Fourth Quarter Results
- Net income available to RGA shareholders of $2.37 per diluted
share
- Adjusted operating income* of $4.73 per diluted share
- Premium growth of 19.2% over the prior-year quarter, 18.7% on a
constant currency basis1
- Deployed capital of $346 million into in-force
transactions
- Total shareholder capital returns of $106 million: $50 million
of share repurchases and $56 million of shareholder dividends
Full Year Results
- Net income available to RGA shareholders of $13.44 per diluted
share
- Adjusted operating income* of $19.88 per diluted share
- Premium growth of 15.3% over the prior year, 16.3% on a
constant currency basis1
- ROE of 11.4%, adjusted operating ROE* of 14.5%, and adjusted
operating ROE, excluding notable items*2 of 14.4% for the trailing
twelve months
- Deployed capital of $933 million into in-force
transactions
- Total shareholder capital returns of $419 million: $200 million
of share repurchases and $219 million of shareholder dividends
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.
2 RGA completed its annual actuarial assumption review related
to business subject to Long-Duration Targeted Improvements (LDTI)
during the third quarter. The impact from the actuarial assumption
review is reflected in the results as notable items.
Reinsurance Group of America, Incorporated (NYSE: RGA), a
leading global provider of life and health reinsurance, reported
fourth quarter net income available to RGA shareholders of $158
million, or $2.37 per diluted share, compared with $291 million, or
$4.30 per diluted share, in the prior-year quarter. Adjusted
operating income* for the fourth quarter totaled $316 million, or
$4.73 per diluted share, compared with $312 million, or $4.60 per
diluted share, the year before. Adjusted operating income,
excluding notable items* for the fourth quarter, totaled $316
million, or $4.73 per diluted share, compared with $266 million, or
$3.91 per diluted share, the year before. Net foreign currency
fluctuations had an adverse effect of $0.01 per diluted share on
net income available to RGA shareholders, and a favorable effect of
$0.04 per diluted share on adjusted operating income as compared
with the prior year.
Quarterly Results
Year-to-Date Results
($ in millions, except per share
data)
2023
2022
2023
2022
Net premiums
$
4,108
$
3,446
$
15,085
$
13,078
Net income available to RGA
shareholders
158
291
902
517
Net income available to RGA shareholders
per diluted share
2.37
4.30
13.44
7.64
Adjusted operating income*
316
312
1,334
927
Adjusted operating income, excluding
notable items *
316
266
1,334
1,111
Adjusted operating income per diluted
share*
4.73
4.60
19.88
13.69
Adjusted operating income, excluding
notable items per diluted share*
4.73
3.91
19.88
16.40
Book value per share
138.39
106.19
Book value per share, excluding
accumulated other comprehensive income (AOCI)*
144.01
134.26
Total assets
97,623
84,904
*
See “Non-GAAP Financial Measures”
below
Full year net income available to RGA shareholders totaled $902
million, or $13.44 per diluted share, compared with $517 million,
or $7.64 per diluted share in 2022. Adjusted operating income for
the full year totaled $1,334 million, or $19.88 per diluted share,
compared with $927 million, or $13.69 per diluted share the year
before. Adjusted operating income, excluding notable items for the
full year, totaled $1,334 million, or $19.88 per diluted share,
compared with $1,111 million, or $16.40 per diluted share, the year
before. Net foreign currency fluctuations had an adverse effect of
$0.18 per diluted share on net income available to RGA
shareholders, and $0.21 per diluted share on adjusted operating
income as compared with 2022.
In the fourth quarter, consolidated net premiums totaled $4.1
billion, an increase of 19.2% over the 2022 fourth quarter, with a
favorable net foreign currency effect of $18 million. Excluding the
net foreign currency effect, consolidated net premiums increased
18.7% in the quarter. Net premiums for the quarter include a $500
million contribution from a single premium pension risk transfer
transaction in the U.S. Financial Solutions business. For the full
year, net premiums totaled $15.1 billion, an increase of 15.3% from
2022, with an adverse net foreign currency effect of $126 million.
