- Net income of $2.03 per diluted share
- Adjusted operating loss* of $1.24 per diluted share
- ROE 5.2% and adjusted operating ROE* 3.7% for the trailing
twelve months
- Global estimated COVID-19 claim costs of approximately $485
million for the first quarter
- Accounting correction for limited partnership investments had a
favorable effect of approximately $1.87 per diluted share on net
income and $1.07 per diluted share on adjusted operating loss
Reinsurance Group of America, Incorporated (NYSE: RGA), a
leading global provider of life reinsurance, reported first quarter
net income of $139 million, or $2.03 per diluted share, compared
with a net loss of $88 million, or $1.41 per diluted share, in the
prior-year quarter. Adjusted operating loss* totaled $84 million,
or $1.24 per diluted share, compared with adjusted operating income
of $89 million, or $1.41 per diluted share, the year before. Net
foreign currency exchange rates had a favorable effect of $0.03 per
diluted share on net income and $0.01 per diluted share on adjusted
operating loss as compared with the prior year.
Quarterly Results
($ in millions, except per share
data)
2021
2020
Net premiums
$
2,914
$
2,819
Net income (loss)
139
(88
)
Net income (loss) per diluted share
2.03
(1.41
)
Adjusted operating income (loss)*
(84
)
89
Adjusted operating income (loss) per
diluted share*
(1.24
)
1.41
Book value per share
177.83
150.88
Book value per share, excluding
accumulated other comprehensive income (AOCI)*
133.67
132.55
Total assets
84,810
75,654
*
See ‘Use of Non-GAAP Financial Measures’
below
First quarter results reflected approximately $474 million of
estimated COVID-19 impacts. On a per diluted share basis, the
estimated COVID-19 impacts, which includes mortality and morbidity
claims with offsetting impacts from longevity, were approximately
$5.31.
In the first quarter, consolidated net premiums totaled $2.9
billion, an increase of 3% over last year’s first quarter, with a
favorable net foreign currency effect of $78 million. Compared with
the year-ago period, excluding spread-based businesses and the
value of associated derivatives, first quarter investment income
increased significantly to $463 million and average investment
yield increased to 5.67% in the first quarter from 4.08% in the
prior year. This reflects higher variable investment income as a
result of a correction of accounting for limited partnership
investments of $92 million related to prior years (see “Accounting
Correction” for more details). Additionally, the first quarter
reflects strong variable investment income from limited partnership
investments.
The effective tax rate on pre-tax income was 25.3% for the first
quarter. The effective tax rate benefit on pre-tax adjusted
operating loss was 26.9% for the first quarter. The effective rate
was above expectations due to the geographical mix of earnings
which resulted in a higher-than-expected quarterly tax rate.
Anna Manning, President and Chief Executive Officer, commented,
“Our first quarter was negatively impacted by a significant level
of COVID-19 mortality claims in a range of geographies. Beyond the
effect of COVID-19, our results were solid and continued to show
resilience. Our underlying earnings power remains strong as a
number of our segments performed well, and we deployed $100 million
into in-force transactions.
“Our balance sheet remains strong, and we ended the quarter with
excess capital of approximately $1.2 billion. While we expect our
results to continue to reflect additional COVID-19 claims, we
expect that impact to diminish in the coming quarters, and believe
that our strong financial condition and global business platform
will deliver improved results as the year progresses.”
SEGMENT RESULTS
U.S. and Latin America
Traditional
Quarterly Results
($ in millions)
2021
2020
Net premiums
$
1,419
$
1,373
Pre-tax loss
(338
)
(62
)
Pre-tax adjusted operating loss
(344
)
(55
)
- Results reflected approximately $358 million of COVID-19 claim
costs.
- Group and Individual Health experience was favorable.
- Strong variable investment income due to favorable limited
partnership performance.
Financial Solutions
Quarterly Results
($ in millions)
2021
2020
Asset-Intensive:
Pre-tax income (loss)
$
60
$
(38
)
Pre-tax adjusted operating income
49
43
Capital Solutions:
Pre-tax income
23
23
Pre-tax adjusted operating income
23
23
- Asset-Intensive results were modestly below the expected run
rate, due to unfavorable policyholder experience.
- Capital Solutions results were in line with expectations.
