RGA - Earnings call 4 2023 | Reinsurance Group of America, Incorporated

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Operator

Welcome to the Reinsurance Group of America Fourth 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 Fourth Call. RGA's XXXX Quarter to Conference Welcome Officer. A I'm Cheng, Officer; RGA's the forward-looking call information Chief Leslie started financial we with Tony this morning Risk Porter, President Jonathan Chief and Officer; joined reminder regarding Investment before get on Barbi, and quick measures. and non-GAAP Chief Executive

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

terms all Additionally, we include call, over which presentation, our our Throughout on for the I'll reconciliations this will non-GAAP the of earnings to again turn be are website. is call, these GAAP earnings a may Please website measures. discussion measures. we his supplement comments. see our from on provide and Tony during for of posted the now financial presentation which release, posted slides the the and And course to earnings referencing of information call financial quarterly

Tony Cheng

quarter and adjusted $XX.XX joining Good night, $X.XX reported Last you the operating share. of per for share, fourth morning, earnings for our per the we full for of everyone, thank and call. year

new investment ROE, in-force adjusted and favorable GFS year. very and the strong business included operating excluding quarter strong organic Our along notable items, for was transaction The XX.X% results volume. with

very underwriting year. across enterprise. Our the This capped line in strong off a experience was expectations with

with as growth balanced our us success. approach and as positioning in and excited delivering with with management. global business capital active taking We the for all accelerating platform, well on of growth are an targets great earnings continued business momentum and ROE to priorities new while our We the entered XXXX our

a record produced internal EPS Second, level up delivered from was have produced on value, business by metrics, as strong our measured we new and these Firstly, results; which priorities: we all significantly record We three ROE XXXX. of

XX Slide than the to the billion LDTI of You won value business more new in by in XXXX, to that presentation earnings year. the $X during will on also subject primarily attributable business see increased

also of business create our capital breadth balanced of of management. to business our strong delivered the the between exclusive and results significant greater am arrangements. and delivered. I many active These strategic the priority businesses with with quality We addition we percentage the and under on RGA. And which volume, a very gets pleased across new of our and geographies In new types our arrangements third we shared value, clients had was

to we success. year-to-date contributing quarter, total in-force million in-force active all the record U.S., across $XXX the Asia into We the and the of bringing EMEA, During transactions, million. capital were with a to $XXX globe transaction deployed our

to supporting through via In during capital million our buybacks $XXX addition into business, the to shareholders deploying dividends our clients year. returned we also and

of Finally, Ruby our our we diversifying growth. fund Re, future exciting sources capital launched to further

quarter, all with finally, individuals Asia coinsurance business complement leader active a not and previously to have Based could very areas future product in results, combined the transactions supports we of leader, continue product during area longevity to PRT clients bringing the continued to this continued see third strength and forward. In to in the launched of in fuel Hong pipeline. And China, strategy. In share Investor growth time, in our in positive ourselves Traditional year. In business. an nice fourth In notable financial insurer we the team to market. going some inclusive success. In various clear to Starting with and fueled Asia be third our that space, our their to longevity communicated. U.S. our growth in-force transaction a and a success prospects critical a where help of innovate upon critical closed segments of we the underwriting period established of distribution accessible purpose we our as launched new clients year, environment partnered QX whilst for simplified entities our our This growth, a market, support market more closed about optimism about in an successful profitable product and player a another issue our of have a we the Day. our had our Traditional, spoke notable we the Our very executed optimistic Kong, RGA outstanding our In with PRT very medical expect across active we provide our is development to key region we and transaction. active we business is for and global are we innovating product XXXX productive business, in current In onus with gain major protection that coverage. to the a form previously U.K. asset-intensive segment, owners also short in development and to solutions longevity four the the business of we drive making furthering and blocks with market has longevity by to product market, growth. that U.S. their

