- Net income available to RGA shareholders of $4.19 per diluted
share
- Adjusted operating income* of $5.20 per diluted share
- Premium growth of 4.9% over the prior-year quarter, 10.1% on a
constant currency basis
- ROE 6.4% and adjusted operating ROE* 7.9% for the trailing
twelve months
- Deployed capital of $100 million into transactions
- Total shareholder capital returns of $79 million: $25 million
of share repurchases and $54 million shareholder dividends
- Global estimated COVID-19 impacts1 of approximately $89 million
on a pre-tax basis, or $1.00 per diluted share2
Reinsurance Group of America, Incorporated (NYSE: RGA), a
leading global provider of life and health reinsurance, reported
third quarter net income available to RGA shareholders of $284
million, or $4.19 per diluted share, compared with net loss
available to RGA shareholders of $22 million, or $0.32 per diluted
share, in the prior-year quarter. Adjusted operating income*
totaled $352 million, or $5.20 per diluted share, compared with
adjusted operating loss of $75 million, or $1.11 per diluted share,
the year before. Net foreign currency fluctuations had a favorable
effect of $0.12 per diluted share on net income available to RGA
shareholders and an adverse effect of $0.15 per diluted share on
adjusted operating income as compared with the prior year.
Quarterly Results
Year-to-Date Results
($ in millions, except per share
data)
2022
2021
2022
2021
Net premiums
$
3,247
$
3,094
$
9,632
$
9,106
Net income (loss) available to RGA
shareholders
284
(22
)
419
461
Net income (loss) available to RGA
shareholders per diluted share
4.19
(0.32
)
6.19
6.74
Adjusted operating income (loss)*
352
(75
)
775
115
Adjusted operating income (loss) per
diluted share*
5.20
(1.11
)
11.46
1.68
Book value per share
54.66
190.60
Book value per share, excluding
accumulated other comprehensive income (AOCI)*
143.91
137.60
Total assets
82,705
91,449
* See ‘Use of Non-GAAP Financial Measures’
below
1
COVID-19 impact estimates include
mortality and morbidity claims of approximately $89 million with no
offsetting impact from longevity in the quarter.
2
Tax effected at 24%.
In the third quarter, consolidated net premiums totaled $3.2
billion, an increase of 4.9% over last year’s third quarter, with
an adverse net foreign currency effect of $160 million. Excluding
the net foreign currency effect, consolidated net premiums
increased 10.1%.
Compared with the year-ago period, excluding spread-based
businesses, third quarter investment income decreased 7.7%,
reflecting lower variable investment income in the quarter. Average
investment yield decreased to 4.40% in the third quarter due to
lower variable investment income compared with 4.95% in the prior
year.
The effective tax rate for the quarter was 22.3% on pre-tax
income.
The adjusted operating effective tax rate for the quarter was
22.2%, in line with the expected range of 23% to 24%.
Anna Manning, President and Chief Executive Officer, commented,
“This was another strong quarter for us, following the record level
of earnings in the second quarter.
“In the quarter, we had positive contributions from a range of
segments and businesses. Premium growth on a constant currency
basis was 10.1%, and we had another active and successful quarter
for in-force transactions, deploying $100 million of capital.
COVID-19 claim costs were comfortably absorbed, and our underlying
non-COVID-19 mortality was favorable in many markets. Our balance
sheet remains strong, and we ended the quarter with excess capital
of approximately $1.3 billion.
“The underlying protection markets are active, organic new
business activity is healthy, our in-force transactions pipelines
are very robust, and we are better positioned to deliver valuable
solutions to our clients than ever before.
“This quarter provides further evidence of the substantial value
added through client-centered, focused execution on our strategy
even during the challenges of COVID-19, and we are in a great
position to continue the momentum going forward.”
SEGMENT RESULTS
U.S. and Latin America
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Net premiums
$
1,640
$
1,550
$
4,812
$
4,547
Pre-tax income (loss)
204
(126
)
247
(329
)
Pre-tax adjusted operating income
(loss)
196
(121
)
205
(331
)
- Quarterly results reflected favorable individual mortality
experience, modestly offset by $45 million of COVID-19 claim
costs.
