RGA - Earnings call transcript Q1 2021 | Reinsurance Group of America, Incorporated

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Operator

Good day, and welcome to the Reinsurance Group of America First Quarter 2021 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 Anna Manning, President and Chief Executive Officer. Please go ahead, Mr. Larson.

Todd Larson

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

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

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

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

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

Anna Manning

our the Thank breakeven. Group our Last and and businesses included a a business COVID-XX we back, reached well and context of health another or for Both saw excellent related overall Financial this thank highest a franchise. further of that well, you, solid this and individual challenging EPS, pandemic us. performed performed traditional resilience markets, results. loss of night, business operating had was in Asia was $X.XX deaths $X.XX their adjusted global obviously our reported we Australia core share. I $XXX of for our US call Solutions in and million if demonstrating step and Good In quarter platform our But consider take the quarter, Todd. which morning, joining everyone, in per today. impacts you some the quarter peak

[engine]. in of good million opportunities completed will remains a value capital, During which add quarter, force transaction number further in regions. in earnings $XXX very transactions the we The underlying pipeline deploying our our all with to

not number organization of this Mortality to proud Our employees centricity. and are value that the term in also announce we crisis XXth for our remains business approach culture our has long seek significantly results seen deployment year, value. three throughout the capital in to of opportunities as pride has our deliver to in certain on this I'm in deliver a to of population RGA personal to business capabilities A disciplined us during balanced the to consecutive ranked XXXX and all been one level clients capabilities COVID-XX as global tribute point of allowed past trusted a well our Results by for a partner client being the depth, the year. report. our reinsurance were these year. impacted thought basis as Considering by leader, Leveraging first and elevated the US claims a NMG global months unexpected. and their

being after very has our in COVID-XX line all with in over and provide Jonathan quarters. XX been our performance businesses. Todd adjusting claim on large And information favorable will after mortality in for claims quarter past impacts our COVID-XX previous experience this months was for the Our expectations. line two additional the

business for business strong, to expand. continues appropriate availability profitable RGA UK and through to our optimism And actions forward, deaths COVID-XX are should increasing vaccine as the other taking the level As business rates Canada RGA's we remainder as growth. follow fundamentals we of look and prospects for our and US, vaccination reduce there robust should are markets are protect position in the is reason the year. of

incurred has the point, end worth the quarter, final over $X.X claims pandemic is began. COVID-XX a through that reflecting the in it billion As RGA of since first

a reminder millions this important in Our also have interest absorb been to financial strength pandemic. RGA, you affected claims around the and but Thank as stay serves by all for remain RGA of our the families hope who it play is purpose your of helping well. testament and that world ability these I and a to our industry safe you in

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

Todd Larson

of which reported operating per share. $X.XX COVID-XX Thanks, quarter the impacts EPS includes basis. a of a adjusted loss per a on for pretax Anna. was Adjusted million share, of operating $XXX $X.XX RGA loss

was impacts Growth month X% in Our adjusted Reported increased X%, of reflecting was the in trailing Australia, expected caution loss that XX on the pretax XX% operating of the due quarter, ROE premiums the operating COVID-XX the of excluding decline our quarter. XX.X% reduced was in geographical X.X%. by was which adjusted rate above X.X%, market. mix premium the continued The range to XX% for earnings. tax to effective

of X quarter, with Turning presentation. pretax, million claim cost and America segment Slides Beginning segment COVID-XX on $XXX that US represented $XXX including the US, operating our to traditional reported the a of results the the in adjusted X Latin of earnings and loss are million.

minute a a little providing more bit detail. spend me Let

with mortality, used individual of that The used claim costs COVID-XX. million approximately are to approach to estimate $XXX claims is throughout COVID-XX For attributed consistent XXXX.

