Investment Philosophy - The investment philosophy focuses on buying high-quality stocks and great businesses [1] - Preferred businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their invested capital over long periods of time [1] Analyst's Position - The analyst has no stock, option, or similar derivative position in any of the companies mentioned [2] - The analyst has no plans to initiate any such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not receiving compensation for it (other than from Seeking Alpha) [2] - The analyst has no business relationship with any company whose stock is mentioned in the article [2] Seeking Alpha's Disclosure - Past performance is no guarantee of future results [3] - No recommendation or advice is being given as to whether any investment is suitable for a particular investor [3] - Any views or opinions expressed may not reflect those of Seeking Alpha as a whole [3] - Seeking Alpha is not a licensed securities dealer, broker, or US investment adviser or investment bank [3] - Analysts are third-party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body [3]

Valuation and Market Position - RGA shares are trading at a discount with a forward price-to-book value of 1.24X, lower than the industry average of 1.96X, the Finance sector's 3.99X, and the Zacks S&P 500 Composite's 8.85X [1] - The stock is attractively valued compared to competitors like Primerica, Manulife Financial, and Sun Life Financial [2] - RGA has a market capitalization of $13.88 billion and an average trading volume of 0.3 million shares over the last three months [6] Growth and Earnings - RGA's expected long-term earnings growth rate is 10.4%, outperforming the industry average of 4.6% [4] - The company has consistently beaten earnings estimates in the last four quarters with an average surprise of 17.74% [7] - The consensus estimate for 2025 earnings per share indicates a year-over-year increase of 5.4% from 2024 [8] - The Zacks Consensus Estimate for 2024 earnings per share shows an 8.9% year-over-year increase, with revenues expected to reach $22.36 billion, a 17.4% improvement [17] Financial Performance and Capital Management - RGA's return on invested capital (ROIC) in the trailing 12 months was 6.4%, higher than the industry average of 0.6% [9] - The company exited Q3 2024 with excess capital of around $0.7 billion, reflecting a solid capital position [14] - RGA has maintained a free cash flow conversion rate of over 85% in recent quarters [21] Business Expansion and Market Leadership - RGA is a leader in the traditional U S and Latin American markets, with a mature individual mortality business providing stable earnings [5] - The company has expanded its product line with market-leading services, capabilities, expertise, and innovation [5] - In Canada, RGA is a market leader with a sizable block of in-force business and expects steady demand for longevity insurance [19] Technological and Product Innovation - RGA is a global biometric liability reinsurance leader, with favorable biometrics experience over the last five quarters [12] - The company continues to integrate technology into its products, enhancing its market position [12] Market Performance and Analyst Sentiment - RGA shares have gained 31.1% over the past year, outperforming the industry's growth of 25.6%, the Zacks S&P 500 index's 27.4%, and the Finance sector's 18.3% [16] - The Zacks Consensus Estimate for 2025 moved 0.3% higher in the last 30 days, reflecting analyst optimism [13] Growth Opportunities - Demand for protection products among the emerging global middle class and aging populations creates growth opportunities [11] - RGA expects to deploy capital into attractive growth opportunities in organic flow and in-force block transactions while returning excess capital to shareholders [14][20]

Zacks Rating Upgrade for Reinsurance Group - Reinsurance Group (RGA) has been upgraded to a Zacks Rank 2 (Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1] - The Zacks rating system relies on changes in a company's earnings picture, tracking EPS estimates for the current and following years through the Zacks Consensus Estimate [1] - The upgrade indicates positivity about Reinsurance Group's earnings outlook, which could translate into buying pressure and an increase in its stock price [3] Earnings Estimate Revisions and Stock Price Movement - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4] - Institutional investors use earnings estimates to calculate the fair value of a company's shares, and their transactions of large amounts of shares lead to price movements [4] - Rising earnings estimates and the consequent rating upgrade for Reinsurance Group imply an improvement in the company's underlying business, which investors may appreciate by pushing the stock higher [5] Zacks Rank System and Its Effectiveness - The Zacks Rank system uses four factors related to earnings estimates to classify stocks into five groups, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - The system maintains an equal proportion of 'buy' and 'sell' ratings for over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating and the next 15% receiving a 'Buy' rating [9] - Reinsurance Group's placement in the top 20% of Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term [10][11] Reinsurance Group's Earnings Estimates - For the fiscal year ending December 2024, Reinsurance Group is expected to earn $21.93 per share, a 10.3% increase from the year-ago reported number [8] - Over the past three months, the Zacks Consensus Estimate for Reinsurance Group has increased by 1.1%, reflecting steady upward revisions by analysts [8]

