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 23, 2007 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 23, 2007, Reinsurance Group of America, Incorporated issued a press release announcing its earnings for the three-month period ended June 30, 2007 and providing certain additional information. The press release also notes that a conference call will be held on July 24, 2007 to discuss the financial and operating results for the three-month period ended June 30, 2007. 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 23, 2007 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 23, 2007 By: /s/ Jack B. Lay ------------------------------------- Jack B. Lay Senior Executive Vice President and Chief Financial Officer
EXHIBIT INDEX Exhibit No. Exhibit ----------- ------- 99.1 Press Release of Reinsurance Group of America, Incorporated dated July 23, 2007.
Exhibit 99.1 [RGA(R) LOGO] REINSURANCE GROUP OF AMERICA, INCORPORATED(R) For further information, contact Jack B. Lay Senior Executive Vice President and Chief Financial Officer (636) 736-7000 FOR IMMEDIATE RELEASE - --------------------- REINSURANCE GROUP OF AMERICA REPORTS SECOND-QUARTER RESULTS ----------------------------------------------------------- ST. LOUIS, July 23, 2007 - Reinsurance Group of America, Incorporated (NYSE:RGA), a leading global provider of life reinsurance, reported net income for the second quarter of $77.5 million, or $1.20 per diluted share, compared to $63.6 million, or $1.01 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 22 percent to $84.6 million, or $1.31 per diluted share, from $69.1 million, or $1.10 per diluted share in the year-ago quarter. On a per share basis, operating income increased 19 percent. Second-quarter net premiums rose 12 percent, to $1,207.6 million, from $1,076.6 million a year ago. Net investment income totaled $274.9 million versus $168.6 million the year before. For the first half of 2007, net income totaled $153.7 million or $2.39 per diluted share, compared to $132.7 million, or $2.12 per diluted share, in the year-ago period. Operating income totaled $166.7 million, or $2.60 per diluted share, compared to $137.5 million, or $2.19 per diluted share in the prior-year period, a 19 percent increase on a per share basis. Consolidated premiums were up 13 percent, to $2,333.1 million from $2,069.0 million. A. Greig Woodring, president and chief executive officer, commented, "We reported solid results, with notably strong results in Canada and Asia Pacific more than offsetting somewhat higher claim levels in the UK. The U.S. segment reported pre-tax net income totaling $86.2 million for the quarter versus $70.9 million the year before. Pre-tax operating income increased 19 percent to $93.3 million from $78.5 million the year before. Net premiums were up 9 percent to $720.4 million from $663.9 million in the prior-year quarter. - more -
Add One "Our Canada operations reported a strong quarter with pre-tax net income of $24.2 million compared to $11.1 million a year ago. Pre-tax operating income totaled $22.6 million, up substantially from $8.9 million a year ago, when claims were higher-than-expected. Mortality experience during the current quarter was favorable. Net premiums increased 26 percent to $122.6 million from $97.1 million in the prior year. On a year-to-date basis, premiums are up 16 percent. Net premiums for the second quarter of 2007 were favorably affected by currency exchange rates relative to the prior year by approximately $2.7 million, as the Canadian dollar strengthened slightly. The impact of foreign currency fluctuations on operating income was not significant. "Asia Pacific reported pre-tax net income of $15.6 million compared with $7.7 million in the year-ago quarter. Pre-tax operating income totaled $16.1 million compared with $7.8 million a year ago. Segment-wide claims experience was slightly favorable, while the year-ago quarter reflected poor mortality in our South Korean operations. Net premium flow was good, increasing 18 percent to $199.0 million from $168.9 million. Foreign currency fluctuations favorably affected net premiums by approximately $8.5 million, primarily due to the strength of the Australian dollar. The impact of foreign currency fluctuations on operating income was not significant. "Europe and South Africa results were off slightly due primarily to high claim levels in the UK, with pre-tax net income of $11.8 million compared to $17.3 million a year ago. Pre-tax operating income totaled $12.5 million versus $17.4 million last year, a period in which we experienced favorable mortality. Net premiums