RGA - Earnings call transcript Q1 2024 | Reinsurance Group of America, Incorporated

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Operator

Good day, and welcome to the Reinsurance Group of America Q1 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

Thank you. Quarter Call. First RGA's to XXXX Conference Welcome Officer. I'm Cheng, Officer; RGA's the call Chief Leslie with Tony this morning Risk Porter, President Jonathan Chief Officer; joined Investment on Barbi, and and Chief Executive

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

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

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

turn I'll to comments. the over now And his Tony for call

Tony Cheng

and Good ever reported per for we call. night, of Last earnings operating adjusted which you morning, result. is our share, thank quarterly joining highest our everyone, $X.XX

and strong the Traditional In U.S. GFS and the businesses underlying regions return intermediate earnings is in exceeded months past for equity driven XX.X%, exceeding both Traditional particular, our from one The was solely not of the Our rates. four the and areas our operating results or experience geographic targets adjusted the run shared. company. on stood previously ROE we XX record All attractive two met out notably by or

Consulting's for companies I for XXXX that was and that very on insurance Index. quarter follows am NMG consecutive a health Global where #X came we was many all the respondents just life an Capability excellent around and based This XXth rated Business on from world. together is XXXX feedback RGA. year It the learned the RGA pleased things

to activity of addition our We the new business of record In external into amount $XXX and capital transactions strong. recognition, very a was in-force outstanding earnings deployed million.

preference the always business We strategic over transactions a favorable create for clients. to repeat run economics and from can excess lead and shared these reasons. capital have into long redeploy Successful to both the opportunities back financial our

addition in record arrangements delighted life we see percentage of business as of insurers the nature continue and new the centered greater are with around world. In to for transactions the of create exclusive to quantity new some innovative and leading These are value business, in the more with of its a we quality high partners. transactions the RGA

second none. strong, are many are and in When capabilities ROE, new I of we excellent and across performance attractive We culture and know are of and delivering this earnings, we know capabilities, working. Combining our our confident we external highly incredibly parts brand with to results know our strong foundation enterprise people business shareholder returns. tailwinds, recognition and is strategy see the long-term our macro

four notable company. I growth in have outlined previously of the areas

U.S. be successful on XXXX a we prospects and and both space, and about transactions very active remain of we forward. transaction each longevity in another opportunities our partners, deals areas, a PRT additional The market the increased announced funding the not funds world. around longevity our given PRT Longevity with pension but successes U.S. U.K., and leader, with our and the going year. we optimistic our PRT this to in remains U.K. to built these the exposure, business. activities we favorable both the expect diversifies market, RGA date, levels XXXX quarter. provides with is of some largest mortality discuss where also including starting In me the exciting of Let the our In only pipeline of

Our is of growth business second the asset-intensive Asia. area in notable

number During a we in of the quarter, region. executed transactions reported the

deal an $X.X we closed approximately announced, billion in As Japan.

the world. shows powerful the success our has position Our RGA markets in many of around

hand-in-hand have over innovative client solution business a our Japan, This and relationship a that is shared transaction transaction first This an for leveraging strengths This with in we decade. strong being longevity U.S. sizable our the the is U.K. a in by the amongst local demonstrates win integrated the at teams liabilities. approach asset RGA. relationships, and is our expertise teams how tailored to coupled solution enhanced investment business our with for Strong the with at collaboration right these working worldwide we arrive further

Traditional we notable which positive our very growth, results. see to In is segment, our of continue area Asia third

Our product is In clients' underwriting to product with growth launched Korea. January, we our insurer and fuel Japan a to solutions package adopted major success. and focus development from capital a in with and

the future. opportunities near product expect in in in-force closed space we an of XXXX. this further lead launch, Given success we clients RGA the multiple launch this expect with we to success this China, In to to in and transaction,

