RGA - Earnings call transcript Q3 2020 | Reinsurance Group of America, Incorporated

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Operator

Good day and welcome to the Reinsurance Group of America's Third Quarter 2020 Results Conference Call. Today's call is being recorded. At this time, I would like to introduce Mr. Todd Larson, Senior Executive Vice President and Chief Financial Officer; and Ms. Anna Manning, President and Chief Executive Officer. Mr. ahead, go Please Larson.

Todd Larson

Alain morning, Risk With to the me RGA's of Jonathan Executive Anna Good Barbi, Relations. Officer; XXXX Investment Investor and Chief call third Jeff conference Manning, Officer; Officer; Chief and call. this Global President Chief and you. Operating RGA's Leslie Chief welcome Porter, quarter is Néemeh, Officer; Thank morning Head on Hopson,

non-GAAP a discuss quick results reminder financial the measures. information forward-looking will We after and third about quarter

be we'll remarks, Following to take prepared our questions. happy your

Some comments contain answers from results. your forward-looking differ factors to issued to statements. Please important could materially of we the that results. to of materially differ yesterday cause or from our list results questions for earnings release expected Actual may results expected a refer could actual

call, for course presentation, terms release, of earnings Anna information provide the see measures. over call website may earnings and for financial I'll to during measures. of her to and include discussion Please comments. supplement we And non-GAAP Additionally, now, GAAP turn our the reconciliations these quarterly financial this

Anna Manning

and Todd. safe you morning, healthy. and everyone, all today. thank you you, Thank call staying for joining remaining I hope Good our are

have that due an is operations play and have extremely Everyone well-being loved it continued of to have business I to by in who we of to when of and need smoothly, death to the purpose top An the unexpected proud help the role of continued priority. have illness families extremely important most. we one. thought needs to perseverance provide of expect suffering or come the our that part is upon. world families RGA rely the helping remains are throughout support begin at our me throughout this Let they proud efforts, our clients leadership support their and a commitment of global our saying employees our superior Their that am demonstrated crisis. Because level and of run

Turning is adjusted night, results. third this in we $X.XX of which very to a performance of quarter especially reported the pandemic. context Last strong global operating EPS the

further This of value the our resilience global strategic quarter platform. demonstrated and

earnings We geography that including quarter substantial our from businesses, diversified we many deliver continues as value with and by that key this to segments risk saw favorable an U.S. have well EMEA, engine performance is of Asia, and

other estimated was in the to our mortality and the U.S. of business, Australia. consolidated due Included U.S., outside spread the the is our businesses. global than including for expected Of overall the a million, at which performance individual Mortality million after favorable very business, performance U.S. better amongst global our remaining quarter, our the and in range, excluding was our total results million than $XX $XX impact better expected end were favorable profit million even low costs, COVID-XX costs traditional million claims modest pandemic. business this expectations $XXX longevity of large the with our And of experience. were model’s at in Asset-Intensive COVID-XX approximately related $XXX experience. in quarter $XXX claim of claim individual the

Asia. of We capital requiring transactions motivated at and will our call. provide on in later the quarter, the which significant overall, Europe additional regions, while and the We include completed in a information including We fee-based active pandemic remain amount work and to North several will future active not contribute capital, America, opportunities many transaction The transaction opportunities. on in pipelines are our earnings. of

continuing quarter of this during with and prudent, deployed capital and disciplined, summary, In and to with resilience global performance crisis approach remains strength the business. overall the we pleased are our balanced. this Our very

through industry remain more the and challenges RGA vaccines. improving on the a treatments, crisis. winter we reasons society. And we we But move eventually, are regarding our there months. both global and come health and At As remains be global and focused there optimism look supporting COVID-XX our may for protecting economic as also forward, clients serving some to employees,

Our through the manage and to the strong give that and earnings pandemic us engine we advantage well sheet of confidence balance take of next can future phase opportunities. emerge positioned

you intent to what your performance long-term track safe are We on to and you remain for value. I creating well. is of necessary our interest substantial continue RGA. to on And record shareholder financial in Thank doing strong all hope continue build in and

