NYSE$RGA

Reinsurance Group America Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth quarter and full year results with net income of $2.30 per diluted share and adjusted operating loss of $0.56 per diluted share.

Reinsurance Group of America reported fourth quarter net income of $156 million, or $2.30 per diluted share, compared with net income of $132 million, or $1.94 per diluted share, in the prior-year quarter. Adjusted operating loss totaled $38 million, or $0.56 per diluted share, compared with adjusted operating income of $81 million, or $1.19 per diluted share, the year before.

  • Net income of $2.30 per diluted share
  • Adjusted operating loss of $0.56 per diluted share
  • Premium growth of 4.5% over the prior-year quarter
  • Deployed capital of $106 million into transactions

Headline financials

Total Revenue

$4.36B

Previous: $4.14B+5.2%
EPS (adj)

-$0.56

Previous: $1.19-147.1%
Avg. Investment Yield

4.7%

Previous: 4.2%+11.9%
Capital Expenditures

$4M

Previous: $11M-63.6%
Free Cash Flow

$357M

Previous: $532M-32.9%
Net Income

$156M

Previous: $132M+18.2%
Operating Income

$57M

Previous: $99M-42.4%
Gross Profit

$15.6B

Previous: $13.8B+13.1%
Cash & Equivalents

$92.2B

Previous: $1.3B+6992.3%
Total Assets

$92.2B

Previous: $84.7B+8.9%

Revenue & EPS history

RGA · Revenue · Quarterly

$4.36B

Q4 2021+5.2%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Our fourth quarter was impacted by a meaningful level of COVID-19 mortality claims. Beyond the effect of COVID-19, our results were strong, as a number of our businesses performed well. We continue to see good new business activity both in our organic business and in the pipeline for in-force transactions.

Tailwinds

  • See good new business activity both in our organic business
  • See good new business activity in the pipeline for in-force transactions
  • Deployed $106 million into in-force transactions
  • Repurchased $50 million of common shares
  • Balance sheet remains strong

Headwinds

  • Fourth quarter was impacted by a meaningful level of COVID-19 mortality claims.
  • Quarterly results reflected total segment COVID-19 claim costs of approximately $276 million in US and Latin America
  • Quarterly results reflected unfavorable individual life mortality experience, including COVID-19 claim costs of $10 million in Canada
  • Quarterly results reflected approximately $61 million of COVID-19 claim costs in EMEA
  • Quarterly results reflected favorable underwriting experience, absorbing $4 million of COVID-19 claim costs in Asia Pacific

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

-0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.0%

Avg return

30 days after

51%

34 / 67 earnings

Positive

+11.5%

Q2 2020

Best reaction

-13.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-2.5%-3.9%
Q4 2025+9.4%+7.1%+0.6%
Q3 2025-3.9%-0.9%+0.5%
Q1 2025+5.7%+6.6%+8.7%
Q4 2024-9.6%-13.6%-17.3%
Q3 2024+0.1%-0.9%+6.3%
Q2 2024-8.5%-12.4%-2.1%
Q1 2024+5.6%+6.4%+9.9%
Q4 2023-3.9%-4.0%+1.5%
Q3 2023+2.4%+4.4%+10.1%
Q2 2023-1.5%-1.9%-2.5%
Q1 2023+5.3%+6.7%+5.2%
Q4 2022-6.5%-2.1%-3.5%
Q3 2022-0.3%-0.2%+0.7%
Q2 2022+6.6%+7.7%+7.6%
Q1 2022+7.1%+4.6%+11.3%
Q4 2021-1.7%+2.2%-9.4%
Q3 2021-9.3%-9.0%-18.0%
Q2 2021+5.4%+9.6%+6.5%
Q1 2021-4.4%-3.7%-2.6%
Q4 2020+3.7%+3.2%+18.5%
Q3 2020+4.9%+15.8%+21.9%
Q2 2020+11.5%+8.1%+11.1%
Q1 2020-13.6%-5.9%-3.7%
Q4 2019-3.9%-5.3%-15.5%
Q3 2019+0.1%+2.8%+2.0%
Q2 2019-5.7%-7.1%-7.8%
Q1 2019+0.7%+0.2%-0.8%
Q4 2018-4.1%-2.6%-3.3%
Q3 2018+6.6%+9.4%+14.0%
Q2 2018-1.4%+1.9%+3.3%
Q1 2018-0.5%-2.4%-4.3%
Q4 2017-0.8%-3.6%-4.7%
Q3 2017+6.0%+4.0%+10.4%
Q2 2017+3.7%+5.0%+1.9%
Q1 2017-4.2%-2.6%-3.7%
Q4 2016-0.2%+1.1%+5.2%
Q3 2016+1.0%-0.1%+13.5%
Q2 2016+3.5%+3.0%+9.1%
Q1 2016-1.8%
Q4 2015-1.3%
Q3 2015-7.0%
Q2 2015-0.2%
Q1 2015-1.7%
Q4 2014+3.2%
Q3 2014+2.9%
Q2 2014+1.7%
Q1 2014-4.5%
Q4 2011+2.4%
Q4 2013+2.0%
Q3 2013+2.2%
Q2 2013-6.1%
Q1 2013+1.6%
Q4 2012+2.7%
Q3 2012-9.0%
Q2 2012-0.7%
Q1 2012+0.8%
Q3 2011+1.9%
Q2 2011-7.0%
Q1 2010-1.1%
Q1 2011+1.1%
Q4 2009-0.3%
Q4 2010-0.3%
Q3 2009+2.2%
Q3 2010+2.2%
Q2 2010+1.5%
Q2 2009+1.5%

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