Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the Reinsurance Group of America Fourth Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Todd Larson, Senior Executive Vice President and Chief Financial Officer. Please go ahead.

Todd Larson

you. Thank Fourth Call. RGA's XXXX Quarter to Conference Welcome Officer; I Anna Leslie Manning, on the Chief Barbi, Investor Head morning with call this Risk our RGA's Porter, Chief Officer; am Jeff Relations. Investment Hopson, of joined our Jonathan and Chief Executive Officer;

measures. reminder financial we and before quick started regarding A information forward-looking get non-GAAP

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

of Additionally, non-GAAP are website our a this financial of release, posted call, discussion include see for terms and of Please measures. provide all our GAAP earnings may quarterly during reconciliations which the measures. and to earnings on information course presentation these we supplement, financial

I'll now her for And comments. the Anna turn to over call

Anna Manning

joining earnings and we you a night, our our and solid This thank Last and was of year quarter per full the morning, for and share, $X.XX per respectively. business. included many performance for of Good across $XX.XX call. segments favorable share operating fourth that adjusted reported quarter

quarter all this and Asia strength Global particular business our in Health. Individual of Areas Traditional and Solutions regions Financial lines, product Group and include Pacific U.S.

a see continue on with currency constant momentum growth to very premium basis. We good new and business notable activity

as that exclusive development underwriting differentiators capabilities, new strengths are serve are valuable opportunities. product leading Our capital and first-to-market business solutions and particular to and expertise

the saw impairments. was and good overall performance quarter investment Our minimal

across deployed year. pipelines other $XXX expect many year-to-date across risks demand geographies which into the we quarter million, and brings to based strong solid for the our and continue. and and remain a a another product deployment transactions geographies to capital $XX also successful broad active transaction was million lines, with and very The This range total of in-force

back accomplishments. our XXXX, am of I many As I proud on look

$XX.XX, power underlying of claims absorbing foreign despite demonstrating the business. operating $X.XX of our achieved headwinds, we EPS currency earnings and COVID-XX of $X.XX of First, adjusted record of strength the

client-centric our quality good driving business Second, is opportunities. solutions-oriented strategy new

by underwriting Third, and was global U.S. segment. our favorable Individual Business Pacific Asia our Traditional non-COVID Mortality experience led

had at returns, We performance Financial adding underlying here. to substantial another attractive of record and earnings the many transactions Solutions the completed Global Fourth, our business. diversification power

seeing and investment Fifth, realized tailwind, yields gains in multiyear a favorable, joint from benefit. our have a from are to and available some rates real on results measurable benefiting limited partnerships. higher headwind were a part ventures Interest estate shifted we and nice

am ESG commitments. we we transparency of sustainability I progress providing into and demonstrating on first proud our ESG finally, ongoing made accomplishments our targets the And XXXX, strategy published efforts. our and report, In our

life purpose as the excited The course RGA years its partnerships. proud client demonstrated business and as its of long-term the these even more future. But industry accomplishments, on the position about of strength during of delivered and and am the I our I am insurance three leadership last

franchise, positioned teams all engaged are and We talented have very have our well great a in highly markets. and

I is shareholders about strategy our prospects. clients value our to resilient, is delivering business our am returns Our and to future growth and our optimistic

more XXXX. industry, retiring After I end will insurance years the at the years XX RGA than with of XX in and be

the and President will with years, As Cheng, been has and Tony highlighted you've breadth and heard years, our CEO January with the X, me become strengths my of certainly say named on for recent more depth that our is that was XXXX,upon was over announcement one team than retirement. of many key RGA leadership XX who

our business appreciates the great role in an his more unique in played confident and and overseeing hands. that strengths He I be growth our a culture talented being will and besides instrumental and leadership Australia. of EMEA and recently, very RGA understands capable in Tony and has Asia am executive role our in many

you your to And review to I'll RGA. the it Todd now detailed over turn interest in for Thank financial results.

