2.3 | % | | 2.4 | % | | 2.4 | % | | (0.2 | )% | | | | 2.3 | % | | 2.3 | % | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Reinsurance Group of America, Incorporated U.S. and Latin America Non-Traditional Segment—Asset Intensive Reinsurance Pre-tax Operating Income |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 6,018 |
| | $ | 5,177 |
| | $ | 5,941 |
| | $ | 5,041 |
| | $ | 4,747 |
| | $ | 1,271 |
| | | | $ | 22,177 |
| | $ | 20,079 |
| | $ | 2,098 |
|
Investment income, net of related expenses | | 153,504 |
| | 103,052 |
| | 152,616 |
| | 141,470 |
| | 155,557 |
| | (2,053 | ) | | | | 550,642 |
| | 628,711 |
| | (78,069 | ) |
Investment related gains (losses), net | | (1 | ) | | 1 |
| | — |
| | — |
| | 1 |
| | (2 | ) | | | | — |
| | — |
| | — |
|
Other revenue | | 23,238 |
| | 28,973 |
| | 26,634 |
| | 26,544 |
| | 28,436 |
| | (5,198 | ) | | | | 105,389 |
| | 115,032 |
| | (9,643 | ) |
Total revenues | | 182,759 |
| | 137,203 |
| | 185,191 |
| | 173,055 |
| | 188,741 |
| | (5,982 | ) | | | | 678,208 |
| | 763,822 |
| | (85,614 | ) |
| | | | | | | | | | | | | | | | | | | | |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 22,605 |
| | 16,832 |
| | 19,983 |
| | 6,726 |
| | 5,289 |
| | 17,316 |
| | | | 66,146 |
| | 19,848 |
| | 46,298 |
|
Interest credited | | 73,168 |
| | 29,530 |
| | 69,530 |
| | 84,672 |
| | 86,294 |
| | (13,126 | ) | | | | 256,900 |
| | 382,960 |
| | (126,060 | ) |
Policy acquisition costs and other insurance expenses | | 33,099 |
| | 30,718 |
| | 34,163 |
| | 37,005 |
| | 36,380 |
| | (3,281 | ) | | | | 134,985 |
| | 145,110 |
| | (10,125 | ) |
Other operating expenses | | 6,291 |
| | 4,893 |
| | 5,113 |
| | 4,318 |
| | 4,764 |
| | 1,527 |
| | | | 20,615 |
| | 16,882 |
| | 3,733 |
|
Total benefits and expenses | | 135,163 |
| | 81,973 |
| | 128,789 |
| | 132,721 |
| | 132,727 |
| | 2,436 |
| | | | 478,646 |
| | 564,800 |
| | (86,154 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 47,596 |
| | 55,230 |
| | 56,402 |
| | 40,334 |
| | 56,014 |
| | (8,418 | ) | | | | 199,562 |
| | 199,022 |
| | 540 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 47,596 |
| | 55,230 |
| | 56,402 |
| | 40,334 |
| | 56,014 |
| | (8,418 | ) | | | | 199,562 |
| | 199,022 |
| | 540 |
|
Investment and derivative gains (losses) - non-operating (1) | | (39,757 | ) | | 73,476 |
| | (39,497 | ) | | 21,787 |
| | 28,086 |
| | (67,843 | ) | | | | 16,009 |
| | 79,799 |
| | (63,790 | ) |
Change in value of modified coinsurance and funds withheld embedded derivatives (1) | | (27,897 | ) | | (47,094 | ) | | (26,456 | ) | | 147 |
| | (13,490 | ) | | (14,407 | ) | | | | (101,300 | ) | | 201,464 |
| | (302,764 | ) |
GMXB embedded derivatives (1) | | 36,437 |
| | (95,373 | ) | | 50,878 |
| | (25,133 | ) | | (52,901 | ) | | 89,338 |
| | | | (33,191 | ) | | (129,224 | ) | | 96,033 |
|
Funds withheld gains (losses) - investment income | | (59 | ) | | 1,003 |
| | 2,748 |
| | 6,367 |
| | 1,154 |
| | (1,213 | ) | | | | 10,059 |
| | 11,083 |
| | (1,024 | ) |
EIA embedded derivatives - interest credited | | 1,412 |
| | 10,995 |
| | 10,488 |
| | (10,313 | ) | | 362 |
| | 1,050 |
| | | | 12,582 |
| | 421 |
| | 12,161 |
|
DAC offset, net | | 13,142 |
| | 25,945 |
| | 1,187 |
| | 8,951 |
| | 15,253 |
| | (2,111 | ) | | | | 49,225 |
| | (111,879 | ) | | 161,104 |
|
Income before income taxes | | $ | 30,874 |
| | $ | 24,182 |
| | $ | 55,750 |
| | $ | 42,140 |
| | $ | 34,478 |
| | $ | (3,604 | ) | | | | $ | 152,946 |
| | $ | 250,686 |
| | $ | (97,740 | ) |
| | | | | | | | | | | | | | | | | | | | |
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement
|
| | | | | | | | | | | | | | | | | | | | |
Reinsurance Group of America, Incorporated U.S. and Latin America Non-Traditional Segment—Asset Intensive Reinsurance Pre-tax Operating Income (Cont’d)
|
| | | | | | | | | | | | | | | | | | | | |
| | |
| | Three Months Ended |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, |
(USD millions) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 |
Annuity account values: | | | | | | | | | | |
| | | | | | | | | | |
Fixed annuities (deferred) | | $ | 4,843 |
| | $ | 4,883 |
| | $ | 5,004 |
| | $ | 4,779 |
| | $ | 4,859 |
|
| | | | | | | | | | |
Net interest spread (fixed annuities): | | 2.7 | % | | 2.5 | % | | 2.5 | % | | 2.3 | % | | 3.5 | % |
| | | | | | | | | | |
Equity-indexed annuities | | $ | 4,509 |
| | $ | 4,536 |
| | $ | 4,622 |
| | $ | 4,666 |
| | $ | 4,695 |
|
| | | | | | | | | | |
Variable annuities: | | | | | | | | | | |
No riders | | $ | 782 |
| | $ | 791 |
| | $ | 843 |
| | $ | 864 |
| | $ | 881 |
|
GMDB only | | 62 |
| | 63 |
| | 69 |
| | 71 |
| | 75 |
|
GMIB only | | 5 |
| | 5 |
| | 5 |
| | 5 |
| | 5 |
|
GMAB only | | 33 |
| | 33 |
| | 38 |
| | 41 |
| | 44 |
|
GMWB only | | 1,425 |
| | 1,426 |
| | 1,540 |
| | 1,600 |
| | 1,636 |
|
GMDB / WB | | 359 |
| | 361 |
| | 391 |
| | 410 |
| | 427 |
|
Other | | 22 |
| | 22 |
| | 24 |
| | 26 |
| | 27 |
|
Total VA account values | | $ | 2,688 |
| | $ | 2,701 |
| | $ | 2,910 |
| | $ | 3,017 |
| | $ | 3,095 |
|
| | | | | | | | | | |
Fair value of liabilities associated with living benefit riders | | $ | 192 |
| | $ | 229 |
| | $ | 134 |
| | $ | 184 |
| | $ | 159 |
|
| | | | | | | | | | |
Interest-sensitive contract liabilities associated with: | | | | | | | | | | |
| | | | | | | | | | |
Guaranteed investment contracts | | $ | 322 |
| | $ | 313 |
| | $ | 325 |
| | $ | 336 |
| | $ | 336 |
|
| | | | | | | | | | |
Bank-owned life insurance (BOLI) | | $ | 559 |
| | $ | 556 |
| | $ | 554 |
| | $ | 551 |
| | $ | 548 |
|
| | | | | | | | | | |
Other asset-intensive business | | $ | 66 |
| | $ | 67 |
| | $ | 67 |
| | $ | 68 |
| | $ | 69 |
|
| | | | | | | | | | |
Future policy benefits associated with: | | | | | | | | | | |
| | | | | | | | | | |
Payout annuities | | $ | 1,960 |
| | $ | 1,919 |
| | $ | 1,952 |
| | $ | — |
| | $ | — |
|
Reinsurance Group of America, Incorporated U.S. and Latin America Non-Traditional Segment—Financial Reinsurance Pre-tax Operating Income |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Investment income, net of related expenses | | $ | 1,702 |
| | $ | 1,438 |
| | $ | 1,194 |
| | $ | 1,145 |
| | $ | 1,155 |
| | $ | 547 |
| | | | $ | 5,479 |
| | $ | 4,491 |
| | $ | 988 |
|
Other revenue | | 19,133 |
| | 16,446 |
| | 17,717 |
| | 15,305 |
| | 18,363 |
| | 770 |
| | | | 68,601 |
| | 82,819 |
| | (14,218 | ) |
Total revenues | | 20,835 |
| | 17,884 |
| | 18,911 |
| | 16,450 |
| | 19,518 |
| | 1,317 |
| | | | 74,080 |
| | 87,310 |
| | (13,230 | ) |
| | | | | | | | | | | |
| | | | | | | | |
Benefits and expenses: | | | | | | | | | | | |
| | | | | | | | |
Policy acquisition costs and other insurance expenses | | 2,720 |
| | 2,535 |
| | 2,522 |
| | 2,416 |
| | 4,112 |
| | (1,392 | ) | | | | 10,193 |
| | 25,256 |
| | (15,063 | ) |
Other operating expenses | | 2,179 |
| | 3,276 |
| | 1,746 |
| | 1,669 |
| | 2,876 |
| | (697 | ) | | | | 8,870 |
| | 9,685 |
| | (815 | ) |
Total benefits and expenses | | 4,899 |
| | 5,811 |
| | 4,268 |
| | 4,085 |
| | 6,988 |
| | (2,089 | ) | | | | 19,063 |
| | 34,941 |
| | (15,878 | ) |
| | | | | | | | | | | |
|
| | | | | | | | |
Operating income before income taxes | | 15,936 |
| | 12,073 |
| | 14,643 |
| | 12,365 |
| | 12,530 |
| | 3,406 |
| | | | 55,017 |
| | 52,369 |
| | 2,648 |
|
| | | | | | | | | | | |
|
| | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | |
| | | | | | | | |
Operating income before income taxes | | 15,936 |
| | 12,073 |
| | 14,643 |
| | 12,365 |
| | 12,530 |
| | 3,406 |
| | | | 55,017 |
| | 52,369 |
| | 2,648 |
|
Investment and derivative gains (losses) - non-operating | | — |
| | — |
| | — |
| | — |
| | (162 | ) | | 162 |
| | | | — |
| | (111 | ) | | 111 |
|
