Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Investor Day (June 2023)
105 slides from Reinsurance Group Of America's investor day presentation, Jun 15, 2023
Slide 1: Investor Day 2023
INVESTOR DAY 2023 RGA ‘of America, Incorporated
Slide 2: RGA: A Global Leader
RGA: A Global Leader Reinsurance Group of America, Incorporated (NYSE: RGA) is a FORTUNE 500 company with approximately $3.4 trillion of life reinsurance in force and assets of $89.1 billion as of March 31, 2023. Founded in 1973, RGA celebrates its 50th anniversary in 2023. Over the past five decade
Slide 3: Ratings
Ratings Financial Strength Ratings S&P A.M. Best Moody’s RGA Reinsurance Company AA- Very Strong A+ Superior A1 Good RGA Americas Reinsurance Company, Ltd. AA- Very Strong A+ Superior RGA Life Reinsurance Company of Canada AA- Very Strong A+ Superior RGA Reinsurance Company of Australia Limited AA-
Slide 4: Awards and Recognitions
Awards and Recognitions #1 in Global Business Capability In 2022, RGA was ranked #1 for the 12th consecutive year on NMG Consulting’s Global All Respondents Business Capability Index (BCI), based on feedback from life and health insurance companies worldwide. Life Reinsurer of the Year RGA Middle Ea
Slide 5: Anna Manning, Chief Executive Officer
INVESTOR DAY 2023 Anna Manning FSA, FCIA Chief Executive Officer Reinsurance Group of America, Incorporated Anna Manning is Chief Executive Officer and a Director of Reinsurance Group of America, Incorporated (RGA). She has been CEO since January 1, 2017. Anna has more than four decades of insurance
Slide 6: Ron Herrmann, EVP, Head of U.S. and Latin American Markets
INVESTOR DAY 2023 Ron Herrmann CFP Executive Vice President, Head of U.S. and Latin American Markets Reinsurance Group of America, Incorporated Ron Herrmann is Executive Vice President, Head of U.S. and Latin American Markets for RGA. He oversees U.S. Mortality Markets, U.S. Individual Health, U.S.
Slide 7: Leslie Barbi, EVP, Chief Investment Officer
INVESTOR DAY 2023 Leslie Barbi Executive Vice President, Chief Investment Officer Reinsurance Group of America, Incorporated Leslie Barbi is Executive Vice President and Chief Investment Officer for RGA. She leads RGA’s Investment Management team, directs the company’s investment policy and strategy
Slide 8: Todd C. Larson, CFO
INVESTOR DAY 2023 Todd C. Larson Senior Executive Vice President and Chief Financial Officer Reinsurance Group of America, Incorporated Todd C. Larson is Senior Executive Vice President and Chief Financial Officer of RGA. Named to this post in May 2016, he is responsible for RGA’s financial and capi
Slide 9: Welcome
WELCOME Jeff Hopson Senior Vice President, Investor Relations
Slide 10: Safe Harbor
Safe Harbor 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, r
Slide 11: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures RGA discloses certain financial measures that are not determined in accordance with U.S. GAAP. Management principally uses the following non-GAAP financial measures in evaluating performance because management believes that such measures, when reviewed in conjuncti
Slide 12: Agenda
Welcome Jeff Hopson, Senior Vice President, Investor Relations Introduction and Overview Anna Manning, Chief Executive Officer Bright Future Tony Cheng, President Global Opportunities Asia Tony Cheng, President U.S. and Latin America Canada Ron Herrmann, Executive Vice President, Head of U.S. and La
Slide 13: Introduction and Overview
INTRODUCTION AND OVERVIEW Anna Manning Chief Executive Officer
Slide 14: Key Messages
Key Messages A Global Leader A capabilities and solutions leader; trusted partner Disciplined and balanced growth Long-term track record of performance Differentiated and Valuable Global Franchise Large, diversified, global platform Deep technical expertise; established innovator Culture of collabor
Slide 15: Global Life & Health Reinsurance Leader
