Net loss of $0.93 per diluted share
Adjusted operating income* of $0.47 per diluted share
Premium growth of 8.3% over the prior-year quarter
ROE 3.4% and adjusted operating ROE* 2.1% for the trailing twelve months
Deployed capital of $130 million into in-force and other transactions
Repurchased $25 million of shares
Global estimated COVID-19 impacts1 of approximately $310 million on a pre-tax basis, or $3.48 per diluted share2 for the first quarter
ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global provider of life reinsurance, reported first quarter net loss of $63 million, or $0.93 per diluted share, compared with net income of $139 million, or $2.03 per diluted share, in the prior-year quarter. Adjusted operating income* totaled $32 million, or $0.47 per diluted share, compared with an adjusted operating loss of $84 million, or $1.24 per diluted share, the year before. Net foreign currency exchange rates had a favorable effect of $0.09 per diluted share on net loss and an immaterial effect on adjusted operating income as compared with the prior year.
|
|
Quarterly Results |
||||||
($ in millions, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
Net premiums |
|
$ |
3,155 |
|
|
$ |
2,914 |
|
Net income (loss) |
|
|
(63 |
) |
|
|
139 |
|
Net income (loss) per diluted share |
|
|
(0.93 |
) |
|
|
2.03 |
|
Adjusted operating income (loss)* |
|
|
32 |
|
|
|
(84 |
) |
Adjusted operating income (loss) per diluted share* |
|
|
0.47 |
|
|
|
(1.24 |
) |
Book value per share |
|
|
137.08 |
|
|
|
177.83 |
|
Book value per share, excluding accumulated other comprehensive income (AOCI)* |
|
|
137.89 |
|
|
|
133.67 |
|
Total assets |
|
|
89,761 |
|
|
|
84,810 |
|
* |
See ‘Use of Non-GAAP Financial Measures’ below |
1 |
|
COVID-19 impact estimates include mortality and morbidity claims of approximately $316 million with offsetting impacts from longevity of approximately $6 million in the quarter. |
2 |
|
Tax effected at 24%. |
In the first quarter, consolidated net premiums totaled $3.2 billion, an increase of 8.3% over last year’s first quarter, with an adverse net foreign currency effect of $47 million. Compared with a strong year-ago period (which included a one-time event), first quarter investment income, excluding spread-based businesses and the value of associated derivatives, decreased 1% to $457 million, and average investment yield decreased to 5.29% in the first quarter from 5.67% in the prior year.
The effective tax rate expense for the quarter on the pre-tax loss was 3.7%. The tax rate expense reflected income earned in higher tax jurisdictions and losses in lower tax jurisdictions, basis adjustments in foreign jurisdictions and adjustments to the valuation allowance.
The adjusted operating effective tax rate for the quarter was 46.1%. The tax rate was above the expected range of 23% to 24% primarily due to income in higher tax jurisdictions, basis adjustments in foreign jurisdictions and adjustments to the valuation allowance.
Anna Manning, President and Chief Executive Officer, commented, “This was a very good start to the year, and despite a meaningful level of COVID-19 mortality claims, many of our businesses performed well, and our investment results were favorable. We continue to see good new business activity both in our organic business and in our global pipelines for in-force transactions.
“On the capital front, we deployed $130 million into in-force and other transactions and repurchased $25 million in common stock. Our balance sheet remains strong, and we ended the quarter with excess capital of approximately $1.0 billion.
“I am proud to announce that once again, and for the 11th year in a row, RGA has been ranked #1 for global business capabilities by NMG in their 2021 global life and health reinsurance report.”
Mark Prichard, CEO of NMG Consulting, said, “If there has been a constant in the Life & Health reinsurance industry over the last decade, it has been RGA’s global Business Capability Index leadership. RGA’s knowledge-led, partnership-driven approach, coupled with its culture of innovation and client focus, remain the cornerstones of its differentiation.”
SEGMENT RESULTS
U.S. and Latin America
|
Quarterly Results |
||||||
($ in millions) |
|
2022 |
|
|
|
2021 |
|
Net premiums |
$ |
1,541 |
|
|
$ |
1,419 |
|
Pre-tax loss |
|
(166 |
) |
|
|
(338 |
) |
Pre-tax adjusted operating loss |
|
(181 |
) |
|
|
(344 |
) |
Financial Solutions
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Asset-Intensive: |
|
|
|
||
Pre-tax income |
$ |
20 |
|
$ |
60 |
Pre-tax adjusted operating income |
|
75 |
|
|
49 |
Capital Solutions: |
|
|
|
||
Pre-tax income |
|
24 |
|
|
23 |
Pre-tax adjusted operating income |
|
24 |
|
|
23 |
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Net premiums |
$ |
304 |
|
$ |
280 |
Pre-tax income |
|
6 |
|
|
24 |
Pre-tax adjusted operating income |
|
5 |
|
|
23 |
Financial Solutions
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Pre-tax income |
$ |
13 |
|
$ |
6 |
Pre-tax adjusted operating income |
|
13 |
|
|
6 |
Europe, Middle East and Africa (EMEA)
|
Quarterly Results |
||||||
($ in millions) |
|
2022 |
|
|
|
2021 |
|
Net premiums |
$ |
451 |
|
|
$ |
438 |
|
Pre-tax loss |
|
(6 |
) |
|
|
(68 |
) |
Pre-tax adjusted operating loss |
|
(6 |
) |
|
|
(68 |
) |
Financial Solutions
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Pre-tax income |
$ |
85 |
|
$ |
60 |
Pre-tax adjusted operating income |
|
79 |
|
|
42 |
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Net premiums |
$ |
650 |
|
$ |
609 |
Pre-tax income |
|
51 |
|
|
41 |
Pre-tax adjusted operating income |
|
51 |
|
|
41 |
Financial Solutions
|
Quarterly Results |
|||||
($ in millions) |
|
2022 |
|
|
|
2021 |
Net premiums |
$ |
43 |
|
|
$ |
53 |
Pre-tax income (loss) |
|
(56 |
) |
|
|
28 |
Pre-tax adjusted operating income |
|
21 |
|
|
|
19 |
Corporate and Other
|
Quarterly Results |
|||||
($ in millions) |
|
2022 |
|
|
|
2021 |
Pre-tax income (loss) |
$ |
(31 |
) |
|
$ |
350 |
Pre-tax adjusted operating income (loss) |
|
(22 |
) |
|
|
94 |
Share Repurchase Authorization
On February 25, 2022, the board of directors authorized a share repurchase program for up to $400 million of outstanding common stock. The authorization was effective immediately and does not have an expiration date. The pace of repurchase activity depends on various factors such as the level of available cash, an evaluation of the costs and benefits associated with alternative uses of excess capital, such as acquisitions and in-force reinsurance transactions, and stock price.
Dividend Declaration
Effective as of May 3, 2022, the board of directors declared a regular quarterly dividend of $0.73, payable May 31, 2022, to shareholders of record as of May 17, 2022.
Earnings Conference Call
A conference call to discuss first quarter results will begin at 10 a.m. Eastern Time on Friday, May 6. Interested parties may access the call by dialing 888-204-4368 (domestic) or 323-994-2093 (international). The access code is 9502707. A live audio webcast of the conference call will be available on the Company’s Investor Relations website at www.rgare.com. A replay of the conference call will be available at the same address for 90 days following the conference call.
The Company has posted to its website an earnings presentation and a Quarterly Financial Supplement that includes financial information for all segments, as well as information on its investment portfolio. Additionally, the Company posts periodic reports, press releases and other useful information on its Investor Relations website.
