Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - REINSURANCE GROUP OF AMERICA INC | d245944d8k.htm |
| EX-99.1 - EXHIBIT 99.1 - REINSURANCE GROUP OF AMERICA INC | d245944dex991.htm |
Exhibit 99.2
Financial Supplement
Third Quarter 2011
(Unaudited)
| World Headquarters | Internet address | Contacts: | ||
| 1370 Timberlake Manor Parkway | www.rgare.com | Jack B. Lay | ||
| Chesterfield, Missouri 63017 | Senior Executive Vice President | |||
| U.S.A. | and Chief Financial Officer | |||
| Phone: (636) 736-7000 | ||||
| e-mail: jlay@rgare.com | ||||
| John Hayden | ||||
| Sr. Vice President | ||||
| Controller & Investor Relations | ||||
| Phone: (636) 300-8828 | ||||
| e-mail: jhayden@rgare.com | ||||
| Current Ratings | ||||||
| Standard & Poor’s | A.M. Best | Moody’s | ||||
| Financial Strength Ratings |
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| RGA Reinsurance Company |
AA- | A+ | A1 | |||
| RGA Life Reinsurance Company of Canada |
AA- | A+ | NR | |||
| RGA International Reinsurance Company Limited |
AA- | NR | NR | |||
| RGA Global Reinsurance Company Limited |
AA- | NR | NR | |||
| Senior Debt Ratings |
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| Reinsurance Group of America, Incorporated |
A- | a- | Baa1 | |||
Our common stock is traded on the New York Stock Exchange under the symbol “RGA”.
Quarterly Financial Supplement |
Reinsurance Group of America, Incorporated
Financial Supplement
3rd Quarter 2011
Table of Contents
| Page | ||||
| Non-GAAP Disclosure |
1 | |||
| Consolidated |
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| Financial Highlights |
2 | |||
| Consolidated Income Statement (incl. Operating Income Reconciliation) |
3 | |||
| Consolidated Operating Income Statement |
4 | |||
| Consolidated Balance Sheets |
5 | |||
| Segment Pre-tax Operating Income Summaries and Reconciliations to U.S. GAAP |
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| U.S. Operations |
6 | |||
| Canada Operations |
10 | |||
| Europe & South Africa Operations |
11 | |||
| Asia Pacific Operations |
12 | |||
| Corporate and Other |
13 | |||
| Summary of Pre-tax Segment Operating Income |
14 | |||
| Investments |
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| Cash and Invested Assets, Yield Summary |
15 | |||
| Amortized cost, Gross Unrealized Gains and Losses, Estimated Fair Values of Fixed Maturity and Equity Securities |
16 | |||
| Corporate Securities by Sector (Fixed Maturities and Equities) |
17 | |||
| Quality of Fixed Maturity Securities and Structured Fixed Maturity Securities |
18 | |||
| Subprime Mortgage Exposure (Including Funds Withheld Portfolios) |
19 | |||
| CMBS Exposure (Including Funds Withheld Portfolios) |
20 | |||
| Gross Unrealized Losses Aging |
21 | |||
| Fixed Maturity and Equity Securities Below Amortized Cost |
22 | |||
| Consolidated Gross Gains and Losses |
23 | |||
|
Quarterly Financial Supplement |
Reinsurance Group of America, Incorporated
Financial Supplement
This Financial Supplement is for information purposes only and includes unaudited figures. This report should be read in conjunction with documents filed by Reinsurance Group of America, Incorporated with the SEC.
Non-GAAP Disclosures
RGA uses a non-GAAP financial measure called 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 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 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, operating income excludes any net gain or loss from discontinued operations and the cumulative effect of any accounting changes, which management believes are not indicative of the company’s ongoing operations. The definition of operating income can vary by company and is not considered a substitute for GAAP net income. A reconciliation of income before income taxes of the operating segments to pre-tax operating income (loss) is presented herein.
RGA evaluates its stockholder equity position excluding the impact of Accumulated Other Comprehensive Income (“AOCI”) since the net unrealized gains or losses included in AOCI primarily relate to changes in interest rates, credit spreads on its investment securities and foreign currency fluctuations that are not permanent and can fluctuate significantly from period to period.
Additionally, RGA uses a non-GAAP financial measure called operating return on equity, which is calculated as operating income divided by average shareholder’s equity excluding AOCI.
|
Quarterly Financial Supplement |
Page 1 |
Reinsurance Group of America, Incorporated
Financial Highlights
| (USD thousands, except inforce & per share data) | Three Months Ended or As of | Current Qtr vs. PY Quarter |
Year-to-Date | |||||||||||||||||||||||||||||||||||
| Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | |||||||||||||||||||||||||||||||
| Net premiums |
$ | 1,776,165 | $ | 1,788,676 | $ | 1,736,130 | $ | 1,801,899 | $ | 1,647,300 | $ | 128,865 | $ | 5,300,971 | $ | 4,857,781 | $ | 443,190 | ||||||||||||||||||||
| Net income |
147,385 | 132,888 | 160,816 | 196,712 | 128,232 | 19,153 | 441,089 | 377,690 | 63,399 | |||||||||||||||||||||||||||||
| Operating income |
151,618 | 128,001 | 118,827 | 161,419 | 127,703 | 23,915 | 398,446 | 342,610 | 55,836 | |||||||||||||||||||||||||||||
| Operating return on equity (ex AOCI) - annualized |
14.1 | % | 12.2 | % | 11.5 | % | 16.0 | % | 13.2 | % | 0.9 | % | ||||||||||||||||||||||||||
| Operating return on equity (ex AOCI) - trailing 12 months |
13.5 | % | 13.2 | % | 13.4 | % | 13.2 | % | 12.7 | % | 0.8 | % | ||||||||||||||||||||||||||
| Total assets |
31,183,454 | 30,659,277 | 29,510,019 | 29,081,908 | 28,934,028 | 2,249,426 | ||||||||||||||||||||||||||||||||
| Assumed Life Reinsurance in Force (in billions) |
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| U.S. |
$ | 1,347.9 | $ | 1,343.2 | $ | 1,343.2 | $ | 1,340.5 | $ | 1,339.7 | $ | 8.2 | ||||||||||||||||||||||||||
| Canada |
329.5 | 350.3 | 339.2 | 324.1 | 307.0 | 22.5 | ||||||||||||||||||||||||||||||||
| Europe & South Africa |
515.0 | 529.7 | 497.8 | 467.6 | 446.5 | 68.5 | ||||||||||||||||||||||||||||||||
| Asia Pacific |
422.8 | 435.6 | 407.7 | 408.1 | 385.8 | 37.0 | ||||||||||||||||||||||||||||||||
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| Total Life Reinsurance in Force |
$ | 2,615.2 | $ | 2,658.8 | $ | 2,587.9 | $ | 2,540.3 | $ | 2,479.0 | $ | 136.2 | ||||||||||||||||||||||||||
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| Assumed New Business Production (in billions) |
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| U.S. |
$ | 30.1 | $ | 24.3 | $ | 31.3 | $ | 26.2 | $ | 30.3 | $ | (0.2 | ) | $ | 85.7 | $ | 116.0 | $ | (30.3 | ) | ||||||||||||||||||
| Canada |
14.0 | 13.4 | 12.4 | 12.2 | 12.2 | 1.8 | 39.8 | 38.9 | 0.9 | |||||||||||||||||||||||||||||
| Europe & South Africa |
38.7 | 47.6 | 37.1 | 28.5 | 30.0 | 8.7 | 123.4 | 75.1 | 48.3 | |||||||||||||||||||||||||||||
| Asia Pacific |
27.9 | 9.7 | 7.4 | 13.1 | 4.8 | 23.1 | 45.0 | 17.6 | 27.4 | |||||||||||||||||||||||||||||
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| Total New Business Production |
$ | 110.7 | $ | 95.0 | $ | 88.2 | $ | 80.0 | $ | 77.3 | $ | 33.4 | $ | 293.9 | $ | 247.6 | $ | 46.3 | ||||||||||||||||||||
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| Per Share and Shares Data |
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| Basic earnings per share |
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| Net income |
$ | 2.00 | $ | 1.80 | $ | 2.20 | $ | 2.68 | $ | 1.75 | $ | 0.25 | $ | 5.99 | $ | 5.17 | $ | 0.82 | ||||||||||||||||||||
| Operating income |
$ | 2.05 | $ | 1.73 | $ | 1.62 | $ | 2.20 | $ | 1.75 | $ | 0.30 | $ | 5.41 | $ | 4.69 | $ | 0.72 | ||||||||||||||||||||
| Diluted earnings per share |
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| Net income |
$ | 1.98 | $ | 1.78 | $ | 2.18 | $ | 2.62 | $ | 1.72 | $ | 0.26 | $ | 5.94 | $ | 5.06 | $ | 0.88 | ||||||||||||||||||||
| Operating income |
$ | 2.04 | $ | 1.72 | $ | 1.61 | $ | 2.15 | $ | 1.72 | $ | 0.32 | $ | 5.37 | $ | 4.59 | $ | 0.78 | ||||||||||||||||||||
| Wgt. average common shares outstanding (basic) |
73,856 | 73,971 | 73,213 | 73,277 | 73,162 | 694 | 73,680 | 73,117 | 563 | |||||||||||||||||||||||||||||
| Wgt. average common shares outstanding (diluted) |
74,254 | 74,530 | 73,836 | 75,052 | 74,420 | (166 | ) | 74,207 | 74,574 | (367 | ) | |||||||||||||||||||||||||||
| Common shares issued |
79,138 | 79,138 | 79,138 | 73,364 | 73,364 | 5,774 | 79,138 | 73,364 | 5,774 | |||||||||||||||||||||||||||||
| Treasury shares |
5,871 | 5,062 | 5,341 | 1 | 192 | 5,679 | 5,871 | 192 | 5,679 | |||||||||||||||||||||||||||||
| Common shares outstanding |
73,267 | 74,076 | 73,797 | 73,363 | 73,172 | 95 | 73,267 | 73,172 | 95 | |||||||||||||||||||||||||||||
| Book value per share |
$ | 77.29 | $ | 71.88 | $ | 68.06 | $ | 68.71 | $ | 68.30 | ||||||||||||||||||||||||||||
| Per share effect of accumulated other comprehensive income (AOCI) |
$ | 17.81 | $ | 14.37 | $ | 12.18 | $ | 12.37 | $ | 14.48 | ||||||||||||||||||||||||||||
| Book value per share, excluding AOCI |
$ | 59.48 | $ | 57.51 | $ | 55.88 | $ | 56.34 | $ | 53.82 | ||||||||||||||||||||||||||||
| Shareholder dividends paid |
$ | 13,336.6 | $ | 8,870.7 | $ | 8,832.2 | $ | 8,830.3 | $ | 8,778.5 | $ | 4,558.1 | $ | 31,039.4 | $ | 26,339.7 | $ | 4,699.7 | ||||||||||||||||||||
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Quarterly Financial Supplement |
Page 2 |
Reinsurance Group of America, Incorporated
Consolidated GAAP Income Statement (incl. Operating Income Reconciliations)
| Three Months Ended | Current Qtr vs. PY Quarter |
Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | ||||||||||||||||||||||||||||||
| Revenues: |
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| Net premiums |
$ | 1,776,165 | $ | 1,788,676 | $ | 1,736,130 | $ | 1,801,899 | $ | 1,647,300 | $ | 128,865 | $ | 5,300,971 | $ | 4,857,781 | $ | 443,190 | ||||||||||||||||||||
| Investment income, net of related expenses |
268,210 | 337,436 | 371,040 | 355,227 | 287,504 | (19,294 | ) | 976,686 | 883,433 | 93,253 | ||||||||||||||||||||||||||||
| Investment related gains (losses), net |
