Reinsurance Group of America (RGA) 5 May 232023 Q1 Earnings call transcript

Good day. And welcome to the Reinsurance Group of America, Inc.

First Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

to Vice conference Officer. President like Larson, to now Executive Senior and would turn over the Todd I Chief Financial go ahead. Please

Thank XXXX RGA's to call. you. first Welcome conference quarter

RGA's this Barbi, Leslie Investment Officer; Chief with call Cheng, Porter, Chief the Jonathan Officer. on Officer; Tony joined Anna I'm Manning, Risk Chief and Executive President; morning

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

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

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

And Anna now I'll turn comments. to her for the call over

organic nice markets. this in lines, regions product year. you, Last night, And momentum Thank good across the morning. with earnings the [indiscernible] and I first included quarter adjusted business some and good and on quarter am a quarter many call reported very of that thank with joining operating our new strong Todd. very you per we this our share, for performance morning. in-force $X.XX pleased start Good to

of U.S. we perspective provide another we our the more Asia in was management of in-force capital UK, the across deals first successful on little PRT success To our the wins, had other a and front, and that completed transaction. and $XXX products. geographies quarter, and Canada, and On into active our Europe, deploying transactions, breadth million many

to We valuable in business a have years, longevity longevity built have close global years. sizable for and the over XX And business. those reinsurance been

solutions approach and our we PRT in side-by-side in model sides an on active both major longevity And include on markets. sheet. balance a our the are the expanded strength market We to expertise all and XXXX, partnership the capitalize of reinsurer in to U.S.

visible, the market. We a broad at end are partnering high-quality of very including access of insurance with large PRT to and opportunities the couple partners with well-established,

We number the and for segment going are PRT confident of are a growth active and attractive market forward. on we in the be pipeline, opportunities that an excited will U.S. RGA

U.S. we reinsurance different PRT and pipelines organic Beyond very our our products. across in healthy opportunities, see include many business, and are In globe. opportunities opportunities the markets

the when and leader as product we resumed. capital on timely signs a underwriting early as in and basis. an fully This Asia and Kong Hong In combining as activity Asia, in travel development, strong throughout rebound is are in see business a solutions result, we many of treaties exclusive

structures. our we the win advantage underwriting America, expertise. North targeted this in to engage us In leveraging and an by new enables our I us underwriting and continue business and programs strength, services complex assess signature breadth including facultative to opportunities more provides expertise other risks of risk as believe and

we I global or resources our advantages also additional provide the to strong to and attractive geography product. regardless as can believe footprint of opportunities relationships client most allocate

long long track important, transactions, of equally only established from but history those an not have We of winning a transactions. record performance

was portfolio and the in strong positioned XXXX. we a in quarter investment good a This our start celebrate side, We forward. our board across was anniversary RGA's withstand believe impairment remained a solid, quarter Variable more going for uncertain as the to modest. new milestone and the was well On was very period investment year XXth good. attractive money performance overall income asset rates is investment that

clear. is well is for financial business our protection resilient the We need positioned, and are

win a innovative creating of consumers, and a our for win is for for strategy Our clients new win RGA. solutions a

recognize changes navigate help needs and shifting increasing clients uncertainty, economic and all consumer that evolving accounting and regulatory to Our and do can competitive RGA respect dynamics.

RGA, earnings Partnerships the we with global growth to to that, these business ability level RGA opportunity provide saw trusted another at talented and me the gives my the I our time team, when underlying attractive of environments. and RGA's this to a confidence returns add continue when period power recall great can't succeed to expertise deal of shareholders. you in in momentum. deliver Throughout And to it in and

results. continued now it interest and in your Todd I over and over support hand financial RGA, for you will Thank go the to to

Thanks, Anna.

items couple I on of mention. results, are commenting to would like there Before a

additional or we a targeted quarterly and presentation RGA's We investors. new X, January provided that disclosures, LDTI. transparency we April, effective of adopted LDTI. long-duration into new provide standard a insight long-term the new adoption business that the financial over to reflected will accounting the supplement standard, the First, In XXXX improvement with and provide time, accounting along believe better recasted performance

to did noticed specific not in our diminished to impacts materials. of we reliability may reporting you that make COVID Second, have continues decline. the quarterly reference have COVID COVID and

address quarterly breaking we will without forward, results our Going separately. COVID out

a The the equity adjusted share. adjusted $XXX XX.X%. operating income foreign pretax RGA quarter's million results. of month the earnings on adjusted currency was $X.XX share $X.XX, operating trailing headwind and for of to XX per Turning which per operating of quarter reported return includes