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 adjusted operating income, on a pre-tax and after-tax basis, better measures the ongoing profitability and underlying trends of the Company’s continuing operations, primarily because that measure excludes substantially all of the effect of net investment related gains and losses, as well as changes in the fair value of certain embedded derivatives and related deferred acquisition costs. These items can be volatile, primarily due to the credit market and interest rate environment, and are not necessarily indicative of the performance of the Company’s underlying businesses. Additionally, adjusted operating income excludes any net gain or loss from discontinued operations, the cumulative effect of any accounting changes, tax reform and other items that management believes are not indicative of the Company’s ongoing operations. The definition of adjusted operating income can vary by company and is not considered a substitute for GAAP net income.
Book value per share excluding the impact of AOCI is a non-GAAP financial measure that management believes is important in evaluating the balance sheet in order to ignore the effects of unrealized amounts primarily associated with mark-to-market adjustments on investments and foreign currency translation.
Adjusted operating income per diluted share is a non-GAAP financial measure calculated as adjusted operating income divided by weighted average diluted shares outstanding. Adjusted operating return on equity is a non-GAAP financial measure calculated as adjusted operating income divided by average stockholders’ equity excluding AOCI. Similar to adjusted operating income, management believes these non-GAAP financial measures better reflect the ongoing profitability and underlying trends of the Company’s continuing operations, they also serve as a basis for establishing target levels and awards under RGA’s management incentive programs.
Reconciliations from GAAP net income, book value per share, net income per diluted share and average stockholders’ equity are provided in the following tables. Additional financial information can be found in the Quarterly Financial Supplement on RGA’s Investor Relations website at www.rgare.com in the “Financial Information” section.
Reinsurance Group of America, Incorporated (RGA), a Fortune 500 company, is among the leading global providers of life reinsurance and financial solutions, with approximately $3.5 trillion of life reinsurance in force and assets of $89.8 billion as of March 31, 2022. Founded in 1973, RGA today is recognized for its deep technical expertise in risk and capital management, innovative solutions, and commitment to serving its clients. With headquarters in St. Louis, Missouri, and operations around the world, RGA delivers expert solutions in individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, facultative underwriting, product development, and financial solutions. To learn more about RGA and its businesses, visit the Company’s website at www.rgare.com.
Cautionary Note Regarding Forward-Looking Statements
This release 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 and growth potential of the Company. Forward-looking statements often contain words and phrases such as “intend,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “should,” “believe” and other similar expressions. Forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements are not a guarantee of future performance and are subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance, and achievements could differ materially from those set forth in, contemplated by or underlying the forward-looking statements.
The effects of the COVID-19 pandemic and the response thereto on economic conditions, the financial markets and insurance risks, and the resulting effects on the Company’s financial results, liquidity, capital resources, financial metrics, investment portfolio and stock price, could cause actual results and events to differ materially from those expressed or implied by forward-looking statements. Further, any estimates, projections, illustrative scenarios or frameworks used to plan for potential effects of the pandemic are dependent on numerous underlying assumptions and estimates that may not materialize. Additionally, numerous other important factors (whether related to, resulting from or exacerbated by the COVID-19 pandemic or otherwise) could also cause results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: (1) adverse changes in mortality, morbidity, lapsation or claims experience, (2) inadequate risk analysis and underwriting, (3) adverse capital and credit market conditions and their impact on the Company’s liquidity, access to capital and cost of capital, (4) changes in the Company’s financial strength and credit ratings and the effect of such changes on the Company’s future results of operations and financial condition, (5) the availability and cost of collateral necessary for regulatory reserves and capital, (6) requirements to post collateral or make payments due to declines in market value of assets subject to the Company’s collateral arrangements, (7) action by regulators who have authority over the Company’s reinsurance operations in the jurisdictions in which it operates, (8) the effect of the Company parent’s status as an insurance holding company and regulatory restrictions on its ability to pay principal of and interest on its debt obligations, (9) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in the Company’s current and planned markets, (10) the impairment of other financial institutions and its effect on the Company’s business, (11) fluctuations in U.S. or foreign currency exchange rates, interest rates, or securities and real estate markets, (12) market or economic conditions that adversely affect the value of the Company’s investment securities or result in the impairment of all or a portion of the value of certain of the Company’s investment securities, that in turn could affect regulatory capital, (13) market or economic conditions that adversely affect the Company’s ability to make timely sales of investment securities, (14) risks inherent in the Company’s risk management and investment strategy, including changes in investment portfolio yields due to interest rate or credit quality changes, (15) the fact that the determination of allowances and impairments taken on the Company’s investments is highly subjective, (16) the stability of and actions by governments and economies in the markets in which the Company operates, including ongoing uncertainties regarding the amount of U.S. sovereign debt and the credit ratings thereof, (17) the Company’s dependence on third parties, including those insurance companies and reinsurers to which the Company cedes some reinsurance, third-party investment managers and others, (18) financial performance of the Company’s clients, (19) the threat of natural disasters, catastrophes, terrorist attacks, epidemics or pandemics anywhere in the world where the Company or its clients do business, (20) competitive factors and competitors’ responses to the Company’s initiatives, (21) development and introduction of new products and distribution opportunities, (22) execution of the Company’s entry into new markets, (23) integration of acquired blocks of business and entities, (24) interruption or failure of the Company’s telecommunication, information technology or other operational systems, or the Company’s failure to maintain adequate security to protect the confidentiality or privacy of personal or sensitive data and intellectual property stored on such systems, (25) adverse litigation or arbitration results, (26) the adequacy of reserves, resources and accurate information relating to settlements, awards and terminated and discontinued lines of business, (27) changes in laws, regulations, and accounting standards applicable to the Company or its business, including Long Duration Targeted Improvement accounting changes and (28) other risks and uncertainties described in this document and in the Company’s other filings with the Securities and Exchange Commission (“SEC”).
