Reinsurance Group Of America Reports Increases In Fourth-Quarter Revenues And Earnings
ST. LOUIS--(BUSINESS WIRE)--Jan. 29, 2004--Reinsurance Group of America, Incorporated (NYSE: RGA), one of North America's leading providers of life reinsurance, reported net income for the fourth quarter of $56.1 million, or $0.99 per diluted share, compared with net income of $33.4 million, or $0.67 per diluted share in the prior-year quarter, a 48 percent increase on a per-share basis. Net income in the current quarter includes an after-tax gain of approximately $9.0 million related to the newly adopted accounting standard on embedded derivatives in certain reinsurance contracts. Fourth-quarter net premiums increased 60 percent, to $942.4 million from $590.6 million in 2002. Net premiums in the quarter include $246.1 million associated with the recently completed transaction with Allianz Life.
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 because that measure excludes the effect of net realized capital gains and losses, 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 our underlying businesses. Additionally, operating income excludes any net gain or loss from discontinued operations, which management believes is 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. Reconciliations of GAAP net income to operating income are provided in the tables immediately following the text of this press release.
Operating income for the quarter increased 12 percent on a per- share basis and totaled $48.2 million, or $0.85 per diluted share compared to $37.8 million, or $0.76 per diluted share in the year-ago quarter. "Our results reflect strong premium and earnings growth across all operating segments of our business," said A. Greig Woodring, president and chief executive officer.
"Pre-tax net income in the U.S. for the quarter totaled $72.4 million compared with $43.5 million in the prior-year quarter. Pre-tax operating income for the quarter totaled $58.0 million compared with $48.5 million in the prior-year quarter. Pre-tax operating income for the U.S. Traditional operations in the current quarter includes approximately $10.5 million from the recently acquired Allianz business. Mortality experience was within our range of expectations. Strong year-over-year results in the traditional operations were offset somewhat by a decrease in income from our asset-intensive operations, primarily due to credit losses within the funds withheld portfolios and several large transactions recorded in the prior-period quarter. Premiums in the U.S. increased $277.2 million, or 68 percent over the prior-year quarter. Approximately $246.1 million of that increase is from the Allianz business. For the year premiums increased 28 percent.
"Canada reported a good quarter, with pre-tax net income of $16.0 million compared with $11.2 million in the prior-year quarter. Pre-tax operating income totaled $14.7 million, up 30 percent from $11.3 million in the prior-year quarter. Mortality experience was consistent with expectations. Net premiums increased 25 percent for the quarter and 18 percent for the year. Results for the quarter and year benefited from an increase in the strength of the Canadian dollar. On an original currency basis, premiums for the quarter and year increased approximately 5 percent and pre-tax operating income increased approximately 11 percent and 7 percent, respectively.
"Other International operations, which exclude Canada, continued their strong growth, with net premiums increasing 46 percent to $197.5 million in the fourth quarter. On an original currency basis, premiums increased 28 percent. Pre-tax net income totaled $17.7 million compared with $1.0 million in the prior-year quarter. Pre-tax operating income for the quarter totaled $15.7 million, a significant increase over the breakeven result in the prior-year period. Approximately $1.5 million of that total was the result of favorable currency fluctuations. For the year, pre-tax operating income totaled $36.3 million compared to $9.1 million in the prior year. Approximately $3.3 million of the current-year amount was due to favorable currency fluctuations. Segment-wide mortality experience for the quarter was consistent with expectations. We continue to see good profit expansion from these operations as reinsurance in force increases; however, results may continue to be more volatile than our more established operations in North America due to the smaller relative size of this segment's base of business."
For 2003, net income totaled $173.1 million, or $3.36 per diluted share, compared with $122.8 million, or $2.47 per diluted share, in 2002. Operating income increased to $166.2 million, or $3.22 per diluted share, from $139.2 million, or $2.80 per diluted share, the year before, a 15 percent increase on a per share basis. Consolidated premiums were up 33 percent, to $2,643.2 million from $1,980.7 million.
Woodring continued, "We completed a successful common equity offering during the quarter, issuing 12,075,000 new shares with net proceeds to the company totaling $427 million. The proceeds will be used to support our growth, both domestically and abroad, although we do not expect to open any new international offices in 2004. Additionally, we closed our transaction with Allianz as planned, and the transition of the treaty information to our systems is on schedule. These significant events capped off a very successful 2003 for RGA. As we look to 2004, we expect operating earnings per share to be within a range of $3.40 to $3.65, reflecting premium growth of between 15 to 18 percent and stable investment yields."
