Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q1 2021 Earnings Presentation
22 slides from Reinsurance Group Of America's earnings presentation, May 7, 2021
Slide 1: 1Q21 Earnings Presentation
The security of experience. The power of innovation. 1Q21 Earnings Presentation Reinsurance Group of America, Incorporated May 6, 2021
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial perform
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures RGA uses a non-GAAP financial measure called adjusted operating income as a basis for analyzing financial results. This measure also serves as a basis for establishing target levels and awards under RGA’s management incentive programs. Management believes that adju
Slide 4: Key Messages
Key Messages RGA’s Global Platform Continues to Significant COVID-19 Impact Was Demonstrate Resilience Manageable Results were solid as adjusted operating loss Q1 COVID-19 claim costs of $1.241 per diluted share included $5.312 per ‒ $340 million of estimated COVID-19 U.S. individual diluted sha
Slide 5: Estimated COVID-19 Earnings Impacts
Estimated COVID-19 Earnings Impacts COVID-19 impacts consistent with higher Estimated Pre-tax COVID-19 Impacts1 1Q21 20202 general population reported deaths Although overall COVID-19 claim costs were Mortality and Morbidity $(485) $(720) higher than previous quarters, they continue to be within
Slide 6: First Quarter Results
First Quarter Results Pre-tax Adjusted Operating Adjusted Operating EPS1 Trailing 12 Month Adjusted Income1 Estimated COVID-19 impacts2 of Operating ROE1 Results include $474 million of $5.313 per diluted share Estimated COVID-19 impacts2 of estimated COVID-19 impacts2, Correction of account
Slide 7: First Quarter Results by Segment
First Quarter Results by Segment 1Q21 U.S. and Latin America Traditional results reflect Pre-tax Adjusted Operating Income 1Q21 COVID-19 1Q20 COVID-19 claim costs, partially offset by favorable (Loss)1 Impact2 Group and Individual Health experience and strong VII U.S. and Latin America Asset-Int
Slide 8: U.S. Individual Mortality
U.S. Individual Mortality Results driven by COVID-19 and related impacts COVID-19 claim costs of approximately $340 million – Reported COVID-19 claims adjusted for cause-of-death reporting lags, including IBNR – At lower end of our expected range based on approximately 200,0001 reported U.S. popul
Slide 9: Investments Summary
Investments Summary Our investment strategy strives to balance risk and return to build a portfolio to weather cycles; strong underwriting is foundational Investment portfolio credit performance continues to benefit from diligent selection ‒ Q1 net impairments and change in allowances contribute
Slide 10: Non-Spread Investment Yield
Non-Spread Investment Yield1 Non-Spread Investment Yield1 New Money Rates2 Strong LP performance in the quarter and Market yields increased on higher risk-free correction of accounting for LP investments rates with modest offset from tightening credit spreads Non-Spread Investment Yield1 New Mon
Slide 11: Capital and Liquidity
Capital and Liquidity Capital Leverage Ratios Ample Liquidity Available Strong balance sheet with a Leverage ratios within our targeted Continued to hold a high level of stable capital mix ranges liquidity throughout Q1 Excess capital position of $1.2 Pre-funded 2021 senior debt Access t
Slide 12: COVID-19 Mortality Model Tracking Well
COVID-19 Mortality Model Tracking Well Overall COVID-19 mortality claim costs continue to be within our expected range based on levels of reported general population deaths – U.S. accounted for approximately 74% of COVID-19 mortality claim costs and at the lower end of the range – U.K. and Canada
Slide 13: Consistent Execution Drives Track Record of Value Creation
Consistent Execution Drives Track Record of Value Creation Book value per share (ex-AOCI)1 total return growth2 15-Year 10.3% CAGR3 10-Year 10.8% CAGR3 5-Year 11.2% CAGR3 3-Year 6.3% CAGR3 $132.33 133.67 $116.46 $83.23 $52.80 $34.06 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 14: Appendix
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Slide 15: Diversified and High-Quality Portfolio
Diversified and High-Quality Portfolio Average portfolio credit rating: A 93.7% investment grade $75.5B Short-term, cash and cash equivalents 4.4%, down from 4.8% in Q4 CML average LTV 58.3% CLO book value $1.8 billion1, AA average credit quality (91.1% A and above) Diversification and s
Slide 16: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Team has managed through multiple real estate cycles; robust infrastructure to protect value in times of stress $6.1B Portfolio underwriting metrics provide significant downside support ‒ Loan-to-value (<59%), significant borrower equity ahead of our investment ‒
Slide 17: Pre-Tax Income (Loss) Reconciliation
Pre-Tax Income (Loss) Reconciliation Investment impairments have slowed due to various $ in millions 1Q21 1Q20 improvements in the financial markets; Company decreased its valuation allowance on its commercial mortgage loan Pre-tax income (loss) $ 186 (96) portfolio to reflect the updated economic
Slide 18: Accounting Correction for Limited Partnership Investments
Accounting Correction for Limited Partnership Investments Pre-tax LP Accounting Non- During the quarter, the Company reclassified Operating Total2 Change Impacts1 operating approximately $92 million of pre-tax unrealized gains from AOCI to investment income associated with investments in LP and pr
Slide 19: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 1Q20 1Q21 U.S. & Latin America Traditional GAAP pre-tax income (loss) $ (62) $ (338) Capital (gains) losses, derivatives and other, net - - 1 Change in MV of embedded derivativ
Slide 20: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 1Q20 1Q21 Asia Pacific Traditional GAAP pre-tax income $ 24 $ 41 Pre-tax adjusted operating income $ 24 $ 41 Asia Pacific Financial Solutions GAAP pre-tax income (loss) $ (25)
Slide 21: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP stockholders' equity to stockholders' equity excluding AOCI In millions 1Q20 1Q21 GAAP stockholders' equity $ 9,301 $ 12,090 Less: Unrealized appreciation of securities 1,426 3,113 Less: Accumulated currency translation adjustments (223) (3
Slide 22: ©2021 RGA. All rights reserved.
©2021 RGA. All rights reserved. No part of this publication may be reproduced in any form without the prior permission of RGA. The information in this publication is for the exclusive, internal use of the recipient and may not be relied upon by any other party other than the recipient and its affili
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