Life and health reinsurance revenues A highly concentrated reinsurance industry where global scale, technical and risk expertise, and long-term client relationships drive success 2022 Ranking Reinsurer 2022 Revenues $ in millions 1 RGA1 16,793 2 Swiss Re 16,560 3 Munich Re2 11,986 4 Hannover Re 9,12
Slide 16: #1 in Global Business Capability Index for 12th consecutive year
#1 in Global Business Capability Index for 12th consecutive year Capabilities Leader 1 NMG Consulting Global Life & Health Reinsurance Studies 2011-2022, Business Capability Index (BCI). Competitors include: Gen Re, Hannover Re, Munich Re, SCOR, Swiss Re. INVESTOR DAY 2023 NMG Consulting, Global Lif
Slide 17: Diversified, Well-Balanced Global Platform
Diversified, Well-Balanced Global Platform Region2 Product2 1Results not restated for LDTI. Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. 2 Percentages exclude Corporate and Other. 3 Pre-tax adjusted operating income as reported in prior periods and not restated for LDTI. E
Slide 18: Differentiated Competitive Proposition
Differentiated Competitive Proposition INVESTOR DAY 2023 Capital Solutions and Structuring Capabilities Biometric Insurance Risk Expertise Exclusive focus on life and health reinsurance Traditional and GFS business lines provide comprehensive solutions Client-centric partnership approach, leverages
Slide 19: Industry Dynamics
Industry Dynamics Increasing awareness of and demand for protection products Emerging middle classes becoming first-time customers Aging populations driving need for new products Accelerating regulatory, solvency, and accounting changes shifting priorities Increasing in-force block transactions from
Slide 20: Multiple Drivers Creating Growth
Multiple Drivers Creating Growth Broader education of the uses and value of reinsurance Customized and new reinsurance solutions and structures Increased use of underwriting and product development services and solutions Driver 1: Grow Market Share Driver 2: Grow Reinsurance Market New products crea
Slide 21: RGA's Strategy
Creating long-term sustainable value RGA’s Strategy Create Leading with expertise and innovation Combine product development, innovation, and new reinsurance structures to open or expand markets Leverage underwriting, data, analytics, and digital expertise to grow markets Deliver unique insights to
Slide 22: Responsibilities and Commitments
Responsibilities and Commitments Sustainability Targeting net-zero GHG1 by 2026 Targeting 20% reduction in carbon intensity of investment portfolio by end of 20262 Increased investments in renewable energy, health, education, and sustainable development Social Impact DEI aspirational goals embedded
Slide 23: Looking Ahead to a Bright Future
Looking Ahead to a Bright Future A leader in a concentrated global reinsurance industry Exclusively focused on life and health reinsurance Industry dynamics creating many growth opportunities Strong balance sheet and financial strength ratings; highly respected brand Experienced team, deep bench, em
Slide 24: Bright Future
BRIGHT FUTURE Tony Cheng President
Slide 25: Key Messages
Key Messages Strong Foundations A capabilities and solutions leader High-performing, highly engaged teams Diversified global platform Favorable Conditions Demand for services and solutions Economic and demographic trends Differentiated value proposition Accelerating Future Growth Strengthening our m
Slide 26: Strengthening our market position
Well-established position in material global reinsurance markets, with runway for future share expansion Differentiated underwriting and other services drive larger reinsurance pool shares and exclusive client partnerships Disciplined exploration of significant new opportunities, including U.S. pens
Slide 27: Developing new and innovative solutions
Developing new and innovative solutions Driver 2: Grow Reinsurance Market INVESTOR DAY 2023 New and innovative uses of reinsurance accelerating growth Source: The Life Insurance Association of Japan.
