EX-99.2 3 qfs3q15.htm EXHIBIT 99.2 Exhibit



Exhibit 99.2
 
Financial Supplement
Third Quarter 2015
(Unaudited)
World Headquarters
  
Internet address
 
Contacts:
16600 Swingley Ridge Road
  
www.rgare.com
 
Jack B. Lay
Chesterfield, Missouri 63017 U.S.A.
  
 
 
Senior Executive Vice President
 
 
 
 
and Chief Financial Officer
 
 
 
 
Phone: (636) 736-7000
 
 
 
 
e-mail: jlay@rgare.com
 
 
 
 
 
 
 
 
 
Jeff Hopson
 
 
 
 
Sr. Vice President, Investor Relations
 
 
 
 
Phone: (636) 736-2068
 
 
 
 
e-mail: jhopson@rgare.com
 


Current Ratings
 
 
 
 
 
 
Standard & Poor’s
 
A.M. Best
 
Moody’s
Financial Strength Ratings
 
 
 
 
 
 
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
RGA Reinsurance Company of Australia Limited
 
AA-
 
NR
 
NR
RGA Americas Reinsurance Company, Ltd.
 
AA-
 
A+
 
NR
RGA Atlantic Reinsurance Company Ltd.
 
NR
 
A+
 
NR
Senior Debt Ratings
 
 
 
 
 
 
Reinsurance Group of America, Incorporated
 
A-
 
a-
 
Baa1
Our common stock is traded on the New York Stock Exchange under the symbol “RGA.”


 




Reinsurance Group of America, Incorporated
Financial Supplement
3rd Quarter 2015
Table of Contents
 
 
Page
 
 
 
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
Segment Pre-tax Operating Income Summaries and Reconciliations to U.S. GAAP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 







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 ("RGA") 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 substantially all of 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, the cumulative effect of any accounting changes, and other items that 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 shareholders’
equity excluding AOCI.





                                        
 
Page 1

    


Reinsurance Group of America, Incorporated

PRIOR PERIOD RECLASSIFICATIONS
Effective January 1, 2015, the Company further segmented the Canada; Europe, Middle East and Africa; and Asia Pacific segments into traditional and non-traditional businesses to reflect the expanded product offerings within its geographic-based segments. The prior-period presentation has been adjusted to conform to the new segment reporting structure.




 



                                        
 
Page 2

    


Reinsurance Group of America, Incorporated
Financial Highlights
 
 
Three Months Ended
 
Current Qtr vs. PY Quarter
 
 
 
Year-to Date
(USD thousands, except inforce & per share data)
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Net premiums
 
$
2,089,345

 
$
2,129,043

 
$
2,023,852

 
$
2,217,772

 
$
2,168,285

 
$
(78,940
)
 
 
 
$
6,242,240

 
$
6,452,082

 
$
(209,842
)
Net income
 
83,534

 
130,391

 
125,114

 
191,091

 
157,996

 
(74,462
)
 
 
 
339,039

 
492,956

 
(153,917
)
Operating income
 
127,086

 
130,270

 
121,778

 
208,288

 
159,823

 
(32,737
)
 
 
 
379,134

 
429,761

 
(50,627
)
Operating return on equity (ex AOCI) -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
annualized
 
9.5
%
 
9.8
%
 
9.2
%
 
15.8
%
 
12.5
%
 
(3.0
)%
 
 
 
 
 
 
 
 
trailing 12 months
 
11.1
%
 
11.8
%
 
12.5
%
 
12.5
%
 
11.7
%
 
(0.6
)%
 
 
 
 
 
 
 
 
Total assets
 
47,606,120

 
47,460,271

 
44,691,268

 
44,679,611

 
42,910,363

 
4,695,757

 
 
 
 
 
 
 
 
Assumed Life Reinsurance in Force (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. and Latin America Traditional
 
$
1,476.1

 
$
1,475.6

 
$
1,479.4

 
$
1,483.9

 
$
1,387.2

 
$
88.9

 
 
 
 
 
 
 
 
U.S. and Latin America Non-Traditional
 
2.2

 
2.1

 
2.1

 
1.4

 
2.2

 
—

 
 
 
 
 
 
 
 
Canada Traditional
 
343.0

 
360.7

 
349.0

 
402.8

 
383.9

 
(40.9
)
 
 
 
 
 
 
 
 
Europe, Middle East and Africa Traditional
 
566.0

 
573.9

 
553.3

 
561.1

 
573.0

 
(7.0
)
 
 
 
 
 
 
 
 
Asia Pacific Traditional
 
461.8

 
512.7

 
460.6

 
494.0

 
577.0

 
(115.2
)
 
 
 
 
 
 
 
 
Asia Pacific Non-Traditional
 
0.3

 
0.3

 
0.3

 
0.3

 
0.3

 
—

 
 
 
 
 
 
 
 
Total Life Reinsurance in Force
 
$
2,849.4

 
$
2,925.3

 
$
2,844.7

 
$
2,943.5

 
$
2,923.6

 
$
(74.2
)
 
 
 


 


 


Assumed New Business Production (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. and Latin America Traditional
 
$
26.4

 
$
15.7

 
$
19.7

 
$
118.1

(1)
$
16.6

 
$
9.8

 
 
 
$
61.8

 
$
58.8

 
$
3.0

Canada Traditional
 
9.1

 
11.1

 
9.7

 
13.9

 
11.6

 
(2.5
)
 
 
 
29.9

 
34.4

 
(4.5
)
Europe, Middle East and Africa Traditional
 
24.7

 
32.3

 
48.6

 
38.5

 
22.5

 
2.2

 
 
 
105.6

 
136.7

 
(31.1
)
Asia Pacific Traditional
 
24.4

 
12.6

 
27.8

 
22.4

 
21.1

 
3.3

 
 
 
64.8

 
59.2

 
5.6

Total New Business Production
 
$
84.6

 
$
71.7

 
$
105.8

 
$
192.9

 
$
71.8

 
$
12.8

 
 
 
$
262.1

 
$
289.1

 
$
(27.0
)
Per Share and Shares Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
1.26

 
$
1.97

 
$
1.84

 
$
2.78

 
$
2.30

 
$
(1.04
)
 
 
 
$
5.07

 
$
7.10

 
$
(2.03
)
Operating income
 
$
1.92

 
$
1.96

 
$
1.79

 
$
3.03

 
$
2.33

 
$
(0.41
)
 
 
 
$
5.67

 
$
6.19

 
$
(0.52
)
Diluted earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
1.25

 
$
1.94

 
$
1.81

 
$
2.75

 
$
2.28

 
$
(1.03
)
 
 
 
$
5.01

 
$
7.03

 
$
(2.02
)
Operating income
 
$
1.90

 
$
1.94

 
$
1.77

 
$
2.99

 
$
2.31

 
$
(0.41
)
 
 
 
$
5.60

 
$
6.13

 
$
(0.53
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wgt. average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(basic)
 
66,205

 
66,351

 
68,141

 
68,718

 
68,642

 
(2,437
)
 
 
 
66,895

 
69,426

 
(2,531
)
(diluted)
 
66,882

 
67,120

 
68,942

 
69,550

 
69,335

 
(2,453
)
 
 
 
67,644

 
70,101

 
(2,457
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares issued
 
79,138

 
79,138

 
79,138

 
79,138

 
79,138

 
—

 
 
 
79,138

 
79,138

 
—

Treasury shares
 
13,389

 
12,716

 
12,699

 
10,365

 
10,472

 
2,917

 
 
 
13,389

 
10,472

 
2,917

Common shares outstanding
 
65,749

 
66,422

 
66,439

 
68,773

 
68,666

 
(2,917
)
 
 
 
65,749

 
68,666

 
(2,917
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share
 
$
94.92

 
$
97.61

 
$
107.62

 
$
102.13

 
$
97.28

 
 
 
 
 
 
 
 
 
 
Per share effect of accumulated other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
comprehensive income (AOCI)
 
$
13.78

 
$
17.31

 
$
28.36

 
$
24.10

 
$
21.84

 
 
 
 
 
 
 
 
 
 
Book value per share, excluding AOCI
 
$
81.14

 
$
80.30

 
$
79.26

 
$
78.03

 
$
75.44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholder dividends paid
 
$
24,592.1

 
$
21,850.5

 
$
22,668.8

 
$
22,669.4

 
$
22,632.1

 
$
1,960.0

 
 
 
$
69,111.4

 
$
64,586.8

 
$
4,524.6

(1) Increase in new business production related to the Voya Financial transaction that closed during the 4th quarter of 2014.

                                        
 
Page 3

    


Reinsurance Group of America, Incorporated
Consolidated GAAP Income Statement (incl. Operating Income Reconciliations)
 
 
Three Months Ended
 
Current Qtr
 
 
 
Year-to Date
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
vs. PY
 
 
 
Sept. 30,
 
Sept. 30,
 
 
(USD thousands)
 
2015
 
2015
 
2015
 
2014
 
2014
 
Quarter
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
2,089,345

 
$
2,129,043

 
$
2,023,852

 
$
2,217,772

 
$
2,168,285

 
$
(78,940
)
 
 
 
$
6,242,240

 
$
6,452,082

 
$
(209,842
)
Investment income, net of related expenses
 
389,597

 
450,539

 
426,891

 
451,603

 
447,106

 
(57,509
)
 
 
 
1,267,027

 
1,262,088

 
4,939

Investment related gains (losses), net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTTI on fixed maturity securities
 
(23,111
)
 
(4,137
)
 
(2,527
)
 
(6,347
)
 
(246
)
 
(22,865
)
 
 
 
(29,775
)
 
(1,419
)
 
(28,356
)
Other investment related gains (losses), net
 
(88,235
)
 
(12,041
)
 
10,110

 
(32,876
)
 
22,564

 
(110,799
)
 
 
 
(90,166
)
 
226,835

 
(317,001
)
Total investment related gains (losses), net
 
(111,346
)
 
(16,178
)
 
7,583

 
(39,223
)
 
22,318

 
(133,664
)
 
 
 
(119,941
)
 
225,416

 
(345,357
)
Other revenue
 
71,038

 
66,936

 
62,287

 
67,261

 
78,879

 
(7,841
)
 
 
 
200,261

 
267,195

 
(66,934
)
Total revenues
 
2,438,634

 
2,630,340

 
2,520,613

 
2,697,413

 
2,716,588

 
(277,954
)
 
 
 
7,589,587

 
8,206,781

 
(617,194
)
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1,831,819

 
1,866,183

 
1,775,451

 
1,866,042

 
1,855,037

 
(23,218
)
 
 
 
5,473,453

 
5,540,599

 
(67,146
)
Interest credited
 
34,008

 
77,246

 
120,678

 
103,523

 
120,952

 
(86,944
)
 
 
 
231,932

 
347,508

 
(115,576
)
Policy acquisition costs and other insurance expenses
 
249,702

 
300,412

 
277,043

 
290,775

 
336,411

 
(86,709
)
 
 
 
827,157

 
1,100,658

 
(273,501
)
Other operating expenses
 
142,270

 
131,600

 
121,618

 
166,280

 
133,737

 
8,533

 
 
 
395,488

 
372,135

 
23,353

Interest expense
 
35,565

 
35,851

 
35,627

 
(9,660
)
 
