Reinsurance Group Of America Reports Third-Quarter Results
ST. LOUIS--(BUSINESS WIRE)--Oct. 24, 2005--Reinsurance Group of America, Incorporated (NYSE:RGA), a leading global provider of life reinsurance, reported net income for the third quarter of $67.6 million, or $1.06 per diluted share, compared to net income of $39.4 million, or $0.63 per diluted share, in the prior-year quarter. 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 increased 20 percent to $71.8 million, or $1.13 per diluted share, from $59.8 million, or $0.95 per diluted share, in the year-ago quarter. Third-quarter net premiums rose 19 percent to $973.5 million from $819.5 million a year ago. Net investment income totaled $166.5 million versus $144.6 million the year before.
A. Greig Woodring, president and chief executive officer, commented, "We are pleased with the results for the quarter. The U.S. segment reported a strong quarter with pre-tax net income of $88.2 million compared with $72.0 million in the prior-year quarter, while pre-tax operating income increased to $88.3 million from $78.4 million. Net premiums in the U.S. segment rose 13 percent to $611.5 million from $539.8 million in the prior year. On a year-to-date basis, the net premium increase is 9 percent. Mortality experience was favorable, partially offsetting the unfavorable experience in the first half of the year. We have not yet received any claims from the recent Gulf Coast hurricanes and don't expect any significant claim activity. U.S. operations also include Asset Intensive and Financial Reinsurance businesses, each of which posted solid results.
"Our Canada operations posted double-digit gains fueled by strong top-line growth and continuing favorable mortality. Pre-tax net income increased to $22.1 million from $15.8 million a year ago while pre-tax operating income was up 33 percent to $21.1 million from $15.9 million. Net premiums increased $29.8 million, or 50 percent, for the quarter, and totaled $89.1 million. Approximately $12.0 million of that premium increase represents the effect of an inforce transaction that was executed this quarter on a retroactive basis. Approximately $7.2 million of the increase in net premiums and approximately $1.6 million of the increase in pre-tax operating income were the result of a favorable currency exchange rate.
"Other International operations, which include Asia Pacific and Europe and South Africa, reported solid results in total. Asia Pacific reported pre-tax net income of $3.9 million compared with a pre-tax net loss of $1.4 million in the year-ago quarter. Pre-tax operating income totaled $3.9 million compared to the prior-year quarter net operating loss of $1.6 million. Mortality experience was slightly unfavorable on a segment-wide basis. Net premiums in Asia Pacific increased 31 percent to $135.3 million from $103.4 million in the year-earlier quarter. Stronger foreign currencies contributed approximately $8.0 million to the premium growth, but did not have a material impact on pre-tax operating income.
"Results in our Europe and South Africa segment rebounded from a poor second quarter. The segment reported pre-tax net income of $15.4 million compared to pre-tax net income of $9.6 million in the year before, which was also a particularly strong quarter. Pre-tax operating income benefited from favorable mortality and totaled $15.0 million compared with $9.2 million in the prior-year quarter. Net premium flow for the segment improved to $137.1 million from $116.9 million a year ago. Foreign currency fluctuations did not have a significant impact on the quarter's results."
For the first nine months of 2005, net income totaled $156.0 million, or $2.45 per diluted share, compared to $166.5 million, or $2.65 per diluted share, in the year-ago period. Operating income totaled $152.3 million, or $2.39 per diluted share, compared to $169.1 million, or $2.69 per diluted share in the prior-year period. Consolidated net premiums were up 15 percent, to $2,806.7 million from $2,430.6 million.
Woodring concluded, "During the quarter, we were named 'Life Reinsurance Company of the Year' for the second consecutive year by the UK trade magazine The Review - Worldwide Reinsurance. The award recognizes RGA as a company that shows consistent, strong financial performance, and offers superior service and security to clients. This award came on the heels of RGA being recognized as "Best Overall Life Reinsurer" in the recent 2005 Flaspohler Cedant Survey (Life - North America). In that survey, we were also given top honors for underwriting capabilities, timely service, financial value, strong client orientation, market knowledge/expertise, innovation, quality actuaries and leading technology. We are very proud of these two awards, as they not only reflect the quality of our associates, but also the quality of our client relationships."