support have where made gap would remiss positions. other of not teams market. I also and group we an purpose their in and middle also talented announced, investment underwriting to in to further the all closing mention collective market-leading fulfill be we incredibly our our As clients businesses digital the protection the capabilities of to

asset were attractive execution our for to U.S. client to and finalize relationship For reputation transaction due an long-term example, intensive in certainty. we able the

we transactions hopeful across and In in America. what addition, North seen transaction have Europe, we we in other asset yesterday announced an Belgium, and similar seeing of to are Asia

all talent, the world. on future, created strong financial our our shown on these updated the the about more proud positive as As foundation of I building around this all our am by we even I have people Slide integrity and as Reflecting XX. am about accomplishments, outlook, targets, excited expertise

EPS run new and reiterated on rates earnings provided higher We base. growth this our intermediate have targets

addition, increased ROE ability XX%. I for returns expected XX% continue deliver years shareholders our come. to at clearly to to In to our to to we attractive many range in confident growth our am

your the results. growth their over Our I our in prospects of our strong risk in are will Thank built on new spirit with create our now you share core combined turn with solutions management financial to discuss to RGA, to and principles partners entrepreneurial Todd for it interest success. innovative

Todd Larson

Tony. Thanks,

reported quarter and share million the adjusted $X.XX. to adjusted RGA quarterly Moving earnings per results, operating $XXX pretax the income of operating of for

full reported For earnings operating $XX.XX. the record year, we adjusted of per share

very up on year, operating results for the the pleased were quarter the was For premiums return well new with adjusted quarter. excluding the as very XX.X% results strong favorable. Reported business volumes deployment. strong we remained notable are XX.X% as items, and Investment equity, capital for

constant year, million The PRT premium for the in quarter, includes $X.X totaled premiums For in billion, premiums from billion. representing PRT $XXX on year a fourth $XX.X currency totaled the XX.X% U.S. basis. an of increase full a increase transaction the

XX.X% pretax time. The continue new have effective we attractive and business growth on was expected on for rate operating and see The generation over Tony adjusted the XX.X% effective in of operating quarter the momentum to range, the income. As tax to tax expect due mentioned, distribution adjusted tax year rate for premium strong Below certain income. the of to primarily pretax was credits. the full earnings globe across activity

segment and reflected experience Turning U.S. claims presentation. uncapped and capped adjustments impact earnings to experience in results and Latin had America results, starting larger The reporting favorable of X and between client due on cohorts. Traditional quarterly individual individual and experience unfavorable Slide which a mix the the segment life health in our group financial to slightly

As cap cohorts current on reported discussed, period. under previously we've in LDTI, as the experience

on reflected recognized favorable experience, and was onetime Solutions Europe. a Middle to traditional was period of business longevity results the line cohorts, Solutions expectations. For in was reflected perform including business strong item uncapped results of the basis, favorable rate other mortality positive offset is reported Europe, earnings Solutions $X business in traditional business of business were Canada by approximately our into portion is in securities. experience underlying in asset-intensive the and periods. On remaining investment And segment, a spread which The with in mortality current partially future experience. In reflecting new and results group reflected Financial favorable. longevity spreads, higher year-to-date the quarter. experience in Capital impact reflect million. unfavorable claims unfavorable U.S. the continues underlying Individual Life current the business from business most the EMEA's reflected a results impact The experience, experience our a the East those reporting. improvements including The the floating Financial This experience and Continental from Africa

which traditional Pacific recognized in underlying business. Asia claims reflected portion experience, our current Results a of favorable was to period. Turning the small

Asia Pacific business investment expected the income. spreads a reflected range, business. and due reported The operating and to segment higher Financial loss Less Corporate Other than adjusted new $XX Solutions investment quarterly pretax strong million. of favorable primarily