Canada
Traditional
Quarterly Results
($ in millions)
2021
2020
Net premiums
$
280
$
260
Pre-tax income
24
23
Pre-tax adjusted operating income
23
36
- Foreign currency exchange rates had a favorable effect of $16
million on net premiums.
- Results reflected approximately $26 million of COVID-19 claim
costs.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and pre-tax adjusted operating income.
Financial Solutions
Quarterly Results
($ in millions)
2021
2020
Pre-tax income
$
6
$
3
Pre-tax adjusted operating income
6
3
- Results reflected favorable longevity experience, believed to
be related to COVID-19.
- Foreign currency exchange rates had an immaterial effect on
pre-tax income and pre-tax adjusted operating income.
Europe, Middle East and Africa (EMEA)
Traditional
Quarterly Results
($ in millions)
2021
2020
Net premiums
$
438
$
390
Pre-tax income (loss)
(68)
17
Pre-tax adjusted operating income
(loss)
(68)
17
- Foreign currency exchange rates had a favorable effect of $26
million on net premiums.
- Results reflected approximately $98 million of COVID-19 claim
costs.
- Foreign currency exchange rates had an adverse effect of $5
million on pre-tax loss and pre-tax adjusted operating loss.
Financial Solutions
Quarterly Results
($ in millions)
2021
2020
Pre-tax income
$
60
$
30
Pre-tax adjusted operating income
42
36
- Results reflected the negative effects of model updates and
lower than expected COVID-19 impact on longevity experience due to
longer reporting lags.
- Foreign currency exchange rates had a favorable effect of $5
million on pre-tax income and $4 million on pre-tax adjusted
operating income.
Asia Pacific
Traditional
Quarterly Results
($ in millions)
2021
2020
Net premiums
$
609
$
636
Pre-tax income
41
24
Pre-tax adjusted operating income
41
24
- Net premiums decreased over the prior year, reflecting a 3%
increase in Asia, offset by a 31% decline in Australia.
- Foreign currency exchange rates had a favorable effect of $29
million on net premiums.
- Results reflected favorable underwriting experience in Asia,
and Australia reported break even results.
- Foreign currency exchange rates had a favorable effect of $1
million on pre-tax income and pre-tax adjusted operating
income.
Financial Solutions
Quarterly Results
($ in millions)
2021
2020
Net premiums
$
53
$
74
Pre-tax income (loss)
28
(25
)
Pre-tax adjusted operating income
19
10
- Results reflected organic growth and favorable experience on
existing treaties.
- Foreign currency exchange rates had a favorable effect of $1
million on pre-tax income and an immaterial effect on pre-tax
adjusted operating income.
Corporate and Other
Quarterly Results
($ in millions)
2021
2020
Pre-tax income (loss)
$
350
$
(91
)
Pre-tax adjusted operating income
(loss)
94
(19
)
- Pre-tax income reflected a one-time adjustment of $162 million
associated with prior periods that includes $92 million to correct
accounting for equity method limited partnerships to reflect
unrealized gains in investment income that were previously
reflected in accumulated other comprehensive income, in addition to
$70 million reflected in investment related gains/losses associated
with unrealized gains on cost method limited partnerships.
- Pre-tax income reflected $144 million of capital gains
associated with portfolio repositioning.
- Pre-tax adjusted operating income reflected the one-time
adjustment of $92 million discussed above to correct accounting for
equity method limited partnerships.
- Pre-tax adjusted operating income also reflected lower overall
expenses.
Dividend Declaration
Effective as of May 6, 2021, the board of directors declared a
regular quarterly dividend of $0.70, payable June 1, 2021, to
shareholders of record as of May 18, 2021.
Accounting Correction
During the three-months ended March 31, 2021, the Company
reclassified approximately $92 million of pre-tax unrealized gains
from AOCI to investment income associated with investments in
limited partnerships and private equity funds for which it utilizes
the equity method of accounting. The unrealized gains should have
been recognized directly in investment income in the same prior
periods they were reported by the investees. In addition, the
Company recorded approximately $70 million of pre-tax investment
related gains associated with investments in limited partnerships
considered to be investment companies in order to adjust the
carrying value from cost less impairments to a fair value approach.