or It quarter the unexpected that past expectations. over indirectly XX has pandemic. experience is the in to some with in that excess is the observed the COVID-XX our population to given likely is experience months not general mortality related important mortality excess was COVID-XX, the our note throughout which experienced also mortality directly been We excluding that claims in line

quarter Variable better limited was quarter. partnership health was business strong the the individual than as performance our Our investment favorable. group in income the investment expectations in performed both and

the business expected run expectations. experience. reported line modestly policyholder in rate with Our below Capital asset were reported to unfavorable that intensive results due some results Solutions US our

results claim cost Canada. to first of quarter segment, million. traditional approximately COVID-XX Moving The reflected $XX

the traditional East a meaningful attribute we the quarter cost EMEA longer COVID-XX. and business were longevity Solutions longevity reflect through estimate We Middle come for as which of future traditional segment Our performed COVID-XX experience, claims result In the the but our lags, first reflected from than and claim periods. the that of of segment results negative reflecting UK the to the a Financial Europe, quarter, Solutions results million. EMEA's COVID-XX effects the segment, level expect expected Africa. business in Financial to COVID-XX both offset benefit Africa was model $XX updates well reporting in lower we that in South favorable and in

most to first quarter, business. the region. the Asia experience favorable Pacific Turning Asia traditional underwriting our across of In had

Australia the quarter. within breakeven impacts, for some While results were we related modest COVID-XX did expectations. see and they were our

actions improve some market, see are results. our Australian approach remains the business in focused continuing to in remain there While prudent uncertainty and new to we progress on and to

Our Asia results on Corporate existing good reported treaties. segment Pacific pretax Other experience million. business The first to Solutions in the benefiting quarter, operating continued favorable $XX and income Financial and from of adjusted growth produce organic

As overall adjustment that, than mentioned in $XX expected our and better for presentation, of expenses. correct of million press the rate earnings quarter release expected our partnerships. accounting a XX and onetime our results equity lower to the reflected for Adjusting reflected run were from limited Slide method

volatility gains losses Going and forward, there unrealized investment our and variable on method the change potential equity additional in the for income from investments. is

Moving X.XX%, was income. investment The reflecting strong for investments. variable spread on quarter to non yield the portfolio

correction, strong we this accounting yield the previously limited from partnership as quarter contribution the the mentioned was had Excluding investments. X.XX%

investment of portfolio, and overall negligible. was average quality impairments credit [A] maintained Our were

XX billion. the Slide excess on quarter $X.X materials, capital shown presentation the end As earnings was of approximately of our our position at

platform, we strong as effective liquidity of ample have manage have during during vital continue to management to sheet, continue balance RGA's success capital an remainder the We RGA's to pandemic. capital pandemic. global strategy prudently this been the

our feel about financial to RGA's results I in ability COVID-XX. will XXXX, provide some COVID-XX the the Risk who thoughts Chief updates call Officer, we will over have now While confident in attractive to we additional Jonathan and expect to turn on future. claims some produce Porter,

Jonathan Porter

Thanks, Todd.

mentioned, Anna in at were countries, general deaths US COVID-XX and notably many the As UK. QX the highest their population levels

quarter the reported South of of in include COVID-XX quarter. will that a costs, Our actual of our Both considering than last Canada and global which ranges, this population general likely claims over ultimately costs per volatility. these consistent the XX,XXX majority of accounted general combined be with of in volatility, and number This cause for accounting this of consistent track approximately UK the US The our in models [model] overall the level level on COVID-XX of attributing within is for believe X% estimates COVID-XX mortality million lower of we be they X%. with months, with this to to end claims to the on in COVID-XX beyond much the which accounted of prior previous our as population we the of and UK are less of claim experienced costs quarterly our continue mortality Africa saw quarter. claim accounted based were claim our our had relative population total. and COVID-XX level experienced claim COVID-XX. being a XX in thumb general deaths approximately general line short of other in of continues in X% term we which we deaths. for to costs approximately driver well of US range death excess mortality Africa, of what the XX% India $XX our markets After to high larger COVID-XX primarily for Since markets we approximately the claim costs, the The pandemic, costs a reiterating XX. greater the the expected with was and with claim India cost estimates is mortality QX the only death coming XXXX. our beginning mortality are at countries of believe expectations, claim excess results for South our mortality reported what Slide from have our COVID-XX All rules COVID-XX population very Both shown Canada figures, significant XX% had has quarter. model