Excluding the net foreign currency effect, consolidated net
premiums increased 16.3% for the full year. Net premiums for the
full year include a $1.5 billion contribution from single premium
pension risk transfer transactions in the U.S. Financial Solutions
business.
Compared with the year-ago period, excluding spread-based
businesses, fourth quarter investment income increased 14.8%,
reflecting higher yields. For the full year, investment income,
excluding spread-based businesses, increased 4.2%, reflecting
higher yields. Average investment yield increased to 4.86% in the
fourth quarter from 4.45% in the prior-year period due to higher
yields. For the full year, average investment yield was flat at
4.68% compared with the prior-year period of 4.69% due to higher
yields that were offset by lower variable investment income.
The effective tax rate for the quarter was 2.2% on pre-tax
income, below the expected range of 23% to 24%, primarily due to
losses in certain higher tax jurisdictions, tax credits and the
release of tax liabilities associated with uncertain tax positions.
For the full year, the effective tax rate was 21.8% on pre-tax
income, below the expected range of 23% to 24%, due to lower than
expected income in certain higher tax jurisdictions, tax credits
and the release of tax liabilities associated with uncertain tax
positions.
The effective tax rate for the quarter was 18.2% on pre-tax
adjusted operating income, below the expected range of 23% to 24%,
primarily due to losses in higher tax jurisdictions and tax
credits. For the full year, the effective tax rate was 21.5% on
pre-tax adjusted operating income, below the expected range of 23%
to 24%, due to lower than expected income in higher tax
jurisdictions and tax credits.
Tony Cheng, President and Chief Executive Officer, commented,
“In the quarter, we saw a continuation of the many positive trends
that we experienced in the first nine months, and this helped us
produce record results for the year. Our Financial Solutions
business continued to deliver very strong results across regions
and product lines. We continued to see good momentum in organic
business activity in the traditional business, and our in-force
transactions were especially strong, with $346 million of capital
deployed in the quarter. This brought our annual capital deployment
into in-force transactions to $933 million, a record for RGA.
“Additionally, we repurchased $50 million of common shares,
bringing the full year total to $200 million. 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)
2023
2022
2023
2022
Net premiums
$
1,912
$
1,778
$
7,023
$
6,590
Pre-tax income
30
114
318
195
Pre-tax adjusted operating income
25
108
313
147
Pre-tax adjusted operating income,
excluding notable items
25
108
330
317
Quarterly Results
- Results reflected favorable Group and Individual Health
experience and slightly unfavorable experience and client reporting
adjustments in Individual Life, which had a larger unfavorable
financial impact due to the mix of experience in uncapped and
capped cohorts.
Full Year Results
- Results reflected $17 million of unfavorable impacts from
assumption updates, which are reflected as notable items.
- Excluding notable items, results reflected favorable in-force
management actions, the impact of higher yields and favorable
Individual Health and Group experience.
- Individual Life experience was favorable, however, the mix of
experience between uncapped and capped cohorts led to unfavorable
financial impacts.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2023
2022
2023
2022
Asset-Intensive:
Pre-tax income (loss)
$
(140
)
$
(32
)
$
89
$
1
Pre-tax adjusted operating income
81
77
370
304
Pre-tax adjusted operating income,
excluding notable items
81
77
348
301
Capital Solutions:
Pre-tax income
$
20
$
24
$
81
$
144
Pre-tax adjusted operating income
20
24
81
144
Pre-tax adjusted operating income,
excluding notable items
20
24
81
144
Quarterly Results
- Asset-Intensive results reflected strong investment spreads due
to higher yields, including those on floating rate securities.
- Capital Solutions results were in line with expectations.
Full Year Results
- Asset-Intensive results reflected $22 million of favorable
impacts from assumptions updates, which are reflected as notable
items.
- Excluding notable items, Asset-Intensive results reflected
strong investment spreads, including those on floating rate
securities.
- Capital Solutions results were in line with expectations.
Canada
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2023
2022
2023
2022
Net premiums
$
311
$
308
$
1,215
$
1,219
Pre-tax income
21
50
91
104
Pre-tax adjusted operating income
20
47
91
108
Pre-tax adjusted operating income,
excluding notable items
20
42
104
109
Net Premiums
- Foreign currency exchange rates had an adverse effect on net
premiums of $1 million for the quarter and $45 million for the full
year.