Todd Larson

Anna. per for COVID-XX and and quarter operating per share RGA foreign which operating impact earnings $X.XX, includes per reported the of income the of of headwind $X.XX share adjusted Thanks, $XXX pretax million currency of adjusted $X.XX a share.

was reported is operating currency XX of we X.X%. impact of year, headwind share full The estimated net trailing For per on COVID-XX $XX.XX, earnings $X.XX record a the months of operating per share return includes of$X.XX foreign per of share. COVID-XX XX.X%, adjusted equity which impact which adjusted and

in pleased and new deployed with other are metrics currency as and other returns. constant quarterly premium production, We solid such the growth, investment across transactions and business fundamental organization capital in-force the produced results into

X.X% For per after grew to value achieved claim $XXX.XX. million impacts. of share the absorbing book full This was year, $XXX AOCI, excluding COVID-XX our

Reported a up on X% currency adjusting X.X% quarter after premiums impacts, the premiums constant adverse foreign were currency for were up for basis.

constant For year, currency basis. the X.X% a totaled an billion full of premiums on increase $XX.X representing

business across various to continued momentum segments. good see We our

additional and Individual some that We in totaled Latin claims the to can $XX Slide approximately of on the million. the early a results, to quarterly results season. segment excess presentation that in on U.S. our minute. will segment provide relates believe found Jonathan Traditional COVID-XX both website, Mortality flu reflected Turning Relations America and insights X earnings be Investor the some mortality RGA's experience starting unfavorable

a be continues experience although our performed above Solutions lines Individual was U.S. strong spreads U.S. recent as expectations reflecting the expectations. Group were our results favorable income asset-intensive results below our The investment our and positive were well. The to runrate. within Capital had most Variable business investment Business business business Health contribution, and favorable

disability in with expectations experience. Traditional totaling above business group million. business experience claim costs to $X was and results The Financial unfavorable favorable Solutions reflected life longevity COVID-XX due the The Canada

quarter. Africa the EMEA's for the COVID-XX in In business by line Financial overall unfavorable the favorable the results in Solutions Europe, reflected mortality UK, experience. claim Middle were favorable $X expectations, experience East and traditional with segment, results were reflecting business offset costs otherwise. million modestly

profit favorable by Pacific absorbing Asia region, The million strong reflected very a results quarter of $X strong, Traditional group million. results investment favorable Asia underwriting experience. business Turning and were favorable Australia Asia Solutions good new the reflecting across another claim experience Financial business driven to pretax spreads. reported COVID-XX Pacific of $XX cost with Business, our

COVID-XX a also costs to hospitalization medical in decline saw Japan. We the related claims in

higher one-off The financing fees operating some range elevated million, Corporate general and expenses Other segment incentive Included expenses expected reported to our and compensation in pretax loss $XX true-ups, quarterly of higher items. and number of are a adjusted than some higher a the consulting general costs. due

portfolio the quarter Slide positive by securities. in for rates, from was new XX on recent lower investments through the some reflecting variable also The a our from rate impacted higher the X.XX%, well to as on rate. Moving XX quarter non-spread benefit existing positively income, contribution was run money as although earnings investment floating presentation, yield than

X.XX% our compared X.XX% quarter, business, non-spread quarter was to money in fourth in new of the For last year. rate the

Our of rate money money new available. to third lower new and was due more modestly spreads asset the than allocation quarter some a conservative lower

a economic is Meanwhile, X.XX% Looking uncertain base of at well to the year and we through we the we portfolio the investment this from believe in income, environment. minimal, last X.XX% yield have impairments more as positioned were move credit quarter. in before quarter fourth variable moved

action recently our have lower exposure. high-yield We taken to bond

higher We to have also selectively interest in rates. extended lock duration

a and our see and capital other Slide ended our with earnings deployed $X.X liquidity and of strong continue into very approximately the on deal pipeline. presentation, of the excess transactions and and XX shown to we million of remains billion. quarter, As position capital XX In we quarter capital $XX in-force active

through repurchases We total of also of and share capital dividends. shareholders returned a $XX to million

year, repurchases capital and For and million dividends. shareholders deployed into full the and million share $XXX $XXX we of returned other through to capital of in-force transactions

deploying emerge and a our pandemic transactions excess and of we share and be are confident active strong to repurchases. to and the through capital we in generation from and capital into in-force As shareholders dividends returning we expect earnings other capital power and XXXX, in the