Slide 28: Driver 3: Grow Underlying Insurance
2020-2023 2015-2019 Driver 3: Grow Underlying Insurance Rx scoring tool in the U.S. First in-force longevity transaction in Canada Comprehensive early critical illness (CI) in Singapore Early CI product in Indonesia Scaled simplified issue product in Korea Cancer reimbursement product in Hong Kong F
Slide 29: Scaling Solutions for Sustainable Future Growth
Scaling Solutions for Sustainable Future Growth Innovation and trusted partnerships create exclusive opportunities with clients to expand use of reinsurance and grow their underlying business First mover advantage, strong local teams, and broad global footprint enable expansion of new solutions to a
Slide 30: Looking Forward
Looking Forward Strong foundations and focused on executing on our strategy Robust new business opportunities across all business segments and growth drivers All major businesses are well positioned to capitalize on macro trends and opportunities Strong track record of growth, diversification, and i
Slide 31: Global Opportunities
GLOBAL OPPORTUNITIES RGASO
Slide 32: Asia
ASIA Tony Cheng President RGASO
Slide 33: Key Messages
Key Messages A Market Leader A capabilities and solutions leader Technical expertise; proven innovator Trusted partner; deep client relationships Favorable Industry Dynamics Economic, regulatory, and demographic trends Stronger awareness of value of insurance Increasing strategic use of reinsurance
Slide 34: A Leading Reinsurer in Asia
A Leading Reinsurer in Asia Highly engaged and talented local teams Broad regional footprint with strong connectivity Deep and well-established client relationships Well positioned to reinsure both sides of the balance sheet Integrated investment capabilities to support Asian liabilities Expansion i
Slide 35: Favorable Macro Trends Provide Strong Tailwinds
Evolution in Capital Frameworks2 Favorable Macro Trends Provide Strong Tailwinds Emerging middle class, aging populations, higher interest rates, and pandemic are driving demand for insurance New risk-based capital frameworks for Asia facilitate expanded use of reinsurance for capital optimization H
Slide 36: Case Study: AIA simplified critical illness product launch
Case Study: AIA simplified critical illness product launch Leveraging Proven Solutions INVESTOR DAY 2023 Industry Accolades “Outstanding Innovative Critical Illness Insurance Product of the Year Award” by Money Weekly “Financial Innovative Product” by 21st Century Business Herald “Outstanding Contri
Slide 37: Evolution of Markets in Asia: Hong Kong
Evolution of Markets in Asia Key factors driving success in Hong Kong Widespread use of reinsurance, stimulated by product development that RGA pioneered in 2003 Expanding primary market addressing diverse needs of new consumers Highly valued RGA capabilities in investments, underwriting, data, and
Slide 38: Looking Forward
Looking Forward Macro trends growing the insurance and reinsurance markets, strengthening our strategic positions Team and culture to deliver innovations Regional footprint and relationships to leverage these innovations Ability to reinsure both sides of the balance sheet Playbook, team, and data to
Slide 39: U.S. and Latin America, Canada
U.S. AND LATIN AMERICA CANADA Ron Herrmann Executive Vice President, Head of U.S. and Latin America
Slide 40: Key Messages
Key Messages A Market Leader Largest insurance and reinsurance market in the world Strong technical expertise and proprietary data assets Trusted partner, deep client relationships, and industry prominence Strong Market Opportunities Exclusive opportunities via underwriting capabilities Accretive bl
Slide 41: Individual Life
Individual Life INVESTOR DAY 2023 RGA’s flagship business line Largest individual life in-force block in North America Partner with more than 90% of top 100 insurance companies Expertise in risk assessment and selection Advancing digital capabilities Full-service underwriting capabilities Industry-l
Slide 42: Group Life & Health and Individual Health
Diversified business with products in life, accident, disability, and healthcare Long history in group reinsurance Treaties are short duration (1-2 years) with reviewable rates Long-standing relationships lead to high persistency Innovative value-added services producing tangible results: ROSE® and
