EX-99.1 2 exh99p1.txt Exhibit 99.1 [RGA logo] For further information, contact Jack B. Lay Executive Vice President and Chief Financial Officer (636) 736-7439 FOR IMMEDIATE RELEASE --------------------- REINSURANCE GROUP OF AMERICA REPORTS INCREASES ---------------------------------------------- IN SECOND-QUARTER PREMIUMS AND EARNINGS --------------------------------------- ST. LOUIS, July 27, 2004 - Reinsurance Group of America, Incorporated (NYSE:RGA), a leading provider of life reinsurance, reported net income for the second quarter of $65.3 million, or $1.04 per diluted share, compared to net income of $42.6 million, or $0.85 per diluted share in the prior-year quarter, a 22 percent increase on a diluted per-share basis. Second-quarter net premiums increased 37 percent, to $797.3 million from $582.6 million in 2003. Net investment income totaled $134.2 million versus $115.9 million the year before. RGA uses a non-GAAP financial measure called operating income as a basis for analyzing financial results. The definition of operating income and reconciliations to GAAP net income are provided in the following tables. Operating income for the quarter increased 11 percent on a diluted per-share basis and totaled $57.2 million, or $0.91 per diluted share compared to $41.2 million, or $0.82 per diluted share in the year-ago quarter. A. Greig Woodring, president and chief executive officer, commented, "We are very pleased with that rate of growth in operating earnings per share, considering we are comparing to a strong second quarter result in 2003, a period in which operating earnings per share increased 21 percent. Additionally, we issued 12.1 million of new common shares late last year. - more - Add One "Net premiums in the U.S. increased $151.9 million, or 40 percent over the prior-year quarter. The transaction with Allianz that we closed in the fourth quarter of 2003 contributes approximately $120 million of net premiums per quarter. That block continues to perform well and the integration remains on schedule. Pre-tax net income in the U.S. for the quarter totaled $75.8 million compared to $55.8 million in the prior-year quarter, primarily because of much higher net premium levels. Pre-tax operating income for the quarter totaled $68.4 million, a 23 percent increase over $55.7 million reported in the prior-year quarter. Mortality experience was somewhat unfavorable as we recorded a higher-than-expected number of large claims during the quarter. U.S. operations also include our Asset Intensive and Financial Reinsurance businesses, each of which posted strong results. "Our Canada operations reported a strong quarter, with pre-tax net income of $21.2 million compared to $13.4 million a year ago. Pre-tax operating income totaled $14.3 million, up 49 percent from $9.6 million. Mortality experience was better than anticipated. Net premiums increased $9.8 million, or 19 percent for the quarter, and totaled $61.8 million. Approximately $1.9 million of the increase in net premiums and approximately $0.3 million of the increase in pre-tax operating income were the result of the continued strength of the Canadian dollar. "Other International operations, which include our Asia Pacific and Europe and South Africa segments, continued their strong growth, with net premiums increasing 36 percent to $203.1 million in the quarter. Stronger foreign currencies contributed approximately $17.8 million to the premium growth. Pre-tax net income totaled $16.5 million compared to $8.4 million in the prior-year quarter. Pre-tax operating income for the quarter totaled $15.5 million, an 82 percent increase over the $8.5 million result in the prior-year period. Approximately $1.3 million of that increase was the result of foreign currency appreciation. Segment-wide mortality experience for the quarter was slightly better than anticipated due to favorable results in the United Kingdom. We continue to experience profit expansion from these operations as reinsurance in force increases; however, those results may be more volatile than our North America operations due to the smaller size and relative aging of this business." - more - Add Two For the first half of 2004, net income totaled $127.1 million, or $2.03 per diluted share, compared to $75.3 million, or $1.51 per diluted share, in the year-ago period. Operating income increased to $109.3 million, or $1.74 per diluted share, from $80.1 million, or $1.61 per diluted share. Consolidated premiums were up 43 percent, to $1,611.2 million from $1,127.8 million. Woodring concluded, "We are pleased with the financial results for the second quarter and first six months of 2004. As the life reinsurance market continues to evolve, we have maintained a steady and consistent course benefiting both our shareholders and clients." The company announced that its board of directors declared a regular quarterly dividend of $0.06 per share, payable August 27 to shareholders of record as of August 6. A conference call to discuss the company's second-quarter results will begin at 9 a.m. Eastern Time on Wednesday, July 28. Interested parties may access the call by dialing 800-210-9006 (domestic) or 719-457-2621 (international). The access code is 626816. A live audio webcast of the conference call will be available on the company's investor relations