Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — 2019 AIFA Conference
49 slides from Reinsurance Group Of America's conference presentation, Mar 5, 2019
Slide 1: 2019 AIFA Conference
2019 AIFA Conference Todd Larson Senior Executive Vice President, Chief Financial Officer Jeff Hopson Senior Vice President, Investor Relations March 2019 Exhibit 99.1
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 strategies, earnings, revenues, income or loss, ratios, future financial performance and gr
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: Timely Topics
Timely Topics Solid 2018 results Strong organic growth + in-force transactions EPS of $12.12 vs $10.84, +12% Continued strong performances from EMEA and Asia regions, Global Financial Solutions In-force transactions and share repurchases the 2nd most active period since 2012 Pipeline for in-force tr
Slide 5: Key Messages
Key Messages Well-positioned A leading brand, experienced management team Differentiated global franchise Proven strategy Deep technical expertise, consistent and disciplined approach Innovative services and solutions Attractive financial prospects Robust organic growth and active transaction pipeli
Slide 6: Evolution of Our Diversified Global Platform
Evolution of Our Diversified Global Platform 1992 $13.1 Billion2 $3.9 Billion2 $0.4 Billion2 1 Percentage of Adjusted Operating Revenue excluding Corporate. 2 Total Adjusted Operating Revenues. Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. 2004 2018 Region1 Product1
Slide 7: Well-Positioned
Well-Positioned 1 Estimate, excludes Munich Health. 2 Adjusted operating revenues. Please refer to “Reconciliation of Non-GAAP Measures” in the Appendix. 3 Does not include Berkshire Hathaway Reinsurance Group. Note: Exchange rate conversions are based on currency rates provided by each company in t
Slide 8: Business Capability Index – Best-in-Class Capabilities
Business Capability Index – All respondents1 Market penetration Indicates competitor position Best-in-Class Capabilities NMG Consulting Studies, Business Capability Index (BCI) – 2017 Global 1 NMG Consulting’s Business Capability Index (Globally). “RGA continued the ‘lock out’ in 2017, extending its
Slide 9: Experienced Team and Deep Bench Strength
Experienced Team and Deep Bench Strength 1 Includes experience in life insurance and life reinsurance industries. 2 Includes experience with RGA’s predecessor, the reinsurance division of General American Life Insurance Company. Name Position Years of Experience Industry1 RGA2 Anna Manning President
Slide 10: Proven Strategy, Exceptional Strengths
“#1 thought leadership & knowledge”1 Proven Strategy, Exceptional Strengths Client Focus Strong multi-level client relationships Comprehensive solutions provider Partnership approach, emphasis on long-term value creation Culture Global collaboration Local empowerment Diverse perspectives Technical E
Slide 11: Success in Continually Growing Book Value Per Share
Success in Continually Growing Book Value Per Share Book value per share (ex-AOCI)1 total return growth2 1 Periods prior to 4Q06 not restated for 2012 DAC accounting change. Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. 2 CAGR growth of book value per share (ex-AOCI) plus d
Slide 12: Effective Capital Management
Effective Capital Management 1 Deployed capital includes block acquisitions, organic growth, and capital model refinements. 4-year excess capital roll-forward Balanced approach toward capital deployment Balanced capital management approach $ in millions 1 $ in millions
Slide 13: RGA Shares Have Performed Well Historically
RGA Shares Have Performed Well Historically Source: S&P Global Market Intelligence, price change percent. Information as of 2/27/2019. 1 Year 5 Years
Slide 14: Global Trends Create Broad Opportunities
Global Trends Create Broad Opportunities Client & Consumer Customer engagement Shifting demographics Digital distribution Macro Environment Balance sheet restructuring Regulatory change Low interest rates Product / Risk Living benefits Longevity risk transfer Savings products Capabilities & Services
Slide 15: Expanding Capabilities
Developing solutions across industry value chain to respond to opportunities Partnering with clients to create shared value Delivering additional sources of revenue Positioned to lead the industry through future innovation Expanding Capabilities