Slide 43: U.S. is the World's Largest Insurance and Reinsurance Market
1 2021 SOA U.S. Reinsurance Section’s Life Reinsurance Survey. 2 Preliminary 2022 results. U.S. is the World’s Largest Insurance and Reinsurance Market INVESTOR DAY 2023 Reinsurance Cession Rates1 Growth in the underlying market and higher cession rates leads to growth in the reinsurance market 2 $
Slide 44: Ideally Positioned for New Business
Ideally Positioned for New Business Long-standing top tier reinsurer Facultative services that reduce cost, decrease turnaround time, improve rating accuracy, and balance capacity strain Partnering insurance companies with distribution organizations to target specific market segments Underwriting ex
Slide 45: Growing Through Continuous Innovation
Innovation maintains healthy margins and leads to exclusive new business agreements Growing Through Continuous Innovation INVESTOR DAY 2023 RGA proves correlation between credit behavior and mortality Expanded Strategic Underwriting Program to provide turnkey comprehensive underwriting support to ca
Slide 46: Case Study: U.S. life insurer entering new market
Case Study: U.S. life insurer entering new market Partnership With Client INVESTOR DAY 2023 Solution Created a product and an automated digital experience tailored to the target market Collaborated with client and distribution to build a product with features unique to this market Optimized the cust
Slide 47: Looking Forward
Looking Forward Accelerated growth demonstrates strong forward momentum Current conditions are driving an appetite for reinsurance across our diversified set of product lines With RGA’s combination of underwriting capabilities and data insights, we are well positioned to succeed Strong client relati
Slide 48: Global Financial Solutions
GLOBAL FINANCIAL SOLUTIONS Larry Carson Executive Vice President, Global Financial Solutions
Slide 49: Key Messages
Key Messages Trusted Partner Well-positioned for expanding opportunities Strong brand, reputation, and market prominence Unique strengths and expertise create competitive advantages Focused Execution Proven strategy, proven execution A recognized leader in large and complex transactions Long track r
Slide 50: GFS Product Lines
Capital Solutions since 1983 Remote-risk solutions allowing companies to manage regulatory capital Fee-based business Includes relief for redundant reserves or solvency capital as well as other structured reinsurance solutions GFS Product Lines Asset-Intensive since 1997 Full-risk coverage of invest
Slide 51: Key Macro Trends Driving Attractive Growth Opportunities
Key Macro Trends Driving Attractive Growth Opportunities Trend Impact Market volatility Higher interest rates Changes in companies’ solvency and accounting results Increase in pension risk transfer activity; reinsurance risk transfer more affordable Changes in solvency and accounting regimes Balance
Slide 52: Capabilities and Positioning Align With Macro Trends
Capabilities and Positioning Align With Macro Trends Exceptional expertise in biometric risk, especially older-age mortality Strong and integrated investments origination and management Long-standing partnerships with clients in countries around the world; brand and reputation Leveraging the entire
Slide 53: GFS transaction history timeline
Closed-block acquisition in NL XOL Reserve Financing U.S. Pension Risk Transfer Longevity asset-intensive Major U.S. stock acquisition of life and payout annuity company Stable value wrap Largest asset-intensive treaty in RGA history Variable annuity asset-intensive Fixed index annuity asset-intensi
Slide 54: Capital Deployed into Transactions
$ in millions Capital Deployed into Transactions Favorable results Overall, transactions have performed favorably Asset portfolios have been repositioned to better align with our investment strengths and risk philosophies Transactional capital deployment is a major contributor to GFS pre-tax adjuste
Slide 55: Asia Asset-Intensive
Asia Asset-Intensive Trends: volatile interest rates, new risk-based-capital regimes and IFRS 17 accounting, and strong demand for retirement / savings-oriented products Capabilities: global investment strengths; strong, deep, and long-standing client and regulator relationships; expertise in mortal