The company also announced that its board of directors declared a regular quarterly dividend of $0.09 per share, payable November 28 to shareholders of record as of November 7.
A conference call to discuss the company's third-quarter results will begin at 9 a.m. Eastern Time on Tuesday, October 25. Interested parties may access the call by dialing 800-967-7140 (domestic) or 719- 457-2629 (international). The access code is 904246. 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 15 days following the conference call. A replay of the conference call will also be available via telephone through November 1 at 888-203-1112 (domestic) or 719-457- 0820, access code 904246.
Reinsurance Group of America, Incorporated, through its subsidiaries, 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, China, Hong Kong, India, Ireland, Japan, Mexico, South Africa, South Korea, Spain, Taiwan, and the United Kingdom. Worldwide, the company has approximately $1.7 trillion of life reinsurance in force, and assets of $15.4 billion. MetLife, Inc. is the beneficial owner of approximately 51 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) inadequate risk analysis and underwriting, (4) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in our current and planned markets, (5) the availability and cost of collateral necessary for regulatory reserves and capital, (6) market or economic conditions that adversely affect our ability to make timely sales of investment securities, (7) risks inherent in our risk management and investment strategy, including changes in investment portfolio yields due to interest rate or credit quality changes, (8) fluctuations in U.S. or foreign currency exchange rates, interest rates, or securities and real estate markets, (9) adverse litigation or arbitration results, (10) the adequacy of reserves, resources and accurate information relating to settlements, awards and terminated and discontinued lines of business, (11) the stability of and actions by governments and economies in the markets in which we operate, (12) competitive factors and competitors' responses to our initiatives, (13) the success of our clients, (14) successful execution of our entry into new markets, (15) successful development and introduction of new products and distribution opportunities, (16) our ability to successfully integrate and operate reinsurance business that we acquire, (17) regulatory action that may be taken by state Departments of Insurance with respect to us, MetLife, or its subsidiaries, (18) our dependence on third parties, including those insurance companies and reinsurers to which we cede some reinsurance, third-party investment managers and others, (19) the threat of natural disasters or terrorist attacks anywhere in the world where we or our clients do business, (20) changes in laws, regulations, and accounting standards applicable to us, our subsidiaries, or our business, (21) the effect of our status as a holding company and regulatory restrictions on our ability to pay principal of and interest on our debt obligations, and (22) 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. These forward-looking statements 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 investment related 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)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
GAAP net income-continuing
operations $73,519 $57,999 $165,943 $189,383
Investment related
(gains)/losses (2,014) (1,150) (16,740) (22,008)
Change in value of embedded
derivatives (2,298) 12,096 (4,017) (250)
DAC offset for embedded
derivatives and investment
related (gains)/losses, net 2,613 (9,145) 7,162 1,981
Operating income $71,820 $59,800 $152,348 $169,106
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Pre-tax Net Income From Continuing Operations
to Pre-tax Operating Income
(Dollars in thousands)
(Unaudited) Three Months Ended September 30, 2005
Pre-tax Investment Change in Pre-tax
net related value of operating
income (gains)/ embedded income
(loss) losses, net derivative (loss)
U.S. Operations:
Traditional $ 80,473 $ 68 $ -- $ 80,541
Asset Intensive 4,431 (239)(1) 322(2) 4,514
Financial Reinsurance 3,294 -- -- 3,294
Total U.S. 88,198 (171) 322 88,349
Canada Operations 22,069 (973) -- 21,096
Asia Pacific Operations 3,948 (66) -- 3,882
Europe & South Africa 15,376 (391) -- 14,985
Other Intl Operations 19,324 (457) -- 18,867
Corporate & Other (16,029) (837) -- (16,866)
Consolidated $113,562 $ (2,438) $ 322 $111,446
(1) Asset Intensive is net of $162 DAC offset.
(2) Asset Intensive is net of DAC offsets of $3,858 included in
change in deferred acquisition cost associated with change in
value of embedded derivative.
