Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q4 2023 Earnings Presentation
24 slides from Reinsurance Group Of America's earnings presentation, Feb 2, 2024
Slide 1: 4Q23 Earnings Presentation
4Q23 Earnings Presentation Reinsurance Group of America, Incorporated 02.01.2024 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: Fourth Quarter Key Messages
Fourth Quarter Key Messages Strong overall Active and balanced Favorable investment performance and capital management results momentum Q4 adjusted operating income Capital deployment of $346 Rising portfolio book yield of $4.731 per diluted share million for the quarter into in- supporting hi
Slide 5: 2023 Full Year Key Messages
2023 Full Year Key Messages Very strong performance Favorable outlook Record adjusted operating income of $19.881 Strong business momentum continuing per diluted share across markets and product lines Adjusted operating ROE, excluding notable Increased earnings run rate and ROE items of 14.4
Slide 6: Consolidated Results
Consolidated Results Earnings strength; active and balanced capital management Quarterly adjusted Full year adjusted Trailing 12 month operating EPS1 operating EPS1 adjusted operating ROE1 14.5% 14.4% $19.88 $19.88 12.5% $16.40 10.5% $13.69 $4.60 $4.73 $4.73 $3.91 4Q22 4Q23 4Q22 ex 4Q23 ex 2022 2023
Slide 7: Q4 Results by Segment
Q4 Results by Segment U.S. and Latin America: Traditional results reflected favorable Group and Individual Health experience and slightly unfavorable experience and client reporting adjustments in Individual Life, which had a larger unfavorable financial impact due to Pre-tax Adjusted Operating In
Slide 8: 2023 Results by Segment
2023 Results by Segment U.S. and Latin America: Traditional results reflected favorable in-force management actions, the impact of higher yields and favorable Individual Health and Group experience; Individual Life experience was Pre-tax Adjusted Operating Income (Loss), favorable, however, the mi
Slide 9: Premium Growth
Premium Growth Good momentum Constant % Traditional premium growth Premiums1 2023 2022 Change Currency % Change² U.S. and Latin America $7,023 $6,590 6.6% 6.4% Traditional 6.7% Canada Traditional $1,215 $1,219 -0.3% 3.4% 6.8% 5.9% 6.1% EMEA Traditional $1,775 $1,736 2.2% 3.0% 5.2% APAC Traditional $
Slide 10: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2,3 Steady income supported by diversified Q4 new money rate rose to 6.65%, portfolio reflecting higher allocation to private assets in the quarter Value opportunities and yield environment support portfolio yield 6.65% 6.31% 6.09%
Slide 11: Investment Portfolio
Investment Portfolio Asset allocation1,3 Disciplined approach focuses Investment Grade Bonds Our investment on strong credit underwriting 1.5% 1.4% with emphasis on higher- 3.2% 3.9% 0.2% Mortgage Loans on Real Estate strategy Funds Withheld at Interest quality, diversified fixed income balances r
Slide 12: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Experienced internal team has managed through multiple real estate cycles; utilizes Commercial mortgage investment by property type1 High quality, downcycle playbook 5.5% 1.8% well-diversified Retail Disciplined portfolio underwriting and resulting metrics provide
Slide 13: 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 63% 1.85x loan size lien loans ~$11 M – Invested across 50+ Metropolitan Statistical Originated and Areas (MSAs) Manageable
Slide 14: 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 $1.0 billion Access to $850 million syndicated credit facility and other sources LDTI LDTI $ in billions $ i
Slide 15: Capital Management
Capital Management Strong deployment Balanced approach Active and Managing capital over the long-term Priority to deploy capital into organic growth and in-force transactions balanced Record year in deploying capital into in- force transactions, adding expected long-term value to RGA Return
Slide 16: 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 10.4% CAGR Diversified platform, well-balanced risk profile $146.22 $144.01 Disciplined underwriter, proactive $114.02 risk manager Lo
Slide 17: Value of Business Subject to LDTI
Value of Business Subject to LDTI Substantial expected unrealized underwriting margins exist in the in- force LDTI business across all regions ~$27 billion Increase primarily due to new business (over $2 billion) written during the year As of December 31, 2023 The amount does not include signi
Slide 18: Updated Financial Targets
Updated Financial Targets Investor Pre-tax Adjusted Operating Income Updated Intermediate Day Run (Loss)1 Run Rate Term CAGR Rate U.S. and Latin America Traditional $280-310 $340-380 Well- 4-7% U.S. and Latin America Financial Solutions $335-375 $370-410 positioned in Canada Traditional $125-140 $12
Slide 19: Appendix
Appendix 19
Slide 20: Pre-Tax Income Reconciliation
Pre-Tax Income 4Q23 4Q22 Reconciliation Pre-tax income1 $164 381 Investment-related Change in allowance for credit losses and impairments 2 (5) Net gains/losses on sale of fixed maturity securities 84 33 Change in market value of certain limited partnerships and other (15) 1 Derivative-related Embed
Slide 21: Reconciliations of Non-GAAP Measures
Reconciliations Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 4Q23 4Q22 YTD 2023 YTD 2022 U.S. & Latin America Traditional GAAP pre-tax income $ 30 $ 114 $ 318 $ 195 of Non-GAAP Capital (gains) losses, derivatives and other, net (1) 1 (1) - Change in MV of em
Slide 22: Reconciliations of Non-GAAP Measures
Reconciliations Reconciliation of GAAP pre-tax income to pre-tax adjusted operating income In millions 4Q23 4Q22 YTD 2023 YTD 2022 Asia Pacific Traditional GAAP pre-tax income $ 70 $ 100 $ 372 $ 194 of Non-GAAP Capital (gains) losses, derivatives and other, net 1 - 1 - Pre-tax adjusted operating inc
Slide 23: Reconciliations of Non-GAAP Measures
Reconciliations Reconciliation of RGA, Inc. shareholders' equity to RGA, Inc. shareholders' equity excluding AOCI In millions 2023 2022 2021 2020 2019 RGA, Inc. shareholders' equity $ 9,081.0 $ 7,081.0 $ 8,180.0 $ 14,352.0 $ 11,601.7 Less effect of AOCI: Accumulated currency translation adjustment 6
Slide 24: ©2024 RGA. All rights reserved.
©2024 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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