- Individual Health experience was very favorable, driven by an
assumption update and favorable incurred claims experience.
- Group experience was favorable, primarily due to the disability
line of business.
- Additional COVID-19 claim costs in Group and Latin America
totaled $7 million.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Asset-Intensive:
Pre-tax income
$
48
$
106
$
57
$
329
Pre-tax adjusted operating income
72
93
213
268
Capital Solutions:
Pre-tax income
22
22
118
68
Pre-tax adjusted operating income
22
22
118
68
- Asset-Intensive results for the quarter reflected favorable
overall experience.
- Capital Solutions results for the quarter were in line with
expectations.
Canada
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Net premiums
$
293
$
289
$
911
$
870
Pre-tax income
32
44
54
100
Pre-tax adjusted operating income
33
44
62
101
- Foreign currency exchange rates had an adverse effect of $11
million on net premiums for the quarter.
- Quarterly results were in line with expectations, absorbing $3
million of COVID-19 claim costs.
- Foreign currency exchange rates had an adverse effect of $1
million on pre-tax income and pre-tax adjusted operating income for
the quarter.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Pre-tax income
$
4
$
—
$
21
$
10
Pre-tax adjusted operating income
4
—
21
10
- Quarterly results were in line with expectations.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and pre-tax adjusted operating income for the
quarter.
Europe, Middle East and Africa (EMEA)
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Net premiums
$
436
$
432
$
1,314
$
1,303
Pre-tax income (loss)
1
(91
)
(3
)
(171
)
Pre-tax adjusted operating income
(loss)
1
(91
)
(3
)
(171
)
- Foreign currency exchange rates had an adverse effect of $68
million on net premiums for the quarter.
- Quarterly results reflected unfavorable U.K. mortality
experience and $5 million of COVID-19 claim costs, partially offset
by favorable results in other markets.
- Foreign currency exchange rates had an adverse effect of $1
million on pre-tax income and pre-tax adjusted operating income for
the quarter.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Pre-tax income
$
31
$
85
$
149
$
228
Pre-tax adjusted operating income
49
62
194
187
- Quarterly results reflected the unfavorable impact of client
reporting updates.
- Foreign currency exchange rates had an adverse effect of $4
million on pre-tax income and $8 million on pre-tax adjusted
operating income for the quarter.
Asia Pacific
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Net premiums
$
660
$
626
$
1,950
$
1,851
Pre-tax income (loss)
118
(96
)
227
(67
)
Pre-tax adjusted operating income
(loss)
118
(96
)
227
(67
)
- Foreign currency exchange rates had an adverse effect of $50
million on net premiums for the quarter.
- Quarterly results reflected favorable underwriting experience,
absorbing $8 million of COVID-19 claim costs, primarily related to
medical hospitalization claims for at-home sickness benefits in
Japan.
- Australia reported a modest profit for the quarter, driven by
favorable group experience.
- Foreign currency exchange rates had an adverse effect of $6
million on pre-tax income and $7 million on pre-tax adjusted
operating income for the quarter.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Net premiums
$
69
$
65
$
172
$
166
Pre-tax income (loss)
(2
)
6
(124
)
65
Pre-tax adjusted operating income
13
25
62
64
- Quarterly results reflected unfavorable experience, including
$21 million of COVID-19 claim costs related to medical
hospitalization claims for at-home sickness benefits in Japan.
- Foreign currency exchange rates had a favorable effect of $20
million on pre-tax loss and $2 million on pre-tax adjusted
operating income for the quarter.
Corporate and Other
Quarterly Results
Year-to-Date Results
($ in millions)
2022
2021
2022
2021
Pre-tax income (loss)
$
(92
)
$
16
$
(186
)
$
401
Pre-tax adjusted operating income
(loss)
(56
)
(27
)
(83
)
28
- Third quarter pre-tax adjusted operating loss was unfavorable
as compared to the quarterly average run rate, primarily due to
higher general expenses and interest expense.