Three Months Ended September 30, 2004
Pre-tax Investment Change in Pre-tax
net related value of operating
income (gains)/ embedded income
(loss) losses, net derivative (loss)
U.S. Operations:
Traditional $ 69,007 $ 840 $ -- $ 69,847
Asset Intensive (341) 73(1) 5,434(2) 5,166
Financial Reinsurance 3,365 -- -- 3,365
Total U.S. 72,031 913 5,434 78,378
Canada Operations 15,835 19 -- 15,854
Asia Pacific Operations (1,406) (244) -- (1,650)
Europe & South Africa 9,577 (341) -- 9,236
Other Intl Operations 8,171 (585) -- 7,586
Corporate & Other (6,931) (1,904) -- (8,835)
Consolidated $ 89,106 $ (1,557) $ 5,434 $ 92,983
(1) Asset Intensive is net of $(893) DAC offset.
(2) Asset Intensive is net of DAC offsets of $(13,209)included
in change in deferred acquisition cost associated with change in
value of embedded derivative and $33 investment income offset.
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)
Nine Months Ended September 30, 2005
Pre-tax Investment Change in Pre-tax
net related value of operating
income (gains)/ embedded income
(loss) losses, net derivative (loss)
U.S. Operations:
Traditional $156,289 $ (1,141) $ -- $155,148
Asset Intensive 18,318 (1,694)(1) (218)(2) 16,406
Financial Reinsurance 10,131 -- -- 10,131
Total U.S. 184,738 (2,835) (218) 181,685
Canada Operations 66,557 (4,168) -- 62,389
Asia Pacific Operations 22,551 (120) -- 22,431
Europe & South Africa 23,493 (327) -- 23,166
Other Intl Operations 46,044 (447) -- 45,597
Corporate & Other (50,633) (8,644)(3) -- (59,277)
Consolidated $246,706 $(16,094) $ (218) $230,394
(1) Asset Intensive is net of $367 DAC offset.
(2) Asset Intensive is net of DAC offsets of $5,962 included in
change in deferred acquisition cost associated with change in
value of embedded derivative.
(3) Corporate & Other is net of DAC offsets of $3,048 included in
policy acquisition costs and other insurance expenses.
Nine Months Ended September 30, 2004
Pre-tax Investment Change in Pre-tax
net related value of operating
income (gains)/ embedded income
(loss) losses, net derivative (loss)
U.S. Operations:
Traditional $196,140 $(10,380) $ -- $185,760
Asset Intensive 12,655 374 (1) 3,933(2) 16,962
Financial Reinsurance 9,293 -- -- 9,293
Total U.S. 218,088 (10,006) 3,933 212,015
Canada Operations 52,966 (8,159) -- 44,807
Asia Pacific Operations 10,085 (442) -- 9,643
Europe & South Africa 27,666 (4,643) -- 23,023
Other Intl Operations 37,751 (5,085) -- 32,666
Corporate & Other (19,491) (9,790) -- (29,281)
Consolidated $289,314 $(33,040) $ 3,933 $260,207
(1) Asset Intensive is net of $(1,269) DAC offset.
