Earnings call transcript Q2 2023

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Operator

Good day and welcome to the Reinsurance Group of America Inc.

Second Quarter 2023 Earnings Conference Call. [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 second call. RGA’s XXXX quarter to conference Welcome Chief I Anna Tony Manning, on the Jonathan Cheng, morning with call this Porter, and RGA’s Officer; Leslie Chief am Officer. Barbi, joined President; Investment Risk Chief Executive Officer;

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

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

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

call will I turn now, And to the comments. her Anna for over

Anna Manning

and performing today. earnings adding earnings in reported growth for that business with very Todd. you joining business Good you, many $X.XX regions per call of quarter morning second a share. This and the our well quarter strong Thank was another we of quarter thank as adjusted success the engine. meaningful night, is engine long-term as ongoing value strategy lines our the of that Last well. our also power There’s underlying demonstrating operating to

include favorable U.S. businesses. favorable in health to turn as group in experience few quarter, of mortality me individual a which U.S. highlights and Let our as individual the our in performance well business the

as experience favorable yields. business higher Our also Asia traditional from as claims benefited well

money longevity performance continuing both remained strong in attractive impairments number another years. over minimal. the quarter Investment as spreads had were and trend business and with quarter Solutions new excellent good Financial contributions was Global the of rates performance a of from experience, favorable Our

on quarter well strong our our another and capital new work. business continued withstand economic business front, the opportunities. positioned the investment $XXX We of and any few quarter through transactions, $XXX organic in In minutes, up and to is to added Asia. million to ongoing in will growth momentum capital believe a our expand notably portfolio total management picked uncertainties. And in-force million on other into year-to-date quarter’s put on bringing We deploying activities the successful future very the Tony

power bringing state with pleased to transactions $XX am pipelines, of $XXX quarter, repurchases, repurchased I healthy start total are million and the In increased shares, also with year of geographies at which the year-to-date the we opportunities across with we and the dividends. and the share, earnings in very levels about our many share our active growth very risks. of capital our quarterly million our and the X.X% has Investor to busy dividend Day, management. to the recent we the a we $X.XX opportunities. our increase highlighted X shareholder for reasons months This a our per of representing At business excitement been in have

consumers whether or driving efficient help talked effective stronger new ways for products reach ways more better clients a favorable we well or find is to and dynamics industry so do to We about what to that underwrite in demand manner.

risk strong demand see increasing clients to meet and help also of needs We consumers manage better for to the new products changing demand their our capital better and needs.

opportunities. positioned are all those of well from We very benefit to

thrive and expertise, the highly of necessary We risk this breadth complex industry. have crucially, depth in to the and discipline capabilities, technical

to to in our in shareholders long-term RGA’s partnerships, years attractive value deliver proven scale our ability to future to is our strong We of have clients delivering continue substantial successful our a returns over the and great growth collaborative shareholders, and which strategy deal me for and culture, that gives many global to and a client and confidence come.

RGA, in and you to Thank interest business for to now our additional I support hand on momentum. it Tony thoughts over will continued provide your and

Tony Cheng

you. Thank

As we from dynamics, these to and industry many well benefit we opportunities. positioned are see favorable Anna mentioned,

are During opportunities. our PRT, business. recent areas growth asset-intensive and our traditional, Asia Investor Day, Asia traditional and we highlighted longevity with U.S. particularly X four areas These good

all We are four in seeing XXXX. strong success across

longevity volumes Europe with earlier Our swap and delighted £X week the we strong are business announcement transaction. is experiencing this longevity the of in billion

region. of We business a continue see to strong pipeline in the

to with Asia, all our Our with confident sizable prospects our continues businesses for we this U.S. business momentum, demand increasingly In a of strong our and recovery driving see We growing the in strong partners. South success new quarter in in in momentum Korea. we have economic there and PRT launched this are is gain activity market. products particular

in During a launched China late new in of Investor spoke Day, we XXXX. product we

of visitors We These actively to the product the to our additional material are source business in pre-pandemic insurers reception product with of business market insurance has of closer are pleased other visitors Hong with market-leading the mainland are of ideas. on Chinese Kong rebound levels. for market. in working the this Hong and the a Kong similar tailwind And

examples grow are insurance grow new by market. These with clients we underlying initiatives much of the very how help partnering product to

by Asia and the quarter in the are another with their new important partnering with optimize we asset-intensive multiple to risk capital management. business, is best Japan transaction This For clients client. exhibited this