Income before income taxes | | $ | 15,936 |
| | $ | 12,073 |
| | $ | 14,643 |
| | $ | 12,365 |
| | $ | 12,368 |
| | $ | 3,568 |
| | | | $ | 55,017 |
| | $ | 52,258 |
| | $ | 2,759 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Reinsurance Group of America, Incorporated Canada Traditional Segment Pre-tax Operating Income |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 201,384 |
| | $ | 200,000 |
| | $ | 224,960 |
| | $ | 212,550 |
| | $ | 240,409 |
| | $ | (39,025 | ) | | | | $ | 838,894 |
| | $ | 953,389 |
| | $ | (114,495 | ) |
Investment income, net of related expenses | | 43,125 |
| | 43,283 |
| | 45,497 |
| | 44,405 |
| | 47,442 |
| | (4,317 | ) | | | | 176,310 |
| | 191,478 |
| | (15,168 | ) |
Investment related gains (losses), net | | 1,286 |
| | 1,109 |
| | 1,110 |
| | 939 |
| | 937 |
| | 349 |
| | | | 4,444 |
| | 3,471 |
| | 973 |
|
Other revenue | | 1,131 |
| | 767 |
| | (454 | ) | | 1,556 |
| | 569 |
| | 562 |
| | | | 3,000 |
| | 2,071 |
| | 929 |
|
Total revenues | | 246,926 |
| | 245,159 |
| | 271,113 |
| | 259,450 |
| | 289,357 |
| | (42,431 | ) | | | | 1,022,648 |
| | 1,150,409 |
| | (127,761 | ) |
| | | | | | | | | | | | | | | | | | | | |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 148,543 |
| | 152,640 |
| | 185,742 |
| | 183,534 |
| | 200,620 |
| | (52,077 | ) | | | | 670,459 |
| | 784,437 |
| | (113,978 | ) |
Interest credited | | 4 |
| | 5 |
| | 5 |
| | 4 |
| | 14 |
| | (10 | ) | | | | 18 |
| | 33 |
| | (15 | ) |
Policy acquisition costs and other insurance expenses | | 43,226 |
| | 46,581 |
| | 53,371 |
| | 49,551 |
| | 60,699 |
| | (17,473 | ) | | | | 192,729 |
| | 234,599 |
| | (41,870 | ) |
Other operating expenses | | 10,067 |
| | 8,140 |
| | 8,236 |
| | 9,188 |
| | 9,826 |
| | 241 |
| | | | 35,631 |
| | 39,011 |
| | (3,380 | ) |
Total benefits and expenses | | 201,840 |
| | 207,366 |
| | 247,354 |
| | 242,277 |
| | 271,159 |
| | (69,319 | ) | | | | 898,837 |
| | 1,058,080 |
| | (159,243 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 45,086 |
| | 37,793 |
| | 23,759 |
| | 17,173 |
| | 18,198 |
| | 26,888 |
| | | | 123,811 |
| | 92,329 |
| | 31,482 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 45,086 |
| | 37,793 |
| | 23,759 |
| | 17,173 |
| | 18,198 |
| | 26,888 |
| | | | 123,811 |
| | 92,329 |
| | 31,482 |
|
Investment and derivative gains (losses) - non-operating | | (259 | ) | | (4,930 | ) | | (1,277 | ) | | 519 |
| | 1,418 |
| | (1,677 | ) | | | | (5,947 | ) | | 974 |
| | (6,921 | ) |
Funds withheld gains (losses) - investment income | | (187 | ) | | 1,209 |
| | 254 |
| | 5,035 |
| | 217 |
| | (404 | ) | | | | 6,311 |
| | 2,132 |
| | 4,179 |
|
Income before income taxes | | $ | 44,640 |
| | $ | 34,072 |
| | $ | 22,736 |
| | $ | 22,727 |
| | $ | 19,833 |
| | $ | 24,807 |
| | | | $ | 124,175 |
| | $ | 95,435 |
| | $ | 28,740 |
|
| | | | | | | | | | | | | | | | | | | | |
Loss and Expense Ratios: | | | | | | | | | | | | | | | | | | | | |
Loss ratios (creditor business) | | 28.2 | % | | 34.4 | % | | 31.8 | % | | 29.5 | % | | 31.3 | % | | (3.1 | )% | | | | 31.1 | % | | 29.5 | % | | 1.6 | % |
Loss ratios (excluding creditor business) | | 82.5 | % | | 86.6 | % | | 95.9 | % | | 101.2 | % | | 100.6 | % | | (18.1 | )% | | | | 91.7 | % | | 98.5 | % | | (6.8 | )% |
Claims and other policy benefits / (net premiums + investment income) | | 60.8 | % | | 62.7 | % | | 68.7 | % | | 71.4 | % | | 69.7 | % | | (8.9 | )% | | | | 66.0 | % | | 68.5 | % | | (2.5 | )% |
Policy acquisition costs and other insurance expenses (creditor business) | | 66.2 | % | | 62.1 | % | | 64.0 | % | | 63.0 | % | | 65.8 | % | | 0.4 | % | | | | 63.7 | % | | 64.2 | % | | (0.5 | )% |
Policy acquisition costs and other insurance expenses (excluding creditor business) | | 12.9 | % | | 13.7 | % | | 13.2 | % | | 12.9 | % | | 11.9 | % | | 1.0 | % | | | | 13.2 | % | | 12.4 | % | | 0.8 | % |
Other operating expenses | | 5.0 | % | | 4.1 | % | | 3.7 | % | | 4.3 | % | | 4.1 | % | | 0.9 | % | | | | 4.2 | % | | 4.1 | % | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | |
Foreign currency effect on (1): | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | (35,018 | ) | | $ | (40,371 | ) | | $ | (28,850 | ) | | $ | (26,121 | ) | | $ | (18,820 | ) | | $ | (16,198 | ) | | | | $ | (130,360 | ) | | $ | (68,788 | ) | | $ | (61,572 | ) |
Operating income before income taxes | | $ | (7,795 | ) | | $ | (7,644 | ) | | $ | (3,065 | ) | | $ | (2,147 | ) | | $ | (1,750 | ) | | $ | (6,045 | ) | | | | $ | (20,651 | ) | | $ | (7,321 | ) | | $ | (13,330 | ) |
| | | | | | | | | | | |
|
| | | | | | | | |
Creditor reinsurance net premiums | | $ | 32,484 |
| | $ | 39,462 |
| | $ | 46,629 |
| | $ | 44,054 |
| | $ | 59,451 |
| | $ | (26,967 | ) | | | | $ | 162,629 |
| | $ | 224,220 |
| | $ | (61,591 | ) |
| | | | | | | | | | | | | | | | | | | | |
Note: The loss ratios on creditor reinsurance business are normally lower than traditional reinsurance, while allowances are normally higher as a percentage of premiums. |
(1) Compared to comparable prior year period | | | | | | | | | | | | | | | | | | | | |
Reinsurance Group of America, Incorporated Canada Non-Traditional Segment Pre-tax Operating Income (1) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 9,002 |
| | $ | 9,275 |
| | $ | 9,725 |
| | $ | 9,967 |
| | $ | 4,615 |
| | $ | 4,387 |
| | | | $ | 37,969 |
| | $ | 21,192 |
| | $ | 16,777 |
|
Investment income, net of related expenses | | 328 |
| | 230 |
| | 328 |
| | 550 |
| | 616 |
| | (288 | ) | | | | 1,436 |
| | 2,595 |
| | (1,159 | ) |
Other revenue | | 1,332 |
| | 1,535 |
| | 1,405 |
| | 1,357 |
| | 1,432 |
| | (100 | ) | | | | 5,629 |
| | 4,483 |
| | 1,146 |
|
Total revenues | | 10,662 |
| | 11,040 |
| | 11,458 |
| | 11,874 |
| | 6,663 |
| | 3,999 |
| | | | 45,034 |
| | 28,270 |
| | 16,764 |
|
| | | | | | | | | | | | | | | | | | | | |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 6,708 |
| | 7,340 |
| | 7,904 |
| | 7,299 |
| | 4,451 |
| | 2,257 |
| | | | 29,251 |
| | 20,116 |
| | 9,135 |
|
Policy acquisition costs and other insurance expenses | | 145 |
| | 152 |
| | 148 |
| | 107 |
| | 131 |
| | 14 |
| | | | 552 |
| | 581 |
| | (29 | ) |
Other operating expenses | | 389 |
| | 291 |
| | 312 |
| | 337 |
| | 350 |
| | 39 |
| | | | 1,329 |
| | 1,388 |
| | (59 | ) |
Total benefits and expenses | | 7,242 |
| | 7,783 |
| | 8,364 |
| | 7,743 |
| | 4,932 |
| | 2,310 |
| | | | 31,132 |
| | 22,085 |
| | 9,047 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 3,420 |
| | 3,257 |
| | 3,094 |
| | 4,131 |
| | 1,731 |
| | 1,689 |
| | | | 13,902 |
| | 6,185 |
| | 7,717 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 3,420 |
| | 3,257 |
| | 3,094 |
| | 4,131 |
| | 1,731 |
| | 1,689 |
| | | | 13,902 |
| | 6,185 |
| | 7,717 |
|
Investment and derivative gains (losses) - non-operating | | — |
| | — |
| | — |
| | — |
| | 8 |
| | (8 | ) | | | | — |
| | 80 |
| | (80 | ) |
Income before income taxes | | $ | 3,420 |
| | $ | 3,257 |
| | $ | 3,094 |
| | $ | 4,131 |
| | $ | 1,739 |
| | $ | 1,681 |
| | | | $ | 13,902 |
| | $ | 6,265 |
| | $ | 7,637 |
|
| | | | | | | | | | | | | | | | | | | | |
Foreign currency effect on (2): | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | (1,570 | ) | | $ | (1,872 | ) | | $ | (1,234 | ) | | $ | (1,302 | ) | | $ | (1,390 | ) | | $ | (180 | ) | | | | $ | (5,978 | ) | | $ | (1,530 | ) | | $ | (4,448 | ) |
Operating income before income taxes | | $ | (623 | ) | | $ | (659 | ) | | $ | (397 | ) | | $ | (251 | ) | | $ | (146 | ) | | $ | (477 | ) | | | | $ | (1,930 | ) | | $ | (456 | ) | | $ | (1,474 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(1) The Canadian non-traditional segment includes longevity and financial reinsurance business. | | | | | | | | | | | | | | |
