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 FOURTH-QUARTER RESULTS;
------------------------------------------------------------
PROVIDES EARNINGS GUIDANCE FOR 2006
-----------------------------------
ST. LOUIS, January 30, 2006 - Reinsurance Group of America,
Incorporated (NYSE:RGA), a leading global provider of life reinsurance,
reported net income for the fourth quarter of $68.2 million, or $1.07 per
diluted share, compared to $55.4 million, or $0.87 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 32 percent to $73.1 million, or
$1.15 per share, from $55.5 million, $0.87 per diluted share in the year-ago
quarter.
Fourth-quarter net premiums rose 16 percent to $1,060.1 million
from $916.8 million a year ago. Net investment income totaled $169.4 million
versus $168.2 million the year before. Approximately $12.0 million of the
prior-period amount was due to the conversion of a large annuity treaty
from a funds-withheld structure to a coinsurance structure.
A. Greig Woodring, president and chief executive officer,
commented, "Each of our operating segments contributed to a strong fourth
quarter. The U.S. segment reported good results with pre-tax net income
totaling $84.4 million for the quarter versus $71.8 million in the
prior-year quarter. Pre-tax operating income totaled $90.1 million for the
quarter compared to $77.5 million in the prior-year quarter, a 16 percent
increase. Mortality experience for the quarter was within our range of
expectations. For the year, the U.S. reported more than $2.4 billion in net
premiums, a 10 percent increase over the prior year. Pre-tax operating
income for the year totaled $271.8 million, down 6 percent from $289.5
million in 2004, due primarily to the adverse claims experience during the
second quarter of 2005.
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"For the quarter, our Canada operations reported pre-tax net income
of $21.4 million compared to $20.5 million a year ago. Pre-tax operating
income was up 21 percent to $20.8 million from $17.2 million. Mortality
experience continues to be good. Net premiums increased $30.8 million, or 42
percent for the quarter, and totaled $103.4 million. Approximately $3.7
million of the increase in net premiums and approximately $1.0 million of
the increase in pre-tax operating income were the result of a favorable
currency exchange rate. For the year, pre-tax operating income totaled $83.2
million, up 34 percent from $62.0 million in 2004. Foreign currency
fluctuations contributed approximately $5.6 million, pretax, to the 2005
results.
"Other International operations, which include our Asia Pacific and
Europe and South Africa segments, reported a strong quarter. Asia Pacific
reported pre-tax net income of $17.8 million compared with pre-tax net
income of $2.5 million in the year-ago quarter. Pre-tax operating income
increased to $18.2 million from $2.3 million. The current quarter reflected
favorable mortality experience, while the prior-year period reflected poor
mortality experience, including the effect of tsunami related reserves. Net
premiums increased 26 percent to $136.4 million from $108.0 million. Foreign
currency fluctuations adversely affected net premiums and pre-tax operating
income by approximately $2.7 million and $0.3 million, respectively.
"Results in Europe and South Africa were also good, driven by
favorable mortality in the UK. Pre-tax net income totaled $11.9 million
compared to $4.0 million a year ago. Pre-tax operating income increased to
$11.8 million from $3.6 million. The prior-period results reflected adverse
mortality experience in the UK. Net premiums increased 12 percent for the
quarter to $141.2 million. This rate of increase has lessened relative to
previous years due to a slowdown in the UK primary market. Foreign currency
fluctuations, primarily the British pound, adversely affected net premiums
and pre-tax operating income by approximately $9.7 million and $1.2 million,
respectively.
"For the year, our international operations contributed $75.6
million in pre-tax operating earnings, or approximately 22 percent of the
consolidated total. While these results are inherently volatile on a
quarterly basis, we have been pleased with the cumulative performance of the
international operations when measured over the last several years. As the
operations mature and grow, we expect the volatility to decrease.
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"The Corporate and Other segment reported a pre-tax net operating
loss of $26.0 million. That amount includes the impact of approximately $7.0
million, pretax, or $0.07 per share on an after-tax basis, in costs
associated with commuting the majority of our remaining Argentine pension
business. We negotiated the commutation of the two most significant
treaties, and have now commuted over 95 percent of our obligations. The
residual business is insignificant."
For the year, consolidated net income totaled $224.2 million, or
$3.52 per diluted share, compared to $221.9 million, or $3.52 per diluted
share, in the year-ago period. Operating income totaled $225.5 million, or
$3.54 per diluted share, compared to $224.6 million, or $3.57 per diluted
share the year before. Operating income in 2005 benefited from net stronger
foreign currencies by approximately $3.4 million, after tax, or
approximately $0.05 per diluted share. Consolidated net premiums were up 16
percent, to $3,866.8 million from $3,347.4 million.