- On a year-to-date basis, results are in line with the average
run rate.
Dividend Declaration
Effective November 1, 2022, the board of directors declared a
regular quarterly dividend of $0.80, payable November 29, 2022, to
shareholders of record as of November 15, 2022.
Earnings Conference Call
A conference call to discuss third quarter results will begin at
10 a.m. Eastern Time on Friday, November 4. Interested parties may
access the call by dialing 1-877-270-2148 (412-902-6510
international) and asking to be joined into the Reinsurance Group
of America, Incorporated (RGA) call. 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.
The Company has posted to its website an earnings presentation
and 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 adjusted 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
adjusted 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, adjusted operating income excludes any net gain or
loss from discontinued operations, the cumulative effect of any
accounting changes, tax reform and other items that management
believes are not indicative of the Company’s ongoing operations.
The definition of adjusted operating income can vary by company and
is not considered a substitute for GAAP net income.
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.
Adjusted operating income per diluted share is a non-GAAP
financial measure calculated as adjusted operating income divided
by weighted average diluted shares outstanding. Adjusted operating
return on equity is a non-GAAP financial measure calculated as
adjusted operating income divided by average stockholders’ equity
excluding AOCI. Similar to adjusted operating income, management
believes these non-GAAP financial measures better reflect the
ongoing profitability and underlying trends of the Company’s
continuing operations, they also serve as a basis for establishing
target levels and awards under RGA’s management incentive
programs.
Reconciliations from GAAP net income, book value per share, net
income per diluted share and average stockholders’ equity 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 “Financial
Information” section.
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a
global industry leader specializing in life and health reinsurance
and financial solutions that help clients effectively manage risk
and optimize capital. Founded in 1973, RGA is one of the world’s
largest and most respected reinsurers and is guided by a
fundamental purpose: to make financial protection accessible to
all. RGA is widely recognized for superior risk management and
underwriting expertise, innovative product design, and dedicated
client focus. RGA serves clients and partners in key markets around
the world and has approximately $3.3 trillion of life reinsurance
in force and assets of $82.7 billion as of September 30, 2022. To
learn more about RGA and its businesses, visit www.rgare.com.
Follow RGA on LinkedIn, Twitter, and Facebook.
Cautionary Note Regarding Forward-Looking Statements
This document 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
future operations, strategies, earnings, revenues, income or loss,
ratios, financial performance and growth potential of the Company.
Forward-looking statements often contain words and phrases such as
“believe,” “expect,” “anticipate,” “may,” “could,” “intend,”
“intent,” “belief,” “estimate,” “project,” “plan,” “predict,”
“foresee,” “likely,” “will” and other similar expressions.
Forward-looking statements are based on management’s current
expectations and beliefs concerning future developments and their
potential effects on the Company. Forward-looking statements are
not a guarantee of future performance and are 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.