Japanese Investor expressed by the in our transactions as of sizable we a of reinsurance was grow expanding companies element our international were use companies. was important within of new how and domestic the example which largest an is with market, nature an during Day. This strategy It’s transaction one we coinsurance previous the operations. A with number of of

lead our Asia solution new capital exclusive providing first-to-market are to transactions around standards, adopt that capital region. the teams As regulators

shares months. U.S. significant for in for over value but focus has only pools value being our we continue our proposition. to strong Combining also broad programs. of XX business, These our many our with demand business, this range underwriting traditional RGA strengthen directly in see relentless Finally, reinsurance proposition not reinsurance major past generate led programs the chosen client

are winning of that part of the business the as breadth model risk our this with address how As just our show new is and solutions The volume I business. we business large you pleased product of see, communicated What of a previously and We clients. wins. just capital complex to our we is pleasing is the can RGA’s examples power development capital provide expertise. cited underwriting, and needs business have to management the are

chance increased When development, with they the business are all business. winning exclusive proactive combined we of

value the insurance partners exclusive positive are and We innovation. ultimately continue through RGA and and confident pleased year forward. greater and with this consumers going from transactions this generate are results These for our transactions the industry benefit can particularly

replicate through markets teams strong can we these successes addition, worldwide. other in In our

you over for turn I Thank discuss to your financial results. will RGA. it interest the Todd in now to

Todd Larson

Tony. Thanks,

RGA quarter’s was reported $X.XX, currency which includes a per XX.X%. income $X.XX of pre-tax share. adjusted on quarter, adjusted the foreign to operating $XXX earnings for of the operating trailing million and adjusted months Turning XX results, headwind of The share per equity operating return

notable XXXX operating on Excluding the the as equity adjusted XX-month referred was changes return trailing items, assumption to XX%.

currency up the Reported and deployment adverse in as for strong adjusting in-force both quarter. We transactions X.X% are the and well pleased other X.X% capital on for and results basis. new into quarter results. After the year-to-date, were impacts, were X.X% up premiums business production, foreign currency a premiums with constant investment quarterly as

business to continue and and activity, As Anna in momentum mentioned, contribute to this growth over strong have Tony the expect we to premium we time.

onetime experience the mortality Turning Latin earnings that by occurred segment mortality found lower in be This favorable on RGA’s in mortality Traditional Good approximately million. by cohorts. older reflected website. results uncapped both Slide offset results experience widespread The group presentation X partially favorable and The and quarterly age individual Investor large our individual $XX business. items our and to segment America capped experience health, some can better-than-expected of in in and Relations is driven mortality. on claims and U.S. individual our

current we spread experience is as has discussed, mortality the results under And line future. in into this saw are bottom LDTI, a modest As the of on untapped quarter. cohorts what on impact the previously the that part we period

are the results The into business The spreads, strong, items rate on improved including were mortality in long-term investment yields periods. higher future future had quarter, asset-intensive impact reflect to but onetime adverse to favorable flows. were floating certain favorable an the reflecting expected second that actions The securities. results U.S. together cash spread be

the Canada Our experience. longevity Middle traditional favorable U.S. our Africa results and Capital reflected the Solutions U.K. expectations. consistent moderately mortality favorable results the Solutions business EMEA’s population mortality Europe, results traditional reflected favorable slightly in Financial mortality with experience and Financial continues experience excess trends. to in perform with reflected longevity line general reflected business East In experience. business Solutions unfavorable the business segment,

in Corporate pre-tax the rate. higher and $XX and cohorts experience. Asia quarter Solutions well, Year-to-date due of traditional range are claims the results in operating expected Pacific Turning business experience, financing of favorable to most favorable which Financial primarily claims the of through to costs general Results business. with impacted. to reflected Other quarterly came spreads line reported expected investment million and Asia reflecting LDTI some more segment expenses. than loss adjusted due timing The Pacific the run performed the our second