(2) Compared to comparable prior year period | | | | | | | | | | | | | | | | | | | | |
Reinsurance Group of America, Incorporated Europe, Middle East and Africa Traditional Segment Pre-tax Operating Income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 299,938 |
| | $ | 276,111 |
| | $ | 275,745 |
| | $ | 269,746 |
| | $ | 288,191 |
| | $ | 11,747 |
| | | | $ | 1,121,540 |
| | $ | 1,157,407 |
| | $ | (35,867 | ) |
Investment income, net of related expenses | | 14,123 |
| | 12,066 |
| | 13,092 |
| | 12,089 |
| | 15,099 |
| | (976 | ) | | | | 51,370 |
| | 52,086 |
| | (716 | ) |
Investment related gains (losses), net | | 7,527 |
| | (7,167 | ) | | (4,509 | ) | | 12,208 |
| | 3,678 |
| | 3,849 |
| | | | 8,059 |
| | 14,004 |
| | (5,945 | ) |
Other revenue | | 5,380 |
| | 3,051 |
| | (136 | ) | | 1,140 |
| | (582 | ) | | 5,962 |
| | | | 9,435 |
| | 2,364 |
| | 7,071 |
|
Total revenues | | 326,968 |
| | 284,061 |
| | 284,192 |
| | 295,183 |
| | 306,386 |
| | 20,582 |
| | | | 1,190,404 |
| | 1,225,861 |
| | (35,457 | ) |
| | | | | | | | | | | | | | | | | | | | |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 260,874 |
| | 232,473 |
| | 240,942 |
| | 235,307 |
| | 247,959 |
| | 12,915 |
| | | | 969,596 |
| | 997,760 |
| | (28,164 | ) |
Interest credited | | 8,126 |
| | (6,798 | ) | | (4,048 | ) | | 12,349 |
| | 4,076 |
| | 4,050 |
| | | | 9,629 |
| | 15,571 |
| | (5,942 | ) |
Policy acquisition costs and other insurance expenses | | 19,171 |
| | 17,680 |
| | 14,183 |
| | 12,008 |
| | 14,038 |
| | 5,133 |
| | | | 63,042 |
| | 56,972 |
| | 6,070 |
|
Other operating expenses | | 25,938 |
| | 25,085 |
| | 23,956 |
| | 25,086 |
| | 30,414 |
| | (4,476 | ) | | | | 100,065 |
| | 104,441 |
| | (4,376 | ) |
Total benefits and expenses | | 314,109 |
| | 268,440 |
| | 275,033 |
| | 284,750 |
| | 296,487 |
| | 17,622 |
| | | | 1,142,332 |
| | 1,174,744 |
| | (32,412 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 12,859 |
| | 15,621 |
| | 9,159 |
| | 10,433 |
| | 9,899 |
| | 2,960 |
| | | | 48,072 |
| | 51,117 |
| | (3,045 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 12,859 |
| | 15,621 |
| | 9,159 |
| | 10,433 |
| | 9,899 |
| | 2,960 |
| | | | 48,072 |
| | 51,117 |
| | (3,045 | ) |
Investment and derivative gains (losses) - non-operating | | — |
| | 289 |
| | — |
| | 49 |
| | 3,330 |
| | (3,330 | ) | | | | 338 |
| | 9,188 |
| | (8,850 | ) |
Income before income taxes | | $ | 12,859 |
| | $ | 15,910 |
| | $ | 9,159 |
|
| $ | 10,482 |
| | $ | 13,229 |
| | $ | (370 | ) | | | | $ | 48,410 |
| | $ | 60,305 |
| | $ | (11,895 | ) |
| | | | | | | | | | | | | | | | | | | | |
Loss and Expense Ratios: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 87.0 | % | | 84.2 | % | | 87.4 | % | | 87.2 | % | | 86.0 | % | | 1.0 | % | | | | 86.5 | % | | 86.2 | % | | 0.3 | % |
Policy acquisition costs and other insurance expenses | | 6.4 | % | | 6.4 | % | | 5.1 | % | | 4.5 | % | | 4.9 | % | | 1.5 | % | | | | 5.6 | % | | 4.9 | % | | 0.7 | % |
Other operating expenses | | 8.6 | % | | 9.1 | % | | 8.7 | % | | 9.3 | % | | 10.6 | % | | (2.0 | )% | | | | 8.9 | % | | 9.0 | % | | (0.1 | )% |
| | | | | | | | | | | | | | | | | | | | |
Foreign currency effect on (1): | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | (24,499 | ) | | $ | (29,879 | ) | | $ | (35,426 | ) | | $ | (29,430 | ) | | $ | (24,435 | ) | | $ | (64 | ) | | | | $ | (119,234 | ) | | $ | 19,049 |
| | $ | (138,283 | ) |
Operating income before income taxes | | $ | (1,285 | ) | | $ | (716 | ) | | $ | (770 | ) | | $ | (1,301 | ) | | $ | (905 | ) | | $ | (380 | ) | | | | $ | (4,072 | ) | | $ | 1,443 |
| | $ | (5,515 | ) |
| | | | | | | | | | | | | | | | | | | | |
Critical illness net premiums | | $ | 58,610 |
| | $ | 58,069 |
| | $ | 58,278 |
| | $ | 58,219 |
| | $ | 62,511 |
| | $ | (3,901 | ) | | | | $ | 233,176 |
| | $ | 257,749 |
| | $ | (24,573 | ) |
| | | | | | | | | | | | | | | | | | | | |
(1) Compared to comparable prior year period |
Reinsurance Group of America, Incorporated Europe, Middle East and Africa Non-Traditional Segment Pre-tax Operating Income (1)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 47,152 |
| | $ | 44,584 |
| | $ | 50,234 |
| | $ | 29,860 |
| | $ | 57,694 |
| | $ | (10,542 | ) | | | | $ | 171,830 |
| | $ | 216,562 |
| | $ | (44,732 | ) |
Investment income, net of related expenses | | 23,468 |
| | 17,305 |
| | 15,782 |
| | 16,877 |
| | 28,799 |
| | (5,331 | ) | | | | 73,432 |
| | 55,043 |
| | 18,389 |
|
Other revenue | | 6,758 |
| | 6,953 |
| | 9,694 |
| | 7,640 |
| | 8,725 |
| | (1,967 | ) | | | | 31,045 |
| | 35,159 |
| | (4,114 | ) |
Total revenues | | 77,378 |
| | 68,842 |
| | 75,710 |
| | 54,377 |
| | 95,218 |
| | (17,840 | ) | | | | 276,307 |
| | 306,764 |
| | (30,457 | ) |
| | | | | | | | | | | | | | | | | | | | |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 52,064 |
| | 37,923 |
| | 39,849 |
| | 32,081 |
| | 66,032 |
| | (13,968 | ) | | | | 161,917 |
| | 204,110 |
| | (42,193 | ) |
Policy acquisition costs and other insurance expenses | | (325 | ) | | (511 | ) | | 266 |
| | (530 | ) | | (646 | ) | | 321 |
| | | | (1,100 | ) | | (2,356 | ) | | 1,256 |
|
Other operating expenses | | 6,860 |
| | 2,592 |
| | 3,761 |
| | 4,191 |
| | 5,948 |
| | 912 |
| | | | 17,404 |
| | 19,707 |
| | (2,303 | ) |
Total benefits and expenses | | 58,599 |
| | 40,004 |
| | 43,876 |
| | 35,742 |
| | 71,334 |
| | (12,735 | ) | | | | 178,221 |
| | 221,461 |
| | (43,240 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 18,779 |
| | 28,838 |
| | 31,834 |
| | 18,635 |
| | 23,884 |
| | (5,105 | ) | | | | 98,086 |
| | 85,303 |
| | 12,783 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 18,779 |
| | 28,838 |
| | 31,834 |
| | 18,635 |
| | 23,884 |
| | (5,105 | ) | | | | 98,086 |
| | 85,303 |
| | 12,783 |
|
Investment and derivative gains (losses) - non-operating | | 9,261 |
| | 8 |
| | 50 |
| | 851 |
| | 2,314 |
| | 6,947 |
| | | | 10,170 |
| | 15,522 |
| | (5,352 | ) |
Non-investment derivatives | | 105 |
| | 388 |
| | (452 | ) | | 148 |
| | 512 |
| | (407 | ) | | | | 189 |
| | 512 |
| | (323 | ) |
Income before income taxes | | $ | 28,145 |
| | $ | 29,234 |
| | $ | 31,432 |
| | $ | 19,634 |
| | $ | 26,710 |
| | $ | 1,435 |
| | | | $ | 108,445 |
| | $ | 101,337 |
| | $ | 7,108 |
|
| | | | | | | | | | | | | | | | | | | | |
Foreign currency effect on (2): | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | (2,062 | ) | | $ | (3,394 | ) | | $ | (4,779 | ) | | $ | (2,327 | ) | | $ | 9,345 |
| | $ | (11,407 | ) | | | | $ | (12,562 | ) | | $ | 10,196 |
| | $ | (22,758 | ) |
Operating income before income taxes | | $ | (1,441 | ) | | $ | (2,780 | ) | | $ | (4,214 | ) | | $ | (2,393 | ) | | $ | (1,510 | ) | | $ | 69 |
| | | | $ | (10,828 | ) | | $ | 2,332 |
| | $ | (13,160 | ) |
| | | | | | | | | | | | | | | | | | | | |
(1) The Europe, Middle East and Africa non-traditional segment includes asset intensive, financial reinsurance, capital motivated and longevity closed block business. |
(2) Compared to comparable prior year period |
Reinsurance Group of America, Incorporated Asia Pacific Traditional Segment Pre-tax Operating Income |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 388,663 |
| | $ | 400,322 |
| | $ | 390,456 |
| | $ | 372,145 |
| | $ | 390,652 |
| | $ | (1,989 | ) | | | | $ | 1,551,586 |
| | $ | 1,540,910 |
| | $ | 10,676 |
|
Investment income, net of related expenses | | 20,276 |
| | 19,626 |
| | 20,043 |
| | 20,604 |
| | 20,785 |
| | (509 | ) | | | | 80,549 |
| | 84,489 |
| | (3,940 | ) |
Investment related gains (losses), net | | — |
| | — |
| | — |
| | — |
| | (1 | ) | | 1 |
| | | | — |
| | — |
| | — |
|
Other revenue | | 553 |
| | 3,728 |
| | 815 |
| | 1,126 |