The company announced that its board of directors declared a regular quarterly dividend of $0.06 per share, payable February 27 to shareholders of record as of February 6.
A conference call to discuss the company's fourth-quarter results will begin at 9 a.m. Eastern Time on Friday, January 30. Interested parties may access the call by dialing 800-262-1292 (domestic) or 719- 457-2680 (international). The access code is 676286. 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 February 6 at 888-203-1112 (domestic) or 719-457-0820, access code 676286.
Reinsurance Group of America, Incorporated, through its subsidiaries, RGA Reinsurance Company and RGA Life Reinsurance Company of Canada, is among the largest providers of life reinsurance in North America. In addition to its North American 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 $1.3 trillion of life reinsurance in force, and assets of $12.1 billion. MetLife, Inc. is the beneficial owner of approximately 52 percent of RGA's outstanding shares.
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.
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.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Income From Continuing Operations
to Operating Income
(Dollars in thousands, except per share data)
Three Months Ended
December 31,
2003 2002
Income from continuing operations $59,349 $35,780
After-tax effect of:
Realized investment (gains)/losses, net (2,930) 1,977
Change in value of embedded derivatives (8,405)(1) --
DAC offset for realized investment
gains/(losses), net 152 40
Operating income $48,166 $37,797
(1) Net of DAC offset of $19,932, after tax
Twelve Months Ended
December 31,
2003 2002
Income from continuing operations $178,319 $128,463
After-tax effect of:
Realized investment (gains)/losses, net (3,786) 10,496
Change in value of embedded derivatives (8,405)(1) --
Goodwill write-off -- 751
DAC offset for realized investment
gains/(losses), net 65 (490)
Operating income $166,193 $139,220
(1) Net of DAC offset of $19,932, after tax
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Income From Continuing Operations Before Income
Taxes to Pre-tax Operating Income
(Dollars in thousands, except per share data)
Three Months Ended December 31, 2003
Income Realized Change in
before investment value of Pre-tax
income (gains)/ embedded operating
taxes losses, net derivative income
U.S. Operations:
Traditional $54,324 $(1,302) $ -- $ 53,022
Asset Intensive 14,631 (173)(1) (12,931) 1,527
Financial Reinsurance 3,431 -- -- 3,431
Total U.S. Operations 72,386 (1,475) (12,931) 57,980
Canada Operations 15,979 (1,265) -- 14,714
Other International
Operations:
Asia Pacific Operations 6,838 139 -- 6,977
Europe & South Africa 10,863 (2,111) -- 8,752
Other Intl Operations 17,701 (1,972) -- 15,729
Corporate & Other (14,325) 361 -- (13,964)
Consolidated $91,741 $(4,351) $(12,931) $74,459
(1)Net of DAC offset of $233
Three Months Ended December 31, 2002
Income Realized
before investment Pre-tax
income (gains)/ operating
taxes losses, net income
U.S. Operations:
Traditional $32,253 $5,043 $ 37,296
Asset Intensive 7,434 (58)(1) 7,376
Financial Reinsurance 3,858 -- 3,858
Total U.S. Operations 43,545 4,985 48,530
Canada Operations 11,203 141 11,344
Other International
Operations:
Asia Pacific Operations 836 143 979
Europe & South Africa 161 (1,182) (1,021)
Other Intl Operations 997 (1,039) (42)
Corporate & Other (6,053) (325) (6,378)
Consolidated $49,692 $ 3,762 $53,454
(1)Net of DAC offset of $62
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Income From Continuing Operations Before Income
Taxes to Pre-tax Operating Income
(Dollars in thousands, except per share data)
Twelve Months Ended December 31, 2003
Income Realized Change in
before investment value of Pre-tax
income (gains)/ embedded operating
taxes losses, net derivative income
U.S. operations:
Traditional $178,314 $ 5,715 $ -- $184,029
Asset Intensive 25,395 1,774 (1) (12,931) 14,238
Financial Reinsurance 12,379 -- -- 12,379
Total U.S. Operations 216,088 7,489 (12,931) 210,646
Canada Operations 59,564 (13,423) -- 46,141
Other International
Operations:
Asia Pacific 19,262 761 -- 20,023
Europe & South Africa 20,272 (3,999) -- 16,273
Other Intl Operations 39,534 (3,238) -- 36,296
Corporate & Other (43,576) 3,912 -- (39,664)
Consolidated $271,610 $(5,260) $(12,931) $253,419
(1)Net of DAC offset of $100
Twelve Months Ended December 31, 2002
Income Realized
before investment Pre-tax
income (gains)/ Goodwill operating
