UNITED STATES 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): July 24, 2006 REINSURANCE GROUP OF AMERICA, INCORPORATED (Exact Name of Registrant as Specified in its Charter) MISSOURI 1-11848 43-1627032 (State or Other Jurisdiction of (Commission (IRS Employer Incorporation) File Number) Identification Number) 1370 TIMBERLAKE MANOR PARKWAY, CHESTERFIELD, MISSOURI 63017 (Address of Principal Executive Office) Registrant's telephone number, including area code: (636) 736-7000 Check the appropriate box below if the Form 8-K filing 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 July 24, 2006, Reinsurance Group of America, Incorporated issued a press release announcing its earnings for the three-month period ended June 30, 2006 and providing certain additional information. The press release also notes that a conference call will be held on July 25, 2006 to discuss the financial and operating results for the three-month period ended June 30, 2006. A copy of the press release is furnished with this report as Exhibit 99.1 and shall not be deemed filed pursuant to Instruction B.2 of Form 8-K. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits Exhibit No. Exhibit ----------- ------- 99.1 Press Release of Reinsurance Group of America, Incorporated dated July 24, 2006 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: July 24, 2006 By: /s/ Jack B. Lay ------------------------------------- Jack B. Lay Executive Vice President and Chief Financial Officer
EXHIBIT INDEX Exhibit No. Exhibit ----------- ------- 99.1 Press Release of Reinsurance Group of America, Incorporated dated July 24, 2006.
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 ------------------------------------ SECOND-QUARTER RESULTS ---------------------- ST. LOUIS, July 24, 2006 - Reinsurance Group of America, Incorporated (NYSE:RGA), a leading global provider of life reinsurance, reported net income for the second quarter of $63.6 million, or $1.01 per diluted share, compared to $21.8 million, or $0.34 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 to $69.1 million, or $1.10 per diluted share, from $20.1 million, or $0.32 per diluted share in the year-ago quarter. Second-quarter net premiums rose 16 percent, to $1,076.6 million, from $931.4 million a year ago. Net investment income totaled $168.6 million versus $146.3 million the year before. A. Greig Woodring, president and chief executive officer, commented, "Our consolidated results were good, including strong premium growth. The U.S. segment reported solid earnings with pre-tax net income totaling $70.9 million for the quarter versus $27.3 million the year before. Pre-tax operating income rose to $78.5 million from $37.8 million the year before. Prior-year results were adversely affected by an unusually high dollar volume of large claims. Mortality experience for the current quarter was somewhat high, but within our range of expectations. Net premiums were up 15 percent to $663.9 million from $575.8 million. That rate of increase year-to-date totals 12 percent." For the first half of 2006, net income totaled $132.7 million, or $2.12 per diluted share, compared to $88.4 million, or $1.39 per diluted share, in the year-ago period. Operating income totaled $137.5 million, or $2.19 per diluted share, compared to $80.5 million, or $1.26 per diluted share in the prior-year period. Consolidated premiums were up 13 percent, to $2,069.0 million from $1,833.2 million. Woodring commented, "We are pleased with the results - more -
Add One in the first half of the year and believe the markets in which we operate will continue to offer attractive opportunities throughout the remainder of the year. "Turning back to the second-quarter results, our Canada operations reported pre-tax net income of $11.1 million compared to $10.8 million a year ago. Pre-tax operating income was down 2 percent to $8.9 million from $9.1 million. Mortality experience was adversely affected by large claims, but we expect claims flow to return to more normalized levels in subsequent periods. Net premiums increased 26 percent to $97.1 million from $76.9 million. Current quarter net premiums and pre-tax operating income benefited from a favorable currency exchange rate relative to the prior year by approximately $9.4 million and $0.9 million, respectively. "Other International operations, which include our Asia Pacific and Europe and