(2) Asset Intensive is net of DAC offsets of $4,284 included in
change in deferred acquisition cost associated with change in
value of embedded derivative and $33 investment income offset.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Dollars in thousands)
Three Months Ended Nine Months Ended
(Unaudited) September 30, September 30,
2005 2004 2005 2004
Revenues:
Net premiums $ 973,532 $819,454 $2,806,706 $2,430,636
Investment income, net
of related expenses 166,456 144,582 469,793 412,327
Investment related
gains/(losses), net 2,659 664 19,588 31,771
Change in value of
embedded derivatives 3,536 (18,610) 6,180 384
Other revenues 12,234 13,374 43,698 39,983
Total revenues 1,158,417 959,464 3,345,965 2,915,101
Benefits and expenses:
Claims and other
policy benefits 774,336 641,618 2,340,319 1,923,474
Interest credited 59,919 47,336 153,587 138,686
Policy acquisition
costs and other
insurance expenses 158,698 148,090 460,529 425,315
Change in deferred
acquisition cost
associated with
change in value of
embedded derivatives 3,858 (13,209) 5,962 4,284
Other operating expenses 37,992 36,868 109,030 105,293
Interest expense 10,052 9,655 29,832 28,735
Total benefits
and expenses 1,044,855 870,358 3,099,259 2,625,787
Income from continuing
operations before
income taxes 113,562 89,106 246,706 289,314
Provision for income
taxes 40,043 31,107 80,763 99,931
Income from continuing
operations 73,519 57,999 165,943 189,383
Discontinued operations:
Loss from discontinued
accident and health
operations, net of
income taxes (5,890) (18,604) (9,940) (22,551)
Cumulative effect of
change in accounting
principle -- -- -- (361)
Net income $ 67,629 39,395 $ 156,003 $166,471
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
(Unaudited) September 30, September 30,
2005 2004 2005 2004
Earnings per share from
continuing operations:
Basic earnings per share $ 1.17 $ 0.93 $ 2.65 $ 3.04
Diluted earnings per share $ 1.15 $ 0.92 $ 2.60 $ 3.02
Diluted earnings before
Investment related gains/
(losses), change in value
of embedded derivatives,
and related deferred
acquisition costs $ 1.13 $ 0.95 $ 2.39 $ 2.69
Earnings per share from
net income:
Basic earnings per share $ 1.08 $ 0.63 $ 2.49 $ 2.67
Diluted earnings per share $ 1.06 $ 0.63 $ 2.45 $ 2.65
Weighted average number of
common and common equivalent
shares outstanding
(in thousands) 63,653 62,871 63,756 62,751
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Business Summary
At or For the
Nine Months Ended
(Unaudited) September 30,
2005 2004
Gross life reinsurance in force (in billions)
North American business $1,189.5 $1,079.1
International business $ 467.7 $ 324.0
Gross life reinsurance written (in billions)
North American business $ 161.4 $ 146.4
International business $ 101.6 $ 73.6
Consolidated cash and invested assets
(in millions) $11,756.1 $10,152.0
Invested asset book yield - trailing
three months excluding funds withheld 5.89% 6.03%
Investment portfolio mix
Cash and short-term investments 1.50% 1.42%
Fixed maturity securities 55.29% 56.89%
Mortgage loans 5.39% 5.44%
Policy loans 7.95% 8.92%
Funds withheld at interest 27.88% 24.98%
Other invested assets 1.99% 2.35%
Short-term debt (in millions) $ 126.6 $ 27.2
Long-term debt (in millions) $ 276.4 $ 375.1
Company-obligated mandatorily redeemable
preferred securities of subsidiary $ 158.5 $ 158.4
Book value per share outstanding $ 40.33 $ 33.92
Book value per share outstanding, before
impact of FAS 115 (a) $ 34.81 $ 31.01
Total stockholders' equity (in millions) 2,526 2,115
Total stockholders' equity, before
impact of FAS 115 (a) (in millions) 2,181 1,934
Treasury shares 487,640 765,364
Common stock outstanding 62,640,633 62,362,909
(a) Book value per share outstanding and total stockholders' equity,
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
(Unaudited) (Dollars in thousands)
Three Months Ended September 30, 2005
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
Net premiums $ 610,342 $ 1,147 $ -- $611,489
Investment income, net
of related expenses 65,328 61,227 18 126,573
Investment related
gains/(losses), net (68) 401 -- 333
Change in value of