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| OTTI on fixed maturity securities |
(11,911 | ) | (5,582 | ) | (1,556 | ) | (16,097 | ) | (4,904 | ) | (7,007 | ) | (19,049 | ) | (15,823 | ) | (3,226 | ) | ||||||||||||||||||||
| OTTI on fixed maturity securities transferred to/from AOCI |
3,089 | 292 | — | (186 | ) | 26 | 3,063 | 3,381 | 2,231 | 1,150 | ||||||||||||||||||||||||||||
| Other investment related gains (losses), net |
(130,778 | ) | 32,678 | 125,176 | 90,916 | (11,902 | ) | (118,876 | ) | 27,076 | 150,989 | (123,913 | ) | |||||||||||||||||||||||||
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| Total investment related gains (losses), net |
(139,600 | ) | 27,388 | 123,620 | 74,633 | (16,780 | ) | (122,820 | ) | 11,408 | 137,397 | (125,989 | ) | |||||||||||||||||||||||||
| Other revenue |
90,132 | 50,477 | 51,645 | 42,370 | 37,515 | 52,617 | 192,254 | 108,990 | 83,264 | |||||||||||||||||||||||||||||
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| Total revenues |
1,994,907 | 2,203,977 | 2,282,435 | 2,274,129 | 1,955,539 | 39,368 | 6,481,319 | 5,987,601 | 493,718 | |||||||||||||||||||||||||||||
| Benefits and expenses: |
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| Claims and other policy benefits |
1,514,765 | 1,520,013 | 1,469,449 | 1,470,845 | 1,393,891 | 120,874 | 4,504,227 | 4,076,310 | 427,917 | |||||||||||||||||||||||||||||
| Interest credited |
35,251 | 96,196 | 106,063 | 79,103 | 94,776 | (59,525 | ) | 237,510 | 230,879 | 6,631 | ||||||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
149,228 | 261,282 | 331,153 | 319,444 | 157,058 | (7,830 | ) | 741,663 | 760,509 | (18,846 | ) | |||||||||||||||||||||||||||
| Other operating expenses |
94,029 | 97,161 | 106,150 | 102,216 | 85,409 | 8,620 | 297,340 | 259,755 | 37,585 | |||||||||||||||||||||||||||||
| Interest expense |
27,025 | 25,818 | 24,569 | 25,215 | 25,191 | 1,834 | 77,412 | 65,781 | 11,631 | |||||||||||||||||||||||||||||
| Collateral finance facility expense |
3,069 | 3,101 | 3,202 | 2,049 | 2,041 | 1,028 | 9,372 | 5,807 | 3,565 | |||||||||||||||||||||||||||||
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| Total benefits and expenses |
1,823,367 | 2,003,571 | 2,040,586 | 1,998,872 | 1,758,366 | 65,001 | 5,867,524 | 5,399,041 | 468,483 | |||||||||||||||||||||||||||||
| Income before income taxes |
171,540 | 200,406 | 241,849 | 275,257 | 197,173 | (25,633 | ) | 613,795 | 588,560 | 25,235 | ||||||||||||||||||||||||||||
| Income tax expense |
24,155 | 67,518 | 81,033 | 78,545 | 68,941 | (44,786 | ) | 172,706 | 210,870 | (38,164 | ) | |||||||||||||||||||||||||||
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| Net income |
$ | 147,385 | $ | 132,888 | $ | 160,816 | $ | 196,712 | $ | 128,232 | $ | 19,153 | $ | 441,089 | $ | 377,690 | $ | 63,399 | ||||||||||||||||||||
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| Pre-tax Operating Income Reconciliation: |
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| Income before income taxes |
171,540 | 200,406 | 241,849 | 275,257 | 197,173 | (25,633 | ) | 613,795 | 588,560 | 25,235 | ||||||||||||||||||||||||||||
| Investment and derivative losses (gains) - non-operating (1) |
(221,194 | ) | (40,152 | ) | 1,099 | 91,401 | (37,747 | ) | (183,447 | ) | (260,247 | ) | (168,073 | ) | (92,174 | ) | ||||||||||||||||||||||
| Change in value of modified coinsurance and funds withheld embedded derivatives (1) |
102,574 | (10,525 | ) | (90,535 | ) | (43,780 | ) | 38,653 | 63,921 | 1,514 | (116,494 | ) | 118,008 | |||||||||||||||||||||||||
| GMXB embedded derivatives (1) |
260,239 | 25,860 | (32,654 | ) | (121,209 | ) | 16,232 | 244,007 | 253,445 | 149,995 | 103,450 | |||||||||||||||||||||||||||
| Funds withheld losses (gains) - investment income |
(9,806 | ) | (7,185 | ) | 12,041 | (8,240 | ) | (6,494 | ) | (3,312 | ) | (4,950 | ) | (12,184 | ) | 7,234 | ||||||||||||||||||||||
| Funds withheld losses (gains) - policy acq. costs |
1,034 | 1,793 | (1,925 | ) | 793 | 954 | 80 | 902 | 1,650 | (748 | ) | |||||||||||||||||||||||||||
| EIA embedded derivatives - interest credited |
37,539 | 21,011 | (26,751 | ) | (25,741 | ) | 43,070 | (5,531 | ) | 31,799 | 35,638 | (3,839 | ) | |||||||||||||||||||||||||
| EIA embedded derivatives - policy acq. costs |
(3,664 | ) | (2,073 | ) | 2,944 | 3,008 | (4,189 | ) | 525 | (2,793 | ) | (2,442 | ) | (351 | ) | |||||||||||||||||||||||
| DAC offset, net |
(107,709 | ) | 4,158 | 72,567 | 49,618 | (50,519 | ) | (57,190 | ) | (30,984 | ) | 59,291 | (90,275 | ) | ||||||||||||||||||||||||
| Gain on repurchase of collateral finance facility securities |
(50,869 | ) | — | (4,971 | ) | — | — | (50,869 | ) | (55,840 | ) | — | (55,840 | ) | ||||||||||||||||||||||||
| Loss on retirement of Preferred Income Equity Redeemable Securities (“PIERS”) |
— | — | 4,391 | — | — | — | 4,391 | — | 4,391 | |||||||||||||||||||||||||||||
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| Operating Income Before Income Taxes |
$ | 179,684 | $ | 193,293 | $ | 178,055 | $ | 221,107 | $ | 197,133 | $ | (17,449 | ) | $ | 551,032 | $ | 535,941 | $ | 15,091 | |||||||||||||||||||
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| After-tax Operating Income Reconciliation: |
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| Net Income |
147,385 | 132,888 | 160,816 | 196,712 | 128,232 | 19,153 | 441,089 | 377,690 | 63,399 | |||||||||||||||||||||||||||||
| Investment and derivative losses (gains) - non-operating (1) |
(144,836 | ) | (26,361 | ) | 191 | 59,317 | (25,041 | ) | (119,795 | ) | (171,006 | ) | (110,127 | ) | (60,879 | ) | ||||||||||||||||||||||
| Change in value of modified coinsurance and funds withheld embedded derivatives (1) |
66,673 | (6,841 | ) | (58,848 | ) | (28,457 | ) | 25,125 | 41,548 | 984 | (75,721 | ) | 76,705 | |||||||||||||||||||||||||
| GMXB embedded derivatives (1) |
169,155 | 16,809 | (21,225 | ) | (78,786 | ) | 10,551 | 158,604 | 164,739 | 97,497 | 67,242 | |||||||||||||||||||||||||||
| Funds withheld losses (gains) - investment income |
(6,374 | ) | (4,671 | ) | 7,827 | (5,356 | ) | (4,221 | ) | (2,153 | ) | (3,218 | ) | (7,920 | ) | 4,702 | ||||||||||||||||||||||
| Funds withheld losses (gains) - policy acq. costs |
672 | 1,165 | (1,251 | ) | 515 | 621 | 51 | 586 | 1,073 | (487 | ) | |||||||||||||||||||||||||||
| EIA embedded derivatives - interest credited |
24,400 | 13,657 | (17,388 | ) | (16,732 | ) | 27,996 | (3,596 | ) | 20,669 | 23,165 | (2,496 | ) | |||||||||||||||||||||||||
| EIA embedded derivatives - policy acq. costs |
(2,381 | ) | (1,348 | ) | 1,914 | 1,955 | (2,723 | ) | 342 | (1,815 | ) | (1,587 | ) | (228 | ) | |||||||||||||||||||||||
| DAC offset, net |
(70,011 | ) | 2,703 | 47,168 | 32,251 | (32,837 | ) | (37,174 | ) | (20,140 | ) | 38,540 | (58,680 | ) | ||||||||||||||||||||||||
| Gain on repurchase of collateral finance facility securities |
(33,065 | ) | — | (3,231 | ) | — | — | (33,065 | ) | (36,296 | ) | — | (36,296 | ) | ||||||||||||||||||||||||
| Loss on retirement of PIERS |
— | — | 2,854 | — | — | — | 2,854 | — | 2,854 | |||||||||||||||||||||||||||||
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| Operating Income |
$ | 151,618 | $ | 128,001 | $ | 118,827 | $ | 161,419 | $ | 127,703 | $ | 23,915 | $ | 398,446 | $ | 342,610 | $ | 55,836 | ||||||||||||||||||||
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| (1) | Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement |
|
Quarterly Financial Supplement |
Page 3 |
Reinsurance Group of America, Incorporated
Consolidated Operating Income Statement
| Three Months Ended | Current Qtr vs. PY Quarter |
Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands, except per share data) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | ||||||||||||||||||||||||||||||
| Revenues: |
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| Net premiums |
$ | 1,776,165 | $ | 1,788,676 | $ | 1,736,130 | $ | 1,801,899 | $ | 1,647,300 | $ | 128,865 | $ | 5,300,971 | $ | 4,857,781 | $ | 443,190 | ||||||||||||||||||||
| Investment income, net of related expenses |
258,404 | 330,251 | 383,081 | 346,987 | 281,010 | (22,606 | ) | 971,736 | 871,249 | 100,487 | ||||||||||||||||||||||||||||
| Investment related gains (losses), net |
2,019 | 2,571 | 1,530 | 1,045 | 358 | 1,661 | 6,120 | 2,825 | 3,295 | |||||||||||||||||||||||||||||
| Other revenue |
39,263 | 50,477 | 46,674 | 42,370 | 37,515 | 1,748 | 136,414 | 108,990 | 27,424 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total revenues |
2,075,851 | 2,171,975 | 2,167,415 | 2,192,301 | 1,966,183 | 109,668 | 6,415,241 | 5,840,845 | 574,396 | |||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
1,514,765 | 1,520,013 | 1,469,449 | 1,470,845 | 1,393,891 | 120,874 | 4,504,227 | 4,076,310 | 427,917 | |||||||||||||||||||||||||||||
| Interest credited |
(2,288 | ) | 75,185 | 132,814 | 104,844 | 51,706 | (53,994 | ) | 205,711 | 195,241 | 10,470 | |||||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
259,567 | 257,404 | 257,567 | 266,025 | 210,812 | 48,755 | 774,538 | 702,010 | 72,528 | |||||||||||||||||||||||||||||
| Other operating expenses |
94,029 | 97,161 | 101,759 | 102,216 | 85,409 | 8,620 | 292,949 | 259,755 | 33,194 | |||||||||||||||||||||||||||||
| Interest expense |
27,025 | 25,818 | 24,569 | 25,215 | 25,191 | 1,834 | 77,412 | 65,781 | 11,631 | |||||||||||||||||||||||||||||
| Collateral finance facility expense |
3,069 | 3,101 | 3,202 | 2,049 | 2,041 | 1,028 | 9,372 | 5,807 | 3,565 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total benefits and expenses |
1,896,167 | 1,978,682 | 1,989,360 | 1,971,194 | 1,769,050 | 127,117 | 5,864,209 | 5,304,904 | 559,305 | |||||||||||||||||||||||||||||
| Operating income before income taxes |
179,684 | 193,293 | 178,055 | 221,107 | 197,133 | (17,449 | ) | 551,032 | 535,941 | 15,091 | ||||||||||||||||||||||||||||
| Operating income tax expense |
28,066 | 65,292 | 59,228 | 59,688 | 69,430 | (41,364 | ) | 152,586 | 193,331 | (40,745 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Operating income |
$ | 151,618 | $ | 128,001 | $ | 118,827 | $ | 161,419 | $ | 127,703 | $ | 23,915 | $ | 398,446 | $ | 342,610 | $ | 55,836 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Wgt. Average Common Shares Outstanding (Diluted) |
