Reinsurance Group Of America Reports Third-Quarter Results; 50 Percent Dividend Increase
ST. LOUIS--(BUSINESS WIRE)--Oct. 26, 2004--Reinsurance Group of America, Incorporated (NYSE:RGA), a leading global provider of life reinsurance, reported net income for the third quarter of $39.4 million, or $0.63 per diluted share, compared to net income of $41.8 million, or $0.83 per diluted share in the prior-year quarter. This year's third-quarter net income was adversely affected by approximately $0.25 per diluted share due to a negotiated claim settlement in the company's discontinued accident and health line of business. Third-quarter net premiums increased 43 percent, to $819.5 million from $573.0 million in 2003. Net investment income totaled $144.6 million versus $122.2 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 25 percent on a diluted per-share basis and totaled $59.8 million, or $0.95 per diluted share compared to $38.0 million, or $0.76 per diluted share in the year-ago quarter.
The company also announced that its board of directors increased the quarterly dividend by 50 percent to $0.09 per share from $0.06 per share, payable November 29 to shareholders of record as of November 8.
Commenting on the third quarter, A. Greig Woodring, president and chief executive officer, said, "We are very pleased with the operating results this quarter, particularly the strong top and bottom-line performance in the U.S. Net premiums in the U.S. increased $170.5 million, or 46 percent over the prior-year quarter. The transaction with Allianz that we closed in the fourth quarter of 2003 contributed approximately $122 million of net premiums to the quarter. Pre-tax net income in the U.S. for the quarter totaled $72.0 million compared to $45.3 million in the prior-year quarter. Pre-tax operating income for the quarter totaled $78.4 million, a 68 percent increase over $46.8 million reported in the prior-year quarter. Mortality experience was favorable during the current quarter versus unfavorable experience in the prior year. U.S. operations also include our Asset Intensive and Financial Reinsurance businesses, each of which posted solid results.
"Our Canada operations reported pre-tax net income of $15.8 million compared to $19.5 million a year ago. The prior-year amount included $8.6 million in realized capital gains compared to minimal realized capital losses this year. Pre-tax operating income was strong, totaling $15.9 million, up 46 percent from $10.9 million. Mortality experience continues to be favorable. Net premiums increased $6.1 million, or 11 percent for the quarter, and totaled $59.2 million. Approximately $2.9 million of the increase in net premiums and approximately $0.8 million of the increase in pre-tax operating income were the result of a favorable currency exchange rate.
"Other International operations, which include our Asia Pacific and Europe and South Africa segments, continued their strong growth, with net premiums increasing 47 percent to $220.2 million in the quarter. Stronger foreign currencies contributed approximately $19.2 million to the premium growth. Pre-tax net income totaled $8.2 million compared to $9.6 million in the prior-year quarter. Pre-tax operating income for the quarter totaled $7.6 million, a decline from the $8.7 million result in the prior-year period. Foreign currency appreciation contributed approximately $0.2 million to current quarter pretax operating income. Results were adversely affected by unfavorable mortality in Asia Pacific. As previously indicated, results in these newer operations may be more volatile than our North America operations due to the smaller size and relative aging of this business.
"Our discontinued accident and health operation reported a net loss of $18.6 million, due primarily to the negotiated settlement of all disputed claims associated with our largest identified accident and health exposure. By resolving this disagreement, we have significantly reduced the amount of disputed claims in excess of our reserves in the accident and health operation. We are pleased to put this particular disagreement behind us, since the disputed amounts totaled approximately $77 million. We now have remaining $28 million of total accident and health claims under dispute or currently subject to audit."
For the first nine months of 2004, net income totaled $166.5 million, or $2.65 per diluted share, compared to $117.1 million, or $2.34 per diluted share, in the year-ago period. Operating income increased to $169.1 million, or $2.69 per diluted share, from $118.0 million, or $2.36 per diluted share. Consolidated premiums were up 43 percent, to $2,430.6 million from $1,700.7 million.
Woodring concluded, "We are pleased with the operating results for the third quarter and first nine months of 2004. On a year-to-date basis, operating income per diluted share is up 14 percent, an excellent result, particularly considering our large equity offering in late 2003. Additionally, during the quarter, the UK trade magazine The Review - Worldwide Reinsurance named RGA "Life Reinsurance Company of the Year". The award recognizes RGA as a company that shows consistent financial performance, offers superior service and security to clients, and displays the ability to adapt to market and industry changes. We certainly believe this to be the case and are honored to have received this award."
A conference call to discuss the company's third-quarter results will begin at 9 a.m. Eastern Time on Wednesday, October 27. Interested parties may access the call by dialing 800-210-9006 (domestic) or 719- 457-2621 (international). The access code is 762818. 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 November 4 at 888-203-1112 (domestic) or 719-457-0820, access code 762818.
