Fourth Quarter Results
- Net income available to RGA shareholders of $2.22 per diluted
share
- Adjusted operating income of $4.99 per diluted share
- Deployed capital of $250 million into in-force block
transactions
Full Year Results
- Net income available to RGA shareholders of $10.73 per diluted
share
- Adjusted operating income of $20.06 per diluted share
- Adjusted operating income, excluding notable items of $22.57
per diluted share
- ROE of 7.1%, adjusted operating ROE of 13.8%, adjusted
operating ROE, excluding notable items of 15.4% for the trailing
twelve months
- Deployed capital of $1,676 million into in-force block
transactions
- Increased value of in-force business margins by $4.6 billion,
or 13.9%, in the year to $37.6 billion
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 $148
million, or $2.22 per diluted share, compared with $158 million, or
$2.37 per diluted share, in the prior-year quarter. Adjusted
operating income and adjusted operating income, excluding notable
items for the fourth quarter totaled $334 million, or $4.99 per
diluted share, compared with $316 million, or $4.73 per diluted
share, the year before. Net foreign currency fluctuations had a
favorable effect of $0.07 per diluted share on net income available
to RGA shareholders, and $0.09 per diluted share on adjusted
operating income, both as compared with the prior year.
Full year net income available to RGA shareholders totaled $717
million, or $10.73 per diluted share, compared with $902 million,
or $13.44 per diluted share the year before. Adjusted operating
income for the full year totaled $1,342 million, or $20.06 per
diluted share, compared with $1,334 million, or $19.88 per diluted
share the year before. Adjusted operating income, excluding notable
items for the full year totaled $1,510 million, or $22.57 per
diluted share, compared with $1,334 million, or $19.88 per diluted
share the year before. Net foreign currency fluctuations had a
favorable effect of $0.18 per diluted share on net income available
to RGA shareholders, and $0.06 per diluted share on adjusted
operating income, both as compared with the year before.
Tony Cheng, President and Chief Executive Officer, commented,
“The fourth quarter capped off a tremendous year, as we delivered
record annual operating earnings, with many achievements across our
organization. In the quarter, we continued to see strong momentum
in organic business activity in the traditional business, and our
in-force transactions were solid, with $250 million of capital
deployed. This brought our full-year capital deployment into
in-force transactions to $1,676 million, a record for RGA and an
increase of approximately 80% over the previous record in 2023.
Equally strong was the record expected future value from new
business written during the year, with a significant amount coming
from exclusive opportunities.
“Our balance sheet remains strong, and we ended the quarter with
deployable capital of $1.7 billion. Based on favorable business
conditions and RGA’s global leadership position, we remain
optimistic about the future and expect to continue to deliver
attractive financial results over time. In that respect, I am
delighted to report that we have increased our intermediate term
financial targets, including raising our adjusted operating ROE
target to 13% to 15%, to reflect the expectation of continued
strong fundamentals of our business for the foreseeable
future.”
Quarterly Results
Year-to-Date Results
($ in millions, except per share
data)
2024
2023
2024
2023
Net premiums
$
4,156
$
4,108
$
17,843
$
15,085
Net income available to RGA
shareholders
148
158
717
902
Net income available to RGA shareholders
per diluted share
2.22
2.37
10.73
13.44
Adjusted operating income
334
316
1,342
1,334
Adjusted operating income, excluding
notable items
334
316
1,510
1,334
Adjusted operating income per diluted
share
4.99
4.73
20.06
19.88
Adjusted operating income, excluding
notable items per diluted share
4.99
4.73
22.57
19.88
Book value per share
164.19
138.39
Book value per share, excluding
accumulated other comprehensive income (AOCI)
151.31
144.01
Book value per share, excluding AOCI and
B36
151.97
146.07
Total assets
118,675
97,623
Information regarding the non-GAAP financial measures and
operating measures included in this press release, including
definitions of these measures, reconciliations to the most
comparable GAAP measures and limitations related thereto, is
included below under “Non-GAAP Financial Measures and Other
Definitions” and in the tables attached to this press release.