Excluding as equity the to on assumption changes XX.X%. adjusted was XX items, trailing notable month the return referred XXXX operating

premiums premium the as result business foreign for in deployed capital basis. adjusting X.X% were premiums key We and new adverse and XX.X% metrics strong transactions After quarterly a other in-force constant up and currency impact, are into results. currency with up constant other pleased quarter. currency on production, the growth, for the such Reported were investment

momentum across business our to see continue good We segment.

to investment Slide due in-force primarily America The to reflected quarterly and Turning RGA’s Latin the in results, on and be investor relations actions overall earnings segment management results can higher Mortality found website. presentation our on starting segment U.S. X Individual Traditional favorable in our that business, income.

that flu season year. with data impact in COVID-XX consistent population early frequency mortality, negative declining of the the mortality of fourth likely an was showed COVID-XX to individual of Our quarter last and due peak non a excess claims the general favorable,

These positives The unfavorable ratio including certain income. is partially volatility XXX%. experience Health in mortality premium in Group over these business Group favorable with in reflected were Noting currently and claims by had cohorts experience, Individual large net the business. on offset favorable both our U.S. cohorts

yields including U.S. in Asset expectations. investment strong, Solutions line our Intensive higher favorable And perform business our results securities. floating rate reflecting continues were Capital to business with spreads, on

business earthquake the and and The primarily moderately Canada related Traditional results the business of Solutions Financial Financial reflected longevity experience. favorable In results reflected experience, EMEA’s segment, were experience. to with morbidity claims business the expectations Turkey. Traditional Middle estimated to and East longevity in due unfavorable Solutions favorable line reflected million the Africa in Europe, $X mortality

across Asia-Pacific Turning segment strong to from Financial million well performed than Solutions region. and loss of business experience less reported adjusted to our range, new recent The due operating quarterly a the Asia-Pacific overall income. business reflecting activity. higher business. favorable investment the Results Other pre-tax $XX reflected Traditional contributions primarily Corporate The expected

Slides of management, capital Moving on our shown to on earnings XX XX presentation. and as

we capital see a excess the continue positions capital liquidity in-force of other quarter healthy and deployed quarter, and into Our we approximately very pipeline. $XXX with remain to capital of billion. $X.X million strong transactions the ended and In and

of repurchases million $XXX $XX dividends. in capital a of shareholders share to $XX returned also through total and We million of million

We in to transactions share and capital and expect deploying into repurchases. and returning to capital through remain active in-force excess dividends other shareholders

discuss she to Chief I over will and will Investment results. Officer; investment our our now Barbi, turn current Leslie the conditions and call market

quarter investment in Thanks Todd. We income, across credit had first rates investment favorable and money new the results performance.

in higher reflecting variable yield. X presentation, the the income and show Slide portfolio that for the On yield was quarter investment we X.XX%, solid non-spread

the meaning non-spread the X.X% of X.XX%, before income, last the quarter at to year. yield Looking base in increased first portfolio up investment from variable

first the yield, Our portfolio yield. current new portfolio above and levels new support X.XX%, to well the so a money base quarter higher at was rate reinvestments money continue in

our above from real expectations ventures. modestly joint coming was estate EII

securities in benefit rates over year the extension to such to have the more floating on actions last higher period taken a from with of the environment trades to going continue longer cash. positioned some assets withstand forward. rate Also, of lock a for swapping our well yields We to yields advantage time. is we period recently rate and and portfolio uncertain believe floating fixed more We attractive of in order as

X the the presentation of investment Slide covers earnings portfolio.

Our investment strategy long-term balances to build a portfolio risk to and produce weather return and cycles value.

million. $XX of the quarter, rating are ratings quality steady has average credit investment of and portfolio and ratings the grade XX% slightly modest performance were high-yield the downgrades holdings was outpaced portfolio rated strong A. an overall Credit impairments Our category. in BB primarily Over improving to in at our and first upgrades was is

on Moving real we've particular. and to to on earnings presentation Slide XX and additional office exposure information added XX; commercial in our estate

lot and structured Our portfolio to a of returns is with protection. provide us solid

Mortgage We team billion our through have intelligence ground ahead at would loan is high loans CML. means of The or be of put with that surveillance. has we portfolio quality. the there's offices Loans in well loans Commercial The our our of XX% experienced an on portfolio that amounts absorb the and lot hold regional before price cycles us that they declines eight and managed that equity boots property give a generally We risk. average $X.X originate LTV would

X% further mitigate of a XXXX. well-laddered CMLs risk mature balance at this in profile. reviewed We Valuations of the X% are year maturity Only least the with mature in and annually.

about there's commercial the loan in portfolio. XXst. That's mortgage of out billion. as sign less of portion of XXX The one one X.X% is office portfolio Another the is that than CML loan and represents strong March delinquent portfolio just of $X.X the loan

office properties, million. is average business of Our about an average portfolio loans across XX% strategy and on more loan diversified than suburban district. The focuses size $XX major city and XXX skyscrapers central has not with LTV of an office