LDTI of previously XX. of adjustments We with provided earnings Slide The on are and consistent our the information presentation some updated have XXXX ranges. December LDTI in as January included

XXXX, estimate a $X.X increase AOCI retained rate interest environment. to higher of September of million reflecting after billion, to to billion tax, $X.X of earnings compared decrease estimate an As $XXX million the of current We reporting. we XX, in $XXX financial

believe along with As and new long-term financial previously transparency the provide standard the we reporting commented, we of will performance new to additional into RGA's investors. have disclosures business insight provide better our

excited support our about the to underlying deliver and We attractive and over platform to financial clients are our shareholders earnings to global returns positions well-diversified power and time. continue future us believe

the now Jonathan turn over Officer. call Risk I Chief Porter, our to will

Jonathan Porter

Thanks, Todd.

quarter. underwriting Slide indicated was experience non-COVID-XX X, on modestly As unfavorable in the aggregate

offset part Total continue of book moderate, million in benefit in in We totaling claims risks, by experience large across were remain as continue diversified COVID-XX some higher favorable segments. all to markets pretax others. from to impacts $XX underwriting globally

experienced Individual expectations two we claims higher with in claim U.S. line experience very frequency. our costs was claim with quarters Mortality, elevated favorable due and first after Starting non-COVID-XX QX. inQX Large to

mortality consistent CDC. levels is by Our directionally reported of with claims excess general U.S. frequency the as higher of population the

the to the the deaths population season which start continue Non-COVID-XX remain by pandemic. of first elevated, material influenza compounded since was

the cases earlier the peaked deaths which pre-pandemic average believe flu season, shifted line than estimated X weeks flu norms, mortality be and quarter. to historic fourth Although of cases to an XX with appear total into influenza about we in majority

deaths population $XX are less ages at which business, of population is in primarily U.S. range. general is thumb continues XX,XXX there Mortality insurance deaths $XX the end Individual U.S. was of COVID-XX COVID-XX lower above our rule at In of life general to show where exposure. claim our the costs quarter, per data million, million XX, estimated

markets Asia. Aggregate were across underwriting results in performance by other driven favorable, strong all

medical the claim claims the consistent at-home reduction in material we September. for of the narrowing to quarter-over-quarter expected, end million reimbursement of As with eligibility that $XX occurred in at COVID-XX Japan saw costs

experience strong. presentation, results in region. year-to-date non-COVID-XX favorable XX results claims and U.S. both across and Asia Mortality the Slide Traditional underwriting had to Individual frequency Turning had underwriting overall very large the Pacific positive were our claims earnings also lower overall

were due offset higher Canada were results Health both and better-than-expected to mortality the to U.S. Solutions UK longevity and positive, frequency ahead Individual experience and in Financial underwriting favorable expectations and also Group partially primarily unfavorable results were experience. due U.S. severity. results of These Global by

a substantial Individual was from the Full year million decrease XXXX. of claim COVID-XX of U.S. costs with $XXX Mortality majority

would our prepared now for to questions. it open like We concludes remarks. up That

Operator

JPMorgan. The from Instructions] Jimmy ahead. question first go today Bhullar comes [Operator with Please

Jimmy Bhullar

assume I you've just we capital allocation had first buybacks and a as this similar on deployment. morning. in year? year had good Hey, the past Should sort of coming a question deals between

Todd Larson

Todd. is This

and the all activity our around look different looks active levers So And capital geographies dependent now, the right historically, the you'll active level and very and dividends bring it's I share deploy buybacks –we've back to it to the pulled pipeline going think transactions, capital if we forward, to that do time down share attractive see. look not extent I dividend deal and continue somewhat repurchases over different you on are will that the of be be think but transactions between see to into level excess deployment the capital, there level. will we through the that the intend we us

Jimmy Bhullar

in And just blocks environment more like of in asset-intensive alternative similar by have you backed from there's managers. like it asset a – businesses, seems Because for the those do competition in deals? you companies a non-mortality see lot interest terms