In the fourth quarter, consolidated net premiums totaled $4.2
billion, an increase of 1.2% over the 2023 fourth quarter, with an
adverse net foreign currency effect of $15 million. Net premiums
for the quarter included a contribution of approximately $150
million from a single premium pension risk transfer, compared with
approximately $500 million in the prior year quarter, both of which
are in the U.S. Financial Solutions business. For the full year,
net premiums totaled $17.8 billion, an increase of 18.3% from 2023,
with an adverse net foreign currency effect of $59 million. Net
premiums for the full year included a contribution of approximately
$2.9 billion from single premium pension risk transfers, compared
with approximately $1.5 billion in the prior year.
Compared with the year-ago period, excluding spread-based
businesses, fourth quarter investment income increased 9.3%,
primarily due to higher average invested assets. For the full year,
investment income, excluding spread-based businesses, increased
10.4%, reflecting higher average invested assets. Average
investment yield decreased to 4.83% in the fourth quarter, compared
with 4.86% in the prior-year period, reflecting higher investment
expenses and lower variable investment income, partially offset by
the favorable impacts from new money rates exceeding portfolio
yields. For the full year, average investment yield increased to
4.82% compared with the prior-year period of 4.68% due to higher
new money rates relative to the existing portfolio yields at the
time.
The effective tax rate for the quarter was 33.6% on pre-tax
income, above the expected range of 24% to 25%, primarily due to
non-cash tax expense on a restructuring transaction that occurred
in the quarter and income earned in non-U.S. jurisdictions. The
increase was partially offset with a release of valuation
allowances in non-U.S. jurisdictions. The effective tax rate for
the full year was 26.3% on pre-tax income, above the expected range
of 24% to 25%, primarily due to non-cash tax expense on a legal
entity restructuring that occurred in the fourth quarter and income
earned in non-U.S. jurisdictions. The increase was partially offset
with a release of valuation allowances in non-U.S.
jurisdictions.
The effective tax rate for the quarter was 22.5% on adjusted
operating income before taxes, below the expected range of 24% to
25%, primarily related to a release of valuation allowances in
non-U.S. jurisdictions, partially offset by income earned in
non-U.S. jurisdictions with tax rates higher than the U.S. The
effective tax rate for the full year was 23.4% on adjusted
operating income before taxes, below the expected range of 24% to
25%, primarily related to a release of valuation allowances in
non-U.S. jurisdictions, partially offset by income earned in
non-U.S. jurisdictions with tax rates higher than the U.S.
SEGMENT RESULTS
U.S. and Latin America
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
2,046
$
1,912
$
7,500
$
7,023
Adjusted operating income before taxes
151
25
525
313
Adjusted operating income before taxes,
excluding notable items
151
25
578
330
Quarterly Results
- Results reflected favorable impacts of in-force management
actions, partially offset by unfavorable Group experience.
Full Year Results
- Results reflected $30 million of favorable impacts from the
annual actuarial assumption review and $83 million of unfavorable
impacts from the change in policy retention limit, both of which
are reflected as notable items.
- Excluding notable items, results reflected favorable impacts of
in-force management actions and favorable Individual Health
results.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Adjusted operating income before taxes
76
101
326
451
Adjusted operating income before taxes,
excluding notable items
76
101
326
429
Quarterly Results
- Results were below the expected range due to the continued
runoff of existing annuity business and the earnings emergence from
new transactions.
Full Year Results
- Results were below the expected range due to the continued
runoff of existing annuity business and the earnings emergence from
new transactions.
Canada
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
333
$
311
$
1,291
$
1,215
Adjusted operating income before taxes
32
20
134
91
Adjusted operating income before taxes,
excluding notable items
32
20
129
104
Net Premiums
- Foreign currency exchange rates had an adverse effect on net
premiums of $10 million for the quarter and $20 million for the
full year.
Quarterly Results
- Results reflect unfavorable Individual Life claims experience,
mostly offset by favorable experience in Group business.
- Foreign currency exchange rates had an adverse effect of $1
million on adjusted operating income before taxes.
Full Year Results
- Results reflected $30 million of favorable impacts from the
annual actuarial assumption review and $25 million of unfavorable
impacts from the change in policy retention limit, both of which
are reflected as notable items.
- Excluding notable items, results were in line with
expectations.
- Foreign currency exchange rates had an adverse effect of $2
million on adjusted operating income before taxes.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Adjusted operating income before taxes
8
6
26
52
Adjusted operating income before taxes,
excluding notable items
8
6
26
30
Quarterly Results
- Results were in line with expectations.
- Foreign currency exchange rates had an immaterial effect on
adjusted operating income before taxes.