Kong, market, increased Finally, our largest key we visitors the few life and therefore, benefit. products Throughout our of Chinese be insurance. positioned by past the we to of share in to years, excited well Hong continue increased buying Asian which Mainland is volume have

as the launched underwriting offerings. underwriting of in largest our the spectrum Traditional offer breadth a in to this we key quarter, in extend build to strategically full positions full-service is This to world, our the to market that our offerings ability underwriting complements market. we our programs. facultative well in RGA It the the act supplemental finally, partnership In and underwriting space so our this differentiator. digital market segment, And our reinsurance which U.S. continue home is the and

sheets in-force continue future believe for as In which we leading we a RGA. activity indicator clients and is derisking momentum business strong their new for see addition, balance

also to other Beyond markets. these four success areas in of growth, we have continue tremendous

long-term is of the our these You and work for our USD Canada our to Both transaction value create asset and will have organization Belgium. the well global effort on transactions as and million local seen EUR billion in tremendous in as X.X teams. announcements the XXX transaction of due

can are have execute our have won remain the seen a part risk lot trade-off you meets disciplined You and chosen at we We not have in important and we that performance. see not other pursue. This to as culture of risk this meaningful transactions transactions quarter. our what have of But as requirements. any focus management when delivering only return the is long-term looked sustainable

job It's these execute in make we I clearly confident continue am and am in proud deliver continue to privilege is better even about about to today, are true position all more ability growth make to even to a I our As organization an for as tomorrow. lead My sure attractive CEO sure future. shareholders to returns that the to am we also excited but to years at come. as many accomplishments, this I our

will in I results more now the it financial turn over Todd to detail. to discuss

Todd Larson

$XXX RGA income operating for and of operating pretax reported quarter Thanks, adjusted adjusted share Tony. per million earnings the $X.XX. of

operating was For return XX equity on the trailing adjusted XX.X%. months,

the very business as well strong are activity new pleased and results We in momentum as with transactions. in-force

were up business. a billion increase for from premiums $X.X in U.S. $X.X Financial -- transaction premium million or Solutions includes Reported This single quarter. our PRT XX.X% the

the quarter Traditional growth healthy X.X% a on basis. premium business Our a for currency constant was

below results pretax tax that income, all XX.X% in growth the pleased tax We on premium to across good are foreign was benefits with primarily operating regions. there the expected slightly adjusted due jurisdictions. effective the rate The are range, received quarter for

related turning the I the to of financial claims out addition and X like period experience statement earnings segment presentation point the displays quarterly Before in to results, current the impacts. would our Slide that

risks For favorable income underlying experience The recognized experience the of was experience, longevity underlying on in which by includes and current $XXX of million, the over the $XX life was period, in million quarter mortality, income. will business. biometric morbidity recognized favorable claims be which remaining our

we've and product, capped, experience financial under the As or the forward whether in contracts. occurs on the based impacts duration uncapped vary discussed, experience business of LDTI, can from

The income. The lower U.S. reflected U.S. was and results as as to health America results The a Traditional were and individual investment Solutions lower slightly and Latin favorable results. below reflected experience favorable expectations variable frequency individual life of broad-based Financial group well due experience large claims. favorable life segment

you'll U.S. this As combined starting have notice, quarter, the we

into consistent our for the of U.S. single with regions. management these and Capital Asset results presentation is a and Intensive segment. other This businesses Solutions

positive favorable experience that reflected EMEA's longevity the both business group in premium Africa with contributions from with in Traditional expectations. results recognition business business. segment, business was results experience Traditional timing in individual Canada and In Financial reflects results and treaty Solutions Financial the impacts life were the due reflected expectations. new The an favorable East on line and to earnings businesses. line Solutions Middle annual Europe,

business the line Corporate the quarterly segment favorable results pretax loss rate. Results business. reflected our adjusted Asia to Turning experience. Pacific $XX Pacific a with Solutions favorable region. run and across The Asia in million, average Financial overall of The experience reported Other operating expected Traditional reflected

to income. quarter on nonspread Slides X the variable for investment X.X%, through on Moving the portfolio was The yield of XX. impact investments lower including

