| Comprehensive Income |
EQUITY Common stock The changes in number of common stock shares, issued, held in treasury and outstanding are as follows for the periods indicated: | | | | | | | | | | | | | Issued | | Held In Treasury | | Outstanding | Balance, December 31, 2016 | | 79,137,758 |
| | 14,835,256 |
| | 64,302,502 |
| Common Stock acquired | | — |
| | 208,680 |
| | (208,680 | ) | Stock-based compensation (1) | | — |
| | (358,273 | ) | | 358,273 |
| Balance, December 31, 2017 | | 79,137,758 |
| | 14,685,663 |
| | 64,452,095 |
| Common Stock acquired | | — |
| | 1,932,055 |
| | (1,932,055 | ) | Stock-based compensation (1) | | — |
| | (294,328 | ) | | 294,328 |
| Balance, December 31, 2018 | | 79,137,758 |
| | 16,323,390 |
| | 62,814,368 |
| Common Stock acquired | | — |
| | 546,614 |
| | (546,614 | ) | Stock-based compensation (1) | | — |
| | (388,348 | ) | | 388,348 |
| Balance, December 31, 2019 | | 79,137,758 |
| | 16,481,656 |
| | 62,656,102 |
|
| | (1) | Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. |
Common stock held in treasury Common stock held in treasury is accounted for at average cost. Gains resulting from the reissuance of “Common stock held in treasury” are credited to “Additional paid-in capital.” Losses resulting from the reissuance of “Common stock held in treasury” are charged first to “Additional paid-in capital” to the extent the Company has previously recorded gains on treasury share transactions, then to “Retained earnings.” On January 24, 2019, RGA’s board of directors authorized a share repurchase program for up to $400 million of RGA’s outstanding common stock. The authorization was effective immediately and does not have an expiration date. In connection with this authorization, the board of directors terminated the stock repurchase authority granted in 2017. The following table summarizes the Company’s current share repurchase program activity for the year ended 2019 (dollar amounts in millions, except for the number of shares and per share amounts): | | | | | | | | | | | | | Year of Repurchase | | Shares Repurchased | | Amount Paid | | Average Per Share | 2019 | | 546,614 |
| | $ | 80 |
| | $ | 146.00 |
|
The timing and amount of share repurchases are determined by management based upon market conditions and other considerations. Factors could affecting the timing and amount of any future repurchases under the share repurchase authorization, include increased capital needs of the Company due to changes in regulatory capital requirements, opportunities for growth and acquisitions, and the effect of adverse market conditions on the segments. Accumulated other comprehensive income (loss) The following table presents the components of the Company’s other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 (dollars in millions): For the year ended December 31, 2019: | | | | | | | | | | | | | | | | Before-Tax Amount | | Tax (Expense) Benefit | | After-Tax Amount | Foreign currency translation adjustments: | | | | | | | Change arising during year | | $ | 113 |
| | $ | (10 | ) | | $ | 103 |
| Foreign currency swap | | (33 | ) | | 7 |
| | (26 | ) | Net foreign currency translation adjustments | | 80 |
| | (3 | ) | | 77 |
| Unrealized gains on investments:(1) | | | | | | | Unrealized net holding gains arising during the year | | 3,208 |
| | (698 | ) | | 2,510 |
| Less: Reclassification adjustment for net gains realized in net income | | 84 |
| | (17 | ) | | 67 |
| Net unrealized gains | | 3,124 |