Full Year Results
- Results were in line with expectations.
- Foreign currency exchange rates had an adverse effect of $1
million on adjusted operating income before taxes.
Europe, Middle East and Africa
(EMEA)
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
488
$
461
$
2,002
$
1,775
Adjusted operating income (loss) before
taxes
11
8
30
(20
)
Adjusted operating income before taxes,
excluding notable items
11
8
70
27
Net Premiums
- Foreign currency exchange rates had a favorable effect on net
premiums of $8 million for the quarter and $28 million for the full
year.
Quarterly Results
- Results reflected unfavorable claims experience, partially
offset by higher fee income related to a treaty recapture.
- Foreign currency exchange rates had a favorable effect of $2
million on adjusted operating income before taxes.
Full Year Results
- Results reflected $25 million of unfavorable impacts from the
annual actuarial assumption review and $15 million of unfavorable
impacts from the change in policy retention limit, both of which
are reflected as notable items.
- Excluding notable items, results reflected unfavorable claims
experience, partially offset by higher fee income related to a
treaty recapture and the positive impacts from new business.
- Foreign currency exchange rates had a favorable effect of $1
million on adjusted operating income before taxes.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Adjusted operating income before taxes
96
112
345
355
Adjusted operating income before taxes,
excluding notable items
96
112
347
321
Quarterly Results
- Results reflected the impact of strong new business in recent
periods, favorable longevity experience, and higher investment
margins.
- Foreign currency exchange rates had a favorable effect of $1
million on adjusted operating income before taxes.
Full Year Results
- Results reflected $2 million of unfavorable impacts from
assumption updates, which are reflected as notable items.
- Excluding notable items, results reflected the impact of strong
new business in recent periods and favorable longevity
experience.
- Foreign currency exchange rates had a favorable effect of $6
million on adjusted operating income before taxes.
Asia Pacific
Traditional
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
834
$
709
$
3,014
$
2,785
Adjusted operating income before taxes
63
71
282
373
Adjusted operating income before taxes,
excluding notable items
63
71
377
371
Net Premiums
- Foreign currency exchange rates had an adverse effect on net
premiums of $9 million for the quarter and $59 million for the full
year.
Quarterly Results
- Results reflected unfavorable claims and other experience.
However, economic claims experience was favorable for the
quarter.
- Foreign currency exchange rates had a favorable effect of $1
million on adjusted operating income before taxes.
Full Year Results
- Results reflected $82 million of unfavorable impacts from the
annual actuarial assumption review and $13 million of unfavorable
impacts from the change in policy retention limit, both of which
are reflected as notable items.
- Excluding notable items, results reflected the benefit of
in-force management actions and favorable overall experience.
- Foreign currency exchange rates had a favorable effect of $1
million on adjusted operating income before taxes.
Financial Solutions
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Net premiums
$
66
$
47
$
224
$
218
Adjusted operating income before taxes
65
66
255
212
Adjusted operating income before taxes,
excluding notable items
65
66
264
212
Quarterly Results
- Results reflected favorable overall experience, partially
offset by lower variable investment income.
- Foreign currency exchange rates had a favorable effect of $6
million on adjusted operating income before taxes.
Full Year Results
- Results reflected $9 million of unfavorable impacts from
assumption changes, which are reflected as notable items.
- Excluding notable items, results reflected favorable overall
experience, partially offset by lower variable investment
income.
- Foreign currency exchange rates had a favorable effect of $1
million on adjusted operating income before taxes.
Corporate and Other
Quarterly Results
Year-to-Date Results
($ in millions)
2024
2023
2024
2023
Adjusted operating income (loss) before
taxes
(71
)
(23
)
(171
)
(128
)
Adjusted operating income (loss) before
taxes, excluding notable items
(71
)
(23
)
(171
)
(128
)
Quarterly Results
- Results were unfavorable compared to the expected quarterly
average run rate due to higher general expenses, primarily related
to projects, initiatives, and incentive compensation accrual
true-up, and higher financing costs.
Full Year Results
- Results were unfavorable due to higher general expenses,
primarily related to projects, initiatives, and incentive
compensation, and higher financing costs, partially offset by
favorable investment income.
Intermediate Financial Targets
We have updated our intermediate term financial targets,
including raising our adjusted operating ROE target to 13% to 15%,
and current run rates to better reflect our expectations going
forward due to the growth in our business. Additional information
about updated financial targets is included in the earnings
presentation posted to our website.