Quarterly Results
- Results reflected unfavorable claims experience on Group
business and unfavorable impacts from a one-time item.
- Foreign currency exchange rates had a favorable effect of $4
million on pre-tax income and $5 million on pre-tax adjusted
operating income.
Full Year Results
- Results reflected $13 million of unfavorable impacts from
assumptions updates, which are reflected as notable items.
- Excluding notable items, results reflected unfavorable Group
claims experience.
- Foreign currency exchange rates had an adverse effect of $1
million on pre-tax income and an immaterial effect on pre-tax
adjusted operating income.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2023
2022
2023
2022
Pre-tax income
$
6
$
9
$
52
$
31
Pre-tax adjusted operating income
6
9
52
31
Pre-tax adjusted operating income,
excluding notable items
6
9
30
31
Quarterly Results
- Results reflected favorable longevity experience.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and an adverse effect of $1 million on pre-tax
adjusted operating income.
Full Year Results
- Results reflected $22 million of favorable impacts from
assumption updates, which are reflected as notable items.
- Excluding notable items, results reflected favorable longevity
experience.
- Foreign currency exchange rates had an adverse effect of $1
million on pre-tax income and $2 million on pre-tax adjusted
operating income.
Europe, Middle East and Africa
(EMEA)
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2023
2022
2023
2022
Net premiums
$
461
$
422
$
1,775
$
1,736
Pre-tax income (loss)
8
3
(21
)
46
Pre-tax adjusted operating income
(loss)
8
3
(20
)
46
Pre-tax adjusted operating income,
excluding notable items
8
3
27
59
Net Premiums
- Foreign currency exchange rates had a favorable effect on net
premiums of $14 million for the quarter and an adverse effect of
$13 million for the full year.
Quarterly Results
- Results reflected unfavorable mortality experience in the U.K.,
partially offset by new business in Continental Europe.
- Foreign currency exchange rates had a favorable effect of $1
million on pre-tax income and pre-tax adjusted operating
income.
Full Year Results
- Results reflected $47 million of unfavorable impacts from
assumption updates, primarily in the U.K., which are reflected as
notable items.
- Excluding notable items, results reflected unfavorable
mortality experience, primarily in the U.K.
- Foreign currency exchange rates had an adverse effect of $3
million on pre-tax income and pre-tax adjusted operating
income.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2023
2022
2023
2022
Pre-tax income
$
106
$
56
$
301
$
182
Pre-tax adjusted operating income
112
73
355
244
Pre-tax adjusted operating income,
excluding notable items
112
59
321
230
Quarterly Results
- Results reflected favorable longevity and other
experience.
- Foreign currency exchange rates had a favorable effect of $5
million on pre-tax income and pre-tax adjusted operating
income.
Full Year Results
- Results reflected $34 million of favorable impacts from
assumption updates, which are reflected as notable items.
- Excluding notable items, results reflected favorable longevity
and other experience.
- Foreign currency exchange rates had a favorable effect of $5
million on pre-tax income and $6 million on pre-tax adjusted
operating income.
Asia Pacific
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2023
2022
2023
2022
Net premiums
$
709
$
700
$
2,785
$
2,650
Pre-tax income
70
100
372
194
Pre-tax adjusted operating income
71
100
373
194
Pre-tax adjusted operating income,
excluding notable items
71
58
371
269
Net Premiums
- Foreign currency exchange rates had an adverse effect on net
premiums of $3 million for the quarter and $67 million for the full
year.
Quarterly Results
- Results reflected favorable underlying claims experience.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and a favorable effect of $1 million on pre-tax
adjusted operating income.
Full Year Results
- Results reflected $2 million of favorable impacts from
assumption updates, which are reflected as notable items.
- Excluding notable items, results reflected favorable claims
experience and strong new business.
