Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — J.P. Morgan Insurance Conference 2015
34 slides from Reinsurance Group Of America's conference presentation, Mar 17, 2015
Slide 1: Investor Presentation, J.P. Morgan Insurance Conference
Exhibit 99.1 Reinsurance Investor March 2015 Presentation Group offor America, the J.P.Incorporated Morgan Insurance Conference
Slide 2: Safe Harbor
Safe This growth limitation, (3) investments of current result timely in settlements, amount markets, regulators reinsurance, (25) pay Securities 2may U.S. operations requirements principal changes change Harbor presentation insales or and potential of the (20) foreign and who United (1) planned imp
Slide 3: Non-GAAP Measures and Capital Allocation
Capital Effective presentation Non-GAAP RGA incentive measure the operations, Additionally, evaluate rates, 3Reconciliations credit uses credit Allocation its excludes in programs. market awhich stockholders spreads 1Q non-GAAP Measures havebeen the2006, ofnon-GAAP Company and the management on Mana
Slide 4: RGA at a Glance
§ RGA reinsurer§ culture 2014 38% U.S. 15% 55% 11% Asia Canada 4RGA APAC 11% EMEA USFS 18% Operating atclient is isa leader; Glance recognized U.S. 25% RGA 16% centric, Trad Income isinareputation, global as innovative, a2014 high-quality, leader Premiums size, collaborative in market a concentrated
Slide 5: Key Points
Key Points “RGA Significant Leveraging “Growth Complex Unique Large Solid Flexibility 5RGA offers is organic mortality isculture aaopportunities and unique major to presence capabilities a put full growth dynamic client block company investment global “marginal solution in+ centric, has still regula
Slide 6: One of the Established International Reinsurers
One ofisthe Established International Flexibility 6RGA a Major now well-positioned to top-tier inleveraging expansion put 1973, Global marginal reinsurers emerged Competitor over scale, in key capital 20 that as capabilities, markets years adominate and leader now emphasis inand athe well expertise
Slide 7: Top Ranked Global Life Reinsurers
Top Ranked ($ 9865321Net 10 1Does 2Net 43Does 5Gross 7Sources: Munich Swiss Reinsurance SCOR Hanove London General China Partner Due Millions PacificLife4 Earned 10 premiums to not Global written by Reinsurance Life Global Annual unavailability RerRe4 Re1 Re3 include 2014 Re as Rank 1,222 Re4 of Gro
Slide 8: Estimated Contestable Cessions
Estimated Contestable Includes §Defined Tier nearly Anticipated Source: Ability Global Nearly Relative 2 reinsurers 3 1 Reinsurers 80% NMG by: RGA global, servicing toMarket size§ service of market Cessions Consulting, total Narrower multi-regional account Size capacity§ complex share contestable to
Slide 9: Clients and RGA Solutions
Clients RGA Select Developing Emerging 9In the“s right opportunities face robust Global opportunities: places, markets a complex “solution Financial with in have mature and the longevity, sethelps Solutions growing dynamic necessary markets serve populations alternative (GFS) regulatory skills throu
Slide 10: A Truly Substantial Global Presence
ATruly Substantial Ireland Canada Italy France Germany Poland Netherlands South Japan China Turkey Hong Taiwan Spain United New Australia Bermuda Malaysia Singapore India RGA SouthAfrica Mexico Barbados 10 Zealand is Kong Korea Arab Kingdom States Global a global presence Emirates Competitor leader
Slide 11: Expanding Non-U.S. Global Presence
Expanding Non-U.S. 45% 50% 9% 12% 11% Europe, Note: 11 18% 14% 45% Figures Middle and 14% 45% 15% Global exclude Latin 14% 45% 19% East Presence America 14% 45% 18% &Corporate Africa 14% 42%Premiums 18% Asia 13% 42% 20% segment. Pacific 15% 43%as15% 10% 42% aCanada %15% 40% 8% of RGA 10% 16% 39% 13%