Stock Performance and Market Position - RGA shares have rallied 41.6% YTD, outperforming the industry's growth of 31.5%, the Finance sector's return of 20.9%, and the S&P 500's return of 24.5% [1] - The stock is currently priced at $229.17, slightly below its 52-week high of $233.14, with a market capitalization of $15.09 billion [1] - RGA is trading above its 50-day and 200-day simple moving averages of $218.40 and $203.60, respectively, indicating strong upward momentum [4] Earnings and Growth Projections - RGA has beaten earnings estimates in each of the last four quarters, with an average surprise of 17.74% [5] - The Zacks Consensus Estimate for 2024 earnings per share indicates a year-over-year increase of 10.3%, with revenues expected to grow by 17.4% to $22.36 billion [6] - The expected long-term earnings growth rate is 10.4%, significantly higher than the industry average of 4.6% [7] Business Segments and Market Leadership - RGA has strong momentum in U.S. Traditional, Longevity/PRT, Asia Asset-Intensive, and Asia Traditional segments, supported by solid growth projections [3] - The company is a leader in the U.S. and Latin American traditional markets, with a mature individual mortality business providing stable earnings and capital generation [10] - In Canada, RGA is a market leader with a sizable block of in-force business, and longevity insurance is expected to witness steady demand and long-term growth [11] Capital Management and Technological Advancements - RGA has a return on invested capital (ROIC) of 6.4% in the trailing 12 months, significantly higher than the industry average of 0.6% [8] - The company has maintained a free cash flow conversion rate of over 85% for many quarters, reflecting solid earnings [13] - RGA is well-capitalized, with excess capital of around $0.7 billion at the end of Q2 2024, and actively deploys capital into growth opportunities while returning excess capital to shareholders [15] Analyst Sentiment and Valuation - Two out of six analysts covering RGA have raised estimates for 2024, and three have raised estimates for 2025, with consensus estimates moving 0.6% and 1.1% north, respectively, in the past 30 days [9] - RGA has a VGM Score of A, indicating attractive value, growth, and momentum, and a Zacks Rank 2 (Buy) [14] Industry Comparison - Other top-ranked life insurance companies include Abacus Life, Inc. (ABL), Manulife Financial Corp (MFC), and Primerica, Inc. (PRI), each carrying a Zacks Rank 2 [16] - ABL's 2024 and 2025 earnings are expected to grow by 19.2% and 22.4%, respectively, while MFC's earnings are projected to grow by 6.6% and 9.2% [17][18] - PRI's 2024 and 2025 earnings are expected to grow by 18.9% and 7.9%, respectively, with shares climbing 44.3% YTD [19][20]

Company Performance - Reinsurance Group of America (RGA) has experienced strong performance over the past year, driven by robust underwriting results and favorable conditions in the pension-risk transfer and longevity markets [1] - The company benefits from a well-managed investment portfolio, strong capital reserves, and expanding global operations [1] Industry Insights - The pension-risk transfer and longevity markets have provided significant tailwinds for RGA, contributing to its recent success [1] Expert Perspective - Joseph Jones, a professor at The University of Southern Mississippi, has over fifteen years of experience studying the market, with a focus on portfolio construction from a dividend growth investor's perspective [1]

