Second Quarter Results
- Net income available to RGA shareholders of $3.03 per diluted
share
- Adjusted operating income* of $5.48 per diluted share
- Premium growth of 17.5% over the prior-year quarter, 18.5% on a
constant currency basis1
- ROE of 9.7%, adjusted operating ROE* of 15.3% for the trailing
twelve months
- Increased quarterly dividend 4.7% to $0.89 per share
- Deployed capital of $307 million into in-force
transactions
1 Actual amounts reflect impact of currency fluctuations.
Constant currency amounts reflect foreign denominated activity
translated to U.S. dollars at a constant exchange rate.
Reinsurance Group of America, Incorporated (NYSE: RGA), a
leading global provider of life and health reinsurance, reported
second quarter net income available to RGA shareholders of $203
million, or $3.03 per diluted share, compared with $205 million, or
$3.05 per diluted share, in the prior-year quarter. Adjusted
operating income* for the second quarter totaled $365 million, or
$5.48 per diluted share, compared with $297 million, or $4.40 per
diluted share, the year before. Net foreign currency fluctuations
had a favorable effect of $0.06 per diluted share on net income
available to RGA shareholders, and an adverse effect of $0.06 per
diluted share on adjusted operating income as compared with the
prior year.
Quarterly Results
Year-to-Date Results
($ in millions, except per share
data)
2024
2023
2024
2023
Net premiums
$
3,920
$
3,337
$
9,296
$
6,722
Net income available to RGA
shareholders
203
205
413
457
Net income available to RGA shareholders
per diluted share
3.03
3.05
6.19
6.77
Adjusted operating income*
365
297
766
646
Adjusted operating income, excluding
notable items*
365
297
766
646
Adjusted operating income per diluted
share*
5.48
4.40
11.49
9.55
Adjusted operating income, excluding
notable items per diluted share*
5.48
4.40
11.49
9.55
Book value per share
147.90
117.87
Book value per share, excluding
accumulated other comprehensive income (AOCI)*
148.19
138.99
Book value per share, excluding AOCI and
B36*
149.01
138.88
Total assets
109,888
89,040
*
See “Non-GAAP Financial Measures and Other
Definitions” below
In the second quarter, consolidated net premiums totaled $3.9
billion, an increase of 17.5% over the 2023 second quarter, with an
adverse net foreign currency effect of $33 million. Excluding the
net foreign currency effect, consolidated net premiums increased
18.5% in the quarter. Net premiums for the quarter included a $282
million contribution from a single premium pension risk transfer
transaction in the U.S. Financial Solutions business.
Compared with the year-ago period, excluding spread-based
businesses, second quarter investment income increased 10.9%,
primarily due to the addition of large asset-intensive in-force
transactions in recent periods. Average investment yield increased
to 4.65% in the second quarter compared with 4.42% in the
prior-year period due to higher new money rates.
The effective tax rate for the quarter was 24.3% on pre-tax
income, slightly above the expected range of 23% to 24%, primarily
related to income earned in non-U.S. jurisdictions.
The effective tax rate for the quarter was 25.5% on pre-tax
adjusted operating income, above the expected range of 23% to 24%,
primarily related to income earned in non-U.S. jurisdictions.
Tony Cheng, President and Chief Executive Officer, commented,
“Our second quarter was good overall, and we continue to have
strong momentum, on the back of a particularly strong first
quarter. Our Asia Traditional and Financial Solutions businesses
had a very good quarter, and our U.S. Traditional and EMEA
Financial Solutions areas also performed well. We had a solid
quarter of in-force transactions, with $307 million of capital
deployed. Additionally, we continued to see good momentum in
organic new business activity.
“Our balance sheet remains strong, and we ended the quarter with
excess capital of approximately $1.0 billion. Based on favorable
business conditions and RGA’s global leadership position, we are
optimistic about the future and expect to continue to deliver
attractive financial results over time.”
SEGMENT RESULTS
U.S. and Latin America
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
1,827
$
1,750
$
3,542
$
3,365
Pre-tax income
174
62
290
183
Pre-tax adjusted operating income
167
63
295
185
Pre-tax adjusted operating income,
excluding notable items
167
63
295
185
Quarterly Results
- Results reflected favorable in-force management actions,
partially offset by client reporting adjustments; overall claims
experience was in line with expectations.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Pre-tax income
$
83
$
68
$
100
$
182
Pre-tax adjusted operating income
80
109
170
214
Pre-tax adjusted operating income,
excluding notable items
80
109
170
214
Quarterly Results
- Results were below the expected range due to the timing of
recent new business not yet at full earnings run rate, as well as
one-time items.