Anna Manning

the Anna. for you Jimmy, question, it's Thank

me let pipeline. shape the First, out

and and mentioned, good. right pipelines are do regions. we our various across Strong everything geographies very Todd As across our demand that

deal from environment, is larger biometric see underlying elements typically these risks, there varied steel risks, complex deals. more Now we varies to more and so of is also, see environment less insurance the it competition are will tend a risks or there on the as by size do we It less see mentioned, when when the competition and size you by and competitive. competitive yes,

brand. a our part Now of is so think table. have differentiate competitors, package, competitive how we way the about our we positioning, it, package It's the is really from all an I in about in our proposition complete Jimmy, terms including bringing excellent the to

being of strength this the for reputation delivering. our a reputation also add new compete package our that's deals. creative commitment we how that's And done long-term a getting complete have very that's have and we have and solutions, pretty we a to and commitments. things honor and We how for to and from relationships client and we win well-established counterparty RGA's business, finding long meet We strong, on

be And active to approach we again, pick it and pandemic competitive, you've expect be the to time of the time and spots through and time seen to continue entire is and our that sweet seen you've prioritize really be our and successful.

Operator

The Sandler. comes Piper John from next ahead. Barnidge go with question Please

John Barnidge

some last Thank Asia XQ year you, there elevated true-ups I that occurred time, mortality know is this very given fortunately. growth did that declined in much. Premium

mortality, this are at period should Thank Asia dynamic you. that that Now how impacting going geographies? be arriving in we also growth general but premium improved forward, we a of given in thinking about other

Anna Manning

new for were dynamics business the – Thank still that that be seen most really if I'll the been in you being question. I Asia lower up. there momentum we causing in some levels at through to not see have were lifted, all, that were Most, reflected picking – had restrictions historically. XXXX, restrictions of say also so those than start. would markets we now COVID-related

simplified with of do that about our traditional on In with terms growth we globally, new driving work accelerated are amount the a programs. providing services underwriting for or are like automated clients the programs. underwriting as these it's programs, for think or of or also fall programs. our cases that we fair But growth business, Things it's just of growth I the issue out not rejected

shared products And where then of expertise times services, for to are those cases and the past, that that layer are new all needs. it development underwriting as ability facultative complex. all the more many methods, or generate it's traditional new those their fluids we And also that on services, more that all in to support providing require product we combine we've

picking see up to an into growth that we see for we as and momentum XXXX is growth. I beyond. and get advantage see that That to contributing us. We contributing

John Barnidge

you. for about Langhorne degree my dimension related to some that size the a there the consulting you. work you that And vehicle number to remarks. of And of prepared to a of fees follow-up any Thank talked question, onetime that? REIT? kind of had Todd, items, or categorize the in Thank Is way replacement was

Todd Larson

push a as tax LDTI fees related to the some go that Yes, expense expense flow items little a – implementation There various ready other don't to through some variety through as to of variety sort state it one-off was type line, far the local – was added were There things the items. XXXX. tax income for up. and flow general income necessarily that line, of of but just the the get

quarterly financing for I average there range $XX would expect the I the now, as forward, be we that that our would can that million going say go it interest elevated to some we loss revisit going expenses, and we as expect increase including mentioned, in say $XX forward, I is million to rate more as would call expense, the it, to business and more rate in grows do size of forward. run of, to loss we the average and be corporate

million in from increase the But rate certainly, previously. quarterly an loss seeing of we're seeing million the $XX to$XX that sort were we

Operator

Krueger Ryan question with comes KBW. from ahead. next go The Please

Ryan Krueger

for a are typical was you the how of to full I us back XXXX guess, year give Hi, rough when look traditional experience mortality the sense U.S. your able thanks. you relative Good to I guess, morning. at expectations. business,

Jonathan Porter

this results Yes. Jonathan. the I think Hi, is overall, we for great I year. mean Ryan, had

very a in happy QX we're better in of mortality. that It’s with So claims as and mentioned. combination claims relative some well large to in experience, results I U.S. our favorable the QX expectations, particular frequency as both

our which, COVID, the again, excluding in end I that's at impact of course, ranges. came the lower Of of think,

our older is there, end to mortality $XX also positive. $XX for impact million groups, low So of as range, the at into which COVID the in also more resulted staying million go seen we've age that's the of

Ryan Krueger

deviation the any have you versus quantification Do expected? of

Jonathan Porter

COVID be excess it's have assumption our XXXX, the relative for – to I millions. double-digit if you some would I included – it again, pull would for expected mortality, which Yes. out think mean high in

Operator

question ahead. Bergman next Please comes from go The Dan with Jefferies.