longevity. Turning to

XXXX, impact over mortality higher UK experience We not population QX of the quarter, to driven by mortality XXXX of the from our positive significant reflected quarters is next longevity QX general in see as expect yet is in overall this population general The the our and QX received. Our in several UK. majority results. increase was on based reporting do the reporting experience is in in

this The claim mortality to ultimate rates significant our their in offset reduction as forward, costs efforts vaccination mortality mortality of claim the earlier the global XXXX. may longevity to than At continue mortality and lower Canada Going monitor the closely of concentration US, to thumb be are remainder of having are vaccine vaccination COVID-XX over is to the impact of UK business time, population in the success expected rollouts time. could date. levels general the rule our variants of our we given costs and in where UK that reduce higher XX% our the incountries for the at longer persist a period same of pandemic the stages that rise

Let to me Todd. it hand back

Todd Larson

Jonathan. it That to up you, questions. for We'd your our open like concludes Thank prepared remarks. now

Operator

[Operator JPMorgan. with Instructions] And our first question is Bhullar Jimmy

Jimmy Bhullar

than question over claims Europe, before close not adjust especially on -- level of within the were a it had been the of or what the the US higher in that you'd past and the just but higher in business. XXXX, surprising. I a I the European worse outlined of if obviously other than lot had they the margins, year, And your in regions, ranges deaths. some sort even you guess for to the claims first seemed that wasn't

in expectations is UK? it both deaths to you're So higher not that market UK there can that adjusting range what COVID you that you are what why it and is and your then it is of of talk and sort your outside for in terms why about saw region? sensitivity the of your for that And

Jonathan Porter

increase the So face by for quarter is the UK, primary larger deaths. for we caused COVID that claims related believe amount I this as think I mentioned,

quarter. that in sort look in you If in normalize because difference we can versus and kind prior volatility be definitely quarters. for there just that So across four QX increase an to saw of quarter quarters, aggregate of

at are end high maybe slightly our over, of not still We or range materially. the but

US that ranges, the set somewhat. in The rates to moved mind FX keep we weakened and is when thing have those dollar has other

about the by guess, XX%, pound. So versus British I

of the So that's probably causing more a bit little too. increase,

the EMEA, South population results in As this far rest Africa with what as really quarter, are the of primarily there. we're consistent the so seeing general

with reporting quite been of again, there are So has COVID deaths, Africa the in believe. of South the high. severity pandemic issues And we

reported. the higher is of in Africa of than actual deaths order probably number times COVID magnitude in population what's the being So X general South of the in

If data, impact driving little bit in death you market just get that's of a but the is really what's just look spotty which at excess again, is results to that COVID-XX. our

look sort in saw than halfway far of QX. really Africa, so through much at you we we're South in results after almost mortality If running is what QX, QX the quarter, for lower and

South So there's bodes no happening and which quarter. well population surge are general Africa for in current the deaths lower,

Jimmy Bhullar

the would And you bit, sort some or the factors given longevity the higher results a other mentioned it in in that much potential a in help this direction? other second is go Europe but little pretty are that quarter, debts of there will

Jonathan Porter

We do a benefit see longevity. from expect to

As I mentioned, there. reporting is lag

this seen probably quarter. bit we've business, longevity even our little it, about think you a reporting extend if So

average talking So of reporting we're of on kind lengths. months five to four

being going back saw the is large mortality this probably UK average, in that extended that year. time in happen the of financials So our on started and last really into what's to stage around spikes QX. in to November reflected at And we really

So beyond to has mortality is a mind, expect so will see potentially ex-COVID, to do see think quarters. One there's mortality COVID you mortality. is other next occur couple actually -- the numbers. good, COVID population in of thing it the been that we reducing but in excess aggregate the sort over what the beyond of just that's UK why keep General in too, we benefit,