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 $13.3 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) risks inherent in our risk management and investment strategy, including 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 adequacy of reserves relating to settlements, awards and terminated and discontinued lines of business, (9) the stability of governments and economies in the markets in which we operate, (10) competitive factors and competitors' responses to our initiatives, (11) the success of our clients, (12) successful execution of our entry into new markets, (13) successful development and introduction of new products, (14) our ability to successfully integrate and operate reinsurance business that we acquire, including without limitation, the traditional life reinsurance business of Allianz Life, (15) regulatory action that may be taken by state Departments of Insurance with respect to us, MetLife, or its subsidiaries, (16) our dependence on third parties, including those insurance companies and reinsurers to which we cede some reinsurance, third-party investment managers and others, (17) changes in laws, regulations, and accounting standards applicable to us, our subsidiaries, or our business, and (18) 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 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 Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
GAAP net income-continuing
operations $57,999 $42,224 $189,383 $118,970
Realized investment
(gains)/losses (1,150) (4,318) (22,008) (856)
Change in value of
embedded derivatives 12,096 - (250) -
DAC offsets for embedded
derivatives and realized
investment (gains) /
losses, net (9,145) 70 1,981 (87)
Operating income $ 59,800 $37,976 $169,106 $118,027
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 September 30, 2004
Realized Change in
Pre-tax investment value of Pre-tax
net (gains)/ embedded operating
income losses, derivative, income
(loss) net (1) net (2) (loss)
U.S. Operations:
Traditional $ 69,007 $ 840 $ -- $ 69,847
Asset Intensive (341) 73 5,434 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 $(13,209) DAC offset and $33 investment
income offset.
Three Months Ended September 30, 2003
Realized
Pre-tax investment Pre-tax
net (gains)/ operating
income losses, income
(loss) net (1) (loss)
U.S. Operations:
Traditional $ 38,145 $ 1,059 $ 39,204
Asset Intensive 3,902 475 4,377
Financial Reinsurance 3,256 -- 3,256
Total U.S. 45,303 1,534 46,837
Canada Operations 19,529 (8,596) 10,933
Asia Pacific Operations 6,529 104 6,633
Europe & South Africa 3,098 (1,040) 2,058
Other Intl Operations 9,627 (936) 8,691
Corporate & Other (11,452) 1,546 (9,906)
Consolidated $ 63,007 $ (6,452) $ 56,555
(1) Asset Intensive is net of $108 DAC 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, 2004
Realized Change in
Pre-tax investment value of Pre-tax
net (gains)/ embedded operating
income losses, derivative, income
(loss) net (1) net (2) (loss)
U.S. Operations:
Traditional $196,140 $ (10,380) $ -- $185,760
Asset Intensive 12,655 374 3,933 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 $4,284 DAC offset and $33 investment
income offset.
Nine Months Ended September 30, 2003
Realized
Pre-tax investment Pre-tax
net (gains)/ operating
income losses, income
(loss) net (1) (loss)
U.S. Operations:
Traditional $123,990 $ 7,017 $131,007
Asset Intensive 10,764 1,947 12,711
Financial Reinsurance 8,948 -- 8,948
Total U.S. 143,702 8,964 152,666
Canada Operations 43,585 (12,158) 31,427
Asia Pacific Operations 12,424 622 13,046
Europe & South Africa 9,409 (1,888) 7,521
Other Intl Operations 21,833 (1,266) 20,567
Corporate & Other (29,251) 3,551 (25,700)
Consolidated $179,869 $ (909) $178,960
(1) Asset Intensive is net of $(133) DAC 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,
2004 2003 2004 2003
Revenues:
Net premiums $819,454 $572,970 $2,430,636 $1,700,746
Investment income, net
of related expenses 144,582 122,153 412,327 345,234
Realized investment
gains, net 664 6,560 31,771 776
Change in value of
embedded derivatives (18,610) -- 384 --
Other revenues 13,374 10,819 39,983 33,670
Total revenues 959,464 712,502 2,915,101 2,080,426
Benefits and expenses:
Claims and other
policy benefits 641,618 457,844 1,923,474 1,334,081
Interest credited 47,336 46,251 138,686 130,914
Policy acquisition
costs and other
insurance expenses 148,090 111,334 425,315 330,903
Change in deferred
acquisition cost
associated with
change in value of
embedded derivatives (13,209) -- 4,284 --
