REINSURANCE GROUP OF AMERICA INC [RGA] Filings

10-Q 1 rga-20220930.htm 10-Q rga-20220930

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-11848

REINSURANCE GROUP OF AMERICA, INCORPORATED

(Exact name of Registrant as specified in its charter)


Missouri						43-1627032
(State or other jurisdiction						(IRS employer
of incorporation or organization)						identification number)

16600 Swingley Ridge Road

Chesterfield, Missouri 63017

(Address of principal executive offices)

(636) 736-7000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer o Non-accelerated filer o

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01

RGA

New York Stock Exchange

6.20% Fixed-To-Floating Rate Subordinated Debentures due 2042

RZA

New York Stock Exchange

5.75% Fixed-To-Floating Rate Subordinated Debentures due 2056

RZB

New York Stock Exchange

7.125% Fixed Rate Reset Subordinated Debentures due 2052

RZC

New York Stock Exchange

As of October 31, 2022, 66,835,999 shares of the registrant’s common stock were outstanding.

Table of Contents

REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

TABLE OF CONTENTS


Item		Page

	PART I – FINANCIAL INFORMATION

1	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited) September 30, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Income (Unaudited) three and nine months September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) three and nine months ended September 30, 2022 and 2021	5
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) three and nine months ended September 30, 2022 and 2021	6
	Condensed Consolidated Statements of Cash Flows (Unaudited) nine months ended September 30, 2022 and 2021	7
	Notes to Condensed Consolidated Financial Statements (Unaudited):	8
	1. Business and Basis of Presentation	8
	2. Earnings Per Share	8
	3. Equity	9
	4. Investments	11
	5. Derivative Instruments	19
	6. Fair Value of Assets and Liabilities	25
	7. Segment Information	32
	8. Commitments, Contingencies and Guarantees	33
	9. Income Tax	34
	10. Employee Benefit Plans	35
	11. Reinsurance Ceded Receivables and Other	35
	12. Policy Claims and Benefits	36
	13. Financing Activities	36
	14. New Accounting Standards	36
2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
3	Quantitative and Qualitative Disclosures About Market Risk	67
4	Controls and Procedures	67

	PART II – OTHER INFORMATION

1	Legal Proceedings	68
1A	Risk Factors	68
2	Unregistered Sales of Equity Securities and Use of Proceeds	68
6	Exhibits	68
	Index to Exhibits	69
	Signatures	70

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	September 30, 2022		December 31, 2021
	(Dollars in millions, except share data)
Assets
Fixed maturity securities available-for-sale, at fair value (amortized cost of $57,630 and $55,873; allowance for credit losses of $52 and $31)	$	50,495	$	60,749
Equity securities, at fair value	137		151
Mortgage loans (net of allowance for credit losses of $43 and $35)	6,558		6,283
Policy loans	1,202		1,234
Funds withheld at interest	6,177		6,954
Short-term investments	225		87
Other invested assets	3,246		3,070
Total investments	68,040		78,528
Cash and cash equivalents	3,512		2,948
Accrued investment income	628		533
Premiums receivable and other reinsurance balances	2,820		2,888
Reinsurance ceded receivables and other	2,456		2,580
Deferred policy acquisition costs	3,887		3,690
Other assets	1,362		1,008
Total assets	$	82,705	$	92,175
Liabilities and Equity
Future policy benefits	$	33,715	$	35,782
Interest-sensitive contract liabilities	30,286		26,377
Other policy claims and benefits	6,249		6,993
Other reinsurance balances	909		613
Deferred income taxes	686		2,886
Other liabilities	2,910		2,663

Long-term debt	4,207		3,667
Collateral finance and securitization notes	—		180
Total liabilities	78,962		79,161
Commitments and contingent liabilities (See Note 8)
Equity:
Preferred stock – par value $0.01 per share, 10,000,000 shares authorized, no shares issued or outstanding	—		—
Common stock – par value $0.01 per share, 140,000,000 shares authorized, 85,310,598 shares issued at September 30, 2022 and December 31, 2021	1		1
Additional paid-in capital	2,493		2,461
Retained earnings	8,820		8,563
Treasury stock, at cost – 18,483,720 and 18,139,868 shares	(1,697)		(1,653)
Accumulated other comprehensive income (loss)	(5,964)		3,642
Total Reinsurance Group of America, Inc. stockholders’ equity	3,653		13,014
Noncontrolling interest	90		—
Total equity	3,743		13,014
Total liabilities and stockholders’ equity	$	82,705	$	92,175

See accompanying notes to condensed consolidated financial statements (unaudited).

Table of Contents

REINSURANCE GROUP OF AMERICA, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Revenues:	(Dollars in millions, except per share data)
Net premiums	$	3,247	$	3,094	$	9,632	$	9,106
Net investment income	769		796		2,333		2,367




Investment related gains (losses), net	(134)		58		(514)		472
Other revenues	184		95		432		354
Total revenues	4,066		4,043		11,883		12,299
Benefits and Expenses:

REINSURANCE GROUP OF AMERICA INC [RGA] Filings
REINSURANCE GROUP OF AMERICA INC [RZB] Filings
REINSURANCE GROUP OF AMERICA INC [RZA] Filings
REINSURANCE GROUP OF AMERICA INC [RZC] Filings
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REINSURANCE GROUP OF AMERICA INC [RGA] Filings

REINSURANCE GROUP OF AMERICA INC [RZB] Filings

REINSURANCE GROUP OF AMERICA INC [RZA] Filings

REINSURANCE GROUP OF AMERICA INC [RZC] Filings