- Earnings per diluted share: $3.64 from
net income, $2.80 from operating income*
- ROE 8 percent and Operating ROE* 11
percent for the trailing twelve months
- Reported net premiums increased 10
percent
- Quarterly shareholder dividend raised
11 percent
Reinsurance Group of America, Incorporated (NYSE: RGA), a
leading global provider of life reinsurance, reported net income of
$236.1 million, or $3.64 per diluted share, compared with
$130.4 million, or $1.94 per diluted share, in the prior-year
quarter. Operating income* totaled $181.2 million, or $2.80
per diluted share, compared to $130.3 million, or $1.94 per diluted
share, the year before. Net foreign currency fluctuations had an
adverse effect of $0.06 per diluted share on net income, and $0.04
per diluted share on operating income. A tax-related adjustment
added $0.12 per diluted share in the quarter.
Quarterly Results
Year-to-Date Results ($ in thousands, except per share
data) 2016 2015 2016
2015 Net premiums $ 2,346,945 $ 2,129,043 $ 4,503,950
$ 4,152,895 Net income 236,103 130,391 312,575 255,505 Net income
per diluted share 3.64 1.94 4.81 3.76 Operating income* 181,228
130,270 301,978 252,048 Operating income per diluted share* 2.80
1.94 4.65 3.70 Book value per share 118.32 97.61 Book value per
share, excluding Accumulated Other Comprehensive Income (AOCI)*
87.33 80.30 Total assets 53,876,703 47,435,240
* See ‘Use of Non-GAAP Financial Measures’
below
Consolidated net premiums totaled $2.3 billion this quarter, up
10 percent from last year’s second quarter, primarily due to
organic growth and in-force transactions. Current-period premiums
reflect net adverse foreign currency effects of approximately $45.7
million. Excluding spread-based businesses and the value of
associated derivatives, investment income increased 7 percent over
year-ago levels, reflecting an increase in average invested assets
of approximately 10 percent, offset by the impact of lower yield on
new money and reinvested assets. The average investment yield,
excluding spread businesses, was down 17 basis points to 4.71
percent from the second quarter of 2015, but was 25 basis points
higher than the first-quarter yield. Variable investment income was
strong in both this quarter and the year-ago period, whereas it was
weak in the first quarter of this year.
The effective tax rate was approximately 33.2 percent on net
income, and was approximately 33.7 percent on operating income this
quarter, slightly below an expected range of 34 percent to 35
percent. This was primarily due to generating a
greater-than-expected portion of earnings in jurisdictions that
have lower income tax rates than the U.S. statutory rate. The $0.12
per diluted share tax adjustment primarily affected interest
expense; see further explanation in the Corporate section.
Greig Woodring, chief executive officer, commented, “We are
pleased with the quarter in practically all respects, as the
bottom-line number was very strong. In addition, there were
positive developments in many areas across segments and
geographies, and our investment results reflected
higher-than-normal variable investment income. After a solid first
quarter, our year-to-date EPS and operating EPS were up
considerably over the year-ago period, despite ongoing
macroeconomic headwinds from lower interest rates and relatively
weak foreign currencies. The negative effect of foreign currency
translation on earnings year-to-date was equal to $0.14 per diluted
share.
“Highlights of the quarter included improvement in Canada due to
favorable mortality, continued momentum in our U.S. Asset-Intensive
business, and another good quarter from Asia Pacific. Our U.S.
Traditional operations reported its best quarter in some time,
based upon strong variable investment income and mortality results
that were in line with expectations. Finally, top-line growth was
particularly strong this quarter, based upon solid organic growth
and in-force transactions.
“We repurchased approximately 120,000 RGA common shares during
the quarter, and we continue to pursue a balanced approach to
capital management in terms of deployment into in-force and other
attractive transactions, share repurchases, and shareholder
dividend increases over time. The board of directors increased the
quarterly dividend 11 percent to $0.41 per share. We closed some
smaller in-force transactions during the quarter, and the pipeline
continues to be healthy. Our deployable, excess capital position
was approximately $1.0 billion at June 30, and included the effects
of our senior notes and subordinated debentures offering. Ending
book value per share this quarter was $118.32 including AOCI, and
$87.33 excluding AOCI, a 9 percent increase over that of a year
ago.
“Looking forward, the macroeconomic environment remains
challenging overall, but we continue to see good demand from
clients for our solutions. We expect to continue to execute in both
our traditional and transactional businesses.”