Dan Bergman

I so business. about range a million think or for to in past, the quarterly $XX $XX asset-intensive talked you've expected million U.S. the earnings

for outperformed a block now. has a of the in range quarters Just given this row number

see benefit about? more the from like should moved a maybe drivers versus color the be trying interest give from the to rates. higher I how you higher? we to tailwinds is recent items sustainable XX% is XX% thinking if much has any that could Or more just to right of strong the sense rate run just on get still onetime wanted performance, But range of

Todd Larson

portfolio. the of bit It's, a quarter will lot higher business in is a that floating allocated of of to the the little to variance investment some the higher income you was assets spread some a the on that shorter and due of duration. the remind of I impact rate asset-intensive

that off we each with amortization as to business. year new some is need well there So replace

I think as I on $XX with forward. a – appropriate is of to update $XX we as that will now. million for that But quarterly stick million I think would range certainly, go the rate, I

Dan Bergman

it. Got you if update It could And just Australia. more color maybe Australia seeing profitable. been there. to then like looks wonder has what Thanks. give gears you're or on shifting any I just

of four the was it think quarters my last five count. I by

there you – you consistent is expect time? Australia? at path that now for where generator are color Any And over a So become meaningful more earnings profitability be you'd give a the would in great. can business maybe there point to

Todd Larson

Hi, in a more far consistent as as team signs producing Todd. seeing profitability. got in the insurance see a Australia. to No, We're well Australia very it's well making good industry, We've sustainable Yes. positioned it's market there, environment. as strong the positive very in it very

well. as So that's good,

can positive So in continue profitability forward we Australia. going we're that the optimistic, to improve

Anna Manning

been our the was position, view clearing the were successful meaningful side would making market. quite We a just prices Australia. question meaningful In a risk the not, in – in return just different than meaningfully we business past, bit of higher. your about new on on add the And it competitive Yes. – I from – have the

starting are see back that to us. to We come

So we on risk haven't returns. changed views our

pull changed that grow competition haven't the business. discipline, we and gradually expect our targets, that but We and us are seeing will a and from we with reengage and to start towards prudently

Operator

question Bass Autonomous from Erik Please ahead. with next go comes The Research.

Erik Bass

flu claims you And was the earlier could hoping you Are the normal season I the to the mentioned in you. indicating flu this talk talked thank more U.S. you year. Hi, you to quarter. the bit about? a elevated think mortality able link this I an about non-COVID that higher data than CDC frequency

some view see typically that quarter? to the you as do expect you So in first claims of of pull a forward would this

Jonathan Porter

Yes, Jonathan. question. for the Erik, thanks This is

So remarks, I prepared is in material yes, just XX to so. general about start the been to population of what probably my reiterate first or season said flu the evidence clear is this the and the have weeks pandemic that claims since in eight accelerated, there

and I think in showing second our increase of the in up we that frequency quarter, the see claims what's did own and impacted therefore, consistent in was CDC calculation data, with factored in the results. our QX an our year-end IBNR into half

updated What peaked be likely than of been the December would season deaths looking January, we've majority assumptions, And consistent seen so that the expect occurring into of since have and QX with the good. fallen prior is then QX, end which lower far ahead would has through It's the a normal year. have to our in for impact appears IBNR reporting the off historical deaths to we sharply shifted in to QX. January, flu in the as

Erik Bass

Todd. for one maybe And

of this actual future results that variance You've have mortality example quarterly your an under this traditional affect the quarter smoother in LDTI, so accounting, material earnings in doesn't versus a where assumptions claims? in past U.S. mentioned you expected LDTI should wouldn't is be the seen since decline the for under

Todd Larson

yes. Hi, Erik,

or will time. underlying majority will are be do of under to the of we smooth with incurred, certainly claims somewhat claims under that LDTI, the the claims expect and expect muted LDTI. any muted the It the cohorts the be on be smooth but volatility do over where So we volatility dependent the claims volatility,

Anna Manning

the will, it the both be minus, just so performance, will frequency, all new smooth will get over Yes, time, because of be but which or also to add, accounting expect standard. smoothing cause the is we severity, on and plus on volatility,

Operator

Tom The Evercore from next Gallagher question Please ahead. go with comes ISI.