Zacks Premium and Style Scores Overview - Zacks Premium offers tools like daily updates of Zacks Rank and Industry Rank, access to Equity Research reports, and Premium stock screens to help investors make informed decisions [1] - Zacks Style Scores complement the Zacks Rank by rating stocks based on value, growth, and momentum characteristics, helping investors identify stocks with high potential to outperform the market [2][3] Zacks Style Scores Breakdown - **Value Score**: Focuses on identifying undervalued stocks using metrics like P/E, PEG, Price/Sales, and Price/Cash Flow ratios [3] - **Growth Score**: Evaluates a company's future prospects and financial health by analyzing projected and historic earnings, sales, and cash flow [4] - **Momentum Score**: Identifies stocks with strong price or earnings trends using factors like one-week price change and monthly percentage change in earnings estimates [4] - **VGM Score**: Combines Value, Growth, and Momentum Scores to provide a comprehensive rating for stocks, helping investors narrow down the most attractive opportunities [5] Zacks Rank and Style Scores Integration - Zacks Rank uses earnings estimate revisions to rate stocks, with 1 (Strong Buy) stocks delivering an average annual return of +25.41% since 1988, outperforming the S&P 500 [6][7] - Combining Zacks Rank 1 or 2 with Style Scores of A or B maximizes the probability of success, while stocks with 3 (Hold) rank should also have high Style Scores for upside potential [8][9] Reinsurance Group of America (RGA) Analysis - RGA holds a Zacks Rank 2 (Buy) and a VGM Score of A, making it a strong candidate for investors [10] - The company has a Momentum Style Score of B, with shares up 5.2% over the past four weeks, and an average earnings surprise of 17.7% [10][11] - RGA is a global leader in life and health reinsurance and financial solutions, operating across multiple regions including the US, Latin America, Europe, and Asia [12]

Financial Data and Key Metrics - Adjusted operating earnings excluding notable items were $6 13 per share, a record quarter for the company [6] - Adjusted operating return on equity (ROE) excluding notable items was 15 5% over the past year, exceeding intermediate-term targets [6] - Pretax adjusted operating income was $314 million for the quarter, or $3 62 per share after tax, while excluding notable items, it was $508 million or $6 13 per share after tax [25] - The value of in-force business margins increased by $4 6 billion or 13 9% over the first nine months of 2024, reaching $37 6 billion [27][43] - Premiums grew by 3 2% for the quarter, with traditional business premiums up 8 5% for the quarter and 7 9% year-to-date on a constant currency basis [28][29] Business Line Performance - In Asia, the company saw favorable conditions, particularly in Korea, Mainland China, and Hong Kong, with exclusive transactions driving significant growth [9][10][11][12] - The U S Traditional business had a strong quarter, with over 20 new business wins, including a significant transaction with American National [15] - The Pension Risk Transfer (PRT) and longevity market in the U S and UK showed strong performance, with a robust pipeline and record new business in the UK [16] - The Asia asset-intensive business expanded in Korea, completing two coinsurance transactions, including one with a market leader for an asset size equivalent to approximately $500 million [17] Market Performance - In Asia, the company linked strategies, capabilities, and data across the region, tailoring and innovating for each market [14] - The U S market presented increasingly attractive opportunities, with strong premium growth of 6 7% for the quarter [29] - The UK market continued to perform well, with a market-leading digital underwriting system driving exclusive business wins [16] Strategic Direction and Industry Competition - The company focused on long-term shareholder value through optimizing new business activities and balance sheet management [7] - Exclusive and higher-value business, termed "creation business," has been the majority of new business embedded value for the past one to two years [8] - The company is actively exploring alternative capital sources, including the imminent completion of a capital raise for Ruby Re [21] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum, strategy, and execution, with a focus on sustaining future growth and diversifying capital sources [23] - The company expects to continue seeing attractive opportunities across geographies and business lines, with a strong pipeline for future growth [45] Other Important Information - The company initiated a transaction to recapture retroceded business, expected to generate $1 5 billion in long-term value and be accretive to ROE and PTAOI in 2025 and beyond [19] - The effective tax rate for the quarter was 23%, below the expected range, primarily due to income earned in non-U S jurisdictions [29] - The company completed the annual actuarial assumption review, resulting in a $58 million unfavorable impact to current period pretax adjusted operating income but a positive $100 million contribution to the value of in-force business margins [30] Q&A Session Summary Question: Excess Capital Redefinition - The company primarily uses capital for business growth, including potential opportunities on the asset side, such as private asset origination [47] Question: Growth Opportunity in Asia - The company leverages its strong local teams and biometric capabilities to adapt and create new products, which can be exported to other global markets [49][50] Question: Recapture Decision - The decision to recapture the in-force block was