- Foreign currency exchange rates had an adverse effect of $5
million on pre-tax income and pre-tax adjusted operating
income.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2023
2022
2023
2022
Net premiums
$
47
$
64
$
218
$
236
Pre-tax income
122
109
113
46
Pre-tax adjusted operating income
66
38
212
161
Pre-tax adjusted operating income,
excluding notable items
66
38
212
161
Quarterly Results
- Results reflected higher investment spreads including variable
investment income and strong new business.
- Foreign currency exchange rates had an adverse effect of $6
million on pre-tax income and $2 million on pre-tax adjusted
operating income.
Full Year Results
- Results reflected higher investment spreads and strong new
business.
- Foreign currency exchange rates had an adverse effect of $5
million on pre-tax income and $9 million on pre-tax adjusted
operating income.
Corporate and Other
Quarterly Results
Year-to-Date Results
($ in millions)
2023
2022
2023
2022
Pre-tax income (loss)
$
(79
)
$
(52
)
$
(236
)
$
(225
)
Pre-tax adjusted operating income
(loss)
(23
)
(92
)
(128
)
(162
)
Pre-tax adjusted operating income (loss),
excluding notable items
(23
)
(92
)
(128
)
(162
)
Quarterly Results
- Results were favorable compared to the quarterly average run
rate, primarily due to higher investment income.
Full Year Results
- Results were favorable compared to the expected run rate,
primarily due to higher investment income.
Repurchase Authorization
On January 23, 2024, the board of directors authorized a share
repurchase program for up to $500 million of outstanding common
stock. The authorization was effective immediately and does not
have an expiration date. In connection with this authorization, the
board of directors terminated the stock repurchase authority
granted in 2022.
Repurchases would be made in accordance with applicable
securities laws and would be made through market transactions,
block trades, privately negotiated transactions or other means, or
a combination of these methods, with the timing and number of
shares repurchased dependent on a variety of factors, including
share price, corporate and regulatory requirements, and market and
business conditions. Repurchases may be commenced or suspended from
time to time without prior notice.
Dividend Declaration
Effective January 30, 2024, the board of directors declared a
regular quarterly dividend of $0.85, payable February 27, 2024, to
shareholders of record as of February 13, 2024.
Earnings Conference Call
A conference call to discuss fourth quarter results will begin
at 10 a.m. Eastern Time on Friday, February 2, 2024. Interested
parties may access the call by dialing 1-844-481-2753 (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:
- 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 substantially all of the effect of net investment related
gains and losses, changes in the fair value of certain embedded
derivatives, and changes in the fair value of contracts that
provide market risk benefits, any of which can be volatile and may
not reflect the underlying performance of the Company’s businesses.
Additionally, adjusted operating income excludes, to the extent
applicable, 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. 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.
- 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.
- 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.
- 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 a
non-GAAP financial measure called shareholders’ average equity
position excluding AOCI and notable items.
- 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 a non-GAAP financial measure called adjusted
operating return on equity excluding notable items, which is
calculated as adjusted operating income excluding notable items
divided by average shareholders’ equity excluding notable items and
AOCI.