Tom Gallagher

morning. Good

follow-up question a Just Eric's in the volatility. to change on

XQ dramatically So, to much the is it accounting, new with quarters fair much not going would different during perspective, as because the see to being say seasonality, stronger. have you historic from on obviously, a throughout earnings we're patterns that XQ,

us out? about to dimension see Will we're that reduced reduced quarterly it also say half. And a compare we also, volatility? for kind you consistent if So volatility cut quarter dramatically is last earnings $X. Are more be you can this Or in going seasonality $X when get quarter smoothed pattern to of we going here? talking at all

that. Thanks. So any you way dimension can

Todd Larson

qualitatively, can comments. some Certainly, I provide

the business. So, always discussed in business as we've long-term a past, is our very

standard So the the on business the does volatility the new and more and bottom-line as at a impact profitability take flow to of of long-term the of the time looks look the reporting at versus current business the short-term nature financial experience through GAAP the accounting does. over letting

of both So do call to a the as will under intend I and we have specific and on you the negatives don't as the financial claims far quantification new today. smoothing activity positives for reporting. dollar certainly see the the see

LDTI but and financial old to what discuss to reporting. information However, the and of March those results, frame call between the and GAAP detail differences LDTI the sort February, of have impacts information we and do a should towards some early are late the you more provide plan time new restated behind give

that April March, discuss in later on So, to again, we'll frame. plan time early

Tom Gallagher

should we dollar then assume you of did to with Where that? And your range. my much come up Okay. is the middle in did put how of to $XXk comment assume – a in range IBNR QX, on Did can mortality $XXk you wise you related follow-up you estimate? big flu is, you the

Jonathan Porter

Jonathan. this is Yes. Hi,

flu estimate maybe you of that things the for does flu, of includes I for sort itself. the So, than of thinking changes the an give sort can what rather other IBNR the than give we're you

pointed deaths. you our population wide around estimate into also how difference basis that like the translates range, is of a So book out, business. There flu between of there is a the

CDC said that can the rule estimates we sort it that in flu put of But of to thumb having I using change you be think on included about the would population not probably way think of an unreasonable through. of that, total impact is the our COVID think IBNR

do if additional out works pretax calculation, the be $XX from that's it pulled million million forward QX that of to probably you So $XX in recognition in of range been to QX.

Operator

question Barclays. is next The go ahead. Please from Benguigui Tracy with comes

Tracy Benguigui

We the see lower consistent you Good morning. frequency population. general usually mortality for your population. quarter on general were the the non-COVID insured in that U.S. fourth with versus side Yet the population directionally mentioned the

So what is I that. am wondering driving

Jonathan Porter

on percentage totally a Yes, what correct. meant I directionally. comment relative difference initial see versus general population. book – guess when in your and those, as population lower say the We definitely I insured is our is I

increase our relative comes better sort a deaths absolutely, see the book up, of than is population. our on So in mortality of of the that general go basis. through population But percentage general business when you

You can thumb as of to way of that impact. rule a use the COVID provided for sort estimate that we've

Tracy Benguigui

escalating also I it. are European you if on basically Got as same treaties reinsuring term the losses right. All the wondering U.S. mortality reinsurers that same YRT share view business. am future on

to with adoption. of IFRSXX usually European your call reinsurer instance, For out respect one that competitors

Jonathan Porter

Yes.

related the of early some across looking used forefront that, on both the so go and we just I activity we've in research been make think broadly So studies on to little organization, to bit this time, information, back to as the terms, perform I a is industry which get – actually came with up at an industry. mean,

performing we're I we for after in is level COVID. business on post So adjusting it's as to think term this experts What consider expected space. our be ourselves that seeing

there point. nothing I guess, specific So point at this out, I is would

Operator

The next question Citi. with comes ahead. from Please Mike Ward go

Mike Ward

us Thank morning. underlying wondering the U.S. for you, annual I of run traditional business. rate could the Good help you was kind power earnings thinking about if guys.

quarter, last quantifications this. mentioned think some have you might on I incremental you