36,065

 
(500
)
 
 
 
107,043

 
106,360

 
683

Collateral finance and securitization expense
 
5,133

 
5,258

 
6,071

 
3,710

 
2,571

 
2,562

 
 
 
16,462

 
7,731

 
8,731

Total benefits and expenses
 
2,298,497

 
2,416,550

 
2,336,488

 
2,420,670

 
2,484,773

 
(186,276
)
 
 
 
7,051,535

 
7,474,991

 
(423,456
)
Income before income taxes
 
140,137

 
213,790

 
184,125

 
276,743

 
231,815

 
(91,678
)
 
 
 
538,052

 
731,790

 
(193,738
)
Income tax expense
 
56,603

 
83,399

 
59,011

 
85,652

 
73,819

 
(17,216
)
 
 
 
199,013

 
238,834

 
(39,821
)
Net income
 
$
83,534

 
$
130,391

 
$
125,114

 
$
191,091

 
$
157,996

 
$
(74,462
)
 
 
 
$
339,039

 
$
492,956

 
$
(153,917
)
Pre-tax Operating Income Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
140,137

 
213,790

 
184,125

 
276,743

 
231,815

 
(91,678
)
 
 
 
538,052

 
731,790

 
(193,738
)
Investment and derivative losses (gains)—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
non-operating (1)
 
(35,028
)
 
41,526

 
(20,946
)
 
(22,453
)
 
(8,413
)
 
(26,615
)
 
 
 
(14,448
)
 
(72,855
)
 
58,407

Change in value of modified coinsurance and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
funds withheld embedded derivatives (1)
 
46,169

 
23,098

 
2,325

 
14,523

 
(56,812
)
 
102,981

 
 
 
71,592

 
(212,888
)
 
284,480

GMXB embedded derivatives (1)
 
95,373

 
(50,878
)
 
25,133

 
52,901

 
47,479

 
47,894

 
 
 
69,628

 
76,323

 
(6,695
)
Funds withheld losses (gains)—investment income
 
(2,212
)
 
(3,002
)
 
(11,402
)
 
(1,371
)
 
(5,501
)
 
3,289

 
 
 
(16,616
)
 
(11,844
)
 
(4,772
)
EIA embedded derivatives—interest credited
 
(10,995
)
 
(10,488
)
 
10,313

 
(362
)
 
(415
)
 
(10,580
)
 
 
 
(11,170
)
 
(59
)
 
(11,111
)
DAC offset, net
 
(25,945
)
 
(1,187
)
 
(8,951
)
 
(15,253
)
 
26,521

 
(52,466
)
 
 
 
(36,083
)
 
127,132

 
(163,215
)
Non-investment derivatives
 
(383
)
 
493

 
(108
)
 
(472
)
 
28

 
(411
)
 
 
 
2

 
28

 
(26
)
Operating Income Before Income Taxes
 
$
207,116

 
$
213,352

 
$
180,489

 
$
304,256

 
$
234,702

 
$
(27,586
)
 
 
 
$
600,957

 
$
637,627

 
$
(36,670
)
After-tax Operating Income Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
 
83,534

 
130,391

 
125,114

 
191,091

 
157,996

 
(74,462
)
 
 
 
339,039

 
492,956

 
(153,917
)
Investment and derivative losses (gains)—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


non-operating (1)
 
(22,750
)
 
27,152

 
(14,585
)
 
(15,281
)
 
(5,517
)
 
(17,233
)
 
 
 
(10,183
)
 
(49,344
)
 
39,161

Change in value of modified coinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and funds withheld embedded derivatives (1)
 
30,010

 
15,014

 
1,511

 
9,440

 
(36,928
)
 
66,938

 
 
 
46,535

 
(138,377
)
 
184,912

GMXB embedded derivatives (1)
 
61,992

 
(33,070
)
 
16,336

 
34,386

 
30,861

 
31,131

 
 
 
45,258

 
49,610

 
(4,352
)
Funds withheld losses (gains)—investment income
 
(1,438
)
 
(1,951
)
 
(7,412
)
 
(891
)
 
(3,576
)
 
2,138

 
 
 
(10,801
)
 
(7,699
)
 
(3,102
)
EIA embedded derivatives—interest credited
 
(7,147
)
 
(6,817
)
 
6,703

 
(236
)
 
(269
)
 
(6,878
)
 
 
 
(7,261
)
 
(38
)
 
(7,223
)
DAC offset, net
 
(16,865
)
 
(770
)
 
(5,819
)
 
(9,914
)
 
17,238

 
(34,103
)
 
 
 
(23,454
)
 
82,635

 
(106,089
)
Non-investment derivatives
 
(250
)
 
321

 
(70
)
 
(307
)
 
18

 
(268
)
 
 
 
1

 
18

 
(17
)
Operating Income
 
$
127,086

 
$
130,270

 
$
121,778

 
$
208,288

 
$
159,823

 
$
(32,737
)
 
 
 
$
379,134

 
$
429,761

 
$
(50,627
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement

                                        
 
Page 4

    


Reinsurance Group of America, Incorporated
Consolidated Operating Income Statement
 
 
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, except per share data)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
2,089,345

 
$
2,129,043

 
$
2,023,852

 
$
2,217,772

 
$
2,168,285

 
$
(78,940
)
 
 
 
$
6,242,240

 
$
6,452,082

 
$
(209,842
)
Investment income, net of related expenses
 
387,385

 
447,537

 
415,489

 
450,232

 
441,605

 
(54,220
)
 
 
 
1,250,411

 
1,250,244

 
167

Investment related gains (losses), net
 
(4,832
)
 
(2,432
)
 
14,095

 
5,748

 
4,572

 
(9,404
)
 
 
 
6,831

 
15,996

 
(9,165
)
Other revenue
 
70,655

 
67,429

 
62,179

 
66,789

 
78,907

 
(8,252
)
 
 
 
200,263

 
267,223

 
(66,960
)
Total revenues
 
2,542,553

 
2,641,577

 
2,515,615

 
2,740,541

 
2,693,369

 
(150,816
)
 
 
 
7,699,745

 
7,985,545

 
(285,800
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
1,831,819

 
1,866,183

 
1,775,451

 
1,866,042

 
1,855,037

 
(23,218
)
 
 
 
5,473,453

 
5,540,599

 
(67,146
)
Interest credited
 
45,003

 
87,734

 
110,365

 
103,885

 
121,367

 
(76,364
)
 
 
 
243,102

 
347,567

 
(104,465
)
Policy acquisition costs and other insurance expenses
 
275,647

 
301,599

 
285,994

 
306,028

 
309,890

 
(34,243
)
 
 
 
863,240

 
973,526

 
(110,286
)
Other operating expenses
 
142,270

 
131,600

 
121,618

 
166,280

 
133,737

 
8,533

 
 
 
395,488

 
372,135

 
23,353

Interest expense
 
35,565

 
35,851

 
35,627

 
(9,660
)
 
36,065

 
(500
)
 
 
 
107,043

 
106,360

 
683

Collateral finance and securitization expense
 
5,133

 
5,258

 
6,071

 
3,710

 
2,571

 
2,562

 
 
 
16,462

 
7,731

 
8,731

Total benefits and expenses
 
2,335,437

 
2,428,225

 
2,335,126

 
2,436,285

 
2,458,667

 
(123,230
)
 
 
 
7,098,788

 
7,347,918

 
(249,130
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
207,116

 
213,352

 
180,489

 
304,256

 
234,702

 
(27,586
)
 
 
 
600,957

 
637,627

 
(36,670
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income tax expense
 
80,030

 
83,082

 
58,711

 
95,968

 
74,879

 
5,151

 
 
 
221,823

 
207,866

 
13,957

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
$
127,086

 
$
130,270

 
$
121,778

 
$
208,288

 
$
159,823

 
$
(32,737
)
 
 
 
$
379,134

 
$
429,761

 
$
(50,627
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wgt. Average Common Shares Outstanding (Diluted)
 
66,882

 
67,120

 
68,942

 
69,550

 
69,335

 
(2,453)

 
 
 
67,644

 
70,101

 
(2,457)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Earnings Per Share—Operating Income
 
$
1.90

 
$
1.94

 
$
1.77

 
$
2.99

 
$
2.31

 
$
(0.41
)
 
 
 
$
5.60

 
$
6.13

 
$
(0.53
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(145,047
)
 
$
(121,287
)
 
$
(96,024
)
 
$
(61,093
)
 
$
5,906

 
$
(150,953
)
 
 
 
$
(362,358
)
 
$
(49,283
)
 
$
(313,075
)
Operating income before income taxes
 
$
(15,526
)
 
$
(8,700
)
 
$
(11,833
)
 
$
(9,276
)
 
$
(2,016
)
 
$
(13,510
)
 
 
 
$
(36,059
)
 
$
(9,430
)
 
$
(26,629
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Compared to comparable prior year period




                                        
 
Page 5

    



 
Reinsurance Group of America, Incorporated
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
(USD thousands)
 
2015
 
2015
 
2015
 
2014
 
2014
Assets
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities, available-for-sale
 
$
27,411,788

 
$
28,063,975

 
$
25,801,223

 
$
25,480,972

 
$
24,475,451

Mortgage loans on real estate
 
3,170,002

 
3,073,313

 
2,913,486

 
2,712,238

 
2,617,091

Policy loans
 
1,444,009

 
1,438,156

 
1,284,085

 
1,284,284

 
1,249,948

Funds withheld at interest
 
5,675,174

 
5,840,076

 
5,841,554

 
5,922,561

 
5,969,006

Short-term investments
 
58,200

 
76,118

 
89,136

 
97,694

 
44,437

Other invested assets
 
1,187,504

 
1,110,107

 
1,243,033

 
1,198,319

 
1,165,021

Total investments
 
38,946,677

 
39,601,745

 
37,172,517

 
36,696,068

 
35,520,954

Cash and cash equivalents
 
1,747,692

 
1,335,661

 
1,083,179

 
1,645,669

 
1,118,745

Accrued investment income
 
342,088

 
322,069

 
283,665

 
261,096

 
305,880

Premiums receivable and other reinsurance balances
 
1,553,093

 
1,518,208

 
1,509,810

 
1,527,729

 
1,491,993

Reinsurance ceded receivables
 
661,185

 
711,463

 
665,797

 
578,206

 
596,704

Deferred policy acquisition costs
 
3,311,086

 
3,299,541

 
3,286,348

 
3,342,575

 
3,297,616

Other assets
 
1,044,299

 
671,584

 
689,952

 
628,268

 
578,471

Total assets
 
$
47,606,120

 
$
47,460,271

 
$
44,691,268

 
$
44,679,611

 
$
42,910,363

 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
Future policy benefits
 
$
16,574,783

 
$
16,773,035

 
$
14,152,780

 
$
14,476,637

 
$
13,541,687

Interest-sensitive contract liabilities
 
13,699,896

 
13,516,059

 
12,508,201

 
12,591,497

 
12,638,117

Other policy claims and benefits
 
3,892,036

 
3,857,610

 
3,822,699

 
3,824,069

 
3,861,060

Other reinsurance balances
 
280,093

 
311,388

 
320,950

 
306,915

 
276,314

Deferred income taxes
 
2,285,066

 
2,246,086

 
2,529,733

 
2,365,817

 
2,149,076

Other liabilities
 
1,405,675

 
1,032,980

 
1,118,645

 
994,230

 
967,303

Long-term debt
 
2,313,053

 
2,313,470

 
2,313,884

 
2,314,293

 
2,314,693

Collateral finance and securitization notes
 
914,452

 
926,410

 
774,351

 
782,701

 
482,115

Total liabilities
 
41,365,054

 
40,977,038

 
37,541,243

 
37,656,159

 
36,230,365

 
 