74,254 | 74,530 | 73,836 | 75,052 | 74,420 | (166 | ) | 74,207 | 74,574 | (367 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Diluted Earnings Per Share - Operating Income |
$ | 2.04 | $ | 1.72 | $ | 1.61 | $ | 2.15 | $ | 1.72 | $ | 0.32 | $ | 5.37 | $ | 4.59 | $ | 0.78 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||
| Foreign currency effect*: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 53,399 | $ | 77,277 | $ | 42,487 | $ | 23,933 | $ | 15,448 | $ | 37,951 | $ | 173,163 | $ | 159,867 | $ | 13,296 | ||||||||||||||||||||
| Operating income before income taxes |
$ | 6,846 | $ | 5,713 | $ | 4,634 | $ | 1,580 | $ | 1,998 | $ | 4,848 | $ | 17,193 | $ | 16,680 | $ | 513 | ||||||||||||||||||||
| * | Compared to comparable prior year period |
|
Quarterly Financial Supplement |
Page 4 |
Reinsurance Group of America, Incorporated
Consolidated Balance Sheets
| (USD thousands) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
|||||||||||||||
| Assets | ||||||||||||||||||||
| Fixed maturity securities, available-for-sale |
$ | 15,557,032 | $ | 15,153,807 | $ | 14,531,154 | $ | 14,304,597 | $ | 14,169,930 | ||||||||||
| Mortgage loans on real estate |
934,694 | 908,048 | 906,869 | 885,811 | 863,873 | |||||||||||||||
| Policy loans |
1,228,890 | 1,229,663 | 1,222,016 | 1,228,418 | 1,173,148 | |||||||||||||||
| Funds withheld at interest |
5,445,886 | 5,671,844 | 5,595,146 | 5,421,952 | 5,276,511 | |||||||||||||||
| Short-term investments |
81,747 | 125,618 | 74,902 | 118,387 | 84,091 | |||||||||||||||
| Other invested assets |
1,020,043 | 799,341 | 756,377 | 707,403 | 738,830 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investments |
24,268,292 | 23,888,321 | 23,086,464 | 22,666,568 | 22,306,383 | |||||||||||||||
| Cash and cash equivalents |
802,651 | 710,973 | 467,672 | 463,661 | 634,075 | |||||||||||||||
| Accrued investment income |
190,298 | 160,436 | 155,182 | 127,874 | 177,250 | |||||||||||||||
| Premiums receivable and other reinsurance balances |
1,060,631 | 1,045,131 | 986,658 | 1,037,679 | 987,342 | |||||||||||||||
| Reinsurance ceded receivables |
727,290 | 781,006 | 807,929 | 769,699 | 790,889 | |||||||||||||||
| Deferred policy acquisition costs |
3,787,257 | 3,733,686 | 3,679,075 | 3,726,443 | 3,741,534 | |||||||||||||||
| Other assets |
347,035 | 339,724 | 327,039 | 289,984 | 296,555 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
$ | 31,183,454 | $ | 30,659,277 | $ | 29,510,019 | $ | 29,081,908 | $ | 28,934,028 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Future policy benefits |
9,445,222 | $ | 9,642,814 | $ | 9,438,432 | $ | 9,274,789 | $ | 8,906,977 | |||||||||||
| Interest-sensitive contract liabilities |
8,378,159 | 8,100,608 | 7,747,203 | 7,774,481 | 7,884,874 | |||||||||||||||
| Other policy claims and benefits |
2,826,297 | 2,774,031 | 2,728,122 | 2,597,941 | 2,590,014 | |||||||||||||||
| Other reinsurance balances |
136,298 | 159,340 | 184,958 | 133,590 | 134,066 | |||||||||||||||
| Deferred income taxes |
1,662,806 | 1,421,480 | 1,415,333 | 1,396,747 | 1,064,726 | |||||||||||||||
| Other liabilities |
776,239 | 784,291 | 701,799 | 637,923 | 1,129,848 | |||||||||||||||
| Short-term debt |
199,997 | 199,993 | 255,989 | 199,985 | — | |||||||||||||||
| Long-term debt |
1,414,546 | 1,414,406 | 1,016,510 | 1,016,425 | 1,216,320 | |||||||||||||||
| Collateral finance facility |
681,004 | 837,789 | 839,354 | 850,039 | 850,026 | |||||||||||||||
| Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated debentures of the Company |
— | — | 159,455 | 159,421 | 159,368 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities |
25,520,568 | 25,334,752 | 24,487,155 | 24,041,341 | 23,936,219 | |||||||||||||||
| Stockholders’ Equity: |
||||||||||||||||||||
| Common stock, at par value |
791 | 791 | 791 | 734 | 734 | |||||||||||||||
| Warrants |
— | — | — | 66,912 | 66,912 | |||||||||||||||
| Additional paid-in-capital |
1,719,683 | 1,713,893 | 1,708,096 | 1,478,398 | 1,477,011 | |||||||||||||||
| Retained earnings |
2,989,231 | 2,856,009 | 2,738,868 | 2,587,403 | 2,402,167 | |||||||||||||||
| Treasury stock |
(352,106 | ) | (310,856 | ) | (323,689 | ) | (295 | ) | (8,774 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Accumulated other comprehensive income (AOCI): |
||||||||||||||||||||
| Accumulated currency translation adjustment, net of income taxes |
198,843 | 311,653 | 297,513 | 270,526 | 242,686 | |||||||||||||||
| Unrealized appreciation of securities, net of income taxes |
1,119,724 | 767,023 | 615,631 | 651,449 | 832,756 | |||||||||||||||
| Pension and postretirement benefits, net of income taxes |
(13,280 | ) | (13,988 | ) | (14,346 | ) | (14,560 | ) | (15,683 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total stockholders’ equity |
5,662,886 | 5,324,525 | 5,022,864 | 5,040,567 | 4,997,809 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities and stockholders’ equity |
$ | 31,183,454 | $ | 30,659,277 | $ | 29,510,019 | $ | 29,081,908 | $ | 28,934,028 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total stockholders’ equity, excluding AOCI |
$ | 4,357,599 | $ | 4,259,837 | $ | 4,124,066 | $ | 4,133,152 | $ | 3,938,050 | ||||||||||
|
Quarterly Financial Supplement |
Page 5 |
Reinsurance Group of America, Incorporated
U.S. Traditional Sub-segment Pre-tax Operating Income
| Three Months Ended | Current Qtr vs. PY Quarter |
Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | ||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 971,190 | $ | 973,837 | $ | 935,053 | $ | 1,009,758 | $ | 930,070 | $ | 41,120 | $ | 2,880,080 | $ | 2,766,193 | $ | 113,887 | ||||||||||||||||||||
| Investment income, net of related expenses |
122,687 | 124,564 | 119,781 | 117,272 | 124,596 | (1,909 | ) | 367,032 | 358,839 | 8,193 | ||||||||||||||||||||||||||||
| Other revenue |
599 | 738 | 493 | 504 | 428 | 171 | 1,830 | 1,216 | 614 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total revenues |
1,094,476 | 1,099,139 | 1,055,327 | 1,127,534 | 1,055,094 | 39,382 | 3,248,942 | 3,126,248 | 122,694 | |||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
844,090 | 839,173 | 822,407 | 842,335 | 793,270 | 50,820 | 2,505,670 | 2,372,001 | 133,669 | |||||||||||||||||||||||||||||
| Interest credited |
15,166 | 14,967 | 14,584 | 14,826 | 16,698 | (1,532 | ) | 44,717 | 49,646 | (4,929 | ) | |||||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
131,810 | 132,172 | 127,462 | 142,057 | 125,526 | 6,284 | 391,444 | 388,769 | 2,675 | |||||||||||||||||||||||||||||
| Other operating expenses |
20,299 | 19,486 | 21,350 | 21,221 | 18,534 | 1,765 | 61,135 | 57,696 | 3,439 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total benefits and expenses |
1,011,365 | 1,005,798 | 985,803 | 1,020,439 | 954,028 | 57,337 | 3,002,966 | 2,868,112 | 134,854 | |||||||||||||||||||||||||||||
| Operating income before income taxes |
83,111 | 93,341 | 69,524 | 107,095 | 101,066 | (17,955 | ) | 245,976 | 258,136 | (12,160 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Operating to U.S. GAAP Reconciliation: |
||||||||||||||||||||||||||||||||||||||
| Operating income before income taxes |
83,111 | 93,341 | 69,524 | 107,095 | 101,066 | (17,955 | ) | 245,976 | 258,136 | (12,160 | ) | |||||||||||||||||||||||||||
| Investment and derivative (losses) gains - non-operating |
5,056 | 205 | 8,875 | 6,246 | 13,009 | (7,953 | ) | 14,136 | 18,578 | (4,442 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Income before income taxes |
$ | 88,167 | $ | 93,546 | $ | 78,399 | $ | 113,341 | $ | 114,075 | $ | (25,908 | ) | $ | 260,112 | $ | 276,714 | $ | (16,602 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Loss and Expense Ratios: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
86.9 | % | 86.2 | % | 88.0 | % | 83.4 | % | 85.3 | % | 1.6 | % | 87.0 | % | 85.7 | % | 1.3 | % | ||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
13.6 | % | 13.6 | % | 13.6 | % | 14.1 | % | 13.5 | % | 0.1 | % | 13.6 | % | 14.1 | % | -0.5 | % | ||||||||||||||||||||
| Other operating expenses |
2.1 | % | 2.0 | % | 2.3 | % | 2.1 | % | 2.0 | % | 0.1 | % | 2.1 | % | 2.1 | % | 0.0 | % | ||||||||||||||||||||
|
Quarterly Financial Supplement |
Page 6 |
Reinsurance Group of America, Incorporated
U.S. Asset Intensive Sub-segment Pre-tax Operating Income
| Three Months Ended | Current Qtr vs. PY Quarter |
Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands except account values) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | ||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 2,786 | $ | 3,459 | $ | 3,325 | $ | 3,401 | $ | 2,724 | $ | 62 | $ | 9,570 | $ | 17,729 | $ | (8,159 | ) | |||||||||||||||||||
| Investment income, net of related expenses |
20,238 | 97,944 | 159,414 | 129,985 | 60,853 | (40,615 | ) | 277,596 | 234,491 | 43,105 | ||||||||||||||||||||||||||||
| Investment related gains (losses), net |
(14 | ) | (20 | ) | (16 | ) | (18 | ) | (18 | ) | 4 | (50 | ) | (54 | ) | 4 | ||||||||||||||||||||||
| Other revenue |
19,827 | 23,536 | 24,001 | 24,156 | 19,605 | 222 | 67,364 | 62,442 | 4,922 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total revenues |
42,837 | 124,919 | 186,724 | 157,524 | 83,164 | (40,327 | ) | 354,480 | 314,608 | 39,872 | ||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
4,431 | 4,264 | 2,816 | 3,131 | (318 | ) | 4,749 | 11,511 | 12,142 | (631 | ) | |||||||||||||||||||||||||||
| Interest credited |
(17,733 | ) | 59,603 | 118,230 | 90,017 | 35,008 | (52,741 | ) | 160,100 | 145,582 | 14,518 | |||||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
53,236 | 39,323 | 42,755 | 41,614 | 32,072 | 21,164 | 135,314 | 102,563 | 32,751 | |||||||||||||||||||||||||||||
| Other operating expenses |
1,886 | 1,743 | 2,154 | 2,781 | 2,413 | (527 | ) | 5,783 | 8,016 | (2,233 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total benefits and expenses |
41,820 | 104,933 | 165,955 | 137,543 | 69,175 | (27,355 | ) | 312,708 | 268,303 | 44,405 | ||||||||||||||||||||||||||||
| Operating income (loss) before income taxes |