entirely the company's, driven by raising the retention limit and the block's profitability over the past 10 years [52] Question: Capital Backing for Recaptured Business - The recapture increases mortality exposure by 1% to 2%, with the excess capital figure already including the slight increase in risk capital [54] Question: Long-Term Care (LTC) Exposure - The company has modest LTC exposure, with $4 billion of reserves on the books, and will consider transactions if the risk aligns with its thresholds [59][60] Question: Mortality Assumptions - The company expects excess mortality to continue for four to five years, with modest reserve releases consistent with recent experience [62] Question: Balance Sheet Optimization - The company is in the early stages of portfolio optimization and in-force management actions, with significant opportunities remaining [74] Question: Ruby Re Economics - Ruby Re generates fee streams from origination, admin, and asset management, contributing to the company's earnings [78] Question: Japan Regulatory Environment - The company sees early-stage opportunities in Japan due to regulatory changes, with clients spreading transactions over several years [82][83] Question: U S Financial Solutions Performance - The U S Financial Solutions segment saw lower contributions from new business, but the PRT side performed well [85] Question: Recapture Volatility - The recapture adds minimal volatility, with 90% of the business in uncapped cohorts and low double-digit millions of volatility expected annually [88][89] Question: Excess Capital and Ratings - The company's excess capital view incorporates internal, regulatory, and rating agency perspectives, with third-party validation of the value of in-force business [95][96]

Revenue and Income - Net premiums for the three months ended September 30, 2024, were $4.391 billion, compared to $4.255 billion in the same period in 2023, representing a 3.2% increase[8] - Net investment income for the nine months ended September 30, 2024, was $3.231 billion, up from $2.635 billion in 2023, a 22.6% increase[8] - Total revenues for the nine months ended September 30, 2024, reached $16.866 billion, compared to $13.560 billion in 2023, a 24.4% increase[8] - Net income for the nine months ended September 30, 2024, was $574 million, down from $749 million in 2023, a 23.4% decrease[8] - Total comprehensive income for the nine months ended September 30, 2024, was $2.215 billion, compared to $1.287 billion in 2023, a 72.1% increase[10] - Net income for the nine months ended September 30, 2024, was $574 million, compared to $749 million in the same period in 2023[15] - Total other comprehensive income (loss) for the nine months ended September 30, 2024, was $1,641 million, compared to $538 million in the same period in 2023[13] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $7,770 million, compared to $2,818 million in the same period in 2023[15] - Net cash used in investing activities for the nine months ended September 30, 2024, was $8,383 million, compared to $2,592 million in the same period in 2023[15] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $2,864 million, compared to a net cash used of $271 million in the same period in 2023[15] - Basic earnings per share for the nine months ended September 30, 2024, was $8.64, compared to $11.19 in the same period in 2023[18] - Diluted earnings per share for the nine months ended September 30, 2024, was $8.53, compared to $11.06 in the same period in 2023[18] - Net investment income for the nine months ended September 30, 2024, was $3,231 million, up from $2,635 million in the same period in 2023[82] - Investment-related losses, net, were $498 million for the nine months ended September 30, 2024, compared to $326 million in the same period in 2023[83] - Fixed maturity securities available-for-sale generated $933 million in investment income for the three months ended September 30, 2024, up from $707 million in the same period in 2023[82] - Mortgage loans contributed $290 million to net investment income for the nine months ended September 30, 2024, compared to $238 million in the same period in 2023[82] - Net investment income for the period was $3 million, with investment-related gains (losses) net at $4 million[139] - Total gains/losses (realized/unrealized) for Level 3 assets and liabilities held at the end of the period were $3 million[139] - Interest credited included in other comprehensive income (loss) was $14 million[140] - Purchases during the period amounted to $680 million, while sales and settlements were $51 million and $282 million, respectively[140] - Net investment income increased due to a higher average asset base and interest rates, with average invested assets at amortized cost totaling $38.2 billion in 2024 compared to $35.9 billion in 2023[174] - The average yield on investments, excluding spread-related business, was 5.08% in Q3 2024, up from 4.72% in Q3 