| | 3,363 |
| | (2,810 | ) | | | | 6,222 |
| | 58,098 |
| | (51,876 | ) |
Total revenues | | 409,492 |
| | 423,676 |
| | 411,314 |
| | 393,875 |
| | 414,799 |
| | (5,307 | ) | | | | 1,638,357 |
| | 1,683,497 |
| | (45,140 | ) |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 284,269 |
| | 333,739 |
| | 325,667 |
| | 265,309 |
| | 312,540 |
| | (28,271 | ) | | | | 1,208,984 |
| | 1,208,611 |
| | 373 |
|
Policy acquisition costs and other insurance expenses | | 49,747 |
| | 41,982 |
| | 49,335 |
| | 46,912 |
| | 46,691 |
| | 3,056 |
| | | | 187,976 |
| | 258,812 |
| | (70,836 | ) |
Other operating expenses | | 39,767 |
| | 34,973 |
| | 31,997 |
| | 29,006 |
| | 37,541 |
| | 2,226 |
| | | | 135,743 |
| | 128,411 |
| | 7,332 |
|
Total benefits and expenses | | 373,783 |
| | 410,694 |
| | 406,999 |
| | 341,227 |
| | 396,772 |
| | (22,989 | ) | | | | 1,532,703 |
| | 1,595,834 |
| | (63,131 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 35,709 |
| | 12,982 |
| | 4,315 |
| | 52,648 |
| | 18,027 |
| | 17,682 |
| | | | 105,654 |
| | 87,663 |
| | 17,991 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 35,709 |
| | 12,982 |
| | 4,315 |
| | 52,648 |
| | 18,027 |
| | 17,682 |
| | | | 105,654 |
| | 87,663 |
| | 17,991 |
|
Investment and derivative gains (losses) - non-operating | | 1,706 |
| | (1,706 | ) | | — |
| | — |
| | 1,193 |
| | 513 |
| | | | — |
| | 2,939 |
| | (2,939 | ) |
Income before income taxes | | $ | 37,415 |
| | $ | 11,276 |
| | $ | 4,315 |
| | $ | 52,648 |
| | $ | 19,220 |
| | $ | 18,195 |
| | | | $ | 105,654 |
| | $ | 90,602 |
| | $ | 15,052 |
|
| | | | | | | | | | | | | | | | | | | | |
Loss and Expense Ratios: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 73.1 | % | | 83.4 | % | | 83.4 | % | | 71.3 | % | | 80.0 | % | | (6.9 | )% | | | | 77.9 | % | | 78.4 | % | | (0.5 | )% |
Policy acquisition costs and other insurance expenses | | 12.8 | % | | 10.5 | % | | 12.6 | % | | 12.6 | % | | 12.0 | % | | 0.8 | % | | | | 12.1 | % | | 16.8 | % | | (4.7 | )% |
Other operating expenses | | 10.2 | % | | 8.7 | % | | 8.2 | % | | 7.8 | % | | 9.6 | % | | 0.6 | % | | | | 8.7 | % | | 8.3 | % | | 0.4 | % |
| | | | | | | | | | | | | | | | | | | |
|
Foreign currency effect on (1): | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | (43,034 | ) | | $ | (69,139 | ) | | $ | (50,842 | ) | | $ | (35,158 | ) | | $ | (23,238 | ) | | $ | (19,796 | ) | | | | $ | (198,173 | ) | | $ | (65,838 | ) | | $ | (132,335 | ) |
Operating income before income taxes | | $ | (4,204 | ) | | $ | (601 | ) | | $ | 1,533 |
| | $ | (4,762 | ) | | $ | (2,414 | ) | | $ | (1,790 | ) | | | | $ | (8,034 | ) | | $ | (6,523 | ) | | $ | (1,511 | ) |
| | | | | | | | | | | | | | | | | | | | |
Critical illness net premiums | | $ | 81,271 |
| | $ | 86,341 |
| | $ | 75,120 |
| | $ | 69,867 |
| | $ | 76,231 |
| | $ | 5,040 |
| | | | $ | 312,599 |
| | $ | 275,662 |
| | $ | 36,937 |
|
| | | | | | | | | | | | | | | | | | | | |
(1) Compared to comparable prior year period |
| | | | | | | | | | | | | | | | | | | | |
Reinsurance Group of America, Incorporated Asia Pacific Non-Traditional Segment Pre-tax Operating Income (1) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 5,487 |
| | $ | 2,807 |
| | $ | 898 |
| | $ | 10,282 |
| | $ | 9,429 |
| | $ | (3,942 | ) | | | | $ | 19,474 |
| | $ | 34,030 |
| | $ | (14,556 | ) |
Investment income, net of related expenses | | 6,659 |
| | 4,482 |
| | 3,888 |
| | 3,649 |
| | 4,264 |
| | 2,395 |
| | | | 18,678 |
| | 17,972 |
| | 706 |
|
Investment related gains (losses), net | | 654 |
| | 706 |
| | 507 |
| | 501 |
| | 665 |
| | (11 | ) | | | | 2,368 |
| | 2,855 |
| | (487 | ) |
Other revenue | | 5,698 |
| | 4,306 |
| | 3,839 |
| | 5,117 |
| | 5,539 |
| | 159 |
| | | | 18,960 |
| | 22,751 |
| | (3,791 | ) |
Total revenues | | 18,498 |
| | 12,301 |
| | 9,132 |
| | 19,549 |
| | 19,897 |
| | (1,399 | ) | | | | 59,480 |
| | 77,608 |
| | (18,128 | ) |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | 4,951 |
| | 903 |
| | 4,706 |
| | 5,735 |
| | 8,103 |
| | (3,152 | ) | | | | 16,295 |
| | 41,455 |
| | (25,160 | ) |
Interest credited | | 3,095 |
| | 1,023 |
| | 169 |
| | 184 |
| | 195 |
| | 2,900 |
| | | | 4,471 |
| | 896 |
| | 3,575 |
|
Policy acquisition costs and other insurance expenses | | 1,297 |
| | 292 |
| | 419 |
| | 546 |
| | 367 |
| | 930 |
| | | | 2,554 |
| | 2,296 |
| | 258 |
|
Other operating expenses | | 3,705 |
| | 3,790 |
| | 3,187 |
| | 2,960 |
| | 4,006 |
| | (301 | ) | | | | 13,642 |
| | 13,942 |
| | (300 | ) |
Total benefits and expenses | | 13,048 |
| | 6,008 |
| | 8,481 |
| | 9,425 |
| | 12,671 |
| | 377 |
| | | | 36,962 |
| | 58,589 |
| | (21,627 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 5,450 |
| | 6,293 |
| | 651 |
| | 10,124 |
| | 7,226 |
| | (1,776 | ) | | | | 22,518 |
| | 19,019 |
| | 3,499 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Operating income before income taxes | | 5,450 |
| | 6,293 |
| | 651 |
| | 10,124 |
| | 7,226 |
| | (1,776 | ) | | | | 22,518 |
| | 19,019 |
| | 3,499 |
|
Investment and derivative gains (losses) - non-operating | | 17 |
| | (881 | ) | | (2,056 | ) | | 21 |
| | (5,803 | ) | | 5,820 |
| | | | (2,899 | ) | | (7,326 | ) | | 4,427 |
|
Income (loss) before income taxes | | $ | 5,467 |
| | $ | 5,412 |
| | $ | (1,405 | ) | | $ | 10,145 |
| | $ | 1,423 |
| | $ | 4,044 |
| | | | $ | 19,619 |
| | $ | 11,693 |
| | $ | 7,926 |
|
| | | | | | | | | | | | | | | | | | | | |
Foreign currency effect on (2): | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | (373 | ) | | $ | (392 | ) | | $ | (156 | ) | | $ | (1,686 | ) | | $ | (2,555 | ) | | $ | 2,182 |
| | | | $ | (2,607 | ) | | $ | (3,465 | ) | | $ | 858 |
|
Operating income before income taxes | | $ | (774 | ) | | $ | (1,719 | ) | | $ | (614 | ) | | $ | (451 | ) | | $ | (1,355 | ) | | $ | 581 |
| | | | $ | (3,558 | ) | | $ | (2,613 | ) | | $ | (945 | ) |
| | | | | | | | | | | | | | | | | | | | |
(1) The Asia Pacific non-traditional segment includes asset intensive, financial reinsurance, and disabled life closed block business. |
(2) Compared to comparable prior year period |
Reinsurance Group of America, Incorporated Corporate and Other Segment Pre-tax Operating Income |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-Date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net premiums | | $ | 112 |
| | $ | 133 |
| | $ | 153 |
| | $ | 167 |
| | $ | 173 |
| | $ | (61 | ) | | | | $ | 565 |
| | $ | 780 |
| | $ | (215 | ) |
Investment income, net of related expenses | | 28,355 |
| | 31,693 |
| | 31,707 |
| | 31,695 |
| | 33,762 |
| | (5,407 | ) | | | | 123,450 |
| | 110,806 |
| | 12,644 |
|
Investment related gains (losses), net | | 523 |
| | 519 |
| | 460 |
| | 447 |
| | 468 |
| | 55 |
| | | | 1,949 |
| | 1,414 |
| | 535 |
|
Other revenue | | 6,650 |
| | (1,670 | ) | | 3,348 |
| | 1,730 |
| | (379 | ) | | 7,029 |
| | | | 10,058 |
| | 7,720 |
| | 2,338 |
|
Total revenues | | 35,640 |
| | 30,675 |
| | 35,668 |
| | 34,039 |
| | 34,024 |
| | 1,616 |
| | | | 136,022 |
| | 120,720 |
| | 15,302 |
|
| | | | | | | | | | | | | | | | | | | | |
Benefits and expenses: | | | | | | | | | | | | | | | | | | | | |
Claims and other policy benefits | | (11 | ) | | (4 | ) | | — |
| | 53 |
| | 2 |
| | (13 | ) | | | | 38 |
| | (4 | ) | | 42 |
|
Interest credited | | 369 |
| | 244 |
| | 203 |
| | 212 |
| | 205 |
| | 164 |
| | | | 1,028 |
| | 808 |
| | 220 |
|
Policy acquisition costs and other insurance income | | (22,886 | ) | | (22,234 | ) | | (21,843 | ) | | (20,588 | ) | | (24,139 | ) | | 1,253 |
| | | | (87,551 | ) | | (83,501 | ) | | (4,050 | ) |
Other operating expenses | | 32,878 |
| | 31,668 |
| | 26,137 |
| | 18,334 |
| | 41,279 |
| | (8,401 | ) | | | | 109,017 |