Let go over me the results. now Todd to to it turn over detailed financial

Todd Larson

release liquidity X% financial as and foreign as temporary position. in results, the around anticipated RGA's Beginning pandemic to for XX% XX.X% below favorable effective adjustments premium Australia. we investments The a as adjusted Thanks, in operating the of quarter, premium from and premiums, the filed. world, rate growth result on of expected Anna. bases of slowdown consolidated the reported allowances, significant a to see well the continue jurisdictions valuation pre-tax as will tax with capital reduction income we was impact differences returns I range of review to tax XX% and due approximately of some the

pre-tax. segment listed X be a slides result Latin This good we in the pandemic. on Turning X and results U.S. of of America Traditional earned and The segment presentation. $XX very consider the the to earnings light million to

COVID-XX Excess Our individual experience, $XX favorable. mortality totaled was including million, claims individual claims. COVID-XX, excluding mortality

which Let approach million second in $XX quarter. consistent used me claim to little COVID-XX related provide more is that had offset attributed attribute of detail. We claims. claims claims of used to large very to the approximately with The a million, COVID-XX. COVID-XX helped XXX favorable are experience Approximately

inherent the of volatility discussed part this Reinsurance volatility the part in business, and in of and an have value proposition you both of with is directions. our goes past, we As

consistent in levels non-large population an saw shortly. segment, deaths and health of with also in individual excess claims quarter. specifically is expectations. our group U.S. deaths. in of general Jonathan CDC We COVID-XX. to pandemic likely is provide Also COVID-XX the the on will businesses slightly related an elevated believe ahead total reporting our We a Traditional This portion update which in were significant identified frequency of the of above the of

U.S. Our

Asset-Intensive business favorable adjusted U.S. growth. in from reported equity Capital income spreads increase new investments very Solutions good markets. resulting in business result, operating reported from benefiting an a

reflected claims segment Canada, Moving due from experience Traditional to modestly to primarily results unfavorable the the impact COVID-XX.

driven Our which good related reflected Financial in majority longevity believe quarter, we results segment EMEA’s favorable the the reflecting longevity mortality East In claims reflecting by and business Middle Financial well, is a Europe, Traditional favorable to experience, UK. COVID-XX. experience COVID-XX Solutions our performed had and Solutions in segment, of the South very business Africa the Africa unfavorable primarily experience, quarter.

benefit and our Asia business, For moderate most morbidity long-term modest profit a related very a individual had offset impact by in better our reflecting our Asia than experience, to regions. a Pacific both COVID-XX immaterial, Traditional claims from mortality Australia as was had experience overall favorable disability were negative some moderate experience. income impacts experience projected.

business million, investment interest another XXXX run from loss segment the average and due pre-tax Asia growth good The Financial issuance. more of lower income benefiting rate June quarter, Asia. in Pacific Other Corporate than of to expense variable senior debt and Our had from operating increased the $XX the primarily Solutions reported adjusted

slower income yield investment quarter to Variable of investments, than X.XX%. the Moving alternative ended on at non-spread realizations portfolio periods. continued investment the the in be sales below rate, average was to previous as run

as on downward security did was levels from continues reopening, positioned put selection, into rates. as Our diligent some increased policy Credit economic the to performance lower cash believe We and as markets. pressure defensively our money coming well responses open yields new crisis. benefit portfolio

impairments modest maintained Our portfolio average in were quality credit A of quarter. the and was

As providing move end materials, the the flexibility on as billion, we our of through Slide winter at quarter position months. level shown of to capital increased our robust $X.X XX presentation excess the

performance the with our funded organic business strong remains the leverage debt at Our our absorbed net excess impact and billion. the levels issuance strong RGA's quarter quarter position. cash to of ratios the $X.X cash following dividend remain capital liquidity comfortable furthered and in and senior growth, at our second equivalents COVID-XX, added

affect impacts to this earnings that expect will we negatively resolved. forward, of level is ongoing see until some COVID-XX our Looking crisis

continue attractive Jonathan Porter, good to of to and call the our earnings continue who balance our to as in Risk we franchise, us pandemic positions this strong that over returns our sheet, shape shareholders our on benefits diversified of to produce will the updates engine time. believe view over Global thoughts global However, Officer, turn the from manageable to our and to Chief some emerge now the and I power will provide COVID-XX.