South Africa segments, were mixed, with strong results in Europe and South Africa more than offsetting slightly weaker-than-expected results in Asia Pacific. "Asia Pacific reported pre-tax net income of $7.7 million compared with pre-tax net income of $11.4 million in the year-ago quarter. Pre-tax operating income decreased to $7.8 million from $11.3 million. Segment-wide claims experience was somewhat higher-than-expected. Net premiums increased 16 percent to $168.9 million from $145.0 million. Foreign currency fluctuations relative to prior year adversely affected net premiums and pre-tax operating income by approximately $3.0 million and $0.3 million, respectively. "As was the case in the first quarter of the year, bottom-line results in Europe and South Africa were strong, driven primarily by favorable mortality experience in the UK. Pre-tax net income totaled $17.3 million compared to a pre-tax net loss of $6.8 million a year ago, when we experienced unfavorable mortality fluctuations. Pre-tax operating income improved to $17.4 million from a pre-tax operating loss of $6.7 million. Net premiums increased 10 percent for the quarter to $146.1 million, a good result considering the slowdown in the UK's primary insurance market. Foreign currency exchange fluctuations adversely affected reported net premiums and pre-tax operating income by approximately $1.8 million and $0.3 million, respectively." Woodring concluded, "During June, we announced a securitization transaction which locks in long-term financing for statutory-based U.S. term life reserves at a rate similar to our existing short-term financing rate. A newly formed subsidiary, Timberlake Financial, L.L.C., issued $850.0 million of 30-year, floating-rate notes. The notes are covered by a third-party - more -
Add Two financial guarantee insurance policy and there is no recourse to RGA or its other subsidiaries. The transaction helps diversify our statutory reserve funding sources and eliminates refinancing risk. We were very pleased with the terms and execution of this securitization." The company also announced that its board of directors declared a regular quarterly dividend of $0.09, payable August 25 to shareholders of record as of August 4. A conference call to discuss the company's second-quarter results will begin at 9 a.m. Eastern Time on Tuesday, July 25. Interested parties may access the call by dialing 800-210-9006 (domestic) or 719-457-2621 (international). The access code is 5499974. 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 2 at 888-203-1112 (domestic) or 719-457-0820, access code 5499974. 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, Bermuda, China, Hong Kong, India, Ireland, Japan, Mexico, South Africa, South Korea, Spain, Taiwan, and the United Kingdom. Worldwide, the company has approximately $1.9 trillion of life reinsurance in force, and assets of $17.8 billion. MetLife, Inc. is the beneficial owner of approximately 53 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 - more -
Add Three 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, catastrophes, terrorist attacks, epidemics or pandemics 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. - more -
Add Four 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 Five 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) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, --------------------------------------- 2006 2005 2006 2005 ---- ---- ---- ---- GAAP net income-continuing operations $ 63,789 $ 25,160 $134,369 $ 92,424 Investment related (gains)/losses 3,643 (11,994) 3,082 (14,726) Change in value of embedded derivatives 7,198 12,945 4,239 (1,719) DAC offset for embedded derivatives and investment related (gains)/losses, net (5,563) (6,004) (4,169) 4,549 --------------------------------------- Operating income $ 69,067 $ 20,107 $137,521 $ 80,528 - 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) (Unaudited) Three Months Ended June 30, 2006 Investment Change in Pre-tax related value of Pre-tax net (gains)/ embedded operating income losses, derivatives, income (loss) net net (loss) ------- ---------- ------------ -------- U.S. Operations: Traditional $ 67,331 $ 2,506 $ -- $ 69,837 Asset Intensive (276) 1,935(1) 3,093(2) 4,752 Financial Reinsurance 3,880 -- -- 3,880 ---------------------------------------------- Total U.S. 70,935 4,441 3,093 78,469 Canada Operations 