embedded derivatives -- 3,536 -- 3,536
Other revenues 939 2,116 5,226 8,281
Total revenues 676,541 68,427 5,244 750,212
Benefits and expenses:
Claims and other
policy benefits 484,493 859 3 485,355
Interest credited 13,553 45,828 -- 59,381
Policy acquisition costs
and other insurance
expenses 87,861 12,277 660 100,798
Change in deferred ac-
quisition cost associated
with change in value
of embedded derivatives -- 3,858 -- 3,858
Other operating expenses 10,161 1,174 1,287 12,622
Total benefits
and expenses 596,068 63,996 1,950 662,014
Income before
income taxes $ 80,473 $ 4,431 $ 3,294 $ 88,198
Three Months Ended September 30, 2004
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
Net premiums $ 538,524 $ 1,227 $ -- $539,751
Investment income, net
of related expenses 53,305 53,134 14 106,453
Investment related
gains/(losses), net (840) (966) -- (1,806)
Change in value of
embedded derivatives -- (18,610) -- (18,610)
Other revenues 928 2,644 6,896 10,468
Total revenues 591,917 37,429 6,910 636,256
Benefits and expenses:
Claims and other
policy benefits 412,021 7,831 2 419,854
Interest credited 12,073 34,652 -- 46,725
Policy acquisition
costs and other
insurance expenses 87,121 7,201 2,349 96,671
Change in deferred ac-
quisition cost associated
with change in value of
embedded derivatives -- (13,209) -- (13,209)
Other operating
expenses 11,695 1,295 1,194 14,184
Total benefits and
expenses 522,910 37,770 3,545 564,225
Income before
income taxes $ 69,007 $ (341) $3,365 $ 72,031
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
U.S. OPERATIONS
(Dollars in thousands)
Nine Months Ended September 30, 2005
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
Net premiums $1,752,031 $ 3,488 $ -- $1,755,519
Investment income, net
of related expenses 180,034 162,044 51 342,129
Investment related
gain/(losses),net 1,141 2,061 -- 3,202
Change in value of
embedded derivatives -- 6,180 -- 6,180
Other revenues 2,793 5,960 20,384 29,137
Total revenues 1,935,999 179,733 20,435 2,136,167
Benefits and expenses:
Claims and other
policy benefits 1,464,773 4,109 5 1,468,887
Interest credited 41,863 109,809 -- 151,672
Policy acquisition
costs and other
insurance expenses 243,610 37,787 6,230 287,627
Change in deferred ac-
quisition cost associated
with change in value of
embedded derivatives -- 5,962 -- 5,962
Other operating expenses 29,464 3,748 4,069 37,281
Total benefits and
expenses 1,779,710 161,415 10,304 1,951,429
Income before
income taxes $ 156,289 $ 18,318 $ 10,131 $ 184,738
Nine Months Ended September 30, 2004
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
Net premiums $1,599,864 $ 3,599 $ -- $1,603,463
Investment income, net
of related expenses 161,332 146,096 129 307,557
Investment related
gain/(losses),net 10,380 (1,643) -- 8,737
Change in value of
embedded derivatives -- 384 -- 384
Other revenues 3,193 6,221 20,234 29,648
Total revenues 1,774,769 154,657 20,363 1,949,789
Benefits and expenses:
Claims and other
policy benefits 1,272,335 10,056 2 1,282,393
Interest credited 36,268 100,850 -- 137,118
Policy acquisition
costs and other
insurance expenses 235,266 23,330 6,923 265,519
Change in deferred ac-
quisition cost associated
with change in value of
embedded derivatives -- 4,284 -- 4,284
Other operating expenses 34,760 3,482 4,145 42,387
Total benefits and
expenses 1,578,629 142,002 11,070 1,731,701
Income before
income taxes $ 196,140 $12,655 $ 9,293 $ 218,088
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
CANADIAN OPERATIONS
(Dollars in thousands)
Three Months Ended
(Unaudited) September 30,
2005 2004
Revenues:
Net premiums $ 89,074 $ 59,231
Investment income, net of related expenses 30,211 25,142
Investment related gains/(losses), net 1,032 (19)
Other revenues (319) (31)
Total revenues 119,998 84,323
Benefits and expenses:
Claims and other policy benefits 73,810 59,568
Interest credited 266 530
Policy acquisition costs and other
insurance expenses 19,932 5,672
Other operating expenses 3,921 2,718
Total benefits and expenses 97,929 68,488
Income before income taxes $ 22,069 $ 15,835
Nine Months Ended
(Unaudited) September 30,
