Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q3 2022 Earnings Presentation
21 slides from Reinsurance Group Of America's earnings presentation, Nov 3, 2022
Slide 1: 3Q22 Earnings Presentation
3Q22 Earnings Presentation November 3, 2022 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 including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial performance
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: Third Quarter Financial Highlights
Third Quarter Financial Highlights Q3 adjusted operating income of $5.201 per diluted share Strong Strong earnings from U.S. Traditional, Asia Traditional, U.S. Financial Solutions Operating Trailing 12 months adjusted operating ROE of 7.9%1; reflecting 3.9%2 of COVID-19 impacts3 Performance
Slide 5: Consolidated Results
Consolidated Results Adjusted operating EPS1 Trailing 12 month Very strong operating adjusted operating ROE1 performance Estimated COVID-19 Diverse source of Q3 2022 estimated COVID- impacts2 of 3.9%3 on trailing earnings by 19 impacts2 of $1.003 per 12 month adjusted operating diluted share,
Slide 6: Q3 Results by Segment
Q3 Results by Segment U.S. and Latin America: Traditional results reflected favorable non- COVID-19 individual mortality 3Q22 3Q21 experience and favorable Individual Pre-tax Adjusted Operating Income 3Q22 3Q21 Health and Group results; COVID-19 COVID-19 COVID-19 claim costs were moderate; Asset-
Slide 7: Q3 Premiums
Q3 Premiums Strong momentum Quarterly premium growth of 4.9%, 10.1%2 on a constant currency basis Premiums1 3Q22 3Q21 % Premium Growth Change U.S. and Latin America reflects U.S. and Latin America $1,640 $1,550 5.8% 10% 9.4% continued strong new business Traditional 9% 8.8% activity U.S. and Lat
Slide 8: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2 Steady income supported by diversified portfolio, New money rate rose to 5.35% in Q3 2022, primarily benefiting from higher investment yields reflecting higher available market yields Q3 variable investment income (VII) moderating
Slide 9: Investment Portfolio
Investment Portfolio Asset Allocation2 Disciplined approach focuses on 1.7% 0.2% Investment Grade Bonds strong credit underwriting with 4.5% 5.2% Mortgage Loans on Real emphasis on higher-quality, Estate diversified fixed income 4.9% Funds Withheld at Interest High Yield Bonds Our investment inves
Slide 10: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Commercial Mortgage Experienced team has managed Investment by Property Type1 through multiple real estate cycles; 4.8% 2.2% robust infrastructure designed to Retail protect value in times of stress 11.4% 34.8% Office Well-diversified by Disciplined portfolio unde
Slide 11: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position; measured Leverage ratios within our Strong level of liquidity includes growth over time targeted ranges proceeds from recent Excess capital position of $1.3 billion Slightly elevated following the subord
Slide 12: 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 block transactions Effective and into in-force blocks, adding long-term value to RGA Retur
Slide 13: Global Claims Experience
Global Claims Experience Favorable overall non-COVID-19 claims; moderate COVID-19 impact Strong underwriting results in U.S. Individual Mortality – Non-COVID-19 experience was favorable due to lower large claims – Estimated COVID-19 claim costs of $45 million at the low end of our expected range o
Slide 14: Long-Term Business, Long-Term Success
Long-Term Business, Long-Term Success Book Value per Share (ex-AOCI)1 Total Return Growth2 Demonstrated value from 10.1% CAGR3 diversification of earnings 10.3% CAGR3 sources and global platform 9.8% CAGR3 Consistent book value growth 5.9% CAGR3 over time, in a range of $143.91 environments $124
Slide 15: Key Messages
Key Messages Differentiated and valuable global franchise A leading market position; deep technical expertise Well-Positioned Strong culture of collaboration, creativity, and integrity to Deliver The security of Attractive transaction and organic pipelines, broad- based across risks and geog
Slide 16: Appendix
APPENDIX 16
Slide 17: Pre-Tax Income (Loss) Reconciliation
Pre-Tax Income (Loss) Reconciliation Increase in credit allowance and investment impairments due to growth in portfolio and market conditions 3Q22 3Q21 Net losses on sale of fixed maturity securities associated with portfolio repositioning Pre-tax income (loss)1 $ 366 (34) Modest change in mar
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 3Q22 3Q21 U.S. & Latin America Traditional GAAP pre-tax income (loss) $ 204 $ (126) 1 Capital (gains) losses, derivatives and other, net (1) - 1 Change in MV of embedded deriva
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 3Q22 3Q21 Asia Pacific Traditional GAAP pre-tax income $ 118 $ (96) Pre-tax adjusted operating income $ 118 $ (96) Asia Pacific Financial Solutions GAAP pre-tax income (loss) $
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 3Q22 3Q21 2021 2020 2019 2018 RGA, Inc. stockholders' equity $ 3,652.0 $ 12,885.0 $ 13,014.0 $ 14,352.0 $ 11,601.7 $ 8,450.6 Less: Unrealized appreciatio
Slide 21: ©2022 RGA. All rights reserved.
©2022 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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