Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q1 2024 Earnings Presentation
21 slides from Reinsurance Group Of America's earnings presentation, May 3, 2024
Slide 1: 1Q24 Earnings Presentation
1Q24 Earnings Presentation Reinsurance Group of America, Incorporated 05.02.2024 1
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 Non-GAAP Financial Measures Reinsurance Group of America, Incorporated (the “Company”) discloses certain financial measures that are not determined in accordance with U.S. GAAP. The Company principally uses such non-GAAP financial measures in evaluating performance
Slide 4: First Quarter Key Messages
First Quarter Key Messages Strong overall performance and momentum Q1 adjusted operating income of $6.021 per diluted share Trailing twelve months adjusted operating ROE of 14.8%1 Strong Traditional results across all regions and product lines, primarily due to favorable claims experience Co
Slide 5: Consolidated Results
Consolidated Results Adjusted operating EPS1 Trailing 12 month Strong adjusted operating ROE1 earnings $6.02 $6.02 14.8% 14.8% results across 13.1% 11.2% geographies and products $5.16 $5.16 1Q23 1Q24 1Q23 ex 1Q24 ex 1Q23 1Q24 1Q23 ex 1Q24 ex Notable Notable Notable Notable Items Items Items Items 5
Slide 6: Q1 Results by Segment
Q1 Results by Segment U.S. and Latin America: Traditional results Pre-tax adjusted operating income (loss), reflected favorable Individual Life claims 1Q24 1Q23 excluding notable items1 experience, and favorable Health and Group experience; Financial Solutions U.S. and Latin America Traditional $1
Slide 7: Biometric Experience
Biometric Experience Total Company Favorable biometric $ in millions $150 experience1 over the $134 $138 past year $100 Current period $50 $54 $53 $58 experience not $34 $20 reflected in income $0 will be recognized over remaining life of -$50 ($43) ($45) ($43) the business 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 8: Premium Growth
Premium Growth Good momentum Constant % Traditional premium growth Premiums1 1Q24 1Q23 Change Currency % Change² U.S. and Latin America 8.2% $1,715 $1,615 6.2% 6.0% Traditional 6.7% 7.8% Canada Traditional $318 $295 7.8% 7.5% 5.9% 6.1% EMEA Traditional $496 $438 13.2% 11.6% 4.9% APAC Traditional $71
Slide 9: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2 Steady income supported by diversified Q1 new money rate (NMR) of 6.12%, still well portfolio above portfolio yield Value opportunities and yield environment NMR below prior quarter primarily reflecting support portfolio yield l
Slide 10: Investment Portfolio
Investment Portfolio Asset allocation1,3 Disciplined approach focuses Investment Grade Bonds Our investment on strong credit underwriting 1.3% 1.3% with emphasis on higher- 3.0% 3.9% 0.2% Mortgage Loans on Real Estate strategy Short-Term/Cash Equivalents quality, diversified fixed income assets 6.
Slide 11: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Experienced internal team has managed Commercial mortgage through multiple real estate cycles; utilizes investment by property type1 High quality, downcycle playbook Disciplined portfolio underwriting and 5.4% 0.6% Retail well-diversified resulting metrics provide
Slide 12: CML Office Loan Exposure
CML Office Loan Exposure CML office loan exposure Portfolio metrics1 Portfolio of represents 1.9% of total cash and invested assets selective, first Average LTV DSCR Office loan portfolio is 63% 1.83x loan size lien loans primarily suburban ~$11 M focused; average loan size of ~$11 million Origi
Slide 13: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position Leverage ratios within our targeted Access to $850 million syndicated credit ranges facility and other sources Excess capital position of $0.6 billion Temporary increase due to timing from cash received o
Slide 14: Capital Management
Capital Management Record deployment Active management Active and Managing capital over the long-term Priority to deploy capital into organic growth and in-force transactions balanced Record quarter in deploying capital into in-force transactions, adding expected long-term value to RGA Retur
Slide 15: Long-Term Business, Long-Term Success
Long-Term Business, Long-Term Success A global leader, differentiated Book value per share (ex-AOCI)1 market position total return growth2 15-Year 10.0% CAGR 10.6% CAGR3 Diversified platform, well-balanced risk profile $146.22 $146.96 Disciplined underwriter, proactive $113.04 risk manager L
Slide 16: Appendix
Appendix 16
Slide 17: Pre-Tax Income Reconciliation
Pre-Tax Income Reconciliation Increase in credit allowance and investment impairments due to market conditions 1Q24 1Q23 Net losses on sale of fixed maturity Pre-tax income1 $272 $351 securities associated with portfolio repositioning Investment-related Change in allowance for credit losses and
Slide 18: Reconciliations of Non-GAAP Measures
Reconciliations Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 1Q24 1Q23 U.S. & Latin America Traditional GAAP pre-tax income $ 116 $ 121 of Non-GAAP Change in MV of embedded derivatives 12 1 Pre-tax adjusted operating income $ 128 $ 122 Notable items - - Pre-
Slide 19: Reconciliations of Non-GAAP Measures
Reconciliations Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 1Q24 1Q23 Asia Pacific Traditional GAAP pre-tax income $ 109 $ 79 of Non-GAAP Pre-tax adjusted operating income $ 109 $ 79 Notable items - - Pre-tax adjusted operating income excluding notable item
Slide 20: Reconciliations of Non-GAAP Measures
Reconciliations Reconciliation of RGA, Inc. shareholders' equity to RGA, Inc. shareholders' equity excluding AOCI In millions 1Q24 2023 2022 2021 2020 2019 RGA, Inc. shareholders' equity $ 9,468.0 $ 9,081.0 $ 7,081.0 $ 8,180.0 $ 14,352.0 $ 11,601.7 Less effect of AOCI: Accumulated currency translati
Slide 21: ©2024 RGA. All rights reserved.
©2024 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 — Q1 2024 Earnings Presentation on 6ix