| | 96,602 |
| | 12,415 |
|
Interest expense | | 35,820 |
| | 35,565 |
| | 35,851 |
| | 35,627 |
| | (9,660 | ) | | 45,480 |
| | | | 142,863 |
| | 96,700 |
| | 46,163 |
|
Collateral finance and securitization expense | | 6,182 |
| | 5,133 |
| | 5,258 |
| | 6,071 |
| | 3,710 |
| | 2,472 |
| | | | 22,644 |
| | 11,441 |
| | 11,203 |
|
Total benefits and expenses | | 52,352 |
| | 50,372 |
| | 45,606 |
| | 39,709 |
| | 11,397 |
| | 40,955 |
| | | | 188,039 |
| | 122,046 |
| | 65,993 |
|
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss) before income taxes | | (16,712 | ) | | (19,697 | ) | | (9,938 | ) | | (5,670 | ) | | 22,627 |
| | (39,339 | ) | | | | (52,017 | ) | | (1,326 | ) |
| (50,691 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating to U.S. GAAP Reconciliation: | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) before income taxes | | (16,712 | ) | | (19,697 | ) | | (9,938 | ) | | (5,670 | ) | | 22,627 |
| | (39,339 | ) | | | | (52,017 | ) | | (1,326 | ) | | (50,691 | ) |
Investment and derivative gains (losses) - non-operating | | (34,799 | ) | | (31,229 | ) | | 1,252 |
| | (2,280 | ) | | (3,696 | ) | | (31,103 | ) | | | | (67,056 | ) | | (10,299 | ) | | (56,757 | ) |
Non-investment derivatives | | 15 |
| | (5 | ) | | (41 | ) | | (40 | ) | | (40 | ) | | 55 |
| | | | (71 | ) | | (68 | ) | | (3 | ) |
Income (loss) before income taxes | | $ | (51,496 | ) | | $ | (50,931 | ) | | $ | (8,727 | ) | | $ | (7,990 | ) | | $ | 18,891 |
| | $ | (70,387 | ) | | | | $ | (119,144 | ) | | $ | (11,693 | ) | | $ | (107,451 | ) |
| | | | | | | | | | | | | | | | | | | | |
Foreign currency effect on (1): | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) before income taxes | | $ | (2,604 | ) | | $ | (1,407 | ) | | $ | (1,173 | ) | | $ | (528 | ) | | $ | (1,196 | ) | | $ | (1,408 | ) | | | | $ | (5,712 | ) | | $ | (5,568 | ) | | $ | (144 | ) |
| | | | | | | | | | | | | | | | | | | | |
(1) Compared to comparable prior year period |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Reinsurance Group of America, Incorporated Summary of Pre-tax Segment Operating Income |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
(USD thousands) | | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
U.S. and Latin America: | | | | | | | | | | | | | | | | | | | | |
Traditional | | $ | 78,990 |
| | $ | 54,726 |
| | $ | 79,433 |
| | $ | 20,316 |
| | $ | 134,120 |
| | $ | (55,130 | ) | | | | $ | 233,465 |
| | $ | 350,202 |
| | $ | (116,737 | ) |
Non-Traditional: | | | | | | | | | | | |
| | | | | | | |
|
Asset Intensive | | 47,596 |
| | 55,230 |
| | 56,402 |
| | 40,334 |
| | 56,014 |
| | (8,418 | ) | | | | 199,562 |
| | 199,022 |
| | 540 |
|
Financial Reinsurance | | 15,936 |
| | 12,073 |
| | 14,643 |
| | 12,365 |
| | 12,530 |
| | 3,406 |
| | | | 55,017 |
| | 52,369 |
| | 2,648 |
|
Total U.S. and Latin America | | 142,522 |
| | 122,029 |
| | 150,478 |
| | 73,015 |
| | 202,664 |
| | (60,142 | ) | | | | 488,044 |
| | 601,593 |
| | (113,549 | ) |
Canada: | | | | | | | | | | | | | | | | | | | | |
Canada Traditional | | 45,086 |
| | 37,793 |
| | 23,759 |
| | 17,173 |
| | 18,198 |
| | 26,888 |
| | | | 123,811 |
| | 92,329 |
| | 31,482 |
|
Canada Non-Traditional | | 3,420 |
| | 3,257 |
| | 3,094 |
| | 4,131 |
| | 1,731 |
| | 1,689 |
| | | | 13,902 |
| | 6,185 |
| | 7,717 |
|
Total Canada | | 48,506 |
| | 41,050 |
| | 26,853 |
| | 21,304 |
| | 19,929 |
| | 28,577 |
| | | | 137,713 |
| | 98,514 |
| | 39,199 |
|
Europe, Middle East and Africa: | | | | | | | | | | | | | | | | | | | | |
Europe, Middle East and Africa Traditional | | 12,859 |
| | 15,621 |
| | 9,159 |
| | 10,433 |
| | 9,899 |
| | 2,960 |
| | | | 48,072 |
| | 51,117 |
| | (3,045 | ) |
Europe, Middle East and Africa Non-Traditional | | 18,779 |
| | 28,838 |
| | 31,834 |
| | 18,635 |
| | 23,884 |
| | (5,105 | ) | | | | 98,086 |
| | 85,303 |
| | 12,783 |
|
Total Europe, Middle East and Africa | | 31,638 |
| | 44,459 |
| | 40,993 |
| | 29,068 |
| | 33,783 |
| | (2,145 | ) | | | | 146,158 |
| | 136,420 |
| | 9,738 |
|
Asia Pacific: | | | | | | | | | | | | | | | | | | | | |
Asia Pacific Traditional | | 35,709 |
| | 12,982 |
| | 4,315 |
| | 52,648 |
| | 18,027 |
| | 17,682 |
| | | | 105,654 |
| | 87,663 |
| | 17,991 |
|
Asia Pacific Non-Traditional | | 5,450 |
| | 6,293 |
| | 651 |
| | 10,124 |
| | 7,226 |
| | (1,776 | ) | | | | 22,518 |
| | 19,019 |
| | 3,499 |
|
Total Asia Pacific | | 41,159 |
| | 19,275 |
| | 4,966 |
| | 62,772 |
| | 25,253 |
| | 15,906 |
| | | | 128,172 |
| | 106,682 |
| | 21,490 |
|
Corporate and Other | | (16,712 | ) | | (19,697 | ) | | (9,938 | ) | | (5,670 | ) | | 22,627 |
| | (39,339 | ) | | | | (52,017 | ) | | (1,326 | ) | | (50,691 | ) |
Consolidated | | $ | 247,113 |
| | $ | 207,116 |
| | $ | 213,352 |
| | $ | 180,489 |
| | $ | 304,256 |
| | $ | (57,143 | ) | | | | $ | 848,070 |
| | $ | 941,883 |
| | $ | (93,813 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Reinsurance Group of America, Incorporated Investments (USD thousands)
Cash and Invested Assets |
| | | | | | | | | | | | | | | | | | | | |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, |
| | 2015 | | 2015 | | 2015 | | 2015 | | 2014 |
Fixed maturity securities, available-for-sale | | $ | 29,642,905 |
| | $ | 27,411,788 |
| | $ | 28,063,975 |
| | $ | 25,801,223 |
| | $ | 25,480,972 |
|
Mortgage loans on real estate | | 3,129,951 |
| | 3,170,002 |
| | 3,073,313 |
| | 2,913,486 |
| | 2,712,238 |
|
Policy loans | | 1,468,796 |
| | 1,444,009 |
| | 1,438,156 |
| | 1,284,085 |
| | 1,284,284 |
|
Funds withheld at interest | | 5,880,203 |
| | 5,675,174 |
| | 5,840,076 |
| | 5,841,554 |
| | 5,922,561 |
|
Short-term investments | | 558,284 |
| | 58,200 |
| | 76,118 |
| | 89,136 |
| | 97,694 |
|
Other invested assets | | 1,298,120 |
| | 1,187,504 |
| | 1,110,107 |
| | 1,243,033 |
| | 1,198,319 |
|
Cash and cash equivalents | | 1,525,275 |
| | 1,747,692 |
| | 1,335,661 |
| | 1,083,179 |
| | 1,645,669 |
|
Total cash and invested assets | | $ | 43,503,534 |
| | $ | 40,694,369 |
| | $ | 40,937,406 |
| | $ | 38,255,696 |
| | $ | 38,341,737 |
|
Investment Income and Yield Summary |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-Date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
| | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Average invested assets at amortized cost (1) | | $ | 21,552,560 |
| | $ | 20,988,046 |
| | $ | 21,029,197 |
| | $ | 21,073,262 |
| | $ | 20,672,245 |
| | $ | 880,315 |
| | | | $ | 20,784,941 |
| | $ | 19,876,715 |
| | $ | 908,226 |
|
Net investment income (1) | | $ | 262,660 |
| | $ | 240,168 |
| | $ | 252,131 |
| | $ | 247,239 |
| | $ | 250,757 |
| | $ | 11,903 |
| | | | $ | 1,002,197 |
| | $ | 957,882 |
| | $ | 44,315 |
|
Annualized investment yield (ratio of net investment income to average invested assets) (1) | | 4.96 | % | (2) | 4.66 | % | | 4.88 | % | | 4.78 | % | | 4.94 | % | | 0.02 | % | | | | 4.82 | % | (2) | 4.82 | % | | 0.00 | % |
| | | | | | | | | | | | | | | | | | | | |
(1) Excludes spread-related business (e.g. coinsurance of annuities) |
(2) Includes the cumulative effect of income related to a funds withheld transaction executed in the fourth quarter of 2015, retroactive to the beginning of the year. |
Reinsurance Group of America, Incorporated Investments (USD thousands)
Amortized cost, gross unrealized gains and losses, and estimated fair values of fixed maturity and equity securities (Excludes Funds Withheld Portfolios) |
| | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2015 |
| | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Estimated Fair Value | | % of Total | | Other-than- temporary Impairment in AOCI |
Available-for-sale: | | | | | | | | | | | | |
Corporate securities | | $ | 17,575,507 |