Todd Larson

will financial earlier, continued are good business. the U.S. the information, I provide do segment. higher reporting rate. momentum be we around We rate mentioned with certainly LDTI the new under and update No expectations when as very specific We provide standard. on the But the some well we from the updating, as more environment we positives run comfortable new see updated as business that generation, in the can interest

So, here. will more we in updated few information certainly and better a provide you weeks

Michael Ward

Todd. Okay. Thanks,

or guess, if a think we RGA, should opportunity about maybe strategy, as overall, a growth growth about for we I in offset Curious so, about Asia as return the the the traditional spoken change U.S. years? maturation in natural RGA's over to Asia you guys that in time, growth And about And think have of prior could business ROE capital Asia potential strategy?

Anna Manning

Thanks question. for Very question. that good

So, it piece out. let me

that I in were there Asia. to think a few components Strategy question.

then on I on both traditional speak the business So, business. to and will our strategy our GFS

On the Traditional Business, really, package. I mentioned it before. a It's around bringing

a us. to products, competitive programs services. leads for much better and new underwriting position It introducing about with supporting It's them

transactions to – of that exchange, the agreement idea we're because get work that to fact, business. the get exclusive of In the on that we many clients and the deals are in and all on reinsurance we taking

strategy that and in footprint but further, Asia been, successful the ideas, in it's while not That's can growth growth a That's can you – as that's for ideas a quite of see, strategy. Asia, been successful been because the new strategy, our market-to-market. a we global a leverage

So growth another lever. again,

many been business the point knowledge conditions. advantage to stage And And it the many, also years, On and And development. deep very and will see been is, there decades. for of for really, the I an what earlier also growing successful requires we've that of is would an it's us, we've that GFS, been you business. we've

have on very we experienced. ground, familiar, local are very boots the And who teams

would programs creative for engine growth that we So see other side. and another is us opportunities. Look, momentum in good the Asia. and underwriting we GFS markets, strategy expertise in and of and development say product I that growth But also on see being

have Asia balance we our on Yes, forward. business of growth, will higher as grow fully regions move to in rates expect our but all we

Operator

Credit go from The Andrew Kligerman next with question ahead. Suisse. Please comes

Andrew Kligerman

of we at look up and your flu kind get know historically through XX,XXX. clarity at midpoint around, if numbers. of Hey, questions. it's the good trying season we flu morning. I around am XXXX, if it few last back came the the But to I was about XX,XXX look say, still XXXX say, in from, it these deaths estimate,

the flu? quarter handle am what it Or the to due I was mortality something That's So trying in a to else? unfavorable on. get was

And then was forth the and IBNR forward. think question asking I about pull a and Tom so

parts. for you quarter assumptions have So next flu that’s two mortality, lowered your

Jonathan Porter

is this Jonathan. Andrew, Yes.

Let me take a crack at that.

data we're the So, I What appeared the think as average I same as season QX right. the flu difference the to level in now you're typical have is opposed deaths QX. those seeing is guess pre-pandemic. in the largely – key flu about

that of not quarter. it's has flu that be earlier, just the we've occurred why amount impact the IBNR different but which it is will end the So adjusted probably, our at absolute of the

that's the why then also we effect. talking were reason pull-forward about And the

the all other there else be other mortality of So the equal yes, first see being things things mean winter zero would weather there'll seasonality doesn't in than to quarter I affect and flu, because the too. seasonality the other year just expect, lower are It QX. in

of portion flu to the has shifted it, been QX. but we So, think,

mind, well. in to time, switch that Todd talked smoothed the keep impacts out to fees, will seasonality that thing largely any experience as about base as today accounting of is already we over mean as has be of other full will One course, LDTI again

shows in up QX. what will So, also that impact

Andrew Kligerman

And with be the share one Is mortality required accounting that under will new is? disclosures the of LDTI? that you that what actual will

Todd Larson

when underlying any start more seeing you'll on underlying Andrew, with business the book what's some including material in we've of our on going transparency updated assumptions. manner certainly,

we to that forward. transparency start you'll of that talk and seeing some can So going

Operator

The comes with Goldman Sachs. ahead. Please from Alex next go question Scott

Alex Scott

Hi everyone.