Canada
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
326
$
307
$
644
$
602
Pre-tax income
27
35
74
64
Pre-tax adjusted operating income
26
32
72
61
Pre-tax adjusted operating income,
excluding notable items
26
32
72
61
Net Premiums
- Foreign currency exchange rates had an adverse effect on net
premiums of $6 million for the quarter.
Quarterly Results
- Results reflected modestly unfavorable mortality
experience.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and pre-tax adjusted operating income.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Pre-tax income
$
6
$
6
$
13
$
16
Pre-tax adjusted operating income
7
6
14
16
Pre-tax adjusted operating income,
excluding notable items
7
6
14
16
Quarterly Results
- Results were in line with expectations.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and pre-tax adjusted operating income.
Europe, Middle East and Africa (EMEA)
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
497
$
429
$
993
$
867
Pre-tax income
1
4
29
31
Pre-tax adjusted operating income
(loss)
(1
)
4
37
31
Pre-tax adjusted operating income (loss),
excluding notable items
(1
)
4
37
31
Net Premiums
- Foreign currency exchange rates had a favorable effect on net
premiums of $1 million for the quarter.
Quarterly Results
- Results reflected unfavorable experience, primarily in the
United Kingdom.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and pre-tax adjusted operating income.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Pre-tax income
$
72
$
52
$
136
$
111
Pre-tax adjusted operating income
86
66
163
135
Pre-tax adjusted operating income,
excluding notable items
86
66
163
135
Quarterly Results
- Results reflected the impact of strong new business in recent
periods and favorable longevity experience.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and pre-tax adjusted operating income.
Asia Pacific
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
708
$
677
$
1,424
$
1,339
Pre-tax income
100
89
209
168
Pre-tax adjusted operating income
99
89
208
168
Pre-tax adjusted operating income,
excluding notable items
99
89
208
168
Net Premiums
- Foreign currency exchange rates had an adverse effect on net
premiums of $23 million for the quarter.
Quarterly Results
- Results reflected the benefit of in-force management actions
and the impact of recent new business in Asia.
- Foreign currency exchange rates had an adverse effect of $2
million on pre-tax income and pre-tax adjusted operating
income.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
50
$
44
$
96
$
108
Pre-tax income (loss)
(58
)
20
(45
)
7
Pre-tax adjusted operating income
71
62
130
102
Pre-tax adjusted operating income,
excluding notable items
71
62
130
102
Quarterly Results
- Pre-tax loss reflected a foreign currency exchange rate
derivative loss, driven by weakness in Japanese yen.
- Pre-tax adjusted operating income reflected favorable overall
experience.
- Foreign currency exchange rates had a favorable effect of $8
million on pre-tax income and an adverse effect of $2 million on
pre-tax adjusted operating income.
Corporate and Other
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Pre-tax income (loss)
$
(136
)
$
(71
)
$
(265
)
$
(146
)
Pre-tax adjusted operating income
(loss)
(44
)
(55
)
(82
)
(80
)
Pre-tax adjusted operating income (loss),
excluding notable items
(44
)
(55
)
(82
)
(80
)
Quarterly Results
- Results were slightly unfavorable compared to the expected
quarterly average run rate; year to date results are in line with
the average run rate.
Dividend Declaration
Effective July 30, 2024, the board of directors declared a
regular quarterly dividend of $0.89, payable August 27, 2024, to
shareholders of record as of August 13, 2024.
Earnings Conference Call
A conference call to discuss second quarter results will begin
at 10 a.m. Eastern Time on Friday, August 2, 2024. Interested
parties may access the call by dialing 1-844-481-2753
(1-412-317-0669 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.