11,074 (2,194) -- 8,880 Asia Pacific Operations 7,725 92 -- 7,817 Europe & South Africa 17,269 181 -- 17,450 ---------------------------------------------- Other Intl Operations 24,994 273 -- 25,267 Corporate & Other (9,569) 2,369 -- (7,200) ---------------------------------------------- Consolidated $ 97,434 $ 4,889 $ 3,093 $105,416 ============================================== (1) Asset Intensive is net of $(576)DAC offset. (2) Asset Intensive is net of DAC offsets of$(7,982)included in change in deferred acquisition cost associated with change in value of embedded derivative. (Unaudited) Three Months Ended June 30, 2005 Investment Change in Pre-tax related value of Pre-tax net (gains)/ embedded operating income losses, derivatives, income (loss) net net (loss) ------- ---------- ------------ -------- U.S. Operations: Traditional $ 29,202 $ 2,633 $ -- $ 31,835 Asset Intensive (5,576) 1,560(1) 6,313(2) 2,297 Financial Reinsurance 3,636 5 -- 3,641 ---------------------------------------------- Total U.S. 27,262 4,198 6,313 37,773 Canada Operations 10,797 (1,648) -- 9,149 Asia Pacific Operations 11,376 (101) -- 11,275 Europe & South Africa (6,844) 180 -- (6,664) ---------------------------------------------- Other Intl Operations 4,532 79 -- 4,611 Corporate & Other (9,982) (12,834)(3) -- (22,816) ---------------------------------------------- Consolidated $ 32,609 $(10,205) $ 6,313 $ 28,717 ============================================== (1) Asset Intensive is net of $(322)DAC offset (2) Asset Intensive is net of DAC offsets of $(13,604)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. - more -
Add Seven 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) (Unaudited) Six Months Ended June 30, 2006 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 $136,730 $ 3,735 $ -- $140,465 Asset Intensive 7,007 4,655(1) 1,298(2) 12,960 Financial Reinsurance 7,534 -- -- 7,534 -------------------------------------------- Total U.S. 151,271 8,390 1,298 160,959 Canada Operations 19,505 (1,995) -- 17,510 Asia Pacific Operations 14,339 77 -- 14,416 Europe & South Africa 32,066 147 -- 32,213 -------------------------------------------- Other Intl Operations 46,405 224 -- 46,629 Corporate & Other (11,547) (2,975) -- (14,522) -------------------------------------------- Consolidated $205,634 $ 3,644 $ 1,298 $210,576 ============================================ (1) Asset Intensive is net of $(1,189)DAC offset. (2) Asset Intensive is net of DAC offsets of $(5,225)included in change in deferred acquisition cost associated with change in value of embedded derivative. (Unaudited) Six Months Ended June 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 $ 78,690 $ 3,664 $ -- $ 82,354 Asset Intensive 10,126 (1,429)(1) (540)(2) 8,157 Financial Reinsurance 6,942 7 -- 6,949 --------------------------------------------- Total U.S. 95,758 2,242 (540) 97,460 Canada Operations 26,459 (2,283) -- 24,176 Asia Pacific Operations 14,286 (54) -- 14,232 Europe & South Africa 7,669 166 -- 7,835 --------------------------------------------- Other Intl Operations 21,955 112 -- 22,067 Corporate & Other (11,028) (13,728)(3) -- (24,756) --------------------------------------------- Consolidated $133,144 $(13,657) $ (540) $118,947 ============================================= (1) Asset Intensive is net of $205 DAC offset. (2) Asset Intensive is net of DAC offsets of $2,104 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. - more -
Add Eight 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, - ---------------------------------------------------------------------------- 2006 2005 2006 2005 ---- ---- ---- ---- Revenues: Net premiums $1,076,603 $931,354 $2,069,045 $1,833,174 Investment income, net of related expenses 168,605 146,284 355,546 303,337 Investment related gains/(losses), net (5,314) 12,950 (4,682) 16,929 Change in value of embedded derivatives (11,075) (19,917) (6,523) 2,644 Other revenues 13,717 20,661 28,247 31,464 ---------------------- ------------------------ Total revenues 1,242,536 1,091,332 2,441,633 2,187,548 Benefits and expenses: Claims and other policy benefits 874,531 827,930 1,686,044 1,565,983 Interest credited 44,732 38,615 106,261 93,668 Policy acquisition costs and other insurance expenses 172,700 157,855 324,504 301,831 Change in deferred acquisition cost associated with change in value of embedded derivatives (7,982) (13,604) (5,225) 