Forward-looking statements should be evaluated together with the many risks and uncertainties that affect the Company’s business, including those mentioned in this document and described in the periodic reports the Company files with the SEC. These forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update these forward-looking statements, even though the Company’s situation may change in the future. For a discussion of these risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements, you are advised to see Item 1A - “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as may be supplemented by Item 1A - “Risk Factors” in the Company’s subsequent Quarterly Reports on Form 10-Q.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Adjusted Operating Income (Dollars in millions, except per share data) |
|||||||||||||||
(Unaudited) |
Three Months Ended March 31, |
||||||||||||||
|
2022 |
|
2021 |
||||||||||||
|
|
|
Diluted
|
|
|
|
Diluted
|
||||||||
Net income (loss) |
$ |
(63 |
) |
$ |
(0.93 |
) |
|
$ |
139 |
$ |
2.03 |
||||
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
|
94 |
|
|
|
1.39 |
|
|
|
(179 |
) |
|
|
(2.63 |
) |
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
|
6 |
|
|
|
0.09 |
|
|
|
(1 |
) |
|
|
(0.01 |
) |
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
|
15 |
|
|
|
0.22 |
|
|
|
(54 |
) |
|
|
(0.79 |
) |
Included in interest credited |
|
(13 |
) |
|
|
(0.19 |
) |
|
|
(24 |
) |
|
|
(0.35 |
) |
DAC offset, net |
|
(8 |
) |
|
|
(0.12 |
) |
|
|
9 |
|
|
|
0.13 |
|
Investment (income) loss on unit-linked variable annuities |
|
7 |
|
|
|
0.10 |
|
|
|
1 |
|
|
|
0.01 |
|
Interest credited on unit-linked variable annuities |
|
(7 |
) |
|
|
(0.10 |
) |
|
|
(1 |
) |
|
|
(0.01 |
) |
Interest expense on uncertain tax positions |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
0.03 |
|
Non-investment derivatives and other |
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
0.13 |
|
Tax benefit on uncertain tax positions and tax rate changes |
|
1 |
|
|
|
0.01 |
|
|
|
15 |
|
|
|
0.22 |
|
Adjusted operating income (loss) |
$ |
32 |
|
|
$ |
0.47 |
|
|
$ |
(84 |
) |
|
$ |
(1.24 |
) |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Effective Income Tax Rates (Dollars in millions) |
||||||||||
(Unaudited) |
Three Months Ended March 31, 2022 |
|||||||||
|
Pre-tax Income
|
|
Income Taxes |
|
Effective Tax
|
|||||
GAAP income (loss) |
$ |
(60 |
) |
|
$ |
3 |
|
|
(3.7) % |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
|||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
|
119 |
|
|
|
25 |
|
|
|
|
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
|
8 |
|
|
|
2 |
|
|
|
|
Embedded derivatives: |
|
|
|
|
|
|||||
Included in investment related gains/losses, net |
|
19 |
|
|
|
4 |
|
|
|
|
Included in interest credited |
|
(17 |
) |
|
|
(4 |
) |
|
|
|
DAC offset, net |
|
(10 |
) |
|
|
(2 |
) |
|
|
|
Investment (income) loss on unit-linked variable annuities |
|
9 |
|
|
|
2 |
|
|
|
|
Interest credited on unit-linked variable annuities |
|
(9 |
) |
|
|
(2 |
) |
|
|
|
Interest expense on uncertain tax positions |
|
— |
|
|
|
— |
|
|
|
|
Non-investment derivatives and other |
|
— |
|
|
|
— |
|
|
|
|
Tax benefit on uncertain tax positions and tax rate changes |
|
— |
|
|
|
(1 |
) |
|
|
|
Adjusted operating income |
$ |
59 |
|
|
$ |
27 |
|
|
46.1 |
% |
(1) |
The Company rounds amounts in the financial statements to millions and calculates the effective tax rate from the underlying whole-dollar amounts. Thus certain amounts may not recalculate based on the numbers due to rounding. |
Reconciliation of Consolidated Income before Income Taxes to Pre-tax Adjusted Operating Income
(Dollars in millions) |
|||||||
(Unaudited) |
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Income (loss) before income taxes |
$ |
(60 |
) |
|
$ |
186 |
|
Reconciliation to pre-tax adjusted operating income: |
|
|
|
||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
|
119 |
|
|
|
(228 |
) |
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
|
8 |
|
|
|
(1 |
) |
Embedded derivatives: |
|
|
|
||||
Included in investment related gains/losses, net |
|
19 |
|
|
|
(68 |
) |
Included in interest credited |
|
(17 |
) |
|
|
(30 |
) |
DAC offset, net |
|
(10 |
) |
|
|
12 |
|
Investment (income) loss on unit-linked variable annuities |
|
9 |
|
|
|
1 |
|
Interest credited on unit-linked variable annuities |
|
(9 |
) |
|
|
(1 |
) |
Interest expense on uncertain tax positions |
|
— |
|
|
|
3 |
|
Non-investment derivatives and other |
|
— |
|
|
|
11 |
|
Pre-tax adjusted operating income (loss) |
$ |
59 |
|
|
$ |
(115 |
) |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Income to Pre-tax Adjusted Operating Income (Dollars in millions) |
|||||||||||||||
(Unaudited) |
Three Months Ended March 31, 2022 |
||||||||||||||
|
Pre-tax income
|
|
Capital
|
|
Change in
|
|
Pre-tax adjusted
|
||||||||
U.S. and Latin America: |
|
|
|
|
|
|
|
||||||||
Traditional |
$ |
(166 |
) |
|
$ |
— |
|
|
$ |
(15 |
) |
|
$ |
(181 |
) |
Financial Solutions: |
|
|
|
|
|
|
|
||||||||
Asset-Intensive |
|
20 |
|
|
|
57 |
|
(1) |
|
(2 |
) |
(2) |
|
75 |
|
Capital Solutions |
|
24 |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
Total U.S. and Latin America |
|
(122 |
) |
|
|
57 |
|
|
|
(17 |
) |
|
|
(82 |
) |
Canada Traditional |
|
6 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
5 |
|
Canada Financial Solutions |
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Total Canada |
|
19 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
18 |
|
EMEA Traditional |
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
EMEA Financial Solutions |
|
85 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
79 |
|
Total EMEA |
|
79 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
73 |
|
Asia Pacific Traditional |
|
51 |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
Asia Pacific Financial Solutions |
|
(56 |
) |
|
|
77 |
|
|
|
— |
|
|
|
21 |
|
Total Asia Pacific |
|
(5 |
) |
|
|
77 |
|
|
|
— |
|
|
|
72 |
|
Corporate and Other |
|
(31 |
) |
|
|
9 |
|
|
|
— |
|
|
|
(22 |
) |
Consolidated |
$ |
(60 |
) |
|
$ |
136 |
|
|
$ |
(17 |
) |
|
$ |
59 |
|
(1) |
Asset-Intensive is net of $9 DAC offset. |
|
(2) |
Asset-Intensive is net of $(19) DAC offset. |
(Unaudited) |
Three Months Ended March 31, 2021 |
||||||||||||||||
|
Pre-tax income
|
|
Capital
|
|
Change in
|
|
Pre-tax adjusted
|
||||||||||
U.S. and Latin America: |
|
|
|
|
|
|
|
||||||||||
Traditional |
$ |
(338 |
) |
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
(344 |
) |
||
Financial Solutions: |
|
|
|
|
|
|
|
||||||||||
Asset-Intensive |
|
60 |
|
|
|
55 |
|
(1) |
|
(66 |
) |
(2) |
|
49 |
|
||
Capital Solutions |
|
23 |
|
|
|
— |
|
|
|
— |
|
|
|
23 |
|
||
Total U.S. and Latin America |
|
(255 |
) |
|
|
55 |
|
|
|
(72 |
) |
|
|
(272 |
) |
||
Canada Traditional |
|
24 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
23 |
|
||
Canada Financial Solutions |
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
||
Total Canada |
|
30 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
29 |
|
||
EMEA Traditional |
|
(68 |
) |
|
|
— |
|
|
|
— |
|
|
|
(68 |
) |
||
EMEA Financial Solutions |
|
60 |
|
|
|
(18 |
) |
|
|
— |
|
|
|
42 |
|
||
Total EMEA |
|
(8 |
) |