increased 13 percent to $164.8 million. Foreign currency exchange fluctuations favorably affected reported net premiums by approximately $10.0 million due to relatively strong British pound and euro currencies. The impact of foreign currency fluctuations on operating income was not significant." Woodring concluded, "We are pleased with the results for the quarter and the first half of the year. Each of our operations has good momentum going into the second half of the year. We continue to see substantial growth opportunities internationally, both near-term and longer-term, and have recently established representative offices in Germany, France and Poland as we look to expand our European presence. We believe we are well-positioned to take advantage of opportunities across the globe in all the key life insurance markets." The company also announced that its board of directors declared a regular quarterly dividend of $0.09, payable August 24 to shareholders of record as of August 3. - more -
Add Two A conference call to discuss the company's second-quarter results will begin at 9 a.m. Eastern Time on Tuesday, July 24. Interested parties may access the call by dialing 800-210-9006 (domestic) or 719-457-2621 (international). The access code is 8600471. 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 1 at 888-203-1112 (domestic) or 719-457-0820, access code 8600471. Reinsurance Group of America, Incorporated, through its various operating subsidiaries, is among the largest global providers of life reinsurance. Reinsurance Group of America, Incorporated has subsidiary companies or offices in Australia, Barbados, Bermuda, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, Poland, South Africa, South Korea, Spain, Taiwan, the United Kingdom and the United States. Worldwide, the company has approximately $2.1 trillion of life reinsurance in force, and assets of $20.3 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, lapsation 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 an insurance 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 investment related gains and losses, as well as changes in the fair value of embedded derivatives and related deferred acquisition costs. These items tend to be highly variable, primarily due to the credit market and interest rate environment and are not necessarily indicative of the performance of the company's underlying businesses. Additionally, operating income excludes any net gain or loss from discontinued operations and the cumulative effect of any accounting changes, which management believes are not indicative of the company's ongoing operations. The definition of operating income can vary by company and is not considered a substitute for GAAP net income. REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Reconciliation of Net Income From Continuing Operations to Operating Income (Dollars in thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, -------------------------------------- 2007 2006 2007 2006 ---- ---- ---- ---- GAAP net income-continuing operations $ 79,037 $ 63,789 $155,973 $134,369 Investment related losses, net 4,666 3,643 10,321 3,082 Change in value of embedded derivatives 4,632 7,198 2,787 4,239 DAC offset for embedded derivatives and investment related gains, net (3,717) (5,563) (2,379) (4,169) ---------------------------------------- Operating income $ 84,618 $ 69,067 $166,702 $137,521 - 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, 2007 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 $ 79,098 $ 4,497 $ -- $ 83,595 Asset Intensive 4,111 971(1) 1,581(2) 6,663 Financial Reinsurance 3,006 7 -- 3,013 ---------------------------------------------- Total U.S. 86,215 5,475 1,581 93,271 Canada Operations 24,202 (1,642) -- 22,560 Europe & South Africa 11,846 630 -- 12,476 Asia Pacific Operations 15,609 499 -- 16,108 Corporate and Other (14,159) 1,963 -- (12,196) ---------------------------------------------- Consolidated $123,713 $ 6,925 $ 1,581 $132,219 ==============================================
(1) Asset Intensive is net of $(173)DAC offset. (2) Asset Intensive is net of DAC offsets of $(5,545) included in change in deferred acquisition cost associated with change in value of embedded derivative. (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 Europe & South Africa 17,269 181 -- 17,450 Asia Pacific Operations 7,725 92 -- 7,817 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. - 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, 2007 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 $165,109 $ 4,835 $ -- $169,944 Asset Intensive 8,573 1,705(1) 850(2) 11,128 Financial Reinsurance 5,710 7 -- 5,717 --------------------------------------------- Total U.S. 179,392 6,547 850 186,789 Canada Operations 39,236 (4,168) -- 35,068 Europe & South Africa 32,970 854 -- 33,824 Asia Pacific Operations 25,941 570 -- 26,511 Corporate & Other (34,596) 11,815 -- (22,781) --------------------------------------------- Consolidated $242,943 $ 15,618 $ 850 $259,411 =============================================