If these adjustments were recorded in the years they were reported
by the investees, the Company estimates that it would have
recognized approximately $102 million, $(2) million, $1 million and
$10 million of pre-tax income in the years ended December 31 2020,
2019, 2018 and 2017, respectively.
Earnings Conference Call
A conference call to discuss first quarter results will begin at
11 a.m. Eastern Time on Friday, May 7. Interested parties may
access the call by dialing 800-458-4121 (domestic) or 323-794-2093
(international). The access code is 4329984. 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.
About RGA
Reinsurance Group of America, Incorporated (RGA), a Fortune 500
company, is among the leading global providers of life reinsurance
and financial solutions, with approximately $3.4 trillion of life
reinsurance in force and assets of $84.8 billion as of March 31,
2021. 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, (28) the effects of the Tax Cuts and Jobs
Act of 2017 may be different than expected and (29) 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, 2019, 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,
2021
2020
Diluted
Earnings Per Share
Diluted
Earnings Per Share
Net income (loss)
$
139
$
2.03
$
(88
)
$
(1.41
)
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, included in investment related gains/losses, net
(179
)
(2.63
)
(51
)
(0.81
)
Capital (gains) losses on funds withheld,
included in investment income, net of related expenses
(1
)
(0.01
)
(2
)
(0.03
)
Embedded derivatives:
Included in investment related
gains/losses, net
(54
)
(0.79
)
283
4.49
Included in interest credited
(24
)
(0.35
)
9
0.14
DAC offset, net
9
0.13
(69
)
(1.09
)
Investment (income) loss on unit-linked
variable annuities
1
0.01
13
0.21
Interest credited on unit-linked variable
annuities
(1
)
(0.01
)
(13
)
(0.21
)
Interest expense on uncertain tax
positions
2
0.03
3
0.05
Non-investment derivatives and other
9
0.13
(2
)
(0.03
)
Uncertain tax positions and other tax
related items
15
0.22
6
0.10
Adjusted operating income (loss)
$
(84
)
$
(1.24
)
$
89
$
1.41
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Reconciliation of Consolidated
Effective Income Tax Rates
(Dollars in thousands)
(Unaudited)
Three Months Ended March 31,
2021
Pre-tax Income
(loss)
Income Taxes
Effective Tax
Rate
GAAP income
$
185,988
$
47,002
25.3
%
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, included in investment related gains/losses, net
(228,409
)
(47,707
)
Capital (gains) losses on funds withheld,
included in investment income, net of related expenses
(523
)
(110
)
Embedded derivatives:
Included in investment related
gains/losses, net
(68,620
)
(14,410
)
Included in interest credited
(29,649
)
(6,226
)
DAC offset, net
12,210
2,564
Investment (income) loss on unit-linked
variable annuities
991
208
Interest credited on unit-linked variable
annuities
(991
)
(208
)
Interest expense on uncertain tax
positions
2,717
571
Non-investment derivatives and other
10,888
2,286
Uncertain tax positions and other tax
related items
—
(15,057
)
Adjusted operating income (loss)
$
(115,398
)
$
(31,087
)
26.9
%
Reconciliation of Consolidated
Income before Income Taxes to Pre-tax Adjusted Operating Income
(Dollars in millions)
(Unaudited)
Three Months Ended March 31,
2021
2020
Income (loss) before income taxes
$
186
$
(96
)
Reconciliation to pre-tax adjusted
operating income:
Capital (gains) losses, derivatives and
other, included in investment related gains/losses, net
(228
)
(68
)
Capital (gains) losses on funds withheld,
included in investment income, net of related expenses
(1
)
(2
)
Embedded derivatives:
Included in investment related
gains/losses, net
(68
)
358
Included in interest credited
(30
)
12
DAC offset, net
12
(87
)
Investment (income) loss on unit-linked
variable annuities
1
16
Interest credited on unit-linked variable
annuities
(1
)
(16
)
Interest expense on uncertain tax
positions
3
4
Non-investment derivatives and other
11
(3
)
Pre-tax adjusted operating income
(loss)
$
(115
)
$
118
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,
2021
Pre-tax income
(loss)
Capital
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax adjusted
operating
income (loss)
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.