Credit we new primarily for yield, prior impairments yields and X.XX%, was market. the modest, quarter, believe than above money our available business, but positioned nonspread environment. were the lower rate well For well portfolio portfolio still is in the the reflecting the average current lower

excess and Related quarter capital and remained we approximately shown liquidity XX, strong, million. management, XX capital as capital the and Slides our on to positions $XXX of with ended

quarter and active we to the in-force of approach we case over excess record balanced bringing as given This $XXX was have capital capital an management the the million first down are and in deployed We communicated opportunities. comfortable have past, a capital the time, transactions. into in we as right

share and million. I to Ruby forms with do is remain well available forms expect to by expected of multiple including other will capital. which of capital, debt note alternative capital retrocede approximately increase to access a we capitalized capacity, $XXX to Re Ruby this to retrocessions Re, that We of

attractive remain through We deploying excess time. shareholders in expect opportunities active capital returning dividends balancing while into share growth to over repurchases and capital to

increasing track During the book continued of per on value share. we quarter, record

embedded on per $XXX.XX, growth a of from compounded which excluding book XXXX. annual XX, our Slide represents value increased the As to of and beginning share, rate XX.X% impacts shown AOCI BXX since derivatives,

growth, rates. capital discussed, the the plan. results periods The of we've were interest of active well experience geographies As in the premium earnings RGA. primary lines our globe, strong and power year strategic higher very to are and to a across opportunities from deployment first very strong the see drivers was for on to we continue positioned good execute the start across and emerging favorable prior quarter our business Overall, impact

resilience Our business continues and to demonstrate power. underlying earnings its

attractive very expect future about We and returns are to excited to deliver the shareholders. our

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

Operator

[Operator Barnidge with John Sandler. comes Instructions] from The first question Piper

John Barnidge

talked institutional and for How coming maybe exclusive considered parts In not a more that much a growth talking transactions. of Can on about as with little you others I market, certain talked And of environment like your the exclusive? competitive bit? exclusive comments, you REIT? to should continue grow you creation about transactions expound about is know from

Tony Cheng

of really our Thanks, DNA our have is We been entrepreneurial since flowing which it much of veins the right to John. now. spirit, Exclusives through call part start organization. used very the

proportion To exclusive business definitely there the we're answer definitely internal metrics your question, and -- were year to well we've extremely are set performing against. relative last higher that on goals of

team, ability a that's platform, the of risk. global the right? And difficult, But and is That's the more bit sound our just give our have right that exclusives risks RGA. you to around to assess world ability take of power that to to power have the flavor,

reinsurance oftentimes, type from underwriting new risk of type come structure. of a underwriting, add that So new or product, will or a to new either a a exclusives we

life quite really positioned allows side, asset global -- is being competitors on health take and and reinsurer can that's because the biometric. our call A what reinsurers focus we to lot the asset biometric us Us the both the side. only the And on the biometric uniquely focus some spot. U.S.-based take sweet the Exclusives and of RGA both risk. and we asset

a organization we're getting. we And of the whole as remain effect that culture very terms much of early ever is change. to North starting an that for as flywheel we're and It's the seeing aspirational that bullish Star impact proportion the me, for us stages of in relatively and So to of permeate exclusives us. throughout

John Barnidge

little you should bit? was there know of said I as into in thinking improvement I a about capital that and framework of ceded. the it we think you ceding? the within question, deployment that million can follow-up about of excess how $XXX But be record Or a My capital talk Is timing allocation? that in-force, with capital more buybacks

Todd Larson

Todd. pretty we Yes. And capital we profile. active it we where the with like know, to over always it's an repurchases business mentioned, back into a the maintained over like John, transaction, dividend time. when No, as do steady -- see manage we pipeline. the deploy out capital And return balanced you we as We've we've risk share time. didn't Tony

As pretty of transaction we've that really deployment like. healthy record capital already transactions look discussed, in we the we first had quarter. in a the to pipeline the continues And in the

Operator

Huang The question next with from comes Stanley. Bob Morgan

Jian Huang

First ways a is between risk transfer central understand income, on net -- of BXX think below not just about really came the that future about optimistic one below the derivative, actually, impact just overall. there this PRT broadly I as first your because But further to the particular so the difference minimize in from operating the the think line impact. income that line deals, more that and line and lot is that becoming you no? think you or of are deals quarter to from the area, of about onetime as

Todd Larson

Yes.