X contribution in to partnerships. to for on was reflecting variable primarily lower X.XX%, non-spread the portfolio investment quarter limited on Slide XX. income, investments Moving The yield from a

impairments reflecting with in higher structured and Our new portfolio pools non-spread assets. uncertainties. to our through we economic Credit ongoing well opportunities securities rose move minimal, were we any as and business, positioned X.XX% private the money believe is rate available select market

Moving on to capital management.

capital $XXX $X.X on quarter, in-force billion. we remains $XXX Slides million to As XX and deployed excess bringing million. liquidity transactions our In with and other total strong, into approximately capital capital of and XX, of the position year-to-date the and ended quarter we the shown

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

transactions expect We and into dividends shareholders capital excess active and through capital remain deploying other share repurchases. returning and to in-force to in

rate per a we XX, over a pleased follows share first the increasing our compounded summarize, record beginning since the value periods, Slide of on XX.X% XXXX. strong performance, shown quarter To at growth long of including we which many second book annual quarter. track have with very of are As

Our resilient business is power. underlying earnings substantial with

and opportunities strong, good across see lines. and we is geographies Momentum our business

up and for returns to shareholders to our open over Looking for positioned questions. deliver like future attractive to now it would This the time. we We remarks. prepared forward, expected well concludes are

Operator

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

Jimmy Bhullar

I of good had couple a questions. morning. Hey,

at lot than think it’s new up points. the would up First, on It money I greater yield. faster quarters basis by that rates lies went what in a past in interest your a magnitude suggest. XX several slightly over gone And

have to Or was income? a investment allocations normally about that if been just think you certain your about as think And this would lifted quarter? it So what wondering securities is then… this normal that it we beyond mostly it think level into

Leslie Barbi

go ahead. Sorry,

Jimmy Bhullar

don’t you I’ll ahead, the go then question ask other and Why later.

Leslie Barbi

have don’t I Then to remember both.

Yes. for Leslie question, It’s Yes. the Jimmy. Barbi. Okay. Thanks

So quite the up a did new rate money bit. go

market yields As went you know, up.

XX the investment in have shift had think points. because grade index structured select is and private securities. up basis some some assets We mix I very opportunities attractive we did

I not of X% sum a expectation. is bad ballpark there both. So a But think is that

come the little So normal off send mix, it’s we it to a back but going tremendously. will bit, down it

Jimmy Bhullar

on your going lower rate, And tax has expectation one-timers then the – and rate what’s were than What it just been And Okay. expected. had normally the there what was it any was for we forward? tax there?

Todd Larson

positive around of rate earnings we in also, this of filing saw taxes. is reduction around return was tax tax quarter a the little to world bit And various filed year should emanated quarter-to-quarter. the But to and No, mix that rate, up from where that we returns what will one the have to provisions this the the and how from, I resulted translated we true the a move when the the in the say. time tax and tax

Jimmy Bhullar

Okay, thank you.

Operator

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

John Barnidge

to maybe thanks figure, for about about you some little know Can roll-off it’s gap yield I opportunity. expenses, VII? a the investment bit. yield the portfolio so talk morning, there but Good the a talk be gross ex may

Leslie Barbi

is Sure. Leslie Thaks. again. This

the right, some to timing due little – VII, tends was on vary. came really bit off the a and to that So the quarter it you’re yield, portfolio ex that in expense

rise points now. to probably So things are continue rolling off basis up things we’re equal, the to XXX that all we expect yield right portfolio picking about versus

to rates money So yield. the new portfolio be continue to additive the will

John Barnidge

that that something And very Is has had in structural of mortality my question. Thank a opportunity? NHS unfavorable that some much. EMEA addressing bit that you. I you, repricing know that a an improve Thank challenged need follow-up to Or is tail. profitability. is country.