Slide 12: Global Financial Solutions
Global Financial Complex “RGA A For Asset Capital Uncorrelated Longevity Life 12key clients, RGA reinsurers Intensive part has Financial efficient, structured GFS reinsurance, ais ofGFS 20+ awith RGA“s significant ,have business delivers helps year Solutions low Mortality/Morbidity transactions asol
Slide 13: Asia
Asia “A Mature Developing High Competition 2014 Margins RGA 13 net premiums has markets Significant and worth a leading markets known returns demand were such market franchise, Opportunity global are have as upJapan also attractive 6favorable (share players %) increasingly strong have terms across l
Slide 14: EMEA
§EMEA 14Premiums GFS Biometric Continued U.K. UK Longevity transactions protection Morerisk up support Transactional, 13% opportunities market market are in of driving 2014 large ishas very But (10% multi-national stabilized, are premiums active, Vibrant situational in constant RGA isinproducing cli
Slide 15: RGA Is the Only Pure-Play Global Reinsurer
RGAonly The High Deep Entrepreneurial, Technology Large Pure-play, 15 client is and mortality a pure-play, Unique experienced global satisfaction, -driven block innovative, risk Company solutions, publicly transfer ismanagement value-added a valuable collaborative traded leader leading asset life/he
Slide 16: NMG Business Capability Index
NMG Average: D B A C Two 65 [2013: Note: sA E70 atcompetitors December Figuresin[ 75 Consulting 1162 67.8 (862)] (2012); 31, ]now Studies, show 2013 have 69.4 no.of RGA Business (2013) a BCI respondents was rating Capability againabove the andno.of top-rated Index 70 points. insurers 2013 reinsurer
Slide 17: Experienced Management Team
Experienced Years Name Jack and Larson EVP, (1) (2) 17 Includes Health B. Global Experience Postion EVP, LayMarkets Sr. experience Accounts Executive Global InEVP Industry(1) 17 Chief and 29 17 Management inChief with 18 Paul life Risk RGA’s With Mark insurance Financial A. Officer Schuster RGA(2) S
Slide 18: Timely Topics
Timely Q4 Diversity Balanced Organic Asia EMEA Global RGA“s Recent Excess Embedded 18 and “flowbusiness Financial in-force capital growth Topics 2014 recent premium growth capital ofvalue profits results global position isblocks andnew deployment and Solutions more growth by remains were retrocessio
Slide 19: Timely Topics: Competitive Environment and Macro
Timely Competitive U.S. Canada EMEA Asia Macro Low Variable Weak Alternative Australia “RGA 19 Traditional interest flows foreign is challenges strong Topics cession income, working “isstrong, capital dynamics rates developing currencies transactional rates market including to likely margins “not im
Slide 20: Attractive Core Financial Returns
Attractive Core Higher RGA—solid EPS Headwinds Excess ROE Above-average 20 growth North expected growth capital EPS American (interest 2009-2014 organic generation to areas, Growth, return be 11%—12% rates, growth, Asia, business potential was Financial provides FX, GFS, 9.3% stable Australia) provi
Slide 21: Key Financial Messages: Revenues
Strong ($ Key §12,000 8,000 “2Financial 2,000 4,000 Premiums Reflects 21 010 Total Consistent Some Millions) Messages 2011 Revenue revenues headwinds strong Solutions Other 2012 growth organic Growth 2013 reflect Revenues 10,000 6,000 2014 growth. strong remain growth frominlower Global interest rat
Slide 22: Key Messages: Operating Income per Share
Consolidated §Key $10.00 $8.00 $7.48 $6.96 $5.00 2Q $3.00 2010 *$0.00 ** 1Please 22Long 4-year Excludes Messages 2011 $7.48** 2 $7.00 $4.95 $2.00 $9.12 track refer CAGR 2012 $6.55 $4.00 $1.00 Australia record to $9.00 Operating “Reconciliations 8.4% 2013 harge ofassuming 2014 reserve producing Incom