Slide 16: Vision for the Future
Vision for the Future We see an abundance of opportunities and RGA has what it takes to succeed High-performing global platform, with nice balance of risks Full range of capabilities and solutions Strong teams, consistent approach, patience and discipline Innovative culture, focused on long-term val
Slide 17: Financial Overview
The security of experience. The power of innovation. RGA Financial Overview
Slide 18: Key Messages
Key Messages Proven strategy Strong financial track record Continued organic growth and in-force transactions Effective capital management Well-positioned Conventional investment profile Stable liability structure Well-established Enterprise Risk Management framework Attractive financial prospects W
Slide 19: Global Platform Delivers Balance and Diversity
Global Platform Delivers Balance and Diversity Percentages exclude Corporate. 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. Total: $848.1 Million U.S. and Latin America Traditional U.S. and Latin America Financial Solutions Canada EMEA Asia Pacific 2015 2016 2017 2018 U.S
Slide 20: Global Platform Delivers Balance and Diversity
Global Platform Delivers Balance and Diversity 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. Summary of Pre-tax Segment Adjusted Operating Income1
Slide 21: Solid Growth of Adjusted Operating Revenues
Solid Growth of Adjusted Operating Revenues 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. Demonstrated growth over time, despite foreign currency headwinds Global platform provides a diversified source of revenues GFS produces a combination of premiums, fees, and net inve
Slide 22: Attractive Growth Rate of Adjusted Operating EPS
Attractive Growth Rate of Adjusted Operating EPS 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. 2 2Q13 Australia reserve strengthening impacted adjusted operating EPS by $2.53. Strong track record Above the 5%-8% intermediate-term guidance Impact to EPS CAGR: Foreign curre
Slide 23: Solid Adjusted Operating ROE Despite Macro Headwinds
Solid Adjusted Operating ROE Despite Macro Environment Headwinds 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. Intermediate target of 10%-12% Potential positive influences: Higher interest rates Weaker U.S. dollar Growth of international businesses Execution of in-force b
Slide 24: Book Value Growth Among U.S. Life & Health Peers
Book Value Growth Among U.S. Life & Health Peers 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. Source: S&P Global Market Intelligence. This group represents all companies in the SNL U.S. Life/Health index that were publicly traded over the period and which represent at le
Slide 25: Five-Year Dividend Per Share CAGR = 15%
Five-Year Dividend Per Share CAGR = 15% Source: S&P Global Market Intelligence & Company Filings. 1 Calculated as dividends per share divided by adjusted operating earnings per share. 2 Calculated as the dividend payout ratio plus buyback payout ratio. 3 Based upon normalized adjusted operating earn
Slide 26: Stable Liability Profile
Stable Liability Profile Consolidated Reserves Profile December 31, 2018 $43.3 Billion OPTIONALITY PROFILE No policyholder behavior risk Locked-in longevity in payout Very low policyholder behavior risk Mortality, Morbidity, LTC, BOLI Lower policyholder behavior risk Fixed and indexed annuity busine
Slide 27: Investment Objectives and Strategy
Investment Objectives and Strategy Maintain conventional life insurance investment portfolio Manage balance sheet strength and investment income Dedicated Investment Solutions team to support Global Financial Solutions transactions Most assets are managed using internal portfolio managers and analys
Slide 28: Investment Portfolio is Conventional
Managed internally Investment grade corporate bonds Mortgage- and asset-backed securities Commercial mortgage loans Private equity and mezzanine debt Private placements Managed by external managers Corporate high-yield bonds Emerging market high-yield bonds Middle-market bank loans Investment Portfo
Slide 29: Investment Portfolio is Conventional
Investment Portfolio is Conventional 1 Includes asset-intensive funds-withheld assets. Excludes policy loans, other funds-withheld assets, affiliated securities, and liability derivative portfolios. No significant changes since 2012 Average credit rating is single-A We see less value in public BBB-r
Slide 30: Geographic Overview