1,017 | 19,986 | 20,769 | 19,981 | 13,989 | (12,972 | ) | 41,772 | 46,305 | (4,533 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Operating to U.S. GAAP Reconciliation: |
||||||||||||||||||||||||||||||||||||||
| Operating income before income taxes |
1,017 | 19,986 | 20,769 | 19,981 | 13,989 | (12,972 | ) | 41,772 | 46,305 | (4,533 | ) | |||||||||||||||||||||||||||
| Investment and derivative (losses) gains - non-operating (1) |
219,530 | 28,681 | (18,704 | ) | (109,171 | ) | 17,112 | 202,418 | 229,507 | 144,666 | 84,841 | |||||||||||||||||||||||||||
| Change in value of modified coinsurance and funds withheld embedded derivatives (1) |
(103,949 | ) | 10,525 | 90,535 | 43,780 | (38,653 | ) | (65,296 | ) | (2,889 | ) | 116,494 | (119,383 | ) | ||||||||||||||||||||||||
| GMXB embedded derivatives (1) |
(260,239 | ) | (25,860 | ) | 32,654 | 121,209 | (16,232 | ) | (244,007 | ) | (253,445 | ) | (149,995 | ) | (103,450 | ) | ||||||||||||||||||||||
| Funds withheld losses (gains) - investment income |
9,806 | 7,185 | (12,041 | ) | 8,240 | 6,494 | 3,312 | 4,950 | 12,184 | (7,234 | ) | |||||||||||||||||||||||||||
| Funds withheld losses (gains) - policy acq. costs |
(1,034 | ) | (1,793 | ) | 1,925 | (793 | ) | (954 | ) | (80 | ) | (902 | ) | (1,650 | ) | 748 | ||||||||||||||||||||||
| EIA embedded derivatives - interest credited |
(37,539 | ) | (21,011 | ) | 26,751 | 25,741 | (43,070 | ) | 5,531 | (31,799 | ) | (35,638 | ) | 3,839 | ||||||||||||||||||||||||
| EIA embedded derivatives - policy acq. costs |
3,664 | 2,073 | (2,944 | ) | (3,008 | ) | 4,189 | (525 | ) | 2,793 | 2,442 | 351 | ||||||||||||||||||||||||||
| DAC offset, net |
107,709 | (4,158 | ) | (72,567 | ) | (49,618 | ) | 50,519 | 57,190 | 30,984 | (59,291 | ) | 90,275 | |||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Income before income taxes |
$ | (61,035 | ) | $ | 15,628 | $ | 66,378 | $ | 56,361 | $ | (6,606 | ) | $ | (54,429 | ) | $ | 20,971 | $ | 75,517 | $ | (54,546 | ) | ||||||||||||||||
|
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|
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|
|||||||||||||||||||||
| (1) | Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement |
|
Quarterly Financial Supplement |
Page 7 |
Reinsurance Group of America, Incorporated
U.S. Asset Intensive Sub-segment
(Cont’d)
| Three Months Ended | ||||||||||||||||||||
| (USD millions) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
|||||||||||||||
| Annuity account values: |
||||||||||||||||||||
| Fixed annuities (deferred) |
$ | 856 | $ | 835 | $ | 804 | $ | 822 | $ | 837 | ||||||||||
| Net interest spread (fixed annuities): |
2.7 | % | 2.2 | % | 2.7 | % | 2.4 | % | 1.5 | % | ||||||||||
| Equity-indexed annuities |
$ | 4,327 | $ | 4,324 | $ | 4,258 | $ | 4,239 | $ | 4,210 | ||||||||||
| Variable annuities: |
||||||||||||||||||||
| No riders |
$ | 979 | $ | 1,114 | $ | 1,172 | $ | 1,156 | $ | 1,243 | ||||||||||
| GMDB only |
76 | 89 | 91 | 90 | 87 | |||||||||||||||
| GMIB only |
5 | 6 | 6 | 6 | 6 | |||||||||||||||
| GMAB only |
54 | 63 | 64 | 64 | 62 | |||||||||||||||
| GMWB only |
1,524 | 1,751 | 1,773 | 1,735 | 1,653 | |||||||||||||||
| GMDB / WB |
428 | 493 | 500 | 492 | 472 | |||||||||||||||
| Other |
30 | 35 | 36 | 36 | 34 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total VA account values |
$ | 3,096 | $ | 3,551 | $ | 3,642 | $ | 3,579 | $ | 3,557 | ||||||||||
| Fair value of liabilities associated with living benefit riders |
$ | 306 | $ | 46 | $ | 20 | $ | 53 | $ | 174 | ||||||||||
| Interest-sensitive contract liabilities associated with: |
||||||||||||||||||||
| Guaranteed investment contracts |
$ | 199 | $ | 199 | $ | 199 | $ | 199 | $ | 199 | ||||||||||
| Bank-owned life insurance (BOLI) |
$ | 505 | $ | 502 | $ | 498 | $ | 494 | $ | 491 | ||||||||||
| Other asset-intensive business |
$ | 79 | $ | 85 | $ | 87 | $ | 90 | $ | 96 | ||||||||||
|
Quarterly Financial Supplement |
Page 8 |
Reinsurance Group of America, Incorporated
U.S. Financial Reinsurance Sub-segment Pre-tax Operating Income
| Three Months Ended | Current Qtr vs. PY Quarter |
Year-to-Date | ||||||||||||||||||||||||||||||||||||
| Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||||||||||||||||
| (USD thousands) | 2011 | 2011 | 2011 | 2010 | 2010 | 2011 | 2010 | Change | ||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||
| Investment income, net of related expenses |
$ | 168 | $ | 62 | $ | (197 | ) | $ | 63 | $ | 154 | $ | 14 | $ | 33 | $ | 210 | $ | (177 | ) | ||||||||||||||||||
| Other revenue |
8,619 | 9,194 | 9,002 | 7,029 | 5,608 | 3,011 | 26,815 | 16,478 | 10,337 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total revenues |
8,787 | 9,256 | 8,805 | 7,092 | 5,762 | 3,025 | 26,848 | 16,688 | 10,160 | |||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
798 | 797 | 853 | 447 | 461 | 337 | 2,448 | 1,567 | 881 | |||||||||||||||||||||||||||||
| Other operating expenses |
1,584 | 1,469 | 1,797 | 1,067 | 940 | 644 | 4,850 | 3,156 | 1,694 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total benefits and expenses |
2,382 | 2,266 | 2,650 | 1,514 | 1,401 | 981 | 7,298 | 4,723 | 2,575 | |||||||||||||||||||||||||||||
| Operating income before income taxes |
6,405 | 6,990 | 6,155 | 5,578 | 4,361 | 2,044 | 19,550 | 11,965 | 7,585 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Operating to U.S. GAAP Reconciliation: |
||||||||||||||||||||||||||||||||||||||
| Operating income before income taxes |
6,405 | 6,990 | 6,155 | 5,578 | 4,361 | 2,044 | 19,550 | 11,965 | 7,585 | |||||||||||||||||||||||||||||
| Investment and derivative (losses) gains - non-operating |
(13 | ) | 7 | (35 | ) | (23 | ) | (44 | ) | 31 | (41 | ) | (63 | ) | 22 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Income before income taxes |
$ | 6,392 | $ | 6,997 | $ | 6,120 | $ | 5,555 | $ | 4,317 | $ | 2,075 | $ | 19,509 | $ | 11,902 | $ | 7,607 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Quarterly Financial Supplement |
Page 9 |
Reinsurance Group of America, Incorporated
Canadian Segment Pre-tax Operating Income
| Three Months Ended | Current Qtr vs. PY Quarter |
Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | ||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 185,790 | $ | 209,717 | $ | 215,028 | $ | 205,925 | $ | 205,552 | $ | (19,762 | ) | $ | 610,535 | $ | 591,281 | $ | 19,254 | |||||||||||||||||||
| Investment income, net of related expenses |
52,611 | 45,052 | 44,901 | 41,534 | 41,170 | 11,441 | 142,564 | 123,604 | 18,960 | |||||||||||||||||||||||||||||
| Investment related gains (losses), net |
1,267 | 1,183 | 1,169 | 1,187 | 938 | 329 | 3,619 | 2,748 | 871 | |||||||||||||||||||||||||||||
| Other revenue |
440 | 4,980 | 22 | 59 | 803 | (363 | ) | 5,442 | 1,087 | 4,355 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total revenues |
240,108 | 260,932 | 261,120 | 248,705 | 248,463 | (8,355 | ) | 762,160 | 718,720 | 43,440 | ||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
162,734 | 165,860 | 179,055 | 152,038 | 186,554 | (23,820 | ) | 507,649 | 504,320 | 3,329 | ||||||||||||||||||||||||||||
| Interest credited |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
32,568 | 44,422 | 47,089 | 50,966 | 26,901 | 5,667 | 124,079 | 116,606 | 7,473 | |||||||||||||||||||||||||||||
| Other operating expenses |
9,129 | 8,793 | 8,694 | 9,058 | 6,971 | 2,158 | 26,616 | 20,806 | 5,810 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total benefits and expenses |
204,431 | 219,075 | 234,838 | 212,062 | 220,426 | (15,995 | ) | 658,344 | 641,732 | 16,612 | ||||||||||||||||||||||||||||
| Operating income before income taxes |
35,677 | 41,857 | 26,282 | 36,643 | 28,037 | 7,640 | 103,816 | 76,988 | 26,828 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Operating to U.S. GAAP Reconciliation: |
||||||||||||||||||||||||||||||||||||||
| Operating income before income taxes |
35,677 | 41,857 | 26,282 | 36,643 | 28,037 | 7,640 | 103,816 | 76,988 | 26,828 | |||||||||||||||||||||||||||||
| Investment and derivative (losses) gains - non-operating |
8,729 | 2,135 | 4,389 | (454 | ) | 5,431 | 3,298 | 15,253 | 9,201 | 6,052 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Income before income taxes |
$ | 44,406 | $ | 43,992 | $ | 30,671 | $ | 36,189 | $ | 33,468 | $ | 10,938 | $ | 119,069 | $ | 86,189 | $ | 32,880 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Loss and Expense Ratios: |
||||||||||||||||||||||||||||||||||||||
| Loss ratios (creditor business) |
38.4 | % | 39.7 | % | 37.7 | % | 39.1 | % | 32.5 | % | 5.9 | % | 38.6 | % | 39.9 | % | -1.3 | % | ||||||||||||||||||||
| Loss ratios (excluding creditor business) |
96.9 | % | 88.8 | % | 97.6 | % | 84.3 | % | 96.3 | % | 0.6 | % | 94.4 | % | 97.9 | % | -3.5 | % | ||||||||||||||||||||
| Claims and other policy benefits / (net premiums + investment income) |
68.3 | % | 65.1 | % | 68.9 | % | 61.4 | % | 75.6 | % | -7.3 | % | 67.4 | % | 70.5 | % | -3.1 | % | ||||||||||||||||||||
| Policy acquisition costs and other insurance expenses (creditor business) |
52.8 | % | 57.3 | % | 55.3 | % | 56.4 | % | 55.6 | % | -2.8 | % | 55.4 | % | 53.1 | % | 2.3 | % | ||||||||||||||||||||
| Policy acquisition costs and other insurance expenses (excluding creditor business) |
10.9 | % | 12.2 | % | 11.3 | % | 15.3 | % | 9.1 | % | 1.8 | % | 11.5 | % | 10.5 | % | 1.0 | % | ||||||||||||||||||||
| Other operating expenses |
4.9 | % | 4.2 | % | 4.0 | % | 4.4 | % | 3.4 | % | 1.5 | % | 4.4 | % | 3.5 | % | 0.9 | % | ||||||||||||||||||||
| Foreign currency effect*: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 10,269 | $ | 12,409 | $ | 11,248 | $ | 8,357 | $ | 10,236 | $ | 33 | $ | 33,926 | $ | 64,463 | $ | (30,537 | ) | |||||||||||||||||||
| Operating income before income taxes |
$ | 2,571 | $ | 3,021 | $ | 453 | $ | 1,858 | $ | 292 | $ | 2,279 | $ | 6,045 | $ | 5,744 | $ | 301 | ||||||||||||||||||||
| Creditor reinsurance net premiums |
$ | 29,895 | $ | 41,613 | $ | 51,584 | $ | 47,467 | $ | 17,707 | $ | 12,188 | $ | 123,092 | $ | 128,498 | $ | (5,406 | ) | |||||||||||||||||||
Note: The loss ratios on creditor reinsurance business are normally lower than traditional reinsurance, while allowances are normally higher as a percentage of premiums.