Woodring concluded, "It was a strong quarter, but we did not meet
our full-year 2005 earnings expectation due primarily to the adverse claims
experience in the U.S. during the second quarter and the negotiation of
final settlements for the Argentine pension business. However, we did recoup
some of that poor experience in the second half of the year and head into
2006 with good momentum. We expect continued growth in 2006; however, the
pace of growth in our North American operations and select international
markets, such as the UK, is expected to moderate. On a consolidated basis
for 2006, we expect operating earnings per diluted share to be within a
range of $4.00 to $4.50 and consolidated net premium growth of 10 percent to
15 percent."
The company also announced that its board of directors declared a
regular quarterly dividend of $0.09, payable February 27 to shareholders of
record as of February 6. Additionally, Lisa M. Weber, a MetLife executive,
resigned from the board of directors, and the board elected Georgette A.
Piligian, senior vice president & chief information officer, corporate
systems, MetLife, to fill the vacancy.
A conference call to discuss the company's fourth-quarter results
will begin at 9 a.m. Eastern Time on Tuesday, January 31. Interested parties
may access the call by dialing 800-210-9006 (domestic) or 719-457-2621
(international). The access code is 4180935. 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 February 7
at 888-203-1112 (domestic) or 719-457-0820, access code 4180935.
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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
$1.7 trillion of life reinsurance in force, and assets of $16.2 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
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
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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.
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.
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Operating Income
RGA uses a non-GAAP financial measure called operating income as a basis for
analyzing financial results. This measure also serves as a basis for
establishing target levels and awards under RGA's management incentive
programs. Management believes that operating income, on a pre-tax and
after-tax basis, better measures the ongoing profitability and underlying
trends of the company's continuing operations, primarily because that
measure excludes the effect of net investment related gains and losses, as
well as changes in the fair value of embedded derivatives and related
deferred acquisition costs. These items tend to be highly variable,
primarily due to the credit market and interest rate environment and are not
necessarily indicative of the performance of the company's underlying
businesses. Additionally, operating income excludes any net gain or loss
from discontinued operations and the cumulative effect of any accounting
changes, which management believes are not indicative of the company's
ongoing operations. The definition of operating income can vary by company
and is not considered a substitute for GAAP net income.
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Reconciliation of Net Income From Continuing Operations
to Operating Income
(Dollars in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------------------------
2005 2004 2005 2004
---- ---- ---- ----
GAAP net income-continuing
operations $69,665 $55,917 $235,608 $245,300
Investment related
(gains)/losses 3,942 (36) (12,798) (22,044)
Change in value of embedded
derivatives (822) 146 (4,839) (104)
DAC offset for embedded
derivatives and investment
related (gains)/losses, net 341 (509) 7,503 1,472
-------------------------------------------
Operating income $73,126 $55,518 $225,474 $224,624
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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 December 31, 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 $ 74,729 $3,293 $ -- $ 78,022
Asset Intensive 5,019 2,653(1) (254)(2) 7,418
Financial Reinsurance 4,675 -- -- 4,675
-------------------------------------------------
Total U.S. 84,423 5,946 (254) 90,115
Canada Operations 21,421 (641) -- 20,780
Asia Pacific Operations 17,815 414 -- 18,229
Europe & South Africa 11,882 (100) -- 11,782
-------------------------------------------------
Other Intl Operations 29,697 314 -- 30,011
Corporate & Other (25,901) (53) -- (25,954)
-------------------------------------------------
Consolidated $109,640 $5,566 $(254) $114,952
=================================================
<FN>
(1) Asset Intensive is net of $ (485)DAC offset.
(2) Asset Intensive is net of DAC offsets of $1,010 included in change in
deferred acquisition cost associated with change in value of embedded
derivative.
Three Months Ended December 31, 2004
Pre-tax Investment Change in Pre-tax
net related value of operating
income (gains)/ embedded income
(loss) losses, net derivative (loss)
-------- ----------- ---------- ---------
U.S. Operations:
Traditional $ 63,927 $ 642 $ -- $ 64,569
Asset Intensive 4,599 6,972(1) (1,979)(2) 9,592
Financial Reinsurance 3,310 -- -- 3,310
-----------------------------------------------
Total U.S. 71,836 7,614 (1,979) 77,471
Canada Operations 20,519 (3,349) -- 17,170
Asia Pacific Operations 2,520 (228) -- 2,292
Europe & South Africa 4,016 (437) -- 3,579
-----------------------------------------------
Other Intl Operations 6,536 (665) -- 5,871
Corporate & Other (19,012) 117 -- (18,895)
-----------------------------------------------
Consolidated $ 79,879 $ 3,717 $(1,979) $ 81,617
===============================================
<FN>
(1) Asset Intensive is net of $1,419 DAC offset.