Jonathan Porter

the tightened certainly, current Yes, expectations reflecting here. and environment in Jonathan for pricing. mortality UK we it’s our John, our Yes. are the

new action we a perspective. think I appropriate So have from business taken there

a have business we Just that in a reminder UK. the as very well book longevity of sizable do

in general come a little results the current we’ve through gains to business, So headwind the period, It’s we mortality, mortality the Solutions offset mortality bit for. more traditional the tailwind our a providing in than a population longevity in which accounted Financial our where to longevity although saw line, our that higher the business, actually it’s and business. the too, also drags providing

John Barnidge

the for Thanks answer.

Operator

The next question Carmichael go from ahead. Please Wes Wells Fargo. with comes

Wes Carmichael

Hi, good morning.

what Just hoping pension and like? pipeline of the the size your risk looking risk of in could on wondering U.S. in transactions the what’s of maybe you. provide was kind terms for I of timing of guys Thank just XXXX, sweet you some color the that’s transfer outlook and kind spot

Tony Cheng

Tony. is This Wes. Thanks,

we previously, we’re quoting shared is the and the parts pipeline world. natural And of we’re now PRT our look, the pleased for strong of strategically from in we’re very progress U.S. a we’ve in with that there of longevity know the making given opportunities. the We that other the exported actively we’ve that market. very As very got of the and sizable very, expertise we’ve home mortality are block

upper In that is there because market partnership on competition size, feel less tend we in the terms to focus area. of end the we in

haven’t we’re transaction – the transactions anticipating we with year unfortunately, So future. this this transaction closed closed future earlier quarter the in the eagerly and

Wes Carmichael

pricing in I’m have Tony. impact in-force wondering, from Thanks, you quarter And actions. just did any the

bit in the benefit of quarter little there maybe first was a think results. I

So just of the through second any quarter there came results. in if was that wondering that

Todd Larson

Hi, this is Todd.

first this not quarter. but talked actual quarter. repricing really the activity, quarter, We about this as far As in anything activity nothing had the in

Wes Carmichael

Thank you.

Operator

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

Tracy Benguigui

realize information that’s from margin, seeing seen I are least mortality. a reinsurance. you. ceded any favorable we you comment made pull wondering at you’ve on adverse I’m for that VUL Thank that forward, any the by gather

Jonathan Porter

book I won’t at the Hi, quarter level, prepared and was as product in-force drill it’s Yes. business. our credibility sort in really like The have a of start But total, seen remarks, down this Jonathan. Tracy, you once comment mentioned quite bit. the favorable specifically of we to falls in parse experience for it’s sure. a reinsure reminder us. concentrated mostly by specifically, risk ages, our on current been the more is that business, claims book again, driven favorable for in It’s large of period. we most in older and And the VUL, where more of mortality to get fewer it [indiscernible]. the for

Tracy Benguigui

you get. repricing I quarter, asking margin. that just Yes, quarter some I was that totally about the well? Was done Last this as efforts. you’ve shared done

Jonathan Porter

want that? Todd, take do to you

Todd Larson

there first we Hi, little a in some specific any Todd. quarter. it’s Tracy, But during new activity. No, did activity mentioned repricing the do I repricing the ago quarter, not while Yes. second was as

Tracy Benguigui

you. Thank

Operator

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

Erik Bass

this quarter environment the just whereas the the guidance the Was expectations. growth power in Relative given you’re came above you this experience business you. provided favorable improved and to Day, earnings thank Investor macro quarter seeing? Hi, Asia well earnings at this

Todd Larson

Yes, Hi, Todd. rates financial Erik, and targets we’ve Day back run at updated the it’s mid-June. Investor provided

updating experience that a not through at this the favorable second results that It’s seen in the we’re segment, lot see of current point. quarter. especially we’ve great So to that and was the in in that quarter, the came of any