So we that specific result standard what PRT, adoption -- because discount the to liabilities way of the accounting to than is accounting lower is the upfront is yield have as to loss, written. call that, it at you a LDTI want -- the a really it's if and investment the rate just it's

over operating amortize how We looking But from time loss we'll address certainly at if unfortunately, earnings that it perspective, net do now, in with see right we we see in emerge. to that are somehow. the income. an upfront But ways income can

Jian Huang

of tailwind more terms from of Second biometrics. forward geography can either bit biometrics? coming about of be really even up Obviously, you biometrics potentially and there you potential one Or a and take the the the more details aware can you on how there going your specific a of we other lot should advantage risks any regulatory maybe give you definitely But as of tailwind potentials think going a where is that are think forward? biometrics. well, more in little us risks

Tony Cheng

capital opportunities sort start, to in And I just level, that the that more regulations One company the I'll specifics. and to tailwinds my comments have. Maybe the them. are of world. rates a One at the you some I'll Yes. is historic. higher of are we creating hand is then over get mentioned than just many interest with around some of changing it Jonathan into I'll share

answer the major and to which on advances. of medical well the your the biometric, But continued there technology as as time fact incomes over that question filled world, is underinsurance still the around grow GDP up population as gets

it hand more to elaborating side. I'll Jonathan the to on over So -- biometric

Jonathan Porter

with Tony. And Thanks, agree I you. Yes.

world. we I the around think are widespread seeing opportunities

globally. morbidity So the pursue specialists and in us the being best so risks gives of mortality, longevity, biometric flexibility all really, to opportunities the

and And technological then just advances to things. about Tony pick up mentioned on what

an measurable We perspective. over not example, think mortality that, both a to from we drugs, as could to what to relative loss think improvements type in I limited morbidity and GLP-X in lead it's data encouraged that remain time. that And emerging we're by weight just seeing technology drugs.

tools for like cancer, AI activity editing in science. diagnostic in biopsies genetic well and So advances protein medical as liquid

weight think see things for given our that exposure to the bodes that organization. I are that could I think and going they're our -- tailwind for overall, mortality we a risk examples be would all of just that And forward. that well things mortality

Operator

The JPMorgan. comes from Jimmy next question with Bhullar

Jamminder Bhullar

seems your like -- from good. pretty times, Jonathan. CDC like data but population they're So question -- that elevated actually but have versus that's we elevated industry a pre-COVID, fairly on first, look been If results it it at COVID still seems just improved based still for or

the it in that's So what business is trends? seeing different you're your that than population general

Jonathan Porter

the Yes. Thanks you're CDC excess Jimmy. that mean, in mortality for is And what still I is the right. question, elevated. data we see

an population. between experience I definitely it it's come absolute and mid-single-digit excess a lower. think the directly in down, book mortality over is to so to population are I the the excess starts when in the more differences starts which that of the is XXXX the level -- actual of map at difficult look single last you mean, mortality trend to of as couple insured years, the get to percentages business,

in U.S. this What from know, quarter, favorable experience, you quarters we claims as saw be which, in can the was particular, large prior volatile period-over-period.

we So the we favorable experience -- benefited run claims large from quarter. this

our expect decline expectations expect our reserve level assumptions year. in several of is last our to say I'd still assumptions, that we reflected We reviewed do from next not changed term, when over years. the excess of mortality but some in we have intermediate for which the QX

Jamminder Bhullar

given And you mortality given pricing are pricing as a cushion business big doesn't the that, are being a on Are in improvements versus in obviously there given that If exposure got actual happen how better life But more are seem business? longevity. you've that to exposure And you've beneficiary you okay would and that hard would like got expectancy Or to mortality, then improvements they're Tony. time -- the you were, not the data and have lot you'd for obviously, not you mortality. life are longevity on potential pricing a based in maybe business mortality anyway? market? it then for pension baking expected longevity expectancy But well. in if it's a competitive because more be your based you companies the