|
|
(18 |
) |
|
|
— |
|
|
|
(26 |
) |
||
Asia Pacific Traditional |
|
41 |
|
|
|
— |
|
|
|
— |
|
|
|
41 |
|
||
Asia Pacific Financial Solutions |
|
28 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
19 |
|
||
Total Asia Pacific |
|
69 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
60 |
|
||
Corporate and Other |
|
350 |
|
|
|
(256 |
) |
|
|
— |
|
|
|
94 |
|
||
Consolidated |
$ |
186 |
|
|
$ |
(229 |
) |
|
$ |
(72 |
) |
|
$ |
(115 |
) |
(1) |
|
Asset-Intensive is net of $(14) DAC offset. |
(2) |
Asset-Intensive is net of $26 DAC offset. |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Per Share and Shares Data (In millions, except per share data) |
|||||||
(Unaudited) |
Three Months Ended March 31, |
||||||
|
2022 |
|
2021 |
||||
Earnings per share from net income (loss): |
|
|
|
||||
Basic earnings per share |
$ |
(0.93 |
) |
|
$ |
2.04 |
|
Diluted earnings per share (1) |
$ |
(0.93 |
) |
|
$ |
2.03 |
|
|
|
|
|
||||
Diluted earnings per share from adjusted operating income (loss) (1) |
$ |
0.47 |
|
|
$ |
(1.24 |
) |
Weighted average number of common and common equivalent shares outstanding |
|
67,649 |
|
|
|
68,427 |
|
(1) |
As a result of anti-dilutive impact, in periods of a loss, weighted average common shares outstanding (basic) are used in the calculation of diluted earnings per share |
(Unaudited) |
At March 31, |
||||
|
2022 |
|
2021 |
||
Treasury shares |
|
18,323 |
|
|
17,326 |
Common shares outstanding |
|
66,988 |
|
|
67,985 |
Book value per share |
$ |
137.08 |
|
$ |
177.83 |
Book value per share, before impact of AOCI |
$ |
137.89 |
|
$ |
133.67 |
Reconciliation of Book Value Per Share to Book Value Per Share Excluding AOCI |
|||||||
(Unaudited) |
At March 31, |
||||||
|
2022 |
|
2021 |
||||
Book value per share |
$ |
137.08 |
|
|
$ |
177.83 |
|
Less effect of AOCI: |
|
|
|
||||
Accumulated currency translation adjustments |
|
0.06 |
|
|
|
(0.57 |
) |
Unrealized appreciation of securities |
|
(0.13 |
) |
|
|
45.79 |
|
Pension and postretirement benefits |
|
(0.74 |
) |
|
|
(1.06 |
) |
Book value per share, before impact of AOCI |
$ |
137.89 |
|
|
$ |
133.67 |
|
Reconciliation of Stockholders' Average Equity to Stockholders' Average Equity Excluding AOCI (Dollars in millions) |
|||
(Unaudited) |
|
||
Trailing Twelve Months Ended March 31, 2022: |
Average Equity |
||
Stockholders' average equity |
$ |
12,123 |
|
Less effect of AOCI: |
|
||
Accumulated currency translation adjustments |
|
(23 |
) |
Unrealized appreciation of securities |
|
2,928 |
|
Pension and postretirement benefits |
|
(63 |
) |
Stockholders' average equity, excluding AOCI |
$ |
9,281 |
|
Reconciliation of Trailing Twelve Months of Consolidated Net Income to Adjusted Operating Income and Related Return on Equity (Dollars in millions) |
||||||
(Unaudited) |
|
|
Return on
|
|||
Trailing Twelve Months Ended March 31, 2022: |
Income |
|
||||
Net Income |
$ |
415 |
|
|
3.4 |
% |
Reconciliation to adjusted operating income: |
|
|
|
|||
Capital (gains) losses, derivatives and other, net |
|
(96 |
) |
|
|
|
Change in fair value of embedded derivatives |
|
(35 |
) |
|
|
|
Deferred acquisition cost offset, net |
|
13 |
|
|
|
|
Tax expense on uncertain tax positions |
|
(104 |
) |
|
|
|
Adjusted operating income |
$ |
193 |
|
|
2.1 |
% |
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollars in millions) |
||||||
(Unaudited) |
Three Months Ended March 31, |
|||||
|
2022 |
|
2021 |
|||
Revenues: |
|
|
|
|||
Net premiums |
$ |
3,155 |
|
|
$ |
2,914 |
Investment income, net of related expenses |
|
810 |
|
|
|
812 |
Investment related gains (losses), net |
|
(126 |
) |
|
|
302 |
Other revenue |
|
91 |
|
|
|
91 |
Total revenues |
|
3,930 |
|
|
|
4,119 |
Benefits and expenses: |
|
|
|
|||
Claims and other policy benefits |
|
3,225 |
|
|
|
3,192 |
Interest credited |
|
141 |
|
|
|
146 |
Policy acquisition costs and other insurance expenses |
|
355 |
|
|
|
333 |
Other operating expenses |
|
226 |
|
|
|
214 |
Interest expense |
|
42 |
|
|
|
45 |
Collateral finance and securitization expense |
|
1 |
|
|
|
3 |
Total benefits and expenses |
|
3,990 |
|
|
|
3,933 |
Income (loss) before income taxes |
|
(60 |
) |
|
|
186 |
Provision for income taxes |
|
3 |
|
|
|
47 |
Net income (loss) |
$ |
(63 |
) |
|
$ |
139 |
Чистый убыток в размере $0,93 на разводненную акцию
Скорректированный операционный доход* в размере 0,47 доллара США на разводненную акцию
Рост премий на 8,3% по сравнению с предыдущим кварталом
Рентабельность инвестиций 3,4% и скорректированная операционная рентабельность инвестиций* 2,1% за последние двенадцать месяцев
Привлеченный капитал в размере 130 миллионов долларов США в действующие и другие операции
Выкупил акции на сумму 25 миллионов долларов
Глобальные оценочные последствия COVID-191 составили примерно 310 миллионов долларов США до налогообложения, или 3,48 доллара на разводненную акцию2 за первый квартал
СЕНТ-ЛУИС--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), ведущий мировой поставщик услуг по перестрахованию жизни, сообщила о чистом убытке в первом квартале в размере 63 миллионов долларов, или 0,93 доллара на разводненную акцию, по сравнению с чистой прибылью в размере 139 миллионов долларов, или 2,03 доллара на разводненную акцию, в за квартал предыдущего года. Скорректированный операционный доход* составил 32 миллиона долларов, или 0,47 доллара на разводненную акцию, по сравнению с скорректированным операционным убытком в размере 84 миллионов долларов, или 1,24 доллара на разводненную акцию, годом ранее. Чистые курсы обмена иностранной валюты оказали благоприятное влияние на чистый убыток в размере 0,09 доллара США на разводненную акцию и оказали незначительное влияние на скорректированный операционный доход по сравнению с предыдущим годом.
|
|
Quarterly Results |
||||||
($ in millions, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
Net premiums |
|
$ |
3,155 |
|
|
$ |
2,914 |
|
Net income (loss) |
|
|
(63 |
) |
|
|
139 |
|
Net income (loss) per diluted share |
|
|
(0.93 |
) |
|
|
2.03 |
|
Adjusted operating income (loss)* |
|
|
32 |
|
|
|
(84 |
) |
Adjusted operating income (loss) per diluted share* |
|
|
0.47 |
|
|
|
(1.24 |
) |
Book value per share |
|
|
137.08 |
|
|
|
177.83 |
|
Book value per share, excluding accumulated other comprehensive income (AOCI)* |
|
|
137.89 |
|
|
|
133.67 |
|
Total assets |
|
|
89,761 |
|
|
|
84,810 |
|
* |
See ‘Use of Non-GAAP Financial Measures’ below |
1 |
|
COVID-19 impact estimates include mortality and morbidity claims of approximately $316 million with offsetting impacts from longevity of approximately $6 million in the quarter. |
2 |
|
Tax effected at 24%. |
В первом квартале консолидированные чистые премии составили 3,2 миллиарда долларов, увеличившись на 8,3% по сравнению с первым кварталом прошлого года, при этом отрицательный чистый валютный эффект составил 47 миллионов долларов. По сравнению с сильным периодом годичной давности (который включал разовое событие) инвестиционный доход за первый квартал, без учета бизнеса, основанного на спредах, и стоимости связанных с ним деривативов, снизился на 1% до 457 миллионов долларов, а средняя доходность инвестиций снизилась до 5,29% в первом квартале с 5,67% в предыдущем квартале. предыдущий год.