taxes losses, net write-off income
U.S. Operations:
Traditional $152,250 $ 6,194 $ -- $158,444
Asset Intensive 14,265 3,382 (1) -- 17,647
Financial Reinsurance 9,286 -- -- 9,286
Total U.S. Operations 175,801 9,576 -- 185,377
Canada Operations 38,631 163 -- 38,794
Other International
Operations:
Asia Pacific Operations 6,316 268 -- 6,584
Europe & South Africa 3,409 (894) -- 2,515
Other Intl Operations 9,725 (626) -- 9,099
Corporate & Other (30,179) 4,785 751 (24,643)
Consolidated $193,978 $13,898 $ 751 $208,627
(1)Net of DAC offset of ($753)
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
(Unaudited) December 31, December 31,
2003 2002 2003 2002
Revenues:
Net premiums $942,417 $590,553 $2,643,163 $1,980,666
Investment income, net
of related expenses 120,345 113,733 465,579 374,512
Realized investment
gains/(losses), net 4,584 (3,700) 5,360 (14,651)
Change in value of
embedded derivatives 12,931 -- 12,931 --
Other revenues 13,630 13,702 47,300 41,436
Total revenues 1,093,907 714,288 3,174,333 2,381,963
Benefits and expenses:
Claims and other
policy benefits 774,350 442,667 2,108,431 1,539,464
Interest credited 48,788 46,938 179,702 126,715
Policy acquisition
costs and other
insurance expenses 127,262 138,898 458,165 391,504
Other operating expenses 42,361 27,052 119,636 94,786
Interest expense 9,405 9,041 36,789 35,516
Total benefits
and expenses 1,002,166 664,596 2,902,723 2,187,985
Income from continuing
operations before
income taxes 91,741 49,692 271,610 193,978
Provision for
income taxes 32,392 13,912 93,291 65,515
Income from continuing
operations 59,349 35,780 178,319 128,463
Discontinued operations:
Loss from discontinued
accident and health
operations, net of
income taxes (3,805) (2,393) (5,723) (5,657)
Cumulative effect
of change in
accounting principle 545 -- 545 --
Net income $ 56,089 $ 33,387 $ 173,141 $ 122,806
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
(Unaudited) December 31, December 31,
2003 2002 2003 2002
Earnings per share from
continuing operations:
Basic earnings per share $1.06 $0.72 $3.47 $2.60
Diluted earnings per share $1.05 $0.72 $3.46 $2.59
Diluted earnings before
realized investment gains/
(losses), change in value
of embedded derivatives,
related deferred acquisition
costs, and goodwill
write-off in 2002 $0.85 $0.76 $3.22 $2.80
Earnings per share from net
income:
Basic earnings per share $1.00 $0.68 $3.37 $2.49
Diluted earnings per share $0.99 $0.67 $3.36 $2.47
Weighted average number of
common and common
equivalent shares
outstanding (in thousands) 56,516 49,626 51,598 49,648
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Consolidated Business Summary
At or For the
Twelve Months Ended
(Unaudited) December 31,
2003 2002
Gross life reinsurance in force (in billions)
North American business $ 976.1 $ 604.4
International business 276.1 154.5
Gross life reinsurance written (in billions)
North American business 434.3 158.2
International business 110.1 71.8
Consolidated cash and
invested assets (in millions) 8,968.0 6,738.3
Invested Asset book yield - trailing
three months excluding funds withheld 6.06% 6.51%
Investment portfolio mix
Cash and short-term investments 1.27% 1.37%
Fixed maturity securities 51.02% 51.98%
Mortgage loans 5.34% 3.38%
Policy loans 10.07% 12.48%
Funds withheld at interest 30.30% 29.31%
Other invested assets 2.00% 1.48%
Book value per share outstanding $ 31.33 $ 24.72
Book value per share outstanding, before
impact of FAS 115 28.59 22.64
Treasury stock 967,927 1,596,629
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
U.S. OPERATIONS
(Dollars in thousands)
Three Months Ended December 31, 2003
Non-traditional
Asset- Financial Total
Traditional Intensive Reinsurance U.S.
Revenues:
Net premiums $682,118 $ 1,118 $ -- $683,236
Investment income, net
of related expenses 46,651 41,204 8 87,863
Realized investment
gains, net 1,302 406 -- 1,708
Change in value of
embedded derivatives -- 12,931 -- 12,931
Other revenues 734 1,489 7,123 9,346
Total revenues 730,805 57,148 7,131 795,084
Benefits and expenses:
Claims and other
policy benefits 568,981 (1,190) -- 567,791
Interest credited 13,148 35,197 -- 48,345
Policy acquisition
costs and other
insurance expenses 77,620 7,530 2,453 87,603
Other operating expenses 16,732 980 1,247 18,959
Total benefits and
expenses 676,481 42,517 3,700 722,698
Income before
income taxes $ 54,324 $14,631 $ 3,431 $ 72,386
Three Months Ended December 31, 2002
Non-traditional
Asset- Financial Total
Traditional Intensive Reinsurance U.S.