(2) Asset Intensive is net of DAC offsets of $18,612 included in change in
deferred acquisition cost associated with change in value of embedded
derivative, ($20,782)DAC offset included in policy acquisition costs
and other insurance expenses, and $25,911 investment income offset.
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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)
Twelve Months Ended December 31, 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 $231,018 $ 2,152 $ -- $233,170
Asset Intensive 23,337 959(1) (472)(2) 23,824
Financial Reinsurance 14,806 -- -- 14,806
-------------------------------------------------
Total U.S. 269,161 3,111 (472) 271,800
Canada Operations 87,978 (4,809) -- 83,169
Asia Pacific Operations 40,366 294 -- 40,660
Europe & South Africa 35,375 (427) -- 34,948
-------------------------------------------------
Other Intl Operations 75,741 (133) -- 75,608
Corporate & Other (76,534) (8,697)(3) -- (85,231)
-------------------------------------------------
Consolidated $356,346 $(10,528) $(472) $345,346
=================================================
<FN>
(1) Asset Intensive is net of $(118) DAC offset.
(2) Asset Intensive is net of DAC offsets of $6,972 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.
Twelve Months Ended December 31, 2004
Pre-tax Investment Change in Pre-tax
net related value of operating
income (gains)/ embedded income
(loss) losses, net derivative (loss)
-------- ----------- ---------- ---------
U.S. Operations:
Traditional $260,067 $ (9,738) $ -- $250,329
Asset Intensive 17,254 7,346 (1) 1,954(2) 26,554
Financial Reinsurance 12,603 -- -- 12,603
-------------------------------------------------
Total U.S. 289,924 (2,392) 1,954 289,486
Canada Operations 73,485 (11,508) -- 61,977
Asia Pacific Operations 12,605 (670) -- 11,935
Europe & South Africa 31,682 (5,080) -- 26,602
-------------------------------------------------
Other Intl Operations 44,287 (5,750) -- 38,537
Corporate & Other (38,503) (9,673) -- (48,176)
-------------------------------------------------
Consolidated $369,193 $(29,323) $ 1,954 $341,824
=================================================
<FN>
(1) Asset Intensive is net of $150 DAC offset.
(2) Asset Intensive is net of DAC offsets of $22,896 included in change in
deferred acquisition cost associated with change in value of embedded
derivative, ($20,782) DAC offset included in policy acquisition costs
and other insurance expenses, and $25,944 investment income offset.
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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Dollars in thousands)
Three Months Ended Twelve Months Ended
(Unaudited) December 31, December 31,
- -------------------------------------------------------------------------------
2005 2004 2005 2004
---- ---- ---- ----
Revenues:
Net premiums $1,060,069 $ 916,812 $3,866,775 $3,347,448
Investment income, net
of related expenses 169,372 168,201 639,165 580,528
Investment related
gains/(losses), net (5,998) (2,298) 13,590 29,473
Change in value of
embedded derivatives 1,264 25,720 7,444 26,104
Other revenues 14,093 15,383 57,791 55,366
------------------------ -----------------------
Total revenues 1,238,800 1,123,818 4,584,765 4,038,919
Benefits and expenses:
Claims and other
policy benefits 847,583 755,063 3,187,902 2,678,537
Interest credited 54,789 60,245 208,376 198,931
Policy acquisition
costs and other
insurance expenses 168,830 165,714 629,359 591,029
Change in deferred
acquisition cost
associated with
change in value of
embedded derivatives 1,010 18,612 6,972 22,896
Other operating expenses 45,352 34,603 154,382 139,896
Interest expense 11,596 9,702 41,428 38,437
------------------------ -----------------------
Total benefits
and expenses 1,129,160 1,043,939 4,228,419 3,669,726
------------------------ -----------------------
Income from continuing
operations before
income taxes 109,640 79,879 356,346 369,193
Provision for income
taxes 39,975 23,962 120,738 123,893
------------------------ -----------------------
Income from continuing
operations 69,665 55,917 235,608 245,300
Discontinued operations:
Loss from discontinued
accident and health
operations, net of
income taxes (1,488) (497) (11,428) (23,048)
Cumulative effect of
change in accounting
principle -- -- -- (361)
