RGA(US:RGA)2024-11-01 16:39Revenue 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