The effects of the COVID-19 pandemic and the response thereto on
economic conditions, the financial markets and insurance risks, and
the resulting effects on the Company’s financial results,
liquidity, capital resources, financial metrics, investment
portfolio and stock price, could cause actual results and events to
differ materially from those expressed or implied by
forward-looking statements. Further, any estimates, projections,
illustrative scenarios or frameworks used to plan for potential
effects of the pandemic are dependent on numerous underlying
assumptions and estimates that may not materialize. Additionally,
numerous other important factors (whether related to, resulting
from or exacerbated by the COVID-19 pandemic or otherwise) could
also cause results and events to differ materially from those
expressed or implied by forward-looking statements, including,
without limitation: (1) adverse changes in mortality, morbidity,
lapsation or claims experience, (2) inadequate risk analysis and
underwriting, (3) adverse capital and credit market conditions and
their impact on the Company’s liquidity, access to capital and cost
of capital, (4) 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, (5) the
availability and cost of collateral necessary for regulatory
reserves and capital, (6) requirements to post collateral or make
payments due to declines in market value of assets subject to the
Company’s collateral arrangements, (7) action by regulators who
have authority over the Company’s reinsurance operations in the
jurisdictions in which it operates, (8) the effect of the Company
parent’s status as an insurance holding company and regulatory
restrictions on its ability to pay principal of and interest on its
debt obligations, (9) general economic conditions or a prolonged
economic downturn affecting the demand for insurance and
reinsurance in the Company’s current and planned markets, (10) the
impairment of other financial institutions and its effect on the
Company’s business, (11) fluctuations in U.S. or foreign currency
exchange rates, interest rates, or securities and real estate
markets, (12) 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, (13) market or economic conditions that
adversely affect the Company’s ability to make timely sales of
investment securities, (14) 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,
(15) the fact that the determination of allowances and impairments
taken on the Company’s investments is highly subjective, (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 U.S. sovereign debt and the
credit ratings thereof, (17) 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, (18) financial performance of the Company’s
clients, (19) the threat of natural disasters, catastrophes,
terrorist attacks, epidemics or pandemics anywhere in the world
where the Company or its clients do business, (20) competitive
factors and competitors’ responses to the Company’s initiatives,
(21) development and introduction of new products and distribution
opportunities, (22) execution of the Company’s entry into new
markets, (23) integration of acquired blocks of business and
entities, (24) 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 and intellectual property stored on such systems, (25) adverse
litigation or arbitration results, (26) the adequacy of reserves,
resources and accurate information relating to settlements, awards
and terminated and discontinued lines of business, (27) changes in
laws, regulations, and accounting standards applicable to the
Company or its business, including Long Duration Targeted
Improvement accounting changes and (28) other risks and
uncertainties described in this document and in the Company’s other
filings with the Securities and Exchange Commission (“SEC”).
Forward-looking statements should be evaluated together with the
many risks and uncertainties that affect the Company’s business,
including those mentioned in this document and described in the
periodic reports the Company files with the SEC. These
forward-looking statements speak only as of the date on which they
are made. The Company does not undertake any obligation to update
these forward-looking statements, even though the Company’s
situation may change in the future. For a discussion of these risks
and uncertainties that could cause actual results to differ
materially from those contained in the forward-looking statements,
you are advised to see Item 1A – “Risk Factors” in the Company’s
2021 Annual Report on Form 10-K, as may be supplemented by Item 1A
– “Risk Factors” in the Company’s subsequent Quarterly Reports on
Form 10-Q.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated
Net Income to Adjusted Operating Income
(Dollars in millions, except per
share data)
(Unaudited)
Three Months Ended September
30,
2022
2021
Diluted Earnings Per Share
Diluted Earnings Per Share
Net income (loss) available to RGA
shareholders
$
284
$
4.19
$
(22
)
$
(0.32
)
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, included in investment related gains/losses, net
120
1.79
(53
)