| | (681 | ) | | 2,443 |
| Change in unrealized OTTI on fixed maturity securities | | — |
| | — |
| | — |
| Unrealized pension and postretirement benefits: | | | | | | | Net prior service cost arising during the year | | (1 | ) | | — |
| | (1 | ) | Net gain (loss) arising during the period | | (23 | ) | | 5 |
| | (18 | ) | Unrealized pension and postretirement benefits, net | | (24 | ) | | 5 |
| | (19 | ) | Other comprehensive income (loss) | | $ | 3,180 |
| | $ | (679 | ) | | $ | 2,501 |
|
For the year ended December 31, 2018: | | | | | | | | | | | | | | | | Before-Tax Amount | | Tax (Expense) Benefit | | After-Tax Amount | Foreign currency translation adjustments: | | | | | | | Change arising during year | | $ | (148 | ) | | $ | (1 | ) | | $ | (149 | ) | Foreign currency swap | | 87 |
| | (18 | ) | | 69 |
| Net foreign currency translation adjustments | | (61 | ) | | (19 | ) | | (80 | ) | Unrealized gains on investments:(1) | | | | | | | Unrealized net holding gains arising during the year | | (1,834 | ) | | 394 |
| | (1,440 | ) | Less: Reclassification adjustment for net gains realized in net income | | (122 | ) | | 26 |
| | (96 | ) | Net unrealized gains | | (1,712 | ) | | 368 |
| | (1,344 | ) | Change in unrealized OTTI on fixed maturity securities | | — |
| | — |
| | — |
| Unrealized pension and postretirement benefits: | | | | | | | Net prior service cost arising during the year | | (1 | ) | | — |
| | (1 | ) | Net gain arising during the period | | 1 |
| | — |
| | 1 |
| Unrealized pension and postretirement benefits, net | | — |
| | — |
| | — |
| Other comprehensive income (loss) | | $ | (1,773 | ) | | $ | 349 |
| | $ | (1,424 | ) |
For the year ended December 31, 2017: | | | | | | | | | | | | | | | | Before-Tax Amount | | Tax (Expense) Benefit | | After-Tax Amount | Foreign currency translation adjustments: | | | | | | | Change arising during year | | $ | 75 |
| | $ | 25 |
| | $ | 100 |
| Foreign currency swap | | (48 | ) | | 17 |
| | (31 | ) | Net foreign currency translation adjustments | | 27 |
| | 42 |
| | 69 |
| Unrealized gains on investments:(1) | | | | | | | Unrealized net holding gains arising during the year | | 1,030 |
| | (314 | ) | | 716 |
| Less: Reclassification adjustment for net gains realized in net income | | 25 |
| | (7 | ) | | 18 |
| Net unrealized gains | | 1,005 |
| | (307 | ) | | 698 |
| Change in unrealized OTTI on fixed maturity securities | | — |
| | — |
| | — |
| Unrealized pension and postretirement benefits: | | | | | | | Net prior service cost arising during the year | | 12 |
| | (4 | ) | | 8 |
| Net gain arising during the period | | (11 | ) | | 4 |
| | (7 | ) | Unrealized pension and postretirement benefits, net | | 1 |
| | — |
| | 1 |
| Other comprehensive income (loss) | | $ | 1,033 |
| | $ | (265 | ) | | $ | 768 |
|
| | (1) | Includes cash flow hedges. See Note 5 for additional information on cash flow hedges. |
A summary of the components of net unrealized appreciation (depreciation) of balances carried at fair value is as follows (dollars in millions): | | | | | | | | | | | | | | For the years ended December 31, | | 2019 | | 2018 | | 2017 | Change in net unrealized appreciation (depreciation) on: | | | | | | | Fixed maturity securities available-for-sale | | $ | 3,258 |
| | $ | (1,759 | ) | | $ | 988 |
| Other investments(1) | | (37 | ) | | 20 |
| | 25 |
| Effect on unrealized appreciation on: | | | | | | | Deferred policy acquisition costs | | (98 | ) | | 27 |
