Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q2 2023 Earnings Presentation
21 slides from Reinsurance Group Of America's earnings presentation, Aug 3, 2023
Slide 1: 2Q23 Earnings Presentation
2Q23 EARNINGS PRESENTATION Reinsurance Group of America, Incorporated August 3, 2023
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: Second Quarter Key Messages
Second Quarter Key Messages Q2 adjusted operating income of $4.401 per diluted share Strong Strong earnings across most regions and business lines Operating Favorable U.S. mortality experience Performance Strong organic new business momentum Capital deployment of $190 million for the quart
Slide 5: Consolidated Results
Consolidated Results Adjusted operating EPS1 Trailing 12 month Continued earnings strength adjusted operating ROE1 and momentum 13.0% ROE excluding notable items Strong operating 13.0% performance across products $4.67 10.9% $4.40 8.6% 7.2% and geographies 2Q22 2Q23 2Q22 2Q22 ex 2Q23 2Q23 ex Not
Slide 6: Q2 Results by Segment
Q2 Results by Segment U.S. and Latin America: Favorable Individual Mortality experience, the impact of which was moderated under LDTI; Pre-tax Adjusted Operating Income (Loss)1 2Q23 2Q22 Favorable Group and Individual Health results; Partially offset by one-time items; Asset-Intensive results refl
Slide 7: Traditional Premium Growth
Traditional Premium Growth Good momentum Traditional Premium Growth Constant % Currency Premiums1 2Q23 YTD 2Q22 YTD Change % Change² U.S. and Latin America $3,365 $3,172 6.1% 5.9% Traditional 6.7% 6.8% 5.8% Canada Traditional $602 $618 -2.6% 3.2% 5.2% 6.1% EMEA Traditional $867 $878 -1.3% 4.1% 3.3%
Slide 8: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2,3 Lower reported yield as VII contributed less than New money rate rose to 6.09% in Q2, reflecting in prior quarter, primarily in limited partnerships higher available market yields, select opportunities in structured securities, an
Slide 9: Investment Portfolio
Investment Portfolio Disciplined approach focuses on strong Asset Allocation1 credit underwriting with emphasis on 1.6% 1.4% Investment Grade Bonds higher-quality, diversified fixed income 3.2% 0.2% Mortgage Loans 3.7% Funds Withheld at assets 4.2% Interest High Yield Bonds Our investment Fixed
Slide 10: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Experienced team has managed through Commercial Mortgage multiple real estate cycles; utilizes downcycle Investment by Property Type1 playbook, aligned incentives 5.6% 1.8% Retail Disciplined portfolio underwriting and resulting metrics provide significant expecte
Slide 11: CML Office Loan Exposure
CML Office Loan Exposure Office loan portfolio is primarily suburban Portfolio Metrics1 focused Portfolio of Diversified LTV DSCR Average Loan Size selective, first geographically 57% 1.85x ~$11 million lien loans – Invested across 50+ Metropolitan Statistical Areas (MSAs) ~$1.0 billion in offic
Slide 12: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position Leverage ratios within our Strong level of liquidity Excess capital position of $1.2 billion targeted ranges Access to $850 million syndicated Slightly elevated following the credit facility and other s
Slide 13: 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 and into in-force and other transactions, other transactions adding long-term value to RGA
Slide 14: Long-Term Business, Long-Term Success
Long-Term Business, Long-Term Success Book Value per Share (ex-AOCI)1 Total Return Growth2 15-Year 10.0% CAGR A global leader, differentiated market 10-Year 9.9% CAGR position 5-Year 6.5% CAGR Diversified platform, well-balanced 10.5% CAGR3 risk profile $146.22 $138.99 Disciplined underwriter,
Slide 15: Well-Positioned for the Future
Well-Positioned for the Future Strong Q2 performance, following a very strong Q1 New business activity momentum across all geographies and business lines Intermediate term financial targets: Well-positioned in all key markets Benefits of global scale and diversification proven through financ
Slide 16: Appendix
APPENDIX
Slide 17: Pre-Tax Income Reconciliation
Pre-Tax Income Reconciliation 2Q23 2Q22 Net losses on sale of fixed maturity securities primarily Pre-tax income1 $ 265 $ 147 associated with portfolio repositioning Investment-related Change in income from Change in allowance for credit losses and impairments 5 16 embedded derivatives was Net g
Slide 18: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 2Q23 2Q22 U.S. & Latin America Traditional GAAP pre-tax income $ 62 $ 90 Change in MV of embedded derivatives 1 (19) Pre-tax adjusted operating income $ 63 $ 71 U.S. & Latin Am
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 2Q23 2Q22 Asia Pacific Traditional GAAP pre-tax income $ 89 $ 59 Pre-tax adjusted operating income $ 89 $ 59 Asia Pacific Financial Solutions GAAP pre-tax income (loss) $ 20 $
Slide 20: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of RGA, Inc. shareholders' equity to RGA, Inc. shareholders' equity excluding AOCI In millions 2Q23 2022 2021 2020 2019 RGA, Inc. shareholders' equity $ 7,805.0 $ 7,081.0 $ 8,181.0 $ 14,352.0 $ 11,601.7 Less effect of AOCI: Accumulated currency tra
Slide 21: Reinsurance of America, this publication is Group
©2023 RGA. All rights reserved. No part of this publication may be reproduced in any form without the prior permission of RGA. The information inReinsurance this publication isGroup of America, for the exclusive, internalIncorporated use of the recipient and may not be relied upon by any other party
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