Operator

from KBW. with Ryan is Krueger our question next And

Ryan Krueger

play difficult some give but you the data know I question guess, more to out non-COVID a a perspective driving study the in on may as of emerge we non-COVID you of out any think you on underlying magnitude that you be as the saw quarter? as to How COVID. answer, part And mortality? mortality think of what then, us Could I you might that second this that, is

Alain Néemeh

think, quarter, COVID just Let on fill me maybe I then on can Jonathan start, and mortality. points our a in some little specific

back you with COVID our if out was think, from speaking, think our generally line quarter I expectations. mortality quarter, our in we

normalization quarter say, seen talked will US. script, we as in have I of I the the claims the about Now was in large think in

So very seen some throughout which we had quarters what We've level of claims that's excess couple claims, also seen volatility inconsistent the normalized of isn't large pandemic. last good, with we've this quarter. the

amount and claims COVID that. we've this got claims that you've also is I we've And then related mark we quarter. So then the an year, or likely indirectly spiking the come excess specific that, some directly claims got end of to so saw last towards of seen into given think some

even the much out, So would our underlying the and business. I we what we're I think feeling And last year good though, say, back you line have about that all with when over certainly, would very are expected. this pretty results quarter, in

Jonathan Porter

about significantly again, as happening in that's so deaths South and for population UK well. similar seeing We're to talked we with phenomenon. maybe then lower Alain already. is US just that general itself, quarter-over-quarter a Africa just And in specific -- more I'll add the the COVID sure But

has So QX. I just the that yesterday, death QX, had about and as than that's marked think, less UK of in in versus COVID happened XX,XXX X,XXX,

we which of seeing markets, some our So larger is news. good are in reductions

Ryan Krueger

a as mean, follow-up. I

pandemic that more would visits that putting are of some the a What I given off and It topic? thoughts around for your on was could the period the improve of deaths. that latest things time other and maybe this there’s of that some COVID like effects given doctor time think have. that general after like forward thought uncertainty prevailing generally, population seems mortality pull

Jonathan Porter

There's I what clear and think pluses exactly not minuses, really right. mean, and effect some at this it's point you're be. yet I that will

by you the severe. at potential doctor later with So diagnosis conditions is of be and mentioned, as going which the being more negatives one delaying people a diagnosed stage, to not could

acceleration think social also behavior, saw but just potentially effect, hand, developments, some also positive. you flu will technology, vaccine modest we this like we other about be distancing, think things the Then it season year. in will the impact, people’s that do beneficial On the mentioned have which you

could also to positive, data I for those it think time but play will the be out. So some take

Operator

[Operator & Lee, Dowling next Instructions] Hung-Fai Partners. Our is question

Hung-Fai Lee

is on question first follow non-COVID the US to just My piece. up mortality

and I about talked then this some developments. quarter? assume reporting impact lag adverse that You size for you may there this be Can

Alain Néemeh

the bit I of I think mean, last of that's in little or that more terms of sort of and to just the big year. we the so big lag reporting flux reporting influx towards saw largely a an adverse like claims end of related impact, claims question of it's

sizing millions, thereabouts… of terms In it, of tens

Hung-Fai Lee

did million you last of so the at because that. the pass mean, $XXX put quarter, up IBNR Yes, blew I of reserve clearly, end quarter,

do reserves? maybe terms So guess I in exiting that's first driver. you quarter, And the where IBNR stand of

Todd Larson

we end the the had, the was the we at that it estimate best We at reasonable, had we IBNR made time. information Yes, and we best did set up that year. of took and the the thought

As Alain end we of acceleration towards mentioned, pretty there the the significant year deaths as was that of all a saw.

to thought balance the year, again, we first information we the missed And where the be, quarterly again, below a an fact. but we The available quarter. end the the us need ongoing not out the again, we IBNR, So given reset debts of we and understated is are volume for that the it first and quarter, unusual. by bit. that's or it that's then were appropriate to IBNR of that of above just a looked you little at there what either little towards end just for And had

the that of you you down towards would will, come as got of come bit down number the deaths, given if the have end has quarter. it Now little a