web page at www.rgare.com. A replay of the conference call will be available at the same address for three months following the conference call. A replay of the conference call will also be available via telephone through August 5 at 888-203-1112 (domestic) or 719-457-0820, access code 626816. Reinsurance Group of America, Incorporated, through its subsidiaries, RGA Reinsurance Company and RGA Life Reinsurance Company of Canada, is among the largest global providers of life reinsurance. In addition to its U.S. and Canadian operations, Reinsurance Group of America, Incorporated has subsidiary companies or offices in Australia, Barbados, Hong Kong, India, Ireland, Japan, Mexico, South Africa, South Korea, Spain, Taiwan, and the United Kingdom. Worldwide, the company has approximately $1.4 trillion of life reinsurance in force, and assets of $12.5 billion. MetLife, Inc. is the beneficial owner of approximately 52 percent of RGA's outstanding shares. - more - Add Three CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS --------------------------------------------------------- This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements relating to projections of the earnings, revenues, income or loss, future financial performance and growth potential of Reinsurance Group of America, Incorporated and its subsidiaries (which we refer to in the following paragraphs as "we," "us" or "our"). The words "intend," "expect," "project," "estimate," "predict," "anticipate," "should," "believe," and other similar expressions also are intended to identify forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance and achievements could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. Numerous important factors could cause actual results and events to differ materially from those expressed or implied by forward-looking statements including, without limitation, (1) adverse changes in mortality, morbidity or claims experience, (2) changes in our financial strength and credit ratings or those of MetLife, Inc. ("MetLife"), the beneficial owner of a majority of our common shares, or its subsidiaries, and the effect of such changes on our future results of operations and financial condition, (3) general economic conditions affecting the demand for insurance and reinsurance in our current and planned markets, (4) market or economic conditions that adversely affect our ability to make timely sales of investment securities, (5) changes in investment portfolio yields due to interest rate or credit quality changes, (6) fluctuations in U.S. or foreign currency exchange rates, interest rates, or securities and real estate markets, (7) adverse litigation or arbitration results, (8) the stability of governments and economies in the markets in which we operate, (9) competitive factors and competitors' responses to our initiatives, (10) the success of our clients, (11) successful execution of our entry into new markets, (12) successful development and introduction of new products, (13) our ability to successfully integrate and operate reinsurance business that we acquire, including without limitation, the traditional life reinsurance business of Allianz Life, (14) regulatory action that may be taken by state Departments of Insurance with respect to us, MetLife, or its subsidiaries, (15) changes in laws, regulations, and accounting standards applicable to us, our subsidiaries, or our business, and (16) other risks and uncertainties described in this document and in our other filings with the Securities and Exchange Commission. - more - Add Four Forward-looking statements should be evaluated together with the many risks and uncertainties that affect our business, including those mentioned in this document and described in the periodic reports we file with the Securities and Exchange Commission. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made. We do not undertake any obligations to update these forward-looking statements, even though our situation may change in the future. We qualify all of our forward-looking statements by these cautionary statements. - tables attached - Add Five Operating Income 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 the effect of net realized capital gains and losses, as well as changes in the fair value of embedded derivatives and related deferred acquisition costs. These items tend to be highly variable, 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 and the cumulative effect of any accounting changes, which 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. REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Net Income From Continuing Operations to Operating Income (Dollars in thousands, except per share data)
Three Months Ended Six Months Ended June 30, June 30, -------------------------------------- 2004 2003 2004 2003 ---- ---- ---- ---- GAAP net income-continuing operations $68,390 $43,586 $131,384 $76,746 Realized investment (gains)/losses (8,175) (2,620) (20,859) 3,462 Change in value of embedded derivatives (1) (2,716) -- (975) -- DAC offset for realized investment (gains)/losses, net (281) 221 (244) (157) ------------------------------------- Operating income $57,218 $41,187 $109,306 $80,051 (1) Net of DAC offset of $8,640 and $11,370 for the three and six months ended June 30, 2004, respectively.