SEGMENT RESULTS
U.S. and Latin America
Traditional
The U.S. and Latin America Traditional segment reported pre-tax
net income of $111.4 million, compared with $82.8 million
in the second quarter of 2015. Pre-tax operating income totaled
$112.3 million for the quarter, compared with
$79.4 million in last year’s second quarter. The
current-period results reflected higher-than-normal variable
investment income, the additive impact of in-force transactions and
mortality experience that was in line with expectations, whereas
last year’s second quarter was affected by elevated individual
mortality claims.
Traditional net premiums increased 12 percent from last year's
second quarter to $1,307.4 million.
Non-Traditional
The Asset-Intensive business reported pre-tax net income of
$94.0 million compared with $55.8 million last year.
Second-quarter pre-tax operating income totaled $54.3 million
compared with $56.4 million last year. Results were strong in both
periods due to favorable investment spreads, while the current
quarter benefited from the impact of a recently added new in-force
block as well.
The Financial Reinsurance business continued to perform well,
reporting pre-tax net income and pre-tax operating income of $14.9
million, up slightly from $14.6 million the year before.
Canada
Traditional
The Canada Traditional segment reported pre-tax net income of
$43.3 million compared with $22.7 million in the second quarter of
2015. Pre-tax operating income totaled $40.9 million compared with
$23.8 million in the second quarter of 2015. The
current-quarter's very strong results were primarily due to
favorable mortality experience. The negative effect of a weaker
Canadian dollar adversely affected pre-tax net income by $2.2
million and pre-tax operating income by $2.1 million.
Reported net premiums increased 7 percent to $240.1 million. Net
premiums suffered adverse effects from foreign currency exchange
rates totaling $11.6 million.
Non-Traditional
The Canada Non-Traditional business segment, which consists of
longevity and fee-based transactions, reported pre-tax net income
and pre-tax operating income of $2.1 million this quarter versus
$3.1 million in the prior-year quarter. Pre-tax net income and
pre-tax operating income included an adverse effect of $0.1 million
due to a relatively weaker Canadian dollar.
Europe, Middle East and Africa (EMEA)
Traditional
The EMEA Traditional segment reported pre-tax net income and
pre-tax operating income of $6.8 million versus $9.2 million in
last year’s second quarter, reflecting unfavorable claims
experience, most notably in the U.K.
Net reported premiums increased 4 percent and totaled $286.9
million, compared with $275.7 million in last year's second
quarter. Foreign currency exchange rates adversely affected net
premiums by $20.2 million.
Non-Traditional
The EMEA Non-Traditional business segment includes longevity,
asset-intensive and fee-based transactions. Pre-tax net income
totaled $27.5 million compared with $31.4 million in the year-ago
period. Pre-tax operating income decreased to $26.1 million
compared with a strong $31.8 million in the year-ago period. The
current-period results showed continued favorable experience in
both the asset-intensive and longevity business, while the year-ago
period experience was unusually favorable. Net foreign currency
fluctuations adversely affected pre-tax net income by $2.0 million
and pre-tax operating income by $1.8 million.
Asia Pacific
Traditional
The Asia Pacific Traditional segment's pre-tax net income and
pre-tax operating income rose to $34.5 million, from $4.3
million in the prior-year period. This quarter reflected solid
results collectively across the Asian operations, most notably Hong
Kong. Additionally, this year's results were modestly profitable in
Australia, a significant improvement versus the year-ago period
that reflected poor results in individual and group morbidity
product lines. Net foreign currency exchange rate fluctuations had
a favorable effect of $0.5 million on pre-tax net income and
pre-tax operating income.
Reported net premiums rose 16 percent to $454.6 million
from $390.5 million in the prior-year period, attributable to
strong overall results in Hong Kong and the effects of new
business, newer treaties in particular. Net premiums reflected a
negative effect of $7.7 million from foreign currency exchange
rates.
Non-Traditional
The Asia Pacific Non-Traditional business segment includes
asset-intensive, fee-based and other various transactions. Pre-tax
net loss in this segment totaled $0.1 million compared with a
pre-tax loss of $1.4 million last year. Pre-tax operating
losses were $6.0 million this quarter versus pre-tax operating
income of $0.7 million in the prior-year quarter, primarily
attributable to poor results in a small number of treaties. Net
foreign currency exchange rate fluctuations had a favorable effect
of $0.2 million on pre-tax net income and an adverse effect of $0.1
million on pre-tax operating income.