Jonathan Porter

reporting and Starting I'll be COVID-XX impacts are reviewing based were model, deaths account quarter. on our incomplete relative adjusted Thanks, reported Recall as of cause incurred for our relative that of three not the to today, cause but our Todd. claim prior COVID-XX well updated COVID-XX claims. QX our QX how reported longevity estimates cost death as results claims, first COVID-XX expectations. to tracking QX to our specifically with reporting, model topics

previously continued million the claim used to in of same very at QX methodology information cause As We've estimate costs. complete QX, QX with results $XXX method. are COVID-XX nicely to of mentioned this death tracking arrive of has the pre-tax

with we our that be ultimately only of claim reported COVID-XX include Our COVID-XX will think cause estimates costs death.

the to current Turning quarter.

data refine as model own external sources. assumptions well to and reinsurance our continue our as both book on We based projections from

thumb change there minuses. Our major our for underlying update no markets. pluses this of and quarter resulted to claim balance, in our rules some But cost on is

As excess costs our claim Anna this mentioned, QX of range quarter. were at end lower our COVID-XX the

assumptions caveat external quarter potential of I XX% application based also estimates claims, and our about to previously reminder, of longevity of judgments, underlying our and on experience subject impact our with discussed to some to longevity provided therefore, reporting but of in expert business model are delays. reflecting a range as model well repeat our offsetting this quarters, insight longer a the our our into analysis as number of a the We've estimate is internal uncertainty. the expectations. provide our As of data of will wanted from I our relative mortality prior

$XX is better model than in expected, results Our line approximately QX million longevity in pre-tax our with which were expectations.

COVID business, is do on experience. on experience longevity same our information of COVID-XX keep have important country-specific is death not of mind cause this depending in our to geographic may the It business and longevity While most relationship related. reported this and therefore, also believe concentration, business offset mortality we change is that not

now to Let Todd. it me hand back

Todd Larson

We'd your now Jonathan. you, for like questions. open it to Thank up

Operator

Credit [Operator Kligerman our will today from Instructions]. first come Suisse. And Andrew question with

Andrew Kligerman

of like as it real reinsurance these be fixed into seems up variable annuities, something interest it curious annuities. would Is question. environment. they're area of you've heat how the play I'm that's to to So a for RGA might effectively And yes, an Langhorne of annuity blocks, that And whether that Or seen indexed you? annuities, Re?

Anna Manning

block those time. for in morning, participating a very transactions long Good we Yes, Andrew. have been

those Our Asset-Intensive us. -- and business transactions, those the we've Alain in globe. the includes perhaps new blocks won our been on what also of fair This to some both product underlying that markets market. around the Alain? come some share And longevity and active ask Perhaps asset-intensive we've annuities. to swap of of annuities the been for markets, comment in we're lines fixed seeing in longevity isn't We've I'll

Alain Néemeh

of Sure, all lines Financial or generally, to. across as Anna Andrew. Look, be Solutions longevity, it business, I'd Asset-Intensive pipeline of whether healthy alluded say, a our

respond both in typically separate But size to do types both whether transactions. or Langhorne are those equipped into think able of we I terms it'll We criteria which in of go are RGA or to needs. whether Re, a RGA Langhorne. to have those

Andrew Kligerman

So something imminent? be little do appetite could now? a bigger think your that Is you sizable

Alain Néemeh

lack bit it's imminent this is But in transactions These we're Langhorne. lumpiness. Certainly, word. tend RGA we closed haven't certainly more environment, with there's lumpy be yet themselves. think in claims, difficult I in of not but both not for lack it's potentially always and the of for opportunity. transaction little a a Langhorne, and Clearly, Look, active to of

Andrew Kligerman

then Got it. just a up. And I mean... follow

Anna Manning

a well. I maybe could just as Andrew, add comment

I well-positioned the on because are balance for risks think clients’ all a can sitting in we're we reasons, that sheet. support those almost couple the of -- markets because

because mortality, longevity, think I gives And differentiators. risks annuities, of risks. flexibility. doing we a then our So both. and both we're think as insurance We're And I counterparty. comfortable mentioned We're a lot fixed strong, take because well-positioned earlier, market also well-rated of us that

decades. business us at for win We've I this of continue in the been us block these transactions that to execution to And That to we clients. we're our We have When say expect win number helped deep fair for reputation going past. have it forward. good very share will our client we of going we And something, very a deliver do well help relationships. certainty. a

Sorry, I didn't mean to cut you off.