------------------------ ------------------------
Net income $ 68,177 $ 55,420 $ 224,180 $ 221,891
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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
(Unaudited) December 31, December 31,
- -----------------------------------------------------------------------
2005 2004 2005 2004
---- ---- ---- ----
Earnings per share from
continuing operations:
Basic earnings per share $ 1.12 $ 0.90 $ 3.77 $ 3.94
Diluted earnings per share $ 1.09 $ 0.88 $ 3.70 $ 3.90
Diluted earnings before
Investment related gains/
(losses), change in value
of embedded derivatives,
and related deferred
acquisition costs $ 1.15 $ 0.87 $ 3.54 $ 3.57
Earnings per share from
net income:
Basic earnings per share $ 1.09 $ 0.89 $ 3.58 $ 3.56
Diluted earnings per share $ 1.07 $ 0.87 $ 3.52 $ 3.52
Weighted average number of
common and common equivalent
shares outstanding
(in thousands) 63,653 63,632 63,724 62,964
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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Condensed Consolidated Business Summary
At or For the
Twelve Months Ended
(Unaudited) December 31,
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2005 2004
---- ----
Gross life reinsurance in force (in billions)
North American business $ 1,211.1 $ 1,095.7
International business $ 525.5 $ 363.2
Gross life reinsurance written (in billions)
North American business $ 218.9 $ 188.1
International business $ 135.2 $ 91.0
Consolidated cash and invested assets
(in millions) $12,460.1 $10,716.3
Invested asset book yield - trailing
three months excluding funds withheld 5.92% 5.93%
Investment portfolio mix
Cash and short-term investments 2.05% 1.72%
Fixed maturity securities 55.17% 56.21%
Mortgage loans 5.20% 5.69%
Policy loans 7.92% 8.93%
Funds withheld at interest 27.77% 25.52%
Other invested assets 1.89% 1.93%
Short-term debt (in millions) $ 125.6 $ 56.1
Long-term debt (in millions) $ 674.4 $ 349.7
Company-obligated mandatorily
redeemable preferred securities
of subsidiary (in millions) $ 158.6 $ 158.4
Book value per share outstanding $ 41.38 $ 36.50
Book value per share outstanding, before
impact of FAS 115* $ 35.46 $ 32.58
Total stockholders' equity (in millions) $ 2,527.5 $ 2,279.0
Total stockholders' equity, before
impact of FAS 115* (in millions) $ 2,165.7 $ 2,034.3
Treasury shares 2,052,316 683,245
Common stock outstanding 61,075,957 62,445,028
<FN>
* 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.
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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
U.S. OPERATIONS
(Unaudited) (Dollars in thousands)
Three Months Ended December 31, 2005
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
----------- --------- ----------- ------
Net premiums $677,510 $ 1,182 $ -- $678,692
Investment income, net
of related expenses 65,161 58,775 70 124,006
Investment related
gains/(losses), net (3,293) (3,138) -- (6,431)
Change in value of
embedded derivatives -- 1,264 -- 1,264
Other revenues (503) 2,661 8,170 10,328
-------- ------- ------ --------
Total revenues 738,875 60,744 8,240 807,859
Benefits and expenses:
Claims and other
policy benefits 543,763 761 1 544,525
Interest credited 12,095 42,157 -- 54,252
Policy acquisition costs
and other insurance
expenses 97,456 10,489 2,222 110,167
Change in deferred ac-
quisition cost associated
with change in value
of embedded derivatives -- 1,010 -- 1,010
Other operating expenses 10,832 1,308 1,342 13,482
-------- ------- ------ --------
Total benefits
and expenses 664,146 55,725 3,565 723,436
Income before
income taxes $ 74,729 $ 5,019 $4,675 $ 84,423
======== ======= ====== ========
Three Months Ended December 31, 2004
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
----------- --------- ----------- ------
Net premiums $607,953 $ 1,234 $ -- $609,187
Investment income, net
of related expenses 58,748 69,766 44 128,558
Investment related
gains/(losses), net (642) (5,553) -- (6,195)
Change in value of
embedded derivatives -- 25,720 -- 25,720
Other revenues 964 3,514 7,185 11,663
-------- ------- ------ --------
Total revenues 667,023 94,681 7,229 768,933
Benefits and expenses:
Claims and other
policy benefits 486,117 (305) -- 485,812
Interest credited 14,022 45,630 -- 59,652
Policy acquisition
costs and other