Tony Cheng

the of the mortality mean very two Look, end form assumptions is I for of the very key both first point they're coin. the our They and Thank set a longevity same day, are sides you, mortality. at right? we question. consistent, Jimmy, much the way

do longevity do we the we'll side. side, on the whatever on So mortality

Jonathan of lot energy, due a data, of sense a shared, spending to could but the medical doing happen we're advances. get a also medical of stronger say would lot analyzing I R&D to as what appreciation of the

So will that mortality once occur medical for and practical, and be RGA, shared, given -- and longer would materially we believe we you way as longevity. advances on are more still obviously, net very any again, good

Todd Larson

longevity One or than point maybe -- is or is that I age would average on, lower mortality average age the mortality younger block add Jimmy, our business.

block age or So -- older. average longevity is is higher the

the less you if will. room improvement for to there's take So effect,

Tony Cheng

to some add Yes. Maybe point, socioeconomic further that. Todd's also To there's to differences.

higher be be socioeconomics, tends to new advances block medical mortality these the the to obviously, to drugs. in first the afford So able

Operator

comes Joel with Partners. & question next Dowling Hurwitz from The

Joel Hurwitz

So updated and last and And it solid quarter, quarter in-force I guess what looking to factor guys upside into up was provided much did you since you followed of this those outlook, actively targets record growth and some at deployment earnings Are we financial you earnings into and with targets? you transactions. most of known provided? this those outlooks? how factored

Todd Larson

intermediate the this this Yes, factor we transactions on in start bit deployment that we the A anticipated. we to Yes, is into targets been I had of came had back provided financial lot working would quarter. our we're transactions say we way faster Todd. last in quarter. little off that did than a

So there got is -- definitely some that. we bit I running start intermediate but little -- on built into to we're those a projections, fast but targets, a we're or said,

Joel Hurwitz

emergence all to you redeploy these think about can for transactions? assets Todd, just guys you the then, and it to And how whatnot? take long typically Okay. does from the Like how about talk earnings

Todd Larson

Yes.

to the targeted aggregate, pricing in our overall, returns. So we're

the levels. at up So get margins take But expected that But do other repositioning of maybe probably, the some there a year, years. level on, on to years within depending X it be come as our overall, level overall that to asset can over ramp reaching see impacts transaction, mentioned, time we'll to -- in a -- good we return, financial and a reporting we couple should be some early can of you well. as those

Operator

from comes Wes Autonomous Carmichael question next Research. with The

Wesley Carmichael

but Ruby thinking You intensive? asset Financial being Re we talked is to that's some a change planned. of I Re any Solutions, there? XX% there of about the Should think quota kind within Ruby think the that's U.S. effectively now relief capital of continue U.S. session I for share the about from know to retro

Todd Larson

No. Yes.

So U.S. for the business, is qualifying which

business, share a are in about or transactions of even that that U.S. new I Intensive yes, XX% Asset as it would to come think quota of up XX%

up Asset equity to Intensive, Re so. be will probably million an which capital $XXX has, that the perspective, to million capacity from Ruby $XXX or

Wesley Carmichael

for basically it recognized X, is claim Slide I favorable Got question is wasn't in every closer it. basis, recognized and evenly Or that. clarify declines the The to over time? quarter? to experience had which And then period, a just on a thanks more that the that period, straight-line

Todd Larson

underlying will. [indiscernible] that you of in will premium of on release ratio the net will the come duration business, time. It how the of It and time all over impacts depend if the over

Jonathan Porter

at range in average, on that the duration Yes. a add maybe And probably over which GFS it's just XX- business, average sense the we traditional business, period weighted just on Todd, to business, to when to those of our our look XX-year in you of earnings our would emerge. give to