Dividend Declaration
Effective February 4, 2025, the board of directors declared a
regular quarterly dividend of $0.89, payable March 4, 2025, to
shareholders of record as of February 18, 2025.
Earnings Conference Call
A conference call to discuss fourth quarter results will begin
at 10 a.m. Eastern Time on Friday, February 7, 2025. 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 RGA'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.
RGA 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, RGA 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.
Adjusted operating income (loss) before
income taxes, when presented at a segment level, is a measure
reported to our management for purposes of making decisions about
allocating resources to our business segments and assessing the
performance of our business segments, and will be presented in our
financial statement footnotes beginning with the Company’s annual
report on Form 10-K to be filed for the fiscal year ended December
31, 2024 in accordance with ASC 280 – “Segment Reporting.” Adjusted
operating income (loss) before income taxes, when presented on a
consolidated basis, is a non-GAAP financial measure.
2.
Adjusted operating income (on a pre-tax and after-tax basis),
excluding notable items, and adjusted operating income per diluted
share, 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 include the financial impact of
the Company’s assumption reviews.
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. Except as otherwise noted herein, the non-GAAP figures
and reconciliations presented herein reflect the Company’s adoption
of the Financial Accounting Standards Board’s Accounting Standards
Update No. 2018-12, “Targeted Improvements to the Accounting for
Long-Duration Contracts” and related amendments (“LDTI”). For
additional information regarding the Company’s adoption of LDTI,
see Note 1 – “Business and Basis of Presentation” and Note 3 –
“Impact of New Accounting Standard” in the notes to the
Consolidated Financial Statements in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023.
The Company is unable to provide reconciliations of the
intermediate term targets of consolidated adjusted operating income
(loss) before taxes, adjusted operating income (loss) before taxes,
excluding notable items (on both a segment-level and consolidated
basis), consolidated adjusted operating ROE, respectively, which
are forward-looking non-GAAP financial measures, due to, among
other things, that these targets are a composite of our goals for
future results, the inherent difficulty in forecasting generally,
and the difficulty of quantifying accurate forecasts of the
numerous components comprising these calculations that would be
necessary to provide any such reconciliations. In addition, actual
performance in future periods may vary from the intermediate term
target ranges for a variety of reasons, including known and unknown
risk and uncertainties.
Other Definitions:
Value of In-force Business Margins is an operating measure
reflecting:
- Expected underwriting margin1, which is derived from the
estimated cash flows used to determine LDTI reserves. This amount
is calculated using the locked-in LDTI liability discount
rates.
- Expected investment margin, which (i) for LDTI products, values
derived from the difference between using the expected book yields2
and locked-in LDTI liability discount rates and (ii) for
Interest-sensitive products, values calculated using expected
investment spread2 and expected duration of treaty.
- Expected fee income, which comes primarily from capital
solutions products, is calculated as the present value of expected
fees.
Such measure excludes management expenses, impact of capital,
and taxes.
These values are based on the Company’s current estimates and
assumptions and could materially change.
1 Represents the expected difference, based on current
assumptions, between the present value of premiums and present
value of claim benefits and treaty allowances, with:
- Present value of premiums is the present value of expected
gross premiums plus Deferred Profit Liability (DPL);
- Present value of claim benefits is the present value of
expected claim payments less Liability for Future Policy Benefits
(LFPB) (before zero floor is applied); and
- Present value of treaty allowances is the present value of
future allowances plus related Deferred Acquisition Costs
(DAC).
2 Expected book yields are based on 2024 actual portfolio book
yields adjusted for longer-term VII expectations. Investment spread
is the difference between expected book yields and interest
credited expense.