Corporate and Other
The Corporate and Other segment’s pre-tax net income increased
to $18.8 million contrasted with a pre-tax net loss of $8.7 million
the year before. Pre-tax operating losses were $12.8 million,
moderately higher than the year-ago pre-tax loss of $9.9 million,
but less than a more typical run rate of approximately $20 million,
attributable mainly to a reduction in tax-related interest expense
resulting from the effective settlement of uncertain tax positions
during the quarter.
Dividend Declaration
The board of directors increased the quarterly dividend 11
percent, to $0.41 from $0.37, payable August 30 to shareholders of
record as of August 9.
Earnings Conference Call
A conference call to discuss second-quarter results will begin
at 11 a.m. Eastern Time on Friday, July 29. Interested parties may
access the call by dialing 877-718-5099 (domestic) or 719-325-4784
(international). The access code is 1371535. 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 Saturday, August 6 at 888-203-1112
(domestic) or 719-457-0820 (international), access code
1371535.
The Company has posted to its website a Quarterly Financial
Supplement that includes financial information for all segments as
well as information on its investment portfolio. Additionally, the
Company posts periodic reports, press releases and other useful
information on its Investor Relations website.
Use of Non-GAAP Financial Measures
RGA uses a non-GAAP financial measure called operating income as
a basis for analyzing financial results. This measure also serves
as a basis for establishing target levels and awards under RGA’s
management incentive programs. Management believes that operating
income, on a pre-tax and after-tax basis, better measures the
ongoing profitability and underlying trends of the Company’s
continuing operations, primarily because that measure excludes
substantially all of the effect of net investment related gains and
losses, as well as changes in the fair value of certain embedded
derivatives and related deferred acquisition costs. These items can
be volatile, primarily due to the credit market and interest rate
environment, and are not necessarily indicative of the performance
of the Company’s underlying businesses. Additionally, operating
income excludes any net gain or loss from discontinued operations,
the cumulative effect of any accounting changes, and other items
that management believes are not indicative of the Company’s
ongoing operations. The definition of operating income can vary by
company and is not considered a substitute for GAAP net income.
Reconciliations to GAAP net income are provided in the following
tables. Additional financial information can be found in the
Quarterly Financial Supplement on RGA’s Investor Relations website
at www.rgare.com in the “Quarterly
Results” tab and in the “Featured Report” section.
Book value per share excluding the 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, Brazil, Canada, China, France, Germany, Hong
Kong, India, Ireland, Italy, Japan, Malaysia, Mexico, the
Netherlands, New Zealand, Poland, Singapore, South Africa, South
Korea, Spain, Taiwan, the United Arab Emirates, the United Kingdom
and the United States. Worldwide, RGA has assumed approximately
$3.1 trillion of life reinsurance in force, and total assets of
$53.9 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, ratios, future financial
performance and growth potential of Reinsurance Group of America,
Incorporated and its subsidiaries (which we refer to in the
previous paragraphs as “we,” “us” or “our”). The words “intend,”
“expect,” “project,” “estimate,” “predict,” “anticipate,” “should,”
“believe,” and other similar expressions also are intended to
identify forward-looking statements. Forward-looking statements are
inherently subject to risks and uncertainties, some of which cannot
be predicted or quantified. Future events and actual results,
performance and achievements could differ materially from those set
forth in, contemplated by or underlying the forward-looking
statements.