 
 
 
 
 
 
 
 
 
Stockholders’ Equity:
 
 
 
 
 
 
 
 
 
 
Common stock, at par value
 
791

 
791

 
791

 
791

 
791

Additional paid-in-capital
 
1,812,377

 
1,805,858

 
1,802,774

 
1,798,279

 
1,784,818

Retained earnings
 
4,482,709

 
4,425,302

 
4,339,028

 
4,239,647

 
4,074,047

Treasury stock
 
(961,290
)
 
(898,082
)
 
(876,804
)
 
(672,394
)
 
(679,265
)
Accumulated other comprehensive income (AOCI):
 
 
 
 
 
 
 
 
 
 
Accumulated currency translation adjustment, net of income taxes
 
(119,493
)
 
(13,989
)
 
(35,924
)
 
81,847

 
131,936

Unrealized appreciation of securities, net of income taxes
 
1,071,990

 
1,211,056

 
1,968,697

 
1,624,773

 
1,387,957

Pension and postretirement benefits, net of income taxes
 
(46,018
)
 
(47,703
)
 
(48,537
)
 
(49,491
)
 
(20,286
)
Total stockholders’ equity
 
6,241,066

 
6,483,233

 
7,150,025

 
7,023,452

 
6,679,998

Total liabilities and stockholders’ equity
 
$
47,606,120

 
$
47,460,271

 
$
44,691,268

 
$
44,679,611

 
$
42,910,363

 
 
 
 
 
 
 
 
 
 
 
Total stockholders’ equity, excluding AOCI
 
$
5,334,587

 
$
5,333,869

 
$
5,265,789

 
$
5,366,323

 
$
5,180,391

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
Page 6

    


 
Reinsurance Group of America, Incorporated
U.S. and Latin America Traditional 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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
1,150,936

 
$
1,170,931

 
$
1,114,094

 
$
1,221,862

 
$
1,171,916

 
$
(20,980
)
 
 
 
$
3,435,961

 
$
3,503,643

 
$
(67,682
)
Investment income, net of related expenses
 
154,210

 
163,390

 
143,005

 
142,753

 
139,272

 
14,938

 
 
 
460,605

 
410,052

 
50,553

Other revenue
 
6,566

 
4,567

 
664

 
1,323

 
783

 
5,783

 
 
 
11,797

 
2,192

 
9,605

Total revenues
 
1,311,712

 
1,338,888

 
1,257,763

 
1,365,938

 
1,311,971

 
(259
)
 
 
 
3,908,363

 
3,915,887

 
(7,524
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Claims and other policy benefits
 
1,049,973

 
1,041,390

 
1,039,407

 
1,021,046

 
1,030,525

 
19,448

 
 
 
3,130,770

 
3,109,262

 
21,508

Interest credited
 
20,999

 
21,875

 
12,944

 
13,101

 
12,993

 
8,006

 
 
 
55,818

 
38,083

 
17,735

Policy acquisition costs and other insurance expenses
 
158,452

 
169,035

 
158,567

 
168,395

 
161,120

 
(2,668
)
 
 
 
486,054

 
473,390

 
12,664

Other operating expenses
 
27,562

 
27,155

 
26,529

 
29,276

 
28,408

 
(846
)
 
 
 
81,246

 
79,070

 
2,176

Total benefits and expenses
 
1,256,986

 
1,259,455

 
1,237,447

 
1,231,818

 
1,233,046

 
23,940

 
 
 
3,753,888

 
3,699,805

 
54,083

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
54,726

 
79,433

 
20,316

 
134,120

 
78,925

 
(24,199
)
 
 
 
154,475

 
216,082

 
(61,607
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Operating income before income taxes
 
54,726

 
79,433

 
20,316

 
134,120

 
78,925

 
(24,199
)
 
 
 
154,475

 
216,082

 
(61,607
)
Investment and derivative (losses) gains - non-operating
 
926

 
3,360

 
(2,473
)
 
(5,268
)
 
(1,092
)
 
2,018

 
 
 
1,813

 
6,711

 
(4,898
)
Income before income taxes
 
$
55,652

 
$
82,793

 
$
17,843

 
$
128,852

 
$
77,833

 
$
(22,181
)
 
 
 
$
156,288

 
$
222,793

 
$
(66,505
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and Expense Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
91.2
%
 
88.9
%
 
93.3
%
 
83.6
%
 
87.9
%
 
3.3
%
 
 
 
91.1
%
 
88.7
%
 
2.4
%
Policy acquisition costs and other insurance expenses
 
13.8
%
 
14.4
%
 
14.2
%
 
13.8
%
 
13.7
%
 
0.1
%
 
 
 
14.1
%
 
13.5
%
 
0.6
%
Other operating expenses
 
2.4
%
 
2.3
%
 
2.4
%
 
2.4
%
 
2.4
%
 
0.0
%
 
 
 
2.4
%
 
2.3
%
 
0.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
Page 7

    


Reinsurance Group of America, Incorporated
U.S. and Latin America Non-Traditional Segment—Asset Intensive Reinsurance 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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
5,177

 
$
5,941

 
$
5,041

 
$
4,747

 
$
5,168

 
$
9

 
 
 
$
16,159

 
$
15,332

 
$
827

Investment income, net of related expenses
 
103,052

 
152,616

 
141,470

 
155,557

 
170,608

 
(67,556
)
 
 
 
397,138

 
473,154

 
(76,016
)
Investment related gains (losses), net
 
1

 
—

 
—

 
1

 
(2
)
 
3

 
 
 
1

 
(1
)
 
2

Other revenue
 
28,973

 
26,634

 
26,544

 
28,436

 
28,944

 
29

 
 
 
82,151

 
86,596

 
(4,445
)
Total revenues
 
137,203

 
185,191

 
173,055

 
188,741

 
204,718

 
(67,515
)
 
 
 
495,449

 
575,081

 
(79,632
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
16,832

 
19,983

 
6,726

 
5,289

 
5,586

 
11,246

 
 
 
43,541

 
14,559

 
28,982

Interest credited
 
29,530

 
69,530

 
84,672

 
86,294

 
104,985

 
(75,455
)
 
 
 
183,732

 
296,666

 
(112,934
)
Policy acquisition costs and other insurance expenses
 
30,718

 
34,163

 
37,005

 
36,380

 
31,960

 
(1,242
)
 
 
 
101,886

 
108,730

 
(6,844
)
Other operating expenses
 
4,893

 
5,113

 
4,318

 
4,764

 
4,211

 
682

 
 
 
14,324

 
12,118

 
2,206

Total benefits and expenses
 
81,973

 
128,789

 
132,721

 
132,727

 
146,742

 
(64,769
)
 
 
 
343,483

 
432,073

 
(88,590
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
55,230

 
56,402

 
40,334

 
56,014

 
57,976

 
(2,746
)
 
 
 
151,966

 
143,008

 
8,958

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
55,230

 
56,402

 
40,334

 
56,014

 
57,976

 
(2,746
)
 
 
 
151,966

 
143,008

 
8,958

Investment and derivative gains (losses) - non-operating (1)
 
73,476

 
(39,497
)
 
21,787

 
28,086

 
18,001

 
55,475

 
 
 
55,766

 
51,713

 
4,053

Change in value of modified coinsurance and funds withheld embedded derivatives (1)
 
(47,094
)
 
(26,456
)
 
147

 
(13,490
)
 
56,490

 
(103,584
)
 
 
 
(73,403
)
 
214,954

 
(288,357
)
GMXB embedded derivatives (1)
 
(95,373
)
 
50,878

 
(25,133
)
 
(52,901
)
 
(47,479
)
 
(47,894
)
 
 
 
(69,628
)
 
(76,323
)
 
6,695

Funds withheld gains (losses) - investment income
 
1,003

 
2,748

 
6,367

 
1,154

 
4,914

 
(3,911
)
 
 
 
10,118

 
9,929

 
189

EIA embedded derivatives - interest credited
 
10,995

 
10,488

 
(10,313
)
 
362

 
415

 
10,580

 
 
 
11,170

 
59

 
11,111

DAC offset, net
 
25,945

 
1,187

 
8,951

 
15,253

 
(26,521
)
 
52,466

 
 
 
36,083

 
(127,132
)
 
163,215

Income before income taxes
 
$
24,182

 
$
55,750

 
$
42,140

 
$
34,478

 
$
63,796

 
$
(39,614
)
 
 
 
$
122,072

 
$
216,208

 
$
(94,136
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



                                        
 
Page 8

    


Reinsurance Group of America, Incorporated
U.S. and Latin America Non-Traditional Segment—Asset Intensive Reinsurance Pre-tax Operating Income
(Cont’d)

 
 
 
 
 
Three Months Ended
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
(USD millions)
 
2015
 
2015
 
2015
 
2014
 
2014
Annuity account values:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed annuities (deferred)
 
$
4,883

 
$
5,004

 
$
4,779

 
$
4,859

 
$
4,919

 
 
 
 
 
 
 
 
 
 
 
Net interest spread (fixed annuities):
 
2.5
%
 
2.5
%
 
2.3
%
 
3.5
%
 
3.2
%
 
 
 
 
 
 
 
 
 
 
 
Equity-indexed annuities
 
$
4,536

 
$
4,622

 
$
4,666

 
$
4,695

 
$
4,716

 
 
 
 
 
 
 
 
 
 
 
Variable annuities:
 
 
 
 
 
 
 
 
 
 
No riders
 
$
791

 
$
843

 
$
864

 
$
881

 
$
899

GMDB only
 
63

 
69

 
71

 
75

 
79

GMIB only
 
5

 
5

 
5

 
5

 
6

GMAB only
 
33

 
38

 
41

 
44

 
46

GMWB only
 
1,426

 
1,540

 
1,600

 
1,636

 
1,676

GMDB / WB
 
361

 
391

 
410

 
427

 
427

Other
 
22

 
24

 
26

 
27

 
28

Total VA account values
 
$
2,701

 
$
2,910

 
$
3,017

 
$
3,095

 
$
3,161

 
 
 
 
 
 
 
 
 
 
 
Fair value of liabilities associated with living benefit riders
 
$
229

 
$
134

 
$
184

 
$
159

 
$
106

 
 
 
 
 
 
 
 
 
 
 
Interest-sensitive contract liabilities associated with:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts
 
$
313

 
$
325

 
$
336

 
$
336

 
$
336

 
 
 
 
 
 
 
 
 
 
 
Bank-owned life insurance (BOLI)
 
$
556

 
$
554

 
$
551

 
$
548

 
$
544

 
 
 
 
 
 
 
 
 
 
 
Other asset-intensive business
 
$
67

 
$
67

 
$
68

 
$
69

 
$
69

 
 
 
 
 
 
 
 
 
 
 
Future policy benefits associated with:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payout annuities
 
