Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q3 2024 Earnings Presentation
26 slides from Reinsurance Group Of America's earnings presentation, Nov 1, 2024
Slide 1: 3Q24 Earnings Presentation
3Q24 Earnings Presentation Reinsurance Group of America, Incorporated 10.31.2024 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 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 because the Company believe
Slide 4: Third Quarter Financial Highlights
Third Quarter Financial Highlights Record operating results Very strong overall Strong business Balance sheet operating performance momentum management Q3 adjusted operating income, Value of In-force Business Excess capital of $0.7 billion excluding notable items of $6.131 Margins increased $4
Slide 5: Consolidated Results
Consolidated Results Consistent EPS growth and strong ROE Adjusted operating EPS, Trailing 12 month excluding notable items1 adjusted operating ROE, Strong new excluding notable items1 business $6.02 $6.13 14.4% 14.8% 15.3% 15.5% momentum, 14.0% $5.57 $5.16 $5.48 12.5% 13.1% 13.0% balance sheet $4.7
Slide 6: Q3 Results by Segment
Q3 Results by Segment U.S. and Latin America: Traditional results reflected favorable in-force management actions and favorable Individual Health Pre-tax Adjusted Operating Income (Loss), Run Rate results. Individual Life claims experience 3Q24 was in line with expectations; Financial excluding No
Slide 7: Notable Items
Notable Items Current period unfavorable financial impact; long-term RGA will begin to recapture retroceded business starting in 2025 expected increase in value due to an increase in retention limit effective January 1, 2025 Pre-tax Adjusted Annual Retrocession The current period impacts of the
Slide 8: Biometric Experience
Biometric Experience Continued Total Company $ in millions favorable $150 $134 $138 biometric experience1 $100 $79 Claims experience $58 $53 $50 not reflected in $20 income will be $2 $0 $0 recognized over $(14) the remaining life -$50 3Q23 4Q23 $(43) 1Q24 2Q24 3Q24 of the business Claims Experience
Slide 9: Premium Growth
Premium Growth Continued momentum Constant 3Q24 3Q23 % Traditional premium growth Premiums1 YTD YTD Change Currency % Change² U.S. and Latin America $5,454 $5,111 6.7% 6.7% 7.9% Traditional 6.7% Canada Traditional $958 $904 6.0% 7.1% 7.5% 5.9% 6.1% EMEA Traditional $1,514 $1,314 15.2% 13.7% 4.9% APA
Slide 10: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2 Diversified portfolio and broad investment Q3 new money rate of 5.68%, decrease platform supports portfolio income over prior quarter primarily due to lower market yields Yield increased primarily on flow through of portfolio repo
Slide 11: Investment Portfolio
Investment Portfolio Asset allocation1,3 Disciplined approach focuses 1.3% 1.2% Investment Grade Bonds Our investment on strong credit underwriting 2.9% with emphasis on higher- 3.8% 0.1% Mortgage Loans on Real Estate strategy Funds Withheld at Interest quality, diversified fixed income assets 5.4
Slide 12: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Experienced internal team has managed Commercial mortgage through multiple real estate cycles; investment by property type1 High quality, utilizes downcycle playbook well-diversified 4.9% 0.5% Disciplined portfolio underwriting and Retail resulting metrics provide
Slide 13: CML Office Loan Exposure
CML Office Loan Exposure1 CML office loan exposure Portfolio metrics Portfolio of represents 1.6% of total cash and invested assets selective, first Average LTV DSCR Office loan portfolio is 64% 1.92x loan size lien loans primarily suburban ~$11 M focused; average loan size of ~$11 million Origi
Slide 14: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position Leverage ratios within our targeted $853 million2 at the holding company ranges Excess capital position of $0.7 billion Temporary increase due to timing from cash received on new transactions and portfoli
Slide 15: Capital Management
Capital Management Strong deployment Active management Active and Managing capital over the long-term Priority to deploy capital into organic growth and in-force block transactions balanced Strong quarter in deploying capital into in-force block transactions, adding expected long-term value to
Slide 16: 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 10.4% CAGR3 Diversified platform, well-balanced risk profile $146.22 $151.79 Disciplined underwriter, proactive $113.04 risk manager L
Slide 17: Value of In-force Business Margins
Value of In-force Business Margins1 Multiple levers leading to increase in value of in-force business margins, generating consistent EPS growth and strong ROE Substantial expected margins exist in the in-force business across geographies and products Profitable new business and balance sheet m
Slide 18: Well-Positioned for the Future
Well-Positioned for the Future Building long-term value Strong nine-month operating performance reflected in EPS and ROE Robust new business momentum across all geographies, leading to a full pipeline Substantial growth in Value of In-force Business Margins shows expected impact of new busines
Slide 19: Appendix
Appendix 19
Slide 20: Pre-Tax Income Reconciliation
Pre-Tax Income Reconciliation 3Q24 3Q23 Pre-tax income1 $214 $380 Increase in credit allowance and investment impairments due to Investment-related market conditions Change in allowance for credit losses and impairments 20 14 Net gains on sale of fixed maturity Net (gains)/losses on sale of fixe
Slide 21: Value of In-force Business Description
Value of In-force Expected underwriting margin1 is derived from the estimated cash Business flows used to determine LDTI reserves, which are reviewed as part of the annual audit Description – Calculated using the locked-in LDTI liability discount rates Expected investment margin: – LDTI products
Slide 22: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures 22
Slide 23: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures 23
Slide 24: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures 24
Slide 25: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures 25
Slide 26: ©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 — Q3 2024 Earnings Presentation on 6ix