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RGA(RGA) - 2024 Q3 - Quarterly Report
RGARGA(RGA)2024-11-01 16:39
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Revenue and Income - Net premiums for the three months ended September 30, 2024, were 4.391billion,comparedto4.391 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 3.231billion,upfrom3.231 billion, up from 2.635 billion in 2023, a 22.6% increase[8] - Total revenues for the nine months ended September 30, 2024, reached 16.866billion,comparedto16.866 billion, compared to 13.560 billion in 2023, a 24.4% increase[8] - Net income for the nine months ended September 30, 2024, was 574million,downfrom574 million, down from 749 million in 2023, a 23.4% decrease[8] - Total comprehensive income for the nine months ended September 30, 2024, was 2.215billion,comparedto2.215 billion, compared to 1.287 billion in 2023, a 72.1% increase[10] - Net income for the nine months ended September 30, 2024, was 574million,comparedto574 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 1,641million,comparedto1,641 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 7,770million,comparedto7,770 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 8,383million,comparedto8,383 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 2,864million,comparedtoanetcashusedof2,864 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,comparedto8.64, 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,comparedto8.53, compared to 11.06 in the same period in 2023[18] - Net investment income for the nine months ended September 30, 2024, was 3,231million,upfrom3,231 million, up from 2,635 million in the same period in 2023[82] - Investment-related losses, net, were 498millionfortheninemonthsendedSeptember30,2024,comparedto498 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 933millionininvestmentincomeforthethreemonthsendedSeptember30,2024,upfrom933 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 290milliontonetinvestmentincomefortheninemonthsendedSeptember30,2024,comparedto290 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 3million,withinvestment−relatedgains(losses)netat3 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 3million[139]−Interestcreditedincludedinothercomprehensiveincome(loss)was3 million[139] - Interest credited included in other comprehensive income (loss) was 14 million[140] - Purchases during the period amounted to 680million,whilesalesandsettlementswere680 million, while sales and settlements were 51 million and 282million,respectively[140]−Netinvestmentincomeincreasedduetoahigheraverageassetbaseandinterestrates,withaverageinvestedassetsatamortizedcosttotaling282 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 35.9billionin2023[174]−Theaverageyieldoninvestments,excludingspread−relatedbusiness,was5.0835.9 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 49millioninQ32023[174]−Netinvestmentincomeroseby49 million in Q3 2023[174] - Net investment income rose by 31 million (15.9%) to 226millionforthethreemonthsendedSeptember30,2024,comparedto226 million for the three months ended September 30, 2024, compared to 195 million in 2023[182] - Net investment income increased by 52million(82.552 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 9million(4.99 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 11.127billion,upfrom11.127 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 0.89pershare,comparedto0.89 per share, compared to 0.85 per share in 2023[12] - Dividends to shareholders for the nine months ended September 30, 2024, were 171million,comparedto171 million, compared to 163 million in the same period in 2023[13] - Total equity as of September 30, 2024, was 11,217million,comparedto11,217 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 500millionofitsoutstandingcommonstock,effectiveJanuary23,2024[20]−AccumulatedOtherComprehensiveIncome(AOCI)balanceasofSeptember30,2024,was500 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)millionasofSeptember30,2023[22]−EquitycompensationexpensefortheninemonthsendedSeptember30,2024,was(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 35millioninthesameperiodin2023[25]−Thecompanygranted106,233stockappreciationrights,116,883performanceshares,and81,527restrictedstockunitsinQ12024,withaweightedaverageexercisepriceof35 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 44millionasofSeptember30,2024,expectedtovestover0.8yearsonaverage[25]PolicyBenefitsandLiabilities−Theliabilityforfuturepolicybenefitsincreasedby44 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 85millionin2023duetoupdatedmortalityandlapseassumptions[26]−Thecompany′sliabilityforfuturepolicybenefitswasupdatedinQ32024and2023,reflectingchangesinmortality,lapserates,anddiscountrateassumptions[26]−PresentValueofExpectedNetPremiumsfortheninemonthsendedSeptember30,2024:U.S.andLatinAmerica−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 - 22.0billion,Europe,MiddleEastandAfrica−22.0 billion, Europe, Middle East and Africa - 16.8 billion, Asia Pacific - 45.8billion[28]−PresentValueofExpectedFuturePolicyBenefitsfortheninemonthsendedSeptember30,2024:U.S.andLatinAmerica−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 - 25.6billion,Europe,MiddleEastandAfrica−25.6 billion, Europe, Middle East and Africa - 18.4 billion, Asia Pacific - 50.7billion[28]−NetLiabilityforFuturePolicyBenefitsfortheninemonthsendedSeptember30,2024:U.S.andLatinAmerica−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 - 4.0billion,Europe,MiddleEastandAfrica−4.0 billion, Europe, Middle East and Africa - 1.2 billion, Asia Pacific - 2.7billion[28]−WeightedAverageDurationoftheLiability:U.S.andLatinAmerica−14years,Canada−8years,Europe,MiddleEastandAfrica−15years,AsiaPacific−15years[28]−WeightedAverageInterestAccretionRate:U.S.andLatinAmerica−4.62.7 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 - 22.0billion,Europe,MiddleEastandAfrica−22.0 billion, Europe, Middle East and Africa - 14.6 billion, Asia Pacific - 41.0billion[30]−PresentValueofExpectedFuturePolicyBenefitsfortheninemonthsendedSeptember30,2023:U.S.andLatinAmerica−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 - 25.5billion,Europe,MiddleEastandAfrica−25.5 billion, Europe, Middle East and Africa - 16.0 billion, Asia Pacific - 45.5billion[30]−NetLiabilityforFuturePolicyBenefitsfortheninemonthsendedSeptember30,2023:U.S.andLatinAmerica−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 - 3.5billion,Europe,MiddleEastandAfrica−3.5 billion, Europe, Middle East and Africa - 1.0 billion, Asia Pacific - 2.2billion[30]−LiabilityforFuturePolicyBenefitsatOriginalDiscountRatefortheninemonthsendedSeptember30,2024:U.S.andLatinAmerica−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 - 3.6billion,Europe,MiddleEastandAfrica−3.6 billion, Europe, Middle East and Africa - 1.5 billion, Asia Pacific - 4.9billion[32]−LiabilityforfuturepolicybenefitsintheU.S.andLatinAmerica–Traditionalsegmentis4.9 billion[32] - Liability for future policy benefits in the U.S. and Latin America – Traditional segment is 12.0 billion, with a 17millionchangeincashflowassumptionsanda17 million change in cash flow assumptions and a 5 million actual-to-expected variance[33] - Canada – Traditional segment shows a liability of 3.4billion,witha3.4 billion, with a 12 million change in cash flow assumptions and a 5millionactual−to−expectedvariance[33]−Europe,MiddleEast,andAfrica–Traditionalsegmenthasaliabilityof5 million actual-to-expected variance[33] - Europe, Middle East, and Africa – Traditional segment has a liability of 1.3 billion, with a 47millionchangeincashflowassumptionsanda47 million change in cash flow assumptions and a 9 million actual-to-expected variance[33] - Asia Pacific – Traditional segment reports a liability of 4.5billion,witha4.5 billion, with a 9 million change in cash flow assumptions and a (49)millionactual−to−expectedvariance[33]−TheFinancialSolutionsbusinesssawa(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 1,206millionaftera1,206 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 9,268millionaftera9,268 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 6,853millionaftersubtractingreinsurancerecoverableof6,853 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 69millionduetochangesincashflowassumptions[38]−PresentValueofExpectedFuturePolicyBenefitsforEurope,MiddleEast,andAfricaincreasedby69 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 4.9billionin2023to4.9 billion in 2023 to 8.1 billion in 2024[40] - Impact of updating discount rate recognized in OCI for Asia Pacific decreased by 540millionin2023[40]−Totalliabilityforfuturepolicybenefitsincreasedfrom540 million in 2023[40] - Total liability for future policy benefits increased from 36,474 million in 2023 to 55,933millionin2024[41]−WeightedaveragedurationoftheliabilityforAsiaPacificis15years[38]−WeightedaverageinterestaccretionrateforEurope,MiddleEast,andAfricais2.355,933 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 11,422millionin2024[41]−Claimsliabilityandincurredbutnotreportedclaimsincreasedfrom11,422 million in 2024[41] - Claims liability and incurred but not reported claims increased from 5,062 million in 2023 to 5,406millionin2024[41]−ExpectedfuturegrosspremiumsforU.S.andLatinAmerica(Traditional)in2024are5,406 million in 2024[41] - Expected future gross premiums for U.S. and Latin America (Traditional) in 2024 are 182.731 billion, compared to 177.307billionin2023[43]−ExpectedfuturebenefitpaymentsforU.S.andLatinAmerica(Traditional)in2024are177.307 billion in 