RGA(US:RGA)2023-11-03 18:51Financial Performance - Total revenues for Q3 2023 reached $5,153 million, a 27.4% increase from $4,050 million in Q3 2022[12] - Net premiums increased to $4,255 million in Q3 2023, up 31.0% from $3,247 million in Q3 2022[12] - Net income attributable to RGA, Inc. shareholders was $287 million in Q3 2023, compared to a net loss of $76 million in Q3 2022[12] - Basic earnings per share for Q3 2023 were $4.34, a significant recovery from a loss of $1.13 in Q3 2022[12] - Net income for the three months ended September 30, 2023, was $287 million, compared to a net income of $289 million for the same period in 2022, reflecting a decrease of 0.7%[19] - Total comprehensive income for the three months ended September 30, 2023, was $65 million, while the total comprehensive loss for the same period in 2022 was $494 million, indicating a significant improvement[19] - Dividends to shareholders were $0.85 per share for the three months ended September 30, 2023, compared to $0.80 per share for the same period in 2022, representing a 6.25% increase[19] - The company reported net cash provided by operating activities of $2,818 million for the nine months ended September 30, 2023, compared to $1,077 million for the same period in 2022[16] Assets and Liabilities - Total assets as of September 30, 2023, were $87,422 million, an increase from $84,904 million as of December 31, 2022[9] - Total liabilities increased to $79,269 million as of September 30, 2023, compared to $77,733 million as of December 31, 2022[9] - The balance of total shareholders' equity as of September 30, 2023, was $8,153 million, up from $7,895 million as of June 30, 2023, indicating a growth of 3.3%[19] - The balance of retained earnings increased to $8,713 million as of September 30, 2023, from $8,483 million as of June 30, 2023, reflecting a growth of 2.7%[19] - The total balance of treasury stock as of September 30, 2023, was $(1,852) million, compared to $(1,803) million as of June 30, 2023, indicating an increase in treasury stock holdings[19] Policy Benefits and Claims - Future policy benefits increased to $36,474 million as of September 30, 2023, from $35,689 million as of December 31, 2022[9] - The net liability for future policy benefits at the end of 2022 was $9,053 million, a decrease from the previous year's $13,345 million[60] - The present value of expected future policy benefits at the end of 2022 was $77,378 million, down from $103,260 million in 2021, reflecting a significant reduction of approximately 25%[63] - Claims and other policy benefits decreased to $11,982 million in 2022 from $12,776 million in 2021, a reduction of about 6%[56] - Benefit payments in 2022 totaled $5,472 million, which is a decrease from $6,083 million in 2021, showing a reduction of approximately 10%[63] Investment and Securities - The Company holds fixed maturity securities available-for-sale with an amortized cost of $62.332 billion and an estimated fair value of $54.171 billion as of September 30, 2023[133] - The total estimated fair value of fixed maturity securities as of September 30, 2023, was $46.896 billion, with gross unrealized losses of $8.475 billion[143] - The company’s fixed maturity securities available-for-sale generated $2.035 billion in income for the nine months ended September 30, 2023, compared to $1.683 billion in 2022[145] - The allowance for credit losses on fixed maturity securities decreased from $75 million at the beginning of Q3 2023 to $68 million at the end of the period, reflecting a write-off of $6 million[139] - The recorded investment in mortgage loans as of September 30, 2023, was $7.320 billion, an increase from $6.653 billion as of December 31, 2022[151] Reinsurance and Derivatives - As of September 30, 2023, two major reinsurance companies account for approximately 68% of reinsurance ceded receivables and other[130] - The total derivatives, including both non-hedging and hedging instruments, amounted to $33.43 billion as of September 30, 2023, with total liabilities of $1.27 billion[161] - The credit exposure related to derivative contracts as of September 30, 2023, was $13 million, indicating potential credit-related losses from non-performance by counterparties[175] - The estimated fair value of credit default swaps sold by the company was $(35) million as of September 30, 2023, with a maximum amount of future payments of $1,515 million[170] Tax and Benefits - The effective tax rate for the three months ending September 30, 2023, was 24.2%, significantly higher than the U.S. statutory rate of 21% due to foreign income and valuation adjustments[202] - The net periodic benefit cost for pension benefits for the nine months ended September 30, 2023, was $12 million, compared to $10 million for the same period in 2022, indicating a 20% increase[205] - The company reported a net periodic benefit cost for other benefits of $2 million for the nine months ended September 30, 2023, compared to $3 million for the same period in 2022, a decrease of 33.3%[205] Shareholder Actions - The company repurchased 1,069,113 shares of common stock during the nine months ended September 30, 2023, under a $400 million share repurchase program authorized in February 2022[83] - The company’s common stock outstanding decreased to 65,872,213 shares as of September 30, 2023, from 66,676,208 shares at the end of 2022[81]