$
1,919

 
$
1,952

 
$
—

 
$
—

 
$
—



                                        
 
Page 9

    



 
Reinsurance Group of America, Incorporated
U.S. and Latin America Non-Traditional Segment—Financial Reinsurance 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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
1,438

 
$
1,194

 
$
1,145

 
$
1,155

 
$
1,003

 
$
435

 
 
 
$
3,777

 
$
3,336

 
$
441

Other revenue
 
16,446

 
17,717

 
15,305

 
18,363

 
23,581

 
(7,135
)
 
 
 
49,468

 
64,456

 
(14,988
)
Total revenues
 
17,884

 
18,911

 
16,450

 
19,518

 
24,584

 
(6,700
)
 
 
 
53,245

 
67,792

 
(14,547
)
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Policy acquisition costs and other insurance expenses
 
2,535

 
2,522

 
2,416

 
4,112

 
8,458

 
(5,923
)
 
 
 
7,473

 
21,144

 
(13,671
)
Other operating expenses
 
3,276

 
1,746

 
1,669

 
2,876

 
2,322

 
954

 
 
 
6,691

 
6,809

 
(118
)
Total benefits and expenses
 
5,811

 
4,268

 
4,085

 
6,988

 
10,780

 
(4,969
)
 
 
 
14,164

 
27,953

 
(13,789
)
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Operating income before income taxes
 
12,073

 
14,643

 
12,365

 
12,530

 
13,804

 
(1,731
)
 
 
 
39,081

 
39,839

 
(758
)
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Operating income before income taxes
 
12,073

 
14,643

 
12,365

 
12,530

 
13,804

 
(1,731
)
 
 
 
39,081

 
39,839

 
(758
)
Investment and derivative gains (losses) - non-operating
 
—

 
—

 
—

 
(162
)
 
(100
)
 
100

 
 
 
—

 
51

 
(51
)
Income before income taxes
 
$
12,073

 
$
14,643

 
$
12,365

 
$
12,368

 
$
13,704

 
$
(1,631
)
 
 
 
$
39,081

 
$
39,890

 
$
(809
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



                                        
 
Page 10

    


Reinsurance Group of America, Incorporated
Canada Traditional 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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
200,000

 
$
224,960

 
$
212,550

 
$
240,409

 
$
239,645

 
$
(39,645
)
 
 
 
$
637,510

 
$
712,980

 
$
(75,470
)
Investment income, net of related expenses
 
43,283

 
45,497

 
44,405

 
47,442

 
49,060

 
(5,777
)
 
 
 
133,185

 
144,036

 
(10,851
)
Investment related gains (losses), net
 
1,109

 
1,110

 
939

 
937

 
907

 
202

 
 
 
3,158

 
2,534

 
624

Other revenue
 
767

 
(454
)
 
1,556

 
569

 
761

 
6

 
 
 
1,869

 
1,502

 
367

Total revenues
 
245,159

 
271,113

 
259,450

 
289,357

 
290,373

 
(45,214
)
 
 
 
775,722

 
861,052

 
(85,330
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
152,640

 
185,742

 
183,534

 
200,620

 
195,162

 
(42,522
)
 
 
 
521,916

 
583,817

 
(61,901
)
Interest credited
 
5

 
5

 
4

 
14

 
10

 
(5
)
 
 
 
14

 
19

 
(5
)
Policy acquisition costs and other insurance expenses
 
46,581

 
53,371

 
49,551

 
60,699

 
60,260

 
(13,679
)
 
 
 
149,503

 
173,900

 
(24,397
)
Other operating expenses
 
8,140

 
8,236

 
9,188

 
9,826

 
10,086

 
(1,946
)
 
 
 
25,564

 
29,185

 
(3,621
)
Total benefits and expenses
 
207,366

 
247,354

 
242,277

 
271,159

 
265,518

 
(58,152
)
 
 
 
696,997

 
786,921

 
(89,924
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
37,793

 
23,759

 
17,173

 
18,198

 
24,855

 
12,938

 
 
 
78,725

 
74,131

 
4,594

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
37,793

 
23,759

 
17,173

 
18,198

 
24,855

 
12,938

 
 
 
78,725

 
74,131

 
4,594

Investment and derivative gains (losses) - non-operating
 
(4,930
)
 
(1,277
)
 
519

 
1,418

 
(1,282
)
 
(3,648
)
 
 
 
(5,688
)
 
(444
)
 
(5,244
)
Funds withheld gains (losses) - investment income
 
1,209

 
254

 
5,035

 
217

 
587

 
622

 
 
 
6,498

 
1,915

 
4,583

Income before income taxes
 
$
34,072

 
$
22,736

 
$
22,727

 
$
19,833

 
$
24,160

 
$
9,912

 
 
 
$
79,535

 
$
75,602

 
$
3,933

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and Expense Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratios (creditor business)
 
34.4
%
 
31.8
%
 
29.5
%
 
31.3
%
 
28.0
%
 
6.4
 %
 
 
 
31.8
%
 
28.8
%
 
3.0
 %
Loss ratios (excluding creditor business)
 
86.6
%
 
95.9
%
 
101.2
%
 
100.6
%
 
98.3
%
 
(11.7
)%
 
 
 
94.7
%
 
97.8
%
 
(3.1
)%
Claims and other policy benefits / (net premiums + investment income)
 
62.7
%
 
68.7
%
 
71.4
%
 
69.7
%
 
67.6
%
 
(4.9
)%
 
 
 
67.7
%
 
68.1
%
 
(0.4
)%
Policy acquisition costs and other insurance expenses (creditor business)
 
62.1
%
 
64.0
%
 
63.0
%
 
65.8
%
 
65.2
%
 
(3.1
)%
 
 
 
63.1
%
 
63.7
%
 
(0.6
)%
Policy acquisition costs and other insurance expenses (excluding creditor business)
 
13.7
%
 
13.2
%
 
12.9
%
 
11.9
%
 
12.5
%
 
1.2
 %
 
 
 
13.3
%
 
12.6
%
 
0.7
 %
Other operating expenses
 
4.1
%
 
3.7
%
 
4.3
%
 
4.1
%
 
4.2
%
 
(0.1
)%
 
 
 
4.0
%
 
4.1
%
 
(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(40,371
)
 
$
(28,850
)
 
$
(26,121
)
 
$
(18,820
)
 
$
(11,917
)
 
$
(28,454
)
 
 
 
$
(95,342
)
 
$
(49,968
)
 
$
(45,374
)
Operating income before income taxes
 
$
(7,644
)
 
$
(3,065
)
 
$
(2,147
)
 
$
(1,750
)
 
$
(1,556
)
 
$
(6,088
)
 
 
 
$
(12,856
)
 
$
(5,571
)
 
$
(7,285
)
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
Creditor reinsurance net premiums
 
$
39,462

 
$
46,629

 
$
44,054

 
$
59,451

 
$
57,412

 
$
(17,950
)
 
 
 
$
130,145

 
$
164,769

 
$
(34,624
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: The loss ratios on creditor reinsurance business are normally lower than traditional reinsurance, while allowances are normally higher as a percentage of premiums.
(1) Compared to comparable prior year period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
Page 11

    


Reinsurance Group of America, Incorporated
Canada Non-Traditional Segment Pre-tax Operating Income (1)
 
 
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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
9,275

 
$
9,725

 
$
9,967

 
$
4,615

 
$
5,491

 
$
3,784

 
 
 
$
28,967

 
$
16,577

 
$
12,390

Investment income, net of related expenses
 
230

 
328

 
550

 
616

 
600

 
(370
)
 
 
 
1,108

 
1,979

 
(871
)
Other revenue
 
1,535

 
1,405

 
1,357

 
1,432

 
1,568

 
(33
)
 
 
 
4,297

 
3,051

 
1,246

Total revenues
 
11,040

 
11,458

 
11,874

 
6,663

 
7,659

 
3,381

 
 
 
34,372

 
21,607

 
12,765

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
7,340

 
7,904

 
7,299

 
4,451

 
6,271

 
1,069

 
 
 
22,543

 
15,665

 
6,878

Policy acquisition costs and other insurance expenses
 
152

 
148

 
107

 
131

 
149

 
3

 
 
 
407

 
450

 
(43
)
Other operating expenses
 
291

 
312

 
337

 
350

 
358

 
(67
)
 
 
 
940

 
1,038

 
(98
)
Total benefits and expenses
 
7,783

 
8,364

 
7,743

 
4,932

 
6,778

 
1,005

 
 
 
23,890

 
17,153

 
6,737

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
3,257

 
3,094

 
4,131

 
1,731

 
881

 
2,376

 
 
 
10,482

 
4,454

 
6,028

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
3,257

 
3,094

 
4,131

 
1,731

 
881

 
2,376

 
 
 
10,482

 
4,454

 
6,028

Investment and derivative gains (losses) - non-operating
 
—

 
—

 
—

 
8

 
3

 
(3
)
 
 
 
—

 
72

 
(72
)
Income before income taxes
 
$
3,257

 
$
3,094

 
$
4,131

 
$
1,739

 
$
884

 
$
2,373

 
 
 
$
10,482

 
$
4,526

 
$
5,956

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(1,872
)
 
$
(1,234
)
 
$
(1,302
)
 
$
(1,390
)
 
$
(29
)
 
$
(1,843
)
 
 
 
$
(4,408
)
 
$
(140
)
 
$
(4,268
)
Operating income before income taxes
 
$
(659
)
 
$
(397
)
 
$
(251
)
 
$
(146
)
 
$
(49
)
 
$
(610
)
 
 
 
$
(1,307
)
 
$
(310
)
 
$
(997
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The Canadian non-traditional segment includes longevity and financial reinsurance business.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) Compared to comparable prior year period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


                                        
 
Page 12

    


Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Traditional 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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
276,111

 
$
275,745

 
$
269,746

 
$
288,191

 
$
291,015

 
$
(14,904
)
 
 
 
$
821,602

 
$
869,216

 
$
(47,614
)
Investment income, net of related expenses
 
12,066

 
13,092

 
12,089

 
15,099

 
13,050

 
(984
)
 
 
 
37,247

 
36,987

 
260

Investment related gains (losses), net
 
(7,167
)
 
(4,509
)
 
12,208

 
3,678

 
2,550

 
(9,717
)
 
 
 
532

 
10,326

 
(9,794
)
Other revenue
 
3,051

 
(136
)
 
1,140

 
(582
)
 
2,878

 
173

 
 
 
4,055

 
2,946

 
1,109

Total revenues
 
284,061

 
284,192

 
295,183

 
306,386

 
309,493

 
(25,432
)
 
 
 
863,436

 
919,475

 
(56,039
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
232,473

 
240,942

 
235,307

 
247,959

 
244,010

 
(11,537
)
 
 
 
708,722

 
749,801

 
(41,079
)
Interest credited
 
(6,798
)
 
(4,048
)
 
12,349

 
4,076

 
2,959

 
(9,757
)
 
 
 
1,503

 
11,495

 
(9,992
)
Policy acquisition costs and other insurance expenses
 
17,680

 
14,183

 
12,008

 
14,038

 
17,205

 
475

 
 
 
43,871

 
42,934

 
937

Other operating expenses
 
25,085

 
23,956

 
25,086

 
30,414

 
25,028

 
57

 
 