(Unaudited)
Three Months Ended March 31,
2020
Pre-tax income
(loss)
Capital
(gains) losses,
derivatives
and other, net
Change in
value of
embedded
derivatives, net
Pre-tax adjusted
operating
income (loss)
U.S. and Latin America:
Traditional
$
(62
)
$
—
$
7
$
(55
)
Financial Solutions:
Asset-Intensive
(38
)
(190
)
(1
)
271
(2
)
43
Capital Solutions
23
—
—
23
Total U.S. and Latin America
(77
)
(190
)
278
11
Canada Traditional
23
13
—
36
Canada Financial Solutions
3
—
—
3
Total Canada
26
13
—
39
EMEA Traditional
17
—
—
17
EMEA Financial Solutions
30
6
—
36
Total EMEA
47
6
—
53
Asia Pacific Traditional
24
—
—
24
Asia Pacific Financial Solutions
(25
)
35
—
10
Total Asia Pacific
(1
)
35
—
34
Corporate and Other
(91
)
72
—
(19
)
Consolidated
$
(96
)
$
(64
)
$
278
$
118
(1)
Asset-Intensive is net of $5 DAC
offset.
(2)
Asset-Intensive is net of $(92)
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,
2021
2020
Earnings per share from net income:
Basic earnings per share
$
2.04
$
(1.41
)
Diluted earnings per share (1)
$
2.03
$
(1.41
)
Diluted earnings per share from adjusted
operating income (1)
$
(1.24
)
$
1.41
Weighted average number of common and
common equivalent shares outstanding
68,427
63,001
(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,
2021
2020
Treasury shares
17,326
17,492
Common shares outstanding
67,985
61,646
Book value per share outstanding
$
177.83
$
150.88
Book value per share outstanding, before
impact of AOCI
$
133.67
$
132.55
Reconciliation of Book Value Per Share to
Book Value Per Share Excluding AOCI
(Unaudited)
At March 31,
2021
2020
Book value per share outstanding
$
177.83
$
150.88
Less effect of AOCI:
Accumulated currency translation
adjustments
(0.57
)
(3.62
)
Unrealized appreciation of securities
45.79
23.14
Pension and postretirement benefits
(1.06
)
(1.19
)
Book value per share outstanding, before
impact of AOCI
$
133.67
$
132.55
Reconciliation of Stockholders'
Average Equity to Stockholders' Average Equity Excluding AOCI
(Dollars in millions)
(Unaudited)
Trailing Twelve Months Ended March 31,
2021:
Average Equity
Stockholders' average equity
$
12,302
Less effect of AOCI:
Accumulated currency translation
adjustments
(143
)
Unrealized appreciation of securities
3,734
Pension and postretirement benefits
(75
)
Stockholders' average equity, excluding
AOCI
$
8,786
Reconciliation of Trailing Twelve
Months of Consolidated Net Income to Adjusted Operating Income
and
Related Return on Equity
(Dollars in millions)
(Unaudited)
Return on
Equity
Trailing Twelve Months Ended March 31,
2021:
Income
Net Income
$
642
5.2
%
Reconciliation to adjusted operating
income:
Capital (gains) losses, derivatives and
other, net
(110
)
Change in fair value of embedded
derivatives
(311
)
Deferred acquisition cost offset, net
72
Tax expense on uncertain tax positions
30
Adjusted operating income
$
323
3.7
%
REINSURANCE GROUP OF AMERICA,
INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements
of Income
(Dollars in millions)
(Unaudited)
Three Months Ended March 31,
2021
2020
Revenues:
Net premiums
$
2,914
$
2,819
Investment income, net of related
expenses
812
594
Investment related gains (losses),
net:
Impairments and change in allowance for
credit losses on fixed maturity securities
(2
)
(34
)
Other investment related gains (losses),
net
304
(251
)
Total investment related gains (losses),
net
302
(285
)
Other revenue
91
76
Total revenues
4,119
3,204
Benefits and expenses:
Claims and other policy benefits
3,192
2,664
Interest credited
146
146
Policy acquisition costs and other
insurance expenses
333
248
Other operating expenses
214
195
Interest expense
45
41
Collateral finance and securitization
expense
3
6
Total benefits and expenses
3,933
3,300
Income (loss) before income taxes
186
(96
)
Provision for income taxes
47
(8
)
Net income (loss)
$
139
$
(88
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506006194/en/
Investor Contact Jeff Hopson Senior Vice President -
Investor Relations (636) 736-2068
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