(1) Asset Intensive is net of $(222)DAC offset. (2) Asset Intensive is net of DAC offsets of $(3,438) included in change in deferred acquisition cost associated with change in value of embedded derivative. (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 Europe & South Africa 32,066 147 -- 32,213 Asia Pacific Operations 14,339 77 -- 14,416 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. - 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, - --------------------------------------------------------------------------- 2007 2006 2007 2006 ---- ---- ---- ---- Revenues: Net premiums $1,207,646 $1,076,603 $2,333,096 $2,069,045 Investment income, net of related expenses 274,902 168,605 490,645 355,546 Investment related losses, net (7,092) (5,314) (15,576) (4,682) Change in value of embedded derivatives (7,126) (11,075) (4,288) (6,523) Other revenues 20,446 13,717 39,548 28,247 ---------------------- ---------------------- Total revenues 1,488,776 1,242,536 2,843,425 2,441,633 Benefits and expenses: Claims and other policy benefits 980,338 874,531 1,883,148 1,686,044 Interest credited 113,652 44,732 174,718 106,261 Policy acquisition costs and other insurance expenses 183,561 172,700 364,435 324,504 Change in deferred acquisition cost associated with change in value of embedded derivatives (5,545) (7,982) (3,438) (5,225) Other operating expenses 56,619 45,830 112,041 92,357 Interest expense 23,232 15,014 43,685 31,781 Collateral finance facilities expense 13,206 277 25,893 277 ---------------------- ---------------------- Total benefits and expenses 1,365,063 1,145,102 2,600,482 2,235,999 ---------------------- ---------------------- Income from continuing operations before income taxes 123,713 97,434 242,943 205,634 Provision for income taxes 44,676 33,645 86,969 71,265 ---------------------- ---------------------- Income from continuing operations 79,037 63,789 155,974 134,369 Discontinued operations: Loss from discontinued accident and health operations, net of income taxes (1,562) (158) (2,247) (1,668) ---------------------- ---------------------- Net income $77,475 $63,631 $ 153,727 $ 132,701 ====================== ====================== - 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, - ------------------------------------------------------------------- 2007 2006 2007 2006 ---- ---- ---- ---- Earnings per share from continuing operations: Basic earnings per share $ 1.28 $ 1.04 $ 2.53 $ 2.20 Diluted earnings per share $ 1.22 $ 1.02 $ 2.43 $ 2.14 Diluted earnings before investment related gains/ (losses), change in value of embedded derivatives, and related deferred acquisition costs $ 1.31 $ 1.10 $ 2.60 $ 2.19 Earnings per share from net income: Basic earnings per share $ 1.25 $ 1.04 $ 2.49 $ 2.17 Diluted earnings per share $ 1.20 $ 1.01 $ 2.39 $ 2.12 Weighted average number of common and common equivalent shares outstanding 64,541 62,709 64,219 62,663 - more -
Add Ten REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Condensed Consolidated Business Summary At or For the Six Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2007 2006 ---- ---- Gross life reinsurance in force (in billions) U.S. $1,202.8 $1,121.7 Canada $ 187.6 $ 148.2 Europe & South Africa $ 361.8 $ 347.2 Asia Pacific $ 329.1 $ 247.3 Gross life reinsurance written (in billions) U.S. $ 84.4 $ 89.7 Canada $ 21.8 $ 19.1 Europe & South Africa $ 30.8 $ 67.9 Asia Pacific $ 6.5 $ 6.8 Balance sheet information (in millions, except share and per share figures) Consolidated cash and invested assets $15,911.8 $13,713.6 Invested asset book yield - trailing three months excluding funds withheld 5.90% 5.72% Investment portfolio mix Cash and short-term investments 3.73% 2.23% Fixed maturity securities 54.78% 50.68% Mortgage loans 5.04% 4.74% Policy loans 6.40% 7.16% Funds withheld at interest 28.27% 27.48% Other invested assets 1.78% 7.71% Collateral finance facilities $ 850.3 $ 850.3 Short-term debt $ 30.1 $ 27.7 Long-term debt $ 908.7 $ 674.5 Company-obligated mandatorily redeemable preferred securities of subsidiary $ 158.8 $ 158.6 Total stockholders' equity $2,894.6 $2,466.0 Less: Accumulated other comprehensive income "AOCI"* 374.5 248.8 -------- -------- Total stockholders' equity, before impact of AOCI* $2,520.1 $2,217.2 Treasury shares 1,135,134 1,940,109 Common shares outstanding 61,993,139 61,188,164 Book value per share outstanding $ 46.69 $ 40.30 Book value per share outstanding, before impact of AOCI* $ 40.65 $ 36.24