| | $ | 599,718 |
| | $ | 467,069 |
| | $ | 17,708,156 |
| | 59.7 | % | | $ | — |
|
Canadian and Canadian provincial governments | | 2,469,009 |
| | 1,110,282 |
| | 2,532 |
| | 3,576,759 |
| | 12.1 | % | | — |
|
Residential mortgage-backed securities | | 1,277,998 |
| | 45,152 |
| | 11,673 |
| | 1,311,477 |
| | 4.4 | % | | (300 | ) |
Asset-backed securities | | 1,219,000 |
| | 12,052 |
| | 18,376 |
| | 1,212,676 |
| | 4.1 | % | | 354 |
|
Commercial mortgage-backed securities | | 1,456,848 |
| | 37,407 |
| | 11,168 |
| | 1,483,087 |
| | 5.0 | % | | (1,609 | ) |
U.S. government and agencies | | 1,423,791 |
| | 15,586 |
| | 57,718 |
| | 1,381,659 |
| | 4.7 | % | | — |
|
State and political subdivisions | | 480,067 |
| | 40,014 |
| | 9,067 |
| | 511,014 |
| | 1.7 | % | | — |
|
Other foreign government, supranational, and foreign | | | | | | | | | | | | |
government-sponsored enterprises | | 2,420,757 |
| | 78,964 |
| | 41,644 |
| | 2,458,077 |
| | 8.3 | % | | — |
|
Total fixed maturity securities | | $ | 28,322,977 |
| | $ | 1,939,175 |
| | $ | 619,247 |
| | $ | 29,642,905 |
| | 100.0 | % | | $ | (1,555 | ) |
| | | | | | | | | | | | |
Non-redeemable preferred stock | | 85,645 |
| | 7,837 |
| | 5,962 |
| | 87,520 |
| | 69.5 | % | | |
Other equity securities | | 40,584 |
| | — |
| | 2,242 |
| | 38,342 |
| | 30.5 | % | | |
Total equity securities | | $ | 126,229 |
| | $ | 7,837 |
| | $ | 8,204 |
| | $ | 125,862 |
| | 100.0 | % | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2014 |
| | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Estimated Fair Value | | % of Total | | Other-than- temporary Impairment in AOCI |
Available-for-sale: | | | | | | | | | | | | |
Corporate securities | | $ | 14,010,604 |
| | $ | 965,523 |
| | $ | 90,544 |
| | $ | 14,885,583 |
| | 58.4 | % | | $ | — |
|
Canadian and Canadian provincial governments | | 2,668,852 |
| | 1,196,420 |
| | 7 |
| | 3,865,265 |
| | 15.2 | % | | — |
|
Residential mortgage-backed securities | | 991,867 |
| | 52,640 |
| | 6,611 |
| | 1,037,896 |
| | 4.1 | % | | (300 | ) |
Asset-backed securities | | 1,059,660 |
| | 20,301 |
| | 10,375 |
| | 1,069,586 |
| | 4.2 | % | | 354 |
|
Commercial mortgage-backed securities | | 1,453,657 |
| | 87,593 |
| | 8,659 |
| | 1,532,591 |
| | 6.0 | % | | (1,609 | ) |
U.S. government and agencies | | 501,352 |
| | 25,014 |
| | 515 |
| | 525,851 |
| | 2.0 | % | | — |
|
State and political subdivisions | | 378,457 |
| | 51,117 |
| | 3,498 |
| | 426,076 |
| | 1.7 | % | | — |
|
Other foreign government, supranational, and foreign | | | | | | | | | | | | |
government-sponsored enterprises | | 2,041,148 |
| | 110,065 |
| | 13,089 |
| | 2,138,124 |
| | 8.4 | % | | — |
|
Total fixed maturity securities | | $ | 23,105,597 |
| | $ | 2,508,673 |
| | $ | 133,298 |
| | $ | 25,480,972 |
| | 100.0 | % | | $ | (1,555 | ) |
| | | | | | | | | | | | |
Non-redeemable preferred stock | | 93,540 |
| | 7,350 |
| | 1,527 |
| | 99,363 |
| | 78.3 | % | | |
Other equity securities | | 26,994 |
| | 597 |
| | 94 |
| | 27,497 |
| | 21.7 | % | | |
Total equity securities | | $ | 120,534 |
| | $ | 7,947 |
| | $ | 1,621 |
| | $ | 126,860 |
| | 100.0 | % | | |
Reinsurance Group of America, Incorporated Investments (USD thousands)
Corporate Fixed Maturities Securities by Sector (Excludes Funds Withheld Portfolios) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2015 | | December 31, 2014 |
| | Amortized Cost | | Estimated Fair Value | | % of Total | | Average Credit Ratings (1) | | Amortized Cost | | Estimated Fair Value | | % of Total | | Average Credit Ratings (1) |
Financial Institutions | | | | | | | | | | | | | | | | |
Banking | | $ | 3,557,406 |
| | $ | 3,641,125 |
| | 20.5 | % | | A- | | $ | 3,085,645 |
| | $ | 3,227,988 |
| | 21.6 | % | | A- |
Brokerage/Asset Managers/Exchanges | | 315,848 |
| | 327,477 |
| | 1.8 | % | | A | | 247,955 |
| | 268,439 |
| | 1.8 | % | | A |
Finance Comp. | | 68,996 |
| | 70,947 |
| | 0.4 | % | | BBB- | | 187,055 |
| | 199,781 |
| | 1.3 | % | | A+ |
Insurance | | 877,691 |
| | 908,752 |
| | 5.1 | % | | A- | | 692,464 |
| | 758,825 |
| | 5.1 | % | | A- |
REITs | | 524,424 |
| | 540,120 |
| | 3.1 | % | | BBB+ | | 513,412 |
| | 544,302 |
| | 3.7 | % | | BBB+ |
Other Finance | | 64,426 |
| | 66,623 |
| | 0.4 | % | | A- | | 63,037 |
| | 67,073 |
| | 0.5 | % | | BBB+ |
Total Financial Institutions | | $ | 5,408,791 |
| | $ | 5,555,044 |
| | 31.3 | % | | | | $ | 4,789,568 |
| | $ | 5,066,408 |
| | 34.0 | % | | |
Industrials | | | | | | | | | | | | | | | | |
Basic | | 937,498 |
| | 894,466 |
| | 5.1 | % | | BBB | | 893,754 |
| | 921,843 |
| | 6.2 | % | | BBB |
Capital Goods | | 1,090,670 |
| | 1,091,523 |
| | 6.2 | % | | BBB+ | | 657,388 |
| | 694,700 |
| | 4.7 | % | | BBB |
Communications | | 1,891,983 |
| | 1,912,375 |
| | 10.8 | % | | BBB | | 1,448,054 |
| | 1,572,181 |
| | 10.6 | % | | BBB+ |
Consumer Cyclical | | 1,015,183 |
| | 1,028,521 |
| | 5.8 | % | | BBB+ | | 665,675 |
| | 709,100 |
| | 4.8 | % | | BBB+ |
Consumer Noncyclical | | 1,762,018 |
| | 1,805,347 |
| | 10.2 | % | | A- | | 1,299,879 |
| | 1,397,510 |
| | 9.4 | % | | BBB+ |
Energy | | 2,064,824 |
| | 1,922,366 |
| | 10.9 | % | | BBB+ | | 1,647,847 |
| | 1,699,885 |
| | 11.2 | % | | BBB |
Technology | | 569,174 |
| | 574,280 |
| | 3.2 | % | | A- | | 465,256 |
| | 485,833 |
| | 3.3 | % | | BBB+ |
Transportation | | 763,055 |
| | 777,939 |
| | 4.4 | % | | A- | | 453,106 |
| | 486,736 |
| | 3.3 | % | | A- |
Other Industrial | | 117,021 |
| | 123,100 |
| | 0.7 | % | | BBB+ | | 108,371 |
| | 118,279 |
| | 0.8 | % | | A- |
Total Industrials | | $ | 10,211,426 |
| | $ | 10,129,917 |
| | 57.3 | % | | | | $ | 7,639,330 |
| | $ | 8,086,067 |
| | 54.3 | % | | |
Utilities | | | | | | | | | | | | | | | | |
Electric | | 1,395,335 |
| | 1,444,368 |
| | 8.2 | % | | BBB+ | | 1,192,487 |
| | 1,309,874 |
| | 8.8 | % | | BBB+ |
Natural Gas | | 315,826 |
| | 323,206 |
| | 1.8 | % | | A- | | 234,761 |
| | 251,110 |
| | 1.7 | % | | A- |
Other Utility | | 244,129 |
| | 255,621 |
| | 1.4 | % | | A- | | 154,458 |
| | 172,124 |
| | 1.2 | % | | A- |
Total Utilities | | $ | 1,955,290 |
| | $ | 2,023,195 |
| | 11.4 | % | | | | $ | 1,581,706 |
| | $ | 1,733,108 |
| | 11.7 | % | | |
Total | | $ | 17,575,507 |
| | $ | 17,708,156 |
| | 100.0 | % | | BBB+ | | $ | 14,010,604 |
| | $ | 14,885,583 |
| | 100.0 | % | | BBB+ |
| | | | | | | | | | | | | | | | |
(1) The Average Credit Rating designations are based on the weighted average ratings from nationally recognized rating organizations, primarily those assigned by S&P. In instances where a S&P rating is not available, the Company will reference the rating provided by Moody’s, and in the absence of both the Company will assign equivalent ratings based on information from the NAIC. |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Ratings of Fixed Maturity Securities (Excludes Funds Withheld Portfolios)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
NAIC Designation (1) | | Rating Agency Designation (2) | | Amortized Cost | | Estimated Fair Value | | % of Total | | Amortized Cost | | Estimated Fair Value | | % of Total | | Amortized Cost | | Estimated Fair Value | | % of Total | | Amortized Cost | | Estimated Fair Value | | % of Total | | Amortized Cost | | Estimated Fair Value | | % of Total |
1 | | AAA/AA/A | | $ | 17,801,017 |
| | $ | 19,231,535 |
| | 64.8 | % | | $ | 16,479,884 |
| | $ | 18,012,729 |
| | 65.7 | % | | $ | 16,880,974 |
| | $ | 18,443,284 |
| | 65.7 | % | | $ | 14,515,363 |
| | $ | 16,887,466 |
| | 65.4 | % | | $ | 14,855,946 |
| | $ | 16,866,777 |
| | 66.1 | % |
2 | | BBB | | 8,838,444 |
| | 8,830,172 |
| | 29.8 | % | | 7,567,172 |
| | 7,691,301 |
| | 28.1 | % | | 7,686,514 |