 
74,127

 
74,027

 
100

Total benefits and expenses
 
268,440

 
275,033

 
284,750

 
296,487

 
289,202

 
(20,762
)
 
 
 
828,223

 
878,257

 
(50,034
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
15,621

 
9,159

 
10,433

 
9,899

 
20,291

 
(4,670
)
 
 
 
35,213

 
41,218

 
(6,005
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
15,621

 
9,159

 
10,433

 
9,899

 
20,291

 
(4,670
)
 
 
 
35,213

 
41,218

 
(6,005
)
Investment and derivative gains (losses) - non-operating
 
289

 
—

 
49

 
3,330

 
990

 
(701
)
 
 
 
338

 
5,858

 
(5,520
)
Income before income taxes
 
$
15,910

 
$
9,159

 
$
10,482


$
13,229

 
$
21,281

 
$
(5,371
)
 
 
 
$
35,551

 
$
47,076

 
$
(11,525
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and Expense Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
84.2
%
 
87.4
%
 
87.2
%
 
86.0
%
 
83.8
%
 
0.4
%
 
 
 
86.3
%
 
86.3
%
 
0.0
%
Policy acquisition costs and other insurance expenses
 
6.4
%
 
5.1
%
 
4.5
%
 
4.9
%
 
5.9
%
 
0.5
%
 
 
 
5.3
%
 
4.9
%
 
0.4
%
Other operating expenses
 
9.1
%
 
8.7
%
 
9.3
%
 
10.6
%
 
8.6
%
 
0.5
%
 
 
 
9.0
%
 
8.5
%
 
0.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(29,879
)
 
$
(35,426
)
 
$
(29,430
)
 
$
(24,435
)
 
$
13,415

 
$
(43,294
)
 
 
 
$
(94,735
)
 
$
43,484

 
$
(138,219
)
Operating income before income taxes
 
$
(716
)
 
$
(770
)
 
$
(1,301
)
 
$
(905
)
 
$
1,157

 
$
(1,873
)
 
 
 
$
(2,787
)
 
$
2,348

 
$
(5,135
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
58,069

 
$
58,278

 
$
58,219

 
$
62,511

 
$
63,303

 
$
(5,234
)
 
 
 
$
174,566

 
$
195,238

 
$
(20,672
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Compared to comparable prior year period

                                        
 
Page 13

    


Reinsurance Group of America, Incorporated
Europe, Middle East and Africa Non-Traditional Segment Pre-tax Operating Income (1)

 
 
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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
44,584

 
$
50,234

 
$
29,860

 
$
57,694

 
$
55,442

 
$
(10,858
)
 
 
 
$
124,678

 
$
158,868

 
$
(34,190
)
Investment income, net of related expenses
 
17,305

 
15,782

 
16,877

 
28,799

 
16,141

 
1,164

 
 
 
49,964

 
26,244

 
23,720

Other revenue
 
6,953

 
9,694

 
7,640

 
8,725

 
10,640

 
(3,687
)
 
 
 
24,287

 
26,434

 
(2,147
)
Total revenues
 
68,842

 
75,710

 
54,377

 
95,218

 
82,223

 
(13,381
)
 
 
 
198,929

 
211,546

 
(12,617
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
37,923

 
39,849

 
32,081

 
66,032

 
53,982

 
(16,059
)
 
 
 
109,853

 
138,078

 
(28,225
)
Policy acquisition costs and other insurance expenses
 
(511
)
 
266

 
(530
)
 
(646
)
 
(738
)
 
227

 
 
 
(775
)
 
(1,710
)
 
935

Other operating expenses
 
2,592

 
3,761

 
4,191

 
5,948

 
5,290

 
(2,698
)
 
 
 
10,544

 
13,759

 
(3,215
)
Total benefits and expenses
 
40,004

 
43,876

 
35,742

 
71,334

 
58,534

 
(18,530
)
 
 
 
119,622

 
150,127

 
(30,505
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
28,838

 
31,834

 
18,635

 
23,884

 
23,689

 
5,149

 
 
 
79,307

 
61,419

 
17,888

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
28,838

 
31,834

 
18,635

 
23,884

 
23,689

 
5,149

 
 
 
79,307

 
61,419

 
17,888

Investment and derivative gains (losses) - non-operating
 
8

 
50

 
851

 
2,314

 
206

 
(198
)
 
 
 
909

 
13,208

 
(12,299
)
Non-investment derivatives
 
388

 
(452
)
 
148

 
512

 
—

 
388

 
 
 
84

 
—

 
84

Income before income taxes
 
$
29,234

 
$
31,432

 
$
19,634

 
$
26,710

 
$
23,895

 
$
5,339

 
 
 
$
80,300

 
$
74,627

 
$
5,673

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(3,394
)
 
$
(4,779
)
 
$
(2,327
)
 
$
9,345

 
$
1,026

 
$
(4,420
)
 
 
 
$
(10,500
)
 
$
851

 
$
(11,351
)
Operating income before income taxes
 
$
(2,780
)
 
$
(4,214
)
 
$
(2,393
)
 
$
(1,510
)
 
$
929

 
$
(3,709
)
 
 
 
$
(9,387
)
 
$
3,842

 
$
(13,229
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The Europe, Middle East and Africa non-traditional segment includes asset intensive, financial reinsurance, capital motivated and longevity closed block business.
(2) Compared to comparable prior year period


                                        
 
Page 14

    


Reinsurance Group of America, Incorporated
Asia Pacific Traditional 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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
400,322

 
$
390,456

 
$
372,145

 
$
390,652

 
$
393,665

 
$
6,657

 
 
 
$
1,162,923

 
$
1,150,258

 
$
12,665

Investment income, net of related expenses
 
19,626

 
20,043

 
20,604

 
20,785

 
21,899

 
(2,273
)
 
 
 
60,273

 
63,704

 
(3,431
)
Investment related gains (losses), net
 
—

 
—

 
—

 
(1
)
 
1

 
(1
)
 
 
 
—

 
1

 
(1
)
Other revenue
 
3,728

 
815

 
1,126

 
3,363

 
2,776

 
952

 
 
 
5,669

 
54,735

 
(49,066
)
Total revenues
 
423,676

 
411,314

 
393,875

 
414,799

 
418,341

 
5,335

 
 
 
1,228,865

 
1,268,698

 
(39,833
)
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
333,739

 
325,667

 
265,309

 
312,540

 
309,648

 
24,091

 
 
 
924,715

 
896,071

 
28,644

Policy acquisition costs and other insurance expenses
 
41,982

 
49,335

 
46,912

 
46,691

 
51,249

 
(9,267
)
 
 
 
138,229

 
212,121

 
(73,892
)
Other operating expenses
 
34,973

 
31,997

 
29,006

 
37,541

 
32,818

 
2,155

 
 
 
95,976

 
90,870

 
5,106

Total benefits and expenses
 
410,694

 
406,999

 
341,227

 
396,772

 
393,715

 
16,979

 
 
 
1,158,920

 
1,199,062

 
(40,142
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
12,982

 
4,315

 
52,648

 
18,027

 
24,626

 
(11,644
)
 
 
 
69,945

 
69,636

 
309

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
12,982

 
4,315

 
52,648

 
18,027

 
24,626

 
(11,644
)
 
 
 
69,945

 
69,636

 
309

Investment and derivative gains (losses) - non-operating
 
(1,706
)
 
—

 
—

 
1,193

 
(324
)
 
(1,382
)
 
 
 
(1,706
)
 
1,746

 
(3,452
)
Income before income taxes
 
$
11,276

 
$
4,315

 
$
52,648

 
$
19,220

 
$
24,302

 
$
(13,026
)
 
 
 
$
68,239

 
$
71,382

 
$
(3,143
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and Expense Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
83.4
%
 
83.4
%
 
71.3
%
 
80.0
%
 
78.7
%
 
4.7
 %
 
 
 
79.5
%
 
77.9
%
 
1.6
 %
Policy acquisition costs and other insurance expenses
 
10.5
%
 
12.6
%
 
12.6
%
 
12.0
%
 
13.0
%
 
(2.5
)%
 
 
 
11.9
%
 
18.4
%
 
(6.5
)%
Other operating expenses
 
8.7
%
 
8.2
%
 
7.8
%
 
9.6
%
 
8.3
%
 
0.4
 %
 
 
 
8.3
%
 
7.9
%
 
0.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(69,139
)
 
$
(50,842
)
 
$
(35,158
)
 
$
(23,238
)
 
$
3,459

 
$
(72,598
)
 
 
 
$
(155,139
)
 
$
(42,600
)
 
$
(112,539
)
Operating income before income taxes
 
$
(601
)
 
$
1,533

 
$
(4,762
)
 
$
(2,414
)
 
$
(658
)
 
$
57

 
 
 
$
(3,830
)
 
$
(4,109
)
 
$
279

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Critical illness net premiums
 
$
86,341

 
$
75,120

 
$
69,867

 
$
76,231

 
$
67,105

 
$
19,236

 
 
 
$
231,328

 
$
199,431

 
$
31,897

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Compared to comparable prior year period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
Page 15

    


Reinsurance Group of America, Incorporated
Asia Pacific Non-Traditional Segment Pre-tax Operating Income (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
2,807

 
$
898

 
$
10,282

 
$
9,429

 
$
5,757

 
$
(2,950
)
 
 
 
$
13,987

 
$
24,601

 
$
(10,614
)
Investment income, net of related expenses
 
4,482

 
3,888

 
3,649

 
4,264

 
4,546

 
(64
)
 
 
 
12,019

 
13,708

 
(1,689
)
Investment related gains (losses), net
 
706

 
507

 
501

 
665

 
645

 
61

 
 
 
1,714

 
2,190

 
(476
)
Other revenue
 
4,306

 
3,839

 
5,117

 
5,539

 
6,174

 
(1,868
)
 
 
 
13,262

 
17,212

 
(3,950
)
Total revenues
 
12,301

 
9,132

 
19,549

 
19,897

 
17,122

 
(4,821
)
 
 
 
40,982

 
57,711

 
(16,729
)
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
903

 
4,706

 
5,735

 
8,103

 
9,859

 
(8,956
)
 
 
 
11,344

 
33,352

 
(22,008
)
Interest credited
 
1,023

 
169

 
184

 
195

 
221

 
802

 
 
 
1,376

 
701

 
675

Policy acquisition costs and other insurance expenses
 
292

 
419

 
546

 
367

 
603

 
(311
)
 
 
 
1,257

 
1,929

 
(672
)
Other operating expenses
 
3,790

 
3,187

 
2,960

 
4,006

 
3,621

 
169

 
 
 
9,937

 
9,936

 
1

Total benefits and expenses
 
6,008

 
8,481

 
9,425

 
12,671

 
14,304

 
(8,296
)
 
 
 
23,914

 
45,918

 
(22,004
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
6,293

 
651

 
10,124

 
7,226

 
2,818

 
3,475

 
 
 
17,068

 
11,793

 
5,275

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before income taxes
 
6,293

 
651

 
10,124

 
7,226

 
2,818

 
3,475

 
 
 
17,068

 
11,793

 
5,275

Investment and derivative gains (losses) - non-operating
 
(881
)
 
(2,056
)
 
21

 
(5,803
)
 