Moving through reflecting the higher quarter X.XX%, The XX on portfolio yields. was to XX. investments on Slides non-spread for yield

dividends. and management, ongoing X.XX%, to minimal business, believe non-spread our private Credit on portfolio as we positions as capital shareholders XX, reflecting In capital and of we is allocation ended a through liquidity well to million $X of Slides assets in billion. $XX quarter. new the also a to in-force of in of move the positioned were into of rate $XXX the our quarter, We rose capital XX with remain million total money the In we to shown the higher deployed uncertainties. Related quarter, For and year-to-date impairments to repurchases the million. capital the capital million record we and strong. quarter approximately economic $XXX transactions million share a excess $XX bringing $XXX through returned total

through in attractive active capital flow into remain opportunities transactions returning dividends deploying to block and expect capital excess and shareholders organic share repurchases. We our in-force in to and growth

Missouri management source Alternative of Ruby and capital of Ruby reinsurance mentioned, previously time, the domiciled growth. quarter, capital our company. to support strategy a capital for part Tony a is has been successfully we long third-party As launched another Re during Re, RGA's

the an of executed initial RGA of $X.X launch, existing part of As retrocession liabilities. billion

track share. book we year, record long the value per continued of increasing During our

cash of Slide XXXX. A which expected value Slide unrealized introduced annual XX.X% back LDTI the We is The demonstrates rate the highlight benefits value the present in allowances on as represents Investor compounded business of share, less this book this the to value and unrealized AOCI, reserves, our from $XXX, used business. of excluding derived want since our of premiums, future are values value our our This beginning which on subject based business the shown calculated Day. to increased with are for audit. long-term These growth metric margins reporting. the presented current of determine to value underwriting As margin treaty of is as June present flows are expectations on as at annual a per claim financial part LDTI underwriting to reviewed expected XX. subject I to and reserves represents metric XX, which part the of

During is during the on year. To from XXXX, or already to approximately was the underwriting up billion for our over pretax of primary The end new expectations, exists XXXX. driver books. business $X summarize, this the margin based that billion, current value written the $XX strong our of $XX XX% on billion unrealized increased business

current subject don't margins certain the business to measure future I want and duration they are general or While income significantly contribute emphasize expected and these only excludes asset-intensive short contains business. LDTI to to to earnings. expenses, consider again investment

business drivers XXXX at As provided ahead financial for discussed, outperformance of results our Investor intermediate term rates, the and our RGA the and on Considering have updated underlying growth were as rates were these rates our business, primary favorable was of intermediate and strong our interest strong Day. and current strength impacts new targets shown targets, higher of we've favorable and The dynamics Slide experience. very XX. run of we run continued the reiterated

achieve to XX%. targets. We return momentum represent target to These to earnings from reflect run intermediate to we believe base power on the have equity range increased strong We rates XX% look our our also now our which updated appropriately growth these as future. updates we and the expect intermediate

and strategic business we We execute continue to are our geographies and see well positioned these and across good our on lines, plan. opportunities to opportunities

for and our deliver open and about questions. concludes This excited like the attractive up to expect very future our we returns to now shareholders. prepared would to remarks, are it We

Operator

[Operator from Bhullar Instructions] Jimmy comes The first question JPMorgan. with

Jamminder Bhullar

of a had income. and couple questions difference just between on first I operating the net

sales think I and decent amount derivative investments. you a of losses losses had on of

items? those some us color just each drove give really could on you if what So of

Todd Larson

it's the -- One treaties reinsurance over derivatives, Todd. that's to what type of the funds we've that Jimmy, had as item BXX embedded think we One withheld on refer [ years. is, I the ]

of some part had impact. had losses negative derivatives as of strategies the that of impact. capital we So a well. we then currency our then some And that the And investment use had in some

Jamminder Bhullar

And sales cap the related Okay. because those to on deterioration? the normal are repositioning of Or deals portfolio and sales, losses just on is credit it stuff? of of