| * | Compared to comparable prior year period |
|
Quarterly Financial Supplement |
Page 10 |
Reinsurance Group of America, Incorporated
Europe & South Africa Segment Pre-tax Operating Income
| Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Qtr vs. PY Quarter |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | |||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 286,054 | $ | 283,019 | $ | 269,120 | $ | 257,980 | $ | 232,962 | $ | 53,092 | $ | 838,193 | $ | 660,533 | $ | 177,660 | ||||||||||||||||||||
| Investment income, net of related expenses |
10,552 | 10,174 | 9,854 | 9,737 | 8,579 | 1,973 | 30,580 | 24,780 | 5,800 | |||||||||||||||||||||||||||||
| Other revenue |
1,196 | 1,745 | 1,055 | 296 | 857 | 339 | 3,996 | 1,803 | 2,193 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total revenues |
297,802 | 294,938 | 280,029 | 268,013 | 242,398 | 55,404 | 872,769 | 687,116 | 185,653 | |||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
248,890 | 242,973 | 216,932 | 195,172 | 193,377 | 55,513 | 708,795 | 539,220 | 169,575 | |||||||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
10,462 | 9,953 | 12,059 | 8,153 | 12,137 | (1,675 | ) | 32,474 | 35,808 | (3,334 | ) | |||||||||||||||||||||||||||
| Other operating expenses |
24,569 | 26,527 | 25,012 | 28,301 | 21,198 | 3,371 | 76,108 | 65,225 | 10,883 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total benefits and expenses |
283,921 | 279,453 | 254,003 | 231,626 | 226,712 | 57,209 | 817,377 | 640,253 | 177,124 | |||||||||||||||||||||||||||||
| Operating income before income taxes |
13,881 | 15,485 | 26,026 | 36,387 | 15,686 | (1,805 | ) | 55,392 | 46,863 | 8,529 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Operating to U.S. GAAP Reconciliation: |
||||||||||||||||||||||||||||||||||||||
| Operating income before income taxes |
13,881 | 15,485 | 26,026 | 36,387 | 15,686 | (1,805 | ) | 55,392 | 46,863 | 8,529 | ||||||||||||||||||||||||||||
| Investment and derivative (losses) gains - non-operating |
2,000 | 756 | 293 | (1,030 | ) | 1,808 | 192 | 3,049 | 3,614 | (565 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Income before income taxes |
$ | 15,881 | $ | 16,241 | $ | 26,319 | $ | 35,357 | $ | 17,494 | $ | (1,613 | ) | $ | 58,441 | $ | 50,477 | $ | 7,964 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Loss and Expense Ratios: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
87.0 | % | 85.9 | % | 80.6 | % | 75.7 | % | 83.0 | % | 4.0 | % | 84.6 | % | 81.6 | % | 3.0 | % | ||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
3.7 | % | 3.5 | % | 4.5 | % | 3.2 | % | 5.2 | % | -1.5 | % | 3.9 | % | 5.4 | % | -1.5 | % | ||||||||||||||||||||
| Other operating expenses |
8.6 | % | 9.4 | % | 9.3 | % | 11.0 | % | 9.1 | % | -0.5 | % | 9.1 | % | 9.9 | % | -0.8 | % | ||||||||||||||||||||
| Foreign currency effect*: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 9,234 | $ | 24,686 | $ | 6,466 | $ | (5,502 | ) | $ | (12,500 | ) | $ | 21,734 | $ | 40,386 | $ | 1,455 | $ | 38,931 | ||||||||||||||||||
| Operating income before income taxes |
$ | 669 | $ | 1,712 | $ | 233 | $ | (704 | ) | $ | (1,184 | ) | $ | 1,853 | $ | 2,614 | $ | (2,008 | ) | $ | 4,622 | |||||||||||||||||
| Critical illness net premiums |
$ | 59,679 | $ | 63,320 | $ | 60,261 | $ | 58,102 | $ | 57,340 | $ | 2,339 | $ | 183,260 | $ | 165,973 | $ | 17,287 | ||||||||||||||||||||
| * | Compared to comparable prior year period |
|
Quarterly Financial Supplement |
Page 11 |
Reinsurance Group of America, Incorporated
Asia Pacific Segment Pre-tax Operating Income
| Three Months Ended | Current Qtr | Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
vs. PY Quarter |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | |||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 328,259 | $ | 316,356 | $ | 311,517 | $ | 322,544 | $ | 273,825 | $ | 54,434 | $ | 956,132 | $ | 816,521 | $ | 139,611 | ||||||||||||||||||||
| Investment income, net of related expenses |
21,133 | 21,402 | 19,634 | 18,997 | 17,042 | 4,091 | 62,169 | 51,555 | 10,614 | |||||||||||||||||||||||||||||
| Investment related gains (losses), net |
1,452 | 1,377 | (108 | ) | 365 | 232 | 1,220 | 2,721 | 788 | 1,933 | ||||||||||||||||||||||||||||
| Other revenue |
8,557 | 7,283 | 8,492 | 6,642 | 7,462 | 1,095 | 24,332 | 19,777 | 4,555 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total revenues |
359,401 | 346,418 | 339,535 | 348,548 | 298,561 | 60,840 | 1,045,354 | 888,641 | 156,713 | |||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
254,739 | 267,362 | 247,930 | 277,926 | 220,867 | 33,872 | 770,031 | 648,457 | 121,574 | |||||||||||||||||||||||||||||
| Interest Credited |
280 | 615 | — | — | — | 280 | 895 | — | 895 | |||||||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
45,409 | 44,140 | 40,820 | 36,336 | 27,373 | 18,036 | 130,369 | 96,964 | 33,405 | |||||||||||||||||||||||||||||
| Other operating expenses |
27,598 | 26,089 | 25,127 | 26,164 | 22,932 | 4,666 | 78,814 | 67,582 | 11,232 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total benefits and expenses |
328,026 | 338,206 | 313,877 | 340,426 | 271,172 | 56,854 | 980,109 | 813,003 | 167,106 | |||||||||||||||||||||||||||||
| Operating income before income taxes |
31,375 | 8,212 | 25,658 | 8,122 | 27,389 | 3,986 | 65,245 | 75,638 | (10,393 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Operating to U.S. GAAP Reconciliation: |
||||||||||||||||||||||||||||||||||||||
| Operating income before income taxes |
31,375 | 8,212 | 25,658 | 8,122 | 27,389 | 3,986 | 65,245 | 75,638 | (10,393 | ) | ||||||||||||||||||||||||||||
| Investment and derivative (losses) gains - non-operating |
(1,625 | ) | (298 | ) | (330 | ) | 1,949 | 1,094 | (2,719 | ) | (2,253 | ) | 3,051 | (5,304 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Income before income taxes |
$ | 29,750 | $ | 7,914 | $ | 25,328 | $ | 10,071 | $ | 28,483 | $ | 1,267 | $ | 62,992 | $ | 78,689 | $ | (15,697 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Loss and Expense Ratios: |
||||||||||||||||||||||||||||||||||||||
| Claims and other policy benefits |
77.6 | % | 84.5 | % | 79.6 | % | 86.2 | % | 80.7 | % | -3.1 | % | 80.5 | % | 79.4 | % | 1.1 | % | ||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
13.8 | % | 14.0 | % | 13.1 | % | 11.3 | % | 10.0 | % | 3.8 | % | 13.6 | % | 11.9 | % | 1.7 | % | ||||||||||||||||||||
| Other operating expenses |
8.4 | % | 8.2 | % | 8.1 | % | 8.1 | % | 8.4 | % | 0.0 | % | 8.2 | % | 8.3 | % | -0.1 | % | ||||||||||||||||||||
| Foreign currency effect*: |
||||||||||||||||||||||||||||||||||||||
| Net premiums |
$ | 33,908 | $ | 40,222 | $ | 24,825 | $ | 21,020 | $ | 17,726 | $ | 16,182 | $ | 98,955 | $ | 93,968 | $ | 4,987 | ||||||||||||||||||||
| Operating income before income taxes |
$ | 3,379 | $ | 557 | $ | 1,555 | $ | 487 | $ | 978 | $ | 2,401 | $ | 5,491 | $ | 6,831 | $ | (1,340 | ) | |||||||||||||||||||
| Critical illness net premiums |
$ | 30,135 | $ | 41,003 | $ | 45,622 | $ | 52,386 | $ | 45,954 | $ | (15,819 | ) | $ | 116,760 | $ | 133,860 | $ | (17,100 | ) | ||||||||||||||||||
| * | Compared to comparable prior year period |
|
Quarterly Financial Supplement |
Page 12 |
Reinsurance Group of America, Incorporated
Corporate and Other Segment Pre-tax Operating Income
| Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Qtr vs. PY Quarter |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | |||||||||||||||||||||||||||||
| Revenues: |
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| Net premiums |
$ | 2,086 | $ | 2,288 | $ | 2,087 | $ | 2,291 | $ | 2,167 | $ | (81 | ) | $ | 6,461 | $ | 5,524 | $ | 937 | |||||||||||||||||||
| Investment income, net of related expenses |
31,015 | 31,053 | 29,694 | 29,399 | 28,616 | 2,399 | 91,762 | 77,770 | 13,992 | |||||||||||||||||||||||||||||
| Investment related gains (losses), net |
(686 | ) | 31 | 485 | (489 | ) | (794 | ) | 108 | (170 | ) | (657 | ) | 487 | ||||||||||||||||||||||||
| Other revenue |
25 | 3,001 | 3,609 | 3,684 | 2,752 | (2,727 | ) | 6,635 | 6,187 | 448 | ||||||||||||||||||||||||||||
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| Total revenues |
32,440 | 36,373 | 35,875 | 34,885 | 32,741 | (301 | ) | 104,688 | 88,824 | 15,864 | ||||||||||||||||||||||||||||
| Benefits and expenses: |
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| Claims and other policy benefits |
(119 | ) | 381 | 309 | 243 | 141 | (260 | ) | 571 | 170 | 401 | |||||||||||||||||||||||||||
| Interest credited |
(1 | ) | — | — | 1 | — | (1 | ) | (1 | ) | 13 | (14 | ) | |||||||||||||||||||||||||
| Policy acquisition costs and other insurance expenses |
(14,716 | ) | (13,403 | ) | (13,471 | ) | (13,548 | ) | (13,658 | ) | (1,058 | ) | (41,590 | ) | (40,267 | ) | (1,323 | ) | ||||||||||||||||||||
| Other operating expenses |
8,964 | 13,054 | 17,625 | 13,624 | 12,421 | (3,457 | ) | 39,643 | 37,274 | 2,369 | ||||||||||||||||||||||||||||
| Interest expense |
27,025 | 25,818 | 24,569 | 25,215 | 25,191 | 1,834 | 77,412 | 65,781 | 11,631 | |||||||||||||||||||||||||||||
| Collateral finance facility expense |
3,069 | 3,101 | 3,202 | 2,049 | 2,041 | 1,028 | 9,372 | 5,807 | 3,565 | |||||||||||||||||||||||||||||
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| Total benefits and expenses |
24,222 | 28,951 | 32,234 | 27,584 | 26,136 | (1,914 | ) | 85,407 | 68,778 | 16,629 | ||||||||||||||||||||||||||||
| Operating income (loss) before income taxes |
8,218 | 7,422 | 3,641 | 7,301 | 6,605 | 1,613 | 19,281 | 20,046 | (765 | ) | ||||||||||||||||||||||||||||
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| Operating to U.S. GAAP Reconciliation: |
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| Operating income before income taxes |
8,218 | 7,422 | 3,641 | 7,301 | 6,605 | 1,613 | 19,281 | 20,046 | (765 | ) | ||||||||||||||||||||||||||||
| Investment and derivative (losses) gains - non-operating |
(11,108 | ) | 8,666 | 4,413 | 11,082 | (663 | ) | (10,445 | ) | 1,971 | (10,974 | ) | 12,945 | |||||||||||||||||||||||||
| Gain on repurchase of collateral finance facility securities |
50,869 | — | 4,971 | — | — | 50,869 | 55,840 | — | 55,840 | |||||||||||||||||||||||||||||
| Loss on retirement of PIERS |
— | — | (4,391 | ) | — | — | — | (4,391 | ) | — | (4,391 | ) | ||||||||||||||||||||||||||
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| Income before income taxes |
$ | 47,979 | $ | 16,088 | $ | 8,634 | $ | 18,383 | $ | 5,942 | $ | 42,037 | $ | 72,701 | $ | 9,072 | $ | 63,629 | ||||||||||||||||||||
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| Foreign currency effect*: |
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| Net premiums |
$ | (12 | ) | $ | (40 | ) | $ | (52 | ) | $ | 58 | $ | (14 | ) | $ | 2 | $ | (104 | ) | $ | (19 | ) | $ | (85 | ) | |||||||||||||
| Operating income before income taxes |
$ | 227 | $ | 423 | $ | 2,393 | $ | (61 | ) | $ | 1,912 | $ | (1,685 | ) | $ | 3,043 | $ | 6,113 | $ | (3,070 | ) | |||||||||||||||||