Numerous important factors could cause actual results and events
to differ materially from those expressed or implied by
forward-looking statements including, without limitation, (1)
adverse capital and credit market conditions and their impact on
the Company’s liquidity, access to capital and cost of capital, (2)
the impairment of other financial institutions and its effect on
the Company’s business, (3) requirements to post collateral or make
payments due to declines in market value of assets subject to the
Company’s collateral arrangements, (4) the fact that the
determination of allowances and impairments taken on the Company’s
investments is highly subjective, (5) adverse changes in mortality,
morbidity, lapsation or claims experience, (6) changes in the
Company’s financial strength and credit ratings and the effect of
such changes on the Company’s future results of operations and
financial condition, (7) inadequate risk analysis and underwriting,
(8) general economic conditions or a prolonged economic downturn
affecting the demand for insurance and reinsurance in the Company’s
current and planned markets, (9) the availability and cost of
collateral necessary for regulatory reserves and capital, (10)
market or economic conditions that adversely affect the value of
the Company’s investment securities or result in the impairment of
all or a portion of the value of certain of the Company’s
investment securities, that in turn could affect regulatory
capital, (11) market or economic conditions that adversely affect
the Company’s ability to make timely sales of investment
securities, (12) risks inherent in the Company’s risk management
and investment strategy, including changes in investment portfolio
yields due to interest rate or credit quality changes, (13)
fluctuations in U.S. or foreign currency exchange rates, interest
rates, or securities and real estate markets, (14) adverse
litigation or arbitration results, (15) the adequacy of reserves,
resources and accurate information relating to settlements, awards
and terminated and discontinued lines of business, (16) the
stability of and actions by governments and economies in the
markets in which the Company operates, including ongoing
uncertainties regarding the amount of United States sovereign debt
and the credit ratings thereof, (17) competitive factors and
competitors’ responses to the Company’s initiatives, (18) the
success of the Company’s clients, (19) successful execution of the
Company’s entry into new markets, (20) successful development and
introduction of new products and distribution opportunities, (21)
the Company’s ability to successfully integrate acquired blocks of
business and entities, (22) action by regulators who have authority
over the Company’s reinsurance operations in the jurisdictions in
which it operates, (23) the Company’s dependence on third parties,
including those insurance companies and reinsurers to which the
Company cedes some reinsurance, third-party investment managers and
others, (24) the threat of natural disasters, catastrophes,
terrorist attacks, epidemics or pandemics anywhere in the world
where the Company or its clients do business, (25) interruption or
failure of the Company’s telecommunication, information technology
or other operational systems, or the Company’s failure to maintain
adequate security to protect the confidentiality or privacy of
personal or sensitive data stored on such systems, (26) changes in
laws, regulations, and accounting standards applicable to the
Company, its subsidiaries, or its business, (27) the effect of the
Company’s status as an insurance holding company and regulatory
restrictions on its ability to pay principal of and interest on its
debt obligations, and (28) other risks and uncertainties described
in this document and in the Company’s other filings with the
Securities and Exchange Commission.
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, 2015.
REINSURANCE GROUP OF AMERICA, INCORPORATED
AND SUBSIDIARIES
Reconciliation of Consolidated Net Income
to Operating Income
(Dollars in thousands)
(Unaudited) Three Months EndedJune 30, Six Months EndedJune
30, 2016 2015 2016 2015 Net income $
236,103 $ 130,391 $ 312,575 $ 255,505 Reconciliation to operating
income: Capital (gains) losses, derivatives and other, included in
investment related (gains) losses, net (46,490 ) 27,152 (68,217 )
12,567 Capital (gains) losses on funds withheld, included in
investment income, net of related expenses (7,577 ) (1,951 )
(10,816 ) (9,363 ) Embedded derivatives: Included in investment
related (gains) losses, net (31,739 ) (18,056 ) 69,134 (209 )
