============================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): October 26, 2004 REINSURANCE GROUP OF AMERICA, INCORPORATED (Exact Name of Registrant as Specified in its Charter) MISSOURI 1-11848 43-1627032 (State or other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification Number) 1370 TIMBERLAKE MANOR PARKWAY CHESTERFIELD, MISSOURI 63017 (Address of Principal Executive Office) (636) 736-7000 (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ============================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On October 26, 2004, RGA issued a press release announcing its earnings for the three months ended September 30, 2004 and providing certain additional information. In addition, RGA announced in the press release that a conference call would be held on October 27, 2004 to discuss its financial and operating results for the three months ended September 30, 2004. A copy of this press release is furnished with this report as Exhibit 99.1 and incorporated by reference herein. The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information or exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. ITEM 7.01 REGULATION FD DISCLOSURE On October 26, 2004, RGA issued a press release announcing its earnings for the three months ended September 30, 2004 and providing certain additional information. In addition, RGA announced in the press release that a conference call would be held on October 27, 2004 to discuss its financial and operating results for the three months ended September 30, 2004. A copy of this press release is furnished with this report as Exhibit 99.1 and incorporated by reference herein. The information in Item 7.01 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, nor shall such information or exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. 99.1 Press Release of Reinsurance Group of America, Incorporated dated October 26, 2004. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Reinsurance Group Of America, Incorporated Date: October 26, 2004 By: /s/ Jack B. Lay ----------------------------------------- Name: Jack B. Lay Title: Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release of Reinsurance Group of America, Incorporated dated October 26, 2004.
Exhibit 99.1 [RGA logo] For further information, contact Jack B. Lay Executive Vice President and Chief Financial Officer (636) 736-7439 FOR IMMEDIATE RELEASE - --------------------- REINSURANCE GROUP OF AMERICA REPORTS THIRD-QUARTER RESULTS; ----------------------------------------------------------- 50 PERCENT DIVIDEND INCREASE ---------------------------- ST. LOUIS, October 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 - more -
Add One 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 - more -
Add Two 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. - more -
Add Three 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. - tables attached -
Add Four 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 - more -
Add Five 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. - more - Add Six REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Pre-tax Net Income From Continuing Operations to Pre-tax Operating Income (Dollars in thousands, except per share data) 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. - more - Add Seven 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 =========================================== - more -
Add Eight 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 - more -
Add Nine 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* 31.01 25.45 Treasury stock 765,364 1,141,138
* Book value per share outstanding, before impact of FAS 115, is a non-GAAP financial measure that management believes is important in evaluating the balance sheet ignoring the effect of mark-to-market adjustments that primarily relate to changes in interest rates and credit spreads on investment securities since they were acquired. - more - Add Ten 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 ========== ========= ========== ======== - more -
Add Eleven 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 ========== ========= ========== ========== - more -
Add Twelve 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 ======== ======== - more -
Add Thirteen 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 ======== ======== - more -
Add Fourteen 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 ======== ======== - more -
Add Fifteen 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) ======== ======== # # #