2023[43] - Expected future benefit payments for U.S. and Latin America (Traditional) in 2024 are 191.246 billion, compared to 188.177billionin2023[43]−TotalpolicyholderaccountbalancesasofSeptember30,2024,are188.177 billion in 2023[43] - Total policyholder account balances as of September 30, 2024, are 23.729 billion, compared to 23.166billionin2023[47]−GrosspremiumsforU.S.andLatinAmerica(Traditional)in2024are23.166 billion in 2023[47] - Gross premiums for U.S. and Latin America (Traditional) in 2024 are 4.658 billion, compared to 4.435billionin2023[44]−InterestexpenseforU.S.andLatinAmerica(Traditional)in2024is4.435 billion in 2023[44] - Interest expense for U.S. and Latin America (Traditional) in 2024 is 432 million, compared to 404millionin2023[44]−PolicyholderaccountbalancesforU.S.andLatinAmerica(Traditional)in2024are404 million in 2023[44] - Policyholder account balances for U.S. and Latin America (Traditional) in 2024 are 3.318 billion, compared to 1.622billionin2023[47]−WeightedaveragecreditingrateforU.S.andLatinAmerica(Traditional)in2024is3.11.622 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 664millionin2023[46]−CashsurrendervalueforU.S.andLatinAmerica(Traditional)in2024is664 million in 2023[46] - Cash surrender value for U.S. and Latin America (Traditional) in 2024 is 3.313 billion, compared to 1.608billionin2023[46]−Totalgrosspremiumsforallregionsin2024are1.608 billion in 2023[46] - Total gross premiums for all regions in 2024 are 12.442 billion, compared to 9.993billionin2023[44]−U.S.andLatinAmerica–FinancialSolutionstotalaccountvaluereached9.993 billion in 2023[44] - U.S. and Latin America – Financial Solutions total account value reached 16,366 million, with 8,827millioninthe4.008,827 million in the 4.00% and greater range[51] - Asia Pacific – Financial Solutions total account value was 3,969 million, with 1,814millioninthe4.001,814 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 8,708millioninthe4.008,708 million in the 4.00% and greater range[53] - Asia Pacific – Financial Solutions total balance for 2024 was 3,978 million, with 882millioninthe4.00882 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 2,654millionin2023[55]−Marketriskbenefitsbalancedecreasedto2,654 million in 2023[55] - Market risk benefits balance decreased to 233 million as of September 30, 2024, from 216millionin2023[57]−Netamountatriskformarketriskbenefitswas216 million in 2023[57] - Net amount at risk for market risk benefits was 1,285 million in 2024, compared to 1,375millionin2023[57]−Totalmarketriskbenefitsliabilitywas1,375 million in 2023[57] - Total market risk benefits liability was 247 million in 2024, with a net impact of (233)million[58]−NomaterialchangesweremadetotheinputsinthemarketriskbenefitscalculationsduringtheninemonthsendedSeptember30,2024and2023[59]−DeferredpolicyacquisitioncostsfortheTraditionalbusinessincreasedto(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 2,160millionin2023[61][64]−TheFinancialSolutionsbusinesssawdeferredpolicyacquisitioncostsriseto2,160 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 309millionin2023[62][64]−Totaldeferredpolicyacquisitioncostsacrossallsegmentsreached309 million in 2023[62][64] - Total deferred policy acquisition costs across all segments reached 5,477 million in 2024, up from 4,289millionin2023[64]−Thecompanyincreaseditsperliferetentionlimitto4,289 million in 2023[64] - The company increased its per life retention limit to 8 million to 30million,resultinginafuturepolicybenefitsremeasurementlossof30 million, resulting in a future policy benefits remeasurement loss of 136 million in Q3 2024[65] - The company retroceded 390millionofasset−intensivebusinesstoRubyRe,withacededreinsurancerecoverableofapproximately390 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 2,390millionin2024from2,390 million in 2024 from 2,442 million in 2023[67] - Funds withheld at interest decreased to 1,486millionin2024from1,486 million in 2024 from 1,545 million in 2023[67] - The company's funds withheld payable increased to 4,809millionin2024from4,809 million in 2024 from 4,483 million in 2023[67] - The company's net assets decreased slightly to 4,468millionin2024from4,468 million in 2024 from 4,534 million in 2023[67] - Corporate fixed maturity securities increased from 42,014millioninDecember2023to42,014 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 3,131millioninDecember2023to3,131 million in December 2023 to 5,270 million in September 2024[69][70] - Total fixed maturity securities grew from 64,977millioninDecember2023to64,977 million in December 2023 to 81,606 million in September 2024[69] - The allowance for credit losses on corporate securities increased from 62millioninDecember2023to62 million in December 2023 to 104 million in September 2024[69