I had a you follow-up think question.

Andrew Kligerman

Yes.

was little thank -- on feel favorable quickly breakeven APAC, foreseeable around you Just for follow-up. future? least Australia Maybe at that And remain mortality finally there. whether that color can that. you the a very the for

Anna Manning

call comments on there. that love in it's still I'd say win too to Alain maybe Yes. think I ask we're provide some I'll Australia. early. this going what to we're seeing to a

Alain Néemeh

Anna. And maybe Thanks, will in Sure. it call win then a I Australia.

perspective, work do to its Just to the through obviously from issues. still the has industry get

still about hearing reading issues Australia. some focused at bottom-line, we've the been you're on of our and managing sometimes in Certainly, expense our So top-line. very

and still but we're come I to see been to that course portfolio to this seeing that think we're see certainly management, down pattern It's on going manage you'll from so the and actively claim We've premium in bottom-line. that we're to improve, very And Australia. and of have type continue and we stay early seen that. continue probably to results claims active continue going too

pleased hard So to work. seen far certainly, we've going so very what we're with and at remain

Asia, terms well. as being lumpy. of little good the in treaty quarter bit a In We've, a in think, Asia there reporting past about I talked

helped mortality had the probably so morbidity but also the of lumpiness bit been by good in the some experience, little and on a And have reporting we bottom-line. we've

Operator

Next, Dowling we'll Lee Partners. Humphrey & move to with

Humphrey Lee

in Just quarter? terms provide U.S. if large in was you versus anything specific any non-COVID frequency can additional deaths you in the that color about portion portion, claims of the saw wondering the the the I

Anna Manning

number claim we of both claims down. size experience, was quarter of the and where was saw In a down was the respect average of large large claims the large the this

So in quarter. both same worked the this direction

It about part or his mentioned important part in seeing prepared CDC in in Jonathan -- plus in of it It's of but business. value to a part goes -- question to time, our over of of frequency is about the Todd quarter. volatility in And out the of direction a both plus and As hand smooth I'll on your claims we're out to remarks, to maybe inherent It and part non-large tend Reinsurance. talk see short-term minus. this reporting the our is directions, as in an good side, what business. respect does over claim the non-large it it

Jonathan Porter

Thanks, Yes. Anna.

our frequency. Anna smaller-sized observed quarter, consistent mentioned. we do with experience So policies CDC we looked this -- believe yes, did the and we the increased at it's being in claims our that And on that data what's

in more So not that year, CDC far half has this of reported XX,XXX about really the excess deaths are tagged coming than as those QX. COVID-XX,

pretty well. So when up the that excess book as with our as business, quarter of and deaths come is mentioned, we few through those look Anna saw But in see at a we'll number of we experience consistent volatility that. this metrics line different

So just keep mind too. that in

Humphrey Lee

and there. kind Okay. U.S., morbidity was as the favorable of I and of Got has Like believe, individual general, it. we definitely And the quarter, -- Asia about health some favorable the then experience group for in well. then kind think results as -- in the in

the of at about time, of utilization kind products the the these kind quarter? being reopened of different we them down for should health-related kind of in again, some same then shutting think of some of about how we think economies As kind the fourth the and

Anna Manning

Yes.

experience point. Year-to-date, business. our morbidity global you So good very we've aggregate had in a favorable made

slowdowns so then diagnostic the slowdowns get medical or of people result the having going to in the likely is and that of Some the visits. shutdowns, testing