(6,707
)
 
5,826

 
 
 
(2,916
)
 
(1,523
)
 
(1,393
)
Income (loss) before income taxes
 
$
5,412

 
$
(1,405
)
 
$
10,145

 
$
1,423

 
$
(3,889
)
 
$
9,301

 
 
 
$
14,152

 
$
10,270

 
$
3,882

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
(392
)
 
$
(156
)
 
$
(1,686
)
 
$
(2,555
)
 
$
(48
)
 
$
(344
)
 
 
 
$
(2,234
)
 
$
(910
)
 
$
(1,324
)
Operating income before income taxes
 
$
(1,719
)
 
$
(614
)
 
$
(451
)
 
$
(1,355
)
 
$
(436
)
 
$
(1,283
)
 
 
 
$
(2,784
)
 
$
(1,258
)
 
$
(1,526
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The Asia Pacific non-traditional segment includes asset intensive, financial reinsurance, and disabled life closed block business.
(2) Compared to comparable prior year period
 


                                        
 
Page 16

    



 
Reinsurance Group of America, Incorporated
Corporate and Other 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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums
 
$
133

 
$
153

 
$
167

 
$
173

 
$
186

 
$
(53
)
 
 
 
$
453

 
$
607

 
$
(154
)
Investment income, net of related expenses
 
31,693

 
31,707

 
31,695

 
33,762

 
25,426

 
6,267

 
 
 
95,095

 
77,044

 
18,051

Investment related gains (losses), net
 
519

 
460

 
447

 
468

 
471

 
48

 
 
 
1,426

 
946

 
480

Other revenue
 
(1,670
)
 
3,348

 
1,730

 
(379
)
 
802

 
(2,472
)
 
 
 
3,408

 
8,099

 
(4,691
)
Total revenues
 
30,675

 
35,668

 
34,039

 
34,024

 
26,885

 
3,790

 
 
 
100,382

 
86,696

 
13,686

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claims and other policy benefits
 
(4
)
 
—

 
53

 
2

 
(6
)
 
2

 
 
 
49

 
(6
)
 
55

Interest credited
 
244

 
203

 
212

 
205

 
199

 
45

 
 
 
659

 
603

 
56

Policy acquisition costs and other insurance income
 
(22,234
)
 
(21,843
)
 
(20,588
)
 
(24,139
)
 
(20,376
)
 
(1,858
)
 
 
 
(64,665
)
 
(59,362
)
 
(5,303
)
Other operating expenses
 
31,668

 
26,137

 
18,334

 
41,279

 
21,595

 
10,073

 
 
 
76,139

 
55,323

 
20,816

Interest expense
 
35,565

 
35,851

 
35,627

 
(9,660
)
 
36,065

 
(500
)
 
 
 
107,043

 
106,360

 
683

Collateral finance and securitization expense
 
5,133

 
5,258

 
6,071

 
3,710

 
2,571

 
2,562

 
 
 
16,462

 
7,731

 
8,731

Total benefits and expenses
 
50,372

 
45,606

 
39,709

 
11,397

 
40,048

 
10,324

 
 
 
135,687

 
110,649

 
25,038

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) before income taxes
 
(19,697
)
 
(9,938
)
 
(5,670
)
 
22,627

 
(13,163
)
 
(6,534
)
 
 
 
(35,305
)
 
(23,953
)

(11,352
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating to U.S. GAAP Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) before income taxes
 
(19,697
)
 
(9,938
)
 
(5,670
)
 
22,627

 
(13,163
)
 
(6,534
)
 
 
 
(35,305
)
 
(23,953
)
 
(11,352
)
Investment and derivative gains (losses) - non-operating
 
(31,229
)
 
1,252

 
(2,280
)
 
(3,696
)
 
(960
)
 
(30,269
)
 
 
 
(32,257
)
 
(6,603
)
 
(25,654
)
Non-investment derivatives
 
(5
)
 
(41
)
 
(40
)
 
(40
)
 
(28
)
 
23

 
 
 
(86
)
 
(28
)
 
(58
)
Income (loss) before income taxes
 
$
(50,931
)
 
$
(8,727
)
 
$
(7,990
)
 
$
18,891

 
$
(14,151
)
 
$
(36,780
)
 
 
 
$
(67,648
)
 
$
(30,584
)
 
$
(37,064
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency effect on (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) before income taxes
 
$
(1,407
)
 
$
(1,173
)
 
$
(528
)
 
$
(1,196
)
 
$
(1,403
)
 
$
(4
)
 
 
 
$
(3,108
)
 
$
(4,372
)
 
$
1,264

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Compared to comparable prior year period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        
 
Page 17

    



 
Reinsurance Group of America, Incorporated
Summary of Pre-tax Segment 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)
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
U.S. and Latin America:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional
 
$
54,726

 
$
79,433

 
$
20,316

 
$
134,120

 
$
78,925

 
$
(24,199
)
 
 
 
$
154,475

 
$
216,082

 
$
(61,607
)
Non-Traditional:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 

Asset Intensive
 
55,230

 
56,402

 
40,334

 
56,014

 
57,976

 
(2,746
)
 
 
 
151,966

 
143,008

 
8,958

Financial Reinsurance
 
12,073

 
14,643

 
12,365

 
12,530

 
13,804

 
(1,731
)
 
 
 
39,081

 
39,839

 
(758
)
Total U.S. and Latin America
 
122,029

 
150,478

 
73,015

 
202,664

 
150,705

 
(28,676
)
 
 
 
345,522

 
398,929

 
(53,407
)
Canada:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Canada Traditional
 
37,793

 
23,759

 
17,173

 
18,198

 
24,855

 
12,938

 
 
 
78,725

 
74,131

 
4,594

Canada Non-Traditional
 
3,257

 
3,094

 
4,131

 
1,731

 
881

 
2,376

 
 
 
10,482

 
4,454

 
6,028

Total Canada
 
41,050

 
26,853

 
21,304

 
19,929

 
25,736

 
15,314

 
 
 
89,207

 
78,585

 
10,622

Europe, Middle East and Africa:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Europe, Middle East and Africa Traditional
 
15,621

 
9,159

 
10,433

 
9,899

 
20,291

 
(4,670
)
 
 
 
35,213

 
41,218

 
(6,005
)
Europe, Middle East and Africa Non-Traditional
 
28,838

 
31,834

 
18,635

 
23,884

 
23,689

 
5,149

 
 
 
79,307

 
61,419

 
17,888

Total Europe, Middle East and Africa
 
44,459

 
40,993

 
29,068

 
33,783

 
43,980

 
479

 
 
 
114,520

 
102,637

 
11,883

Asia Pacific:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific Traditional
 
12,982

 
4,315

 
52,648

 
18,027

 
24,626

 
(11,644
)
 
 
 
69,945

 
69,636

 
309

Asia Pacific Non-Traditional
 
6,293

 
651

 
10,124

 
7,226

 
2,818

 
3,475

 
 
 
17,068

 
11,793

 
5,275

Total Asia Pacific
 
19,275

 
4,966

 
62,772

 
25,253

 
27,444

 
(8,169
)
 
 
 
87,013

 
81,429

 
5,584

Corporate and Other
 
(19,697
)
 
(9,938
)
 
(5,670
)
 
22,627

 
(13,163
)
 
(6,534
)
 
 
 
(35,305
)
 
(23,953
)
 
(11,352
)
Consolidated
 
$
207,116

 
$
213,352

 
$
180,489

 
$
304,256

 
$
234,702

 
$
(27,586
)
 
 
 
$
600,957

 
$
637,627

 
$
(36,670
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



                                        
 
Page 18

    



 
Reinsurance Group of America, Incorporated
Investments
(USD thousands)

Cash and Invested Assets
 
 
Sept. 30,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
2015
 
2015
 
2015
 
2014
 
2014
Fixed maturity securities, available-for-sale
 
$
27,411,788

 
$
28,063,975

 
$
25,801,223

 
$
25,480,972

 
$
24,475,451

Mortgage loans on real estate
 
3,170,002

 
3,073,313

 
2,913,486

 
2,712,238

 
2,617,091

Policy loans
 
1,444,009

 
1,438,156

 
1,284,085

 
1,284,284

 
1,249,948

Funds withheld at interest
 
5,675,174

 
5,840,076

 
5,841,554

 
5,922,561

 
5,969,006

Short-term investments
 
58,200

 
76,118

 
89,136

 
97,694

 
44,437

Other invested assets
 
1,187,504

 
1,110,107

 
1,243,033

 
1,198,319

 
1,165,021

Cash and cash equivalents
 
1,747,692

 
1,335,661

 
1,083,179

 
1,645,669

 
1,118,745

Total cash and invested assets
 
$
40,694,369

 
$
40,937,406

 
$
38,255,696

 
$
38,341,737

 
$
36,639,699


 
Investment Income and Yield Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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,
 
 
 
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Average invested assets at amortized cost (1)
 
$
20,988,046

 
$
21,029,197

 
$
21,073,262

 
$
20,672,245

 
$
20,424,141

 
$
563,905

 
 
 
$
20,783,655

 
$
19,854,771

 
$
928,884

Net investment income (1)
 
$
240,168

 
$
252,131

 
$
247,239

 
$
250,757

 
$
240,877

 
$
(709
)
 
 
 
$
739,538

 
$
707,125

 
$
32,413

Annualized investment yield (ratio of net investment income to average invested assets) (1)
 
4.66
%
 
4.88
%
 
4.78
%
 
4.94
%
 
4.80
%
 
(0.14
)%
 
 
 
4.77
%
 
4.78
%
 
(0.01
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes spread-related business (e.g. coinsurance of annuities)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



                                        
 
Page 19

    


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, 2015
 
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated Fair
Value
 
% of
Total
 
Other-than-
temporary
Impairment
in AOCI
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
$
15,801,362

 
$
702,697

 
$
330,612

 
$
16,173,447

 
59.1
%
 
$
—

Canadian and Canadian provincial governments
 
2,520,495

 
1,023,160

 
929

 
3,542,726

 
12.9
%
 
—

Residential mortgage-backed securities
 
1,234,158

 
55,711

 
6,409

 
1,283,460

 
4.7
%
 
(300
)
Asset-backed securities
 
1,055,760

 
16,971

 
11,359

 
1,061,372

 
3.9
%
 
354

Commercial mortgage-backed securities
 
1,441,845

 
58,555

 
8,449

 
1,491,951

 
5.4
%
 
(1,609
)
U.S. government and agencies
 
1,337,493

 
20,688

 
40,963

 
1,317,218

 
4.8
%
 
—

State and political subdivisions
 
466,685

 
42,564

 
7,746

 
501,503

 
1.8
%
 
—

Other foreign government, supranational, and foreign
 
 
 
 
 
 
 
 
 
 
 
 
 government-sponsored enterprises
 
1,986,997

 
89,648

 
36,534

 
2,040,111

 
7.4
%
 
—

Total fixed maturity securities
 
$
25,844,795

 
$
2,009,994

 
$
443,001

 
$
27,411,788

 
100.0
%
 
$
(1,555
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-redeemable preferred stock
 