2023[174] - The company repositioned its portfolio, generating net capital losses of $41 million in Q3 2024 compared to $49 million in Q3 2023[174] - Net investment income rose by $31 million (15.9%) to $226 million for the three months ended September 30, 2024, compared to $195 million in 2023[182] - Net investment income increased by $52 million (82.5%) for the three months ended September 30, 2024, compared to the same period in 2023, due to higher investment yields[188] - Net investment income rose by $6 million (9.7%) for the three months and $9 million (4.9%) for the nine months ended September 30, 2024, due to an increase in the invested asset base[191][192] - Net investment income in Asia Pacific operations grew by $72 million (40.7%) for the three months ended September 30, 2024, due to higher yields and increased invested assets[203] Equity and Shareholder Returns - Total RGA, Inc. shareholders' equity as of September 30, 2024, was $11.127 billion, up from $8.063 billion in 2023, a 38.0% increase[12] - Dividends to shareholders for the nine months ended September 30, 2024, were $0.89 per share, compared to $0.85 per share in 2023[12] - Dividends to shareholders for the nine months ended September 30, 2024, were $171 million, compared to $163 million in the same period in 2023[13] - Total equity as of September 30, 2024, was $11,217 million, compared to $8,153 million as of September 30, 2023[13] - The company's board of directors authorized a share repurchase program for up to $500 million of its outstanding common stock, effective January 23, 2024[20] - Accumulated Other Comprehensive Income (AOCI) balance as of September 30, 2024, was $1,272 million, compared to $(1,333) million as of September 30, 2023[22] - Equity compensation expense for the nine months ended September 30, 2024, was $37 million, up from $35 million in the same period in 2023[25] - The company granted 106,233 stock appreciation rights, 116,883 performance shares, and 81,527 restricted stock units in Q1 2024, with a weighted average exercise price of $185.28 per share[25] - The total compensation cost of non-vested awards not yet recognized in financial statements was $44 million as of September 30, 2024, expected to vest over 0.8 years on average[25] Policy Benefits and Liabilities - The liability for future policy benefits increased by $39 million in 2024 and $85 million in 2023 due to updated mortality and lapse assumptions[26] - The company's liability for future policy benefits was updated in Q3 2024 and 2023, reflecting changes in mortality, lapse rates, and discount rate assumptions[26] - Present Value of Expected Net Premiums for the nine months ended September 30, 2024: U.S. and Latin America - $78.7 billion, Canada - $22.0 billion, Europe, Middle East and Africa - $16.8 billion, Asia Pacific - $45.8 billion[28] - Present Value of Expected Future Policy Benefits for the nine months ended September 30, 2024: U.S. and Latin America - $91.2 billion, Canada - $25.6 billion, Europe, Middle East and Africa - $18.4 billion, Asia Pacific - $50.7 billion[28] - Net Liability for Future Policy Benefits for the nine months ended September 30, 2024: U.S. and Latin America - $10.6 billion, Canada - $4.0 billion, Europe, Middle East and Africa - $1.2 billion, Asia Pacific - $2.7 billion[28] - Weighted Average Duration of the Liability: U.S. and Latin America - 14 years, Canada - 8 years, Europe, Middle East and Africa - 15 years, Asia Pacific - 15 years[28] - Weighted Average Interest Accretion Rate: U.S. and Latin America - 4.6%, Canada - 3.6%, Europe, Middle East and Africa - 3.3%, Asia Pacific - 2.6%[28] - Weighted Average Current Discount Rate: U.S. and Latin America - 5.1%, Canada - 4.8%, Europe, Middle East and Africa - 5.5%, Asia Pacific - 4.6%[28] - Present Value of Expected Net Premiums for the nine months ended September 30, 2023: U.S. and Latin America - $76.5 billion, Canada - $22.0 billion, Europe, Middle East and Africa - $14.6 billion, Asia Pacific - $41.0 billion[30] - Present Value of Expected Future Policy Benefits for the nine months ended September 30, 2023: U.S. and Latin America - $88.3 billion, Canada - $25.5 billion, Europe, Middle East and Africa - $16.0 billion, Asia Pacific - $45.5 billion[30] - Net Liability for Future Policy Benefits for the nine months ended September 30, 2023: U.S. and Latin America - $8.6 billion, Canada - $3.5 billion, Europe, Middle East and Africa - $1.0 billion, Asia Pacific - $2.2 billion[30] - Liability for Future Policy Benefits at Original Discount Rate for the nine months ended September 30, 2024: U.S. and Latin America - $12.5 billion, Canada - $3.6 billion, Europe, Middle East and Africa - $1.5 billion, Asia Pacific - $4.9 billion[32] - Liability for future policy benefits in the U.S. and Latin America – Traditional segment is $12.0 billion, with a $17 million change in cash flow assumptions and a $5 million actual-to-expected variance[33] - Canada – Traditional segment shows a liability of $3.4 billion, with a $12 million change in cash flow assumptions and a $5 million actual-to-expected variance[33] - Europe, Middle East, and Africa – Traditional segment has a liability of $1.3 billion, with a $47 million change in cash flow assumptions and a $9 million actual-to-expected variance[33] - Asia Pacific – Traditional segment reports a liability of $4.5 billion, with a $9 million change in cash flow assumptions and a $(49) million actual-to-expected variance[33] - The Financial Solutions business saw a $20 million increase in liability for future policy benefits in 2024 due to updated lapse and mortality assumptions[34] - Present Value of Expected Net Premiums for the U.S. and Latin America – Financial Solutions segment shows an ending balance of $1,206 million after a $(179) million effect of changes in discount rate assumptions[36] - Present Value of Expected Future Policy Benefits for the U.S. and Latin America – Financial Solutions segment has an ending balance of $9,268 million after a $(215) million effect of changes in discount rate assumptions[36] - Weighted average duration of the liability for the U.S. and Latin America – Financial Solutions segment is 8 years, with a weighted average interest accretion rate of 3.9% and a weighted average current discount rate of 4.9%[36] - Net liability for future policy benefits in the U.S. and Latin America – Financial Solutions segment is $6,853 million after subtracting reinsurance recoverable of $(1,241) million[36] - The Financial Solutions business updated its underlying market data, resulting in changes to the discount rate assumption used to measure the net liability for future policy benefits[34] - Present Value of Expected Net Premiums for U.S. and Latin America decreased by $69 million due to changes in cash flow assumptions[38] - Present Value of Expected Future Policy Benefits for Europe, Middle East, and Africa increased by $6,278 million due to issuances[38] - Liability for future policy benefits in U.S. and Latin America increased from $4.9 billion in 2023 to $8.1 billion in 2024[40] - Impact of updating discount rate recognized in OCI for Asia Pacific decreased by $540 million in 2023[40] - Total liability for future policy benefits increased from $36,474 million in 2023 to $55,933 million in 2024[41] - Weighted average duration of the liability for Asia Pacific is 15 years[38] - Weighted average interest accretion rate for Europe, Middle East, and Africa is 2.3%[38] - Weighted average current discount rate for Canada is 5.5%[38] - Financial Solutions segment in Asia Pacific saw a liability increase from $4,853 million in 2023 to $11,422 million in 2024[41] - Claims liability and incurred but not reported claims increased from $5,062 million in 2023 to $5,406 million in 2024[41] - Expected future gross premiums for U.S. and Latin America (Traditional) in 2024 are $182.731 billion, compared to $177.307 billion in 2023[43] - Expected future benefit payments for U.S. and Latin America (Traditional) in 2024 are $191.246 billion, compared to $188.177 billion in 2023[43] - Total policyholder account balances as of September 30, 2024, are $23.729 billion, compared to $23.166 billion in 2023[47] - Gross premiums for U.S. and Latin America (Traditional) in 2024 are $4.658 billion, compared to $4.435 billion in 2023[44] - Interest expense for U.S. and Latin America (Traditional) in 2024 is $432 million, compared to $404 million in 2023[44] - Policyholder account balances for U.S. and Latin America (Traditional) in 2024 are $3.318 billion, compared to $1.622 billion in 2023[47] - Weighted average crediting rate for U.S. and Latin America (Traditional) in 2024 is 3.1%, compared to 4.4% in 2023[46] - Net amount at risk for U.S. and Latin America (Traditional) in 2024 is $34.671 billion, compared to $664 million in 2023[46] - Cash surrender value for U.S. and Latin America (Traditional) in 2024 is $3.313 billion, compared to $1.608 billion in 2023[46] - Total gross premiums for all regions in 2024 are $12.442 billion, compared to $9.993 billion in 2023[44] - U.S. and Latin America – Financial Solutions total account value reached $16,366 million, with $8,827 million in the 4.00% and greater range[51] - Asia Pacific – Financial Solutions total account value was $3,969 million, with $1,814 million in the 4.00% and greater range[52] - U.S. and Latin America – Financial Solutions total balance for 2024 was $17,515 million, with $8,708 million in the 4.00% and greater range[53] - Asia Pacific – Financial Solutions total balance for 2024 was $3,978 million, with $882 million in the 4.00% and greater range[53] - Net balance for unpaid claims and claim expenses increased to $2,875 million as of September 30, 2024, up from $2,654 million in 2023[55] - Market risk benefits balance decreased to $233 million as of September 30, 2024, from $216 million in 2023[57] - Net amount at risk for