Our more areas diversification as investments well. providing metropolitan are geographical located statistical strong than XX across

expect as see portfolio We where proactive from maturities or and the environment, metrics. about are RGA, includes as would or borrowers lease process our with our are office you expirations monitoring actively and engagement we portfolio realistic we changing approach

challenges, transition and use portfolio, of to adjustments. presents some process this market environment of period have confident I'm that this navigate people the in While we office through

continued our to be In results investment overall have strong. summary,

well actions investments, market to and through confidence approach that we diligent the of conditions. our Our manage the are changing quality strategic our portfolio, and prepared me to proactive surveillance give underwriting

And now back will Todd. to I pass it

Leslie. Thanks

year, our we business strong power. summarize, start of pleased are strength earnings with underlying to the To the and the

open it we'd to now your happy questions. And up be for

first [Operator question Bhullar J.P. The Instructions] comes Morgan. ahead. with Please go Jimmy from

morning. Hey. Good

they've I the LDTI question traditional than business. on quarters. in a were higher U.S. just had first, margins They under So the been of your in any

do what what the could And about maybe of if the were to type versus you So what as talk some sort you view this that strong contributors quarter? – are the results lifted one-off might of wondering sustainable of sort things contributors margins? have

could have where will of some Jimmy had the down we in-force good. a the business imbalances, but the we about the to order And break over monitoring pieces the about to actions within clients experience pieces did give we its traditional would the a the I and better which actions we're be very is talked and let you quarter. balance strong various it helpful some and get understanding in-force other quarter. management back years rate through bit with of Hi. few a talk some Todd. think performance actions, it the maybe in the U.S. sort as very Overall during of the line of activities. constantly helpful. our performance is see me little include Maybe for And moving past work quarter, we One underlying

– really some The right would rate spread above it through of quarter. been value on actions where I a rate have value through in the to the management the of rate we those the out XXX%. time some actions, actions premium line away ratio of these them of in-force a the value actions book quarter, way that in LDTI came to positive did bottom net currently historically, accounting of because realization economic of given over through create had did an So we because actions. lot increase underlying that highlight which treaty brings the execution want that the a flow those cohort the in the that works, have are

about, would on experience was large we've experience and little quarter-to-quarter. large some claim really claims, quarter, And out and volatility claim claim each for some us as large negative And and time, say Offsetting and most unfavorable but over we the larger the I talk you've experience bit a we'll that all overall part. the from claims normal have on did in seen evens that historically other the actions large also heard canceled again volatility some good the have out. in-force

commented about investment a the variance. we overall health Then – experience and I income some group And in were individual some would I did then And our that including as is and quarter. in other items the remarks, that $XX higher have had miscellaneous my positive other we in some million positive some size items quarter. favorable

Okay. assume And and of a more should this then doing us this – had the give rate into done went run sort your we into if could quarter quarters? you And insight what going than last some thinking of buybacks in more is several you in that forward? what

our power pandemic, exiting we're at deal very a pipeline capital as we're as healthy and Well, well. pipeline looking feeling earnings as mentioned also still for very good as about quarter, we we the We're generation. the

So we and managing level. advantage the just its I But off little want one, recently we we're capital we're very to we've comfortable confident two, I sure we're capital excess the price think And mentioned current down managing of, overall more make – took level capital was generation our below bit. base. opportunistically with as the actively a again, share

you. Thank

Operator, we the for question. next are ready

question from Barnidge Sandler. you. comes Please The go next with Thank Piper John ahead.

you those morning. side very and talk opportunity, first you PRT insurance world frequent on a the much the pipeline, like some the more import flyer Thank partnerships expertise all the you. quarter. little about transactions Can up racked maybe bit carriers? over you Thank the side-by-side that and in for with miles good Looks with

flyer Thank miles you frequent for racking are the up. question. Yes, It's Anna.

step a first. take me address question I'll your Let back, PRT

Let in size U.K. years longevity market. We've I if nice many me longevity and take first reinsurance business deal we the a been for across a in quarter many markets, step may. completed the the and in back,

that this of demand we pure – years, that we pensioners lifetime for asset quite full roughly the well in – and excess and strong solutions. the over call nicely, mentioned over strong benefits. longevity $XX of I worth years as billion now a So at we're it's in well. where providing over There's longevity both continuing those last demand cover grown have as have consistently been expected XX performed solutions, those solutions and business stage quarter has two-million Recall, fourth

a client strategy, Now them is we've with lot is model that's and U.S. side-by-side our rather added and leg about no in we many longer this side-by-side our PRT to of another the years, for strengths. grow what that like this as we model to core market demand There's we we partners. extending leverages where And business. expect of but sit some behind their out see it partnership sizable. The this really we sit the very

age that mortality very well. access the older a Remember, insights, advantage. mortality. are have We the We experts. knowledge age data That's to older especially and we regarding know

consider that diversification have the we players not bring. large that's advantage you in the mortality all because when something the of business, that market PRT then And can

us two it combination very so time grow delivering reputation that successful stool plus on we just be from additional this strength, attractive, commitments. think market. and for and the help And that's We of PRT our will, very, expect those leg financial to the is and over our our into,