Cohort 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 $3.9 trillion of life
reinsurance in force and assets of $118.7 billion as of December
31, 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
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 December
31,
2024
2023
Diluted Earnings Per Share
Diluted Earnings Per Share
Net income available to RGA
shareholders
$
148
$
2.22
$
158
$
2.37
Reconciliation to adjusted operating
income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
300
4.48
(14
)
(0.22
)
Market risk benefits remeasurement (gains)
losses
(26
)
(0.39
)
22
0.33
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
4
0.06
(2
)
(0.03
)
Embedded derivatives:
Included in investment related
gains/losses, net
(99
)
(1.48
)
143
2.14
Included in interest credited
(2
)
(0.03
)
4
0.06
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
(1
)
(0.01
)
Other (1)
(16
)
(0.24
)
23
0.34
Uncertain tax positions and other tax
related items
22
0.33
(19
)
(0.28
)
Net income attributable to noncontrolling
interest
2
0.03
2
0.03
Adjusted operating income
334
4.99
316
4.73
Notable items
—
—
—
—
Adjusted operating income, excluding
notable items
$
334
$
4.99
$
316
$
4.73
(Unaudited)
Twelve Months Ended December
31,
2024
2023
Diluted Earnings Per Share
Diluted Earnings Per Share
Net income available to RGA
shareholders
$
717
$
10.73
$
902
$
13.44
Reconciliation to adjusted operating
income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
706
10.56
280
4.18
Market risk benefits remeasurement (gains)
losses
(35
)
(0.52
)
(8
)
(0.12
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
2
0.03
(4
)
(0.06
)
Embedded derivatives:
Included in investment related
gains/losses, net
(92
)
(1.38
)
129
1.92
Included in interest credited
12
0.18
(5
)
(0.07
)
Investment (income) loss on unit-linked
variable annuities
2
0.03
1
0.01
Interest credited on unit-linked variable
annuities
(2
)
(0.03
)
(1
)
(0.01
)
Interest expense on uncertain tax
positions
1
0.01
—
—
Other (1)
13
0.19
29
0.43
Uncertain tax positions and other tax
related items
11
0.16
4
0.06
Net income attributable to noncontrolling
interest
7
0.10
7
0.10
Adjusted operating income
1,342
20.06
1,334
19.88
Notable items
168
2.51
—
—
Adjusted operating income, excluding
notable items
$
1,510
$
22.57
$
1,334
$
19.88
(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 December 31,
2024
Twelve Months Ended December 31,
2024
Pre-tax Income (Loss)
Income Taxes
Effective Tax Rate(1)
Pre-tax Income (Loss)
Income Taxes
Effective Tax Rate(1)
GAAP income
$
225
$
75
33.6
%
$
980
$
256
26.3
%
Reconciliation to adjusted operating
income:
Realized and unrealized (gains) losses,
derivatives and other, included in investment related gains
(losses), net
380
80
897
191
Market risk benefits remeasurement (gains)
losses
(32
)
(6
)
(44
)
(9
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
6
2
3
1
Embedded derivatives:
Included in investment related
gains/losses, net
(125
)
(26
)
(116
)
(24
)
Included in interest credited
(3
)
(1
)
15
3
Investment (income) loss on unit-linked
variable annuities
2
1
3
1
Interest credited on unit-linked variable
annuities
(2
)
(1
)
(3
)
(1
)
Interest expense on uncertain tax
positions
1
—
1
—
Other (2)
(21
)
(5
)
16
3
Uncertain tax positions and other tax
related items
—
(22
)
—
(11
)
Adjusted operating income
431
97
22.5
%
1,752
410
23.4
%
Notable items
—
—
194
26
Adjusted operating income, excluding
notable items
$
431
$
97
$
1,946
$
436
(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 December
31,
2024
2023
Income before income taxes
$
225
$
164
Reconciliation to pre-tax adjusted
operating income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
380
(18
)
Market risk benefits remeasurement (gains)
losses
(32
)
28
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
6
(3
)
Embedded derivatives:
Included in investment related
gains/losses, net
(125
)
181
Included in interest credited
(3
)
5
Investment (income) loss on unit-linked
variable annuities
2
(3
)
Interest credited on unit-linked variable
annuities
(2
)
3
Interest expense on uncertain tax
positions
1
(1
)
Other (1)
(21
)
30
Pre-tax adjusted operating income
431
386
Notable items
—
—
Pre-tax adjusted operating income,
excluding notable items
$
431
$
386
(Unaudited)
Twelve Months Ended December
31,
2024
2023
Income before income taxes
$
980
$
1,160
Reconciliation to pre-tax adjusted
operating income:
Realized (gains) losses, derivatives and
other, included in investment related gains (losses), net
897
360
Market risk benefits remeasurement (gains)
