Reinsurance Group Of America Reports Increases In Second-Quarter Premiums And Earnings
ST. LOUIS--(BUSINESS WIRE)--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.
"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."
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.
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.
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.
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
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)
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.
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
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(1) 30.17 24.74
Treasury stock 814,122 1,276,269
(1) 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.
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
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
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
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
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
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)
CONTACT: Reinsurance Group of America, Incorporated
Jack B. Lay, 636-736-7439
SOURCE: Reinsurance Group of America, Incorporated