In favorable the morbidity visits, fact, from pandemic. medical through hospitals something away and our and People that other experience were saw during was stay we period. SARS similar

track of continue the premature it. going term, I long any COVID it's just negative has health the health may negative mind, impact Difficult footprint mortality favorable. with out, our will, are to been some long-term to any can't say given seeing in the point business. the this that estimate that certainty pandemic these the that even morbidity possible these profile see -- this to our closely survivors, impacts whether Obviously, fact, of we'll we permanent. though, somewhat morbidity impacts, experts point be material less implications medical So they're than will COVID be our of conditions on short-term, from longer business, But of though, at haulers. likely bear in because and

Operator

Autonomous move Next, we'll Research. with Bass to Erik

Erik Bass

A of couple ups. quick follow

emerge, $X.X deals. it your to with billion, excess comments, feel some sounds capital if position at you a particularly Just block in to you're from opportunities like put attractive that work your like for of

Anna Manning

Yes.

are the continue remarks, And active are at prepared mentioned management capital this we cautious, prudent one through we looking but in crisis pursue. I being opportunities attractive transactions. my at As something is our and really to of that

Erik Bass

all And some of But certainly COVID related the pandemic? we've seen kind that and what's CDC to of is mortality more related. population kind Or this? driving pandemic? post that that it any sense trend guess, is a this something the I the do could excess like the sounds have of then of some data, on continue and mortality And it you is worsening of the

Anna Manning

the Yes. comments, to that excess Jonathan in. cause non-COVID-specific being It's very ask those brief separate to I'll it's unreasonable the some There's local-level out in are unreported all hard of of and maybe I'll deaths of reported a them inconsistency COVID of then reporting. lot population. provide that I weigh the claims. might to don't some be assume state-level the think reporting in and

indirectly COVID. be linked may Some to

who going to about visiting So their think delaying are or delaying hospitals. people doctor

non-COVID related, that you'd there interpreting add? would to although I cautious be else in they're like So as is reported anything being excess Jonathan, that.

Jonathan Porter

we Yes. see. I'll expect just about talk might to Maybe what

deaths there will see are between deaths from this excess I graph, and think continue the that level seems determine deaths, the correlation of it's provided COVID-denoted and these related the could mean, the to you agree, of the definitely I excess think, that on to in yes, to the be, can conclusion Yes, I COVID. level future. to So what which lead definitely of you CDC, I some we hard

I U.S. countries, continue But we some in think, will said, as therefore, are at short-term to Anna see, data the it's in that we too. excess deaths other looking likely in

in seen, So large the has an reversed we've post the excess mortality. example, spikes UK, as specifically, death COVID

not clear, have to based future. or these not information, But may in the countries' around. on the it's may things I So what extent guess, continue other turned

Erik Bass

do quickly, claims? the how the And on you I be then some mortality level of higher top-line impact estimate will of premiums? assume have an ongoing on does just would Todd, impact from much that have

Anna Manning

Todd? Sorry,

Todd Larson

Yes.

think, I near look, have on as of top-line we in a specific I how estimate. this. the hard some could be impact we'll estimate see much. Maybe that term, of to don't sort go the through

Operator

we'll KBW. to Krueger Next, with Ryan go

Ryan Krueger

that in -- When provided, seeing COVID related now? Or but you've sensitivity just reported, is did COVID mortality include the excess that that very anything for that specific I you're not COVID guess, deaths? to right

Anna Manning

As specific frequency COVID, have of remarks, coded include Jonathan, Jonathan estimates? we've in accurately prepared as that as COVID, of is described eventually estimate reported not to what deaths. being cause are complete. included any it mentioned and of the be in the non-COVID does It excess of his deaths as we death our coded what's will as -- I

Jonathan Porter

Yes. right, Yes, that's Anna. exactly

the for million as the COVID an amount $XXX at looking attributed the COVID example, reporting just well. be in excess as deaths an to U.S. as including opposed would that So to we've

Ryan Krueger

be given? deaths but together, about to And I that sensitivity. you to think X seems low getting not range those that towards -- -- end far, so these coded in is add maybe trending the it's somewhere deaths way are mean of when guess, it the the COVID that COVID. We're as you've additional another still I

Jonathan Porter

depends Yes. as calculation the -- in mean use I that well, dominator, you not denominator, sorry, as what the numerator. Yes. think and it I right,

within COVID-reported what So these higher ranges the you end include at it. if claims claims would think because be you deaths, still if coming think use range. low only deaths, but of take But in still excess we the only you the excess but might we then, would be higher of in yes, the I be