Anna Manning

want to minute. that I in we last what adjusted sure back for months, make been we to step for talk And performance a appreciate I over the includes. and about line that our COVID, that it's when XX want

in roughly So deaths XXX,XXX excess have the been But to there the been US deaths, last there's those reported, addition identified in months XX COVID reported. not COVID. approximately XXX,XXX in deaths specifically as deaths,

that are adjust business those is come we're of XXX,XXX likely we for directly or Now pandemic. impact that indirectly say temporary want nature COVID means other we believe the just as sure make only deaths. adjusting the clear. we excess that's the XXX,XXX in specific business we to related deaths, likely our our I and wearing the When of out

So a of the good to me performance that's the course XX signal of over months. last

Hung-Fai Lee

My follow is to spike about, prepared numbers date. over been and there, remarks, India, million quarter now. cost and how the much X% in should $XX you you question talked that's the think talked in worse impact But only the it up the about Like into the I going in deaths claim the has of your coming fourth you exposure quarter. given had through about second we recall, to that right given

Jonathan Porter

it's coming $XX had $XXX situation of thinking we're range sort put million it availability around the of cost with nature of to the situation estimate the respect and million a for very to pretax given wide developing funnel a with So first, with in But those is claims in given or a data to if information of developing. doubt on happening still just I what's the the with the India, that think of happening there's sort range and of it's or let just current kind past, the range. we of of again, country doubt that number just just numbers, of up me Since considering well very to account of happened a caveat what's it, the difficult. in the [XX.XX] as as us how sort

Operator

And our next Research. Bass, Erik from Autonomous is question

Erik Bass

billion So forward. capital, good and I $X.X to going think you you optimistic ended of performance or return the of kind of sound and quarter with excess improving pretty profitability

to M&A your of about thinking it's wanted And going comfort down? for shareholders? point, you're some or So at potentially returning in and of whether level to get sense how block that excess a capital the just forward, drawing level

Todd Larson

We prudently pandemic. continue the capital throughout manage to the

as transactions done into the risk have kind like and of profile, the dividend we seen time. and think level over you've then we I deployment balanced some also historically, good underlying share we the where repurchases obtain returns

as I prudent that. still a but as into some pass underlying view, certainty an very comments follow her deploy We balanced think did follow the flows. was we we'll Asia of a to $XXX and we capital on with a important other well. come continue time million capital cash term management mentioned quarter, some Anna liabilities, long with was and comfortable more It here stable transactions in profile need to and nice had in very more approach. to benefits of were client in and It first

best to I continue prudent we opportunities are but So through to evaluate deployment. think continue continue pandemic and capital this work to we'll period, we'll alternatives the be the as what for

Erik Bass

much the And then you I'm growth move and we've quarters. are in seeing how term traditional particularly year past US the the of as for market maybe surge seen and kind for life, in capturing business just in pandemic? this are wondering, demand in this we outlook a middle you of recent

Alain Néemeh

right. quite you're No,

very I think are seeing production. some we good

a activity not very came type over in interestingly, the results, strong that out month MIB, quarters. think, application over with and record show In some statistics that's pre of year QX I March pandemic last level and just fact, but just of

maybe population. in desire think extent, in a thinking about expectation, insurance to expectation a the hope, that's or would We've about that past see from I general people So the wonderful an an to we in see. but talked life some resurgence

it, new level call return catch a it's ahead, of of to So little seeing whether a whether this maybe we a sustained normalcy. say now. little business bit or difficult we're of bit certainly that I'd to as say look it's up, is,

middle try in previously, distribution But clearly, and direct we'll their market. that investments as talked as accelerated about along. to efforts follow well digital that companies to have efforts we've get significantly So and invested,

we're seems and it seeing. certainly So what paying by excited we're dividends, quite be to