| | (8 | ) | Net unrealized appreciation (depreciation) | | $ | 3,123 |
| | $ | (1,712 | ) | | $ | 1,005 |
|
| | (1) | Includes cash flow hedges. See Note 5 for additional information on cash flow hedges. |
The balance of and changes in each component of AOCI were as follows (dollars in millions): | | | | | | | | | | | | | | | | | | | | Accumulated Currency Translation Adjustments | | Unrealized Appreciation (Depreciation) of Investments (1) | | Pension and Postretirement Benefits | | Accumulated Other Comprehensive Income (Loss) | Balance, December 31, 2016 | | $ | (172 | ) | | $ | 1,355 |
| | $ | (44 | ) | | $ | 1,139 |
| OCI before reclassifications | | 27 |
| | 1,039 |
| | (4 | ) | | 1,062 |
| Amounts reclassified from AOCI | | — |
| | (34 | ) | | 5 |
| | (29 | ) | Deferred income tax benefit (expense) | | 42 |
| | (307 | ) | | — |
| | (265 | ) | Adoption of new accounting standard | | 17 |
| | 148 |
| | (8 | ) | | 157 |
| Balance, December 31, 2017 | | (86 | ) | | 2,201 |
|
| (51 | ) | | 2,064 |
| OCI before reclassifications | | (60 | ) | | (1,861 | ) | | (5 | ) | | (1,926 | ) | Amounts reclassified from AOCI | | — |
| | 148 |
| | 5 |
| | 153 |
| Deferred income tax benefit (expense) | | (19 | ) | | 368 |
| | — |
| | 349 |
| Adoption of new accounting standard | | (4 | ) | | — |
| | — |
| | (4 | ) | Balance, December 31, 2018 | | (169 | ) | | 856 |
| | (51 | ) | | 636 |
| OCI before reclassifications | | 80 |
| | 3,306 |
| | (28 | ) | | 3,358 |
| Amounts reclassified from AOCI | | — |
| | (182 | ) | | 4 |
| | (178 | ) | Deferred income tax benefit (expense) | | (3 | ) | | (681 | ) | | 5 |
| | (679 | ) | Balance, December 31, 2019 | | $ | (92 | ) | | $ | 3,299 |
| | $ | (70 | ) | | $ | 3,137 |
|
| | (1) | Includes cash flow hedges of $(26), $9 and $3 as of December 31, 2019, 2018 and 2017, respectively. See Note 5 for additional information on cash flow hedges. |
The following table presents the amounts of AOCI reclassifications for the years ended December 31, 2019 and 2018 (dollars in millions): | | | | | | | | | | | | | | Amount Reclassified from AOCI | | | Details about AOCI Components | | 2019 | | 2018 | | Affected Line Item in Statement of Income | Net unrealized investment gains (losses): | | | | | | | Net unrealized gains and losses on available-for-sale securities | | $ | 84 |
| | $ | (122 | ) | | Investment related gains (losses), net | Cash flow hedges - Interest rate | | 1 |
| | — |
| | (1) | Cash flow hedges - Currency/Interest rate | | — |
| | — |
| | (1) | Cash flow hedges - Forward bond purchase commitments | | — |
| | — |
| | (1) | Deferred policy acquisition costs attributed to unrealized gains and losses | | 97 |
| | (27 | ) | | (2) | Total | | 182 |
| | (149 | ) | | | Provision for income taxes | | (38 | ) | | 31 |
| | | Net unrealized gains (losses), net of tax | | $ | 144 |
| | $ | (118 | ) | | | | | | | | | | Amortization of defined benefit plan items: | | | | | | | Prior service cost (credit) | | $ | 1 |
| | $ | 1 |
| | (3) | Actuarial gains/(losses) | | (5 | ) | | (6 | ) | | (3) | Total | | (4 | ) | | (5 | ) | | | Provision for income taxes | | 1 |
| | 1 |
| | | Amortization of defined benefit plans, net of tax | | $ | (3 | ) | | $ | (4 | ) | | | | | | | | | | Total reclassifications for the period | | $ | 141 |
| | $ | (122 | ) | | |
| | (1) | See Note 5 for information on cash flow hedges. |
| | (2) | See Note 8 for information on deferred policy acquisition costs. |
(3) See Note 10 for information on employee benefit plans.
|