Included in interest credited (11,287 ) (6,817 ) 7,660 (114 ) DAC
offset, net 42,147 (770 ) (7,889 ) (6,589 ) Investment income on
unit-linked variable annuities (1,928 ) — (2,193 ) — Interest
credited on unit-linked variable annuities 1,928 — 2,193 —
Non-investment derivatives 71 321 (469 ) 251
Operating income $ 181,228 $ 130,270 $ 301,978
$ 252,048
Reconciliation of Consolidated Income
before Income Taxes to Pre-tax Operating Income
(Dollars in thousands)
(Unaudited) Three Months EndedJune 30, Six Months EndedJune
30, 2016 2015 2016 2015 Income before
income taxes $ 353,223 $ 213,790 $ 460,803 $ 397,915 Reconciliation
to pre-tax operating income: Capital (gains) losses, derivatives
and other, included in investment related (gains) losses, net
(67,100 ) 41,526 (99,068 ) 20,580 Capital (gains) losses on funds
withheld, included in investment income, net of related expenses
(11,657 ) (3,002 ) (16,640 ) (14,404 ) Embedded derivatives:
Included in investment related (gains) losses, net (48,829 )
(27,780 ) 106,360 (322 ) Included in interest credited (17,364 )
(10,488 ) 11,785 (175 ) DAC offset, net 64,841 (1,187 ) (12,137 )
(10,138 ) Investment income on unit-linked variable annuities
(2,966 ) — (3,374 ) — Interest credited on unit-linked variable
annuities 2,966 — 3,374 — Non-investment derivatives 110 493
(721 ) 385 Pre-tax operating income $ 273,224
$ 213,352 $ 450,382 $ 393,841
REINSURANCE GROUP OF AMERICA, INCORPORATED
AND SUBSIDIARIES
Reconciliation of Pre-tax Net Income to
Pre-tax Operating Income
(Dollars in thousands)
(Unaudited) Three Months Ended June 30, 2016
Pre-tax netincome (loss)
Capital
(gains) losses,
derivatives
and other, net
Change invalue ofembeddedderivatives,
net
Pre-taxoperatingincome (loss)
U.S. and Latin America: Traditional $ 111,430 $ 1 $ 881 $ 112,312
Non-Traditional: Asset Intensive 93,979 (64,277 ) (1) 24,621 (2)
54,323 Financial Reinsurance 14,875 — — 14,875
Total U.S. and Latin America 220,284 (64,276 ) 25,502
181,510 Canada Traditional 43,309 (2,402 ) — 40,907 Canada
Non-Traditional 2,128 — — 2,128 Total
Canada 45,437 (2,402 ) — 43,035 EMEA Traditional 6,834 — — 6,834
EMEA Non-Traditional 27,469 (1,341 ) — 26,128
Total EMEA 34,303 (1,341 ) — 32,962 Asia Pacific Traditional 34,482
— — 34,482 Asia Pacific Non-Traditional (73 ) (5,925 ) —
(5,998 ) Total Asia Pacific 34,409 (5,925 ) — 28,484 Corporate and
Other 18,790 (31,557 ) — (12,767 ) Consolidated $
353,223 $ (105,501 ) $ 25,502 $ 273,224
(1) Asset Intensive is net of
$(26,854) DAC offset.
(2) Asset Intensive is net of
$91,695 DAC offset.
(Unaudited) Three Months Ended June 30, 2015
Pre-tax netincome (loss)
Capital(gains) losses,derivativesand
other, net
Change invalue ofembeddedderivatives,
net
Pre-taxoperatingincome (loss)
U.S. and Latin America: Traditional $ 82,793 $ (2 ) $ (3,358 ) $
79,433 Non-Traditional: Asset Intensive 55,750 25,739 (1) (25,087 )
(2) 56,402 Financial Reinsurance 14,643 — —
14,643 Total U.S. and Latin America 153,186 25,737 (28,445 )
150,478 Canada Traditional 22,736 1,023 — 23,759 Canada
Non-Traditional 3,094 — — 3,094 Total
Canada 25,830 1,023 — 26,853 EMEA Traditional 9,159 — — 9,159 EMEA
Non-Traditional 31,432 402 — 31,834
Total EMEA 40,591 402 — 40,993 Asia Pacific Traditional 4,315 — —
4,315 Asia Pacific Non-Traditional (1,405 ) 2,056 —
651 Total Asia Pacific 2,910 2,056 — 4,966 Corporate and
Other (8,727 ) (1,211 ) — (9,938 ) Consolidated $ 213,790
$ 28,007 $ (28,445 ) $ 213,352
(1) Asset Intensive is net of
$(11,010) DAC offset.
(2) Asset Intensive is net of
$9,823 DAC offset.
REINSURANCE GROUP OF AMERICA, INCORPORATED
AND SUBSIDIARIES
Reconciliation of Pre-tax Net Income to
Pre-tax Operating Income
(Dollars in thousands)
(Unaudited) Six Months Ended June 30, 2016
Pre-tax netincome (loss)
Capital(gains) losses,derivativesand
other, net
Change invalue ofembeddedderivatives,
net
Pre-taxoperatingincome (loss)
U.S. and Latin America: Traditional $ 162,528 $ 66 $ 2,916 $
165,510 Non-Traditional: Asset Intensive 63,149 (80,359 ) (1)
116,801 (2) 99,591 Financial Reinsurance 30,809 — —
30,809 Total U.S. and Latin America 256,486 (80,293 )
119,717 295,910 Canada Traditional 63,404 (3,133 ) — 60,271 Canada
Non-Traditional 2,720 — — 2,720 Total
Canada 66,124 (3,133 ) — 62,991 EMEA Traditional 5,718 (5 ) — 5,713
EMEA Non-Traditional 52,893 (1,154 ) — 51,739
Total EMEA 58,611 (1,159 ) — 57,452 Asia Pacific Traditional 75,642
(16 ) — 75,626 Asia Pacific Non-Traditional 8,480 (7,036 ) —
1,444 Total Asia Pacific 84,122 (7,052 ) — 77,070
Corporate and Other (4,540 ) (38,501 ) — (43,041 )
Consolidated $ 460,803 $ (130,138 ) $ 119,717 $
450,382
(1) Asset Intensive is net of
$(13,709) DAC offset.