insurance expenses 93,740 24,913 2,598 121,251
Change in deferred ac-
quisition cost associated
with change in value of
embedded derivatives -- 18,612 -- 18,612
Other operating
expenses 9,217 1,232 1,321 11,770
-------- ------- ------ --------
Total benefits and
expenses 603,096 90,082 3,919 697,097
Income before
income taxes $ 63,927 $ 4,599 $3,310 $ 71,836
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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
U.S. OPERATIONS
(Dollars in thousands)
Twelve Months Ended December 31, 2005
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
----------- --------- ----------- -----
Net premiums $2,429,541 $ 4,670 $ -- $2,434,211
Investment income, net
of related expenses 245,195 220,819 121 466,135
Investment related
gains/(losses),net (2,152) (1,077) -- (3,229)
Change in value of
embedded derivatives -- 7,444 -- 7,444
Other revenues 2,290 8,621 28,554 39,465
---------- -------- ------- ---------
Total revenues 2,674,874 240,477 28,675 2,944,026
Benefits and expenses:
Claims and other
policy benefits 2,008,536 4,870 6 2,013,412
Interest credited 53,958 151,966 -- 205,924
Policy acquisition
costs and other
insurance expenses 341,066 48,276 8,452 397,794
Change in deferred ac-
quisition cost associated
with change in value of
embedded derivatives -- 6,972 -- 6,972
Other operating expenses 40,296 5,056 5,411 50,763
---------- -------- ------- ----------
Total benefits and
expenses 2,443,856 217,140 13,869 2,674,865
Income before
income taxes $ 231,018 $ 23,337 $14,806 $ 269,161
========== ======== ======= ==========
Twelve Months Ended December 31, 2004
Asset- Financial Total
Revenues: Traditional Intensive Reinsurance U.S.
----------- --------- ----------- -----
Net premiums $2,207,817 $ 4,833 $ -- $2,212,650
Investment income, net
of related expenses 220,080 215,862 173 436,115
Investment related
gains/(losses),net 9,738 (7,196) -- 2,542
Change in value of
embedded derivatives -- 26,104 -- 26,104
Other revenues 4,157 9,735 27,419 41,311
---------- -------- ------- ----------
Total revenues 2,441,792 249,338 27,592 2,718,722
Benefits and expenses:
Claims and other
policy benefits 1,758,452 9,751 2 1,768,205
Interest credited 50,290 146,480 -- 196,770
Policy acquisition
costs and other
insurance expenses 329,006 48,243 9,521 386,770
Change in deferred ac-
quisition cost associated
with change in value of
embedded derivatives -- 22,896 -- 22,896
Other operating expenses 43,977 4,714 5,466 54,157
---------- -------- ------- ----------
Total benefits and
expenses 2,181,725 232,084 14,989 2,428,798
Income before
income taxes $ 260,067 $ 17,254 $12,603 $ 289,924
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REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
CANADIAN OPERATIONS
(Dollars in thousands)
Three Months Ended
(Unaudited) December 31,
- -----------------------------------------------------------------------
2005 2004
---- ----
Revenues:
Net premiums $103,447 $ 72,643
Investment income, net of related expenses 32,650 27,582
Investment related gains, net 694 3,349
Other revenues (13) (6)
-------- --------
Total revenues 136,778 103,568
Benefits and expenses:
Claims and other policy benefits 91,252 72,109
Interest credited 230 515
Policy acquisition costs and other
insurance expenses 19,701 7,472
Other operating expenses 4,174 2,953
-------- --------
Total benefits and expenses 115,357 83,049
Income before income taxes $ 21,421 $ 20,519
======== ========
Twelve Months Ended
(Unaudited) December 31,
- -----------------------------------------------------------------------
2005 2004
---- ----
Revenues:
Net premiums $343,131 $253,852
Investment income, net of related expenses 120,434 100,141
Investment related gains, net 4,941 11,508
Other revenues (279) 32
-------- --------
Total revenues 468,227 365,533
Benefits and expenses:
Claims and other policy benefits 307,959 250,542
Interest credited 1,105 1,840
Policy acquisition costs and other
insurance expenses 56,011 28,505
Other operating expenses 15,174 11,161
-------- --------
Total benefits and expenses 380,249 292,048
Income before income taxes $ 87,978 $ 73,485
======== ========
- more -
Add Fourteen
Europe & South Africa
(Dollars in thousands)
Three Months Ended
(Unaudited) December 31,
- ----------------------------------------------------------------------