| * | Compared to comparable prior year period |
|
Quarterly Financial Supplement |
Page 13 |
Reinsurance Group of America, Incorporated
Summary of Pre-tax Segment Operating Income
| Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
| (USD thousands) | Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Qtr vs. PY Quarter |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | |||||||||||||||||||||||||||||
| U.S. Traditional |
$ | 83,111 | $ | 93,341 | $ | 69,524 | $ | 107,095 | $ | 101,066 | $ | (17,955 | ) | $ | 245,976 | $ | 258,136 | $ | (12,160 | ) | ||||||||||||||||||
| U.S. Asset Intensive |
1,017 | 19,986 | 20,769 | 19,981 | 13,989 | (12,972 | ) | 41,772 | 46,305 | (4,533 | ) | |||||||||||||||||||||||||||
| U.S. Financial Reinsurance |
6,405 | 6,990 | 6,155 | 5,578 | 4,361 | 2,044 | 19,550 | 11,965 | 7,585 | |||||||||||||||||||||||||||||
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| Total U.S. Segment |
90,533 | 120,317 | 96,448 | 132,654 | 119,416 | (28,883 | ) | 307,298 | 316,406 | (9,108 | ) | |||||||||||||||||||||||||||
| Canadian Segment |
35,677 | 41,857 | 26,282 | 36,643 | 28,037 | 7,640 | 103,816 | 76,988 | 26,828 | |||||||||||||||||||||||||||||
| Europe & South Africa Segment |
13,881 | 15,485 | 26,026 | 36,387 | 15,686 | (1,805 | ) | 55,392 | 46,863 | 8,529 | ||||||||||||||||||||||||||||
| Asia Pacific Segment |
31,375 | 8,212 | 25,658 | 8,122 | 27,389 | 3,986 | 65,245 | 75,638 | (10,393 | ) | ||||||||||||||||||||||||||||
| Corporate and Other |
8,218 | 7,422 | 3,641 | 7,301 | 6,605 | 1,613 | 19,281 | 20,046 | (765 | ) | ||||||||||||||||||||||||||||
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| Consolidated |
$ | 179,684 | $ | 193,293 | $ | 178,055 | $ | 221,107 | $ | 197,133 | $ | (17,449 | ) | $ | 551,032 | $ | 535,941 | $ | 15,091 | |||||||||||||||||||
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|
Quarterly Financial Supplement |
Page 14 |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Cash and Invested Assets
| Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
||||||||||||||||
| Fixed maturity securities, available-for-sale |
$ | 15,557,032 | $ | 15,153,807 | $ | 14,531,154 | $ | 14,304,597 | $ | 14,169,930 | ||||||||||
| Mortgage loans on real estate |
934,694 | 908,048 | 906,869 | 885,811 | 863,873 | |||||||||||||||
| Policy loans |
1,228,890 | 1,229,663 | 1,222,016 | 1,228,418 | 1,173,148 | |||||||||||||||
| Funds withheld at interest |
5,445,886 | 5,671,844 | 5,595,146 | 5,421,952 | 5,276,511 | |||||||||||||||
| Short-term investments |
81,747 | 125,618 | 74,902 | 118,387 | 84,091 | |||||||||||||||
| Other invested assets |
1,020,043 | 799,341 | 756,377 | 707,403 | 738,830 | |||||||||||||||
| Cash and cash equivalents |
802,651 | 710,973 | 467,672 | 463,661 | 634,075 | |||||||||||||||
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| Total cash and invested assets |
$ | 25,070,943 | $ | 24,599,294 | $ | 23,554,136 | $ | 23,130,229 | $ | 22,940,458 | ||||||||||
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|||||||||||
Investment Income and Yield Summary
(Excludes Funds Withheld Portfolios)
| Three Months Ended | Current Qtr vs. PY Quarter |
Year-to-Date | ||||||||||||||||||||||||||||||||||||
| Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | |||||||||||||||||||||||||||||||
| Average invested assets at amortized cost |
$ | 17,683,301 | $ | 17,446,168 | $ | 16,762,725 | $ | 16,257,365 | $ | 15,763,396 | $ | 1,919,905 | $ | 17,071,468 | $ | 15,205,358 | $ | 1,866,110 | ||||||||||||||||||||
| Net investment income |
$ | 229,373 | $ | 228,728 | $ | 219,908 | $ | 216,176 | $ | 218,546 | $ | 10,827 | $ | 678,009 | $ | 642,144 | $ | 35,865 | ||||||||||||||||||||
| Annualized investment yield (ratio of net investment income to average invested assets) |
5.29 | % | 5.35 | % | 5.35 | % | 5.43 | % | 5.66 | % | -0.37 | % | 5.33 | % | 5.67 | % | -0.34 | % | ||||||||||||||||||||
|
Quarterly Financial Supplement |
Page 15 |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Amortized cost, gross unrealized gains and losses, and estimated fair values of fixed maturity and equity securities
(Excludes Funds Withheld Portfolios)
September 30, 2011
| Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Estimated Fair Value |
% of Total |
Other-than- temporary Impairment in AOCI |
|||||||||||||||||||
| Available-for-sale: |
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| Corporate securities |
$ | 7,277,255 | $ | 642,734 | $ | 139,062 | $ | 7,780,927 | 50.0 | % | ||||||||||||||
| Canadian and Canadian provincial governments |
2,371,738 | 1,021,793 | 17 | 3,393,514 | 21.8 | % | ||||||||||||||||||
| Residential mortgage-backed securities |
1,238,863 | 84,856 | 15,945 | 1,307,774 | 8.4 | % | (740 | ) | ||||||||||||||||
| Asset-backed securities |
412,468 | 12,638 | 52,149 | 372,957 | 2.4 | % | (5,602 | ) | ||||||||||||||||
| Commercial mortgage-backed securities |
1,330,302 | 79,539 | 82,847 | 1,326,994 | 8.5 | % | (11,638 | ) | ||||||||||||||||
| U.S. government and agencies |
224,704 | 33,444 | 65 | 258,083 | 1.7 | % | ||||||||||||||||||
| State and political subdivisions |
182,570 | 23,061 | 2,297 | 203,334 | 1.3 | % | ||||||||||||||||||
| Other foreign government securities |
888,999 | 25,943 | 1,493 | 913,449 | 5.9 | % | ||||||||||||||||||
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| Total fixed maturity securities |
$ | 13,926,899 | $ | 1,924,008 | $ | 293,875 | $ | 15,557,032 | 100.0 | % | $ | (17,980 | ) | |||||||||||
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| Non-redeemable preferred stock |
97,391 | 3,599 | 7,399 | 93,591 | 73.9 | % | ||||||||||||||||||
| Other equity securities |
33,604 | 963 | 1,566 | 33,001 | 26.1 | % | ||||||||||||||||||
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| Total equity securities |
$ | 130,995 | $ | 4,562 | $ | 8,965 | $ | 126,592 | 100.0 | % | ||||||||||||||
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|||||||||||||||
December 31, 2010
| Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Estimated Fair Value |
% of Total |
Other-than- temporary Impairment in AOCI |
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| Available-for-sale: |
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| Corporate securities |
$ | 6,826,937 | $ | 436,384 | $ | 107,816 | $ | 7,155,505 | 50.0 | % | $ | — | ||||||||||||
| Canadian and Canadian provincial governments |
2,354,418 | 672,951 | 3,886 | 3,023,483 | 21.1 | % | — | |||||||||||||||||
| Residential mortgage-backed securities |
1,443,892 | 55,765 | 26,580 | 1,473,077 | 10.3 | % | (1,650 | ) | ||||||||||||||||
| Asset-backed securities |
440,752 | 12,001 | 61,544 | 391,209 | 2.7 | % | (4,963 | ) | ||||||||||||||||
| Commercial mortgage-backed securities |
1,353,279 | 81,839 | 97,265 | 1,337,853 | 9.4 | % | (10,010 | ) | ||||||||||||||||
| U.S. government and agencies |
199,129 | 7,795 | 708 | 206,216 | 1.4 | % | — | |||||||||||||||||
| State and political subdivisions |
170,479 | 2,098 | 8,117 | 164,460 | 1.2 | % | — | |||||||||||||||||
| Other foreign government securities |
556,136 | 4,304 | 7,646 | 552,794 | 3.9 | % | — | |||||||||||||||||
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| Total fixed maturity securities |
$ | 13,345,022 | $ | 1,273,137 | $ | 313,562 | $ | 14,304,597 | 100.0 | % | $ | (16,623 | ) | |||||||||||
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| Non-redeemable preferred stock |
100,718 | 4,130 | 5,298 | 99,550 | 71.0 | % | ||||||||||||||||||
| Other equity securities |
34,832 | 6,100 | 271 | 40,661 | 29.0 | % | ||||||||||||||||||
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| Total equity securities |
$ | 135,550 | $ | 10,230 | $ | 5,569 | $ | 140,211 | 100.0 | % | ||||||||||||||
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|
Quarterly Financial Supplement |
Page 16 |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Corporate Securities by Sector (Fixed Maturities and Equities)
(Excludes Funds Withheld Portfolios)
| September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||
| Amortized Cost |
Estimated Fair Value |
% of Total | Average Credit Ratings |
Amortized Cost |
Estimated Fair Value |
% of Total | Average Credit Ratings | |||||||||||||||||||||
| Financial Institutions |
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| Banking |
$ | 1,700,912 | $ | 1,685,275 | 21.3 | % | A+ | $ | 1,739,077 | $ | 1,740,978 | 23.9 | % | A+ | ||||||||||||||
| Brokerage |
94,147 | 99,298 | 1.3 | % | A– | 98,351 | 103,902 | 1.4 | % | A– | ||||||||||||||||||
| Finance Comp. |
169,258 | 172,719 | 2.2 | % | A | 216,212 | 224,729 | 3.1 | % | A | ||||||||||||||||||
| Insurance |
368,764 | 389,934 | 4.9 | % | A– | 403,557 | 422,996 | 5.8 | % | A– | ||||||||||||||||||
| REITs |
276,607 | 286,257 | 3.6 | % | BBB+ | 178,106 | 187,587 | 2.6 | % | BBB+ | ||||||||||||||||||
| Other Finance |
239,192 | 247,631 | 3.1 | % | A– | 253,794 | 259,092 | 3.5 | % | A– | ||||||||||||||||||
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| Total Financial Institutions |
2,848,880 | 2,881,114 | 36.4 | % | 2,889,097 | 2,939,284 | 40.3 | % | ||||||||||||||||||||
| Industrials |
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| Basic |
364,780 | 394,453 | 5.0 | % | BBB | 349,522 | 376,723 | 5.2 | % | BBB | ||||||||||||||||||
| Capital Goods |
328,245 | 362,043 | 4.6 | % | BBB+ | 349,526 | 372,557 | 5.1 | % | BBB+ | ||||||||||||||||||
| Communications |
671,062 | 732,510 | 9.3 | % | BBB+ | 586,179 | 634,557 | 8.7 | % | BBB+ | ||||||||||||||||||
| Consumer Cyclical |
441,577 | 477,740 | 6.0 | % | BBB+ | 309,255 | 324,648 | 4.4 | % | BBB+ | ||||||||||||||||||
| Consumer Noncyclical |
662,423 | 749,420 | 9.5 | % | A– | 646,383 | 693,785 | 9.5 | % | A– | ||||||||||||||||||
| Energy |
397,719 | 443,579 | 5.6 | % | BBB+ | 383,293 | 414,592 | 5.7 | % | BBB+ | ||||||||||||||||||
| Technology |
241,418 | 260,122 | 3.3 | % | BBB+ | 228,702 | 238,975 | 3.3 | % | BBB+ | ||||||||||||||||||
| Transportation |
253,922 | 272,272 | 3.4 | % | BBB+ | 242,719 | 255,910 | 3.5 | % | BBB+ | ||||||||||||||||||
| Other Industrial |
58,542 | 61,285 | 0.8 | % | BBB | 50,679 | 53,767 | 0.7 | % | BBB | ||||||||||||||||||
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| Total Industrials |
3,419,688 | 3,753,424 | 47.5 | % | 3,146,258 | 3,365,514 | 46.1 | % | ||||||||||||||||||||
| Utilities |
||||||||||||||||||||||||||||
| Electric |
698,200 | 776,132 | 9.8 | % | BBB+ | 612,790 | 642,177 | 8.8 | % | BBB+ | ||||||||||||||||||
| Natural Gas |
394,853 | 441,666 | 5.6 | % | BBB | 276,402 | 303,679 | 4.2 | % | BBB+ | ||||||||||||||||||
| Other Utility |
38,202 | 46,042 | 0.6 | % | A | 23,002 | 29,700 | 0.4 | % | A– | ||||||||||||||||||
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| Total Utilities |
1,131,255 | 1,263,840 | 16.0 | % | 912,194 | 975,556 | 13.4 | % | ||||||||||||||||||||