Ryan Krueger

in And but earnings, Excess seemed obviously, just last you like capital one what million big that? any the a drove Okay. good quarter, Do on color one. increase. had increased more you then pretty $XXX that have

Todd Larson

generation actually some then it earnings growth. by It from Ryan, paid was the to earnings the we in deployment the million out. And $XXX Yes. net $X.X in increased billion. dividends in business the primarily less the amount organic billion the quarter, $X.X of quarter,

Operator

And move Sandler. to next John with Barnidge Piper we'll

John Barnidge

this growth life for to into and emerging that demand Now you you do you're flip secular more reinsurance in lens are then insurers there's seeing to the signs quarters products; in think -- any a life a exposure? of utilize pandemic, primary less that tailwind wanting couple of how on the side, about have

Anna Manning

Yes.

over comments I what various to the on markets think seeing globe. in that I'll we're some turn the to around Alain provide

Alain Néemeh

Thanks, talk seen natural Certainly, that think the given to that's think Anna. I seeing sales. think I through that you're COVID. about higher slowdown companies Sure. see And direct to we've or

call big get I will of what question through catch the once how think persist I'll the is, much that up. we

certainly hope middle in will wake digital that a need think hold, more that they industry the in underserved -- see sales realize insurance. takes I in that up we'll belief there's and a and People market. as the

a tell. will to it's persist. like that, to But little probably I'd I think early think too So that

of course to the to yet. And about the on But I nothing few quite and particular lumpiness anything don't try their that's a side significant the happen. balance we're of sheets, that. we think talked use bit of that own happened anticipate terms activity transactional of change, there's an anything companies pools wouldn't manage as last more less, like terms that Certainly, would seeing of earlier. element material as of of look In I months. over seeing or in reinsurance the our reinsurance any or There's any

Anna Manning

just thought. one other I If add could

products markets would UK as in add back some economies to credit-based and would products expect products maybe see of travel As Asia, products in finally, Kong are we Europe morbidity many we that parts for sales environments, And follow. comes side, are expect better very in of growth popular for opportunities affordable and to that product like in protection align the opportunities the would Hong benefit. growth around recover, would of naturally their needs likely their designing And see on consumer potential simple the consumer and and long for that and for suited and opportunities -- this globe with rate I for interest with better products resources. the organic low the those

So will is product a I innovation something product And and as the think accelerate virus. already of doing, we're innovation result at. we're very good

Operator

to move with Dan I'll Next, Bergman Citi.

Dan Bergman

could first, kind the the have impacted guess, were how variable given little drivers income on volatile color segments? I lately. quarter? markets unfavorable the Other versus what And the more you pretty been just provide a investment in of much Corporate Just key and

any into income investment and the updated on trend that might quarter of thoughts how portion fourth ahead? So

Anna Manning

thoughts -- then Todd address third of sorry? don't the to first ask quarter, fourth go-forward provide Leslie -- the the environment. is -- in And in first your part Why the first experience which ask some I our on your question, with to

Todd Larson

Yes, Dan.

If you Traditional the more primarily third that income, million bit $XX in in it little of around the it run quarter it put historical probably were rate. was of for variable approximately little investment Corporate. which and helps rate you. bit, look the in run for pre-tax recent some And historical, off a that That a segment context and at does we look bounce sort at

Leslie Barbi

Leslie. Dan, is this Hey,

that. So for you Dan, thank

important our investment periods the our markets think, And in forward, is quarter. that still up of underlying at start activity that know, so income the run to that is returns we'll run rate, predict But is hard produce think overall, go has asset picked time. have what's to at over time hopefully, I looking expected again those fourth the to and I there creates it's our type and still back to the given unfavorable of -- that towards rate, trend we in a in that shorter see base

Todd Larson

there. is of more most alternative I'll We basis. most still for feel value And a Dan, We one add maybe It's point. investments just cost timing. more on of the account these

-- the So of and recognize or market venture we we versus property each realize underlying realize quarter. sale the to actually the only marketing income,

do see a it’s be of we the is issue. there, of going timing most more So still to value

Dan Bergman

just moving to guess I maybe Corporate.

moving all of pieces see the on thinking Just level, impact that, about where things any corporate recent couple update given you the the be to the how wanted had over pandemic like quarters? trend we if issuance like I the debt of the loss next on should expense that and just might

Todd Larson

Yes.