Operator

The comes Suneet Jefferies. from with next question Kamath

Suneet Kamath

around something were to Tony, that extent you that give Was those market? circle you you deals deals the back liability the end And don't the color to at, some in to can guys talked to to away? about but the didn't looking you up kind you pricing? comment, you in but expect I eventually profile doing. what specifics, were terms of walk just or of I the caused executed wanted it

Tony Cheng

thing Thanks making embedded so risk return question. discipline have our we Look, really, trade-off one for to of it's sure Yes. that is statement that's the culture a -- more general right. in it's that the

to price just not there to for question a it It's is liability our to the right then a be And liability fine. perfectly pride So most types. thing ourselves is, is question -- of at shareholders. times, the the could we on able ability do be

things. add oftentimes have don't want or clients -- often or they do transactions to I oftentimes, these transact on But top, to change they way the

success, trade-off in an years of the been spate that point And the I had once towards we a was numerous examples you wins return played like years just a of out. longevity seemed we number for that. but sort area other risk Netherlands, until there's pricing where overnight probably if had large ago, a transactions of of an few which So again,

Suneet Kamath

you've And an I is care then think it. area been just to Got reluctant relatedly, that pursue. long-term historically

wanted Rates last Just Does a late are that business? year. transaction saw line we current higher. change to appetite Obviously, thoughts. get for your that your of

Tony Cheng

Yes.

I to think business of newer very care. current it's of performed do our continues We well definitely, firstly, is so. and book generations the very, long-term believe

again, the we pride ourselves at life However, will selective once and one and world we on being which will in we care risk will is the long-term apply liability of space, discipline. of And that of type the risk. we experts be look and type

top [ say wouldn't the apply I opportunities capital that I ourselves priority There's for that And to our I ] headwinds it's -- so just many numerous list. tailwinds the us given earlier. of numerous communicated

Operator

next comes The question Krueger KBW. from with Ryan

Ryan Krueger

I to XX%. XX% if The to quarters XX% running that target XX% the expected your ROE. just I recognizing the that and few the looks a to results But raised for think results closer biometric to you've to -- ROE you it you're provided, take last like adjust actual so for

above on towards XX% at or XX% end is just the guess you more that do some give to I wanted more of kind this point? you're think So to just -- running perspective higher of

Todd Larson

we XX% adjust put recently at We range. this XX%. we're We've -- impacts some and just I'll high that biometric positive hitting as end that experience we're quality off to to Yes, the performing we the Yes. out not the Ryan, well. been -- but other it's has are of have Todd. see quite point, Clearly, to been with had well. glad work that. well. start performing ready that Things

Ryan Krueger

more it. for Got in in-force are Tony, Japan. terms of starting talk opportunity? there, some your things really up It Japan about competitors could the like transactions you And you and seems of in then open to both

Tony Cheng

love No, side. as a question. Yes. and the Traditional thanks the We Japan the market, on both for GFS

brand the one top believe around positioned, years Asset probably, have won your our and head, them of the GFS given off We that of the side. were You'll transaction, transaction ago, -- market more relationship there, the was the centers X X, local and given probably, well pioneers delighted to the And completed, my we the question just that transaction. in the were size transaction we given very first probably win of the Intensive incredibly we right? on with side we

being comment the one the raised these the that whole look and where on. maybe back verifies or I risk Asian ways competition things. validates of it XX of a And in, were of the saying the often ago, if markets, this XX comes things capital many pioneers in years, is -- years we about you case when or the only one so market to asset effective these managing are and efficient even and

that appreciate our in detail there some XX-year nearly so won't into given that we experience also. QX doing nature in QX very I were we XXXX, can is given reasons -- which of started There well. there So go very the that obviously, increased transactions, competition were other in there. We much, Japan executed we're We there. strategic feel gosh, in

about positive very our that we're of business. So area

Operator

Nick comes question next Wells Annitto Fargo. The with from

Nicholas Annitto

Elyse. of towards for questions I'm my Ruby on more Re. Both center

any I that should to guess, being, have capital first replacing Re we of think The would its raised subsequent Ruby raise on RGA and any own? sidecars as growth

Todd Larson

That's right.