| Other Sectors |
8,427 | 9,141 | 0.1 | % | AA | 14,938 | 15,362 | 0.2 | % | AA+ | ||||||||||||||||||
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| Total |
$ | 7,408,250 | $ | 7,907,519 | 100.0 | % | A– | $ | 6,962,487 | $ | 7,295,716 | 100.0 | % | A– | ||||||||||||||
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|
Quarterly Financial Supplement |
Page 17 |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Ratings of Fixed Maturity Securities
(Excludes Funds Withheld Portfolios)
| September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NAIC |
Rating |
Amortized Cost |
Estimated Fair Value |
% of Total |
Amortized Cost |
Estimated Fair Value |
% of Total |
Amortized Cost |
Estimated Fair Value |
% of Total |
Amortized Cost |
Estimated Fair Value |
% of Total |
Amortized Cost |
Estimated Fair Value |
% of Total |
||||||||||||||||||||||||||||||||||||||||||||||
| 1 |
AAA | $ | 2,375,876 | $ | 2,459,503 | 15.8 | % | $ | 3,261,242 | $ | 3,360,370 | 22.2 | % | $ | 3,397,610 | $ | 3,470,262 | 23.9 | % | $ | 3,516,872 | $ | 3,592,987 | 25.1 | % | $ | 3,492,193 | $ | 3,633,780 | 25.6 | % | |||||||||||||||||||||||||||||||
| 1 |
AA | 4,351,791 | 5,254,456 | 33.8 | % | 3,593,909 | 4,103,688 | 27.0 | % | 3,369,423 | 3,765,275 | 25.9 | % | 3,284,387 | 3,758,523 | 26.3 | % | 3,155,855 | 3,675,615 | 25.9 | % | |||||||||||||||||||||||||||||||||||||||||
| 1 |
A | 3,231,583 | 3,736,883 | 24.0 | % | 3,250,321 | 3,587,885 | 23.7 | % | 3,206,317 | 3,480,683 | 24.0 | % | 2,896,256 | 3,205,431 | 22.4 | % | 2,714,384 | 3,138,268 | 22.2 | % | |||||||||||||||||||||||||||||||||||||||||
| 2 |
BBB | 3,187,296 | 3,402,993 | 21.9 | % | 3,129,518 | 3,330,600 | 22.0 | % | 2,863,853 | 3,041,200 | 20.9 | % | 2,860,603 | 3,035,593 | 21.2 | % | 2,778,394 | 3,030,667 | 21.4 | % | |||||||||||||||||||||||||||||||||||||||||
| 3 |
BB | 444,042 | 423,559 | 2.7 | % | 464,363 | 466,393 | 3.1 | % | 492,097 | 497,056 | 3.4 | % | 460,675 | 450,368 | 3.2 | % | 471,013 | 440,012 | 3.1 | % | |||||||||||||||||||||||||||||||||||||||||
| 4 |
B | 229,658 | 196,617 | 1.3 | % | 248,242 | 229,591 | 1.5 | % | 218,541 | 203,594 | 1.4 | % | 239,604 | 191,287 | 1.3 | % | 237,136 | 185,668 | 1.3 | % | |||||||||||||||||||||||||||||||||||||||||
| 5 |
CCC and lower | 78,310 | 60,014 | 0.4 | % | 65,181 | 49,540 | 0.3 | % | 67,395 | 50,231 | 0.3 | % | 63,859 | 47,493 | 0.3 | % | 63,033 | 44,683 | 0.3 | % | |||||||||||||||||||||||||||||||||||||||||
| 6 |
In or near default | 28,343 | 23,007 | 0.1 | % | 28,571 | 25,740 | 0.2 | % | 21,747 | 22,853 | 0.2 | % | 22,766 | 22,915 | 0.2 | % | 21,108 | 21,237 | 0.2 | % | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 13,926,899 | $ | 15,557,032 | $ | 14,041,347 | $ | 15,153,807 | $ | 13,636,983 | $ | 14,531,154 | $ | 13,345,022 | $ | 14,304,597 | $ | 12,933,116 | $ | 14,169,930 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
Structured Fixed Maturity Securities
| September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||||||||||||||||||||||
| Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
|||||||||||||||||||||||||||||||
| Residential mortgage-backed securities: |
||||||||||||||||||||||||||||||||||||||||
| Agency |
$ | 596,072 | $ | 660,833 | $ | 637,806 | $ | 674,599 | $ | 662,505 | $ | 690,577 | $ | 636,931 | $ | 668,405 | $ | 682,621 | $ | 728,354 | ||||||||||||||||||||
| Non-agency |
642,791 | 646,941 | 682,952 | 691,185 | 712,661 | 725,551 | 806,961 | 804,672 | 837,648 | 832,934 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total residential mortgage-backed securities |
1,238,863 | 1,307,774 | 1,320,758 | 1,365,784 | 1,375,166 | 1,416,128 | 1,443,892 | 1,473,077 | 1,520,269 | 1,561,288 | ||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities |
1,330,302 | 1,326,994 | 1,333,832 | 1,359,105 | 1,344,194 | 1,365,715 | 1,353,279 | 1,337,853 | 1,257,835 | 1,235,849 | ||||||||||||||||||||||||||||||
| Asset-backed securities |
412,468 | 372,957 | 415,637 | 376,920 | 420,028 | 377,573 | 440,752 | 391,209 | 457,047 | 414,515 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total |
$ | 2,981,633 | $ | 3,007,725 | $ | 3,070,227 | $ | 3,101,809 | $ | 3,139,388 | $ | 3,159,416 | $ | 3,237,923 | $ | 3,202,139 | $ | 3,235,151 | $ | 3,211,652 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Quarterly Financial Supplement |
Page 18 |
Investments
(USD thousands)
Subprime Mortgage Exposure
(Includes Funds Withheld Portfolios)
| September 30, 2011 | ||||||||||||||||||||||||
| AAA | AA | A | ||||||||||||||||||||||
| Underwriting Year | Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
||||||||||||||||||
| 2005 & Prior |
$ | 6,924 | $ | 6,196 | $ | 23,312 | $ | 21,468 | $ | 9,599 | $ | 8,773 | ||||||||||||
| 2006 |
— | — | 2,271 | 2,109 | — | — | ||||||||||||||||||
| 2007 |
— | — | — | — | — | — | ||||||||||||||||||
| 2008 - 2011 |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 6,924 | $ | 6,196 | $ | 25,583 | $ | 23,577 | $ | 9,599 | $ | 8,773 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| BBB | Below Investment Grade | Total | ||||||||||||||||||||||
| Underwriting Year | Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
||||||||||||||||||
| 2005 & Prior |
$ | 15,199 | $ | 13,253 | $ | 72,718 | $ | 41,815 | $ | 127,752 | $ | 91,505 | ||||||||||||
| 2006 |
— | — | 2,074 | 3,088 | 4,345 | 5,197 | ||||||||||||||||||
| 2007 |
— | — | 4,602 | 2,643 | 4,602 | 2,643 | ||||||||||||||||||
| 2008 - 2011 |
6,893 | 6,748 | — | — | 6,893 | 6,748 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 22,092 | $ | 20,001 | $ | 79,394 | $ | 47,546 | $ | 143,592 | $ | 106,093 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| December 31, 2010 | ||||||||||||||||||||||||
| AAA | AA | A | ||||||||||||||||||||||
| Underwriting Year | Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
||||||||||||||||||
| 2005 & Prior |
$ | 13,343 | $ | 12,079 | $ | 29,809 | $ | 27,746 | $ | 10,504 | $ | 9,573 | ||||||||||||
| 2006 |
— | — | — | — | — | — | ||||||||||||||||||
| 2007 |
— | — | — | — | — | — | ||||||||||||||||||
| 2008 - 2010 |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 13,343 | $ | 12,079 | $ | 29,809 | $ | 27,746 | $ | 10,504 | $ | 9,573 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| BBB | Below Investment Grade | Total | ||||||||||||||||||||||
| Underwriting Year | Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
||||||||||||||||||
| 2005 & Prior |
$ | 22,608 | $ | 19,213 | $ | 71,582 | $ | 41,308 | $ | 147,846 | $ | 109,919 | ||||||||||||
| 2006 |
— | — | 2,152 | 2,508 | 2,152 | 2,508 | ||||||||||||||||||
| 2007 |
— | — | 5,279 | 3,329 | 5,279 | 3,329 | ||||||||||||||||||
| 2008 - 2010 |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 22,608 | $ | 19,213 | $ | 79,013 | $ | 47,145 | $ | 155,277 | $ | 115,756 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Quarterly Financial Supplement |
Page 19 |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
CMBS Exposure
(Includes Funds Withheld Portfolios)
| September 30, 2011 | ||||||||||||||||||||||||
| AAA | AA | A | ||||||||||||||||||||||
| Underwriting Year | Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
||||||||||||||||||
| 2005 & Prior |
$ | 144,277 | $ | 152,768 | $ | 105,813 | $ | 116,562 | $ | 34,150 | $ | 33,030 | ||||||||||||
| 2006 |
275,552 | 287,943 | 55,990 | 61,997 | 54,778 | 55,814 | ||||||||||||||||||
| 2007 |
213,210 | 225,289 | 28,104 | 23,053 | 118,465 | 120,281 | ||||||||||||||||||
| 2008 |
9,133 | 9,261 | 54,813 | 64,141 | 7,577 | 8,256 | ||||||||||||||||||
| 2009 |
— | — | 12,379 | 13,541 | 6,997 | 9,354 | ||||||||||||||||||
| 2010 |
27,939 | 28,206 | 56,262 | 60,540 | 19,475 | 20,737 | ||||||||||||||||||
| 2011 |
20,048 | 19,348 | 11,922 | 12,917 | 5,761 | 5,961 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 690,159 | $ | 722,815 | $ | 325,283 | $ | 352,751 | $ | 247,203 | $ | 253,433 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| BBB | Below Investment Grade | Total | ||||||||||||||||||||||
| Underwriting Year | Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
||||||||||||||||||
| 2005 & Prior |
$ | 32,416 | $ | 30,680 | $ | 52,459 | $ | 40,472 | $ | 369,115 | $ | 373,512 | ||||||||||||
| 2006 |
27,841 | 25,093 | 55,134 | 45,747 | 469,295 | 476,594 | ||||||||||||||||||
| 2007 |
102,387 | 104,444 | 116,843 | 85,783 | 579,009 | 558,850 | ||||||||||||||||||
| 2008 |
— | — | 24,682 | 17,481 | 96,205 | 99,139 | ||||||||||||||||||
| 2009 |
— | — | — | — | 19,376 | 22,895 | ||||||||||||||||||
| 2010 |
— | — | — | — | 103,676 | 109,483 | ||||||||||||||||||
| 2011 |
— | — | — | — | 37,731 | 38,226 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 162,644 | $ | 160,217 | $ | 249,118 | $ | 189,483 | $ | 1,674,407 | $ | 1,678,699 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NOTE: Totals include directly held investments with amortized cost of $1,330.3 million and fair value of $1,327.0 million as well as investments in funds withheld with amortized cost of $344.1 million and fair value of $351.7 million.
| December 31, 2010 | ||||||||||||||||||||||||
| AAA | AA | A | ||||||||||||||||||||||
| Underwriting Year | Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
||||||||||||||||||
| 2005 & Prior |
$ | 261,763 | $ | 282,522 | $ | 81,795 | $ | 85,675 | $ | 63,234 | $ | 63,491 | ||||||||||||
| 2006 |
314,043 | 328,422 | 46,372 | 50,217 | 48,851 | 49,949 | ||||||||||||||||||
| 2007 |
255,589 | 270,731 | 29,493 | 23,512 | 92,910 | 96,790 | ||||||||||||||||||
| 2008 |
29,547 | 33,115 | 37,291 | 39,657 | 7,495 | 7,886 | ||||||||||||||||||
| 2009 |
8,020 | 7,877 | 3,088 | 3,505 | 6,834 | 9,675 | ||||||||||||||||||
| 2010 |
69,580 | 68,879 | 5,193 | 4,800 | 10,970 | 10,928 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 938,542 | $ | 991,546 | $ | 203,232 | $ | 207,366 | $ | 230,294 | $ | 238,719 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| BBB | Below Investment Grade | Total | ||||||||||||||||||||||
| Underwriting Year | Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
||||||||||||||||||
| 2005 & Prior |
$ | 67,341 | $ | 66,392 | $ | 56,882 | $ | 44,770 | $ | 531,015 | $ | 542,850 | ||||||||||||
| 2006 |
32,651 | 31,646 | 56,636 | 39,127 | 498,553 | 499,361 | ||||||||||||||||||
| 2007 |
99,796 | 105,962 | 125,123 | 77,459 | 602,911 | 574,454 | ||||||||||||||||||
| 2008 |
— | — | 24,085 | 15,234 | 98,418 | 95,892 | ||||||||||||||||||
| 2009 |
— | — | — | — | 17,942 | 21,057 | ||||||||||||||||||
| 2010 |
— | — | — | — | 85,743 | 84,607 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 199,788 | $ | 204,000 | $ | 262,726 | $ | 176,590 | $ | 1,834,582 | $ | 1,818,221 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NOTE: Totals include directly held investments with amortized cost of $1,353.3 million and fair value of $1,337.9 million as well as investments in funds withheld with amortized cost of $481.3 million and fair value of $480.4 million.