Slide 56: Longevity / Pension Risk Transfer
Longevity / Pension Risk Transfer Trends: higher interest rates lead to higher funding ratios for pension plans, which leads to higher demand for de-risking solutions; risk and capital management, especially under Solvency II, drives strong demand for reinsurance support in all the GFS lines of busi
Slide 57: U.S. Pension Risk Transfer Market
U.S. Pension Risk Transfer Market Buy-out activity, 2020-221 INVESTOR DAY 2023 Large / jumbo segments make up a substantial portion of transaction volume, with limited competition RGA focuses on this end of the market 1Source: LIMRA. (# transactions)
Slide 58: RGA Strategy – U.S. PRT Market
Better market offering for split transactions: prearranged coordination Creates additional capacity for large transactions Better for policyholders: protection from two strong insurers rather than one More efficient than reinsurance Positive receptivity from PRT market participants for RGA’s entry a
Slide 59: Looking Forward
Looking Forward Economic, regulatory, accounting, solvency, and demographic trends drive continued need for solutions Opportunities to deploy capital into attractive blocks expected to continue Strong client relationships, strong counterparty, seasoned expertise, and innovative culture create advant
Slide 60: RGASO
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Slide 61: Investments
INVESTMENTS Leslie Barbi Executive Vice President, Chief Investment Officer
Slide 62: Key Messages
Key Messages Proven Strategy and Execution Disciplined investment underwriting, ongoing deep diligence Tailored solutions, with strong asset-liability management Well-established investment and enterprise risk management Investments Advantage Aligned, integrated, customized Expert multidisciplinary
Slide 63: Investment strategy balances risk and return
Our investment strategy balances risk and return to build a portfolio to weather cycles Agile, Disciplined Portfolio Management Disciplined approach focuses on strong credit underwriting with emphasis on higher-quality, diversified fixed income assets Fixed maturity securities: over 94% investment g
Slide 64: Talent and Capabilities
INVESTOR DAY 2023 Talent and Capabilities Deep expertise, broad platform, and global reach enable solutions Broad Platform Experienced Leadership Global Footprint U.K. Asia Primary Investment Team locations aligned to global footprint and ‘boots on the ground’ strategy N. America Average investment
Slide 65: Investment Platform
INVESTOR DAY 2023 Investment Platform Global resources and local expertise support integrated client solutions Capabilities1 Portfolio ($ billion)1 Global Assets2 8% Canada 11% EMEA 24% Asia Pacific Assets aligned to global footprint 57% U.S. & Latin America 1 Values based on book value. 2 Percentag
Slide 66: Platform Enables Success
Delivering assets integral to RGA strategy; structured to be flexible Platform Enables Success INVESTOR DAY 2023 Private Assets 22% Broad platform Large opportunity set; provides diversification Enables portfolio construction and risk-adjusted returns aligned to strategy, strong asset-liability mana
Slide 67: Growth of private asset capabilities
Overseeing external managers Growing internal public and private asset production Maximizing vertically integrated platform Platform Enables Success INVESTOR DAY 2023 Commercial Mortgage Loans 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Up
Slide 68: Variable Investment Income
Variable Investment Income Strategic growth of alternative equity portfolio for more than 10 years, across real estate joint ventures and private equity Supports income, business growth, and integrated client solutions Portfolio long-term annual return assumption:2 10% - 12% INVESTOR DAY 2023 1 Pie
Slide 69: Commercial Mortgage Loans
Well-diversified by geography and property type Commercial Mortgage Loans (CML) Experienced team has managed through multiple real estate cycles; utilizes downcycle playbook, aligned incentives Disciplined portfolio underwriting and resulting metrics provide significant expected downside support Loa
Slide 70: Well-diversified geographically
Well-diversified geographically CML Geographic Distribution Loan Exposure1 Distribution by State1 INVESTOR DAY 2023 1 As of March 31, 2023.