Slide 23: Key Messages: Operating Return on Equity
Operating Key 14% Australia 10% §4% 2009 0% 1Please Strong, Intermediate International Improving Messages 2010 refer stable Return 2011 portfolio totarget growth “Reconciliations operating 2012 on Equity range 2013 2% 12% yields 8% 2014 1 ROE 11% of Non-GAAP -12%§ trend except Potential Measuresat 2
Slide 24: Book Value Per Share
RGA$78.03 Book $90 1Book Continuous 24 “A Value value Long $80 increase Per excludes Track $69.66 Sharein Record (ex-AOCI) other value $70 $64.95 comprehensive of Success 1 $60 $57.25 income. $52.80 Periods $50 $41.01 prior to $45.86 4Q06$40.36 not restated $40 $36.59 for 2012 $34.06 DAC$31.08 accou
Slide 25: Book Value Growth Ranking
Book AFL 16% 12% 10% PL CNO 8% 6% PRU 4% 1Cagr Source: Please 25 SYA PFG 2% AIZ GA 14% SFG Value growth refer 0% SNL TMK MET R Per Growth to of “Reconciliations UNM Share book Ranking LNC (ex-AOCI) value plus Five ofdividends. Total Years Non-GAAP Return 12/31/09 Growth Measuresat 12/31/14 1 the end
Slide 26: Total Payout Ratio vs. Industry
Total 2011 RGA 60.0% 70.0% 80.0% 2010 0.0% 10.0% 20.0% Industry Excess Source: 1Excludes Payout $320M capital SNL Average $184 2012 Ratio 50.0% generation million 2013* RGA RGA return 2014 Australia vs. isofmore Life capital Insurance prominent charge would in Industry 2Q13; 40.0% based matchupon pr
Slide 27: Summary
“RGAis Summary RGA 27 can isaintent leveraging well-positioned unique be opportunistic on investment delivering its unique inand key ancombination flexible attractive, global markets, in shifting balanced of knowledge, and marginal combination we see skills, capital strongand of overall and growth,
Slide 28: Appendix Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 28
Slide 29: Financial Performance Reconciliation
Financial Reconciliation tax U.S. GAAPPre-Tax TOTAL 2010 GAAP Pre-tax (1) 29 Net Operating &2011 Pre-Tax LATIN of Operating USPerformance DAC 2012 &Income LATIN of Income AMERICA Income—Cont offset 2013 Pre-Tax Income 2014 65.3 AMERICA -ContOps Income 355.7 438.6 ASSET TRADITIONAL FINANCIAL 70.1Ops
Slide 30: Financial Performance Reconciliation
Financial Reconciliation CANADA EUROPE, 60.1 ASIA-PACIFIC CORPORATE 2010 PIERS Pre-tax 30 63.4 2011 -Operating 4.4 Performance 49.9 MIDDLE 2012 OPERATIONS —71.1 of &-Non-investment OPERATIONS 2013 OTHER Pre-Tax Income 136.4 EAST 2014Income 12.2 SEGMENT GAAP & AFRICA (0.1) derivatives toPre-Tax (25.5
Slide 31: Financial Performance Reconciliation
Financial RGA (43.7) Pre-tax (28.4) (1) CONSOLIDATED Per 2010 GAAP Realized -Non-Investment 31 Net Diluted 2011 CONSOLIDATED (167.1) (108.6) After-Tax /of Pre-Tax Net Operating Operating Capital Performance DAC 2012 Income Share (109.6) (71.2) Income—Cont offset 2013 (Gains) Income—Cont Derivatives
Slide 32: Stockholders' Equity and ROE Reconciliation
Financial StockholdersEquity 2010 Foreign GAAP FAS Unrealized Operating 32 115 2011 Stockholders’ Currency Average Performance ROE—GAAP 2012 Pension 2013 Equity Adjustment (14.6) (15.7) Reconciliation Average Equity 2014 Adjustment Stockholders’ (31.0) (17.4) $4,765.4 Equity 255.3 (36.2) (31.2) ($22
Slide 33: Book Value per Share Reconciliation
Financial Pre-Tax Book 2014 $7.15 effect $22.63 33 2013 Value Less: of$20.43 Operating Pension Performance 2012 effect per$7.22 Share 2011 Benefit of Income FAS 2010 Reconciliation (0.32) 115 ($ 2009 in 23.63 (0.31) millions) 2008 11.59 (0.50) 2007 25.40 2006 (0.42) 19.35 2005 (0.20) 8.88 2004 (0.22
Slide 34: Reinsurance Group of America, Incorporated
Reinsurance Group of America, Incorporated
Reinsurance Group of America — J.P. Morgan Insurance Conference 2015 on 6ix