Leslie Barbi

for had repositioning. portfolio portfolio the and risen book And as still because much XXXX below Yes, predominantly losses, know, you unrealized generally interest just market on was like it cash was value. so trade, a normal managed, in decisions Leslie. are XXXX. management somewhat and specific rates credit the and value you values There it's but things into people just extension course normal few relative It's exposures trading

Jamminder Bhullar

If And good. up almost then It yield, XQ. was already new XX-year your think look in money their portfolio I well. even just above points went And you're treasury at XXX as pretty basis on is. it yield I more the

mentioned you but privates, yield a you're high. private So that seems the lot more very doing

So in your investing credit and you're just increase in it human really quality? driving is the yields? the what's that with And what talk about comfort

Leslie Barbi

every we, private. opportunities quarter, there, quarter there but exactly in So over not in time, target some were our asset great allocations this is

Day. we bit we disproportionately, that very quarter-over-quarter. about allocation. a of platform. I investments, grade a quarter more So really But but don't still in covered talking were at you corporates know we if look of underlying Investor lot spend had the explained change have a we normally the And investment largest time full had this broad

of excellent So we and do both private. have an mix opportunities across public

good like can of of straight given on there's we're in there's really just rate-locks. a areas and so there's where ] so interested still top [ probably of are out add some banks there that, good TMLs because lot we had there we backing borrowers opportunities And very investing. when premium over lenders there, more opportunities publics than And

So that's some it. of

Operator

from comes Barnidge Sandler. The John Piper question next with

John Barnidge

on data As we more just think now think have that much I'm one-to-one solutions really to is than grow that of the you about winning just price? solutions volume boutique new business to how generation, Maybe coming the and and trying from in about flywheel. leveraging

Tony Cheng

risk reiterate which which my it our I Really, as hasn't just got take firstly incredible I And Let when combine we, we've management want me capability. to that, John. great insurance market in I the reinsurance to just growing to comments, and growth changed, strategy, is, entrepreneurial you for pricing mentioned this this spirit, to people, markets to underlying and the our leads leads collaboration as continue markets. And grow said between Day, important share. Investor our during very grow innovation, with it's

hopefully transactions new provide the company we with partner for give your an So delighted the share greater it's pursuing to we with solution, that that business able answer I'm Re. in Creation from create to proportion that value. innovative our and exclusive value the came really of question, we what that call idea, provide edge the where really to Broadly, we're partner

the strategy, a the specific the We that's So to We'll not what well up And the shows delighted organization. I'm XXXX. that our strength people really, it strength really we obviously I'd give say, a target, going excitement of our target our the how number. with really targets you But for and during of internally going. exceeded year. set within

John Barnidge

strong. Variable within transaction you has rather volume My maybe near-term that? been talk investment about your outlook follow-up question, income relatively Can for

Leslie Barbi

above Yes, so was good variable income. solid Leslie. investment modestly -- had expected. a we what on very It This we there is quarter

which is generally get that last on the sell years, an the private ones drives real equity year building and that, the for the I we're we're about to that think to XX balanced strategically the in-house those sourcing tends realizations are and the the composition the you have private ones market, of in best investments, would estate. been M&A front, XXXX, I that and not team over we of sort about estate our picking if we thinking things less amazing portfolio with we real obviously, them. time think have from of in when portfolio. And activity equity say that an drive

say in the I'd separation in So of probably still there and was between marketplace certainly, a XXXX, part sellers. general, buyers

some up sell more really think picking those. when activity the that and there's I sense what us, But there. about holdings it's for the to specific we about have makes best

similar we year XXXX couple XX%. Day of This around average moving of a to robust, is really robust. in that lighter that So have in to still touch long-term years terms communicated Investor return continue probably a total I a environment but little possibly of we'll VII we're less had in of a really, XX% but think we

Operator

with The Hurwitz Joel Dowling next Partners. comes from question

Joel Hurwitz

disclosure So take the margins. moving mentioned you that? is I what flows business. growth? net I billion just under the appreciate think the pieces is updated unrealized $X billion? on other the that $X I Can you there new of guess me through $X experience Is billion the favorable through