2005 2004
Revenues:
Net premiums $239,684 $181,209
Investment income, net of related expenses 87,784 72,559
Investment related gains, net 4,247 8,159
Other revenues (266) 38
Total revenues 331,449 261,965
Benefits and expenses:
Claims and other policy benefits 216,707 178,433
Interest credited 875 1,325
Policy acquisition costs and other
insurance expenses 36,310 21,033
Other operating expenses 11,000 8,208
Total benefits and expenses 264,892 208,999
Income before income taxes $ 66,557 $ 52,966
Europe & South Africa
(Dollars in thousands)
Three Months Ended
(Unaudited) September 30,
2005 2004
Revenues:
Net premiums $ 137,145 $116,873
Investment income, net of related expenses 2,127 1,390
Investment related gains, net 391 341
Other revenues 89 673
Total revenues 139,752 119,277
Benefits and expenses:
Claims and other policy benefits 97,039 76,089
Interest credited 109 --
Policy acquisition costs and other
insurance expenses 19,595 27,752
Other operating expenses 7,264 5,480
Interest expense 369 379
Total benefits and expenses 124,376 109,700
Income before income taxes $ 15,376 $ 9,577
Nine Months Ended
(Unaudited) September 30,
2005 2004
Revenues:
Net premiums $411,475 $352,963
Investment income, net of related expenses 7,035 3,797
Investment related gains, net 327 4,643
Other revenues 210 1,555
Total revenues 419,047 362,958
Benefits and expenses:
Claims and other policy benefits 305,488 231,895
Interest credited 662 --
Policy acquisition costs and other
insurance expenses 68,111 86,625
Other operating expenses 20,042 15,686
Interest expense 1,251 1,086
Total benefits and expenses 395,554 335,292
Income before income taxes $ 23,493 $ 27,666
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Asia Pacific
(Dollars in thousands)
Three Months Ended
(Unaudited) September 30,
2005 2004
Revenues:
Net premiums $135,336 $103,362
Investment income, net of related expenses 7,504 4,398
Investment related gains, net 66 244
Other revenues 699 (423)
Total revenues 143,605 107,581
Benefits and expenses:
Claims and other policy benefits 114,059 84,611
Policy acquisition costs and other
insurance expenses 17,943 17,514
Other operating expenses 7,232 6,478
Interest expense 423 384
Total benefits and expenses 139,657 108,987
Income before income taxes $ 3,948 $ (1,406)
Nine Months Ended
(Unaudited) September 30,
2005 2004
Revenues:
Net premiums $398,562 $291,079
Investment income, net of related expenses 21,042 11,162
Investment related gains, net 120 442
Other revenues 2,647 3,162
Total revenues 422,371 305,845
Benefits and expenses:
Claims and other policy benefits 315,336 226,836
Policy acquisition costs and other
insurance expenses 64,147 50,922
Other operating expenses 19,065 16,893
Interest expense 1,272 1,109
Total benefits and expenses 399,820 295,760
Income before income taxes $ 22,551 $ 10,085
CORPORATE AND OTHER
(Dollars in thousands)
Three Months Ended
(Unaudited) September 30,
2005 2004
Revenues:
Net premiums $ 488 $ 237
Investment income, net of related expenses 41 7,199
Investment related gains, net 837 1,904
Other revenues 3,484 2,687
Total revenues 4,850 12,027
Benefits and expenses:
Claims and other policy benefits 4,073 1,496
Interest credited 163 81
Policy acquisition costs and other
insurance expenses 430 481
Other operating expenses 6,953 8,008
Interest expense 9,260 8,892
Total benefits and expenses 20,879 18,958
Income before income taxes $(16,029) $ (6,931)
Nine Months Ended
(Unaudited) September 30,
2005 2004
Revenues:
Net premiums $ 1,466 $ 1,922
Investment income, net of related expenses 11,803 17,252
Investment related gains, net 11,692 9,790
Other revenues 11,970 5,580
Total revenues 36,931 34,544
Benefits and expenses:
Claims and other policy benefits 33,901 3,917
Interest credited 378 243
Policy acquisition costs and other
insurance expenses 4,334 1,216
Other operating expenses 21,642 22,119
Interest expense 27,309 26,540
Total benefits and expenses 87,564 54,035
Income before income taxes $(50,633) $(19,491)
CONTACT: Reinsurance Group of America, Incorporated
Jack B. Lay, 636-736-7439
SOURCE: Reinsurance Group of America, Incorporated