Non-GAAP Financial Measures and Other Definitions
Reinsurance Group of America, Incorporated (the “Company”)
discloses certain financial measures that are not determined in
accordance with U.S. GAAP. The Company principally uses such
non-GAAP financial measures in evaluating performance because the
Company believes that such measures, when reviewed in conjunction
with relevant U.S. GAAP measures, present a clearer picture of our
operating performance and assist the Company in the allocation of
its resources. The Company believes that these non-GAAP financial
measures provide investors and other third parties with a better
understanding of the Company’s results of operations, financial
statements and the underlying profitability drivers and trends of
the Company’s businesses by excluding specified items which may not
be indicative of the Company’s ongoing operating performance and
may fluctuate significantly from period to period. These measures
should be considered supplementary to the Company’s financial
results that are presented in accordance with U.S. GAAP and should
not be viewed as a substitute for U.S. GAAP measures. Other
companies may use similarly titled non-GAAP financial measures that
are calculated differently from the way the Company calculates such
measures. Consequently, the Company’s non-GAAP financial measures
may not be comparable to similar measures used by other
companies.
The following non-GAAP financial measures are used in this
document or in other public disclosures made by the Company from
time to time:
1.
Adjusted operating income, on a pre-tax
and after-tax basis, and adjusted operating income per diluted
share. The Company uses these measures as a basis for analyzing
financial results because the Company believes that such measures
better reflect the ongoing profitability and underlying trends of
the Company’s continuing operations. Adjusted operating income is
calculated as net income available to the Company’s shareholders
(or, in the case of pre-tax adjusted operating income, income
before income taxes) excluding, as applicable:
- substantially all of the effect of net
investment related gains and losses;
- changes in the fair value of certain embedded derivatives;
- changes in the fair value of contracts that provide market risk
benefits;
- non-economic losses at contract inception for direct pension
risk transfer single premium business (which are amortized into
adjusted operating income within claims and other policy benefits
over the estimated lives of the contracts);
- any net gain or loss from discontinued operations;
- the cumulative effect of any accounting changes;
- the impact of certain tax-related items; and
- any other items that the Company believes are not indicative of
the Company’s ongoing operations
as such items can be volatile and may not reflect the underlying
performance of the Company’s business. In addition, adjusted
operating income per diluted share is calculated as adjusted
operating income divided by weighted average diluted shares
outstanding. These measures also serve as a basis for establishing
target levels and awards under the Company’s management incentive
programs.
2.
Adjusted operating income (on a pre-tax
and after-tax basis), excluding notable items. Notable items
are items the Company believes may not be indicative of its ongoing
operating performance which are excluded from adjusted operating
income to provide investors and other third parties with a better
understanding of the Company’s results. Such items may be
unexpected, unknown when the Company prepares its business plan or
otherwise. Notable items presented may include the financial impact
of the Company’s assumption reviews on business subject to the
Financial Accounting Standards Board’s Accounting Standards Update
No. 2018-12, “Targeted Improvements to the Accounting for
Long-Duration Contracts” and related amendments, reflected in
future policy benefits remeasurement gains or losses.
3.
Adjusted operating revenue. This
measure excludes the effects of net realized capital gains and
losses, and changes in the fair value of certain embedded
derivatives.
4.
Shareholders’ equity position excluding
the impact of accumulated other comprehensive income (loss)
(“AOCI”), shareholders’ average equity position excluding AOCI, and
book value per share excluding the impact of AOCI. The Company
believes that these measures provide useful information since such
measures exclude AOCI-related items that are not permanent and can
fluctuate significantly from period to period, and may not reflect
the impact of the underlying performance of the Company’s
businesses on shareholders’ equity and book value per share. AOCI
primarily relates to changes in interest rates, credit spreads on
its investment securities, future policy benefits discount rate
measurement gains (losses), market risk benefits
instrument-specific credit risk remeasurement gains (losses) and
foreign currency fluctuations. The Company also discloses the
following non-GAAP financial measures:
- Shareholders’ average equity position
excluding AOCI and B36, where B36 refers to the cumulative change
in fair value of funds withheld embedded derivatives;
- Shareholders’ average equity position excluding AOCI and
notable items; and
- Shareholders’ average equity position
excluding AOCI, B36 and notable items.
5.