(2) Asset Intensive is net of
$1,572 DAC offset.
(Unaudited) Six Months Ended June 30, 2015
Pre-tax netincome (loss)
Capital(gains) losses,derivativesand
other, net
Change invalue ofembeddedderivatives,
net
Pre-taxoperatingincome (loss)
U.S. and Latin America: Traditional $ 100,636 $ (1 ) $ (886 ) $
99,749 Non-Traditional: Asset Intensive 97,890 2,347 (1) (3,501 )
(2) 96,736 Financial Reinsurance 27,008 — —
27,008 Total U.S. and Latin America 225,534 2,346 (4,387 )
223,493 Canada Traditional 45,463 (4,531 ) — 40,932 Canada
Non-Traditional 7,225 — — 7,225 Total
Canada 52,688 (4,531 ) — 48,157 EMEA Traditional 19,641 (49 ) —
19,592 EMEA Non-Traditional 51,066 (597 ) — 50,469
Total EMEA 70,707 (646 ) — 70,061 Asia Pacific Traditional
56,963 — — 56,963 Asia Pacific Non-Traditional 8,740 2,035
— 10,775 Total Asia Pacific 65,703 2,035 —
67,738 Corporate and Other (16,717 ) 1,109 — (15,608
) Consolidated $ 397,915 $ 313 $ (4,387 ) $ 393,841
(1) Asset Intensive is net of
$(6,248) DAC offset.
(2) Asset Intensive is net of
$(3,890) DAC offset.
REINSURANCE GROUP OF AMERICA, INCORPORATED
AND SUBSIDIARIES
Per Share and Shares Data
(In thousands, except per share data)
(Unaudited) Three Months EndedJune 30, Six Months EndedJune
30, 2016 2015 2016 2015 Earnings per share from net
income: Basic earnings per share $ 3.68 $ 1.97 $ 4.86 $ 3.80
Diluted earnings per share $ 3.64 $ 1.94 $ 4.81 $ 3.76
Diluted earnings per share from operating income $ 2.80 $ 1.94 $
4.65 $ 3.70 Weighted average number of common and common equivalent
shares outstanding 64,796 67,120 65,008
68,030
(Unaudited)
At June 30,
2016 2015 Treasury shares 15,068 12,716 Common shares outstanding
64,070 66,422 Book value per share outstanding $ 118.32 $ 97.61
Book value per share outstanding, before impact of AOCI $ 87.33 $
80.30
REINSURANCE GROUP OF AMERICA, INCORPORATED
AND SUBSIDIARIES
Condensed Consolidated Statements of
Income
(Dollars in thousands)
(Unaudited) Three Months EndedJune 30, Six Months EndedJune
30, 2016 2015 2016 2015 Revenues: Net
premiums $ 2,346,945 $ 2,129,043 $ 4,503,950 $ 4,152,895 Investment
income, net of related expenses
507,666
450,539
924,932
877,430 Investment related gains (losses), net:
Other-than-temporary impairments on fixed maturity securities (846
) (4,137 ) (34,663 ) (6,664 ) Other investment related gains
(losses), net 119,110 (12,041 ) 32,041 (1,931 ) Total
investment related gains (losses), net 118,264 (16,178 ) (2,622 )
(8,595 ) Other revenue 66,193 66,936 125,376
129,223 Total revenues
3,039,068
2,630,340
5,551,636
5,150,953 Benefits and expenses: Claims and other
policy benefits 1,997,502 1,866,183 3,884,266 3,641,634 Interest
credited 95,849 77,246 183,754 197,924 Policy acquisition costs and
other insurance expenses 405,681 300,412 639,444 577,455 Other
operating expenses
159,895
131,600
317,319
253,218 Interest expense 20,331 35,851 53,138 71,478 Collateral
finance and securitization expense 6,587 5,258 12,912
11,329 Total benefits and expenses
2,685,845
2,416,550
5,090,833
4,753,038 Income before income taxes 353,223 213,790
460,803 397,915 Provision for income taxes 117,120 83,399
148,228 142,410 Net income $ 236,103 $
130,391 $ 312,575 $ 255,505
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160728006603/en/
Reinsurance Group of America, IncorporatedJeff Hopson,
636-736-7000Senior Vice President - Investor Relations
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