- more - Add Six REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Net Income From Continuing Operations to Pre-tax Operating Income (Dollars in thousands, except per share data)
Three Months Ended June 30, 2004 Pre-tax Realized Change in Pre-tax net investment value of operating income (gains)/ embedded income (loss) losses, net derivative (loss) ------- ----------- ---------- --------- U.S. Operations: Traditional $ 63,101 $ (3,662) $ -- $ 59,439 Asset Intensive 9,488 388 (1) (4,179) 5,697 Financial Reinsurance 3,221 -- -- 3,221 ------------------------------------------ Total U.S. 75,810 (3,274) (4,179) 68,357 Canada Operations 21,211 (6,869) -- 14,342 Asia Pacific Operations 4,694 149 -- 4,843 Europe & South Africa 11,829 (1,143) -- 10,686 ------------------------------------------ Other Intl Operations 16,523 (994) -- 15,529 Corporate & Other (8,151) (1,987) -- (10,138) ------------------------------------------ Consolidated $105,393 $(13,124) $(4,179) $ 88,090 ========================================== (1) Net of DAC offset $(433) Three Months Ended June 30, 2003 Pre-tax Realized Pre-tax net investment operating income (gains)/ income (loss) losses, net (loss) ------- ----------- --------- U.S. Operations: Traditional $46,073 $ 714 $ 46,787 Asset Intensive 6,944 (807)(1) 6,137 Financial Reinsurance 2,744 -- 2,744 ------------------------------ Total U.S. 55,761 (93) 55,668 Canada Operations 13,429 (3,825) 9,604 Asia Pacific Operations 4,527 131 4,658 Europe & South Africa 3,902 (23) 3,879 ------------------------------ Other Intl Operations 8,429 108 8,537 Corporate & Other (10,610) 107 (10,503) ------------------------------ Consolidated $67,009 $(3,703) $63,306 ============================== (1) Net of DAC offset $341
- more - Add Seven REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Net Income From Continuing Operations to Pre-tax Operating Income (Dollars in thousands, except per share data)
Six Months Ended June 30, 2004 Pre-tax Realized Change in Pre-tax net investment value of operating income (gains)/ embedded income (loss) losses, net derivative (loss) ------- ----------- ---------- --------- U.S. Operations: Traditional $127,133 $(11,220) $ -- $115,913 Asset Intensive 12,996 301 (1) (1,501) 11,796 Financial Reinsurance 5,928 -- -- 5,928 ------------------------------------------ Total U.S. 146,057 (10,919) (1,501) 133,637 Canada Operations 37,131 (8,178) -- 28,953 Asia Pacific Operations 11,491 (198) -- 11,293 Europe & South Africa 18,089 (4,302) -- 13,787 ------------------------------------------ Other Intl Operations 29,580 (4,500) -- 25,080 Corporate & Other (12,560) (7,886) -- (20,446) ------------------------------------------ Consolidated $200,208 $(31,483) $(1,501) $167,224 ========================================== (1) Net of DAC offset $(376) Six Months Ended June 30, 2003 Pre-tax Realized Pre-tax net investment operating income (gains)/ income (loss) losses, net (loss) ------- ----------- --------- U.S. Operations: Traditional $ 85,845 $ 5,958 $ 91,803 Asset Intensive 6,862 1,472 (1) 8,334 Financial Reinsurance 5,692 -- 5,692 ------------------------------- Total U.S. 98,399 7,430 105,829 Canada Operations 24,056 (3,562) 20,494 Asia Pacific Operations 5,895 518 6,413 Europe & South Africa 6,311 (848) 5,463 ------------------------------- Other Intl Operations 12,206 (330) 11,876 Corporate & Other (17,799) 2,005 (15,794) ------------------------------ Consolidated $116,862 $5,543 $122,405 =============================== (1) Net of DAC offset $(241)
- more - Add Eight REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollars in thousands)