Todd Larson

others just to Todd. adjustments a little really XXXX. and I'll the $X to additional portion a business growth of about of $X chime as is Then value is they But billion, a sort margins, the how bit and future billion, in-force billion the is experience -- can runoff the of This new throughout combination impact natural assumption add by of in. yes, that you strong start offset the business. from so $X due big referred

Joel Hurwitz

uncapped and cohorts? mortality, quarter of what just U.S. between in the saw can of breakout experience in you a give you just capped current individual And then impact terms in

Todd Larson

Yes.

related Todd U.S. $XX of We we some as mentioned, experience I the individual uncapped So cohorts, of trend. portion million, mainly And experience in was adverse lot some out. favorable elevated saw claims the unfavorable large of a start about the of would offsetting there I'll claims. say, The was capped in to again. life claims This cohorts. is

impact So the the reporting for for individual financial quarter. -- negative the life the about statement income million impact net $XX was statement in

Jonathan Porter

is too. Jonathan, Sorry, this

was headwind in if remarks, favorable. the for was in, claims U.S. experience you cohort our the take its which our the for back year, add life resulted individual mentioned to look year-to-date overall some step we we underlying distribution for Just results in but And and Individual favorable experience a on Life, year, about again, underlying -- a prepared the as $XX at the impacts, million our being course own. that had of over favorable

Tony Cheng

And Sorry, few is more question add first moment. that's LDTI under business is LDTI. our the your that proportion a significant around I'll Jonathan, that the only let on me There the just from Thank long-term comments you covered value obvious for LDTI. state the of question. not a business at is asking under

Operator

ISI. The next from Tom question Evercore with comes Gallagher

Thomas Gallagher

first a guidance. rate? the that we we normalized think on And Is about should single-digit think about Or 'XX, be run run 'XX? a as question should your exit so rate? view by should we updated 'XX we Just for when earnings that growing high or run that more rate as -- rates rate that

Todd Larson

Yes.

we financial is. going a look plan, of type did our projections sort for a thing our normalized basis as of it on on built We So more developing XXXX. and forward that XXXX up at

of expectation look rates our So XXXX. more you the for run rates, run the at of updated could

Thomas Gallagher

growth in So there's expectation Todd? ranges. those fair, Is embedded some that

Todd Larson

fair. Yes,

Thomas Gallagher

as can about -- your of for interested lesson, a history greater in percentage looking you provide been Like written Asia? you What was that's arrangements. of between different but look on comment your Can of that it My time? pools like exclusive and your over I'm Is coming reinsurers. a follow-up, some trended done perspective from just not business Tony, I now? does with U.S. that you've how historically, reinsurance other most

Tony Cheng

business broadly would been we over world culture to, Yes. it units. haven't our geographies allude Day say in I has and say necessarily. numbers it always those track increased X. you different mean, directionally of I'd differ And time. may around as the kept mean, really of it's I from I part

leader why under really what the their stronger, the in that's raise we just delighted is pursuing any -- teams for seeing the messaging this. me prospects asked so organization fulfilling perhaps to therefore, and as off. Anna teams in that, them Now it got cycle the and to not some kicking hey, more obviously excited that's We as were belief nothing try. about the a of flywheel own myself there's within the do vigorously. can see And direction, now look, And succeed of give really that we're our self that, the belief virtuous that

Thomas Gallagher

instead that that's And one are there margins Is line pool -- Tony, when exclusive punch a call the just you it, better the I the that are do deals fair? you follow-up. -- deals. the margins lot like, do presume Is of think

Tony Cheng

I the too. us Yes. No. truly something able win-win better, it's commit an willing our mean definitely, they're that are I we're exclusive a to and obviously, but with mean them right? margins clients, give to

it's So or partner. And obviously, a us for creator our and of it first value. then must value to share that able innovative. we're to great And usually some be greater of It's value. market

