Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q3 2023 Earnings Presentation
22 slides from Reinsurance Group Of America's earnings presentation, Nov 3, 2023
Slide 1: 3Q23 Earnings Presentation
3Q23 Earnings Presentation Reinsurance Group of America, Incorporated 11.02.2023 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 Key Messages
Third Quarter Key Messages Very strong overall Balanced capital Favorable investment performance management results Q3 adjusted operating income Capital deployment of $203 New money rates of 6.31% of $5.571 per diluted share million for the quarter into in- Rising portfolio book yield Favo
Slide 5: Consolidated Results
Consolidated Results Earnings strength and momentum; balanced capital management Strong operating Adjusted operating EPS1 Trailing 12 month adjusted operating ROE1 performance $5.57 $5.57 14.7% 14.0% across products $3.92 11.7% and geographies 9.2% $0.24 3Q22 3Q22 ex 3Q23 3Q23 ex 3Q22 3Q22 ex 3Q23 3
Slide 6: Q3 Results by Segment
Q3 Results by Segment 3Q23 3Q23 Excluding Pre-tax Adjusted Operating Income (Loss)1 3Q23 Notable Items Notable Items Impact2 Impact2 U.S. and Latin America Traditional $103 ($17) $120 U.S. and Latin America Asset-Intensive $117 $22 $95 U.S. and Latin America Capital Solutions $19 - $19 Canada Tradit
Slide 7: Q3 Results by Segment
Q3 Results by Segment U.S. and Latin America: Favorable Individual Life mortality claims experience; Pre-tax Adjusted Operating Income (Loss), 3Q23 3Q22 favorable Group and Individual Health excluding notable items1 results; Asset-Intensive results reflected continued strong investment spreads; U.
Slide 8: Premium Growth
Premium Growth Good momentum Constant 3Q23 3Q22 % Traditional premium growth Premiums1 YTD YTD Change Currency % Change² U.S. and Latin America $5,111 $4,812 6.2% 6.0% Traditional 6.7% Canada Traditional $904 $911 -0.8% 4.1% 6.8% 6.0% 6.1% EMEA Traditional $1,314 $1,314 - 2.1% 5.2% APAC Traditional
Slide 9: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2,3 Steady income supported by diversified New money rate rose to 6.31% in Q3, portfolio reflecting higher available market yields, and select opportunities in private assets Value opportunities and yield environment and in structur
Slide 10: Investment Portfolio
Investment Portfolio Asset Allocation1 Disciplined approach focuses Investment Grade Bonds Our investment on strong credit underwriting 1.6% 1.5% with emphasis on higher- 3.4% 3.9% 0.2% Mortgage Loans on Real Estate strategy Funds Withheld at Interest quality, diversified fixed income balances ris
Slide 11: 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 5.7% 1.7% well-diversified Retail Disciplined portfolio underwriting and 11.9% Industrial by geogr
Slide 12: CML Office Loan Exposure
CML Office Loan Exposure Office loan portfolio is Portfolio metrics1 Portfolio of primarily suburban focused selective, first Average LTV DSCR Diversified geographically 60% 1.83x loan size lien loans ~$11 M – Invested across 50+ Metropolitan Statistical Originated and Areas (MSAs) Manageable
Slide 13: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position Leverage ratios within our targeted Strong level of liquidity ranges Excess capital position of $1.1 billion Access to $850 million syndicated credit facility and other sources LDTI LDTI $ in billions $ i
Slide 14: Balanced Capital Management
Balanced Capital Management Efficient deployment Balanced approach Effective and Managing capital over the long-term Priority to deploy capital into organic growth and in-force and other balanced Continued success in deploying capital transactions into in-force and other transactions, adding l
Slide 15: Long-Term Business, Long-Term Success
Long-Term Business, Long-Term Success A global leader, differentiated Book value per share (ex-AOCI)1 total return growth2 market position 15-Year 10.0% CAGR 10-Year 9.9% CAGR Diversified platform, well-balanced 5-Year 6.5% CAGR risk profile 10.8% CAGR3 Disciplined underwriter, proactive $146.
Slide 16: Well-Positioned for the Future
Well-Positioned for the Future Very strong Q3 performance, following a strong first half of the year Intermediate term Demonstrated underlying earnings power financial targets: Strong new business momentum across all geographies and business lines 8%-10% EPS1 CAGR Well-positioned in all key
Slide 17: Appendix
Appendix 17
Slide 18: Pre-Tax Income Reconciliation
Pre-Tax Income 3Q23 3Q22 Reconciliation Pre-tax income1 $380 ($77) Investment-related Change in allowance for credit losses and impairments 14 14 Net gains/losses on sale of fixed maturity securities 49 111 Change in market value of certain limited partnerships and other (33) (30) Derivative-related
Slide 19: Reconciliations of Non-GAAP Measures
Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 3Q23 3Q22 Reconciliations U.S. & Latin America Traditional GAAP pre-tax income $ 105 $ (69) Capital (gains) losses, derivatives and other, net - (1) Change in MV of embedded derivatives (2) (7) of Non-GAAP Pre-tax
Slide 20: Reconciliations of Non-GAAP Measures
Reconciliations Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 3Q23 3Q22 Asia Pacific Traditional GAAP pre-tax income $ 134 $ (73) of Non-GAAP Pre-tax adjusted operating income $ 134 $ (73) Notable items (2) 140 Pre-tax adjusted operating income excluding nota
Slide 21: Reconciliations of Non-GAAP Measures
Reconciliations Reconciliation of RGA, Inc. shareholders' equity to RGA, Inc. shareholders' equity excluding AOCI In millions 3Q23 2022 2021 2020 2019 RGA, Inc. shareholders' equity $ 8,063.0 $ 7,081.0 $ 8,180.0 $ 14,352.0 $ 11,601.7 Less effect of AOCI: Accumulated currency translation adjustment (
Slide 22: ©2023 RGA. All rights reserved.
©2023 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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