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 $3.7 trillion of life
reinsurance in force and assets of $97.6 billion as of December 31,
2023. 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 (whether related to COVID-19 or otherwise),
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, 2022, 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 December
31,
2023
2022
Diluted Earnings Per Share
Diluted Earnings Per Share
Net income (loss) available to RGA
shareholders
$
158
$
2.37
$
291
$
4.30
Reconciliation to adjusted operating
income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
(14
)
(0.22
)
(14
)
(0.21
)
Market risk benefits remeasurement (gains)
losses
22
0.33
(15
)
(0.22
)
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
143
2.14
53
0.78
Included in interest credited
4
0.06
1
0.01
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
)
(0.01
)
—
—
Other
23
0.34
1
0.01
Uncertain tax positions and other tax
related items
(19
)
(0.28
)
(9
)
(0.13
)
Net income attributable to noncontrolling
interest
2
0.03
2
0.03
Adjusted operating income
316
4.73
312
4.60
Notable items
—
—
(46
)
(0.69
)
Adjusted operating income, excluding
notable items
$
316
$
4.73
$
266
$
3.91
(Unaudited)
Twelve Months Ended December
31,
2023
2022
Diluted Earnings Per Share
Diluted Earnings Per Share
Net income available to RGA
shareholders
$
902
$
13.44
$
517
$
7.64
Reconciliation to adjusted operating
income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
280
4.18
352
5.19
Market risk benefits remeasurement (gains)
losses
(8
)
(0.12
)
8
0.12
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
(4
)
(0.06
)
19
0.28
Embedded derivatives:
Included in investment related
gains/losses, net
129
1.92
137
2.02
Included in interest credited
(5
)
(0.07
)
(42
)
(0.62
)
Investment (income) loss on unit-linked
variable annuities
1
0.01
19
0.28
Interest credited on unit-linked variable
annuities
(1
)
(0.01
)
(19
)
(0.28
)
Interest expense on uncertain tax
positions
—
—
—
—
Other
29
0.43
(63
)
(0.93
)
Uncertain tax positions and other tax
related items
4
0.06
(5
)
(0.07
)
Net income attributable to noncontrolling
interest
7
0.10
4
0.06
Adjusted operating income
1,334
19.88
927
13.69
Notable items
—
—
184
2.71
Adjusted operating income, excluding
notable items
$
1,334
$
19.88
$
1,111
$
16.40
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated
Effective Income Tax Rates
(Dollars in millions)
(Unaudited)
Three Months Ended December 31,
2023
Twelve Months Ended December 31,
2023
Pre-tax Income (Loss)
Income Taxes
Effective Tax Rate (1)
Pre-tax Income (Loss)
Income Taxes
Effective Tax Rate (1)
GAAP income
$
164
$
4
2.2
%
$
1,160
$
251
21.8
%
Reconciliation to adjusted operating
income:
Realized and unrealized (gains) losses,
derivatives and other, included in investment related gains
(losses), net
(18
)
(4
)
360
80
Market risk benefits remeasurement (gains)
losses
28
6
(10
)
(2
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
(3
)
(1
)
(5
)
(1
)
Embedded derivatives:
Included in investment related
gains/losses, net
181
38
163
34
Included in interest credited
5
1
(6
)
(1
)
Investment (income) loss on unit-linked
variable annuities
(3
)
(1
)
1
—
Interest credited on unit-linked variable
annuities
3
1
(1
)
—
Interest expense on uncertain tax
positions
(1
)
—
—
—
Other
30
7
37
8
Uncertain tax positions and other tax
related items
—
19
—
(4
)
Adjusted operating income
386
70
18.2
%
1,699
365
21.5
%
Notable items
—
—
(3
)
(3
)
Adjusted operating income, excluding
notable items
$
386
$
70
$
1,696
$
362
(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.
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 December
31,
2023
2022
Income (loss) before income taxes
$
164
$
381
Reconciliation to pre-tax adjusted
operating income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
(18
)
(46
)
Market risk benefits remeasurement (gains)
losses
28
(19
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
(3
)
2
Embedded derivatives:
Included in investment related
gains/losses, net
181
67
Included in interest credited