Adjusted operating return on equity. This
measure is calculated as adjusted operating income divided by
average shareholders’ equity excluding AOCI. Adjusted operating
return on equity also serves as a basis for establishing target
levels and awards under the Company’s management incentive
programs. The Company also discloses the following non-GAAP
financial measures:
- Adjusted operating return on equity
excluding AOCI and B36;
- Adjusted operating return on equity
excluding AOCI and notable items, which is calculated as adjusted
operating income excluding notable items divided by average
shareholders’ equity excluding notable items and AOCI; and
- Adjusted operating return on equity
excluding AOCI, B36 and notable items.
Reconciliations of the foregoing non-GAAP
financial measures (to the extent disclosed in this document) to
the most comparable GAAP financial measures are provided in the
Appendix at the end of this document.
Other definitions:
- Uncapped (profitable) cohorts: cohorts with a net premium ratio
under 100%.
- Capped (loss) cohorts: cohorts with a net premium ratio equal
to or greater than 100%.
- Floored cohorts: cohorts with reserves floored at zero as
reserves cannot be negative.
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 today one of the
world’s largest and most respected reinsurers and remains guided by
a powerful purpose: to make financial protection accessible to all.
As a global capabilities and solutions leader, RGA empowers
partners through bold innovation, relentless execution, and
dedicated client focus – all directed toward creating sustainable
long-term value. RGA has approximately $3.8 trillion of life
reinsurance in force and assets of $109.9 billion as of June 30,
2024. To learn more about RGA and its businesses, please visit
www.rgare.com or follow RGA on LinkedIn and Facebook. Investors can
learn more at investor.rgare.com.
Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and
federal securities laws including, among others, statements
relating to projections of the future operations, strategies,
earnings, revenues, income or loss, ratios, financial performance
and growth potential of Reinsurance Group of America, Incorporated
(the “Company”). Forward-looking statements often contain words and
phrases such as “anticipate,” “assume,” “believe,” “continue,”
“could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,”
“plan,” “potential,” “pro forma,” “project,” “should,” “will,”
“would,” and other words and terms of similar meaning or that are
otherwise tied to future periods or future performance, in each
case in all derivative forms. 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.
Factors that could also cause results or events to differ,
possibly materially, from those expressed or implied by
forward-looking statements, include, among others: (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 the 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, pandemics,
epidemics, or other major public health issues 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
developments with respect to litigation, arbitration, or regulatory
investigations or actions, (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, except as required under
applicable securities law. 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 see Item 1A – “Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2023, as may be
supplemented by Item 1A - “Risk Factors” in the Company’s
subsequent Quarterly Reports on Form 10-Q and in our other periodic
and current reports filed with the SEC.
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 June 30,
2024
2023
Diluted
Earnings Per
Share
Diluted
Earnings Per
Share
Net income available to RGA
shareholders
$
203
$
3.03
$
205
$
3.05
Reconciliation to adjusted operating
income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
239
3.60
88
1.30
Market risk benefits remeasurement (gains)
losses
(6
)
(0.09
)
(24
)
(0.36
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
—
—
2
0.03
Embedded derivatives:
Included in investment related
gains/losses, net
(20
)
(0.30
)
16
0.24
Included in interest credited
(4
)
(0.06
)
3
0.04
Investment (income) loss on unit-linked
variable annuities
1
0.01
2
0.03
Interest credited on unit-linked variable
annuities
(1
)
(0.01
)
(2
)
(0.03
)
Interest expense on uncertain tax
positions
(1
)
(0.01
)
—
—
Other (1)
(35
)
(0.52
)
—
—
Uncertain tax positions and other tax
related items
(12
)
(0.18
)
5
0.07
Net income attributable to noncontrolling
interest
1
0.01
2
0.03
Adjusted operating income
365
5.48
297
4.40
Notable items
—
—
—
—
Adjusted operating income, excluding
notable items
$
365
$
5.48
$
297
$
4.40
(Unaudited)
Six Months Ended June 30,
2024
2023
Diluted
Earnings Per
Share
Diluted
Earnings Per
Share
Net income available to RGA
shareholders
$
413
$
6.19
$
457
$
6.77
Reconciliation to adjusted operating
income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
424
6.37
190
2.79
Market risk benefits remeasurement (gains)
losses
(34
)
(0.51
)
(13
)
(0.19
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
(2
)
(0.03
)
2
0.03
Embedded derivatives:
Included in investment related
gains/losses, net
(81
)
(1.22
)
(13
)
(0.19
)
Included in interest credited
6
0.09
(3
)
(0.04
)
Investment (income) loss on unit-linked
variable annuities
2
0.03
2
0.03
Interest credited on unit-linked variable
annuities
(2
)
(0.03
)
(2
)
(0.03
)
Interest expense on uncertain tax
positions
(1
)
(0.02
)
—
—
Other (1)
54
0.81
6
0.09
Uncertain tax positions and other tax
related items
(16
)
(0.24
)
17
0.25
Net income attributable to noncontrolling
interest
3
0.05
3
0.04
Adjusted operating income
766
11.49
646
9.55
Notable items
—
—
—
—
Adjusted operating income, excluding
notable items
$
766
$
11.49
$
646
$
9.55
(1)
The Other line item includes pension risk
transfer day one loss, market value adjustments on surrender
charges and other immaterial items.