* Book value per share outstanding and total stockholders' equity, before impact of AOCI, are non-GAAP financial measures that management believes are important in evaluating the balance sheet in order to ignore the effects of unrealized amounts primarily associated with mark-to-market adjustments on investments and foreign currency translation. - more -
Add Eleven REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. Operations (Unaudited) (Dollars in thousands) Three Months Ended June 30, 2007 Asset- Financial Total Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Revenues: Net premiums $ 718,753 $ 1,598 $ -- $720,351 Investment income, net of related expenses 87,151 117,319 99 204,569 Investment related losses, net (4,497) (1,144) (7) (5,648) Change in value of embedded derivatives -- (7,126) -- (7,126) Other revenues 300 9,690 5,846 15,836 -------------------------------------------- Total revenues 801,707 120,337 5,938 927,982 Benefits and expenses: Claims and other policy benefits 594,619 (553) -- 594,066 Interest credited 14,579 98,324 -- 112,903 Policy acquisition costs and other insurance expenses 101,807 22,295 2,001 126,103 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- (5,545) -- (5,545) Other operating expenses 11,604 1,705 931 14,240 -------------------------------------------- Total benefits and expenses 722,609 116,226 2,932 841,767 Income before income taxes $ 79,098 $ 4,111 $ 3,006 $ 86,215 ========== ========= ======== ======== (Unaudited) Three Months Ended June 30, 2006 Asset- Financial Total Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Revenues: 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 ========== ========= ======== ======== - more -
Add Twelve REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES U.S. Operations (Dollars in thousands) (Unaudited) Six Months Ended June 30, 2007 Asset- Financial Total Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Revenues: Net premiums $ 1,388,172 $ 3,224 $ -- $1,391,396 Investment income, net of related expenses 172,079 185,271 119 357,469 Investment related losses, net (4,835) (1,927) (7) (6,769) Change in value of embedded derivatives -- (4,288) -- (4,288) Other revenues 406 17,114 11,735 29,255 ----------------------------------------------- Total revenues 1,555,822 199,394 11,847 1,767,063 Benefits and expenses: Claims and other policy benefits 1,137,205 3,970 1 1,141,176 Interest credited 28,849 144,482 -- 173,331 Policy acquisition costs and other insurance expenses 201,187 42,481 4,195 247,863 Change in deferred ac- quisition cost associated with change in value of embedded derivatives -- (3,438) -- (3,438) Other operating expenses 23,472 3,326 1,941 28,739 ----------------------------------------------- Total benefits and expenses 1,390,713 190,821 6,137 1,587,671 Income before income taxes $ 165,109 $ 8,573 $ 5,710 $ 179,392 =========== ========= ======== ========== (Unaudited) Six Months Ended June 30, 2006 Asset- Financial Total Traditional Intensive Reinsurance U.S. ----------- --------- ----------- ------ Revenues: Net premiums $ 1,274,138 $ 3,079 $ -- $1,277,217 Investment income, net of related expenses 145,699 119,321 (155) 264,865 Investment related 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 =========== ========= ======== ========== - more -
Add Thirteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Canada Operations (Dollars in thousands) Three Months Ended (Unaudited) June 30, - --------------------------------------------------------------------- 2007 2006 ---- ---- Revenues: Net premiums $122,580 $ 97,120 Investment income, net of related expenses 32,363 25,998 Investment related gains, net 1,648 2,345 Other revenues 93 767 -------- -------- Total revenues 156,684 126,230 Benefits and expenses: Claims and other policy benefits 105,667 95,449 Interest credited 185 207 Policy acquisition costs and other insurance expenses 21,343 15,769 Other operating expenses 5,287 3,731 -------- -------- Total benefits and expenses 132,482 115,156 Income before income taxes $ 24,202 $ 11,074 ======== ======== Six Months Ended (Unaudited) June 30, - --------------------------------------------------------------------- 2007 2006 ---- ---- Revenues: Net premiums $222,072 $191,522 Investment income, net of related expenses 58,795 51,303 Investment related gains, net 4,432 2,146 Other revenues 179 767 -------- -------- Total revenues 285,478 245,738 Benefits and expenses: Claims and other policy benefits 196,815 184,528 Interest credited 371 412 Policy acquisition costs and other insurance expenses 39,819 33,589 Other operating expenses 9,237 7,704 -------- -------- Total benefits and expenses 246,242 226,233 Income before income taxes $ 39,236 $ 19,505 ======== ======== - more -