Расход по эффективной налоговой ставке за квартал на убыток до налогообложения составил 3,7%. Расходы по ставке налога отражают доходы, полученные в юрисдикциях с более высоким налогообложением, и убытки в юрисдикциях с более низким налогообложением, корректировки базы в иностранных юрисдикциях и корректировки оценочного резерва.
Скорректированная эффективная операционная налоговая ставка за квартал составила 46,1%. Налоговая ставка оказалась выше ожидаемого диапазона от 23% до 24% в основном из-за дохода в юрисдикциях с более высоким налогообложением, корректировок базы в иностранных юрисдикциях и корректировок оценочного резерва.
Анна Мэннинг, президент и главный исполнительный директор, прокомментировала: “Это было очень хорошее начало года, и, несмотря на значительный уровень заявлений о смертности от COVID-19, многие наши предприятия показали хорошие результаты, а результаты наших инвестиций были благоприятными. Мы по-прежнему наблюдаем хорошую новую деловую активность как в нашем органическом бизнесе, так и в наших глобальных трубопроводах для действующих сделок.
“Что касается капитала, мы вложили 130 миллионов долларов в действующие и другие сделки и выкупили обыкновенные акции на 25 миллионов долларов. Наш баланс остается сильным, и мы завершили квартал с избыточным капиталом примерно в 1,0 миллиарда долларов.
“Я с гордостью сообщаю, что в очередной раз, и уже 11-й год подряд, RGA занимает 1-е место в рейтинге глобальных бизнес-возможностей NMG в своем отчете о глобальном перестраховании жизни и здоровья за 2021 год”.
Марк Причард, генеральный директор NMG Consulting, сказал: “Если за последнее десятилетие в индустрии перестрахования жизни и здоровья что-то и оставалось неизменным, так это лидерство RGA в глобальном индексе деловых возможностей. Основанный на знаниях, основанный на партнерстве подход RGA в сочетании с ее культурой инноваций и ориентацией на клиента остаются краеугольными камнями ее дифференциации ”.
результаты сегмента
США и Латинская Америка
|
Quarterly Results |
||||||
($ in millions) |
|
2022 |
|
|
|
2021 |
|
Net premiums |
$ |
1,541 |
|
|
$ |
1,419 |
|
Pre-tax loss |
|
(166 |
) |
|
|
(338 |
) |
Pre-tax adjusted operating loss |
|
(181 |
) |
|
|
(344 |
) |
Финансовые Решения
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Asset-Intensive: |
|
|
|
||
Pre-tax income |
$ |
20 |
|
$ |
60 |
Pre-tax adjusted operating income |
|
75 |
|
|
49 |
Capital Solutions: |
|
|
|
||
Pre-tax income |
|
24 |
|
|
23 |
Pre-tax adjusted operating income |
|
24 |
|
|
23 |
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Net premiums |
$ |
304 |
|
$ |
280 |
Pre-tax income |
|
6 |
|
|
24 |
Pre-tax adjusted operating income |
|
5 |
|
|
23 |
Финансовые Решения
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Pre-tax income |
$ |
13 |
|
$ |
6 |
Pre-tax adjusted operating income |
|
13 |
|
|
6 |
Европа, Ближний Восток и Африка (EMEA)
|
Quarterly Results |
||||||
($ in millions) |
|
2022 |
|
|
|
2021 |
|
Net premiums |
$ |
451 |
|
|
$ |
438 |
|
Pre-tax loss |
|
(6 |
) |
|
|
(68 |
) |
Pre-tax adjusted operating loss |
|
(6 |
) |
|
|
(68 |
) |
Финансовые Решения
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Pre-tax income |
$ |
85 |
|
$ |
60 |
Pre-tax adjusted operating income |
|
79 |
|
|
42 |
|
Quarterly Results |
||||
($ in millions) |
|
2022 |
|
|
2021 |
Net premiums |
$ |
650 |
|
$ |
609 |
Pre-tax income |
|
51 |
|
|
41 |
Pre-tax adjusted operating income |
|
51 |
|
|
41 |
Финансовые Решения
|
Quarterly Results |
|||||
($ in millions) |
|
2022 |
|
|
|
2021 |
Net premiums |
$ |
43 |
|
|
$ |
53 |
Pre-tax income (loss) |
|
(56 |
) |
|
|
28 |
Pre-tax adjusted operating income |
|
21 |
|
|
|
19 |
Корпоративные и другие
|
Quarterly Results |
|||||
($ in millions) |
|
2022 |
|
|
|
2021 |
Pre-tax income (loss) |
$ |
(31 |
) |
|
$ |
350 |
Pre-tax adjusted operating income (loss) |
|
(22 |
) |
|
|
94 |
Разрешение на Выкуп Акций
25 февраля 2022 года совет директоров одобрил программу обратного выкупа обыкновенных акций на сумму до 400 миллионов долларов США. Разрешение вступило в силу немедленно и не имеет срока действия. Темпы выкупа зависят от различных факторов, таких как уровень доступных денежных средств, оценка затрат и выгод, связанных с альтернативным использованием избыточного капитала, таких как приобретения и действующие операции по перестрахованию, а также цена акций.
Объявление дивидендов
Начиная с 3 мая 2022 года совет директоров объявил регулярные ежеквартальные дивиденды в размере 0,73 доллара США, подлежащие выплате 31 мая 2022 года акционерам record по состоянию на 17 мая 2022 года.
Конференц-связь по доходам
Селекторное совещание для обсуждения результатов первого квартала начнется в 10 утра по восточному времени в пятницу, 6 мая. Заинтересованные стороны могут получить доступ к звонку, набрав 888-204-4368 (внутренний) или 323-994-2093 (международный). Код доступа - 9502707. Прямая аудиотрансляция телефонной конференции будет доступна на веб-сайте Компании по связям с инвесторами по адресу www.rgare.com . Воспроизведение конференц-звонка будет доступно по тому же адресу в течение 90 дней после конференц-звонка.
Компания разместила на своем веб-сайте презентацию о доходах и Ежеквартальное финансовое приложение, включающее финансовую информацию по всем сегментам, а также информацию о своем инвестиционном портфеле. Кроме того, Компания публикует периодические отчеты, пресс-релизы и другую полезную информацию на своем веб-сайте по связям с инвесторами.
Использование финансовых показателей, не относящихся к ОПБУ
RGA использует финансовый показатель, не относящийся к GAAP, называемый скорректированным операционным доходом, в качестве основы для анализа финансовых результатов. Эта мера также служит основой для установления целевых уровней и премий в рамках программ стимулирования руководства RGA. Руководство считает, что скорректированный операционный доход, рассчитанный до налогообложения и после налогообложения, лучше отражает текущую прибыльность и основные тенденции продолжающейся деятельности Компании, прежде всего потому, что этот показатель исключает практически все влияние чистых прибылей и убытков, связанных с инвестициями, а также изменения справедливой стоимости некоторые встроенные производные финансовые инструменты и связанные с ними отложенные затраты на приобретение. Эти статьи могут быть волатильными, в первую очередь из-за ситуации на кредитном рынке и процентных ставок, и не обязательно отражают показатели основных видов деятельности Компании. Кроме того, скорректированный операционный доход исключает любую чистую прибыль или убыток от прекращенной деятельности, совокупный эффект любых изменений в бухгалтерском учете, налоговую реформу и другие статьи, которые, по мнению руководства, не отражают текущую деятельность Компании. Определение скорректированного операционного дохода может варьироваться в зависимости от компании и не считается заменой чистой прибыли по ОПБУ.
