REINSURANCE GROUP OF AMERICA INC [RGA] Filings

10-Q 1 rga-20210930.htm 10-Q rga-20210930

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, 2021

☐ 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

As of October 31, 2021, 67,600,151 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, 2021 and December 31, 2020	3
	Condensed Consolidated Statements of Income (Unaudited) three and nine months September 30, 2021 and 2020	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) three and nine months ended September 30, 2021 and 2020	5
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) three and nine months ended September 30, 2021 and 2020	6
	Condensed Consolidated Statements of Cash Flows (Unaudited) nine months ended September 30, 2021 and 2020	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	20
	6. Fair Value of Assets and Liabilities	26
	7. Segment Information	32
	8. Commitments, Contingencies and Guarantees	34
	9. Income Tax	35
	10. Employee Benefit Plans	36
	11. Reinsurance Ceded Receivables and Other	36
	12. Policy Claims and Benefits	37
	13. Financing Activities	37
	14. New Accounting Standards	37
2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
3	Quantitative and Qualitative Disclosures About Market Risk	68
4	Controls and Procedures	69

	PART II – OTHER INFORMATION

1	Legal Proceedings	70
1A	Risk Factors	70
2	Unregistered Sales of Equity Securities and Use of Proceeds	70
6	Exhibits	70
	Index to Exhibits	71
	Signatures	72

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, 2021		December 31, 2020
	(Dollars in millions, except share data)
Assets
Fixed maturity securities available-for-sale, at fair value (amortized cost of $54,347 and $49,548; allowance for credit losses of $17 and $20)	$	59,289	$	56,735
Equity securities, at fair value	160		132
Mortgage loans on real estate (net of allowance for credit losses of $39 and $64)	6,366		5,787
Policy loans	1,234		1,258
Funds withheld at interest	7,034		5,432
Short-term investments	82		227
Other invested assets	3,404		2,829
Total investments	77,569		72,400
Cash and cash equivalents	3,027		3,408
Accrued investment income	574		511
Premiums receivable and other reinsurance balances	3,013		2,842
Reinsurance ceded receivables and other	2,585		983
Deferred policy acquisition costs	3,687		3,616
Other assets	994		896
Total assets	$	91,449	$	84,656
Liabilities and Stockholders’ Equity
Future policy benefits	$	35,666	$	31,453
Interest-sensitive contract liabilities	26,017		23,276
Other policy claims and benefits	7,117		6,413
Other reinsurance balances	543		598
Deferred income taxes	2,407		3,263
Other liabilities	3,327		1,340

Long-term debt	3,173		3,573
Collateral finance and securitization notes	314		388
Total liabilities	78,564		70,304
Commitments and contingent liabilities (See Note 8)
Stockholders’ 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, 2021 and December 31, 2020	1		1
Additional paid-in capital	2,447		2,406
Retained earnings	8,458		8,148
Treasury stock, at cost – 17,710,775 and 17,353,697 shares	(1,604)		(1,562)
Accumulated other comprehensive income	3,583		5,359
Total stockholders’ equity	12,885		14,352
Total liabilities and stockholders’ equity	$	91,449	$	84,656

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,
	2021		2020		2021		2020
Revenues:	(Dollars in millions, except per share data)
Net premiums	$	3,094	$	2,825	$	9,106	$	8,434
Investment income, net of related expenses	796		654		2,367		1,893




Investment related gains (losses), net	58		66		472		(138)
Other revenues	95		98		354		264
Total revenues	4,043		3,643		12,299		10,453
Benefits and Expenses:
Claims and other policy benefits	3,289		2,530		9,294		7,894
Interest credited	177		196		541		529
Policy acquisition costs and other insurance expenses	338		374		1,010		912
Other operating expenses	229		211		683

REINSURANCE GROUP OF AMERICA INC [RGA] Filings
REINSURANCE GROUP OF AMERICA INC [RZA] Filings
REINSURANCE GROUP OF AMERICA INC [RZB] Filings
10-Q	[2021-11-05]
10-Q	[2021-08-05]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-06]
10-Q	[2020-08-06]
10-Q	[2020-05-07]
10-K	[2020-02-27]
10-Q	[2019-11-01]
10-Q	[2019-08-02]
10-Q	[2019-05-03]
10-K	[2019-02-27]
10-Q	[2018-11-02]
10-Q	[2018-08-03]
10-Q	[2018-05-04]
10-K	[2018-02-27]
10-Q	[2017-11-02]
10-Q	[2017-08-02]
10-Q	[2017-05-04]
10-K	[2017-02-28]
10-Q	[2016-11-02]
10-Q	[2016-08-03]
10-Q	[2016-05-05]
10-K	[2016-02-29]
10-Q	[2015-11-04]
10-Q	[2015-08-05]
10-Q	[2015-05-05]
10-K	[2015-03-02]
10-Q	[2014-11-05]
10-Q	[2014-08-05]
10-Q	[2014-05-05]
10-K	[2014-02-27]
10-Q	[2013-11-05]
10-Q	[2013-08-05]
10-Q	[2013-05-07]
10-K	[2013-03-01]
10-Q	[2012-11-06]
10-Q	[2012-08-07]
10-Q	[2012-05-07]
10-K	[2012-02-29]

REINSURANCE GROUP OF AMERICA INC [RGA] Filings

REINSURANCE GROUP OF AMERICA INC [RZA] Filings

REINSURANCE GROUP OF AMERICA INC [RZB] Filings