Three Months Ended Six Months Ended -------------------------------------------- (Unaudited) June 30, June 30, ------------------------------------------------------------------------ 2004 2003 2004 2003 ---- ---- ---- ---- Revenues: Net premiums $797,308 $582,561 $1,611,182 $1,127,776 Investment income, net of related expenses 134,185 115,936 267,745 223,081 Realized investment gains/(losses), net 12,691 4,044 31,107 (5,784) Change in value of embedded derivatives, net of DAC offset (1) 4,179 -- 1,501 -- Other revenues 14,759 11,834 26,609 22,851 ------------------ ---------------------- Total revenues 963,122 714,375 1,938,144 1,367,924 Benefits and expenses: Claims and other policy benefits 634,802 452,632 1,281,856 876,237 Interest credited 44,332 43,867 91,350 84,663 Policy acquisition costs and other insurance expenses 134,157 114,988 277,225 219,569 Other operating expenses 34,896 26,837 68,425 52,592 Interest expense 9,542 9,042 19,080 18,001 ------------------ ---------------------- Total benefits and expenses 857,729 647,366 1,737,936 1,251,062 ----------------- ----------------------- Income from continuing operations before income taxes 105,393 67,009 200,208 116,862 Provision for income taxes 37,003 23,423 68,824 40,116 ---------------- ---------------------- Income from continuing operations 68,390 43,586 131,384 76,746 Discontinued operations: Loss from discontinued accident and health operations, net of income taxes (3,053) (1,027) (3,947) (1,445) Cumulative effect of change in accounting principle -- -- (361) -- ------------------ ------------------- Net income $ 65,337 $ 42,559 $ 127,076 $ 75,301 ================== ====================== (1) Net of DAC offset of ($13,292) and ($17,493) for the three and six months ended June 30, 2004, respectively.
- more - Add Nine REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (Dollars in thousands, except per share data)
Three Months Ended Six Months Ended ---------------------------------------- (Unaudited) June 30, June 30, -------------------------------------------------------------------------- 2004 2003 2004 2003 ---- ---- ---- ---- Earnings per share from continuing operations: Basic earnings per share $ 1.10 $ 0.88 $ 2.11 $ 1.55 Diluted earnings per share $ 1.09 $ 0.87 $ 2.09 $ 1.54 Diluted earnings before realized investment gains/(losses), change in value of embedded derivatives, and related deferred acquisition costs $ 0.91 $ 0.82 $ 1.74 $ 1.61 Earnings per share from net income: Basic earnings per share $ 1.05 $ 0.86 $ 2.04 $ 1.52 Diluted earnings per share $ 1.04 $ 0.85 $ 2.03 $ 1.51 Weighted average number of common and common equivalent shares outstanding (in thousands) 62,755 49,963 62,723 49,834
- more - Add Ten REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Business Summary
At or For the Six Months Ended (Unaudited) June 30, -------------------------------------------------------------------- 2004 2003 ---- ---- Gross life reinsurance in force (in billions) North American business $1,047.3 $ 658.5 International business 309.4 182.8 Gross life reinsurance written (in billions) North American business 103.2 70.9 International business 55.3 31.1 Consolidated cash and invested assets (in millions) 9,502.9 7,774.7 Invested asset book yield - trailing three months excluding funds withheld 5.79% 6.67% Investment portfolio mix Cash and short-term investments 1.42% 2.30% Fixed maturity securities 49.11% 50.69% Mortgage loans 5.70% 4.63% Policy loans 9.48% 10.84% Funds withheld at interest 31.82% 30.02% Other invested assets 2.47% 1.52% Book value per share outstanding $ 31.38 $ 28.93 Book value per share outstanding, before impact of FAS 115* 30.17 24.74 Treasury stock 814,122 1,276,269 * Book value per share outstanding, before impact of FAS 115, is a non-GAAP financial measure that management believes is important in evaluating the balance sheet ignoring the effect of mark-to-market adjustments that primarily relate to changes in interest rates and credit spreads on investment securities since they were acquired.