Erik Bass

some – provide more you can sorry? maybe then And it. Got color on

Tony Cheng

volume well the the number honest, but mentioned as globe, to region to bullish in the as seeing, I across going the about and just Asia, mean, as the very, earlier, was is and the we’re the of asset-intensive not full. just be business strategically, And of across the exclusives. we’re traditional I both very are just I pipelines breadth very add, business, just obviously

positive signs So there many, that is working makes more more – our about more are places, very in the us strategy that obviously future. good many and and

Erik Bass

sort is in business from And versus of provide Asia block you. just drivers little that. you Can premium coming and on on deals. Thank much new color maybe growth follow-up the more how a a bit

Tony Cheng

traditional it’s that the on. the our Asia, business or – really growth focus, look growth we at mean, best premium in the say measure at look I’d in and growth business focus more I when we for we when organic

not businesses So both of for opportunities of on driver great say growth the would I we’re across side best the reasons. the block just transactions, the seeing focus sometimes in mainly for premium indicator. But premium we is is general, lines the organic traditional. different on on

Erik Bass

Got it. you. Thank

Operator

with comes Please next Jefferies. Suneet Our Kamath ahead. question from go

Suneet Kamath

with of a Japanese of and transaction. you the mentioned that insurance is company, a deal did it traditional type first like you sounds that Tony, this Thanks.

there? that for opportunities of additional a And was any some expecting are create know the in guys? years in you going motivation couple away. it’s Just color that seed of Is the terms I to what ESR, for you

Tony Cheng

Yes.

This prepared Let transaction, many yes, a others breakthrough sort markets absolutely. answer very that. me of remarks. – of mentioned mean, as follow. I as I sorts important then a take get the was in once you Japan

detail, go one too was opportunities carefully hopefully watching the anticipate So seeing are and big would Japan. domestics but important is very is other I of driver we because we’re with is this can’t a and much suit. very following – into the there in ESR domestic,

days, of on the the on potentially can maybe side it. companies effect say, in the other an and companies you that though new of are adverse much but see growth Japan, the out you’ve listening a that. preparing capital the calls capital that products last it’s obviously the intersection few very in And having management of part for to to So absolutely XXXX, just been side, some even of

absolutely that intersection with of combining strong focused have. positioned new So we capital development two which solutions, both solve we we’re that those problems, to obviously that very capabilities that’s and are and why product perfectly on is

Suneet Kamath

Todd, guess sense. are $XX a share quarter, Or sort million the then we And as going for is change? of expecting repurchases I saw Got forward? it. in the you about that run rate we think to pace that of that should Makes

Todd Larson

Hi.

continue will manage over to we time. So capital

I One get back over risk into the then maintaining think about, dividend, we’ve share like is this as business the our we the capital have levers. good of we’re time, out sort taking, that for with transactions we’ve we three deploying the and return a – it we we balanced and talked repurchases. where

capital our on And capitalize if that to so then like think levels, continue see managing the certainly we other position position in develop, in be continue opportunities think you’ll we’re to healthy I And we because and a levers. a see with in I us the we pipeline. to manage active very will those current don’t

have to actual program So as I manage use effectively continue of I you’ll level. of don’t one how levers a in we an think see repurchase for the place, us share but the we stated think capital that

Suneet Kamath

Okay, thanks.

Operator

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

Ryan Krueger

you some actual given on quantify, impact. to Could little the I more the bit is more this quantification kind think expected moving stable favorable perhaps LDTI, experience how morning. challenging Hey. under U.S. a it’s in Good quarter, of mortality provide to the because mortality results

Todd Larson

Ryan, bit actual Todd. LDTI, underlying Yes. it the it’s little Hi has to I a see guess it difficult more experience. made

contracts in for the a for spread and capped the comes quarter future. the and and through As flows cohorts is some out currently experience under uncapped some reminder, current into the through LDTI, forward

be expectation based and on our remaining experience $X in is the underlying million the around then favorable of million spread and about for of that $XX good it future million and came into $XX periods. in quarter think to a U.S. the was the quarter mortality will going that way Specifically second through by

Ryan Krueger

transaction, on longevity you much give will helpful. Thanks. quarter? Great. can deploy very how the That’s reference then in capital large that a European And of the

Todd Larson

don’t numbers. specific normally We capital transaction provide

Ryan Krueger

Thank Okay. you. Got it.