Geographic Overview May 18, 2017
Slide 31: Key Messages
Key Messages Well-positioned Leading global brand Strong local franchises Well-diversified business Proven strategy Leader in business capability rankings Facultative underwriting leader Leading market share Attractive financial prospects Disciplined and bottom-line focused Steady growth in mortalit
Slide 32: Established Global Brand
Established Global Brand 1 NMG Consulting’s Business Capability Index. 2 Ceded premiums of newly issued policies (excluding block transactions) as provided by NMG Consulting’s study of 50+ countries. 3 Recurring production result for United States and Canada as provided by the SOA survey. 4 Total ce
Slide 33: U.S. & Latin America
U.S. & Latin America 1 NMG Consulting Global Life & Health Reinsurance Programme – 2017. 2 NMG 2016 study (bi-annual). 3 Actual results shown (except for projections). Refer to “Reconciliations of Non-GAAP Measures” in the Appendix. #1 in Business Capability Index (BCI) in 2017: U.S. Individual Mort
Slide 34: U.S. & Latin America
U.S. & Latin America LTC business is written primarily in 2010 and after, and on products with more limited benefits Portfolio contains no legacy in-force blocks Experience is consistent with our original assumptions Comfortable with our reserves Selective and prudent regarding new business opportun
Slide 35: U.S. & Latin America Traditional
U.S. & Latin America Traditional 1 RGA research and Centers for Disease Control and Prevention, May 2018; adjusted for change in population since 2010 and days in month. 2 Centers for Disease Control and Prevention, May 2018. Mortality is improving yet remains seasonal Key Messages Clear seasonal pa
Slide 36: U.S. & Latin America Traditional
U.S. & Latin America Traditional 1 Please refer to “Reconciliations of Non-GAAP Measures” in the Appendix. Long-term stability despite quarterly volatility Key Messages Generally consistent annual results despite interest rate headwinds Q1 generally a weak quarter Q4 generally the strongest quarter
Slide 37: U.S. & Latin America Traditional
U.S. & Latin America Traditional Actuarial Liabilities – U.S. GAAP vs. Best Estimate $ in billions Value embedded in U.S. & Latin America traditional in-force
Slide 38: U.S. & Latin America Traditional
U.S. & Latin America Traditional Source: Society of Actuaries Reinsurance Market Surveys/LIMRA/SNL. Excludes portfolio (in-force) production. Reinsurance penetration has increased since 2015 Overview of U.S. Individual Life Mortality Market Percent Reinsured
Slide 39: Canada
Canada Key Messages A leading franchise Individual new business recurring production leader since 20071 #1 in BCI since 20082 Sustainable long-term profit stream Potential growth opportunities Delivering client solutions for a changing regulatory environment Growing longevity market Closing the insu
Slide 40: Europe, the Middle East and Africa
Europe, the Middle East and Africa Key Messages A leading franchise with #1 BCI rating1 in: EMEA region in aggregate for the 5th consecutive year South Africa for the 8th consecutive year Middle East and CEE2 markets Stable outlook for traditional business Selective growth opportunities in the Middl
Slide 41: Australia
Australia Key Messages In-force management and repricing continues Lumpy claims, disabled life reserves, and IBNR lead to quarterly volatility Selective about new business opportunities 1 Actual results shown (except for projections). Refer to “Reconciliations of Non-GAAP Measures” in the Appendix.
Slide 42: Asia
Asia1 Key Messages A leading franchise #1 in BCI and market share for past six years2 #1 in new business individual premium 2018 Life Reinsurer of the Year in Asia3 Track record of profitable growth Solid outlook for organic growth Favorable demographics and macro trends Well-diversified product mix
Slide 43: Appendix: Reconciliations of Non-GAAP Measures
Appendix Reconciliations of Non-GAAP Measures
Slide 44: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures $ in millions
Slide 45: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures $ in millions
Slide 46: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures $ in millions
Slide 47: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures $ in millions
Slide 48: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures $ in millions
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