Reinsurance Group Of America, Incorporated · NYSE:RGA

Reinsurance Group Of America — Q2 2022 Earnings Presentation

24 slides from Reinsurance Group Of America's earnings presentation, Aug 5, 2022

  1. Slide 1: 2Q22 Earnings Presentation

    2Q22 Earnings Presentation August 4, 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 Record quarterly operating results  Q2 adjusted operating income of $5.781 per diluted share  Trailing 12 months adjusted operating ROE of 3.3%1; reflecting 7.8%2 of COVID-19 impacts3  Strong earnings from U.S. Traditional, Asia Traditional and Global Financial Solutions (GFS)  Soli

  5. Slide 5: Consolidated Results

    Consolidated Results Pre-tax adjusted Adjusted operating EPS1 Trailing 12 month operating income1  Q2 2022 estimated COVID- adjusted operating ROE1  Q2 2022 results include $11 19 impacts2 of $0.123 per  Estimated COVID-19 million of estimated COVID- diluted share impacts2 of 7.8%3 on trailing 19

  6. Slide 6: Q2 Results by Segment

     U.S. and Latin America: Traditional Q2 Results by Segment results reflected favorable individual mortality experience, and a positive impact from COVID-19; Asset- 2Q22 2Q21 Intensive results reflected favorable Pre-tax Adjusted Operating Income 2Q22 2Q21 COVID-19 COVID-19 overall experience; Capit

  7. Slide 7: Q2 Premiums by Segment

    Q2 Premiums by Segment %  Premium growth of 4.3%, Premiums1 2Q22 2Q21 Change 8.1%2 on a constant currency basis U.S. and Latin America Traditional $1,631 $1,578 3.4%  U.S. and Latin America reflects U.S. and Latin America Asset-Intensive $14 $15 -6.7% solid new business activity Canada Traditional

  8. Slide 8: Non-Spread Investment Results

    Non-Spread Investment Results Investment yield1 New money rate2  Steady income supported by diversified portfolio  New money rate rose to 5.06% in Q2 2022,  Investment yield reflected lower variable benefitting from an increase in both risk-free rates investment income and public credit spreads,

  9. Slide 9: Investment Portfolio

    Investment Portfolio Asset Allocation2  Disciplined approach focuses on Investment Grade strong credit underwriting with 3.8% 1.7% 0.2% Bonds emphasis on higher-quality, diversified 4.2% Mortgage Loans on Real Estate fixed income investments Our investment 4.8% Funds Withheld at Interest  High qua

  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 cycles; 4.6% 1.9% robust infrastructure to protect value in Retail times of stress 11.8% Office Well-diversified by  Disciplined portfolio underwriting and 35

  11. Slide 11: Capital and Liquidity

    Capital and Liquidity Capital Leverage ratios Ample liquidity  Strong balance sheet with a  Consistent leverage ratios  Holding a strong level of stable capital mix over time within our targeted ranges liquidity  Excess capital position of $1.0  Leverage ratios maintained  Access to $850 milli

  12. Slide 12: Balanced Capital Management

    Balanced Capital Management Efficient deployment Balanced approach  Continued strong capital  Priority to deploy capital into deployment in Q2 2022 organic growth and in-force block transactions Effective and  Success over time in deploying capital into in-force blocks  Return to shareholders ba

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

    U.S. General Population Mortality Significantly Reduced Q2 COVID-19 population deaths Excess Population Deaths1 Proportion of COVID-19 Population 180,000 45.00% Deaths Below Age 652 160,000 40.00% 140,000 35.00% 120,000 30.00% 100,000 25.00% 80,000 20.00% 60,000 15.00% 40,000 20,000 10.00% - 5.00% (

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

    U.S. Individual Mortality Claims Experience Favorable Q2 mortality experience with minimal COVID-19 impact  Non-COVID-19 experience was favorable due to both lower frequency and lower average claim size  COVID-19 claim costs before IBNR adjustments were below our expected range of $10 million to $

  15. Slide 15: 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 9.7% CAGR3  Consistent book value growth 5.5% CAGR3 over time, in a range of $140.26 environments $124

  16. Slide 16: Long Duration Targeted Improvements (LDTI)

    Long Duration Targeted Improvements (LDTI) 16

  17. Slide 17: LDTI Key Messages

    LDTI Key Messages  Economics of the business Liability  LDTI reserve methodology leads to reduced earnings volatility from claims  Liabilities move from locked-in assumptions to best estimate; ongoing remain Calculation assumption updates recognized through P&L unchanged  Locked in discount rate

  18. Slide 18: Estimated LDTI Impacts

    Estimated LDTI Impacts December LDTI December Equity (in billions) 31, 2021 Adjustments 31, 2021 As Reported Range1 As Adjusted Retained earnings adjustment primarily Total stockholders’ equity excl. AOCI $ 9.4 (0.5) – (0.8) 8.6 – 8.9 due to impact of AOCI 3.6 (3.2) – (5.2) (1.6) – 0.4 capping net p

  19. Slide 19: Appendix

    APPENDIX 19

  20. Slide 20: Pre-Tax Income (Loss) Reconciliation

    Pre-Tax Income (Loss) Reconciliation  Modest increase in credit allowance 2Q22 2Q21 and investment impairments  Net losses on sale of fixed maturity securities associated with portfolio Pre-tax income (loss)1 $ 254 482 repositioning Investment-related  Change in market value of equity securities

  21. Slide 21: Reconciliations of Non-GAAP Measures

    Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 2Q22 2Q21 U.S. & Latin America Traditional GAAP pre-tax income (loss) $ 209 $ 135 Change in MV of embedded derivatives 1 (19) (1) Pre-tax adjusted operating income $ 190 $ 134

  22. 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 2Q22 2Q21 Asia Pacific Traditional GAAP pre-tax income $ 58 $ (12) Pre-tax adjusted operating income $ 58 $ (12) Asia Pacific Financial Solutions GAAP pre-tax income (loss) $ (

  23. Slide 23: 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 2Q22 2Q21 2021 2020 2019 2018 RGA, Inc. stockholders' equity $ 5,839.0 $ 13,444.0 $ 13,014.0 $ 14,352.0 $ 11,601.7 $ 8,450.6 Less: Unrealized appreciatio

  24. Slide 24: ©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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