I fits I that is I direction have sort was the just the had high all was I leadership changes. company could sort the of as we some and if transition. into one on of still we Tony through that First level unpack of how wondering and time. appreciate you of wondering think

Anna Manning

knows and strong on the risk been us clients. continue knows focus He for expect business. for continue approach. people, and well. partnership our Tony years. Thanks believe He expertise will our has Tony Alex. to our solutions knows that Morning, question. He XX management culture. really approach. also risk with industry I our continue our will he'll I the technical He

the to directly answering year of you'll for from through course me many him, than him. rather have But this question hear the opportunities

these on York starting call the our be call Investor in the joining hosting our which we will QX and New calls, with in including are he So he'll be summer. at Day,

And see going XX out will you. transition and remaining clients, the the to and spend to months investors, Tony see also our of I

and there Thank So to great I'll you. I for it – But leave answer. it Tony leave question.

Alex Scott

enough. Fair Okay.

RBC I Second whether or one that block that is, other impacts, stuff had legacy U.S., have things I the from like impacts, type to in for heard relating so of you environment well under reserving think, on term just principal-based forth. like I sort even some companies it's we've transaction had ULSG the in mean Be life wallet and and

some of help sheets around increased activity balance interested So, you're optimize to I was their seeing these companies that a bit? just any if

Anna Manning

have say in particular, that we Yes, yes. it were on basis. at on any large both the ULSG. basis would from that USLG because Haven't for. products we and in deals looked far – completed flow we more were in-force too demand what apart our Yes, Universal risk, part, block looking have, in Life on an new business on And past, the like with I seen clients

been successful Their it's are I expectations elements business has providing mortality expectations reinsurance compatible. on say But participation been and the that and we limited so products of risk on just as our starting to our our we've part performing. weren't would to see, like and just

demand, see clients I seeing higher is starting some to adjust interest their we're that we to expectations. higher are would what addition in say

are we another look. taking So

strategy. We're We are our our not going or our risk not changing targets. to change approach return

So demand would there. But the I not if enough. sure we're is yet close say

to of support have clients be all opportunity. it. love We'd the do and right the knowledge to We able our to capabilities for

Operator

ahead. go comes Ryan KBW. question next The with Please from Krueger

Ryan Krueger

more of smoothing I the more we guess, going if just state give later. you and had for an come that see the – thought that endemic I a one of I that we But just I have for material remain to kind level excess have LDTI, thanks some on aspect LDTI a impact wouldn't would ongoing under know just Hey, follow-up. period us in Or info question. you're anymore? meaningful time, results? guess is that through of your have as have reported we would really mortality much a it

Todd Larson

No, Ryan.

So, mention time. we mortality over the claim we would experience well it again, currently And come any underlying through always is. as some underlying on out expect, activity reporting may again, the new adverse smoothed mortality, depending well to positive where as way the or do though, works, the would both cohort we or of be expect

given to But the new experience. long-term the of accounting of shorter-term is, smooth the point a out it's some business

Anna Manning

have of business. point where in future of I We're pensioners a the cover present have like a two a to of stage we But also book roughly business. book Ryan, longevity out, substantial we have we and And value other at now of benefits mortality billion. $XX-plus million have Yes, we sizable do business. order

in there you've with and really the when turned headwind available for us confident out, consider sort tailwind, the have multi-decade are earnings offsets are a business other global then power that parts So, this yields of we to yields we from sketched in the have in of our turned business. of this that – environment

Ryan Krueger

Thank you. Okay.

Operator

over any This like concludes conference would remarks. our I closing for session. to turn question-and-answer the back Anna Manning to

Anna Manning

continued your for your you Thank and in RGA. interest questions

this XXXX growth our right global capitalize power demonstrates solid our We're see we opportunities on strong platform. call, It earnings was continued the very throughout resilience and this across a stated we positioned markets to of the and was As a our year. in quarter business. well

our value will to And And call. confident we our I for remain that that substantial investors. deliver concludes fourth you. Thank long-term quarter continue

Operator

now you The attending presentation. conference Thank for has today's concluded.

disconnect. now may You

Reinsurance Group of America (RGA) 3 Feb 222022 Q4 Earnings call transcript