Other operating expenses 36,868 24,683 105,293 77,275
Interest expense 9,655 9,383 28,735 27,384
Total benefits
and expenses 870,358 649,495 2,625,787 1,900,557
Income from continuing
operations before
income taxes 89,106 63,007 289,314 179,869
Provision for income
taxes 31,107 20,783 99,931 60,899
Income from continuing
operations 57,999 42,224 189,383 118,970
Discontinued operations:
Loss from discontinued
accident and health
operations, net of
income taxes (18,604) (473) (22,551) (1,918)
Cumulative effect of change
in accounting principle -- -- (361) --
Net income $ 39,395 $ 41,751 $ 166,471 $117,052
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,
2004 2003 2004 2003
Earnings per share from
continuing operations:
Basic earnings per share $ 0.93 $ 0.85 $ 3.04 $ 2.39
Diluted earnings per share $ 0.92 $ 0.84 $ 3.02 $ 2.38
Diluted earnings before
realized investment gains/
(losses), change in value
of embedded derivatives,
and related deferred
acquisition costs $ 0.95 $ 0.76 $ 2.69 $ 2.36
Earnings per share from
net income:
Basic earnings per share $ 0.63 $ 0.84 $ 2.67 $ 2.36
Diluted earnings per share $ 0.63 $ 0.83 $ 2.65 $ 2.34
Weighted average number of
common and common equivalent
shares outstanding
(in thousands) 62,871 50,267 62,751 49,943
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Business Summary
At or For the
Nine Months Ended
(Unaudited) September 30,
2004 2003
Gross life reinsurance in force (in billions)
North American business $1,079.1 $ 674.0
International business 324.0 219.0
Gross life reinsurance written (in billions)
North American business 146.4 103.5
International business 73.6 65.7
Consolidated cash and invested assets
(in millions) 10,152.0 7,925.0
Invested asset book yield - trailing
three months excluding funds withheld 6.03% 6.59%
Investment portfolio mix
Cash and short-term investments 1.42% 2.26%
Fixed maturity securities 56.89% 49.13%
Mortgage loans 5.44% 5.48%
Policy loans 8.92% 10.73%
Funds withheld at interest 24.98% 30.68%
Other invested assets 2.35% 1.72%
Book value per share outstanding $ 33.92 $ 28.92
Book value per share outstanding, before
impact of FAS 115(a) 31.01 25.45
Treasury stock 765,364 1,141,138
(a) 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 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
Realized investment
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
acquisition 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 (loss) before
income taxes $ 69,007 $ (341) $ 3,365 $ 72,031
Three Months Ended September 30, 2003
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
Net premiums $ 368,171 $ 1,093 $ -- $369,264
Investment income,
net of related
expenses 47,370 44,385 97 91,852
Realized investment
losses, net (1,059) (367) -- (1,426)
Other revenues 489 2,022 6,613 9,124
Total revenues 414,971 47,133 6,710 468,814
Benefits and expenses:
Claims and other
policy benefits 297,654 776 -- 298,430
Interest credited 14,919 30,703 -- 45,622
Policy acquisition
costs and other
insurance expenses 56,738 10,861 2,206 69,805
Other operating
expenses 7,515 891 1,248 9,654
Total benefits
and expenses 376,826 43,231 3,454 423,511
Income before
income taxes $ 38,145 $ 3,902 $ 3,256 $ 45,303
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
U.S. OPERATIONS
(Dollars in thousands)
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
Realized investment
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
acquisition costs
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
Nine Months Ended September 30, 2003
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
Net premiums $1,115,360 $ 3,197 $ -- $1,118,557
Investment income,
net of related
expenses 135,246 122,923 97 258,266
Realized investment
losses, net (7,017) (2,080) -- (9,097)
Other revenues 3,186 5,035 20,179 28,400
Total revenues 1,246,775 129,075 20,276 1,396,126
Benefits and expenses:
Claims and other
policy benefits 888,905 4,166 -- 893,071
Interest credited 45,169 84,424 -- 129,593
Policy acquisition
costs and other
insurance expenses 164,257 26,892 7,447 198,596
Other operating
expenses 24,454 2,829 3,881 31,164
Total benefits
and expenses 1,122,785 118,311 11,328 1,252,424
Income before
income taxes $ 123,990 $ 10,764 $ 8,948 $ 143,702
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
CANADIAN OPERATIONS
(Dollars in thousands)
Three Months Ended
September 30,
2004 2003
Revenues:
Net premiums $ 59,231 $ 53,144
Investment income, net of related expenses 25,142 22,244
Realized investment gains/(losses), net (19) 8,596