5
1
Investment (income) loss on unit-linked
variable annuities
(3
)
2
Interest credited on unit-linked variable
annuities
3
(2
)
Interest expense on uncertain tax
positions
(1
)
—
Other
30
1
Pre-tax adjusted operating income
386
387
Notable items
—
(61
)
Pre-tax adjusted operating income,
excluding notable items
$
386
$
326
(Unaudited)
Twelve Months Ended December
31,
2023
2022
Income before income taxes
$
1,160
$
718
Reconciliation to pre-tax adjusted
operating income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
360
425
Market risk benefits remeasurement (gains)
losses
(10
)
10
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
(5
)
24
Embedded derivatives:
Included in investment related
gains/losses, net
163
173
Included in interest credited
(6
)
(53
)
Investment (income) loss on unit-linked
variable annuities
1
24
Interest credited on unit-linked variable
annuities
(1
)
(24
)
Interest expense on uncertain tax
positions
—
—
Other
37
(80
)
Pre-tax adjusted operating income
1,699
1,217
Notable items
(3
)
242
Pre-tax adjusted operating income,
excluding notable items
$
1,696
$
1,459
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 December 31,
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
$
30
$
(1
)
$
(4
)
$
25
$
—
$
25
Financial Solutions:
Asset-Intensive
(140
)
31
190
81
—
81
Capital Solutions
20
—
—
20
—
20
Total U.S. and Latin America
(90
)
30
186
126
—
126
Canada Traditional
21
(1
)
—
20
—
20
Canada Financial Solutions
6
—
—
6
—
6
Total Canada
27
(1
)
—
26
—
26
EMEA Traditional
8
—
—
8
—
8
EMEA Financial Solutions
106
6
—
112
—
112
Total EMEA
114
6
—
120
—
120
APAC Traditional
70
1
—
71
—
71
APAC Financial Solutions
122
(56
)
—
66
—
66
Total Asia Pacific
192
(55
)
—
137
—
137
Corporate and Other
(79
)
56
—
(23
)
—
(23
)
Consolidated
$
164
$
36
$
186
$
386
$
—
$
386
(Unaudited)
Three Months Ended December 31,
2022
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
$
114
$
1
$
(7
)
$
108
$
—
$
108
Financial Solutions:
Asset-Intensive
(32
)
34
75
77
—
77
Capital Solutions
24
—
—
24
—
24
Total U.S. and Latin America
106
35
68
209
—
209
Canada Traditional
50
(3
)
—
47
(5
)
42
Canada Financial Solutions
9
—
—
9
—
9
Total Canada
59
(3
)
—
56
(5
)
51
EMEA Traditional
3
—
—
3
—
3
EMEA Financial Solutions
56
17
—
73
(14
)
59
Total EMEA
59
17
—
76
(14
)
62
APAC Traditional
100
—
—
100
(42
)
58
APAC Financial Solutions
109
(71
)
—
38
—
38
Total Asia Pacific
209
(71
)
—
138
(42
)
96
Corporate and Other
(52
)
(40
)
—
(92
)
—
(92
)
Consolidated
$
381
$
(62
)
$
68
$
387
$
(61
)
$
326
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Pre-tax Income
to Pre-tax Adjusted Operating Income
(Dollars in millions)
(Unaudited)
Twelve Months Ended December 31,
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
$
318
$
(1
)
$
(4
)
$
313
$
17
$
330
Financial Solutions:
Asset-Intensive
89
120
161
370
(22
)
348
Capital Solutions
81
—
—
81
—
81
Total U.S. and Latin America
488
119
157
764
(5
)
759
Canada Traditional
91
—
—
91
13
104
Canada Financial Solutions
52
—
—
52
(22
)
30
Total Canada
143
—
—
143
(9
)
134
EMEA Traditional
(21
)
1
—
(20
)
47
27
EMEA Financial Solutions
301
54
—
355
(34
)
321
Total EMEA
280
55
—
335
13
348
APAC Traditional
372
1
—
373
(2
)
371
APAC Financial Solutions
113
99
—
212
—
212
Total Asia Pacific
485
100
—
585
(2
)
583
Corporate and Other
(236
)
108
—
(128
)
—
(128
)
Consolidated
$
1,160
$
382
$
157
$
1,699
$
(3
)
$
1,696
(Unaudited)
Twelve Months Ended December 31,
2022
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
$
195
$
—
$
(48
)
$
147
$
170
$
317
Financial Solutions:
Asset-Intensive
1
135
168
304
(3
)
301
Capital Solutions
144
—
—
144
—
144
Total U.S. and Latin America
340
135
120
595
167
762
Canada Traditional
104
4
—
108
1
109
Canada Financial Solutions
31
—
—
31
—
31
Total Canada
135
4
—
139
1
140
EMEA Traditional
46
—
—
46
13
59
EMEA Financial Solutions
182
62
—
244
(14
)
230
Total EMEA
228
62
—
290
(1
)
289
APAC Traditional
194
—
—
194
75
269
APAC Financial Solutions
46
115
—
161
—
161
Total Asia Pacific
240
115
—
355
75
430
Corporate and Other