Operator

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

Tom Gallagher

Good the for morning. re-measurement you drove quarter with comments loss square $XX traditional what re-measurement million the loss? favorable the Can mortality, in U.S. of the

Todd Larson

And take be – cash In were gain the date current and just claims that any relates to through expected so relates related anything the that on It This re-measurement or to usually, including again. than the of contract, can the doesn’t could be I to to cash or flows. re-measurement into the type in Hi. loss future it that the includes gain experience and numbers mainly more flows, premium. premiums, claims forward treaty a adjustments future relates lot it it’s the sort impacts the account. date changes – activity. impacts period, impact it of that experience. inception Todd provided or things is comes that loss, impact transition would It not of of that in lost Yes, to all from you or

Tom Gallagher

And the U.S. Okay. how long-term the how is was performing. underlying care business, within traditional

the had peers experienced Did some same? see think some claims. you elevated I

Todd Larson

Sure. This is Todd again.

take ours I issued relatively blocks, Just our block, recent back, reminder, the some step considered like a the not was maybe is it care was that’s, a of lot era in a guess as long-term of legacy onwards. block XXXX

some So, product describe way between underlying long-term fair much and versus insurance always the the of terms, it’s think type company policyholder care. I the are it, older the I the more fair

experience a been hear at on seeing. performance no and thing. or on claims that more little strengthening are about block. continued we might the point expectations type elevated the this seeing that say we You I reserve based But concerns have would our our within of bit

we happy with So, are our block. specific

Tom Gallagher

those? one-time on why the it. Can that improve elaborate is U.S. this or one, final And cash you you mentioned to affecting Got then in it quarter. that? million $XX items tread What just were negatively flows were little going earnings And of bit future a earnings?

Todd Larson

Yes. Sure.

some had we from business. sessions we recapture recapture some retro recaptures retroceded some – perspective. had added We we our and then on on had of client that a So, where

reestablish that to reserves had we business. treaties, retro the some recaptured we when so And on

amortizing created about would primarily going positive produce quarter. $X to around forward. of it down the annual the size would on loss current over expect the impact impact we But adverse million I And of impacts basis, that positive in an time. that So,

as managing make. are overall our good was in-force we an constantly decision and viewed And what overall this was economic it a make a to from good book, economically, everything like perspective. we to So decision

Tom Gallagher

it. Got

I segment’s So, mean that think to that $X it’s fair? should when million modest about is but we upward a be additive, small, the guidance it’s presume I adjustment, –

Todd Larson

That’s is things both time. always yes, But positive should be fair. over ways. There a it go that

Tom Gallagher

Thank you.

Operator

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

Alex Scott

a have my but I U.S. questions and on would I about what in transaction thought just the competitive have of been lot you Hi. environment. the answered, is ask volume the year-to-date we guess I take seen

see of So, participate those deals bigger that quite we didn’t not in involved, announced were some RGA as some as of counterparties RGA. the known well

that was that? perspective on end what see So, through And the of how your you do pipeline the year?

Tony Cheng

Yes. We we and that we pick the absolutely the value add Thanks spots we this our still Alex. are transactions can and active to. in most very feel market,

then that the of So, competition. pounce block and But be when assess appropriate the we with have we most that’s that got company the regards our are manner opportunity the ready gain an pipeline, to probably the very confident area in capabilities attention arises. to all to

are very transactions in the area a announced, there around we could closing in times, and there YRT times, mortality want these meaningful. capital say transactions. that we to get meaningful financing could participate of they transactions us. opportunities part for So, and a big are be do the meaningful of when very are pipeline that I edges a optimistic at times transaction, at it At be still transaction, are

also. color So, to share wanted that I just

Alex Scott

the the mean about all have. helpful. at to you all income, are And but may I portfolio as talk slow floating the just you am funds there, guess had that just And maybe much thinking how can rates much net rate level... then going NII benefited lift back not down from that in investment Fed it’s is through do I you probably Very potentially yield it. been – Got raised I in

