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Condensed Financial Information of The Registrant
 12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of The Registrant
REINSURANCE GROUP OF AMERICA, INCORPORATED
SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
December 31,
(dollars in thousands)
 
 
 
2017
 
2016
 
2015
CONDENSED BALANCE SHEETS
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Fixed maturity securities available-for-sale, at fair value
 
$
710,303

 
$
1,154,559

 
 
Short-term and other investments
 
54,517

 
245,478

 
 
Cash and cash equivalents
 
15,176

 
43,718

 
 
Investment in subsidiaries
 
12,043,911

 
9,209,700

 
 
Loans to subsidiaries
 
1,010,000

 
1,050,000

 
 
Other assets
 
234,707

 
258,379

 
 
Total assets
 
$
14,068,614

 
$
11,961,834

 
 
Liabilities and stockholders’ equity:
 
 
 
 
 
 
Long-term debt - unaffiliated(1)
 
$
2,775,579

 
$
3,073,249

 
 
Long-term debt - affiliated(2)
 
500,000

 
500,000

 
 
Other liabilities
 
1,223,500

 
1,295,503

 
 
Stockholders’ equity
 
9,569,535

 
7,093,082

 
 
Total liabilities and stockholders’ equity
 
$
14,068,614

 
$
11,961,834

 
 
CONDENSED STATEMENTS OF INCOME
 
 
 
 
 
 
Interest / dividend income(3)
 
$
131,067

 
$
602,830

 
$
321,645

Investment related gains (losses), net
 
(5,187
)
 
203

 
(324
)
Operating expenses
 
(20,517
)
 
(20,742
)
 
(13,652
)
Interest expense
 
(177,417
)
 
(168,924
)
 
(176,364
)
Income (loss) before income tax and undistributed earnings of subsidiaries
 
(72,054
)
 
413,367

 
131,305

Income tax expense (benefit)
 
65,882

 
(23,911
)
 
(19,465
)
Net income (loss) before undistributed earnings of subsidiaries
 
(137,936
)
 
437,278

 
150,770

Equity in undistributed earnings of subsidiaries
 
1,960,117

 
264,165

 
351,396

Net income
 
1,822,181

 
701,443

 
502,166

Other comprehensive income (loss)
 
(7,672
)
 
5,531

 
44,073

Total comprehensive income
 
$
1,814,509

 
$
706,974

 
$
546,239


The condensed financial information of RGA (the “Parent Company”) should be read in conjunction with the consolidated financial statements of RGA and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect the results of operations, financial position and cash flows for RGA. Investments in subsidiaries are accounted for using the equity method of accounting.
(1)
Long-term debt - unaffiliated consists of the following:
 
 
2017
 
2016
$300 million 5.625% Senior Notes due 2017
 
$
—

 
$
299,945

$400 million 6.45% Senior Notes due 2019
 
399,873

 
399,805

$400 million 5.00% Senior Notes due 2021
 
399,245

 
399,025

$400 million 4.70% Senior Notes due 2023
 
399,138

 
398,986

$400 million 3.95% Senior Notes due 2026
 
399,987

 
399,985

$400 million 6.20% Subordinated Debentures due 2042
 
400,000

 
400,000

$400 million 5.75% Subordinated Debentures due 2056
 
400,000

 
400,000

$400 million Variable Rate Junior Subordinated Debentures due 2065
 
398,670

 
398,667

Subtotal
 
2,796,913

 
3,096,413

Unamortized debt issue costs
 
(21,334
)
 
(23,164
)
Total
 
$
2,775,579

 
$
3,073,249

Repayments of long-term debt—unaffiliated due over the next five years total $400,000 in 2019 and $400,000 in 2021.
(2)
Long-term debt—affiliated in 2017 and 2016 and consists of $500,000 of subordinated debt issued to various operating subsidiaries.
(3)
Interest/Dividend income includes $478,602 and $196,445 of cash dividends received from consolidated subsidiaries in 2016 and 2015, respectively. In 2017 there were no cash dividends received from consolidated subsidiaries.
REINSURANCE GROUP OF AMERICA, INCORPORATED
SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT (continued)
December 31,
(dollars in thousands)
 
 
 
2017
 
2016
 
2015
CONDENSED STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
Operating activities:
 
 
Net income
 
$
1,822,181

 
$
701,443

 
$
502,166

Equity in earnings of subsidiaries
 
(1,960,117
)
 
(264,165
)
 
(351,396
)
Other, net
 
57,677

 
(63,795
)
 
486,159

Net cash (used in) provided by operating activities
 
(80,259
)
 
373,483

 
636,929

Investing activities:
 
 
 
 
 
 
Sales of fixed maturity securities available-for-sale
 
514,508

 
228,383

 
100,734

Purchases of fixed maturity securities available-for-sale
 
(75,000
)
 
(984,397
)
 
(52,698
)
Repayments/issuances of loans to subsidiaries
 
40,000

 
20,000

 
(10,000
)
Purchase of a business, net of cash acquired of $529
 
—

 
—

 
(3,701
)
Change in short-term investments
 
—

 
102,508

 
(102,508
)
Change in other invested assets
 
125,506

 
(109,914
)
 
(7,542
)
Capital contributions to subsidiaries
 
(62,500
)
 
(314,142
)
 
(103,832
)
Net cash (used in) provided by investing activities
 
542,514

 
(1,057,562
)
 
(179,547
)
Financing activities:
 
 
 
 
 
 
Dividends to stockholders
 
(117,291
)
 
(100,371
)
 
(93,381
)
Purchases of treasury stock
 
(43,508
)
 
(122,916
)
 
(384,519
)
Exercise of stock options, net
 
7,292

 
15,321

 
11,151

Net change in cash collateral for loaned securities
 
(37,290
)
 
105,093

 
—

Principal payments on debt
 
(300,000
)
 
—

 
—

Proceeds from unaffiliated long-term debt issuance
 
—

 
799,984

 
—

Debt issuance costs
 
—

 
(8,766
)
 
—

Net cash (used in) provided by financing activities
 
(490,797
)
 
688,345

 
(466,749
)
Net change in cash and cash equivalents
 
(28,542
)
 
4,266

 
(9,367
)
Cash and cash equivalents at beginning of year
 
43,718

 
39,452

 
48,819

Cash and cash equivalents at end of year
 
$
15,176

 
$
43,718

 
$
39,452

Supplementary information:
 
 
 
 
 
 
Cash paid for interest
 
$
185,554

 
$
169,860

 
$
165,775

Cash paid for income taxes, net of refunds
 
$
8,248

 
$
1,500

 
$
(120,680
)