Балансовая стоимость на акцию без учета влияния AOCI является финансовым показателем, не относящимся к GAAP, который, по мнению руководства, важен при оценке баланса, чтобы игнорировать влияние нереализованных сумм, в первую очередь связанных с корректировками рыночной цены на инвестиции и пересчетом иностранной валюты.
Скорректированный операционный доход на разводненную акцию представляет собой финансовый показатель, не относящийся к ОПБУ, рассчитываемый как скорректированный операционный доход, деленный на средневзвешенное количество разводненных акций в обращении. Скорректированная операционная рентабельность собственного капитала - это финансовый показатель, не относящийся к GAAP, рассчитываемый как скорректированный операционный доход, деленный на средний собственный капитал акционеров без учета AOCI. Как и скорректированный операционный доход, руководство считает, что эти финансовые показатели, не относящиеся к GAAP, лучше отражают текущую прибыльность и основные тенденции продолжающейся деятельности Компании, они также служат основой для установления целевых уровней и премий в рамках программ стимулирования руководства RGA.
Выверка чистой прибыли по ОПБУ, балансовой стоимости на акцию, чистой прибыли на разводненную акцию и среднего акционерного капитала представлена в следующих таблицах. Дополнительную финансовую информацию можно найти в Ежеквартальном финансовом приложении на веб-сайте RGA по связям с инвесторами по адресу www.rgare.com в разделе “Финансовая информация”.
Reinsurance Group of America, Incorporated (RGA), компания из списка Fortune 500, входит в число ведущих мировых поставщиков услуг по перестрахованию жизни и финансовых решений, с действующим перестрахованием жизни на сумму около 3,5 трлн долларов США и активами в размере 89,8 млрд долларов США по состоянию на 31 марта 2022 года. Основанная в 1973 году, RGA сегодня известна своими глубокими техническими знаниями в области управления рисками и капиталом, инновационными решениями и стремлением обслуживать своих клиентов. Располагая штаб-квартирой в Сент-Луисе, штат Миссури, и операциями по всему миру, RGA предоставляет экспертные решения в области индивидуального перестрахования жизни, индивидуального перестрахования пособий на жизнь, группового перестрахования, медицинского перестрахования, дополнительного андеррайтинга, разработки продуктов и финансовых решений. Чтобы узнать больше о RGA и ее бизнесе, посетите веб-сайт компании по адресу www.rgare.com .
Предостережение В Отношении Прогнозных Заявлений
Этот релиз содержит прогнозные заявления по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года, включая, среди прочего, заявления, касающиеся прогнозов будущих операций, стратегий, доходов, доходов, доходов или убытков, коэффициентов, финансовых показателей и потенциала роста Компании. Прогнозные заявления часто содержат такие слова и фразы, как “намереваться”, “ожидать”, “прогнозировать”, “оценивать”, “прогнозировать”, “предвидеть”, “следует”, “полагать” и другие подобные выражения. Прогнозные заявления основаны на текущих ожиданиях и убеждениях руководства относительно будущих событий и их потенциального влияния на Компанию. Прогнозные заявления не являются гарантией будущих результатов и подвержены рискам и неопределенностям, некоторые из которых невозможно предсказать или оценить количественно. Будущие события и фактические результаты, показатели и достижения могут существенно отличаться от тех, которые изложены, предусмотрены или лежат в основе прогнозных заявлений.
Последствия пандемии COVID-19 и ответных мер на нее для экономических условий, финансовых рынков и страховых рисков, а также вытекающие из этого последствия для финансовых результатов Компании, ликвидности, капитальных ресурсов, финансовых показателей, инвестиционного портфеля и цены акций могут привести к тому, что фактические результаты и события будут существенно отличаться от заявленных или подразумевается в прогнозных заявлениях. Кроме того, любые оценки, прогнозы, иллюстративные сценарии или схемы, используемые для планирования потенциальных последствий пандемии, зависят от многочисленных базовых допущений и оценок, которые могут не оправдаться. Кроме того, множество других важных факторов (будь то в результате или усугубляется COVID-19 пандемией или иное) может также привести результаты и события могут существенно отличаться от выраженных или подразумеваемых в заявлениях прогнозного характера, включая, без ограничения: (1) негативные изменения в смертности, заболеваемости, lapsation или претензии, опыт, (2) риск недостаточной анализа и андеррайтинга, (3) отрицательного капитала и кредитный рынок условия и их влияние на ликвидность компании, доступа к капиталу и стоимости капитала, (4) изменения в финансовой устойчивости и кредитный рейтинг и воздействие таких изменений на будущие результаты деятельности и финансовое состояние, (5) наличия и стоимости залога, необходимого для регулирования резервов и капитала, (6) требования предоставить обеспечение или производить платежи за счет снижения рыночной стоимости имущества, являющегося предметом залога компании по договоренности, (7) действий со стороны регулирующих органов, которые имеют полномочия по компании перестраховочных операций в юрисдикциях, в которых она работает, (8) действие предприятия родительского статуса страхового холдинга и нормативных ограничений на ее способности выплачивать сумму основного долга и проценты по своим долговым обязательствам, (9) общие экономические условия и затянувшийся экономический спад влияет на спрос на страховые и перестраховочные компании текущие и планируемые рынки (10) обесценения других финансовых институтов и его влияние на бизнес компании, (11) колебаний в США или иностранной валюте валютный курс, процентные ставки, или рынке ценных бумаг и недвижимости, (12) рыночных или экономических условиях, которые негативно влияют на ценность компании инвестиционных ценных бумаг, или в результате нарушения всех или части стоимости определенной компании инвестиционные ценные бумаги, которые, в свою очередь, может повлиять на регулятивного капитала, (13) рыночных или экономических условий, которые негативно влияют на способность предприятия своевременно производить продажи инвестиционных ценных бумаг, (14) рисков, присущих компании по управлению рисками и инвестиционная стратегия, в том числе изменения в доходность инвестиционного портфеля за счет процентной ставки и кредитного качества изменений (15) тот факт, что определение надбавки и нарушения принятых на инвестиции компании является весьма субъективным, (16) стабильность и действия правительств и экономик рынков, на которых работает компания, в том числе продолжающейся неопределенности в отношении суммы американского суверенного долга и кредитные рейтинги оного (17) компании в зависимость от третьих сторон, включая те, страховых компаний и перестраховщиков, по которым компания уступает некоторым перестрахования, сторонних инвестиций, менеджеры и др., (18) финансовые показатели деятельности компании клиентам, (19) об угрозе стихийных бедствий, катастроф, террористических актов, эпидемий или пандемий в любой точке мира, где компания и ее клиенты, (20) факторы конкуренции и конкурентов-ответы на компании инициатив (21) разработку и внедрение новых продуктов и распределение возможностей (22) исполнении компании выход на новые рынки (23) интеграция приобретенных блоков бизнес и организаций, (24) перерыва или провал компании по радиосвязи, информационных технологий или других операционных систем, или неспособность поддерживать должный уровень безопасности для защиты конфиденциальности и конфиденциальности личных или конфиденциальных данных и интеллектуальной собственности, хранящиеся в таких системах, (25) Неблагоприятные судебном или арбитражном результаты, (26) достаточность резервов, ресурсов и точная информация, относящаяся к населенным пунктам, награды и расторгнут и прекращен направлений бизнеса (27) изменения в законы, нормативные акты и стандарты бухгалтерского учета, применяемые на данном предприятии или его бизнесе, включая длительного целенаправленного совершенствования бухгалтерского учета и (28) другие риски и неопределенности, описанные в данном документе и в других документах, поданных компанией в Комиссию по ценным бумагам и биржам (“КЦБ”).