- more - Add Eleven REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. OPERATIONS (Dollars in thousands)
Three Months Ended June 30, 2004 Asset- Financial Total Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ----- Revenues: Net premiums $ 530,129 $ 1,190 $ -- $531,319 Investment income, net of related expenses 53,974 47,495 72 101,541 Realized investment gains/(losses), net 3,662 (821) -- 2,841 Change in value of embedded derivatives -- 4,179 -- 4,179 Other revenues 931 1,907 6,958 9,796 --------- ------ ------- -------- Total revenues 588,696 53,950 7,030 649,676 Benefits and expenses: Claims and other policy benefits 429,423 3,246 -- 432,669 Interest credited 12,117 31,704 -- 43,821 Policy acquisition costs and other insurance expenses 72,714 8,484 2,280 83,478 Other operating expenses 11,341 1,028 1,529 13,898 --------- ------ ------ -------- Total benefits and expenses 525,595 44,462 3,809 573,866 Income before income taxes $ 63,101 $ 9,488 $3,221 $ 75,810 ========= ======= ====== ======== Three Months Ended June 30, 2003 Asset- Financial Total Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ----- Revenues: Net premiums $378,382 $ 1,006 $ -- $ 379,388 Investment income, net of related expenses 45,175 42,204 -- 87,379 Realized investment gains/(losses),net (714) 1,148 -- 434 Other revenues 884 1,766 6,655 9,305 -------- -------- ------ --------- Total revenues 423,727 46,124 6,655 476,506 Benefits and expenses: Claims and other policy benefits 297,525 1,771 -- 299,296 Interest credited 14,931 28,580 -- 43,511 Policy acquisition costs and other insurance expenses 56,714 8,003 2,721 67,438 Other operating expenses 8,484 826 1,190 10,500 -------- -------- ------- --------- Total benefits and expenses 377,654 39,180 3,911 420,745 Income before income taxes $ 46,073 $ 6,944 $ 2,744 $ 55,761 ======== ======== ======= =========
- more - Add Twelve REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. OPERATIONS (Dollars in thousands)
Six Months Ended June 30, 2004 Asset- Financial Total Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ----- Revenues: Net premiums $1,061,340 $ 2,372 $ -- $1,063,712 Investment income, net of related expenses 108,027 92,962 115 201,104 Realized investment gain/(losses),net 11,220 (677) -- 10,543 Change in value of embedded derivatives -- 1,501 -- 1,501 Other revenues 2,265 3,577 13,338 19,180 ---------- ------- ------- ---------- Total revenues 1,182,852 99,735 13,453 1,296,040 Benefits and expenses: Claims and other policy benefits 860,314 2,225 -- 862,539 Interest credited 24,195 66,198 -- 90,393 Policy acquisition costs and other insurance expenses 148,145 16,129 4,574 168,848 Other operating expenses 23,065 2,187 2,951 28,203 ---------- ------- ------- ---------- Total benefits and expenses 1,055,719 86,739 7,525 1,149,983 Income before income taxes $ 127,133 $12,996 $ 5,928 $ 146,057 ========== ======= ======= ========== Six Months Ended June 30, 2003 Asset- Financial Total Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ----- Revenues: Net premiums $ 747,189 $ 2,104 $ -- $ 749,293 Investment income, net of related expenses 87,876 78,538 -- 166,414 Realized investment losses, net (5,958) (1,713) -- (7,671) Other revenues 2,697 3,013 13,566 19,276 ---------- ------- ------- ---------- Total revenues 831,804 81,942 13,566 927,312 Benefits and expenses: Claims and other policy benefits 591,251 3,390 -- 594,641 Interest credited 30,250 53,721 -- 83,971 Policy acquisition costs and other insurance expenses 107,519 16,031 5,241 128,791 Other operating expenses 16,939 1,938 2,633 21,510 ---------- ------- ------- ---------- Total benefits and expenses 745,959 75,080 7,874 828,913 Income before income taxes $ 85,845 $ 6,862 $ 5,692 $ 98,399 ========== ======= ======= ==========
- more - Add Thirteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES CANADIAN OPERATIONS (Dollars in thousands)
Three Months Ended June 30, 2004 2003 ---- ---- Revenues: Net premiums $ 61,830 $ 52,017 Investment income, net of related expenses 23,437 21,509 Realized investment gains, net 6,869 3,825 Other revenues 31 (176) -------- -------- Total revenues 92,167 77,175 Benefits and expenses: Claims and other policy benefits 59,499 56,149 Interest credited 418 264 Policy acquisition costs and other insurance expenses 8,278 4,864 Other operating expenses 2,761 2,469 -------- -------- Total benefits and expenses 70,956 63,746 Income before income taxes $ 21,211 $ 13,429 ======== ======== Six Months Ended June 30, 2004 2003 ---- ---- Revenues: Net premiums $121,978 $100,603 Investment income, net of related expenses 47,417 41,275 Realized investment gains, net 8,178 3,562 Other revenues 69 (241) -------- -------- Total revenues 177,642 145,199 Benefits and expenses: Claims and other policy benefits 118,865 105,279 Interest credited 795 553 Policy acquisition costs and other insurance expenses 15,361 10,457 Other operating expenses 5,490 4,854 -------- -------- Total benefits and expenses 140,511 121,143 Income before income taxes $ 37,131 $ 24,056 ======== ========