89,726

 
2,737

 
7,754

 
84,709

 
76.7
%
 
 
Other equity securities
 
26,968

 
—

 
1,303

 
25,665

 
23.3
%
 
 
Total equity securities
 
$
116,694

 
$
2,737

 
$
9,057

 
$
110,374

 
100.0
%
 
 
December 31, 2014
 
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated Fair
Value
 
% of
Total
 
Other-than-
temporary
Impairment
in AOCI
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
$
14,010,604

 
$
965,523

 
$
90,544

 
$
14,885,583

 
58.4
%
 
$
—

Canadian and Canadian provincial governments
 
2,668,852

 
1,196,420

 
7

 
3,865,265

 
15.2
%
 
—

Residential mortgage-backed securities
 
991,867

 
52,640

 
6,611

 
1,037,896

 
4.1
%
 
(300
)
Asset-backed securities
 
1,059,660

 
20,301

 
10,375

 
1,069,586

 
4.2
%
 
354

Commercial mortgage-backed securities
 
1,453,657

 
87,593

 
8,659

 
1,532,591

 
6.0
%
 
(1,609
)
U.S. government and agencies
 
501,352

 
25,014

 
515

 
525,851

 
2.0
%
 
—

State and political subdivisions
 
378,457

 
51,117

 
3,498

 
426,076

 
1.7
%
 
—

Other foreign government, supranational, and foreign
 
 
 
 
 
 
 
 
 
 
 
 
 government-sponsored enterprises
 
2,041,148

 
110,065

 
13,089

 
2,138,124

 
8.4
%
 
—

Total fixed maturity securities
 
$
23,105,597

 
$
2,508,673

 
$
133,298

 
$
25,480,972

 
100.0
%
 
$
(1,555
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-redeemable preferred stock
 
93,540

 
7,350

 
1,527

 
99,363

 
78.3
%
 
 
Other equity securities
 
26,994

 
597

 
94

 
27,497

 
21.7
%
 
 
Total equity securities
 
$
120,534

 
$
7,947

 
$
1,621

 
$
126,860

 
100.0
%
 
 

                                        
 
Page 20

    




Reinsurance Group of America, Incorporated
Investments
(USD thousands)

Corporate Fixed Maturities Securities by Sector
(Excludes Funds Withheld Portfolios)
 
 
September 30, 2015
 
December 31, 2014
 
 
Amortized
Cost
 
Estimated Fair
Value
 
% of
Total
 
Average
Credit
Ratings (1)
 
Amortized
Cost
 
Estimated Fair
Value
 
% of
Total
 
Average
Credit
Ratings (1)
Financial Institutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banking
 
$
3,288,755

 
$
3,385,294

 
21.0
%
 
A-
 
$
3,085,645

 
$
3,227,988

 
21.6
%
 
 A-
Brokerage/Asset Managers/Exchanges
 
283,414

 
299,018

 
1.8
%
 
A
 
247,955

 
268,439

 
1.8
%
 
 A
Finance Comp.
 
169,134

 
179,239

 
1.1
%
 
A+
 
187,055

 
199,781

 
1.3
%
 
 A+
Insurance
 
766,110

 
805,743

 
5.0
%
 
A-
 
692,464

 
758,825

 
5.1
%
 
 A-
REITs
 
526,359

 
548,550

 
3.4
%
 
BBB+
 
513,412

 
544,302

 
3.7
%
 
 BBB+
Other Finance
 
58,702

 
62,035

 
0.4
%
 
A-
 
63,037

 
67,073

 
0.5
%
 
 BBB+
Total Financial Institutions
 
$
5,092,474

 
$
5,279,879

 
32.7
%
 
 
 
$
4,789,568

 
$
5,066,408

 
34.0
%
 
 
Industrials
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
906,508

 
889,654

 
5.5
%
 
BBB
 
893,754

 
921,843

 
6.2
%
 
 BBB
Capital Goods
 
909,546

 
912,370

 
5.6
%
 
BBB
 
657,388

 
694,700

 
4.7
%
 
 BBB
Communications
 
1,666,341

 
1,707,885

 
10.6
%
 
BBB
 
1,448,054

 
1,572,181

 
10.6
%
 
 BBB+
Consumer Cyclical
 
805,061

 
823,400

 
5.1
%
 
BBB+
 
665,675

 
709,100

 
4.8
%
 
 BBB+
Consumer Noncyclical
 
1,527,762

 
1,577,355

 
9.8
%
 
BBB+
 
1,299,879

 
1,397,510

 
9.4
%
 
 BBB+
Energy
 
1,954,763

 
1,914,710

 
11.8
%
 
BBB+
 
1,647,847

 
1,699,885

 
11.2
%
 
 BBB
Technology
 
521,364

 
532,384

 
3.3
%
 
BBB+
 
465,256

 
485,833

 
3.3
%
 
 BBB+
Transportation
 
600,905

 
621,471

 
3.8
%
 
A-
 
453,106

 
486,736

 
3.3
%
 
 A-
Other Industrial
 
112,294

 
119,999

 
0.7
%
 
BBB+
 
108,371

 
118,279

 
0.8
%
 
 A-
Total Industrials
 
$
9,004,544

 
$
9,099,228

 
56.2
%
 
 
 
$
7,639,330

 
$
8,086,067

 
54.3
%
 
 
Utilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
1,289,487

 
1,358,435

 
8.4
%
 
BBB+
 
1,192,487

 
1,309,874

 
8.8
%
 
 BBB+
Natural Gas
 
256,190

 
265,816

 
1.6
%
 
A-
 
234,761

 
251,110

 
1.7
%
 
 A-
Other Utility
 
158,667

 
170,089

 
1.1
%
 
BBB+
 
154,458

 
172,124

 
1.2
%
 
 A-
Total Utilities
 
$
1,704,344

 
$
1,794,340

 
11.1
%
 
 
 
$
1,581,706

 
$
1,733,108

 
11.7
%
 
 
Total
 
$
15,801,362

 
$
16,173,447

 
100.0
%
 
BBB+
 
$
14,010,604

 
$
14,885,583

 
100.0
%
 
BBB+
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The Average Credit Rating designations are based on the weighted average ratings from nationally recognized rating organizations, primarily those assigned by S&P. In instances where a S&P rating is not available, the Company will reference the rating provided by Moody’s, and in the absence of both the Company will assign equivalent ratings based on information from the NAIC.


                                        
 
Page 21

    


Reinsurance Group of America, Incorporated
Investments
(USD thousands)

 
Ratings of Fixed Maturity Securities
(Excludes Funds Withheld Portfolios)

 
 
 
 
September 30, 2015
 
June 30, 2015
 
March 31, 2015
 
December 31, 2014
 
September 30, 2014
NAIC
Designation (1)
 
Rating Agency
Designation  (2)
 
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/AA/A
 
$
16,479,884

 
$
18,012,729

 
65.7
%
 
$
16,880,974

 
$
18,443,284

 
65.7
%
 
$
14,515,363

 
$
16,887,466

 
65.4
%
 
$
14,855,946

 
$
16,866,777

 
66.1
%
 
$
14,590,478

 
$
16,236,196

 
66.3
%
2
 
BBB
 
7,567,172

 
7,691,301

 
28.1
%
 
7,686,514

 
7,881,514

 
28.1
%
 
6,957,089

 
7,450,140

 
28.9
%
 
6,880,383

 
7,258,299

 
28.5
%
 
6,530,399

 
6,895,202

 
28.2
%
3
 
BB
 
1,061,245

 
1,015,762

 
3.7
%
 
932,629

 
950,069

 
3.4
%
 
799,090

 
825,796

 
3.2
%
 
750,152

 
760,531

 
3.0
%
 
729,311

 
751,110

 
3.1
%
4
 
B
 
414,775

 
389,089

 
1.4
%
 
510,894

 
504,272

 
1.8
%
 
419,277

 
404,081

 
1.6
%
 
387,456

 
372,375

 
1.5
%
 
425,094

 
421,100

 
1.7
%
5
 
CCC
 
261,015

 
246,211

 
0.9
%
 
246,203

 
242,930

 
0.9
%
 
219,271

 
214,370

 
0.8
%
 
212,905

 
208,346

 
0.8
%
 
152,363

 
150,845

 
0.6
%
6
 
In or near default
 
60,704

 
56,696

 
0.2
%
 
48,118

 
41,906

 
0.1
%
 
23,626

 
19,370

 
0.1
%
 
18,755

 
14,644

 
0.1
%
 
25,296

 
20,998

 
0.1
%
 
 
Total
 
$
25,844,795

 
$
27,411,788


100.0
%

$
26,305,332


$
28,063,975


100.0
%

$
22,933,716


$
25,801,223


100.0
%

$
23,105,597


$
25,480,972


100.0
%

$
22,452,941


$
24,475,451


100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Structured securities held by the Company’s insurance subsidiaries that maintain the National Association of Insurance Commissioners (NAIC) statutory basis of accounting that meet the definition of SSAP No. 43R utilize the NAIC rating methodology. All other securities will continue to utilize the Nationally Recognized Statistical Rating Organizations (NRSRO) ratings, as available, or equivalent rating based on information from the NAIC.
(2) The Rating Agency Designation includes all “+” or “-” at that rating level (e. g. ‘BBB’ includes ‘BBB+’, ‘BBB’, and ‘BBB-’).
 
 
Structured Fixed Maturity Securities
 
 
September 30, 2015
 
June 30, 2015
 
March 31, 2015
 
December 31, 2014
 
September 30, 2014
 
 
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
 
$
614,272

 
$
657,066

 
$
626,139

 
$
656,940

 
$
644,367

 
$
692,101

 
$
639,936

 
$
677,352

 
$
597,413

 
$
625,070

Non-agency
 
619,886

 
626,394

 
528,593

 
533,939

 
428,048

 
435,573

 
351,931

 
360,544

 
367,023

 
375,647

Total residential mortgage-backed securities
 
1,234,158

 
1,283,460

 
1,154,732

 
1,190,879

 
1,072,415

 
1,127,674

 
991,867

 
1,037,896

 
964,436

 
1,000,717

Commercial mortgage-backed securities
 
1,441,845

 
1,491,951

 
1,471,419

 
1,525,469

 
1,448,372

 
1,534,274

 
1,453,657

 
1,532,591

 
1,404,648

 
1,481,822

Asset-backed securities
 
1,055,760

 
1,061,372

 
1,051,093

 
1,062,624

 
1,082,883

 
1,098,112

 
1,059,660

 
1,069,586

 
993,028

 
1,006,048

Total
 
$
3,731,763

 
$
3,836,783

 
$
3,677,244

 
$
3,778,972

 
$
3,603,670

 
$
3,760,060

 
$
3,505,184

 
$
3,640,073

 
$
3,362,112

 
$
3,488,587

 



                                        
 
Page 22

    




 
Reinsurance Group of America, Incorporated
Investments
(USD thousands)