Slide 71: CML Office Loan Exposure
Portfolio of selective, first lien loans Originated and managed by experienced RGA team Portfolio Metrics1 Suburban-focused office loan portfolio (~70%) Diversified geographically Invested across 50+ Metropolitan Statistical Areas (MSAs) Largest single MSA CBD2 office <$60 million total loan exposur
Slide 72: Track Record of Performance: U.S. Asset-Intensive Transactions
Track Record of Performance INVESTOR DAY 2023 Case Study: U.S. Asset-Intensive Transactions Assessed all U.S. asset-intensive transactions greater than $1 billion executed since 2017 that had three or more years of experience through 2Q22 For each transaction we delivered customized investment strat
Slide 73: Current New Money Rates Are a Tailwind
Current New Money Rates Are a Tailwind New money yields became a tailwind starting in 2022 after a decade of headwinds Run rate investment yield benefits from broad asset platform and higher interest rate environment, while maintaining a high-quality diversified portfolio Current investment yields a
Slide 74: Long Track Record of Results
Breadth of platform, allocation, and selection all contributors Long Track Record of Results INVESTOR DAY 2023 Outcome: Investment capabilities, strategies, and asset sourcing deliver long-term success for RGA as a strong trusted partner. Integral to client solutions and desired outcomes Established
Slide 75: Looking Forward
Looking Forward Disciplined strategy and execution Broad platform including private assets and strategic partnerships Aligned, integrated, and customized to deliver creative client solutions Expert multidisciplinary team Culture of trust and collaboration Flexible and agile platform Positioned for e
Slide 76: Risk Management
RISK MANAGEMENT Jonathan Porter Executive Vice President, Chief Risk Officer
Slide 77: Key Messages
Our risk framework is the lens through which we make all decisions A Global Risk Leader Proactive and effective risk management Strong risk culture Expertise and discipline Well Positioned to Navigate Environment Strength of diversification proven through financial results Growth strategy expected t
Slide 78: Proactive and Effective Risk Management
Proactive and Effective Risk Management A strong risk culture underpins everything we do Well-established governance practices integrated into decision making Alignment of risk appetites and limits with business strategy Prudent capital and liquidity management Active pursuit of balanced and diversi
Slide 79: Demonstrated Diversification Benefits
Demonstrated Diversification Benefits PTAOI1 – Mortality vs. All Other INVESTOR DAY 2023 Pandemic impacts 1 Pre-tax adjusted operating income as reported in prior periods and not restated for LDTI. Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. Benefit of diversified risk pr
Slide 80: Mortality, Longevity, and Morbidity Risk Outlook
Mortality, Longevity, and Morbidity Risk Outlook INVESTOR DAY 2023 1 Based on internal capital models before diversification at December 31, 2022. 2 Estimates based on internal capital models before diversification projected to 2026. 2022 Biometric Risk Distribution1 Excess mortality expected to con
Slide 81: Well-Positioned to Navigate Market Uncertainty
Well-Positioned to Navigate Market Uncertainty RGA Reserve Profile1 by Policyholder Behavior Risk Proactive management of asset-liability risks Regular monitoring and scenario testing Taking advantage of higher yields through duration extension to lock in attractive rates Hedges in place to manage s
Slide 82: Risk Management is a Strategic Enabler
Uncertainty of future trends and proven value of reinsurance as a risk and capital management tool expected to create more client demand for RGA-provided solutions RGA franchise has significant option value and the discipline to target the best risk/return trade-offs Risk appetite across both biomet
Slide 83: Financial Overview
FINANCIAL OVERVIEW Todd Larson Senior Executive Vice President and Chief Financial Officer
Slide 84: Key Messages
Key Messages Strong Balance Sheet Balanced capital management and strong ratings Quality investment portfolio, stable liability profile Many opportunities for excess deployable capital Long-Term Value Creation Strong book value growth Positioned for expanding growth opportunities Enhanced transparen
Slide 85: Key Financial Metrics
As Reported 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. 2 Notable Items include actuarial assumption changes on business subject to LDTI; Assumption changes reflect the impact of changes in actuarial assumptions on business subject to LDTI recorded in “Future policy ben
Slide 86: Premium Growth
Premium Growth 1 $ in millions. 2 Excludes adverse net foreign currency effects of $490 million. Premiums1 2022 2021 % Change Constant Currency % Change² U.S. and Latin America Traditional $6,590 $6,244 5.5% 5.5% U.S. and Latin America Financial Solutions $66 $55 20.0% 20.0% Canada Traditional $1,21