- more - Add Fourteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Europe and South Africa (Dollars in thousands)
Three Months Ended June 30, 2004 2003 ---- ---- Revenues: Net premiums $118,887 $ 83,450 Investment income, net of related expenses 863 639 Realized investment gains, net 1,143 23 Other revenues 444 299 -------- -------- Total revenues 121,337 84,411 Benefits and expenses: Claims and other policy benefits 73,809 47,450 Policy acquisition costs and other insurance expenses 29,842 28,689 Other operating expenses 5,524 4,106 Interest expense 333 264 -------- -------- Total benefits and expenses 109,508 80,509 Income before income taxes $ 11,829 $ 3,902 ======== ======== Six Months Ended June 30, 2004 2003 ---- ---- Revenues: Net premiums $236,090 $167,327 Investment income, net of related expenses 2,407 1,479 Realized investment gains, net 4,302 848 Other revenues 882 123 --------- -------- Total revenues 243,681 169,777 Benefits and expenses: Claims and other policy benefits 155,806 101,233 Policy acquisition costs and other insurance expenses 58,873 54,223 Other operating expenses 10,206 7,546 Interest expense 707 464 -------- -------- Total benefits and expenses 225,592 163,466 Income before income taxes $ 18,089 $ 6,311 ======== ========
- more - Add Fifteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Asia Pacific (Dollars in thousands)
Three Months Ended June 30, 2004 2003 ---- ---- Revenues: Net premiums $ 84,178 $ 66,165 Investment income, net of related expenses 3,029 2,421 Realized investment losses, net (149) (131) Other revenues 2,950 707 --------- -------- Total revenues 90,008 69,162 Benefits and expenses: Claims and other policy benefits 67,380 47,190 Policy acquisition costs and other insurance expenses 11,878 13,006 Other operating expenses 5,673 4,189 Interest expense 383 250 -------- -------- Total benefits and expenses 85,314 64,635 Income before income taxes $ 4,694 $ 4,527 ======== ======== Six Months Ended June 30, 2004 2003 ---- ---- Revenues: Net premiums $187,717 $108,575 Investment income, net of related expenses 6,764 5,148 Realized investment gains/(losses), net 198 (518) Other revenues 3,585 907 --------- -------- Total revenues 198,264 114,112 Benefits and expenses: Claims and other policy benefits 142,225 74,454 Policy acquisition costs and other insurance expenses 33,408 24,528 Other operating expenses 10,415 8,716 Interest expense 725 519 -------- --------- Total benefits and expenses 186,773 108,217 Income before income taxes $ 11,491 $ 5,895 ======== ========
- more - Add Sixteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES CORPORATE AND OTHER (Dollars in thousands)
Three Months Ended June 30, 2004 2003 ---- ---- Revenues: Net premiums $ 1,094 $ 1,541 Investment income, net of related expenses 5,315 3,988 Realized investment gains/(losses), net 1,987 (107) Other revenues 1,538 1,699 -------- -------- Total revenues 9,934 7,121 Benefits and expenses: Claims and other policy benefits 1,445 2,547 Interest credited 93 92 Policy acquisition costs and other insurance expenses 681 991 Other operating expenses 7,040 5,573 Interest expense 8,826 8,528 -------- -------- Total benefits and expenses 18,085 17,731 Loss before income taxes $ (8,151) $(10,610) ========= ======== Six Months Ended June 30, 2004 2003 ---- ---- Revenues: Net premiums $ 1,685 $ 1,978 Investment income, net of related expenses 10,053 8,765 Realized investment gains/(losses), net 7,886 (2,005) Other revenues 2,893 2,786 -------- -------- Total revenues 22,517 11,524 Benefits and expenses: Claims and other policy benefits 2,421 630 Interest credited 162 139 Policy acquisition costs and other insurance expenses 735 1,570 Other operating expenses 14,111 9,966 Interest expense 17,648 17,018 -------- -------- Total benefits and expenses 35,077 29,323 Loss before income taxes $(12,560) $(17,799) ========= ========
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