| | 7,881,514 |
| | 28.1 | % | | 6,957,089 |
| | 7,450,140 |
| | 28.9 | % | | 6,880,383 |
| | 7,258,299 |
| | 28.5 | % |
3 | | BB | | 1,054,449 |
| | 1,001,614 |
| | 3.4 | % | | 1,061,245 |
| | 1,015,762 |
| | 3.7 | % | | 932,629 |
| | 950,069 |
| | 3.4 | % | | 799,090 |
| | 825,796 |
| | 3.2 | % | | 750,152 |
| | 760,531 |
| | 3.0 | % |
4 | | B | | 399,417 |
| | 359,591 |
| | 1.2 | % | | 414,775 |
| | 389,089 |
| | 1.4 | % | | 510,894 |
| | 504,272 |
| | 1.8 | % | | 419,277 |
| | 404,081 |
| | 1.6 | % | | 387,456 |
| | 372,375 |
| | 1.5 | % |
5 | | CCC | | 207,351 |
| | 197,498 |
| | 0.7 | % | | 261,015 |
| | 246,211 |
| | 0.9 | % | | 246,203 |
| | 242,930 |
| | 0.9 | % | | 219,271 |
| | 214,370 |
| | 0.8 | % | | 212,905 |
| | 208,346 |
| | 0.8 | % |
6 | | In or near default | | 22,299 |
| | 22,495 |
| | 0.1 | % | | 60,704 |
| | 56,696 |
| | 0.2 | % | | 48,118 |
| | 41,906 |
| | 0.1 | % | | 23,626 |
| | 19,370 |
| | 0.1 | % | | 18,755 |
| | 14,644 |
| | 0.1 | % |
| | Total | | $ | 28,322,977 |
| | $ | 29,642,905 |
|
| 100.0 | % |
| $ | 25,844,795 |
|
| $ | 27,411,788 |
|
| 100.0 | % |
| $ | 26,305,332 |
|
| $ | 28,063,975 |
|
| 100.0 | % |
| $ | 22,933,716 |
|
| $ | 25,801,223 |
|
| 100.0 | % |
| $ | 23,105,597 |
|
| $ | 25,480,972 |
|
| 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Structured securities held by the Company’s insurance subsidiaries that maintain the National Association of Insurance Commissioners (NAIC) statutory basis of accounting that meet the definition of SSAP No. 43R utilize the NAIC rating methodology. All other securities will continue to utilize the Nationally Recognized Statistical Rating Organizations (NRSRO) ratings, as available, or equivalent rating based on information from the NAIC. |
(2) The Rating Agency Designation includes all “+” or “-” at that rating level (e. g. ‘BBB’ includes ‘BBB+’, ‘BBB’, and ‘BBB-’). |
Structured Fixed Maturity Securities |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
| | Amortized Cost | | Estimated Fair Value | | Amortized Cost | | Estimated Fair Value | | Amortized Cost | | Estimated Fair Value | | Amortized Cost | | Estimated Fair Value | | Amortized Cost | | Estimated Fair Value |
Residential mortgage-backed securities: | | | | | | | | | | | | | | | | | | | | |
Agency | | $ | 602,524 |
| | $ | 634,077 |
| | $ | 614,272 |
| | $ | 657,066 |
| | $ | 626,139 |
| | $ | 656,940 |
| | $ | 644,367 |
| | $ | 692,101 |
| | $ | 639,936 |
| | $ | 677,352 |
|
Non-agency | | 675,474 |
| | 677,400 |
| | 619,886 |
| | 626,394 |
| | 528,593 |
| | 533,939 |
| | 428,048 |
| | 435,573 |
| | 351,931 |
| | 360,544 |
|
Total residential mortgage-backed securities | | 1,277,998 |
| | 1,311,477 |
| | 1,234,158 |
| | 1,283,460 |
| | 1,154,732 |
| | 1,190,879 |
| | 1,072,415 |
| | 1,127,674 |
| | 991,867 |
| | 1,037,896 |
|
Commercial mortgage-backed securities | | 1,456,848 |
| | 1,483,087 |
| | 1,441,845 |
| | 1,491,951 |
| | 1,471,419 |
| | 1,525,469 |
| | 1,448,372 |
| | 1,534,274 |
| | 1,453,657 |
| | 1,532,591 |
|
Asset-backed securities | | 1,219,000 |
| | 1,212,676 |
| | 1,055,760 |
| | 1,061,372 |
| | 1,051,093 |
| | 1,062,624 |
| | 1,082,883 |
| | 1,098,112 |
| | 1,059,660 |
| | 1,069,586 |
|
Total | | $ | 3,953,846 |
| | $ | 4,007,240 |
| | $ | 3,731,763 |
| | $ | 3,836,783 |
| | $ | 3,677,244 |
| | $ | 3,778,972 |
| | $ | 3,603,670 |
| | $ | 3,760,060 |
| | $ | 3,505,184 |
| | $ | 3,640,073 |
|
Reinsurance Group of America, Incorporated Investments (USD thousands)
Gross Unrealized Losses Aging
Fixed Maturity Securities |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
| | Gross Unrealized Losses | | % of Total | | Gross Unrealized Losses | | % of Total | | Gross Unrealized Losses | | % of Total | | Gross Unrealized Losses | | % of Total | | Gross Unrealized Losses | | % of Total |
Less than 20% | | $ | 458,676 |
| | 73.1 | % | | $ | 359,324 |
| | 79.5 | % | | $ | 369,658 |
| | 94.0 | % | | $ | 71,886 |
| | 72.3 | % | | $ | 110,346 |
| | 81.8 | % |
20% or more for less than six months | | 140,568 |
| | 22.4 | % | | 69,197 |
| | 15.3 | % | | 9,253 |
| | 2.3 | % | | 14,581 |
| | 14.7 | % | | 13,698 |
| | 10.1 | % |
20% or more for six months or greater | | 20,003 |
| | 3.2 | % | | 14,480 |
| | 3.2 | % | | 10,328 |
| | 2.6 | % | | 11,546 |
| | 11.6 | % | | 9,254 |
| | 6.9 | % |
Total | | $ | 619,247 |
|
| 98.7 | % |
| $ | 443,001 |
|
| 98.0 | % |
| $ | 389,239 |
|
| 98.9 | % |
| $ | 98,013 |
|
| 98.6 | % |
| $ | 133,298 |
|
| 98.8 | % |
Equity Securities |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
| | Gross Unrealized Losses | | % of Total | | Gross Unrealized Losses | | % of Total | | Gross Unrealized Losses | | % of Total | | Gross Unrealized Losses | | % of Total | | Gross Unrealized Losses | | % of Total |
Less than 20% | | $ | 4,433 |
| | 0.7 | % | | $ | 4,127 |
| | 0.9 | % | | $ | 3,654 |
| | 0.9 | % | | $ | 712 |
| | 0.7 | % | | $ | 1,619 |
| | 1.2 | % |
20% or more for less than six months | | 1,927 |
| | 0.3 | % | | 3,687 |
| | 0.8 | % | | 948 |
| | 0.2 | % | | 737 |
| | 0.7 | % | | — |
| | 0.0 | % |
20% or more for six months or greater | | 1,844 |
| | 0.3 | % | | 1,243 |
| | 0.3 | % | | — |
| | 0.0 | % | | — |
| | 0.0 | % | | 2 |
| | 0.0 | % |
Total | | $ | 8,204 |
|
| 1.3 | % |
| $ | 9,057 |
|
| 2.0 | % |
| $ | 4,602 |
|
| 1.1 | % |
| $ | 1,449 |
|
| 1.4 | % |
| $ | 1,621 |
|
| 1.2 | % |
Reinsurance Group of America, Incorporated Investments (USD thousands) Fixed Maturities and Equity Securities Below Amortized Cost (Excludes Funds Withheld Portfolios)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | As of December 31, 2015 |
| | Less than 12 months | | Equal to or greater than 12 months | | Total |
| | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses |
Investment grade securities: | | | | | | | | | | | | |
Corporate securities | | $ | 6,388,148 |
| | $ | 323,961 |
| | $ | 294,755 |
| | $ | 40,861 |
| | $ | 6,682,903 |
| | $ | 364,822 |
|
Canadian and Canadian provincial governments | | 122,746 |
| | 2,532 |
| | — |
| | — |
| | 122,746 |
| | 2,532 |
|
Residential mortgage-backed securities | | 452,297 |
| | 7,036 |
| | 82,314 |
| | 4,057 |
| | 534,611 |
| | 11,093 |
|
Asset-backed securities | | 581,701 |
| | 9,825 |
| | 199,298 |
| | 7,100 |
| | 780,999 |
| | 16,925 |
|
Commercial mortgage-backed securities | | 514,877 |
| | 9,806 |
| | 31,177 |
| | 997 |
| | 546,054 |
| | 10,803 |
|
U.S. government and agencies | | 1,010,387 |
| | 57,718 |
| | — |
| | — |
| | 1,010,387 |
| | 57,718 |
|
State and political subdivisions | | 157,837 |
| | 5,349 |
| | 13,016 |
| | 3,718 |
| | 170,853 |
| | 9,067 |
|
Other foreign government, supranational, and foreign government-sponsored enterprises | | 702,962 |
| | 18,279 |
| | 38,379 |
| | 4,206 |
| | 741,341 |
| | 22,485 |
|
Investment grade securities | | 9,930,955 |
| | 434,506 |
| | 658,939 |
| | 60,939 |
| | 10,589,894 |
| | 495,445 |
|
| | | | | | | | | | | | |
Below investment grade securities: | | | | | | | | | | | | |
Corporate securities | | 554,688 |
| | 71,171 |
| | 114,427 |
| | 31,076 |
| | 669,115 |
| | 102,247 |
|
Residential mortgage-backed securities | | 22,646 |
| | 282 |
| | 7,679 |
| | 298 |
| | 30,325 |
| | 580 |
|
Asset-backed securities | | 6,772 |
| | 201 |
| | 9,335 |
| | 1,250 |
| | 16,107 |
| | 1,451 |
|
Commercial mortgage-backed securities | | 3,253 |
| | 248 |
| | 767 |
| | 117 |
| | 4,020 |
| | 365 |
|
Other foreign government, supranational, and foreign government-sponsored enterprises | | 60,668 |
| | 7,356 |
| | 31,693 |
| | 11,803 |
| | 92,361 |
| | 19,159 |
|
Below investment grade securities | | 648,027 |
| | 79,258 |
| | 163,901 |
| | 44,544 |
| | 811,928 |
| | 123,802 |
|