(225
)
63
—
(162
)
—
(162
)
Consolidated
$
718
$
379
$
120
$
1,217
$
242
$
1,459
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Per Share and Shares Data
(In thousands, except per share
data)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Earnings per share from net income
(loss):
Basic earnings per share
$
2.40
$
4.36
$
13.60
$
7.73
Diluted earnings per share (1)
$
2.37
$
4.30
$
13.44
$
7.64
Diluted earnings per share from adjusted
operating income
$
4.73
$
4.60
$
19.88
$
13.69
Weighted average number of common and
common equivalent shares outstanding
66,721
67,793
67,117
67,703
(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 December 31,
2023
2022
Treasury shares
19,690
18,635
Common shares outstanding
65,621
66,676
Book value per share outstanding
$
138.39
$
106.19
Book value per share outstanding, before
impact of AOCI
$
144.01
$
134.26
Reconciliation of Book Value Per Share to Book
Value Per Share Excluding AOCI
(Unaudited)
At December 31,
2023
2022
Book value per share outstanding
$
138.39
$
106.19
Less effect of AOCI:
Accumulated currency translation
adjustment
1.04
(1.73
)
Unrealized (depreciation) appreciation of
securities
(55.88
)
(82.44
)
Effect of updating discount rates on
future policy benefits
49.62
56.32
Change in instrument-specific credit risk
for market risk benefits
0.05
0.19
Pension and postretirement benefits
(0.45
)
(0.41
)
Book value per share outstanding, before
impact of AOCI
$
144.01
$
134.26
Reconciliation of Shareholders'
Average Equity to Shareholders' Average Equity Excluding AOCI
(Dollars in millions)
(Unaudited)
Trailing Twelve Months Ended December 31,
2023:
Average Equity
Shareholders' average equity
$
7,931
Less effect of AOCI:
Accumulated currency translation
adjustment
(30
)
Unrealized (depreciation) appreciation of
securities
(5,018
)
Effect of updating discount rates on
future policy benefits
3,774
Change in instrument-specific credit risk
for market risk benefits
10
Pension and postretirement benefits
(22
)
Shareholders' average equity, excluding
AOCI
9,217
Year-to-date notable items, net of tax
37
Shareholders' average equity, excluding
AOCI and notable items
$
9,254
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 December 31,
2023:
Income
Net income available to RGA
shareholders
$
902
11.4
%
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, net
297
Change in fair value of embedded
derivatives
124
Tax expense on uncertain tax positions and
other tax related items
4
Net income attributable to noncontrolling
interest
7
Adjusted operating income
1,334
14.5
%
Notable items after tax
—
Adjusted operating income, excluding
notable items
$
1,334
14.4
%
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements
of Income
(Dollars in millions)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Revenues:
Net premiums
$
4,108
$
3,446
$
15,085
$
13,078
Investment income, net of related
expenses
956
828
3,591
3,161
Investment related gains (losses), net
(155
)
(6
)
(481
)
(539
)
Other revenue
98
89
372
527
Total revenues
5,007
4,357
18,567
16,227
Benefits and expenses:
Claims and other policy benefits
3,837
3,125
13,872
11,982
Future policy benefits remeasurement
(gains) losses
33
(11
)
(62
)
291
Market risk benefits remeasurement (gains)
losses
28
(19
)
(10
)
10
Interest credited
217
214
864
682
Policy acquisition costs and other
insurance expenses
369
323
1,397
1,344
Other operating expenses
290
289
1,089
1,009
Interest expense
69
55
257
191
Total benefits and expenses
4,843
3,976
17,407
15,509
Income before income taxes
164
381
1,160
718
Provision for income taxes
4
88
251
197
Net income
160
293
909
521
Net income attributable to noncontrolling
interest
2
2
7
4
Net income available to RGA
shareholders
$
158
$
291
$
902
$
517
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240131497689/en/
Jeff Hopson Senior Vice President - Investor Relations (636)
736-2068
Reinsurance Group of Ame... (NYSE:RGA)
Historical Stock Chart
From Dec 2024 to Jan 2025
Reinsurance Group of Ame... (NYSE:RGA)
Historical Stock Chart
From Jan 2024 to Jan 2025