Прогнозные заявления должны оцениваться вместе со многими рисками и неопределенностями, которые влияют на бизнес Компании, в том числе упомянутыми в этом документе и описанными в периодических отчетах, которые Компания подает в SEC. Эти прогнозные заявления относятся только к дате, на которую они сделаны. Компания не берет на себя никаких обязательств по обновлению этих прогнозных заявлений, даже несмотря на то, что ситуация в Компании может измениться в будущем. Для обсуждения этих рисков и неопределенностей, которые могут привести к существенному отличию фактических результатов от результатов, содержащихся в прогнозных заявлениях, вам рекомендуется ознакомиться с пунктом 1A - “Факторы риска” в Годовом отчете Компании по форме 10-K за год, закончившийся 31 декабря 2021 года, по состоянию на май быть дополнен пунктом 1A - “Факторы риска” в последующих Ежеквартальных отчетах Компании по Форме 10-Q.
Reinsurance Group of America, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Net Income to Adjusted Operating Income (Dollars in millions, except per share data) |
|||||||||||||||
(Unaudited) |
Three Months Ended March 31, |
||||||||||||||
|
2022 |
|
2021 |
||||||||||||
|
|
|
Diluted
|
|
|
|
Diluted
|
||||||||
Net income (loss) |
$ |
(63 |
) |
$ |
(0.93 |
) |
|
$ |
139 |
$ |
2.03 |
||||
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
|
94 |
|
|
|
1.39 |
|
|
|
(179 |
) |
|
|
(2.63 |
) |
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
|
6 |
|
|
|
0.09 |
|
|
|
(1 |
) |
|
|
(0.01 |
) |
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
|
15 |
|
|
|
0.22 |
|
|
|
(54 |
) |
|
|
(0.79 |
) |
Included in interest credited |
|
(13 |
) |
|
|
(0.19 |
) |
|
|
(24 |
) |
|
|
(0.35 |
) |
DAC offset, net |
|
(8 |
) |
|
|
(0.12 |
) |
|
|
9 |
|
|
|
0.13 |
|
Investment (income) loss on unit-linked variable annuities |
|
7 |
|
|
|
0.10 |
|
|
|
1 |
|
|
|
0.01 |
|
Interest credited on unit-linked variable annuities |
|
(7 |
) |
|
|
(0.10 |
) |
|
|
(1 |
) |
|
|
(0.01 |
) |
Interest expense on uncertain tax positions |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
0.03 |
|
Non-investment derivatives and other |
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
0.13 |
|
Tax benefit on uncertain tax positions and tax rate changes |
|
1 |
|
|
|
0.01 |
|
|
|
15 |
|
|
|
0.22 |
|
Adjusted operating income (loss) |
$ |
32 |
|
|
$ |
0.47 |
|
|
$ |
(84 |
) |
|
$ |
(1.24 |
) |
Reinsurance Group of America, INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated Effective Income Tax Rates (Dollars in millions) |
||||||||||
(Unaudited) |
Three Months Ended March 31, 2022 |
|||||||||
|
Pre-tax Income
|
|
Income Taxes |
|
Effective Tax
|
|||||
GAAP income (loss) |
$ |
(60 |
) |
|
$ |
3 |
|
|
(3.7) % |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
|||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
|
119 |
|
|
|
25 |
|
|
|
|
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
|
8 |
|
|
|
2 |
|
|
|
|
Embedded derivatives: |
|
|
|
|
|
|||||
Included in investment related gains/losses, net |
|
19 |
|
|
|
4 |
|
|
|
|
Included in interest credited |
|
(17 |
) |
|
|
(4 |
) |
|
|
|
DAC offset, net |
|
(10 |
) |
|
|
(2 |
) |
|
|
|
Investment (income) loss on unit-linked variable annuities |
|
9 |
|
|
|
2 |
|
|
|
|
Interest credited on unit-linked variable annuities |
|
(9 |
) |
|
|
(2 |
) |
|
|
|
Interest expense on uncertain tax positions |
|
— |
|
|
|
— |
|
|
|
|
Non-investment derivatives and other |
|
— |
|
|
|
— |
|
|
|
|
Tax benefit on uncertain tax positions and tax rate changes |
|
— |
|
|
|
(1 |
) |
|
|
|
Adjusted operating income |
$ |
59 |
|
|
$ |
27 |
|
|
46.1 |
% |
(1) |
The Company rounds amounts in the financial statements to millions and calculates the effective tax rate from the underlying whole-dollar amounts. Thus certain amounts may not recalculate based on the numbers due to rounding. |
Reconciliation of Consolidated Income before Income Taxes to Pre-tax Adjusted Operating Income
(Dollars in millions) |
|||||||
(Unaudited) |
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Income (loss) before income taxes |
$ |
(60 |
) |
|
$ |
186 |
|
Reconciliation to pre-tax adjusted operating income: |
|
|
|
||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
|
119 |
|
|
|
(228 |
) |
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
|
8 |
|
|
|
(1 |
) |
Embedded derivatives: |
|
|
|
||||
Included in investment related gains/losses, net |
|
19 |
|
|
|
(68 |
) |
Included in interest credited |
|
(17 |
) |
|
|
(30 |
) |
DAC offset, net |
|
(10 |
) |
|
|
12 |
|
Investment (income) loss on unit-linked variable annuities |
|
9 |
|
|
|
1 |
|
Interest credited on unit-linked variable annuities |
|
(9 |
) |
|
|
(1 |
) |
Interest expense on uncertain tax positions |
|
— |
|
|
|
3 |
|
Non-investment derivatives and other |
|
— |
|
|
|
11 |
|
Pre-tax adjusted operating income (loss) |
$ |
59 |
|
|
$ |
(115 |
) |
Reinsurance Group of America, INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Income to Pre-tax Adjusted Operating Income (Dollars in millions) |
|||||||||||||||
(Unaudited) |
Three Months Ended March 31, 2022 |
||||||||||||||
|
Pre-tax income
|
|
Capital
|
|
Change in
|
|
Pre-tax adjusted
|
||||||||
U.S. and Latin America: |
|
|
|
|
|
|
|
||||||||
Traditional |
$ |
(166 |
) |
|
$ |
— |
|
|
$ |
(15 |
) |
|
$ |
(181 |
) |
Financial Solutions: |
|
|
|
|
|
|
|
||||||||
Asset-Intensive |
|
20 |
|
|
|
57 |
|
(1) |
|
(2 |
) |
(2) |
|
75 |
|
Capital Solutions |
|
24 |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
Total U.S. and Latin America |
|
(122 |
) |
|
|
57 |
|
|
|
(17 |
) |
|
|
(82 |
) |
Canada Traditional |
|
6 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
5 |
|
Canada Financial Solutions |
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Total Canada |
|
19 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
18 |
|
EMEA Traditional |
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