Operator

next The Kamath Suneet comes with question Jefferies. from

Suneet Kamath

to on so follow wanted all understand and run that the rate stuff. I question, just Just guidance Tom's up

normalized it, midpoint XXXX. said, at is rate, the $X.X you also And think billion I And on look of of I that's Slide call of it take indication Todd, XXXX. a basis, a what I shows that good the the did, probably $X.X I in that's think if if earnings run range you billion. in of So terms X, pretax around

I in So basically, pretax you're with line mean, normalized? be XXXX right? saying is is should what earnings XXXX that

Todd Larson

that of the expect type some not and add don't the items of kind sort underlying But rate, view the would we experience could run unusual solid up actions some related we've a run rate. one-off Yes, adjustments at, be strong some XXXX repeat normalized. came some to with year, that would earnings. when the we in-force of to did impact we XXXX, -- about, And thing. items, we've but look to in we as ongoing That very talked very we of

Suneet Kamath

was into then just on XXXX, a of that -- And the million that seems in over the that, maybe terms like relatedly, if that because I fourth about about earn that like it take so should lot back-end of it capital, basis XXX, just guess loaded right? of on earning kind think quickly Or I earn if your quarter let like you're in? of course I that. $XXX in ROE somewhat and terms Is Like -- how the in the on then drag points, probably capital, of that. And of out I pieces, XXX parse what two excess curious third just would guess just could kind something like XXXX? in that will deployed is

when fully that take time? is a say just $X you that risk that and you excess for is deployable is down over portion billion, So view management? your of will of Or walled of that, that off sort

Todd Larson

Yes.

keep with. of quickly. years capital done about the first. But fairly excess alternative being comfortable of we that cushion. down. developing can level your million, down the of take taking in work a range, we're No, that want part question second we I'll million all some we're of $XXX $XXX capital past, level talked We comfortable over the that to So said, What latter the quite bit forms we've access to do

For Ruby mentioned. Tony and example, Re I that the transaction

the that thing, confident kind level as we're can And of it willing excess down capital we to that when that replenish So underlying the profile, fairly for profile, on would the be quickly. we then -- the right into strategic underlying transaction, we dip XXXX, right up time, return deployed there depending be million contribution ramp over it increasing the but to that of capital type will in time. profits year, business on over the some and the throughout $XXX returns be of on tend will so

Operator

with The Ryan next Krueger question comes KBW. from

Ryan Krueger

to first life comments unfavorable overall running consistently I it I favorable. been guess level. was that mortality in seems it's total pandemic in still the was on U.S. heard the in population, XXXX a bit question like individual pre My your

experience in interested was divergence your seeing I point? you on that why versus experience So insured at thoughts type you're between think population this ] [ of

Jonathan Porter

you about. the Yes. Ryan, talking Jonathan. difference a there mean is it's that as in I we're mentioned, populations

be we're well. that It to expectations could why that as some said So also you is different the of seeing relative experience.

couple particular, over if best last So you in our expectations under of recall, excess we to move in mortality LDTI, estimate. been years, when reserving the have including assumptions, we

we our include you And of favorable best excess what So to will that said, our as results those mortality expectations. a coming relative think estimate expectations little the are be. bit in

Ryan Krueger

And assets that or your rough change amount on then the can Either rate basis a you you say, XX in potential from rates? floating sensitivity give point on assets? floating exposure the rate just of have to impact earnings short-term let's any

Leslie Barbi

This is Leslie.

that have overall, are decline where expected similar to market currently. the rate first assumptions So the obviously, run has floating I already some will is a say guidance in that, rate we rates been for quite while, in so and

fixed fine it's less do then and of in portfolio, total as a we to floaters actions short-term X% the rates of And we to from thought some the near were starting some taken the take we net those swaps on you're there. XXXX have So exposure. point than over floating

our on the quarter year down of interest over a talking under this for So in point year forwards that of guidance. the predict already you're million course the move. moves XX in are already $XX the rates But basis again,