Other revenues (31) 50
Total revenues 84,323 84,034
Benefits and expenses:
Claims and other policy benefits 59,568 56,132
Interest credited 530 536
Policy acquisition costs and other
insurance expenses 5,672 5,257
Other operating expenses 2,718 2,580
Total benefits and expenses 68,488 64,505
Income before income taxes $ 15,835 $ 19,529
Nine Months Ended
September 30,
2004 2003
Revenues:
Net premiums $181,209 $153,747
Investment income, net of related expenses 72,559 63,519
Realized investment gains, net 8,159 12,158
Other revenues 38 (191)
Total revenues 261,965 229,233
Benefits and expenses:
Claims and other policy benefits 178,433 161,411
Interest credited 1,325 1,089
Policy acquisition costs and other
insurance expenses 21,033 15,714
Other operating expenses 8,208 7,434
Total benefits and expenses 208,999 185,648
Income before income taxes $ 52,966 $ 43,585
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Europe and South Africa
(Dollars in thousands)
Three Months Ended
September 30,
2004 2003
Revenues:
Net premiums $116,873 $ 92,502
Investment income, net of related expenses 1,390 1,329
Realized investment gains, net 341 1,040
Other revenues 673 (105)
Total revenues 119,277 94,766
Benefits and expenses:
Claims and other policy benefits 76,089 60,435
Policy acquisition costs and other
insurance expenses 27,752 27,293
Other operating expenses 5,480 3,682
Interest expense 379 258
Total benefits and expenses 109,700 91,668
Income before income taxes $ 9,577 $ 3,098
Nine Months Ended
September 30,
2004 2003
Revenues:
Net premiums $352,963 $259,829
Investment income, net of related expenses 3,797 2,808
Realized investment gains, net 4,643 1,888
Other revenues 1,555 18
Total revenues 362,958 264,543
Benefits and expenses:
Claims and other policy benefits 231,895 161,668
Policy acquisition costs and other
insurance expenses 86,625 81,516
Other operating expenses 15,686 11,228
Interest expense 1,086 722
Total benefits and expenses 335,292 255,134
Income before income taxes $ 27,666 $ 9,409
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Asia Pacific
(Dollars in thousands)
Three Months Ended
September 30,
2004 2003
Revenues:
Net premiums $103,362 $ 57,261
Investment income, net of related expenses 4,398 3,050
Realized investment gains/(losses), net 244 (104)
Other revenues (423) (11)
Total revenues 107,581 60,196
Benefits and expenses:
Claims and other policy benefits 84,611 41,101
Policy acquisition costs and other
insurance expenses 17,514 8,873
Other operating expenses 6,478 3,370
Interest expense 384 323
Total benefits and expenses 108,987 53,667
Income (loss) before income taxes $ (1,406) $ 6,529
Nine Months Ended
September 30,
2004 2003
Revenues:
Net premiums $291,079 $165,836
Investment income, net of related expenses 11,162 8,198
Realized investment gains/(losses), net 442 (622)
Other revenues 3,162 896
Total revenues 305,845 174,308
Benefits and expenses:
Claims and other policy benefits 226,836 115,555
Policy acquisition costs and other
insurance expenses 50,922 33,401
Other operating expenses 16,893 12,086
Interest expense 1,109 842
Total benefits and expenses 295,760 161,884
Income before income taxes $ 10,085 $ 12,424
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
CORPORATE AND OTHER
(Dollars in thousands)
Three Months Ended
September 30,
2004 2003
Revenues:
Net premiums $ 237 $ 799
Investment income, net of related expenses 7,199 3,678
Realized investment gains/(losses), net 1,904 (1,546)
Other revenues 2,687 1,761
Total revenues 12,027 4,692
Benefits and expenses:
Claims and other policy benefits 1,496 1,746
Interest credited 81 93
Policy acquisition costs and other
insurance expenses 481 106
Other operating expenses 8,008 5,397
Interest expense 8,892 8,802
Total benefits and expenses 18,958 16,144
Loss before income taxes $(6,931) $(11,452)
Nine Months Ended
September 30,
2004 2003
Revenues:
Net premiums $ 1,922 $ 2,777
Investment income, net of related expenses 17,252 12,443
Realized investment gains/(losses), net 9,790 (3,551)
Other revenues 5,580 4,547
Total revenues 34,544 16,216
Benefits and expenses:
Claims and other policy benefits 3,917 2,376
Interest credited 243 232
Policy acquisition costs and other
insurance expenses 1,216 1,676
Other operating expenses 22,119 15,363
Interest expense 26,540 25,820
Total benefits and expenses 54,035 45,467
Loss before income taxes $(19,491) $ (29,251)
CONTACT: Reinsurance Group of America
Jack B. Lay, 636-736-7439
SOURCE: Reinsurance Group of America