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated
Effective Income Tax Rates
(Dollars in millions)
(Unaudited)
Three Months Ended June 30,
2024
Six Months Ended June 30,
2024
Pre-tax
Income
(Loss)
Income
Taxes
Effective
Tax Rate (1)
Pre-tax
Income
(Loss)
Income
Taxes
Effective
Tax Rate (1)
GAAP income
$
269
$
65
24.3
%
$
541
$
125
23.1
%
Reconciliation to adjusted operating
income:
Realized and unrealized (gains) losses,
derivatives and other, included in investment related gains
(losses), net
308
69
540
116
Market risk benefits remeasurement (gains)
losses
(8
)
(2
)
(43
)
(9
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
—
—
(2
)
—
Embedded derivatives:
Included in investment related
gains/losses, net
(26
)
(6
)
(103
)
(22
)
Included in interest credited
(6
)
(2
)
7
1
Investment (income) loss on unit-linked
variable annuities
1
—
2
—
Interest credited on unit-linked variable
annuities
(1
)
—
(2
)
—
Interest expense on uncertain tax
positions
(1
)
—
(1
)
—
Other (2)
(45
)
(10
)
68
14
Uncertain tax positions and other tax
related items
—
12
—
16
Adjusted operating income
491
126
25.5
%
1,007
241
23.9
%
Notable items
—
—
—
—
Adjusted operating income, excluding
notable items
$
491
$
126
$
1,007
$
241
(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.
(2)
The Other line item includes pension risk
transfer day one loss, market value adjustments on surrender
charges and other immaterial items.
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated
Income before Income Taxes to Pre-tax Adjusted Operating Income
(Dollars in millions)
(Unaudited)
Three Months Ended June 30,
2024
2023
Income before income taxes
$
269
$
265
Reconciliation to pre-tax adjusted
operating income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
308
117
Market risk benefits remeasurement (gains)
losses
(8
)
(31
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
—
2
Embedded derivatives:
Included in investment related
gains/losses, net
(26
)
20
Included in interest credited
(6
)
3
Investment (income) loss on unit-linked
variable annuities
1
2
Interest credited on unit-linked variable
annuities
(1
)
(2
)
Interest expense on uncertain tax
positions
(1
)
—
Other (1)
(45
)
—
Pre-tax adjusted operating income
491
376
Notable items
—
—
Pre-tax adjusted operating income,
excluding notable items
$
491
$
376
(Unaudited)
Six Months Ended June 30,
2024
2023
Income before income taxes
$
541
$
616
Reconciliation to pre-tax adjusted
operating income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
540
244
Market risk benefits remeasurement (gains)
losses
(43
)
(17
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
(2
)
2
Embedded derivatives:
Included in investment related
gains/losses, net
(103
)
(17
)
Included in interest credited
7
(4
)
Investment (income) loss on unit-linked
variable annuities
2
2
Interest credited on unit-linked variable
annuities
(2
)
(2
)
Interest expense on uncertain tax
positions
(1
)
—
Other (1)
68
8
Pre-tax adjusted operating income
1,007
832
Notable items
—
—
Pre-tax adjusted operating income,
excluding notable items
$
1,007
$
832
(1)
The Other line item includes pension risk
transfer day one loss, market value adjustments on surrender
charges and other immaterial items.