losses
(44
)
(10
)
Realized (gains) losses on funds withheld,
included in investment income, net of related expenses
3
(5
)
Embedded derivatives:
Included in investment related
gains/losses, net
(116
)
163
Included in interest credited
15
(6
)
Investment (income) loss on unit-linked
variable annuities
3
1
Interest credited on unit-linked variable
annuities
(3
)
(1
)
Interest expense on uncertain tax
positions
1
—
Other (1)
16
37
Pre-tax adjusted operating income
1,752
1,699
Notable items
194
(3
)
Pre-tax adjusted operating income,
excluding notable items
$
1,946
$
1,696
(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
Per Share and Shares Data
(In thousands, except per share
data)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Earnings per share from net income
(loss):
Basic earnings per share
$
2.26
$
2.40
$
10.90
$
13.60
Diluted earnings per share
$
2.22
$
2.37
$
10.73
$
13.44
Diluted earnings per share from adjusted
operating income
$
4.99
$
4.73
$
20.06
$
19.88
Weighted average number of common and
common equivalent shares outstanding
66,982
66,721
66,880
67,117
(Unaudited)
At December 31,
2024
2023
Treasury shares
19,439
19,690
Common shares outstanding
65,872
65,621
Book value per share outstanding
$
164.19
$
138.39
Book value per share outstanding, before
impact of AOCI
$
151.31
$
144.01
Reconciliation of Book Value Per
Share to Book Value Per Share Excluding AOCI and B36
Derivatives
(Unaudited)
At December 31,
2024
2023
Book value per share outstanding
$
164.19
$
138.39
Less effect of AOCI:
Accumulated currency translation
adjustment
(0.27
)
1.04
Unrealized (depreciation) appreciation of
securities
(68.73
)
(55.88
)
Effect of updating discount rates on
future policy benefits
82.16
49.62
Change in instrument-specific credit risk
for market risk benefits
0.03
0.05
Pension and postretirement benefits
(0.31
)
(0.45
)
Book value per share outstanding, before
impact of AOCI
151.31
144.01
Less effect of B36 derivatives
(0.66
)
(2.06
)
Book value per share outstanding, before
impact of AOCI and B36 derivatives
$
151.97
$
146.07
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Shareholders'
Average Equity to Shareholders' Average Equity Excluding AOCI
(Dollars in millions)
(Unaudited)
Trailing Twelve Months Ended December 31,
2024:
Average Equity
Shareholders' average equity
$
10,045
Less effect of AOCI:
Accumulated currency translation
adjustment
60
Unrealized (depreciation) appreciation of
securities
(3,950
)
Effect of updating discount rates on
future policy benefits
4,234
Change in instrument-specific credit risk
for market risk benefits
4
Pension and postretirement benefits
(27
)
Shareholders' average equity, excluding
AOCI
9,724
Year-to-date notable items, net of tax
67
Shareholders' average equity, excluding
AOCI and notable items
$
9,791
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,
2024:
Income
Net income available to RGA
shareholders
$
717
7.1 %
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, net
687
Change in fair value of embedded
derivatives
(80)
Tax expense on uncertain tax positions and
other tax related items
11
Net income attributable to noncontrolling
interest
7
Adjusted operating income
1,342
13.8 %
Notable items after tax
168
Adjusted operating income, excluding
notable items
$
1,510
15.4 %
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,
2024
2023
2024
2023
Revenues:
Net premiums
$
4,156
$
4,108
$
17,843
$
15,085
Investment income, net of related
expenses
1,185
956
4,416
3,591
Investment related gains (losses), net
(247
)
(155
)
(745
)
(481
)
Other revenue
147
98
593
372
Total revenues
5,241
5,007
22,107
18,567
Benefits and expenses:
Claims and other policy benefits
3,943
3,837
16,903
13,872
Future policy benefits remeasurement
(gains) losses
(69
)
33
(32
)
(62
)
Market risk benefits remeasurement (gains)
losses
(32
)
28
(44
)
(10
)
Interest credited
292
217
1,087
864
Policy acquisition costs and other
insurance expenses
411
369
1,641
1,397
Other operating expenses
385
290
1,268
1,089
Interest expense
86
69
304
257
Total benefits and expenses
5,016
4,843
21,127
17,407
Income before income taxes
225
164
980
1,160
Provision for income taxes
75
4
256
251
Net income
150
160
724
909
Net income attributable to noncontrolling
interest
2
2
7
7
Net income available to RGA
shareholders
$
148
$
158
$
717
$
902
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250204363813/en/
Investor Contact Jeff Hopson Senior Vice President -
Investor Relations (636) 736-2068
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