2005 2004
---- ----
Revenues:
Net premiums $141,219 $125,617
Investment income, net of related expenses 2,675 1,328
Investment related gains, net 100 437
Other revenues 92 (14)
-------- --------
Total revenues 144,086 127,368
Benefits and expenses:
Claims and other policy benefits 99,634 82,233
Interest credited 220 --
Policy acquisition costs and other
insurance expenses 24,253 35,083
Other operating expenses 7,749 5,786
Interest expense 348 250
-------- --------
Total benefits and expenses 132,204 123,352
Income before income taxes $ 11,882 $ 4,016
======== ========
Twelve Months Ended
(Unaudited) December 31,
- -----------------------------------------------------------------------
2005 2004
---- ----
Revenues:
Net premiums $552,694 $478,580
Investment income, net of related expenses 9,710 5,125
Investment related gains, net 427 5,080
Other revenues 302 1,541
-------- --------
Total revenues 563,133 490,326
Benefits and expenses:
Claims and other policy benefits 405,122 314,128
Interest credited 882 --
Policy acquisition costs and other
insurance expenses 92,364 121,708
Other operating expenses 27,791 21,472
Interest expense 1,599 1,336
-------- --------
Total benefits and expenses 527,758 458,644
Income before income taxes $ 35,375 $ 31,682
======== ========
- more -
Add Fifteen
REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES
Asia Pacific
(Dollars in thousands)
Three Months Ended
(Unaudited) December 31,
- ---------------------------------------------------------------------
2005 2004
---- ----
Revenues:
Net premiums $136,364 $108,043
Investment income, net of related expenses 8,385 4,951
Investment related gains (losses), net (414) 228
Other revenues 1,946 1,959
-------- --------
Total revenues 146,281 115,181
Benefits and expenses:
Claims and other policy benefits 104,688 103,308
Policy acquisition costs and other
insurance expenses 14,999 1,378
Other operating expenses 8,372 7,470
Interest expense 407 505
-------- --------
Total benefits and expenses 128,466 112,661
Income before income taxes $ 17,815 $ 2,520
======== ========
Twelve Months Ended
(Unaudited) December 31,
- ----------------------------------------------------------------------
2005 2004
---- ----
Revenues:
Net premiums $534,926 $399,122
Investment income, net of related expenses 29,427 16,113
Investment related gains (losses), net (294) 670
Other revenues 4,593 5,121
-------- --------
Total revenues 568,652 421,026
Benefits and expenses:
Claims and other policy benefits 420,024 330,144
Policy acquisition costs and other
insurance expenses 79,146 52,300
Other operating expenses 27,437 24,363
Interest expense 1,679 1,614
-------- --------
Total benefits and expenses 528,286 408,421
Income before income taxes $ 40,366 $ 12,605
======== ========
- more -
Add Sixteen
CORPORATE AND OTHER
(Dollars in thousands)
Three Months Ended
(Unaudited) December 31,
- ----------------------------------------------------------------------
2005 2004
---- ----
Revenues:
Net premiums $ 347 $ 1,322
Investment income, net of related expenses 1,656 5,782
Investment related gains (losses), net 53 (117)
Other revenues 1,740 1,781
-------- --------
Total revenues 3,796 8,768
Benefits and expenses:
Claims and other policy benefits 7,484 11,601
Interest credited 87 78
Policy acquisition costs and other
insurance expenses (290) 530
Other operating expenses 11,575 6,624
Interest expense 10,841 8,947
-------- --------
Total benefits and expenses 29,697 27,780
Income before income taxes $(25,901) $(19,012)
======== ========
Twelve Months Ended
(Unaudited) December 31,
- ----------------------------------------------------------------------
2005 2004
---- ----
Revenues:
Net premiums $ 1,813 $ 3,244
Investment income, net of related expenses 13,459 23,034
Investment related gains, net 11,745 9,673
Other revenues 13,710 7,361
-------- --------
Total revenues 40,727 43,312
Benefits and expenses:
Claims and other policy benefits 41,385 15,518
Interest credited 465 321
Policy acquisition costs and other
insurance expenses 4,044 1,746
Other operating expenses 33,217 28,743
Interest expense 38,150 35,487
-------- --------
Total benefits and expenses 117,261 81,815
Income before income taxes $(76,534) $(38,503)
======== ========
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