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)

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):
 
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))
 





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.


Item 9.01
Financial Statements and Exhibits
(d) Exhibits.
 
 
 
 
Exhibit No.
  
Exhibit
99.1
  
Press Release of Reinsurance Group of America, Incorporated dated January 28, 2016
 
 
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.
 
 
 
 
 
 
 
 
 
 
 
REINSURANCE GROUP OF AMERICA, INCORPORATED
 
 
 
 
Date: January 28, 2016
 
 
By:
 
  /s/ Jack B. Lay
 
 
 
 
 
Jack B. Lay
 
 
 
 
 
Senior Executive Vice President and Chief Financial Officer








EXHIBIT INDEX
 
Exhibit Number
  
Description
 
 
99.1
  
Press Release dated January 28, 2016
 
 
99.2
  
Quarterly Financial Supplement for the quarter ended December 31, 2015




Exhibit 99.1

PRESS RELEASE

REINSURANCE GROUP OF AMERICA REPORTS FOURTH-QUARTER RESULTS

Earnings per diluted share: operating income* $2.84, net income $2.46
Full-year operating return on equity* 11 percent
Continuing strong performance by Global Financial Solutions (GFS) and International segments; much-improved results in Canada
Deployed approximately $500 million toward block transactions and repurchased $375 million of shares for the full year
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.
 
 
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

Net income per diluted share
 
2.46

 
2.75

 
7.46

 
9.78

Operating income*
 
187,950

 
208,288

 
567,084

 
638,049

Operating income per diluted share*
 
2.84

 
2.99

 
8.43

 
9.12

Book value per share
 
94.09

 
102.13

 
 
 
 
Book value per share (excl. Accumulated Other Comprehensive Income “AOCI”)*
 
83.23

 
78.03

 
 
 
 
Total assets
 
50,383,152

 
44,654,300

 
 
 
 
* 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)
 
(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.


- more -





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.



- more -





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
































- more -





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
 
 
Page
 
 
       2016 Guidance
 
 
 
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
Segment Pre-tax Operating Income Summaries and Reconciliations to U.S. GAAP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 








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.





                                        
 
Page 1

    



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.




                                        
 
Page 2

    



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".



 



                                        
 
Page 3

    



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.

                                        
 
Page 4

    



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

                                        
 
Page 5

    



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




                                        
 
Page 6

    




 
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".
 

                                        
 
Page 7

    



 
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
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
Page 8

    



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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



                                        
 
Page 9

    



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

 
$

 
$



                                        
 
Page 10

    




 
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



                                        
 
Page 11

    



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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
Page 12

    



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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
Page 13

    



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

                                        
 
Page 14

    



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


                                        
 
Page 15

    



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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
Page 16

    



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
 


                                        
 
Page 17

    




 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
Page 18

    




 
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
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



                                        
 
Page 19

    




 
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.
 



                                        
 
Page 20

    



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
%
 
 

                                        
 
Page 21

    





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.


                                        
 
Page 22

    



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

 



                                        
 
Page 23

    





 
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
%
 



                                        
 
Page 24

    




 
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

 



                                        
 
Page 25

    



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.
 

                                        
 
Page 26

    
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