(0.79
)
Capital (gains) losses on funds withheld,
included in investment income, net of related expenses
4
0.06
(1
)
(0.01
)
Embedded derivatives:
Included in investment related
gains/losses, net
(3
)
(0.04
)
13
0.19
Included in interest credited
(8
)
(0.12
)
(2
)
(0.03
)
DAC offset, net
9
0.13
1
0.01
Investment (income) loss on unit-linked
variable annuities
4
0.06
2
0.03
Interest credited on unit-linked variable
annuities
(4
)
(0.06
)
(2
)
(0.03
)
Interest expense on uncertain tax
positions
1
0.01
1
0.01
Non-investment derivatives and other
(56
)
(0.83
)
(3
)
(0.04
)
Uncertain tax positions and other tax
related items
—
—
(9
)
(0.13
)
Net income attributable to noncontrolling
interest
1
0.01
—
—
Adjusted operating income (loss)
$
352
$
5.20
$
(75
)
$
(1.11
)
(Unaudited)
Nine Months Ended September
30,
2022
2021
Diluted Earnings Per Share
Diluted Earnings Per Share
Net income available to RGA
shareholders
$
419
$
6.19
$
461
$
6.74
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, included in investment related gains/losses, net
365
5.41
(314
)
(4.60
)
Capital (gains) losses on funds withheld,
included in investment income, net of related expenses
17
0.25
(3
)
(0.04
)
Embedded derivatives:
Included in investment related
gains/losses, net
66
0.98
(40
)
(0.58
)
Included in interest credited
(43
)
(0.64
)
(28
)
(0.41
)
DAC offset, net
7
0.10
9
0.13
Investment (income) loss on unit-linked
variable annuities
17
0.25
1
0.01
Interest credited on unit-linked variable
annuities
(17
)
(0.25
)
(1
)
(0.01
)
Interest expense on uncertain tax
positions
1
0.01
6
0.09
Non-investment derivatives and other
(63
)
(0.93
)
(6
)
(0.09
)
Uncertain tax positions and other tax
related items
4
0.06
30
0.44
Net income attributable to noncontrolling
interest
2
0.03
—
—
Adjusted operating income
$
775
$
11.46
$
115
$
1.68
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated
Effective Income Tax Rates
(Dollars in millions)
(Unaudited)
Three Months Ended September 30,
2022
Nine Months Ended September 30,
2022
Pre-tax Income (Loss)
Income Taxes
Effective Tax Rate (1)
Pre-tax Income (Loss)
Income Taxes
Effective Tax Rate (1)
GAAP income
$
366
$
81
22.3
%
$
560
$
139
24.9
%
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, included in investment related gains/losses, net
153
33
475
110
Capital (gains) losses on funds withheld,
included in investment income, net of related expenses
5
1
22
5
Embedded derivatives:
Included in investment related
gains/losses, net
(4
)
(1
)
83
17
Included in interest credited
(10
)
(2
)
(54
)
(11
)
DAC offset, net
12
3
9
2
Investment (income) loss on unit-linked
variable annuities
5
1
22
5
Interest credited on unit-linked variable
annuities
(5
)
(1
)
(22
)
(5
)
Interest expense on uncertain tax
positions
1
—
1
—
Non-investment derivatives and other
(71
)
(15
)
(80
)
(17
)
Uncertain tax positions and other tax
related items
—
—
—
(4
)
Adjusted operating income
$
452
$
100
22.2
%
$
1,016
$
241
23.7
%
(1)
The Company rounds amounts in the
financial statements to millions and calculates the effective tax
rate from the underlying whole-dollar amounts. Thus certain amounts
may not recalculate based on the numbers due to rounding.
Reconciliation of Consolidated
Income before Income Taxes to Pre-tax Adjusted Operating Income
(Dollars in millions)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Income (loss) before income taxes
$
366
$
(34
)
$
560
$
634
Reconciliation to pre-tax adjusted
operating income:
Capital (gains) losses, derivatives and
other, included in investment related gains/losses, net
153
(66
)
475
(398
)
Capital (gains) losses on funds withheld,
included in investment income, net of related expenses
5
(2
)
22
(4
)
Embedded derivatives:
Included in investment related
gains/losses, net
(4
)
16
83
(51
)
Included in interest credited
(10
)
(3
)
(54
)
(36
)
DAC offset, net
12
2
9
12
Investment (income) loss on unit-linked
variable annuities
5
2
22
1
Interest credited on unit-linked variable
annuities
(5
)
(2
)
(22
)
(1
)
Interest expense on uncertain tax
positions
1
2
1
8
Non-investment derivatives and other
(71
)
(4
)
(80
)
(8
)
Pre-tax adjusted operating income
(loss)
$
452
$
(89
)
$
1,016
$
157
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Pre-tax Income
to Pre-tax Adjusted Operating Income
(Dollars in millions)
(Unaudited)
Three Months Ended September 30,
2022
Pre-tax income (loss)
Capital
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax adjusted operating
income (loss)
U.S. and Latin America:
Traditional
$
204
$
(1
)
$
(7
)
$
196
Financial Solutions:
Asset-Intensive
48
41
(1
)
(17
)
(2
)
72
Capital Solutions
22
—
—
22
Total U.S. and Latin America
274
40
(24
)
290
Canada Traditional
32
1
—
33
Canada Financial Solutions
4
—
—
4
Total Canada
36
1
—
37
EMEA Traditional
1
—
—
1
EMEA Financial Solutions
31
18
—
49
Total EMEA
32
18
—
50
Asia Pacific Traditional
118
—
—
118
Asia Pacific Financial Solutions
(2
)
15
—
13
Total Asia Pacific
116
15
—
131
Corporate and Other
(92
)
36
—
(56
)
Consolidated
$
366
$
110
$
(24
)
$
452
(1) Asset-Intensive is net of $22
DAC offset.