Add Fourteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Europe & South Africa (Dollars in thousands) Three Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2007 2006 ---- ---- Revenues: Net premiums $164,796 $146,073 Investment income, net of related expenses 7,103 3,873 Investment related losses, net (630) (181) Other revenues (27) (178) -------- -------- Total revenues 171,242 149,587 Benefits and expenses: Claims and other policy benefits 128,828 101,034 Interest credited 564 156 Policy acquisition costs and other insurance expenses 17,129 21,821 Other operating expenses 12,875 9,307 -------- -------- Total benefits and expenses 159,396 132,318 Income before income taxes $ 11,846 $ 17,269 ======== ======== Six Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2007 2006 ---- ---- Revenues: Net premiums $332,592 $291,224 Investment income, net of related expenses 12,877 7,265 Investment related losses, net (854) (147) Other revenues 104 (87) --------- -------- Total revenues 344,719 298,255 Benefits and expenses: Claims and other policy benefits 242,982 206,680 Interest credited 1,016 346 Policy acquisition costs and other insurance expenses 43,189 41,078 Other operating expenses 24,562 18,085 -------- -------- Total benefits and expenses 311,749 266,189 Income before income taxes $ 32,970 $ 32,066 ======== ======== - more -
Add Fifteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Asia Pacific (Dollars in thousands) Three Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2007 2006 ---- ---- Revenues: Net premiums $198,971 $168,852 Investment income, net of related expenses 8,610 6,822 Investment related losses, net (499) (92) Other revenues 2,583 1,581 -------- -------- Total revenues 209,665 177,163 Benefits and expenses: Claims and other policy benefits 151,664 131,866 Policy acquisition costs and other insurance expenses 28,173 27,567 Other operating expenses 14,219 10,005 -------- -------- Total benefits and expenses 194,056 169,438 Income before income taxes $ 15,609 $ 7,725 ======== ======== Six Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2007 2006 ---- ---- Revenues: Net premiums $385,809 $308,065 Investment income, net of related expenses 17,273 13,318 Investment related losses, net (570) (77) Other revenues 4,410 3,491 --------- -------- Total revenues 406,922 324,797 Benefits and expenses: Claims and other policy benefits 302,147 242,222 Policy acquisition costs and other insurance expenses 52,787 49,572 Other operating expenses 26,047 18,664 -------- -------- Total benefits and expenses 380,981 310,458 Income before income taxes $ 25,941 $ 14,339 ======== ======== - more -
Add Sixteen REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES Corporate and Other (Dollars in thousands) Three Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2007 2006 ---- ---- Revenues: Net premiums $ 948 $ 652 Investment income, net of related expenses 22,257 8,983 Investment related losses, net (1,963) (2,369) Other revenues 1,961 (97) -------- -------- Total revenues 23,203 7,169 Benefits and expenses: Claims and other policy benefits 113 (185) Interest credited -- 643 Policy acquisition costs and other insurance expenses (9,187) (10,551) Other operating expenses 9,998 11,540 Interest expense 23,232 15,014 Collateral finance facilities expense 13,206 277 -------- -------- Total benefits and expenses 37,362 16,738 Income before income taxes $(14,159) $ (9,569) ======== ======== Six Months Ended (Unaudited) June 30, - -------------------------------------------------------------------- 2007 2006 ---- ---- Revenues: Net premiums $ 1,227 $ 1,017 Investment income, net of related expenses 44,231 18,795 Investment related gains/(losses), net (11,815) 2,975 Other revenues 5,600 2,117 -------- -------- Total revenues 39,243 24,904 Benefits and expenses: Claims and other policy benefits 28 (1,031) Interest credited -- 753 Policy acquisition costs and other insurance expenses (19,223) (18,730) Other operating expenses 23,456 23,401 Interest expense 43,685 31,781 Collateral finance facilities expense 25,893 277 -------- -------- Total benefits and expenses 73,839 36,451 Income before income taxes $(34,596) $(11,547) ======== ======== # # #