Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q4 2021 Earnings Presentation
25 slides from Reinsurance Group Of America's earnings presentation, Feb 3, 2022
Slide 1: 4Q21 Earnings Presentation
4Q21 Earnings Presentation February 4, 2022 THE SECURITY OF EXPERIENCE. Reinsurance Group of America, Incorporated THE POWER OF INNOVATION.
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 future operations, strategies, earnings, revenues, income or loss, ratios, financial perform
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: Key Messages
Key Messages Strong Q4 underlying results; continued COVID-19 claim costs Q4 adjusted operating loss of $0.561 per diluted share included $3.952 per diluted share of COVID-19 impacts Trailing 12 months adjusted operating ROE of 0.8%1 reflects 10.1%2 of COVID-19 impacts Book value per share, ex
Slide 5: Consolidated Results
Consolidated Results Pre-tax adjusted Adjusted operating EPS1 Trailing 12 month operating income1 Q4 2021 estimated COVID- adjusted operating ROE1 Q4 2021 results include 19 impacts2 of $3.953 per Estimated COVID-19 $350 million of estimated diluted share impacts2 of 10.1%3 on COVID-19 impacts
Slide 6: Q4 Results by Segment
Q4 Results by Segment U.S. and Latin America: Traditional results reflected COVID-19 claim costs, excess individual mortality claims 4Q21 4Q20 believed to be directly or indirectly Pre-tax Adjusted Operating Income 4Q21 4Q20 COVID-19 COVID-19 COVID-19-related, and higher variable (Loss)1 Reported
Slide 7: Full Year Results by Segment
Full Year Results by Segment 2021 2020 Pre-tax Adjusted Operating Income 2021 2020 COVID-19 COVID-19 (Loss)1 Reported Reported Impact2 Impact2 U.S. and Latin America Traditional $(546) $(852) $(287) $(564) Underlying U.S. and Latin America Asset-Intensive $341 $13 $253 - consolidated results U.S.
Slide 8: Q4 Premiums by Segment
Q4 Premiums by Segment Premium growth of 4.5% % U.S. and Latin America Premiums1 4Q21 4Q20 premium growth included a Change one-time restructure of an U.S. and Latin America Traditional $1,697 $1,591 6.7% existing treaty and new in- force transactions U.S. and Latin America Asset-Intensive $13 $
Slide 9: Full Year Premiums by Segment
Full Year Premiums by Segment % Premium growth of 7.0% Premiums1 2021 2020 Change U.S. and Latin America U.S. and Latin America Traditional $6,244 $5,838 7.0% premium growth included a one-time restructure of an U.S. and Latin America Asset-Intensive $55 $53 3.8% existing treaty Canada Tradition
Slide 10: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rates2 Steady income supported by portfolio allocation Quarterly rate reflected public/private mix and Variable investment income supported by real USD and non-USD mix estate joint venture and limited partnership realizations Investment
Slide 11: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong balance sheet with a Consistent leverage ratios Holding a high level of stable capital mix over time within our targeted ranges liquidity throughout 2021; Excess capital position of $1.3 Leverage ratios maintained continu
Slide 12: Balanced Capital Management
Balanced Capital Management Efficient deployment Balanced approach Strong capital deployment Priority to deploy capital into in 2021 organic growth and in-force block transactions Effective and Success over time in deploying capital into in-force blocks Return to shareholders balanced throug
Slide 13: U.S. General Population Mortality
U.S. General Population Mortality Elevated Q4 COVID-19 and Non-COVID-19 excess population deaths 180,000 Excess Population Deaths1 45.0% Proportion of COVID-19 Population 160,000 40.0% Deaths Below Age 652 140,000 35.0% 120,000 30.0% 100,000 25.0% 80,000 20.0% 60,000 15.0% 40,000 10.0% 20,000 5.0% -
Slide 14: U.S. Individual Mortality Claims Experience
U.S. Individual Mortality Claims Experience Higher Q4 mortality driven by increased general population deaths COVID-19 claim costs estimated at $247 million, within our expected range of $10 million to $20 million pre-tax for every additional 10,000 general population deaths Lower average COVID-
Slide 15: Additional Q4 COVID-19 Claims Experience
Additional Q4 COVID-19 Claims Experience South Africa estimated COVID-19 claim costs – Approximately half of the impact due to adverse development from Q3 – Remainder of Q4 experience reflecting lower general population Estimated COVID-19 deaths Claim Costs1 U.S. Group estimated COVID-19 claims
Slide 16: Q1 2022 COVID-19 Mortality Expectations
Q1 2022 COVID-19 Mortality Expectations Uncertainty persists due to the developing nature of the Omicron variant – Clear evidence that it is more infectious than previous variants – Preliminary data is promising and indicates material reduction in severity of outcomes Near term expectation is fo
Slide 17: 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 10.3% CAGR diversification of earnings 10.7% CAGR sources and global platform 10.4% CAGR Consistent book value growth 5.9% CAGR over time, in a range of $139.53 environments $124.39
Slide 18: Appendix
APPENDIX 18
Slide 19: Investment Portfolio
Investment Portfolio Asset Allocation2 Diversification and strong 3.8% Investment Grade Bonds underwriting are core to our 3.7% High Yield Bonds investment strategy Equity Securities Our investment 1.5% 8.5% 94.0% investment grade Mortgage Loans on Real strategy balances 7.7% Estate Top 10 cor
Slide 20: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Commercial Mortgage Team has managed through Investment by Property Type1 multiple real estate cycles; robust 4.6% 3.4% infrastructure to protect value in Office times of stress 12.6% 26.7% Retail Well-diversified by Industrial – Portfolio underwriting metrics provi
Slide 21: Pre-tax Income (Loss) Reconciliation
Pre-tax Income (Loss) Reconciliation Modest increase in investment impairments; decreased valuation allowance on the commercial mortgage loan portfolio to reflect 4Q21 4Q20 the updated economic outlook Net gains on sale of fixed maturity Pre-tax income1 $ 57 169 securities associated with portfo
Slide 22: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 4Q20 4Q21 YTD 2020 YTD 2021 U.S. & Latin America Traditional GAAP pre-tax income (loss) $ (92) $ (211) $ (298) $ (540) Change in MV of embedded derivatives 1 3 (4) 11 (6) Pre-t
Slide 23: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 4Q20 4Q21 YTD 2020 YTD 2021 Asia Pacific Traditional GAAP pre-tax income $ 25 $ 57 $ 174 $ (10) Pre-tax adjusted operating income $ 25 $ 57 $ 174 $ (10) Asia Pacific Financial
Slide 24: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP stockholders' equity to stockholders' equity excluding AOCI In millions 2017 2018 2019 2020 2021 GAAP stockholders' equity $ 9,569.5 $ 8,450.6 $ 11,601.7 $ 14,352.0 $ 13,014.0 Less: Unrealized appreciation of securities 2,200.7 856.2 3,298.
Slide 25: ©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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