Operator

Suisse. And question go ahead with Kligerman Andrew Crédit is our next please

Andrew Kligerman

this continue to it's math, Sorry on little because me. question, not the on to out bit but non-COVID-XX help indirect me a clear

US and million, say be you $XXX So is a million $XXX we'd of earnings. at -- which been would life were If negative LATAM, ex [$XX effects COVID maybe not, base of have $XXX I'd million]. at in maybe normal,

that that very level [XXX,XXX] tells much be me of what is believe half claims. these then smaller. what of I'm helpful that at COVID non-COVID may -- [XXX] related, -- So looking the you was adding to total it's indirectly of the the and it's And but excess deaths against and

So run you issue, maybe think this this none through assuming it should challenging frequency was COVID-XX rate was ultimately, the could of issue earnings recuring? I what with And very situation difficult be severity guess were quarter, a help this it this quarter? issue

Alain Néemeh

a this of make. stab a take at to couple first, comments I'll

claims. one. claims I That the I be related saying think non-COVID but would type and looking labels think likely some number there's then out all, from impact I'd COVID backing rest, at by certainly start

into years, a we We then have this on number last I'd one about slippage, from a it's difficult talk our as And say, very quarter. of Certainly, some maybe had we any seasonality look back thing over quarter see the quarter. of to certain run rate I business. when level mentioned, last other in only the

well some as flu. that season goes to from necessarily has weather the all input year, a have lower as doesn't mean of seasonality away time we seasonality because flu because do of that Just with

call it's we're But annually So probably to at talk happy as look, this traditional. transpired $XXX I difficult think on would run quarter. we're we we around, the look at million I for what's But it, a about quarter. this certainly, with pretty rate business, first underlying say, quarter, I would say when look

Andrew Kligerman

think -- then just I some said on uncertainty. but he there's Todd breakeven, being And was touching then maybe Australia still

I I make what uncertainty So potential sure just be? to might that understand want

Alain Néemeh

the the look business. in new terms years, conditions some competitiveness with in about few market and of I to respect we talked certainly if underlying and back think I over level issues last

no first that That year, fund down. in our fact, for had underlying reduction the super matter we lost. renewal. you just do a we came that that treaties quarter we've come has the seeing to seen business in client two are wouldn't a interest, would books, of at when we're have of as I we on surprised one business couldn't And think reinsurance other last as come premiums. significant over one, But so look on volumes longer be to reinsurance this with which, our And the it quarter terms

So we're continuing cautious. to be

I a the looking we terms level and we're has think to see do normalcy a uncertainty, we're when products, in it looking new certain conditions to that get of to of at and about and we'd that talk a products fact level with lot to them see. like back

standards by think individual last DI coming as talked into about in I I play quarter regulated the regulator October.

maybe look we've illness. There's right back which quarter, every couple years. some and or I of has around claims to prior certainly caution breakeven we So year, last been over over less is do, I think of I the it that will improvement be potential an disability But when think some around also good think mental news. more still

with results more also the to respect shutdowns. had they've has Australia better But had pandemic. Now

thing, we're get where just question. I excited I our business cautious is Todd in of back now, to. alluding about markets, So we type simply all them next to still products new of approach on. feeling the I answers we're and The a get that step, think then our cautious would to but for being Australia better sure. business see say though, about your that put was about hope point new start to But for potentially

Operator

Our Citi. is Bergman next with question Dan

Dan Bergman

first $XXX excess It $XXX COVID XXXX just of around deploying up million million capital year end maybe block into despite following like to million and $XXX almost only declined on by your capital. looked I think, versus guess I claims absorbing, quarter start, the deals. in level excess the

COVID going give you And for just LP color accounting from some So result? on benefit your that build cetera? that capital any capital allowed seemingly finally more could first the be deals, model was before on change likely offsets hoping claims in the repurchases, with maybe that inflection I likely strong quarter. decline factoring post on with Should expecting that in block starting side on the to et forward an deployment, the we capital if capital investments? there's And here materially excess to from