Operator

Burdis Our next comes from with question Wilma James. Raymond

Wilma Jackson Burdis

to could noticed COVID you could about talk if you related trends seeing bit somewhat flu you And season? trends winter guess, capped that, about were talk the little mortality cohort, specifically, the in there any of and unfavorable a any in there? you're experience I kind this

Jonathan Porter

Jonathan. This is Wilma. Thanks, Yes.

typical adverse this or and those experience did year, as the So some sort we over maybe for And our be. what average quarter, be going we to see like a far. We earlier expected based observed pretty season the that's globe nearly And the seen not Based would be, mentioned. deaths we sort see just an in Todd period, when period to a typical sizes we've policies trending, older large as than consistent larger what of hospitalizations can well. looked experience, at policy on volatile ages we favorable probably little flu, in again, overall so of a flu I bit in we've on significant a that little age be with groups business. experience saw it's data but based this sizes below the in and a we'd so of than average better line and was with last other as year, did the far, looks nature it our is think year. -- though. When think little It's as flu seen or what what season on year the around bit about

Wilma Jackson Burdis

I COVID? anything on note And

Jonathan Porter

Yes. again, COVID is are sign able quality COVID out the no to major why days. fall total but there's on an is of these to reporting really observe, we look I is accurate think of or the our which difficult on difficult more it -- its it's excess data from on I a mortality get winter it's expectation surge, COVID own, parse based based so the but perspective, to a mean at we count

Wilma Jackson Burdis

And more. one then just

targets to forward? that you're little about kind know I bit exposure increasing thinking that's of something you some If around you longevity guys could how give exposure. about going used talk a longevity

maybe you update there. give can us an Just

Jonathan Porter

first, go I'll can Jonathan. on. is This others add Yes. and

of expect I a over of as think our as longevity before overall shared years. increase the same is our at our see the few Investor Day. we proportion to have percentage next biometric risk would We risk expectation do what

a morbidity but business in we our great just longevity expect to opportunity We mortality grow, on there's think side. the our

risk total -- moving it it's XX% that of we to be in So think like to XX% biometric increase XX% more our something will XX%, to it [ from ] a do more to magnitude. going

mortality, still is be positive diversification little more towards from weighted a balanced, obviously. we'll bit more just but a perspective, which So a

Tony Cheng

Yes. Perhaps let diversification. I'll queue me what said Jonathan just on add, kind just of and off

bit mortality of a but will socioeconomics So finer, some adds age. diversification. for quite higher our a in obviously, get longevity we mortality to be more just younger tends block the But be long period time. to yes,

blue to tends obviously block collar longevity retirees. Our be and

way, a to always advances mortality the so So expect we've favors negative with see, would longevity block it on the as block. continue more medical we in than that the seen, to

Operator

with Scott next question Alex from The Goldman Sachs. comes

Alex Scott

in scenario-based you you're affect broad to First little I don't mean I just know so sensitivity it? of price your applicable to I and in Are some you kind guess, it But U.S. think have? at transactions to I is you environment any update. less the I For interested change you. one on regulatory the seeing a you competitive a a front. related for guys had of the use approach relationships taxpayer, all? Bermuda, and

Tony Cheng

the Belgium we're continent. is anecdotally seen have We delighted competition. was world, transaction overly Bermuda, that, we've on Bermuda obviously very previously believe we think discussion announcement focus on due opportunities the we're We're sense, delighted transaction. throughout on to impact shared, with We with by certain of of an some dramatically. seeing in we that previous quotation are a the continent can issues dropped of There a in we that around very I obviously the not the very that's Belgium but in individual broader the and up Europe why open always There continue where and U.S., it quotation a concerned we're further to even And were regulatory competitors in we lot the what number some did. on regulations doing. overnight, mindful some U.K., discussions.