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 June 30,
2024
Pre-tax
income
(loss)
Realized
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax
adjusted
operating
income (loss)
Notable
Items
Pre-tax adjusted
operating
income (loss) ex.
notable items
U.S. and Latin America:
Traditional
$
174
$
(1
)
$
(6
)
$
167
$
—
$
167
Financial Solutions
83
23
(26
)
80
—
80
Total U.S. and Latin America
257
22
(32
)
247
—
247
Canada Traditional
27
(1
)
—
26
—
26
Canada Financial Solutions
6
1
—
7
—
7
Total Canada
33
—
—
33
—
33
EMEA Traditional
1
(2
)
—
(1
)
—
(1
)
EMEA Financial Solutions
72
14
—
86
—
86
Total EMEA
73
12
—
85
—
85
APAC Traditional
100
(1
)
—
99
—
99
APAC Financial Solutions
(58
)
129
—
71
—
71
Total Asia Pacific
42
128
—
170
—
170
Corporate and Other
(136
)
92
—
(44
)
—
(44
)
Consolidated
$
269
$
254
$
(32
)
$
491
$
—
$
491
(Unaudited)
Three Months Ended June 30,
2023
Pre-tax
income
(loss)
Realized
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax adjusted
operating
income (loss)
Notable
Items
Pre-tax adjusted
operating
income (loss) ex.
notable items
U.S. and Latin America:
Traditional
$
62
$
—
$
1
$
63
$
—
$
63
Financial Solutions
68
19
22
109
—
109
Total U.S. and Latin America
130
19
23
172
—
172
Canada Traditional
35
(3
)
—
32
—
32
Canada Financial Solutions
6
—
—
6
—
6
Total Canada
41
(3
)
—
38
—
38
EMEA Traditional
4
—
—
4
—
4
EMEA Financial Solutions
52
14
—
66
—
66
Total EMEA
56
14
—
70
—
70
APAC Traditional
89
—
—
89
—
89
APAC Financial Solutions
20
42
—
62
—
62
Total Asia Pacific
109
42
—
151
—
151
Corporate and Other
(71
)
16
—
(55
)
—
(55
)
Consolidated
$
265
$
88
$
23
$
376
$
—
$
376
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Pre-tax Income
to Pre-tax Adjusted Operating Income
(Dollars in millions)
(Unaudited)
Six Months Ended June 30,
2024
Pre-tax
income (loss)
Realized
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax
adjusted
operating
income (loss)
Notable
Items
Pre-tax adjusted
operating
income (loss) ex.
notable items
U.S. and Latin America:
Traditional
$
290
$
(1
)
$
6
$
295
$
—
$
295
Financial Solutions
100
172
(102
)
170
—
170
Total U.S. and Latin America
390
171
(96
)
465
—
465
Canada Traditional
74
(2
)
—
72
—
72
Canada Financial Solutions
13
1
—
14
—
14
Total Canada
87
(1
)
—
86
—
86
EMEA Traditional
29
8
—
37
—
37
EMEA Financial Solutions
136
27
—
163
—
163
Total EMEA
165
35
—
200
—
200
APAC Traditional
209
(1
)
—
208
—
208
APAC Financial Solutions
(45
)
175
—
130
—
130
Total Asia Pacific
164
174
—
338
—
338
Corporate and Other
(265
)
183
—
(82
)
—
(82
)
Consolidated
$
541
$
562
$
(96
)
$
1,007
$
—
$
1,007
(Unaudited)
Six Months Ended June 30,
2023
Pre-tax
income (loss)
Realized
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax adjusted
operating
income (loss)
Notable
Items
Pre-tax adjusted
operating
income (loss) ex.