2,104 Other operating expenses 45,830 38,032 92,357 71,038 Collateral finance facilities expense 277 -- 277 -- Interest expense 15,014 9,895 31,781 19,780 ---------------------- ------------------------ Total benefits and expenses 1,145,102 1,058,723 2,235,999 2,054,404 ---------------------- ------------------------ Income from continuing operations before income taxes 97,434 32,609 205,634 133,144 Provision for income taxes 33,645 7,449 71,265 40,720 ---------------------- ------------------------ Income from continuing operations 63,789 25,160 134,369 92,424 Discontinued operations: Loss from discontinued accident and health operations, net of income taxes (158) (3,343) (1,668) (4,050) ---------------------- ------------------------ Net income $63,631 $21,817 $ 132,701 $ 88,374 ====================== ======================== - more -
Add Nine REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Statements of Income (In thousands, except per share data) Three Months Ended Six Months Ended (Unaudited) June 30, June 30, ------------------------------------------------------------------------ 2006 2005 2006 2005 ---- ---- ---- ---- Earnings per share from continuing operations: Basic earnings per share $ 1.04 $ 0.40 $ 2.20 $ 1.48 Diluted earnings per share $ 1.02 $ 0.39 $ 2.14 $ 1.45 Diluted earnings before realized investment gains/ (losses), change in value of embedded derivatives, and related deferred acquisition costs $ 1.10 $ 0.32 $ 2.19 $ 1.26 Earnings per share from net income: Basic earnings per share $ 1.04 $ 0.35 $ 2.17 $ 1.41 Diluted earnings per share $ 1.01 $ 0.34 $ 2.12 $ 1.39 Weighted average number of common and common equivalent shares outstanding (in thousands) 62,709 63,764 62,663 63,806 - more -
Add Ten REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Business Summary At or For the Six Months Ended (Unaudited) June 30, - ------------------------------------------------------------------------- 2006 2005 ---- ---- Gross life reinsurance in force (in billions) North American business $1,269.9 $1,139.4 International business $ 594.5 $ 453.8 Gross life reinsurance written (in billions) North American business $ 108.8 $ 96.8 International business $ 74.7 $ 69.5 Consolidated cash and invested assets (in millions) $13,713.6 $11,341.2 Invested asset book yield - trailing three months excluding funds withheld 5.72% 5.99% Investment portfolio mix Cash and short-term investments 8.45% 1.70% Fixed maturity securities 50.68% 55.72% Mortgage loans 4.74% 5.54% Policy loans 7.16% 8.40% Funds withheld at interest 27.48% 26.63% Other invested assets 1.49% 2.01% Collateral finance facilities (in millions) $ 850.3 $ -- Short-term debt (in millions) $ 27.7 $ 176.6 Long-term debt (in millions) $ 674.5 $ 226.8 Company-obligated mandatorily redeemable preferred securities of subsidiary (in millions) $ 158.6 $ 158.5 Book value per share outstanding $ 40.30 $ 39.60 Book value per share outstanding, before impact of FAS 115* $ 38.16 $ 33.39 Total stockholders' equity (in millions) 2,466.0 2,480.7 Total stockholders' equity, before impact of FAS 115* (in millions) 2,335.1 2,091.2 Treasury shares 1,940,109 489,640 Common stock outstanding 61,188,164 62,638,633 * Book value per share outstanding and total stockholders' equity, before impact of FAS 115, are non-GAAP financial measures that management believes are 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 Eleven REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. OPERATIONS (Unaudited) (Dollars in thousands) Three Months Ended June 30, 2006 Asset Financial Total Revenues: Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Net premiums $ 662,301 $ 1,605 $ -- $ 663,906 Investment income, net of related expenses 74,657 48,424 (152) 122,929 Investment related losses, net (2,506) (2,511) -- (5,017) Change in value of embedded derivatives -- (11,075) -- (11,075) Other revenues 276 3,908 7,460 11,644 ------------------------------------------------ Total revenues 734,728 40,351 7,308 782,387 Benefits and expenses: Claims and other policy benefits 545,640 727 -- 546,367 Interest credited 11,796 31,930 -- 43,726 Policy acquisition costs and other insurance expenses 101,229 14,539 2,326 118,094 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- (7,982) -- (7,982) Other operating expenses 8,732 1,413 1,102 11,247 ------------------------------------------------ Total benefits