Todd Larson

positive for net We actually income the quarter. had

was I it around million. $XXX think

number actually partnerships. no the from have we had the capital Also, impact from added that some net perspective. we gains the for investment as we you limited repositioning So mean I for in mentioned, that positive capital accounting did portfolio. there some of in the for correction

where we're -- though capital, that, we continue for And and the time, million even overall, COVID, as that where declined So I manage the we that be should find place over we very what we'll then a still some of level by quarter. to base. through emerge do to excess evaluate we -- it's $XXX that's balanced will deployed about in and a follow capital feel how but from effective be and approach looking we, still it

over don't nature up look I more think, know, you our long longer Quarter-to-quarter, the quarter. at business. period of true it time of it a each we do as we given term

Dan Bergman

or around additional I there your I thoughts impact to wanted guidance, know going might then the you if see provide claims how claims are vaccination reiterated forward. but prior can program COVID you sensitivity any COVID And sensitivities

generally material the great. little skewed some broad early risk over of that would general higher For that younger also with a thoughts timing the the a trends just question, could claims Could or example, in any and bit quarters the difference be between getting of impact the be individuals term on And then sensitivities, next rates we've vaccination mortality versus Maybe towards insured should what populations pandemic? near vaccine populations? a but we get seen expecting of several earlier. older be in

Jonathan Porter

try just a to I’ll give So of on points sort this. of couple

So I we are expect think of to be vaccinations out. as would still programs rolled generally applicable speaking, rules thumb our

macro thumbs data will as going a our And And I obviously, perfect will see but So well. it declines, as population match a population required. update to mortality we'll be level, that's rules we sort of as emerge, general not those reasonably decline. of at insurance track think

will as be in of of of age in mortality it more essentially we're some kind groups. I it different think think groups? mortality to your age point eliminating I about kind

sort So the not that that groups more be proportionate vaccination. by full means of the will it have definition, had in

not those of excess people been age a rid still it's groups just groups. have mortality other and vaccinated, mind. the age more we're getting It's for will and in for there the So shift that some be mortality really my residual

see might But mortality results it's we a because of think yes, on books. by I that looks we'll the going different down would same see rules again, thumb aggregate So our components. population and something our is overall, little suggest that

Operator

Our next with is Barnidge from Piper John question Sandler.

John Barnidge

line about talk traditional top in seen of directionality some rates I across you session the Can that business got asked broadly growth the because you've maybe that geographies. quarter.

Alain Néemeh

per I generally se. seen any would movement rates on haven't say, session speaking, we

business we've been our level of have driven So level, commitment. share and our at much volumes very business by company of the seen new the direct reinsurance

there and fluctuate are in will of on every of would all, each typically remained participate But I Now products degrees of those Those pool. I the all consistent. has percentages new stayed and in varying level correctly, same out. come and quite say as markets, market speaking, if I per we understand rates question recognizing our reinsurance positioning and say, pools has generally section that generally your the every with some, not client that with the markets year-to-year of

John Barnidge

And up. then a follow

it the mortality, and trying is the On sadly? into similar claim that didn't first to briefly, flu it decay of Just it one just the a they flu depth was started between those where process of two. dimension was these things step that a or COVID to the excess the is make it hospital

Alain Néemeh

tough tell this say, on. would early to very I

have cases, mean, I'll a may end. But I I. say, bit little early off that perspective than death reporting up think, from of needing this information isn't press already these many the in COVID are, quarter more our we're cause type hot Jonathan to, deaths, complete I a the after average yet for

last my don't relating of really relating to what from that. few it's difficult, in I colleagues, one the So it but seeing to what get we perspective quarters. we're the to But when know we're that excess any anything about in to add general if it population, granular, I to we've seen talk think, my deaths,

Jonathan Porter

explained complete. mean, specifically look the we is sort saw COVID where When I'm of what was in talking now I excess clearly, US, more over the by data in back time, we about beyond XXXX. mortality

that unreasonable it's deaths or minimal have been flu it expect not to Clearly, continue. So would almost zero.

that So still to offset a but be that seems to would an the of drag. net two the be

Operator

is Ward Our Mike with next question UBS.