Leslie Barbi

Leslie. it’s Yes. Alex, Hey

the the really other flowing still assets to the transactions and of out was quarter we a of hedged the to of and But the you liabilities, at value NII, there boost has risk non-spread So, we cash relative that combination that extension trades been on total look in had net fix. when bit a benefit some of are little things, floating. of have in from from benefit floating actually and

left not spread really more the much is there impact still little business. a So, in There there. bit is

sensitivity on we fall total we hedge down some that, we has been done some hedging. if more But than the So, forwards, thought certainly, trade – an as rates it’s keep have more. we eye going whether extension coming were and to may the

Alex Scott

Got it. Thank you.

Operator

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

Mike Ward

Thanks guys. help size if in this, Asia for don’t would you if Good of I you way the as quantify similar you know favorability a did kind morning. but in us could wondering U.S.

Todd Larson

our this little Mike, Hi it that deferred spread is of was second segments, the through the is the respond the most as into did of now or across quarter, guess the business future. that very future in come experience to aggregate to right Todd. I quarter rest the way look of best you in into the favorable in the

Mike Ward

Okay.

that – Asia? like mentioned Do think you the it was I you so $XX for million So, favorable. have U.S. traditional,

Todd Larson

is Maybe range the say, to segment, I A if No. you variance some one of and lot was treaty Asia Pacific of favorable entire of would way the to Asia, it the experience rates. put look that most some run other due the, true-ups. to at

Mike Ward

Okay. And then back on recapture activity. the

help Just going and driving impact what’s wondering forward? if expect of we you should that can us sort understand more if

Todd Larson

our ongoing our part management is see business appropriate actions. just where there of overall No, we of take opportunities to some it’s and

We that. will do

quantify really is there of way any future no activity. sort to me for So,

Mike Ward

guys. Thanks Okay.

Operator

Carmichael from follow-up is Fargo. question go with Please a next ahead. Our Wells Wes

Wes Carmichael

taking Hey. housekeeping my one question. Thanks have item. for I

I think on corporate, you guys mentioned that there expense might be timing. some

confirm, $XX $XX the think million, quarter? million kind of $XX corporate, to the of loss do to just from like that to you loss tick wanted range million $XX there in to So, the second back I kind $XX should million million

Todd Larson

Yes.

and expenses. general financing some So, higher the what of some costs second was there some we saw quarter, timing in

manage look might the you for are pretty that can are run run but as to that or higher we go that… maybe the suggest be can or probably on end for year-to-date rate that’s best for we towards of I corporate, forward, we I much tightly If give information Hopefully, What we the as possible, as the rate. guidance probably point maybe would corporate.

Wes Carmichael

capital, just tick transaction a of view about healthy, year, it where to of And on expect that And going of like down I should lower? view kind manage bit kind like seems the seems billion. been it into on will it should we volume on it continue has any wanted half forward? we just to $X.X capital pretty second think to excess you so did excess and get just your the

Todd Larson

Sure. Yes. No.

position As we And some of are to that across through to advantage we because seeing like down, that very position a level activity we return of transactions capital ways pipeline good our we bringing excess the other take transactional or the healthy to capital are various currently think are we again, geographies. comfortable mentioned earlier, shareholders. in I

to of the billion So, but and at $X.X yes, bringing comfortable quarter, the transactions. into forward some pointing it look end down good

Wes Carmichael

much. very Thanks

Operator

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

Anna Manning

a in your another questions continued you your earnings further strong quarter, global and demonstrating was substantial RGA. for business, interest we Thank in our are Thank you. leader. power for This the

investors. and many positioned growth have ability attractive hour, We to to the deliver heard to confident course of to are our and you that capitalize through opportunities last our returns are very about well the on continue the ahead we in

and call. that quarter So, second everyone thank our concludes you

Operator

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

now all disconnect. may You

Reinsurance Group of America (RGA) 4 Aug 232023 Q2 Earnings call transcript