growth overall some and Re something overall need capital transactions. got capital we've the for by to over the up look and a like Ruby leverage hopefully that those sort stop at of or in that business provided as well larger -- with transactions, these the capital alternative the capital time also us as the returns the of the you capital committed give think vehicle of up leverage us business helps that market to like we apply go perspective, we confidence opportunities I after from

Nicholas Annitto

why then guys future? go like the that? thinking guess go should there What had said you sort was be And we doesn't follow-up, reasons And the that should about quarter Re. helpful. as reason That's PRT in think in Re into any impacts I for that I it. Got the Asset-Intensive business Ruby of the a or be didn't into Ruby

Todd Larson

it to back business to point. conditions. Ruby set automatically -- Ruby when subject up Let's asset certain what business intensive define just at bring subject and And U.S. Re would we business go we this the is subject into Re, the

Operator

question next with Evercore. Gallagher The from comes Tom

Thomas Gallagher

-- were that that how -- theme. showed A that? in-force show what more of sense heading for this of in on XQ? Can several of few -- you $XXX that based give a XQ? there up deployed many of what maybe on Are in expectation bunch those a in capital will just similar close announced, into announced, into just the up not closed million what the understand QX, those were yet quarter that The to the in want deployed be that follow-ups you've there should deals transactions that capital publicly didn't have but

Todd Larson

first Yes, transaction, so Canadian for the $XXX number the were all the announced million transactions, the in quarter. capital in except deployment

Tony Cheng

globe And add our to I businesses. on there the deals, Tom, across is All all pipeline could incredibly to is active your in comment say the haven't second we closed.

which So we able we'll speculate don't on deals to be sort of close.

of side our obviously business, spent much and But end on so as finding Todd the sources but capital. energy the on absolutely mentioned, alternate capital of management we front

capital happy levels to of we're and So plenty have we with future growth. our very believe fund capital

Thomas Gallagher

just if you -- in I'm fair you the the the Got that is the say, assessment? plus say Canadian pipeline, you. you year, are And more then, that Tony, probably -- would to end up a suffice book guessing, a on last few deal you exceeding based that's did that, XXX

Tony Cheng

I would yes, expectation. think, be the that

Thomas Gallagher

Ruby capacity you behind from as potentially the have capital. growth. has not or The there or there a Re, funding otherwise? of on other like is lot fundraising to there's all But -- want thinking capital and obviously, have process into to you your gone Are source else looking do be -- sounds potentially a of other that it -- sidecar about? I I And just should understand, just to that, then international of a thought much we anything funding

Todd Larson

Yes.

blocks existing call guess Ruby in Ruby year. Re, last into seed I the as Re it what announced, was there, blocks in year, in so for So some retro put we far, we we late last December

year, so there timing the Just goes nothing this on. and in the some will retroing be year due on, we business so to more far but process as

fundraising, the the at as at company debt then And some do levels. far some as comments, mentioned in of my other I capacity have HoldCo as operating we

sense As we done is that past, the look seen helps did some in of forward capital other the It The some And XXXX. XXXX, can surplus our can one get securitization we've as some in where well. have most we've in also business issued and the us of the bring makes past, embedded at retro some We've forms done alternative you've notes back we on sessions as capital. and the XXXX which pretty years. in over recent -- We it we nice. strategic books. demonstrates value some also value

Tony Cheng

meets trade-off that Yes. of shareholders. and source just And of deal return mean, mean, I Tom, why passion capital the efficiency capital that, the risk the find and just right yes, that's add takes it of I maximize to for to our underlying energy the the all to

opportunities in to not up multiple and as options those very deploy Todd it. there's that needed. as years, will over options, said, So we've but And sources we and -- obviously hesitate built the we're active those

Operator

with question comes Citi. from next Mike The Ward

Michael Ward

business Just more or you're thinking down there or landscape very aggressive sort and investment whether hoping with kind that PRT Financial you winning potential discuss could might business you're things there's the when strategies. of doing of like partners how have and of subsidiaries Just Solutions? Clearly, competitors the bigger out Bermuda in well. new competing you sitting are competitive for sort it's new