(2) Asset-Intensive is net of
$(10) DAC offset.
(Unaudited)
Three Months Ended September 30,
2021
Pre-tax income (loss)
Capital
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax adjusted
operating
income (loss)
U.S. and Latin America:
Traditional
$
(126
)
$
—
$
5
$
(121
)
Financial Solutions:
Asset-Intensive
106
(40
)
(1
)
27
(2
)
93
Capital Solutions
22
—
—
22
Total U.S. and Latin America
2
(40
)
32
(6
)
Canada Traditional
44
—
—
44
Canada Financial Solutions
—
—
—
—
Total Canada
44
—
—
44
EMEA Traditional
(91
)
—
—
(91
)
EMEA Financial Solutions
85
(23
)
—
62
Total EMEA
(6
)
(23
)
—
(29
)
Asia Pacific Traditional
(96
)
—
—
(96
)
Asia Pacific Financial Solutions
6
19
—
25
Total Asia Pacific
(90
)
19
—
(71
)
Corporate and Other
16
(43
)
—
(27
)
Consolidated
$
(34
)
$
(87
)
$
32
$
(89
)
(1) Asset-Intensive is net of
$(17) DAC offset.
(2) Asset-Intensive is net of $19
DAC offset.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Pre-tax Income
to Pre-tax Adjusted Operating Income
(Dollars in millions)
(Unaudited)
Nine Months Ended September 30,
2022
Pre-tax income (loss)
Capital
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax adjusted operating
income (loss)
U.S. and Latin America:
Traditional
$
247
$
(1
)
$
(41
)
$
205
Financial Solutions:
Asset-Intensive
57
135
(1
)
21
(2
)
213
Capital Solutions
118
—
—
118
Total U.S. and Latin America
422
134
(20
)
536
Canada Traditional
54
8
—
62
Canada Financial Solutions
21
—
—
21
Total Canada
75
8
—
83
EMEA Traditional
(3
)
—
—
(3
)
EMEA Financial Solutions
149
45
—
194
Total EMEA
146
45
—
191
Asia Pacific Traditional
227
—
—
227
Asia Pacific Financial Solutions
(124
)
186
—
62
Total Asia Pacific
103
186
—
289
Corporate and Other
(186
)
103
—
(83
)
Consolidated
$
560
$
476
$
(20
)
$
1,016
(1) Asset-Intensive is net of $58
DAC offset.
(2) Asset-Intensive is net of
$(49) DAC offset.
(Unaudited)
Nine Months Ended September 30,
2021
Pre-tax income (loss)
Capital
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax adjusted
operating
income (loss)
U.S. and Latin America:
Traditional
$
(329
)
$
—
$
(2
)
$
(331
)
Financial Solutions:
Asset-Intensive
329
(32
)
(1
)
(29
)
(2
)
268
Capital Solutions
68
—
—
68
Total U.S. and Latin America
68
(32
)
(31
)
5
Canada Traditional
100
1
—
101
Canada Financial Solutions
10
—
—
10
Total Canada
110
1
—
111
EMEA Traditional
(171
)
—
—
(171
)
EMEA Financial Solutions
228
(41
)
—
187
Total EMEA
57
(41
)
—
16
Asia Pacific Traditional
(67
)
—
—
(67
)
Asia Pacific Financial Solutions
65
(1
)
—
64
Total Asia Pacific
(2
)
(1
)
—
(3
)
Corporate and Other
401
(373
)
—
28
Consolidated
$
634
$
(446
)
$
(31
)
$
157
(1) Asset-Intensive is net of
$(44) DAC offset.