and expenses 667,397 40,627 3,428 711,452 Income before income taxes $ 67,331 $ (276) $ 3,880 $ 70,935 ========== ========= ======== ========== (Unaudited) Three Months Ended June 30, 2005 Asset Financial Total Revenues: Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Net premiums $ 574,695 $ 1,117 $ -- $ 575,812 Investment income, net of related expenses 66,172 41,041 92 107,305 Investment related losses, net (2,633) (1,882) (5) (4,520) Change in value of embedded derivatives -- (19,917) -- (19,917) Other revenues 145 2,797 7,007 9,949 ------------------------------------------------- Total revenues 638,379 23,156 7,094 668,629 Benefits and expenses: Claims and other policy benefits 497,019 4,933 -- 501,952 Interest credited 14,303 23,730 -- 38,033 Policy acquisition costs and other insurance expenses 87,817 12,437 2,113 102,367 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- (13,604) -- (13,604) Other operating expenses 10,038 1,236 1,345 12,619 ------------------------------------------------- Total benefits and expenses 609,177 28,732 3,458 641,367 Income before income taxes $ 29,202 $ (5,576) $ 3,636 $ 27,262 ========== ========= ======== ========== - more -
Add Twelve REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. OPERATIONS (Dollars in thousands) (Unaudited) Six Months Ended June 30, 2006 Asset Financial Total Revenues: Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Net premiums $ 1,274,138 $ 3,079 $ -- $1,277,217 Investment income, net of related expenses 145,699 119,321 (155) 264,865 Realized investment losses, net (3,735) (5,844) -- (9,579) Change in value of embedded derivatives -- (6,523) -- (6,523) Other revenues (44) 7,197 14,806 21,959 --------------------------------------------------- Total revenues 1,416,058 117,230 14,651 1,547,939 Benefits and expenses: Claims and other policy benefits 1,053,786 (142) 1 1,053,645 Interest credited 23,283 81,467 -- 104,750 Policy acquisition costs and other insurance expenses 183,401 30,934 4,660 218,995 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- (5,225) -- (5,225) Other operating expenses 18,858 3,189 2,456 24,503 --------------------------------------------------- Total benefits and expenses 1,279,328 110,223 7,117 1,396,668 Income before income taxes $ 136,730 $ 7,007 $ 7,534 $ 151,271 =========== ========= ======== ========== (Unaudited) Six Months Ended June 30, 2005 Asset Financial Total Revenues: Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------- Net premiums $ 1,141,489 $ 2,341 $ -- $1,143,830 Investment income, net of related expenses 129,497 97,695 162 227,354 Realized investment gain/(losses),net (3,664) 1,634 (7) (2,037) Change in value of embedded derivatives -- 2,644 -- 2,644 Other revenues 711 3,844 13,645 18,200 -------------------------------------------------- Total revenues 1,268,033 108,158 13,800 1,389,991 Benefits and expenses: Claims and other policy benefits 980,281 3,249 2 983,532 Interest credited 28,310 63,981 -- 92,291 Policy acquisition costs and other insurance expenses 161,455 26,124 4,074 191,653 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- 2,104 -- 2,104 Other operating expenses 19,297 2,574 2,782 24,653 -------------------------------------------------- Total benefits and expenses 1,189,343 98,032 6,858 1,294,233 Income before income taxes $ 78,690 $10,126 $ 6,942 $ 95,758 =========== ======= ======== ========== - more -
Add Thirteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES CANADIAN OPERATIONS (Dollars in thousands) Three Months Ended (Unaudited) June 30, - --------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $ 97,120 $ 76,854 Investment income, net of related expenses 25,998 22,372 Investment related gains, net 2,345 1,667 Other revenues 767 19 ------- -------- Total revenues 126,230 100,912 Benefits and expenses: Claims and other policy benefits 95,449 74,252 Interest credited 207 252 Policy acquisition costs and other insurance expenses 15,769 11,992 Other operating expenses 3,731 3,619 -------- -------- Total benefits and expenses 115,156 90,115 Income before income taxes $ 11,074 $ 10,797 ======== ======== Six Months Ended (Unaudited) June 30, - --------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $191,522 $150,610 Investment income, net of related expenses 51,303 44,909 Realized investment gains, net 2,146 2,302 Other revenues 767 53 -------- -------- Total revenues 245,738 197,874 Benefits and expenses: Claims and other policy benefits 184,528 142,897 Interest credited 412 609 Policy acquisition costs and other insurance expenses 33,589 20,830 Other operating expenses 7,704 7,079 -------- -------- Total benefits and expenses 226,233 171,415 Income before income taxes $ 19,505 $ 26,459 ======== ======== - more -
