Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q4 2022 Earnings Presentation
27 slides from Reinsurance Group Of America's earnings presentation, Feb 3, 2023
Slide 1: 4Q22 Earnings Presentation
4Q22 Earnings Presentation February 2, 2023 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: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Q4 adjusted operating income of $2.991 per diluted share; including adverse foreign currency Solid effects of $0.22 per diluted share Operating Estimated COVID-19 impacts2 of $0.783 per diluted share absorbed Strong earnings from GFS, Asia traditional busine
Slide 5: 2022 Full Year Highlights, Favorable Outlook
2022 Full Year Highlights, Favorable Outlook Record 2022 adjusted operating income of $14.431 per diluted share; including adverse foreign currency effects of $0.53 per diluted share Estimated COVID-19 impacts2 of $5.023 per diluted share absorbed Strong Strong earnings from GFS, Asia traditio
Slide 6: Consolidated Results
Consolidated Results Adjusted operating EPS1 Trailing 12 month Solid operating performance adjusted operating ROE1 in Q4, record results for 2022 Estimated COVID-19 Diverse sources of Q4 2022 estimated COVID- impacts2 of 1.5%3 on trailing earnings by 19 impacts2 of $0.783 per 12 month adjusted
Slide 7: Q4 Results by Segment
Q4 Results by Segment U.S. and Latin America: Traditional results reflected unfavorable individual mortality experience, and favorable 4Q22 4Q21 Individual Health and Group results; Pre-tax Adjusted Operating Income 4Q22 4Q21 COVID-19 claim costs were moderate; COVID-19 COVID-19 Asset-Intensive re
Slide 8: Q4 Global Underwriting Experience
Q4 Global Underwriting Experience Modestly adverse non-COVID-19 results; moderate COVID-19 impact Unfavorable underwriting results in U.S. Individual Mortality – Elevated non-COVID-19 claim costs due to higher frequency; higher general population mortality including an early influenza season that
Slide 9: 2022 Results by Segment
2022 Results by Segment U.S. and Latin America: Traditional results reflected favorable non-COVID- 19 individual mortality experience, and 2022 2021 favorable Individual Health and Group Pre-tax Adjusted Operating Income 2022 2021 results; COVID-19 claim costs were COVID-19 COVID-19 material; Asse
Slide 10: 2022 Full Year Global Underwriting Experience
2022 Full Year Global Underwriting Experience Strong non-COVID-19 results; declining COVID-19 impact Favorable underwriting results in U.S. Individual Mortality – Favorable Non-COVID-19 large claims experience and lower overall frequency – Estimated COVID-19 claim costs of $314 million, concentrat
Slide 11: Q4 Premiums
Q4 Premiums Strong growth on a constant currency basis Quarterly Premium Growth 4Q22 4Q21 % Constant Currency Premiums1 QTD QTD Change % 12% Change² U.S. and Latin America 9.9% 10.1% $1,778 $1,697 4.8% 4.7% Traditional 10% 8.3% U.S. and Latin America Asset- $24 $13 84.6% 84.6% Intensive 8% 8.1% Cana
Slide 12: 2022 Premiums
2022 Premiums Strong momentum on a constant currency basis Annual Premium Growth Constant Currency % Premiums1 2022 2021 % Change Change² 12% U.S. and Latin America 10% $6,590 $6,244 5.5% 5.5% Traditional 8.8% 8.4% U.S. and Latin America Asset- $66 $55 20.0% 20.0% 8% Intensive 7.1% 7.0% Canada Tradi
Slide 13: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2 Steady income supported by diversified portfolio New money rate remains strong at 5.05% VII moderating after accelerated activity earlier Change consistent with available market yields in 2022 Investment Yield1 New Money Rate2 6
Slide 14: Investment Portfolio
Investment Portfolio Asset Allocation2 Disciplined approach focuses on 1.5% Investment Grade Bonds 1.7% 0.2% strong credit underwriting with 3.2% Mortgage Loans on Real Estate emphasis on higher-quality, 4.1% Funds Withheld at Interest diversified fixed income 4.2% Short-Term/Cash Equivalents Our
Slide 15: 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% 1.9% robust infrastructure designed to Retail protect value in times of stress 11.4% 34.4% Office Well-diversified by Disciplined portfolio unde
Slide 16: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position Leverage ratios within our Strong level of liquidity includes Excess capital position of $1.2 billion targeted ranges proceeds from recent Slightly elevated following the subordinated debentures September
Slide 17: 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 18: 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 15-Year 10.0% CAGR diversification of earnings 10-Year 9.9% CAGR sources and global platform 5-Year 6.5% CAGR Consistent book value growth 3-Year 4.7% CAGR over time, in a range of
Slide 19: Key Messages
Key Messages Differentiated and valuable global franchise Well- A leading market position; deep technical expertise Making financial Positioned to Deliver Strong culture of collaboration, creativity, and integrity protection Attractive transaction and organic pipelines, broad-based across ri
Slide 20: Long Duration Targeted Improvements (LDTI)
Long Duration Targeted Improvements (LDTI) 20
Slide 21: Estimated LDTI Impacts
Estimated LDTI Impacts September LDTI September Equity (in billions) 30, 2022 Adjustments 30, 2022 As Reported Range1 As Adjusted Total stockholders’ equity excl. AOCI $ 9.6 (0.8) – (0.5) 8.8 – 9.1 AOCI (6.0) 2.1 – 4.1 (3.9) – (1.9) Total stockholders’ equity 3.6 1.6 – 3.3 5.2 – 6.9 LDTI adjustmen
Slide 22: Appendix
APPENDIX 22
Slide 23: Pre-Tax Income (Loss) Reconciliation
Pre-Tax Income (Loss) Reconciliation Decrease in credit allowance 4Q22 4Q21 and investment impairments due to portfolio sales and market conditions Pre-tax income (loss)1 $ 271 57 Net losses on sale of fixed Investment-related maturity securities associated Change in allowance for credit losses
Slide 24: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 4Q22 4Q21 YTD 2022 YTD 2021 U.S. & Latin America Traditional GAAP pre-tax income (loss) $ 21 $ (211) $ 268 $ (540) 1 Capital (gains) losses, derivatives and other, net 1 - - -
Slide 25: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 4Q22 4Q21 YTD 2022 YTD 2021 Asia Pacific Traditional GAAP pre-tax income $ 67 $ 57 $ 294 $ (10) Pre-tax adjusted operating income $ 67 $ 57 $ 294 $ (10) Asia Pacific Financial
Slide 26: 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 2022 2021 2020 2019 2018 RGA, Inc. stockholders' equity $ 4,145.0 $ 13,014.0 $ 14,352.0 $ 11,601.7 $ 8,450.6 Less: Unrealized appreciation (depreciation)
Slide 27: ©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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