(2) Asset-Intensive is net of $56
DAC offset.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Per Share and Shares Data
(In thousands, except per share
data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Earnings per share from net income
(loss):
Basic earnings per share
$
4.24
$
(0.32
)
$
6.25
$
6.79
Diluted earnings per share (1)
$
4.19
$
(0.32
)
$
6.19
$
6.74
Diluted earnings per share from adjusted
operating income (1)
$
5.20
$
(1.11
)
$
11.46
$
1.68
Weighted average number of common and
common equivalent shares outstanding
67,663
68,417
67,607
68,416
(1) As a result of anti-dilutive impact,
in periods of a loss, weighted average common shares outstanding
(basic) are used in the calculation of diluted earnings per
share
(Unaudited)
At September 30,
2022
2021
Treasury shares
18,484
17,711
Common shares outstanding
66,827
67,600
Book value per share outstanding
$
54.66
$
190.60
Book value per share outstanding, before
impact of AOCI
$
143.91
$
137.60
Reconciliation of Book Value Per
Share to Book Value Per Share Excluding AOCI
(Unaudited)
At September 30,
2022
2021
Book value per share outstanding
$
54.66
$
190.60
Less effect of AOCI:
Accumulated currency translation
adjustments
(3.24
)
(0.75
)
Unrealized appreciation (depreciation) of
securities
(85.25
)
54.80
Pension and postretirement benefits
(0.76
)
(1.05
)
Book value per share outstanding, before
impact of AOCI
$
143.91
$
137.60
Reconciliation of Stockholders'
Average Equity to Stockholders' Average Equity Excluding AOCI
(Dollars in millions)
(Unaudited)
Trailing Twelve Months Ended September 30,
2022:
Average Equity
Stockholders' average equity
$
8,915
Less effect of AOCI:
Accumulated currency translation
adjustments
(62
)
Unrealized depreciation of securities
(354
)
Pension and postretirement benefits
(54
)
Stockholders' average equity, excluding
AOCI
$
9,385
Reconciliation of Trailing Twelve
Months of Consolidated Net Income to Adjusted Operating Income
and
Related Return on Equity
(Dollars in millions)
(Unaudited)
Return on Equity
Trailing Twelve Months Ended September 30,
2022:
Income
Net income available to RGA
shareholders
$
575
6.4
%
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, net
272
Change in fair value of embedded
derivatives
(24
)
Deferred acquisition cost offset, net
28
Tax expense on uncertain tax positions
(116
)
Net income attributable to noncontrolling
interest
2
Adjusted operating income
$
737
7.9
%
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements
of Income
(Dollars in millions)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Revenues:
Net premiums
$
3,247
$
3,094
$
9,632
$
9,106
Investment income, net of related
expenses
769
796
2,333
2,367
Investment related gains (losses), net
(134
)
58
(514
)
472
Other revenue
184
95
432
354
Total revenues
4,066
4,043
11,883
12,299
Benefits and expenses:
Claims and other policy benefits
2,815
3,289
8,855
9,294
Interest credited
189
177
468
541
Policy acquisition costs and other
insurance expenses
396
338
1,144
1,010
Other operating expenses
251
229
720
683
Interest expense
46
41
130
129
Collateral finance and securitization
expense
3
3
6
8
Total benefits and expenses
3,700
4,077
11,323
11,665
Income before income taxes
366
(34
)
560
634
Provision for income taxes
81
(12
)
139
173
Net income
285
(22
)
421
461
Net income attributable to noncontrolling
interest
1
—
2
—
Net income available to RGA
shareholders
$
284
$
(22
)
$
419
$
461
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221026005645/en/
Investor Contact Jeff Hopson Senior Vice President -
Investor Relations (636) 736-2068
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