market risk benefits was $1,285 million in 2024, compared to $1,375 million in 2023[57] - Total market risk benefits liability was $247 million in 2024, with a net impact of $(233) million[58] - No material changes were made to the inputs in the market risk benefits calculations during the nine months ended September 30, 2024 and 2023[59] - Deferred policy acquisition costs for the Traditional business increased to $2,967 million in the U.S. and Latin America, up from $2,160 million in 2023[61][64] - The Financial Solutions business saw deferred policy acquisition costs rise to $495 million in the U.S. and Latin America, compared to $309 million in 2023[62][64] - Total deferred policy acquisition costs across all segments reached $5,477 million in 2024, up from $4,289 million in 2023[64] - The company increased its per life retention limit to $8 million to $30 million, resulting in a future policy benefits remeasurement loss of $136 million in Q3 2024[65] - The company retroceded $390 million of asset-intensive business to Ruby Re, with a ceded reinsurance recoverable of approximately $2.7 billion as of September 30, 2024[65] - Two reinsurance companies, including Ruby Re, account for approximately 77.2% of reinsurance ceded receivables as of September 30, 2024[65] - Fixed maturity securities available-for-sale decreased slightly to $2,390 million in 2024 from $2,442 million in 2023[67] - Funds withheld at interest decreased to $1,486 million in 2024 from $1,545 million in 2023[67] - The company's funds withheld payable increased to $4,809 million in 2024 from $4,483 million in 2023[67] - The company's net assets decreased slightly to $4,468 million in 2024 from $4,534 million in 2023[67] - Corporate fixed maturity securities increased from $42,014 million in December 2023 to $53,327 million in September 2024, representing 65.4% of total fixed maturity securities[69] - The estimated fair value of Japanese government securities rose from $3,131 million in December 2023 to $5,270 million in September 2024[69][70] - Total fixed maturity securities grew from $64,977 million in December 2023 to $81,606 million in September 2024[69] - The allowance for credit losses on corporate securities increased from $62 million in December 2023 to $104 million in September 2024[69

1 3Q24 Earnings Presentation Reinsurance Group of America, Incorporated 10.31.2024 This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial performance, and growth potential of Reinsurance Group of America, Incorporated (the "Company"). Forward-looking statements ...

Earnings Performance - Reinsurance Group of America (RGA) reported Q3 2024 adjusted operating earnings of $6.13 per share, beating the Zacks Consensus Estimate by 19% and increasing 10% year over year [1] - Net foreign currency fluctuations positively impacted adjusted operating income by 2 cents per share [1] - Operating revenues of $5.7 billion exceeded the Zacks Consensus Estimate by 13.8% and grew 8.5% year over year, driven by higher net premiums [2] Segment Performance - U.S. and Latin America: Pre-tax adjusted operating income decreased 33.4% year over year to $159 million, with the Traditional segment down 23% and Financial Solutions down 41% [5] - Canada: Pre-tax adjusted operating income decreased 15% year over year to $34 million, with the Traditional segment surging three-fold to $30 million [6] - EMEA: Pre-tax adjusted operating income increased 38.7% year over year to $68 million, despite a pre-tax adjusted operating loss of $18 million in the Traditional segment [7][8] - Asia/Pacific: Pre-tax adjusted operating income decreased 60% year over year to $71 million, with the Traditional segment plunging 92% [9] - Corporate and Other: Pre-tax adjusted operating loss narrowed to $18 million from $25 million in the year-ago quarter [10] Financial Metrics - Net premiums rose 3.2% year over year to $4.4 billion, while investment income increased 28.8% to $1.2 billion [3] - Total benefits and expenses increased 14% year over year to $5.4 billion, driven by higher claims, policy benefits, and other expenses [4] - Assets grew 37.5% year over year to $120.2 billion as of Sept. 30, 2024 [11] - Book value per share increased 5% year over year to $149.63, while adjusted operating return on equity contracted 90 basis points to 13.8% [11] Capital Deployment - RGA deployed $382 million into in-force block transactions [12] - The board declared a quarterly dividend of 89 cents, payable on Nov. 26, 2024 [12] Industry Comparison - Chubb Limited reported Q3 2024 core operating income of $5.72 per share, beating estimates by 16% and increasing 15.6% year over year [14] - Kinsale Capital Group delivered Q3 2024 net operating earnings of $4.20 per share, exceeding estimates by 13.5% and growing 26.9% year over year [16] - Selective Insurance Group reported Q3 2024 operating income of $1.40 per share, missing estimates by 17.1% and decreasing 7% year over year [18]