|
Quarterly Financial Supplement |
Page 20 |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Gross Unrealized Losses Aging
Fixed Maturity Securities
| September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||||||||||||||||||||||
| Gross Unrealized Losses |
% of Total | Gross Unrealized Losses |
% of Total | Gross Unrealized Losses |
% of Total | Gross Unrealized Losses |
% of Total | Gross Unrealized Losses |
% of Total | |||||||||||||||||||||||||||||||
| Less than 20% |
$ | 139,671 | 46.1 | % | $ | 120,770 | 51.7 | % | $ | 142,936 | 53.4 | % | $ | 143,451 | 44.9 | % | $ | 86,770 | 29.1 | % | ||||||||||||||||||||
| 20% or more for less than six months |
49,034 | 16.2 | % | 7,742 | 3.3 | % | 7,229 | 2.7 | % | 17,293 | 5.4 | % | 45,706 | 15.3 | % | |||||||||||||||||||||||||
| 20% or more for six months or greater |
105,170 | 34.7 | % | 102,017 | 43.6 | % | 110,349 | 41.2 | % | 152,818 | 47.9 | % | 160,785 | 53.9 | % | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total |
$ | 293,875 | 97.0 | % | $ | 230,529 | 98.6 | % | $ | 260,514 | 97.3 | % | $ | 313,562 | 98.2 | % | $ | 293,261 | 98.3 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Equity Securities | ||||||||||||||||||||||||||||||||||||||||
| September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | ||||||||||||||||||||||||||||||||||||
| Gross Unrealized Losses |
% of Total | Gross Unrealized Losses |
% of Total | Gross Unrealized Losses |
% of Total | Gross Unrealized Losses |
% of Total | Gross Unrealized Losses |
% of Total | |||||||||||||||||||||||||||||||
| Less than 20% |
$ | 4,774 | 1.6 | % | $ | 3,019 | 1.3 | % | $ | 5,196 | 1.9 | % | $ | 2,953 | 0.9 | % | $ | 2,921 | 1.0 | % | ||||||||||||||||||||
| 20% or more for less than six months |
4,142 | 1.4 | % | 223 | 0.1 | % | 691 | 0.3 | % | 821 | 0.3 | % | 265 | 0.1 | % | |||||||||||||||||||||||||
| 20% or more for six months or greater |
49 | 0.0 | % | 48 | 0.0 | % | 1,304 | 0.5 | % | 1,795 | 0.6 | % | 1,857 | 0.6 | % | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total |
$ | 8,965 | 3.0 | % | $ | 3,290 | 1.4 | % | $ | 7,191 | 2.7 | % | $ | 5,569 | 1.8 | % | $ | 5,043 | 1.7 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Quarterly Financial Supplement |
Page 21 |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Fixed Maturities and Equity Securities Below Amortized Cost
(Excludes Funds Withheld Portfolios)
| As of September 30, 2011 | ||||||||||||||||||||||||
| Less than 12 months | Equal to or greater than 12 months | Total | ||||||||||||||||||||||
| Estimated Fair Value |
Gross Unrealized Losses |
Estimated Fair Value |
Gross Unrealized Losses |
Estimated Fair Value |
Gross Unrealized Losses |
|||||||||||||||||||
| Investment grade securities: |
||||||||||||||||||||||||
| Corporate securities |
$ | 928,293 | $ | 43,765 | $ | 304,544 | $ | 70,847 | $ | 1,232,837 | $ | 114,612 | ||||||||||||
| Canadian and Canadian provincial governments |
1,982 | 17 | — | — | 1,982 | 17 | ||||||||||||||||||
| Residential mortgage-backed securities |
117,719 | 3,135 | 57,179 | 10,396 | 174,898 | 13,531 | ||||||||||||||||||
| Asset-backed securities |
63,953 | 1,558 | 80,006 | 30,065 | 143,959 | 31,623 | ||||||||||||||||||
| Commercial mortgage-backed securities |
156,938 | 10,681 | 68,236 | 23,134 | 225,174 | 33,815 | ||||||||||||||||||
| U.S. government and agencies |
1,164 | 62 | — | 3 | 1,164 | 65 | ||||||||||||||||||
| State and political subdivisions |
13,811 | 967 | 12,476 | 1,067 | 26,287 | 2,034 | ||||||||||||||||||
| Other foreign government securities |
85,992 | 657 | 30,493 | 836 | 116,485 | 1,493 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Investment grade securities |
$ | 1,369,852 | $ | 60,842 | $ | 552,934 | $ | 136,348 | $ | 1,922,786 | $ | 197,190 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Non-investment grade securities: |
||||||||||||||||||||||||
| Corporate securities |
271,597 | 15,453 | 72,395 | 8,997 | 343,992 | 24,450 | ||||||||||||||||||
| Residential mortgage-backed securities |
13,809 | 1,149 | 10,824 | 1,265 | 24,633 | 2,414 | ||||||||||||||||||
| Asset-backed securities |
2,542 | 719 | 21,943 | 19,807 | 24,485 | 20,526 | ||||||||||||||||||
| Commercial mortgage-backed securities |
32,657 | 6,571 | 69,674 | 42,461 | 102,331 | 49,032 | ||||||||||||||||||
| State and political subdivisions |
3,965 | 263 | — | — | 3,965 | 263 | ||||||||||||||||||
| Other foreign government securities |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Non-investment grade securities |
$ | 324,570 | $ | 24,155 | $ | 174,836 | $ | 72,530 | $ | 499,406 | $ | 96,685 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total fixed maturity securities |
$ | 1,694,422 | $ | 84,997 | $ | 727,770 | $ | 208,878 | $ | 2,422,192 | $ | 293,875 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Non-redeemable preferred stock |
20,705 | 2,565 | 18,453 | 4,834 | 39,158 | 7,399 | ||||||||||||||||||
| Other equity securities |
2,184 | 806 | 6,081 | 760 | 8,265 | 1,566 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Equity securities |
$ | 22,889 | $ | 3,371 | $ | 24,534 | $ | 5,594 | $ | 47,423 | $ | 8,965 | ||||||||||||
|
|
|
|
|
|
|
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| Total number of securities in an unrealized loss position |
606 | 405 | 1,011 | |||||||||||||||||||||
| As of December 31, 2010 | ||||||||||||||||||||||||
| Less than 12 months | Equal to or greater than 12 months | Total | ||||||||||||||||||||||
| Estimated Fair Value |
Gross Unrealized Losses |
Estimated Fair Value |
Gross Unrealized Losses |
Estimated Fair Value |
Gross Unrealized Losses |
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| Investment grade securities: |
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| Corporate securities |
$ | 1,170,016 | $ | 34,097 | $ | 368,128 | $ | 61,945 | $ | 1,538,144 | $ | 96,042 | ||||||||||||
| Canadian and Canadian provincial governments |
118,585 | 3,886 | — | — | 118,585 | 3,886 | ||||||||||||||||||
| Residential mortgage-backed securities |
195,406 | 4,986 | 105,601 | 13,607 | 301,007 | 18,593 | ||||||||||||||||||
| Asset-backed securities |
23,065 | 570 | 131,172 | 38,451 | 154,237 | 39,021 | ||||||||||||||||||
| Commercial mortgage-backed securities |
132,526 | 4,143 | 109,158 | 29,059 | 241,684 | 33,202 | ||||||||||||||||||
| U.S. government and agencies |
11,839 | 708 | — | — | 11,839 | 708 | ||||||||||||||||||
| State and political subdivisions |
68,229 | 2,890 | 31,426 | 5,227 | 99,655 | 8,117 | ||||||||||||||||||
| Other foreign government securities |
322,363 | 3,142 | 43,796 | 4,504 | 366,159 | 7,646 | ||||||||||||||||||
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| Investment grade securities |
2,042,029 | 54,422 | 789,281 | 152,793 | 2,831,310 | 207,215 | ||||||||||||||||||
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| Non-investment grade securities: |
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| Corporate securities |
58,420 | 1,832 | 91,205 | 9,942 | 149,625 | 11,774 | ||||||||||||||||||
| Residential mortgage-backed securities |
1,162 | 605 | 38,206 | 7,382 | 39,368 | 7,987 | ||||||||||||||||||
| Asset-backed securities |
— | — | 23,356 | 22,523 | 23,356 | 22,523 | ||||||||||||||||||
| Commercial mortgage-backed securities |
— | — | 89,170 | 64,063 | 89,170 | 64,063 | ||||||||||||||||||
| State and political subdivisions |
— | — | — | — | — | — | ||||||||||||||||||
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| Non-investment grade securities |
59,582 | 2,437 | 241,937 | 103,910 | 301,519 | 106,347 | ||||||||||||||||||
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| Total fixed maturity securities |
$ | 2,101,611 | $ | 56,859 | $ | 1,031,218 | $ | 256,703 | $ | 3,132,829 | $ | 313,562 | ||||||||||||
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| Non-redeemable preferred stock |
15,987 | 834 | 28,549 | 4,464 | 44,536 | 5,298 | ||||||||||||||||||
| Other equity securities |
6,877 | 271 | 318 | — | 7,195 | 271 | ||||||||||||||||||
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| Total Equity securities |
$ | 22,864 | $ | 1,105 | $ | 28,867 | $ | 4,464 | $ | 51,731 | $ | 5,569 | ||||||||||||
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| Total number of securities in an unrealized loss position |
520 | 508 | 1,028 | |||||||||||||||||||||
|
Quarterly Financial Supplement |
Page 22 |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Consolidated Investment Related Gains and Losses
| Three Months Ended | Current Qtr vs. PY Quarter |
Year-to-Date | ||||||||||||||||||||||||||||||||||||
| Sept. 30, 2011 |
June 30, 2011 |
March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
Change | |||||||||||||||||||||||||||||||
| Fixed Maturity and Equity Securities: |
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| Other-than-temporary impairment losses on fixed maturities |
$ | (11,911 | ) | $ | (5,582 | ) | $ | (1,556 | ) | $ | (16,097 | ) | $ | (4,904 | ) | $ | (7,007 | ) | $ | (19,049 | ) | $ | (15,823 | ) | $ | (3,226 | ) | |||||||||||
| Portion of loss recognized in accumulated other comprehensive income (before taxes) |
3,089 | 292 | — | (186 | ) | 26 | 3,063 | 3,381 | 2,231 | 1,150 | ||||||||||||||||||||||||||||
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| Net other-than-temporary impairment losses on fixed maturities recognized in earnings |
(8,822 | ) | (5,290 | ) | (1,556 | ) | (16,283 | ) | (4,878 | ) | (3,944 | ) | (15,668 | ) | (13,592 | ) | (2,076 | ) | ||||||||||||||||||||
| Impairment losses on equity securities |
— | (3,680 | ) | — | — | — | — | (3,680 | ) | (32 | ) | (3,648 | ) | |||||||||||||||||||||||||
| Gain on investment activity |
34,840 | 28,207 | 29,376 | 26,124 | 39,371 | (4,531 | ) | 92,423 | 74,833 | 17,590 | ||||||||||||||||||||||||||||
| Loss on investment activity |
(7,182 | ) | (6,653 | ) | (6,914 | ) | (6,763 | ) | (7,773 | ) | 591 | (20,749 | ) | (21,967 | ) | 1,218 | ||||||||||||||||||||||
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| Net gain/(loss) on fixed maturity and equity securities |
18,836 | 12,584 | 20,906 | 3,078 | 26,720 | (7,884 | ) | 52,326 | 39,242 | 13,084 | ||||||||||||||||||||||||||||
| Other impairment losses and change in mortgage loan provision |
(2,370 | ) | (3,186 | ) | 576 | 1,506 | (5,087 | ) | 2,717 | (4,980 | ) | (7,482 | ) | 2,502 | ||||||||||||||||||||||||
| Other non-derivative gain/(loss), net |
5,698 | 4,645 | 4,696 | 4,751 | 4,644 | 1,054 | 15,039 | 8,984 | 6,055 | |||||||||||||||||||||||||||||
| Free-standing Derivatives: |
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| Credit Default Swaps |
(10,018 | ) | 988 | 892 | 4,340 | 3,730 | (13,748 | ) | (8,138 | ) | 446 | (8,584 | ) | |||||||||||||||||||||||||
| Interest Rate Swaps - non-hedged |
142,907 | 25,343 | (10,730 | ) | (79,546 | ) | 49,825 | 93,082 | 157,520 | 148,280 | 9,240 | |||||||||||||||||||||||||||
| Interest Rate Swaps - hedged |
258 | 205 | 126 | 19 | 239 | 19 | 589 | 539 | 50 | |||||||||||||||||||||||||||||
| Futures |
36,217 | (2,873 | ) | (11,423 | ) | (23,766 | ) | (42,270 | ) | 78,487 | 21,921 | (21,192 | ) | 43,113 | ||||||||||||||||||||||||
| CPI Swaps |
(219 | ) | 503 | 811 | 438 | (508 | ) | 289 | 1,095 | 524 | 571 | |||||||||||||||||||||||||||
| Equity options |
30,530 | 3,919 | (4,568 | ) | (2,402 | ) | (731 | ) | 31,261 | 29,881 | (604 | ) | 30,485 | |||||||||||||||||||||||||
| Currency Forwards |
1,374 | 595 | (855 | ) | 1,226 | 1,543 | (169 | ) | 1,114 | 2,161 | (1,047 | ) | ||||||||||||||||||||||||||
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| Total free-standing derivatives |
201,049 | 28,680 | (25,747 | ) | (99,691 | ) | 11,828 | 189,221 | 203,982 | 130,154 | 73,828 | |||||||||||||||||||||||||||
| Embedded Derivatives: |
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| Modified coinsurance and funds withheld treaties |
(102,574 | ) | 10,525 | 90,535 | 43,780 | (38,653 | ) | (63,921 | ) | (1,514 | ) | 116,494 | (118,008 | ) | ||||||||||||||||||||||||
| GMXB |
(260,239 | ) | (25,860 | ) | 32,654 | 121,209 | (16,232 | ) | (244,007 | ) | (253,445 | ) | (149,995 | ) | (103,450 | ) | ||||||||||||||||||||||
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| Total embedded derivatives |
(362,813 | ) | (15,335 | ) | 123,189 | 164,989 | (54,885 | ) | (307,928 | ) | (254,959 | ) | (33,501 | ) | (221,458 | ) | ||||||||||||||||||||||
| Net gain/(loss) on total derivatives |
(161,764 | ) | 13,345 | 97,442 | 65,298 | (43,057 | ) | (118,707 | ) | (50,977 | ) | 96,653 | (147,630 | ) | ||||||||||||||||||||||||
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| Total investment related gains / (losses), net |
$ | (139,600 | ) | $ | 27,388 | $ | 123,620 | $ | 74,633 | $ | (16,780 | ) | $ | (122,820 | ) | $ | 11,408 | $ | 137,397 | $ | (125,989 | ) | ||||||||||||||||
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|
Quarterly Financial Supplement |
Page 23 |