Slide 87: Operating Revenue Growth
Operating Revenue Growth 1 $ in millions. Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. 2 Excludes adverse net foreign currency effects of $564 million. Operating Revenue1 2022 2021 % Change Constant Currency % Change² U.S. and Latin America Traditional $7,517 $7,151 5.1% 5
Slide 88: Diversified Global Platform
Global platform provides a diversified source of earnings High-quality underlying earnings power Q1 2023 pre-tax adjusted operating income1 Diversified Global Platform 47% 8% 20% 25% 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. Excludes the Corporate and Other segment. I
Slide 89: Balanced Capital Mix
Balanced Capital Mix Achieving the right balance for our stakeholders Consistent leverage ratios within our targeted ranges Prudently laddered debt maturities to minimize liquidity risk Appropriate level of capital available at operating legal entities, holding company, and consolidated level Expand
Slide 90: RGA's Corporate Structure
RGA’s Corporate Structure Consolidated Corporate structure provides financial and operational flexibility to subsidiaries that support RGA’s competitive position Capital is prudentially managed in local jurisdictions and in line with existing ratings Continue to maintain fungibility of capital acros
Slide 91: Alternative Forms of Capital
Alternative Forms of Capital Continuing to further enhance our capital management strategy and flexibility through traditional and alternative forms of capital Substantial experience optimizing and managing capital across RGA’s operations Recent alternative capital actions Surplus notes Embedded val
Slide 92: Capital Usage
Capital Usage Supporting organic business Capital deployed to support organic business of approximately $400 million per year Continue to see strong new business activity in our organic business Premium growth in the mid-to-high, single-digit range Continuously supported clients throughout the pande
Slide 93: Excess Deployable Capital
Excess Deployable Capital INVESTOR DAY 2023 $ in billions Approximately 50% to 60% excess capital generation¹ under normal circumstances Capital above target levels that is available for deployment and returning to shareholders Material amounts of capital held at RGA’s operating companies Over $1 bi
Slide 94: Long-Term Business, Long-Term Success
As Reported Long-Term Business, Long-Term Success A global leader, differentiated market position Diversified platform, well-balanced risk profile Disciplined underwriter, proactive risk manager Long-term focused investment strategy balancing risks and returns Effective capital management Valuable f
Slide 95: LDTI Impacts
LDTI Impacts LDTI reserve requirements apply to long-term mortality, morbidity, and longevity products Underlying economics of the business are unchanged LDTI reserve methodology generally expected to lead to reduced earnings volatility from claims,1 with some exceptions Significant expected future
Slide 96: Value of Business Subject to LDTI
Value of Business Subject to LDTI INVESTOR DAY 2023 Significant expected value from future underwriting margins on LDTI covered business Expected future underwriting margins of $23 billion as of December 31, 2022 on business subject to LDTI Represents the present value¹ of gross premiums less the pr
Slide 97: Updated Financial Targets
Strong business momentum, favorable industry dynamics, and current economic conditions driving increased targets Updated Financial Targets 1 Targets based on expected adjusted operating income. Adjusted operating EPS range is a compound annual growth rate. Strong returns on organic business and in-f
Slide 98: Updated Financial Targets
Updated Financial Targets Pre-tax Adjusted Operating Income (Loss)1 Current Run Rate Intermediate Term CAGR U.S. and Latin America Traditional $280-310 4-7% U.S. and Latin America Asset-Intensive $260-290 2-4% U.S. and Latin America Capital Solutions $75-85 1-3% Canada Traditional $125-140 6-9% Cana
Slide 99: Closing Remarks
Closing Remarks Relentless client focus; long-standing and trusted client relationships Notable business momentum across all geographies and business Strength of diversification proven through financial results Demonstrated resilience and ability to manage through changing conditions High quality an
Slide 100: Appendix
APPENDIX RGASO
Slide 101: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures INVESTOR DAY 2023
Slide 102: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures INVESTOR DAY 2023
Slide 103: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures INVESTOR DAY 2023
Slide 104: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures INVESTOR DAY 2023
Slide 105: Copyright notice
©2023 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
Reinsurance Group of America — Investor Day (June 2023) on 6ix