notable items
U.S. and Latin America:
Traditional
$
183
$
—
$
2
$
185
$
—
$
185
Financial Solutions
182
55
(23
)
214
—
214
Total U.S. and Latin America
365
55
(21
)
399
—
399
Canada Traditional
64
(3
)
—
61
—
61
Canada Financial Solutions
16
—
—
16
—
16
Total Canada
80
(3
)
—
77
—
77
EMEA Traditional
31
—
—
31
—
31
EMEA Financial Solutions
111
24
—
135
—
135
Total EMEA
142
24
—
166
—
166
APAC Traditional
168
—
—
168
—
168
APAC Financial Solutions
7
95
—
102
—
102
Total Asia Pacific
175
95
—
270
—
270
Corporate and Other
(146
)
66
—
(80
)
—
(80
)
Consolidated
$
616
$
237
$
(21
)
$
832
$
—
$
832
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Per Share and Shares Data
(In thousands, except per share
data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Earnings per share from net income
(loss):
Basic earnings per share
$
3.07
$
3.09
$
6.28
$
6.86
Diluted earnings per share
$
3.03
$
3.05
$
6.19
$
6.77
Diluted earnings per share from adjusted
operating income
$
5.48
$
4.40
$
11.49
$
9.55
Weighted average number of common and
common equivalent shares outstanding
66,732
67,420
66,645
67,563
(Unaudited)
At June 30,
2024
2023
Treasury shares
19,487
19,099
Common shares outstanding
65,824
66,212
Book value per share outstanding
$
147.90
$
117.87
Book value per share outstanding, before
impact of AOCI
$
148.19
$
138.99
Reconciliation of Book Value Per
Share to Book Value Per Share Excluding AOCI and B36
Derivatives
(Unaudited)
At June 30,
2024
2023
Book value per share outstanding
$
147.90
$
117.87
Less effect of AOCI:
Accumulated currency translation
adjustment
1.32
0.38
Unrealized (depreciation) appreciation of
securities
(71.31
)
(73.69
)
Effect of updating discount rates on
future policy benefits
70.06
52.26
Change in instrument-specific credit risk
for market risk benefits
0.09
0.20
Pension and postretirement benefits
(0.45
)
(0.27
)
Book value per share outstanding, before
impact of AOCI
148.19
138.99
Less effect of B36 derivatives
(0.82
)
0.11
Book value per share outstanding, before
impact of AOCI and B36 derivatives
$
149.01
$
138.88
Reconciliation of Shareholders'
Average Equity to Shareholders' Average Equity Excluding AOCI
(Dollars in millions)
(Unaudited)
Trailing Twelve Months Ended June 30,
2024:
Average Equity
Shareholders' average equity
$
8,830
Less effect of AOCI:
Accumulated currency translation
adjustment
41
Unrealized (depreciation) appreciation of
securities
(4,792
)
Effect of updating discount rates on
future policy benefits
4,120
Change in instrument-specific credit risk
for market risk benefits
6
Pension and postretirement benefits
(24
)
Shareholders' average equity, excluding
AOCI
9,479
Year-to-date notable items, net of tax
—
Shareholders' average equity, excluding
AOCI and notable items
$
9,479
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 June 30,
2024:
Income
Net income available to RGA
shareholders
$
858
9.7
%
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, net
553
Change in fair value of embedded
derivatives
65
Tax expense on uncertain tax positions and
other tax related items
(29
)
Net income attributable to noncontrolling
interest
7
Adjusted operating income
1,454
15.3
%
Notable items after tax
—
Adjusted operating income, excluding
notable items
$
1,454
15.3
%
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements
of Income
(Dollars in millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Revenues:
Net premiums
$
3,920
$
3,337
$
9,296
$
6,722
Investment income, net of related
expenses
1,082
857
2,043
1,713
Investment related gains (losses), net
(271
)
(123
)
(420
)
(200
)
Other revenue
147
85
296
172
Total revenues
4,878
4,156
11,215
8,407
Benefits and expenses:
Claims and other policy benefits
3,712
3,013
8,844
6,076
Future policy benefits remeasurement
(gains) losses
(90
)
13
(114
)
(13
)
Market risk benefits remeasurement (gains)
losses
(8
)
(31
)
(43
)
(17
)
Interest credited
231
209
485
424
Policy acquisition costs and other
insurance expenses
391
349
778
680
Other operating expenses
301
275
584
525
Interest expense
72
63
140
116
Total benefits and expenses
4,609
3,891
10,674
7,791
Income before income taxes
269
265
541
616
Provision for income taxes
65
58
125
156
Net income
204
207
416
460
Net income attributable to noncontrolling
interest
1
2
3
3
Net income available to RGA
shareholders
$
203
$
205
$
413
$
457
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731744784/en/
Jeff Hopson Senior Vice President - Investor Relations (636)
736-2068
Reinsurance Group of Ame... (NYSE:RGA)
過去 株価チャート
から 7 2024 まで 8 2024
Reinsurance Group of Ame... (NYSE:RGA)
過去 株価チャート
から 8 2023 まで 8 2024
