Reinsurance Group Of America, Incorporated · NYSE:RGA

Reinsurance Group Of America — Q1 2022 Earnings Presentation

22 slides from Reinsurance Group Of America's earnings presentation, May 5, 2022

  1. Slide 1: 1Q22 Earnings Presentation

    1Q22 Earnings Presentation May 5, 2022 THE SECURITY OF EXPERIENCE. Reinsurance Group of America, Incorporated THE POWER OF INNOVATION.

  2. 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

  3. 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

  4. Slide 4: Key Messages

    Key Messages Strong Q1 underlying results; continued COVID-19 claim costs  Q1 adjusted operating income of $0.471 per diluted share included $3.482 per diluted share of COVID-19 impacts3  Trailing 12 months adjusted operating ROE of 2.1%1, reflecting 8.9%2 of COVID-19 impacts3  Strong earnings fr

  5. Slide 5: Consolidated Results

    Consolidated Results Pre-tax adjusted Adjusted operating EPS1 Trailing 12 month operating income1  Q1 2022 estimated COVID- adjusted operating ROE1  Q1 2022 results include 19 impacts2 of $3.483 per  Estimated COVID-19 $310 million of estimated diluted share impacts2 of 8.9%3 on trailing COVID-19

  6. Slide 6: Q1 Results by Segment

    Q1 Results by Segment  U.S. and Latin America: Traditional results reflected material COVID-19 claims, partially offset by above- 1Q22 1Q21 average variable investment income; Pre-tax Adjusted Operating Income 1Q22 1Q21 COVID-19 COVID-19 U.S. Group and Individual Health (Loss)1 Reported Reported re

  7. Slide 7: Q1 Premiums by Segment

    Q1 Premiums by Segment % Premiums1 1Q22 1Q21 Change  Premium growth of 8.3% U.S. and Latin America Traditional $1,541 $1,419 8.6%  U.S. and Latin America premium growth included a U.S. and Latin America Asset-Intensive $15 $13 15.4% previous restructure of an existing treaty Canada Traditional $30

  8. Slide 8: Non-Spread Investment Results

    Non-Spread Investment Results Investment yield1 New money rate2  Steady income supported by portfolio allocation  New money rate rose to 3.81% in Q1 2022,  Strong quarterly variable investment income reflecting higher available market yields and driven by real estate joint venture realizations pr

  9. Slide 9: Investment Portfolio

    Investment Portfolio Asset Allocation2  Diversification and strong Investment Grade Bonds 1.6% underwriting are core to our 3.8% 0.2% Funds Withheld at Interest 3.8% investment strategy Mortgage Loans on Our investment 4.6% Real Estate  Portfolio benefits from broad 8.3% High Yield Bonds platform

  10. Slide 10: Commercial Mortgage Loans (CML)

    Commercial Mortgage Loans (CML) Commercial Mortgage  Experienced team has managed Investment by Property Type1 through multiple real estate 4.5% 1.9% cycles; robust infrastructure to Retail protect value in times of stress 13.0% 33.8% Office Well-diversified by – Portfolio underwriting provides sig

  11. 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; continuing gradual  Excess capital position of $1.0  Leverage ratios maintained redu

  12. Slide 12: Balanced Capital Management

    Balanced Capital Management Efficient deployment Balanced approach  Strong capital deployment  Priority to deploy capital into in Q1 2022 organic growth and in-force block transactions Effective and  Success over time in deploying capital into in-force blocks  Return to shareholders balanced thr

  13. Slide 13: U.S. General Population Mortality

    U.S. General Population Mortality Elevated Q1 COVID-19 population deaths with shift in age impact Excess Population Deaths1 Proportion of COVID-19 Population 180,000 45.0% Deaths Below Age 652 160,000 40.0% 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%

  14. Slide 14: U.S. Individual Mortality Claims Experience

    U.S. Individual Mortality Claims Experience Q1 mortality results driven by increased general population deaths  COVID-19 claim costs estimated at $260 million, within our expected range of $10 million to $20 million pre-tax for every additional 10,000 general population deaths  Experience in the q

  15. Slide 15: Additional Q1 COVID-19 Claims Experience

    Additional Q1 COVID-19 Claims Experience  Canada Q1 estimated COVID-19 claim costs increased from Q4, reflecting higher general population deaths Estimated COVID-19 Claim Costs1 – Within expected range after adjusting for one large claim Canada $20  U.K. claims experience within our expected range

  16. Slide 16: 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 5.2% CAGR3 over time, in a range of $137.89 environments $124

  17. Slide 17: Appendix

    APPENDIX 17

  18. Slide 18: Pre-tax Income (Loss) Reconciliation

    Pre-tax Income (Loss) Reconciliation  Modest increase in credit allowance 1Q22 1Q21 and investment impairments  Net losses on sale of fixed maturity securities associated with portfolio Pre-tax income (loss)1 $ (60) 186 repositioning Investment-related  Change in market value of equity securities

  19. 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 1Q21 1Q22 U.S. & Latin America Traditional GAAP pre-tax income (loss) $ (338) $ (166) Change in MV of embedded derivatives 1 (6) (15) Pre-tax adjusted operating income $ (344)

  20. Slide 20: Reconciliations of Non-GAAP Measures

    Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 1Q21 1Q22 Asia Pacific Traditional GAAP pre-tax income $ 41 $ 51 Pre-tax adjusted operating income $ 41 $ 51 Asia Pacific Financial Solutions GAAP pre-tax income (loss) $ 28 $

  21. Slide 21: 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 2018 2019 2020 2021 1Q21 1Q22 RGA, Inc. stockholders' equity $ 8,450.6 $ 11,601.7 $ 14,352.0 $ 13,014.0 $ 12,090.0 $ 9,182.0 Less: Unrealized appreciatio

  22. Slide 22: ©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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