Gross Unrealized Losses Aging

Fixed Maturity Securities
 
 
September 30, 2015
 
June 30, 2015
 
March 31, 2015
 
December 31, 2014
 
September 30, 2014
 
 
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%
 
$
359,324

 
79.5
%
 
$
369,658

 
94.0
%
 
$
71,886

 
72.3
%
 
$
110,346

 
81.8
%
 
$
107,731

 
89.1
%
20% or more for less than six months
 
69,197

 
15.3
%
 
9,253

 
2.3
%
 
14,581

 
14.7
%
 
13,698

 
10.1
%
 
683

 
0.6
%
20% or more for six months or greater
 
14,480

 
3.2
%
 
10,328

 
2.6
%
 
11,546

 
11.6
%
 
9,254

 
6.9
%
 
9,510

 
7.9
%
Total
 
$
443,001


98.0
%

$
389,239


98.9
%

$
98,013


98.6
%

$
133,298


98.8
%

$
117,924


97.6
%

 
Equity Securities
 
 
September 30, 2015
 
June 30, 2015
 
March 31, 2015
 
December 31, 2014
 
September 30, 2014
 
 
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%
 
$
4,127

 
0.9
%
 
$
3,654

 
0.9
%
 
$
712

 
0.7
%
 
$
1,619

 
1.2
%
 
$
2,926

 
2.4
%
20% or more for less than six months
 
3,687

 
0.8
%
 
948

 
0.2
%
 
737

 
0.7
%
 
—

 
0.0
%
 
—

 
0.0
%
20% or more for six months or greater
 
1,243

 
0.3
%
 
—

 
0.0
%
 
—

 
0.0
%
 
2

 
0.0
%
 
2

 
0.0
%
Total
 
$
9,057


2.0
%

$
4,602


1.1
%

$
1,449


1.4
%

$
1,621


1.2
%

$
2,928


2.4
%
 



                                        
 
Page 23

    



 
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Fixed Maturities and Equity Securities Below Amortized Cost
(Excludes Funds Withheld Portfolios)

 
 
As of September 30, 2015
 
 
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
 
$
4,647,733

 
$
216,291

 
$
302,808

 
$
30,784

 
$
4,950,541

 
$
247,075

Canadian and Canadian provincial governments
 
81,615

 
929

 
—

 
—

 
81,615

 
929

Residential mortgage-backed securities
 
231,621

 
2,363

 
66,339

 
3,247

 
297,960

 
5,610

Asset-backed securities
 
289,210

 
3,234

 
182,478

 
6,193

 
471,688

 
9,427

Commercial mortgage-backed securities
 
222,799

 
3,499

 
24,236

 
1,122

 
247,035

 
4,621

U.S. government and agencies
 
909,226

 
40,963

 
—

 
—

 
909,226

 
40,963

State and political subdivisions
 
128,633

 
4,204

 
13,206

 
3,542

 
141,839

 
7,746

Other foreign government, supranational, and foreign
government-sponsored enterprises
 
293,121

 
9,368

 
37,900

 
3,353

 
331,021

 
12,721

Investment grade securities
 
6,803,958

 
280,851

 
626,967

 
48,241

 
7,430,925

 
329,092

 
 
 
 
 
 
 
 
 
 
 
 
 
Below investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
659,513

 
60,972

 
112,210

 
22,565

 
771,723

 
83,537

Residential mortgage-backed securities
 
42,309

 
445

 
8,797

 
354

 
51,106

 
799

Asset-backed securities
 
6,905

 
85

 
13,677

 
1,847

 
20,582

 
1,932

Commercial mortgage-backed securities
 
3,238

 
262

 
7,280

 
3,566

 
10,518

 
3,828

State and political subdivisions
 
—

 
—

 
—

 
—

 
—

 
—

Other foreign government, supranational, and
foreign government-sponsored enterprises
 
87,340

 
16,297

 
20,541

 
7,516

 
107,881

 
23,813

Below investment grade securities
 
799,305

 
78,061

 
162,505

 
35,848

 
961,810

 
113,909

Total fixed maturity securities
 
$
7,603,263

 
$
358,912

 
$
789,472

 
$
84,089

 
$
8,392,735

 
$
443,001

 
 
 
 
 
 
 
 
 
 
 
 
 
Non-redeemable preferred stock
 
38,857

 
5,481

 
6,411

 
2,273

 
45,268

 
7,754

Other equity securities
 
25,619

 
1,303

 
—

 
—

 
25,619

 
1,303

Total equity securities
 
$
64,476

 
$
6,784

 
$
6,411

 
$
2,273

 
$
70,887

 
$
9,057

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
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
 
$
1,225,767

 
$
27,784

 
$
614,294

 
$
30,040

 
$
1,840,061

 
$
57,824

Canadian and Canadian provincial governments
 
—

 
—

 
1,235

 
7

 
1,235

 
7

Residential mortgage-backed securities
 
78,864

 
846

 
135,414

 
5,247

 
214,278

 
6,093

Asset-backed securities
 
332,785

 
4,021

 
109,411

 
4,289

 
442,196

 
8,310

Commercial mortgage-backed securities
 
78,632

 
564

 
28,375

 
2,461

 
107,007

 
3,025

U.S. government and agencies
 
81,317

 
89

 
32,959

 
426

 
114,276

 
515

State and political subdivisions
 
13,780

 
17

 
18,998

 
3,438

 
32,778

 
3,455

Other foreign government, supranational, and foreign government-sponsored enterprises
 
156,725

 
7,007

 
76,111

 
2,946

 
232,836

 
9,953

Investment grade securities
 
1,967,870

 
40,328

 
1,016,797

 
48,854

 
2,984,667

 
89,182

 
 
 
 
 
 
 
 
 
 
 
 
 
Below investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
415,886

 
29,316

 
32,567

 
3,404

 
448,453

 
32,720

Residential mortgage-backed securities
 
22,836

 
293

 
6,284

 
225

 
29,120

 
518

Asset-backed securities
 
12,448

 
274

 
7,108

 
1,791

 
19,556

 
2,065

Commercial mortgage-backed securities
 
3,288

 
249

 
5,580

 
5,385

 
8,868

 
5,634

State and political subdivisions
 
964

 
43

 
—

 
—

 
964

 
43

Other foreign government, supranational, and
foreign government-sponsored enterprises
 
13,986

 
3,136

 
—

 
—

 
13,986

 
3,136

Below investment grade securities
 
469,408

 
33,311

 
51,539

 
10,805

 
520,947

 
44,116

Total fixed maturity securities
 
$
2,437,278

 
$
73,639

 
$
1,068,336

 
$
59,659

 
$
3,505,614

 
$
133,298

 
 
 
 
 
 
 
 
 
 
 
 
 
Non-redeemable preferred stock
 
11,619

 
235

 
19,100

 
1,292

 
30,719

 
1,527

Other equity securities
 
—

 
—

 
3,545

 
94

 
3,545

 
94

Total equity securities
 
$
11,619

 
$
235

 
$
22,645

 
$
1,386

 
$
34,264

 
$
1,621

 



                                        
 
Page 24

    


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,
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
 
 
 
Sept. 30,
 
Sept. 30,
 
 
 
 
2015
 
2015
 
2015
 
2014
 
2014
 
 
 
 
2015
 
2014
 
Change
Fixed Maturity and Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other-than-temporary impairment losses on fixed maturities
 
$
(23,111
)
 
$
(4,137
)
 
$
(2,527
)
 
$
(6,347
)
 
$
(246
)
 
$
(22,865
)
 
 
 
$
(29,775
)
 
$
(1,419
)
 
$
(28,356
)
Gain on investment activity
 
13,792

 
20,009

 
19,201

 
13,662

 
8,819

 
4,973

 
 
 
53,002

 
51,773

 
1,229

Loss on investment activity
 
(22,186
)
 
(14,475
)
 
(13,596
)
 
(11,480
)
 
(6,355
)
 
(15,831
)
 
 
 
(50,257
)
 
(19,815
)
 
(30,442
)
Net gain/(loss) on fixed maturity and equity securities
 
(31,505
)
 
1,397

 
3,078

 
(4,165
)
 
2,218

 
(33,723
)
 
 
 
(27,030
)
 
30,539

 
(57,569
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other impairment losses and change in mortgage loan provision
 
(636
)
 
143

 
(4,168
)
 
371

 
(2,041
)
 
1,405

 
 
 
(4,661
)
 
(5,686
)
 
1,025

Other non-derivative gain/(loss), net
 
(2,006
)
 
976

 
17,375

 
2,759

 
2,298

 
(4,304
)
 
 
 
16,345

 
19,863

 
(3,518
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Free-standing Derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit default swaps
 
(8,407
)
 
(187
)
 
2,658

 
2,658

 
(1,389
)
 
(7,018
)
 
 
 
(5,936
)
 
1,280

 
(7,216
)
Interest rate swaps - non-hedged
 
42,014

 
(41,729
)
 
29,344

 
33,812

 
9,114

 
32,900

 
 
 
29,629

 
61,017

 
(31,388
)
Interest rate swaps - hedged
 
—

 
—

 
7

 
10

 
8

 
(8
)
 
 
 
7

 
9

 
(2
)
Foreign currency swaps - hedged (1)
 
(2,135
)
 
—

 
—

 
—

 
—

 
(2,135
)
 
 
 
(2,135
)
 
—

 
(2,135
)
Futures
 
16,655

 
(2,183
)
 
(7,331
)
 
(6,728
)
 
6,446

 
10,209

 
 
 
7,141

 
(2,822
)
 
9,963

CPI swaps
 
(250
)
 
168

 
(71
)
 
(536
)
 
(274
)
 
24

 
 
 
(153
)
 
193

 
(346
)
Equity options
 
15,149

 
(2,605
)
 
(8,067
)
 
(5,724
)
 
1,017

 
14,132

 
 
 
4,477

 
(16,748
)
 
21,225

Currency forwards
 
707

 
(1,433
)
 
(220
)
 
(5,746
)
 
(5,277
)
 
5,984

 
 
 
(946
)
 
(2,945
)
 
1,999

Bond forwards
 
610

 
1,495

 
(840
)
 
—

 
—

 
610

 
 
 
1,265

 
—

 
1,265

Interest rate options
 
—

 
—

 
3,276

 
11,490

 
865

 
(865
)
 
 
 
3,276

 
4,151

 
(875
)
Total free-standing derivatives
 
64,343

 
(46,474
)
 
18,756

 
29,236

 
10,510

 
53,833

 
 
 
36,625

 
44,135

 
(7,510
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded Derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Modified coinsurance and funds withheld treaties
 
(46,169
)
 
(23,098
)
 
(2,325
)
 
(14,523
)
 
56,812

 
(102,981
)
 
 
 
(71,592
)
 
212,888

 
(284,480
)
GMXB
 
(95,373
)
 
50,878

 
(25,133
)
 
(52,901
)
 
(47,479
)
 
(47,894
)
 
 
 
(69,628
)
 
(76,323
)
 
6,695

Total embedded derivatives
 
(141,542
)
 
27,780

 
(27,458
)
 
(67,424
)
 
9,333

 
(150,875
)
 
 
 
(141,220
)
 
136,565

 
(277,785
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net gain/(loss) on total derivatives
 
(77,199
)
 
(18,694
)
 
(8,702
)
 
(38,188
)
 
19,843

 
(97,042
)
 
 
 
(104,595
)
 
180,700

 
(285,295
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment related gains / (losses), net
 
$
(111,346
)
 
$
(16,178
)
 
$
7,583

 
$
(39,223
)
 
$
22,318

 
$
(133,664
)
 
 
 
$
(119,941
)
 
$
225,416

 
$
(345,357
)
(1) The company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net gains/(losses) on total derivatives.
 

                                        
 
Page 25