Just think this. curious help through us you if can

Tony Cheng

once breadth over comes the base, to of client of it types we the Yes. geography, clients we we platform, And different globe to where of just our very of number partnerships. probably risk have again, No. down the the The hundreds available intimate question. can the for close the have take. we Thanks types have - and

obviously, mentioned, -- given but we So okay competing, you first quarter and year, as doing we we're last the compete and the not by really we're right? way compete

shape. part mentioned be again, maybe one, that times, into we're but we to seek to either, those I good do have earlier, in won't as call in exclusivities. you're exclusivities. go get exclusivities, At -- those all find the reinsurer when another you they be of I really really We're to and you And detail going it, seeking

off all So leveraging really capabilities. those it's

a reasons. wonder, and do serving of deal last being the And You success out we you'll to around our say year the see core has over innovating. multiple there's and once But to over may of and the probably huge that would gee, those flow able environment always clients, changed RGA's are kind edge customer from that. some leverage -- strengths, why I our Zoom. the things bit. there were But off really, one of comes focus obviously, been start to around harder

Operator

Carmichael next Research. The with Autonomous Wes from question comes

Wesley Carmichael

Ruby for there's Is $XXX rule think thumb Is about of on get $XXX there capacity -- size of leverage you the one it there that a fit XXx? to think, lever million that billion equity of it or is $X.X there? just good can the said might million Re. billion, I north a something that $X to quick I'm sense liabilities there. Todd, one Is there? that? Just you or trying of

Todd Larson

end so perspective you're on. asking or... and on I'm if business a liability the clear underlying from To not

Wesley Carmichael

bunch sidecar going much I'm is I could that wanted just big figure PRT do for? I use how to if deals, think a you guess out, do you you of where possibly

Todd Larson

Yes.

XXx to is head, far probably current I trying in not think the for my think off. capacity, I'm

Operator

question The with Tom next Evercore. from Gallagher comes

Thomas Gallagher

new your about not of profit $XX through meaning statutory say slide. biometric most coming Just for XQ where that? GAAP if it potentially your up GAAP? very under as to end a way the of like going are flow, earnings see is period percentage say, cash the being of million I that you or the deferred when result high a the a GAAP of follow-up versus so, getting The getting that we in should so cash flow, your would I -- on statutory, be a 'XX think free would extra your And earnings deferred, GAAP are

Todd Larson

Yes.

on I that would be down what it currently. will most deferred, or GAAP cohorts -- So the some purposes of for regulatory for falls yes, that unfavorable through experience old come is where of guess, for of through GAAP would basis the -- statutory, and under like come LDTI, favorable a depending or type

Jonathan Porter

Yes. I also maybe it's to, clearly, to other statutory is there And material mean, add differences just on, obvious, Todd, but between and accounting. GAAP

other be claims would than just drivers there the other So experience.

Thomas Gallagher

thing reserves was was That another wondering because you under Yes. I LDTI. strengthened

You under strengthen reserves statutory. not did

about I the is measure I've a A, to A the basis way thought guess, there's So different it. to

be that way think an offset. fair that might to Is a it? So about

Jonathan Porter

there, Todd be I it Yes. about basis I would right, be could you is mean mean, I difference or the -- the released the death think guess you're as there's both minus, when depends there on quite plus or on right? a -- reserves that mentioned, different. claim,

of can would So I I two. but the don't have differences or thumb number a a point you rule there definitely be to, between

Operator

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

Tony Cheng

to demonstrating strong positioned Thank business. record attractive This very I start your once year shareholders. in Investor well to to the New quarter on ahead, very our in much. the the June we We ways, look earning opportunities many in capitalize quarter to growth during again your York to call. deliver substantial forward very in first in RGA. continue Thank in a seeing all Day are remain interest concludes and our questions our continued and you our and you a ability you for confident was our This power returns many further to City.

Operator

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

You disconnect. may now

Reinsurance Group of America (RGA) 3 May 242024 Q1 Earnings call transcript