Total fixed maturity securities | | $ | 10,578,982 |
| | $ | 513,764 |
| | $ | 822,840 |
| | $ | 105,483 |
| | $ | 11,401,822 |
| | $ | 619,247 |
|
| | | | | | | | | | | | |
Non-redeemable preferred stock | | 12,331 |
| | 2,175 |
| | 12,191 |
| | 3,787 |
| | 24,522 |
| | 5,962 |
|
Other equity securities | | 38,327 |
| | 2,242 |
| | — |
| | — |
| | 38,327 |
| | 2,242 |
|
Total equity securities | | $ | 50,658 |
| | $ | 4,417 |
| | $ | 12,191 |
| | $ | 3,787 |
| | $ | 62,849 |
| | $ | 8,204 |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | As of December 31, 2014 |
| | Less than 12 months | | Equal to or greater than 12 months | | Total |
| | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses |
Investment grade securities: | | | | | | | | | | | | |
Corporate securities | | $ | 1,225,767 |
| | $ | 27,784 |
| | $ | 614,294 |
| | $ | 30,040 |
| | $ | 1,840,061 |
| | $ | 57,824 |
|
Canadian and Canadian provincial governments | | — |
| | — |
| | 1,235 |
| | 7 |
| | 1,235 |
| | 7 |
|
Residential mortgage-backed securities | | 78,864 |
| | 846 |
| | 135,414 |
| | 5,247 |
| | 214,278 |
| | 6,093 |
|
Asset-backed securities | | 332,785 |
| | 4,021 |
| | 109,411 |
| | 4,289 |
| | 442,196 |
| | 8,310 |
|
Commercial mortgage-backed securities | | 78,632 |
| | 564 |
| | 28,375 |
| | 2,461 |
| | 107,007 |
| | 3,025 |
|
U.S. government and agencies | | 81,317 |
| | 89 |
| | 32,959 |
| | 426 |
| | 114,276 |
| | 515 |
|
State and political subdivisions | | 13,780 |
| | 17 |
| | 18,998 |
| | 3,438 |
| | 32,778 |
| | 3,455 |
|
Other foreign government, supranational, and foreign government-sponsored enterprises | | 156,725 |
| | 7,007 |
| | 76,111 |
| | 2,946 |
| | 232,836 |
| | 9,953 |
|
Investment grade securities | | 1,967,870 |
| | 40,328 |
| | 1,016,797 |
| | 48,854 |
| | 2,984,667 |
| | 89,182 |
|
| | | | | | | | | | | | |
Below investment grade securities: | | | | | | | | | | | | |
Corporate securities | | 415,886 |
| | 29,316 |
| | 32,567 |
| | 3,404 |
| | 448,453 |
| | 32,720 |
|
Residential mortgage-backed securities | | 22,836 |
| | 293 |
| | 6,284 |
| | 225 |
| | 29,120 |
| | 518 |
|
Asset-backed securities | | 12,448 |
| | 274 |
| | 7,108 |
| | 1,791 |
| | 19,556 |
| | 2,065 |
|
Commercial mortgage-backed securities | | 3,288 |
| | 249 |
| | 5,580 |
| | 5,385 |
| | 8,868 |
| | 5,634 |
|
State and political subdivisions | | 964 |
| | 43 |
| | — |
| | — |
| | 964 |
| | 43 |
|
Other foreign government, supranational, and foreign government-sponsored enterprises | | 13,986 |
| | 3,136 |
| | — |
| | — |
| | 13,986 |
| | 3,136 |
|
Below investment grade securities | | 469,408 |
| | 33,311 |
| | 51,539 |
| | 10,805 |
| | 520,947 |
| | 44,116 |
|
Total fixed maturity securities | | $ | 2,437,278 |
| | $ | 73,639 |
| | $ | 1,068,336 |
| | $ | 59,659 |
| | $ | 3,505,614 |
| | $ | 133,298 |
|
| | | | | | | | | | | | |
Non-redeemable preferred stock | | 11,619 |
| | 235 |
| | 19,100 |
| | 1,292 |
| | 30,719 |
| | 1,527 |
|
Other equity securities | | — |
| | — |
| | 3,545 |
| | 94 |
| | 3,545 |
| | 94 |
|
Total equity securities | | $ | 11,619 |
| | $ | 235 |
| | $ | 22,645 |
| | $ | 1,386 |
| | $ | 34,264 |
| | $ | 1,621 |
|
Reinsurance Group of America, Incorporated Investments (USD thousands)
Consolidated Investment Related Gains and Losses |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Current Qtr vs. PY Quarter | | | | Year-to-date |
| | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | | | | Dec. 31, | | Dec. 31, | | |
| | 2015 | | 2015 | | 2015 | | 2015 | | 2014 | | | | | 2015 | | 2014 | | Change |
Fixed Maturity and Equity Securities: | | | | | | | | | | | | | | | | | | | | |
Other-than-temporary impairment losses on fixed maturities | | $ | (27,605 | ) | | $ | (23,111 | ) | | $ | (4,137 | ) | | $ | (2,527 | ) | | $ | (6,347 | ) | | $ | (21,258 | ) | | | | $ | (57,380 | ) | | $ | (7,766 | ) | | $ | (49,614 | ) |
Gain on investment activity | | 20,077 |
| | 13,792 |
| | 20,009 |
| | 19,201 |
| | 13,662 |
| | 6,415 |
| | | | 73,079 |
| | 65,435 |
| | 7,644 |
|
Loss on investment activity | | (21,636 | ) | | (22,186 | ) | | (14,475 | ) | | (13,596 | ) | | (11,480 | ) | | (10,156 | ) | | | | (71,893 | ) | | (31,295 | ) | | (40,598 | ) |
Net gain/(loss) on fixed maturity and equity securities | | (29,164 | ) | | (31,505 | ) | | 1,397 |
| | 3,078 |
| | (4,165 | ) | | (24,999 | ) | | | | (56,194 | ) | | 26,374 |
| | (82,568 | ) |
| | | | | | | | | | | | | | | | | | | | |
Other impairment losses and change in mortgage loan provision | | (2,292 | ) | | (636 | ) | | 143 |
| | (4,168 | ) | | 371 |
| | (2,663 | ) | | | | (6,953 | ) | | (5,315 | ) | | (1,638 | ) |
Other non-derivative gain/(loss), net | | 11,824 |
| | (2,006 | ) | | 976 |
| | 17,375 |
| | 2,759 |
| | 9,065 |
| | | | 28,169 |
| | 22,622 |
| | 5,547 |
|
| | | | | | | | | | | | | | | | | | | | |
Free-standing Derivatives: | | | | | | | | | | | | | | | | | | | | |
Credit default swaps | | 1,253 |
| | (8,407 | ) | | (187 | ) | | 2,658 |
| | 2,658 |
| | (1,405 | ) | | | | (4,683 | ) | | 3,938 |
| | (8,621 | ) |
Interest rate swaps - non-hedged | | (9,271 | ) | | 42,014 |
| | (41,729 | ) | | 29,344 |
| | 33,812 |
| | (43,083 | ) | | | | 20,358 |
| | 94,829 |
| | (74,471 | ) |
Interest rate swaps - hedged | | — |
| | — |
| | — |
| | 7 |
| | 10 |
| | (10 | ) | | | | 7 |
| | 19 |
| | (12 | ) |
Foreign currency swaps - hedged (1) | | 2,983 |
| | (2,135 | ) | | — |
| | — |
| | — |
| | 2,983 |
| | | | 848 |
| | — |
| | 848 |
|
Futures | | (6,822 | ) | | 16,655 |
| | (2,183 | ) | | (7,331 | ) | | (6,728 | ) | | (94 | ) | | | | 319 |
| | (9,550 | ) | | 9,869 |
|
CPI swaps | | (55 | ) | | (250 | ) | | 168 |
| | (71 | ) | | (536 | ) | | 481 |
| | | | (208 | ) | | (343 | ) | | 135 |
|
Equity options | | (21,376 | ) | | 15,149 |
| | (2,605 | ) | | (8,067 | ) | | (5,724 | ) | | (15,652 | ) | | | | (16,899 | ) | | (22,472 | ) | | 5,573 |
|
Currency forwards | | (214 | ) | | 707 |
| | (1,433 | ) | | (220 | ) | | (5,746 | ) | | 5,532 |
| | | | (1,160 | ) | | (8,691 | ) | | 7,531 |
|
Bond forwards | | (911 | ) | | 610 |
| | 1,495 |
| | (840 | ) | | — |
| | (911 | ) | | | | 354 |
| | — |
| | 354 |
|
Interest rate options | | — |
| | — |
| | — |
| | 3,276 |
| | 11,490 |
| | (11,490 | ) | | | | 3,276 |
| | 15,641 |
| | (12,365 | ) |
Total free-standing derivatives | | (34,413 | ) | | 64,343 |
| | (46,474 | ) | | 18,756 |
| | 29,236 |
| | (63,649 | ) | | | | 2,212 |
| | 73,371 |
| | (71,159 | ) |
| | | | | | | | | | | | | | | | | | | | |
Embedded Derivatives: | | | | | | | | | | | | | | | | | | | | |
Modified coinsurance and funds withheld treaties | | (27,201 | ) | | (46,169 | ) | | (23,098 | ) | | (2,325 | ) | | (14,523 | ) | | (12,678 | ) | | | | (98,793 | ) | | 198,365 |
| | (297,158 | ) |
GMXB | | 36,437 |
| | (95,373 | ) | | 50,878 |
| | (25,133 | ) | | (52,901 | ) | | 89,338 |
| | | | (33,191 | ) | | (129,224 | ) | | 96,033 |
|
Total embedded derivatives | | 9,236 |
| | (141,542 | ) | | 27,780 |
| | (27,458 | ) | | (67,424 | ) | | 76,660 |
| | | | (131,984 | ) | | 69,141 |
| | (201,125 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net gain/(loss) on total derivatives | | (25,177 | ) | | (77,199 | ) | | (18,694 | ) | | (8,702 | ) | | (38,188 | ) | | 13,011 |
| | | | (129,772 | ) | | 142,512 |
| | (272,284 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total investment related gains / (losses), net | | $ | (44,809 | ) | | $ | (111,346 | ) | | $ | (16,178 | ) | | $ | 7,583 |
| | $ | (39,223 | ) | | $ | (5,586 | ) | | | | $ | (164,750 | ) | | $ | 186,193 |
| | $ | (350,943 | ) |
(1) The company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net gains/(losses) on total derivatives. |
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