Revenues:
Net premiums $405,010 $ 990 $ -- $406,000
Investment income, net
of related expenses 41,830 46,076 36 87,942
Realized investment
gains/(losses), net (5,043) 120 -- (4,923)
Other revenues 1,256 1,593 8,791 11,640
Total revenues 443,053 48,779 8,827 500,659
Benefits and expenses:
Claims and other
policy benefits 312,242 362 -- 312,604
Interest credited 15,158 30,051 -- 45,209
Policy acquisition
costs and other
insurance expenses 75,040 10,434 2,679 88,153
Other operating expenses 8,360 498 2,290 11,148
Total benefits and
expenses 410,800 41,345 4,969 457,114
Income before
income taxes $ 32,253 $ 7,434 $ 3,858 $ 43,545
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
U.S. OPERATIONS
(Dollars in thousands)
Twelve Months Ended December 31, 2003
Non-traditional
Asset- Financial Total
Traditional Intensive Reinsurance U.S.
Revenues:
Net premiums $1,797,478 $ 4,315 $ -- $1,801,793
Investment income, net
of related expenses 181,897 164,127 105 346,129
Realized investment
losses, net (5,715) (1,674) -- (7,389)
Change in value of
embedded derivatives -- 12,931 -- 12,931
Other revenues 3,920 6,524 27,302 37,746
Total revenues 1,977,580 186,223 27,407 2,191,210
Benefits and expenses:
Claims and other
policy benefits 1,457,886 2,976 -- 1,460,862
Interest credited 58,317 119,621 -- 177,938
Policy acquisition
costs and other
insurance expenses 241,877 34,422 9,900 286,199
Other operating expenses 41,186 3,809 5,128 50,123
Total benefits and
expenses 1,799,266 160,828 15,028 1,975,122
Income before
income taxes $ 178,314 $25,395 $12,379 $ 216,088
Twelve Months Ended December 31, 2002
Non-traditional
Asset- Financial Total
Traditional Intensive Reinsurance U.S.
Revenues:
Net premiums $1,407,751 $ 3,786 $ -- $1,411,537
Investment income, net
of related expenses 161,869 110,019 191 272,079
Realized investment
losses, net (6,194) (4,135) -- (10,329)
Other revenues 2,802 7,277 26,586 36,665
Total revenues 1,566,228 116,947 26,777 1,709,952
Benefits and expenses:
Claims and other
policy benefits 1,097,998 17,376 -- 1,115,374
Interest credited 56,675 65,504 -- 122,179
Policy acquisition
costs and other
insurance expenses 228,800 18,560 8,196 255,556
Other operating expenses 30,505 1,242 9,295 41,042
Total benefits and
expenses 1,413,978 102,682 17,491 1,534,151
Income before
income taxes $ 152,250 $ 14,265 $ 9,286 $ 175,801
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
CANADIAN OPERATIONS
(Dollars in thousands)
Three Months Ended
December 31,
2003 2002
Revenues:
Net premiums $ 60,991 $ 48,653
Investment income, net of related expenses 23,693 18,385
Realized investment gains/(losses),net 1,265 (141)
Other revenues (21) 96
Total revenues 85,928 66,993
Benefits and expenses:
Claims and other policy benefits 61,964 49,294
Interest credited 399 337
Policy acquisition costs and other
insurance expenses 4,579 3,994
Other operating expenses 3,007 2,165
Total benefits and expenses 69,949 55,790
Income before income taxes $ 15,979 $ 11,203
Twelve Months Ended
December 31,
2003 2002
Revenues:
Net premiums $214,738 $181,224
Investment income, net of related expenses 87,212 70,518
Realized investment gains/(losses), net 13,423 (163)
Other revenues (212) 136
Total revenues 315,161 251,715
Benefits and expenses:
Claims and other policy benefits 223,375 186,398
Interest credited 1,488 1,070
Policy acquisition costs and other
insurance expenses 20,293 16,136
Other operating expenses 10,441 9,480
Total benefits and expenses 255,597 213,084
Income before income taxes $ 59,564 $ 38,631
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
OTHER INTERNATIONAL
(Dollars in thousands)
Three Months Ended December 31, 2003
Europe Total
Asia & South Inter-
Pacific Africa national
Revenues:
Net premiums $ 93,174 $104,374 $197,548
Investment income,
net of related expenses 2,494 1,061 3,555
Realized investment gains