Alex Scott

a could track quite in guess I you And question, rates just U.S. a market, trending as I don't kind fashion give the for us of closely. feel are something for second how

interested be if moving sort update you are on an where just I'd of there. So have things

Tony Cheng

take direction. it's in I'll one. a think I directionally, positive mean Yes, maybe I that

to back so have would is interesting books partners, job so to reason track have their the perspective, mentioned increasing continue and they reinsure. win-win our a new is What more seen strong a with for always, in-force I as of some capital-light say innovate, That on business. opportunities have move a compelling as on. an usually in-force new ways reinsuring towards blocks rates Our find clients earlier, business. on greater to derisking mortality creates we I on of as they session us

Operator

Ward comes question Mike next Citi. from The with

Michael Ward

have I for run and EPS. of X% XX% we dollars growth, there's earnings the So the think which earnings and new guidance rate is to

component there growing? is NII kind in -- a there improved a just X% that general, with you new component from I'm of is So to wondering, there XX%, or in the just yields just money

Todd Larson

diversified margin been just to across business the there's during provided start Todd. compared the then to Day I experience the that on really the the year. Investor new strong the the billbook it's back good saying added overall rate And we the by And volumes able three achieve then platform. out say. There's night for in increase the that Mike, run there's last June, we've yields. in there's I higher components, investment the overall in-force would

Leslie Barbi

money And have consistent will current assumed isn't is full the print about high I'll Todd, for conditions I where this particularly know the work print go the that fourth than it year, how and much thing put in particular is add, That new what market will assumptions grade the for the is more quarter. with money to quarter. only

Michael Ward

X% return. maybe assume on annual kind And of forward? just million going an it, XX% ongoing, buybacks of then the $XXX to capital on call Does

Todd Larson

into would I balancing considers make very deploying balanced active it been then management the the repurchases. return our years, good continued capital risk really and Yes. transactions sort healthy over we like keeping consistent really as say the we've share the and returns with that capital dividend between the for profile, out of

the that capital approach to of really So management. assumption it's the and balanced active continued

Operator

Bhullar question JPMorgan. next Our from comes Jimmy with

Jamminder Bhullar

And you for comfort the what's performed of overall much I up to reserves the this on the on going problematic to quarter? us your with see are vintages if books color follow in level how just Australia block And how and could already the your just just that give wanted book? business. on some

Todd Larson

Yes.

modest monitor are but of But the the estimate business continue we're the we'll reserves required LDTI, had under keep to in to overall the on for for eye on loss we so okay, our continuing So close block. sheet. Australia, seem overall, most best that reserves a to quarter, balance a conditions market overall, And be business. to be holding

Tony Cheng

you we've really environment has our from Yes, over with regulatory pay that combination shared strong was the probably business, of somewhere We, a And that's RGA, market would Jimmy, our incredibly first of the as retain management the Like expect, guess mentioned, it the we close is entrepreneurial risk time. Australia minor discipline. along as Asian discipline. the absolutely spirit Asian improved it's relatively business. attention I I the is of part and Really, very part my you'd Australia as time. expect to. previously,

Operator

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

Tony Cheng

everyone, in you, a your strong for substantial business. but a quarter, strong really very for continued Thank earning RGA. thanks in completing questions our interest powers Further demonstrates year. was our sincere very your and This very,

all feel, seen the and incredibly whether it's we have, you've it's we have think whether I we our strategy, diverse business platform that's that pipeline really the strong whether very experience, it's on. time obviously fueling, a visibility geography,

benefit our So and capitalize very attractive returns to our remain all stakeholders. confident we We're ability to in absolutely ahead. deliver growth really on well shareholders to continue many positioned the opportunities to our

So thank you once again.

Operator

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

You may disconnect. now

Reinsurance Group of America (RGA) 2 Feb 242023 Q4 Earnings call transcript