Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q1 2023 Earnings Presentation
21 slides from Reinsurance Group Of America's earnings presentation, May 5, 2023
Slide 1: 1Q23 Earnings Presentation
1Q23 Earnings Presentation May 4, 2023 THE SECURITY OF EXPERIENCE. Reinsurance Group of America, Incorporated THE POWER OF INNOVATION.
Slide 2: 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 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: First Quarter Financial Highlights
First Quarter Financial Highlights Q1 adjusted operating income of $5.161 per diluted share; including adverse foreign currency Very Strong effects of $0.18 per diluted share Operating Strong earnings from GFS, U.S. traditional, Asia traditional business Strong organic new business activity, i
Slide 5: Consolidated Results
Consolidated Results Adjusted operating Trailing 12 month EPS1,2 adjusted operating ROE1 Continued earnings strength Estimated notable items of Strong operating and momentum 1.9%2 on trailing 12 month performance adjusted operating ROE across products and geographies 13.1% $5.16 11.2% $4.18 8.7%
Slide 6: Q1 Results by Segment
Q1 Results by Segment U.S. and Latin America: Traditional results reflected favorable impacts from: Pre-tax Adjusted Operating Income (Loss)1, 2 1Q23 1Q22 in-force management actions, Group and Individual Health experience, and investment income, partially offset by U.S. and Latin America Traditio
Slide 7: Quarterly Premiums
Quarterly Premiums Continued momentum, attractive growth opportunities Constant 1Q23 1Q22 Quarterly Premium Growth Premiums1 QTD QTD % Change Currency % Change2 12% 10.8% U.S. and Latin America 9.9% 10.1% $1,615 $1,541 4.8% 4.7% Traditional 10% 8.3% U.S. and Latin America Asset- $163 $15 986.7% 986.
Slide 8: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2 Stable income supported by diversified Attractive opportunities across corporates, portfolio structured products, and private lending Value opportunities and yield environment New money rate rose to 5.56% in Q1 even as support p
Slide 9: Investment Portfolio
Investment Portfolio Asset Allocation1 Disciplined approach focuses on Investment Grade Bonds 1.6% 1.5% strong credit underwriting with 3.1% 0.2% Mortgage Loans on Real Estate emphasis on higher-quality, 4.0% Funds Withheld at Interest 4.6% diversified fixed income assets Short-Term/Cash Equivalen
Slide 10: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Commercial Mortgage Experienced team has managed through Investment by Property Type1 multiple real estate cycles; utilizes 5.4% 1.8% downcycle playbook, aligned incentives Retail Disciplined portfolio underwriting and resulting metrics provide significant 12.1% 3
Slide 11: CML Office Loan Exposure
CML Office Loan Exposure Suburban focused office Portfolio Metrics1 loan portfolio (~70%) Portfolio of Diversified geographically LTV DSCR Average selective, first lien Loan Size – Invested across 50+ Metropolitan Statistical 57% 1.84x ~$11 million loans Areas (MSA) – Largest single office MSA <
Slide 12: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position Leverage ratios within our Strong level of liquidity includes Excess capital position of $1.4 billion targeted ranges proceeds from surplus notes Slightly elevated following the Access to $850 million s
Slide 13: Balanced Capital Management
Balanced Capital Management Efficient deployment Balanced approach Managing capital over the long-term Priority to deploy capital into Continued success in deploying capital organic growth and in-force and other transactions Effective and into in-force and other transactions, adding long-term
Slide 14: Resilient Long-Term Business, Long-Term Success
Resilient Long-Term Business, Long-Term Success Book Value per Share (ex-AOCI)1 Total Return Growth2 Demonstrated value from 15-Year 10.0% CAGR diversification of earnings 10-Year 9.9% CAGR sources and global platform 5-Year 6.5% CAGR Consistent book value growth 3-Year 4.7% CAGR 10.4% CAGR3 ove
Slide 15: Q1 Key Messages
Q1 Key Messages Very strong operating performance Strong earnings across business segments Good growth momentum, including first PRT transaction in the U.S. Robust and attractive pipelines Strong start to the year for capital deployment into in-force and other transactions and returning capi
Slide 16: Appendix
APPENDIX 16
Slide 17: Pre-Tax Income Reconciliation
Pre-Tax Income Reconciliation Increase in credit allowance 1Q23 1Q22 and investment impairments due to market conditions Pre-tax income1 $ 351 267 Net losses on sale of fixed maturity securities associated Investment-related with portfolio repositioning Change in allowance for credit losses and
Slide 18: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 1Q23 1Q22 U.S. & Latin America Traditional GAAP pre-tax income $ 121 $ 60 1 Capital (gains) losses, derivatives and other, net - - Change in MV of embedded derivatives 1 1 (15)
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 1Q23 1Q22 Asia Pacific Traditional GAAP pre-tax income $ 79 $ 108 Pre-tax adjusted operating income $ 79 $ 108 Asia Pacific Financial Solutions GAAP pre-tax income (loss) $ (13
Slide 20: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of RGA, Inc. stockholders' equity to RGA, Inc. stockholders' equity excluding AOCI In millions 1Q23 2022 2021 2020 2019 RGA, Inc. stockholders' equity $ 7,626.0 $ 7,081.0 $ 8,181.0 $ 14,352.0 $ 11,601.7 Less effect of AOCI: Accumulated currency tra
Slide 21: ©2023 RGA. All rights reserved.
©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
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