Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q4 2024 Earnings Presentation
30 slides from Reinsurance Group Of America's earnings presentation, Feb 7, 2025
Slide 1: 4Q24 Earnings Presentation
4Q24 Earnings Presentation Reinsurance Group of America, Incorporated 02.06.2025 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: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Strong operating results Solid overall operating Strong business Balance sheet performance momentum management Q4 adjusted operating income, $1.0 billion increase in value of Deployable capital4 of $1.7 billion excluding notable items of $4.991 in-force busi
Slide 5: 2024 Full Year Financial Highlights
2024 Full Year Financial Highlights Record operating results Very strong operating performance Favorable outlook Adjusted operating income, excluding notable items of Strong business momentum continuing across $22.571 per diluted share, a record result markets and product lines Value of in-for
Slide 6: 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 15.5% 15.4% momentum, balance sheet $6.13 15.3% $6.02 $5.57 $5.48 14.8% $5.16 $4.73 $4.99 14.4% optimizati
Slide 7: Q4 Results by Segment
Q4 Results by Segment U.S. and Latin America: Traditional results reflected favorable in-force management actions, partially offset by unfavorable Group experience; Financial Solutions results reflected the continued runoff of existing Adjusted Operating Income (Loss) Before 2024 Run Rate annuity
Slide 8: 2024 Results by Segment
2024 Results by Segment U.S. and Latin America: Traditional results reflected favorable in-force management actions and Individual Health results; Financial Solutions results reflected the continued runoff of existing annuity business Adjusted Operating Income (Loss) Before 2024 Run Rate and the e
Slide 9: Biometric Experience
Biometric Experience Broad based Total Company favorable economic $ in millions biometric experience1 $200 $167 for the full year $150 $138 Claims experience not $100 $79 reflected in income $50 $58 will be recognized $20 $2 $0 over the remaining life $0 of the business ($14) ($14) -$50 ($43) ($52)
Slide 10: Premium Growth
Premium Growth Continued good momentum Constant Traditional premium growth % Premiums1 2024 2023 Currency Change % Change² 8.3% U.S. and Latin America $7,500 $7,023 7.0% 6.9% Traditional 6.7% 7.9% Canada Traditional $1,291 $1,215 6.3% 7.9% 5.9% 6.1% EMEA Traditional $2,002 $1,775 12.8% 11.2% 4.9% AP
Slide 11: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2 ▪ Diversified portfolio and broad investment ▪ Q4 new money rate of 6.04%, well above platform supports portfolio income portfolio yield ▪ Yield lower primarily reflecting incentive ▪ Increase over prior quarter primarily reflects compe
Slide 12: Investment Portfolio
Investment Portfolio ▪ Disciplined approach focuses Asset Allocation1,3 Our investment on strong credit underwriting with emphasis on higher- strategy quality, diversified fixed balances risk income assets $101.4B and return to ▪ Fixed maturity securities: 94.6% investment grade build a portfolio ra
Slide 13: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) ▪ Experienced internal team has managed Commercial mortgage investment by property type1 High quality, through multiple real estate cycles; utilizes downcycle playbook well-diversified ▪ Disciplined portfolio underwriting and resulting metrics provide significant by g
Slide 14: CML Office Loan Exposure
CML Office Loan Exposure1 ▪ CML office loan exposure Portfolio metrics Portfolio of represents 1.7% of total cash and invested assets selective, first ▪ Office loan portfolio is LTV DSCR Average lien loans loan size primarily suburban focused; 65% 1.95x ~$11 M average loan size of ~$11 Originated an
Slide 15: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position Leverage ratios within our targeted $663 million2 at the holding company ranges Deployable capital of $1.7 billion3 Access to $850 million syndicated credit facility and other sources LDTI LDTI $ in billi
Slide 16: Deployable Capital
Deployable Capital Improved forward-looking estimate Represents management’s estimate of capital available for deployment into transactions or available to return to shareholders over the next 12 months – Includes estimates of capital generation and consumption over a rolling 12-month period – Cap
Slide 17: Capital Deployed
Capital Deployed In-force and Other Shareholder Dividends and From 2020 – 2024: Transactions Share Repurchases Deployed $3.7 billion A recognized leader in large and complex transactions Consistently paying shareholder dividends, steady growth over time into in-force and Long track record of
Slide 18: 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 9.9% CAGR Diversified platform, well-balanced risk profile $146.22 $151.97 Disciplined underwriter, proactive $113.04 risk manager Lon
Slide 19: Value of In-force Business Margins
Value of In-force Business Margins1 Multiple levers leading to increase in value of in-force business margins, which has generated consistent EPS growth and strong ROE Substantial expected margins exist in the in-force business across geographies and products Expected profitability of new busi
Slide 20: Updated Financial Targets
Updated Financial Targets Adjusted Operating Income (Loss) Previous Updated Intermediate Before Taxes1,2 Run Rate2 Run Rate2 Term CAGR2 U.S. and Latin America Traditional $340-380 $485-525 4-7% Remain well- U.S. and Latin America Financial Solutions $370-410 $270-300 positioned in Canada Traditional
Slide 21: Well-Positioned for the Future
Well-Positioned for the Future 2024 result continue to build the foundation for long-term value expectations Very strong Robust Improved Uniquely operating new business value of in-force positioned performance momentum business margins in the industry based reflected in EPS and across all geographie
Slide 22: Appendix
Appendix 22
Slide 23: Q4 Pre-Tax Income Reconciliation
Q4 Pre-Tax Income Reconciliation 4Q24 4Q23 Income before taxes1 $225 $164 Change in credit allowance and investment impairments due to Investment-related market conditions Change in allowance for credit losses and impairments - 2 Net losses on sale of fixed maturity Net (gains)/losses on sale of
Slide 24: 2024 Pre-Tax Income Reconciliation
2024 Pre-Tax Income Reconciliation 2024 2023 Income before taxes1 980 $1,160 Change in credit allowance and investment impairments due to Investment-related market conditions Change in allowance for credit losses and impairments 78 62 Net losses on sale of fixed maturity Net (gains)/losses on sa
Slide 25: Value of In-force Business Margins
Value of In-force Expected underwriting margin1 is derived from the estimated cash Business flows used to determine LDTI reserves. This amount is calculated using the locked-in LDTI liability discount rates. Margins Expected investment margin, which (i) for LDTI products, values Description deri
Slide 26: Reconciliations of Non-GAAP Measures
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Slide 27: Reconciliations of Non-GAAP Measures
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Slide 28: Reconciliations of Non-GAAP Measures
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Slide 29: Reconciliations of Non-GAAP Measures
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Slide 30: ©2025 RGA. All rights reserved.
©2025 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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