/ (losses), net (139) 2,111 1,972
Other revenues 295 1,049 1,344
Total revenues 95,824 108,595 204,419
Benefits and expenses:
Claims and other policy
benefits 69,803 69,227 139,030
Policy acquisition costs and
other insurance expenses 14,112 23,546 37,658
Other operating expenses 4,817 4,638 9,455
Interest expense 254 321 575
Total benefits and
expenses 88,986 97,732 186,718
Income before income taxes $ 6,838 $ 10,863 $ 17,701
Three Months Ended December 31, 2002
Europe Total
Asia & South Inter-
Pacific Africa national
Revenues:
Net premiums $62,366 $72,519 $134,885
Investment income,
net of related expenses 2,183 418 2,601
Realized investment gains/
(losses),net (143) 1,182 1,039
Other revenues 657 1,288 1,945
Total revenues 65,063 75,407 140,470
Benefits and expenses:
Claims and other policy
benefits 46,957 35,692 82,649
Policy acquisition costs and
other insurance expenses 12,400 34,207 46,607
Other operating expenses 4,641 5,166 9,807
Interest expense 229 181 410
Total benefits and
expenses 64,227 75,246 139,473
Income before income taxes $ 836 $ 161 $ 997
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
OTHER INTERNATIONAL
(Dollars in thousands)
Twelve Months Ended December 31, 2003
Europe Total
Asia & South Inter-
Pacific Africa national
Revenues:
Net premiums $259,010 $364,203 $623,213
Investment income,
net of related expenses 10,692 3,869 14,561
Realized investment gains
/ (losses), net (761) 3,999 3,238
Other revenues 1,191 1,067 2,258
Total revenues 270,132 373,138 643,270
Benefits and expenses:
Claims and other policy
benefits 185,358 230,895 416,253
Policy acquisition costs and
other insurance expenses 47,513 105,062 152,575
Other operating expenses 16,903 15,866 32,769
Interest expense 1,096 1,043 2,139
Total benefits and
expenses 250,870 352,866 603,736
Income before income taxes $19,262 $ 20,272 $ 39,534
Twelve Months Ended December 31, 2002
Europe Total
Asia & South Inter-
Pacific Africa national
Revenues:
Net premiums $160,197 $226,846 $387,043
Investment income,
net of related expenses 7,059 1,009 8,068
Realized investment gains/
(losses),net (268) 894 626
Other revenues 2,363 2,064 4,427
Total revenues 169,351 230,813 400,164
Benefits and expenses:
Claims and other policy
benefits 110,806 130,975 241,781
Policy acquisition costs and
other insurance expenses 36,660 82,700 119,360
Other operating expenses 14,727 13,049 27,776
Interest expense 842 680 1,522
Total benefits and
expenses 163,035 227,404 390,439
Income before income taxes $ 6,316 $ 3,409 $ 9,725
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
CORPORATE AND OTHER
(Dollars in thousands)
Three Months Ended
December 31,
2003 2002
Revenues:
Net premiums $ 642 $ 1,015
Investment income, net of related expenses 5,234 4,805
Realized investment gains/(losses), net (361) 325
Other revenues 2,961 21
Total revenues 8,476 6,166
Benefits and expenses:
Claims and other policy benefits 5,565 (1,880)
Interest credited 44 1,392
Policy acquisition costs and other
insurance expenses (2,578) 144
Other operating expenses 10,940 3,932
Interest expense 8,830 8,631
Total benefits and expenses 22,801 12,219
Loss before income taxes $(14,325) $(6,053)
Twelve Months Ended
December 31,
2003 2002
Revenues:
Net premiums $ 3,419 $ 862
Investment income, net of related expenses 17,677 23,847
Realized investment losses, net (3,912) (4,785)
Other revenues 7,508 208
Total revenues 24,692 20,132
Benefits and expenses:
Claims and other policy benefits 7,941 (4,089)
Interest credited 276 3,466
Policy acquisition costs and other
insurance expenses (902) 452
Other operating expenses 26,303 16,488
Interest expense 34,650 33,994
Total benefits and expenses 68,268 50,311
Loss before income taxes $(43,576) $(30,179)
CONTACT: Reinsurance Group of America Incorporated, St. Louis
Jack B. Lay, 636-736-7439
SOURCE: Reinsurance Group of America Incorporated