Mike Ward

level power. high I'm to about just trying earnings think

and [mortality] that LATAM, because over touched last several earnings of the for XQ think, really you years average I seasonality. or breakeven on US the is XQ As

guidance. XXXX, changed asking has versus think thinking COVID, if all? level, before So at we're a kind earnings your power high not for if beyond for really 'XX at anything you I'm today and of about post COVID But

Todd Larson

that's was of to sort way sort going the frame of it. No, I

If has traditional from both half throughout called we business line where you Financial bottom COVID, from had far pre-COVID the as profile, Global to back globally earnings to very Financial the as business Solutions a well. and continued diversified, product wise perform half go And came our and very it's Global Solutions.

we I'll normal intact. things our as we're back more so will, very get with it's underlying and our post-COVID emerge confident still and relationships to, clients on, business, much our it, So call if you very and

levels could So then optimistic as we those we and earnings would we be get continue back pre-COVID. that on were to pre-COVID

Mike Ward

and fully XQ, mirror quarter of to the to equity there's COVID. is in did guess, a the last deaths to COVID And an global really then on just expand this close you for be discussion. COVID being if year capital in fraction I going and rearview raise

pretty of is, course, stock Your attractive.

be return up capital a would bigger from guess I in back really stopping what you ramping way? So

Todd Larson

capital don't in raise we're go future that so the comments manage capital we to Just to as my back have earlier, the going well. to prudently

that on going potentially and going perspective we're type to capital and want it at too And deploy as look from how returns what to attractive alternatives we various far and keep are. get we close eye ourselves. to transaction business we what of out ahead out as types want of did we'll underlying there we the a against pre-COVID, are that So look at lay forward. I the opportunities think don't

Operator

Tom Gallagher Evercore. from is with question next our And

Tom Gallagher

other the now, there particular get we here? on a are be is, where you're any on India there. Brazil like trying exposure much sense, countries is areas appreciated I that right -- in eye don't question considering keeping a the sensitivity. But have color I any worsening you are other think or closer My mortality to should there I'm just

Jonathan Porter

We're of all business, it's you situation. pretty as obviously, monitoring clearly. our say, So a dynamic

there's what significant about. already though from we circumstances, current the Given nothing talked

the characterize of outside pandemic pandemic India, I size America, the Latin global think think, large of which correct. It is very well some on are it, still nature in very it and Asia, date. in is entirely markets So based being we've in modest But hotspot the America. is limited Latin There the I in way annually you those business. is controlled, renewable quite issues business, relatively is the also the to and almost component of so there our impacts health a Australia. seen it's

a and inception about represented has mortality morbidity don't total, right about impacts. to our markets now. in of specific X% America, date We Latin have So those concern

Tom Gallagher

of that? quantify if COVID IBNR did a a up much as could your IBNR. in just for then claims How book you QX, percentage And question you total follow on

Jonathan Porter

you balance, have correct. a kind of really IBNR, So to think it's

movement the is there in So quarter.

the mentioned the actually as QX decreased saw our course QX, rates mortality of in in So we IBNR balance came the because quarter. Todd down over earlier, from what

all look it's IBNR and in books, we about million, regular IBNR normal the COVID would our morbidity for take, that of hold order probably give you on business. at or still we mortality of for both $XXX to have course magnitude that's our addition in of specific our our If

Operator

Larson, Mr. conference time. additional closing turn for any you are to remarks. like further that no It there the to appears I'd back questions at Todd this

Todd Larson

And everyone, We Thank first participating that our on you, your appreciate and in we quarter continued call. appreciate thank interest also you. for earnings RGA.

So much. thank you very

Operator

concludes today's call. Thank your you this And for participation.

You disconnect. may now

Reinsurance Group of America (RGA) 7 May 212021 Q1 Earnings call transcript