EMEA Financial Solutions |
|
85 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
79 |
|
Total EMEA |
|
79 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
73 |
|
Asia Pacific Traditional |
|
51 |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
Asia Pacific Financial Solutions |
|
(56 |
) |
|
|
77 |
|
|
|
— |
|
|
|
21 |
|
Total Asia Pacific |
|
(5 |
) |
|
|
77 |
|
|
|
— |
|
|
|
72 |
|
Corporate and Other |
|
(31 |
) |
|
|
9 |
|
|
|
— |
|
|
|
(22 |
) |
Consolidated |
$ |
(60 |
) |
|
$ |
136 |
|
|
$ |
(17 |
) |
|
$ |
59 |
|
(1) |
Asset-Intensive is net of $9 DAC offset. |
|
(2) |
Asset-Intensive is net of $(19) DAC offset. |
(Unaudited) |
Three Months Ended March 31, 2021 |
||||||||||||||||
|
Pre-tax income
|
|
Capital
|
|
Change in
|
|
Pre-tax adjusted
|
||||||||||
U.S. and Latin America: |
|
|
|
|
|
|
|
||||||||||
Traditional |
$ |
(338 |
) |
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
(344 |
) |
||
Financial Solutions: |
|
|
|
|
|
|
|
||||||||||
Asset-Intensive |
|
60 |
|
|
|
55 |
|
(1) |
|
(66 |
) |
(2) |
|
49 |
|
||
Capital Solutions |
|
23 |
|
|
|
— |
|
|
|
— |
|
|
|
23 |
|
||
Total U.S. and Latin America |
|
(255 |
) |
|
|
55 |
|
|
|
(72 |
) |
|
|
(272 |
) |
||
Canada Traditional |
|
24 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
23 |
|
||
Canada Financial Solutions |
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
||
Total Canada |
|
30 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
29 |
|
||
EMEA Traditional |
|
(68 |
) |
|
|
— |
|
|
|
— |
|
|
|
(68 |
) |
||
EMEA Financial Solutions |
|
60 |
|
|
|
(18 |
) |
|
|
— |
|
|
|
42 |
|
||
Total EMEA |
|
(8 |
) |
|
|
(18 |
) |
|
|
— |
|
|
|
(26 |
) |
||
Asia Pacific Traditional |
|
41 |
|
|
|
— |
|
|
|
— |
|
|
|
41 |
|
||
Asia Pacific Financial Solutions |
|
28 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
19 |
|
||
Total Asia Pacific |
|
69 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
60 |
|
||
Corporate and Other |
|
350 |
|
|
|
(256 |
) |
|
|
— |
|
|
|
94 |
|
||
Consolidated |
$ |
186 |
|
|
$ |
(229 |
) |
|
$ |
(72 |
) |
|
$ |
(115 |
) |
(1) |
|
Asset-Intensive is net of $(14) DAC offset. |
(2) |
Asset-Intensive is net of $26 DAC offset. |
Reinsurance Group of America, INCORPORATED AND SUBSIDIARIES Per Share and Shares Data (In millions, except per share data) |
|||||||
(Unaudited) |
Three Months Ended March 31, |
||||||
|
2022 |
|
2021 |
||||
Earnings per share from net income (loss): |
|
|
|
||||
Basic earnings per share |
$ |
(0.93 |
) |
|
$ |
2.04 |
|
Diluted earnings per share (1) |
$ |
(0.93 |
) |
|
$ |
2.03 |
|
|
|
|
|
||||
Diluted earnings per share from adjusted operating income (loss) (1) |
$ |
0.47 |
|
|
$ |
(1.24 |
) |
Weighted average number of common and common equivalent shares outstanding |
|
67,649 |
|
|
|
68,427 |
|
(1) |
As a result of anti-dilutive impact, in periods of a loss, weighted average common shares outstanding (basic) are used in the calculation of diluted earnings per share |
(Unaudited) |
At March 31, |
||||
|
2022 |
|
2021 |
||
Treasury shares |
|
18,323 |
|
|
17,326 |
Common shares outstanding |
|
66,988 |
|
|
67,985 |
Book value per share |
$ |
137.08 |
|
$ |
177.83 |
Book value per share, before impact of AOCI |
$ |
137.89 |
|
$ |
133.67 |
Reconciliation of Book Value Per Share to Book Value Per Share Excluding AOCI |
|||||||
(Unaudited) |
At March 31, |
||||||
|
2022 |
|
2021 |
||||
Book value per share |
$ |
137.08 |
|
|
$ |
177.83 |
|
Less effect of AOCI: |
|
|
|
||||
Accumulated currency translation adjustments |
|
0.06 |
|
|
|
(0.57 |
) |
Unrealized appreciation of securities |
|
(0.13 |
) |
|
|
45.79 |
|
Pension and postretirement benefits |
|
(0.74 |
) |
|
|
(1.06 |
) |
Book value per share, before impact of AOCI |
$ |
137.89 |
|
|
$ |
133.67 |
|
Reconciliation of Stockholders' Average Equity to Stockholders' Average Equity Excluding AOCI (Dollars in millions) |
|||
(Unaudited) |
|
||
Trailing Twelve Months Ended March 31, 2022: |
Average Equity |
||
Stockholders' average equity |
$ |
12,123 |
|
Less effect of AOCI: |
|
||
Accumulated currency translation adjustments |
|
(23 |
) |
Unrealized appreciation of securities |
|
2,928 |
|
Pension and postretirement benefits |
|
(63 |
) |
Stockholders' average equity, excluding AOCI |
$ |
9,281 |
|
Reconciliation of Trailing Twelve Months of Consolidated Net Income to Adjusted Operating Income and Related Return on Equity (Dollars in millions) |
||||||
(Unaudited) |
|
|
Return on
|
|||
Trailing Twelve Months Ended March 31, 2022: |
Income |
|
||||
Net Income |
$ |
415 |
|
|
3.4 |
% |
Reconciliation to adjusted operating income: |
|
|
|
|||
Capital (gains) losses, derivatives and other, net |
|
(96 |
) |
|
|
|
Change in fair value of embedded derivatives |
|
(35 |
) |
|
|
|
Deferred acquisition cost offset, net |
|
13 |
|
|
|
|
Tax expense on uncertain tax positions |
|
(104 |
) |
|
|
|
Adjusted operating income |
$ |
193 |
|
|
2.1 |
% |
Reinsurance Group of America, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollars in millions) |
||||||
(Unaudited) |
Three Months Ended March 31, |
|||||
|
2022 |
|
2021 |
|||
Revenues: |
|
|
|
|||
Net premiums |
$ |
3,155 |
|
|
$ |
2,914 |
Investment income, net of related expenses |
|
810 |
|
|
|
812 |
Investment related gains (losses), net |
|
(126 |
) |
|
|
302 |
Other revenue |
|
91 |
|
|
|
91 |
Total revenues |
|
3,930 |
|
|
|
4,119 |
Benefits and expenses: |
|
|
|
|||
Claims and other policy benefits |
|
3,225 |
|
|
|
3,192 |
Interest credited |
|
141 |
|
|
|
146 |
Policy acquisition costs and other insurance expenses |
|
355 |
|
|
|
333 |
Other operating expenses |
|
226 |
|
|
|
214 |
Interest expense |
|
42 |
|
|
|
45 |
Collateral finance and securitization expense |
|
1 |
|
|
|
3 |
Total benefits and expenses |
|
3,990 |
|
|
|
3,933 |
Income (loss) before income taxes |
|
(60 |
) |
|
|
186 |
Provision for income taxes |
|
3 |
|
|
|
47 |
Net income (loss) |
$ |
(63 |
) |
|
$ |
139 |