We start, and add the know, invested pretty raised have a been is to haven't June, indicating, then in we those Since proceeds term. place on as fully average which loss $XX in. range, still good maybe million we’ve the longer back you

-- So bit the on the of there here a on interest is a little drag from expense the debt.

you guidance year or of part early couple do the going then in So the it's next up-to-date more as of every year. elevated to so, provide better, be and probably with bit the we'll a little next quarters we

Operator

next, Brian hear we from Meredith with And UBS.

Michael Ward

Ward Brian. This for is on Mike

some wondering need we the at there commentary you about to forward. stock potential hurdles the So value discount I book some repurchases? into about with respect even your to appreciate trading just to resuming COVID might currently, certain if just But was I block capital consider before for the economy with transactions mortality going curious, of XX% cross are the or deploying

Anna Manning

Yes.

on our share economic and uncertainty to virus front. the halted program in we the to second know, see the the level on like We'd We'd of increased front reduction a you see buyback clarity. like as in So quarter.

next the decisions. buybacks. part opportunities; of through that our get share That's And winter potential strategy. through as pipeline, we'll opportunities specific of We'll returns; capital, management uses the framework the remain and the in focused the make Let's capital period. the we'll through look or We'll our look address use two, months. dividends, our we'll strength at share flexibility quarter on financial maintaining to including other at buybacks

like continue think, to share dividends Our it returning good shareholders into and use as strategy to forward. then reduction of and a the see the I we'd between to a clarity reduction crisis. framework and going I in that very this framework, over uncertainty said, But time, the and deploying resulted and -- we'll end buybacks. an uncertainty to business that has material through to balance And as back in

Michael Ward

consolidated helpful. to expenses If about really recalling quarter then I just quick on last think a That's $X.XX lower correctly, the operating quarter. contributed I'm And or G&A. expenses one

looks like This a quarter, that. it maybe was little around half bit it of

if ongoing? to going all opportunities on comment maybe been you expectations keep your there wondering Have just taken So could some expense you've savings those at forward. of

Anna Manning

please... will Todd, you

Todd Larson

maybe And go and travel we of will thing. in of couple is you type the employees both this new expenses cetera. short-term some some on was What as some savings nobody quarters we saw at on incentive COVID, true-ups and I have more and probably savings savings entertainment. think continue that given traveling, Yes. project entertainment et programs. comp, second impact given travel et quarter certainly through delayed material related that assume What some saw long-term lower that -- to to the it's and next so, we quarter and cetera, the travel then to on entertainment some Sure. stay or bringing And reasonable saw activity to and was, did of levels the and really

savings, some to we you So what And see in second I probably it's saw as in be as this to continue quarter. what think won't more similar we'll it but quarter. the material saw

Anna Manning

working expect will lot of all savings. model. to some footprint also around travel might I seeing, but we we're real and other come elements at a cost would back, learning term, in entertainment of environment, permanent that I that become virtual that those permanent our some costs not remain savings. longer will what unreasonable think we're operating We're maybe see and it's And parts some will our expect estate. And improving looking this of

Todd Larson

Yes. more million what or range. had -- And maybe of million that the but too, size you so plus $XX the we -- -- sure least would it $XX quarter, the for or to minus. number quoted I'd around $XX million not I'm the was let's that, in, at it look size in sort this savings at to just say, more size way quarter, I

Operator

will At to additional time, session. closing And any the conclude Larson or Mr. to the would back that I over remarks. this call turn for question-and-answer like

Todd Larson

you. Thank in conclude thank and RGA, very support continued and you Okay. Thank much. everyone, you, call. your for we'll Well, the interest

Operator

And your conclude We you thank that will for participation. today's call.

Reinsurance Group of America (RGA) 6 Nov 202020 Q3 Earnings call transcript