Add Fourteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Europe & South Africa (Dollars in thousands) Three Months Ended (Unaudited) June 30, - --------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $146,073 $132,972 Investment income, net of related expenses 3,873 2,502 Investment related losses, net (181) (180) Other revenues (178) 69 -------- --------- Total revenues 149,587 135,363 Benefits and expenses: Claims and other policy benefits 101,034 112,117 Interest credited 156 190 Policy acquisition costs and other insurance expenses 21,821 22,782 Other operating expenses 9,307 7,118 -------- -------- Total benefits and expenses 132,318 142,207 Income before income taxes $ 17,269 $ (6,844) ======== ======== Six Months Ended (Unaudited) June 30, - --------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $291,224 $274,330 Investment income, net of related expenses 7,265 5,030 Realized investment losses, net (147) (166) Other revenues (87) 170 -------- -------- Total revenues 298,255 279,364 Benefits and expenses: Claims and other policy benefits 206,680 208,449 Interest credited 346 553 Policy acquisition costs and other insurance expenses 41,078 49,915 Other operating expenses 18,085 12,778 -------- -------- Total benefits and expenses 266,189 271,695 Income before income taxes $ 32,066 $ 7,669 ======== ======== - more -
Add Fifteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Asia Pacific (Dollars in thousands) Three Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $168,852 $145,018 Investment income, net of related expenses 6,822 5,269 Investment related gains/(losses), net (92) 101 Other revenues 1,581 2,135 -------- -------- Total revenues 177,163 152,523 Benefits and expenses: Claims and other policy benefits 131,866 110,617 Policy acquisition costs and other insurance expenses 27,567 23,371 Other operating expenses 10,005 7,159 -------- -------- Total benefits and expenses 169,438 141,147 Income before income taxes $ 7,725 $ 11,376 ======== ======== Six Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $308,065 $263,226 Investment income, net of related expenses 13,318 10,009 Realized investment gains/(losses), net (77) 54 Other revenues 3,491 1,948 -------- -------- Total revenues 324,797 275,237 Benefits and expenses: Claims and other policy benefits 242,222 201,277 Policy acquisition costs and other insurance expenses 49,572 47,841 Other operating expenses 18,664 11,833 -------- -------- Total benefits and expenses 310,458 260,951 Income before income taxes $ 14,339 $ 14,286 ======== ======== - more -
Add Sixteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES CORPORATE AND OTHER (Dollars in thousands) Three Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $ 652 $ 698 Investment income, net of related expenses 8,983 8,836 Investment related gains/(losses), net (2,369) 15,882 Other revenues (97) 8,489 -------- -------- Total revenues 7,169 33,905 Benefits and expenses: Claims and other policy benefits (185) 28,992 Interest credited 643 140 Policy acquisition costs and other insurance expenses (10,551) (2,657) Other operating expenses 11,540 7,517 Collateral finance facilities expense 277 -- Interest expense 15,014 9,895 -------- -------- Total benefits and expenses 16,738 43,887 Income before income taxes $ (9,569) $ (9,982) ======== ======== Six Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2006 2005 ---- ---- Revenues: Net premiums $ 1,017 $ 1,178 Investment income, net of related expenses 18,795 16,035 Realized investment gains, net 2,975 16,776 Other revenues 2,117 11,093 -------- -------- Total revenues 24,904 45,082 Benefits and expenses: Claims and other policy benefits (1,031) 29,828 Interest credited 753 215 Policy acquisition costs and other insurance expenses (18,730) (8,408) Other operating expenses 23,401 14,695 Collateral finance facilities expense 277 -- Interest expense 31,781 19,780 -------- -------- Total benefits and expenses 36,451 56,110 Income before income taxes $(11,547) $(11,028) ======== ======== # # #