And business I also that and pipeline, just in across I recall our organic it's have think, I the opportunity much this prepared transactions, the can't terms of it's of rest seen in reinsurance globe. the Now the in not my a in I said remarks, time momentum.

well strong coming very and of positioned. We pandemic, the very out really are

is final then comment. And here my

the on track level, up levels record. from and the to question capital good set in that with up flexibility, potentially We're have with Todd we following the the With market our long addressed, look, to to capital increasing growth shape opportunities. these dislocations benefit really add we're and

mortality being have for follow-up cash over-earning? much very that. on performance goes you I to line. Thank more little Jimmy's it's bank question. view And five run some much of but mean, closer as dimension improved some you do ratable obviously, in capital XQ's real that seems the How results received on maybe I help answering back it is versus my a you. the Thank trying like bit. transactions, in less to deployed quarterly four, than estate help also with to just top It mean, there. for

It would to kind a that John, – would forward-looking things this is of to forward. on optimistic would as that's next far strong detailed in-depth thing our quarter, into to this power that happened prefer underlying – I and of call very discussion was really like good Todd. and like maybe Day next month. going that But get I'd kick quarter, not a like our coming a up the we're guidance, more depth as earnings Yes, around I business a in bit to the lot more month. little to underlying in with Investor to get and details

I answers. that. to understand. the for And forward look Thanks

Krueger question comes KBW. go Ryan next with The Please ahead. from

Hi, thanks. Good morning.

you could of in was favorable size those. in think EMEA some of Asia the I I mentioned perspective and some on hoping both sort you the give results quarter.

it we – region. it's good, say I income Todd. Yes. good higher so as it's was the with very think some underlying I No yes, much would Asia, And Ryan, performance. commented hi, Well experience pretty well. very investment And across strong

As for positive a about was $X positive the well, a million had It pretax Australia result. quarter.

good have to see a it's quarter. good So, Australia

here. continue And sustain level. provide in guidance strong. meaningful we'll again, a was more we'll everybody hopefully, that weeks And Asia to few for

had the above were new on getting guess money reinvesting yield. past, rates. about interest talked benefit you I you from portfolio And it. Got the In

tailwind can the about the ongoing income? investment next over think you us higher that maybe new Now year year, from help the we're potentially in

rates we for actions the moved This all the of And been the will parallel, rates of that been benefit giving. if we that I had Ryan. is to of first last about taking forward did cumulative $XX are fix. our have talked I Thanks, But in ballpark extend said, rate last we what Yes, Leslie. amount some this you – really and year. point that $XX had think is couple had lock maturities right, we've per What look quarters that's with around quarter sensitivity million-ish points. the would would moving quarter in million floating as all those basis to going I changes note, to XX is the had move and like

So, them. these of make to higher we yields we are good us, sure for and advantage take want

Great, you. thank

Next Kligerman Suisse. from question with Credit go ahead. comes Andrew Please

good follow-ups. interested, that transfer your they that clients and of not Is outside your are Thank, primary capital? about mention clear that. quite curious Very morning. partners. few on are A pension risk private I'm

you a hear So, bit. elaborate would to love

Anna. are Andrew, or are equity Hi are it's alternative organizations, private They partners Yes, insurance our the clients. not long-standing other life companies. they

a And Is transaction. kind transfers. a be where know it? involved if that see setup the partners the each of came you will you that to in structured Anna, think of So about of risk pension it's sort program so way something approach kind to right

also a I our this ask structured that's think on Investor approach, partnership. the good we providing a where information will additional would that be defer for we I Day description, and

of of might I of a occurred a on And actual that kind it not quarter? in of – what Like and earnings – picture Deferred just the actions, in-force what is. color the been either. Got kind little clear little benefit? transactions have types the in-force Maybe it. then I'm that

we've Todd. maybe of can historically, include clients Yes, we potential actions, variety balance, in sure that treaties work shares is talked in we recaptures, that parts can a world, rate the Andrew, variety relationship our about, do there Again, the to of and winning that make other as things of the it's with things. of is

some the positives actions some was we was business overall was earlier And bit executed performance In $XX activity million, things. actions and rate there was the in-force of on, I large negatives. mentioned quarter, The value quarter offset, to for some ongoing along I about other impact think of relatively again, contributed of the by organization. with the in additional and action that in-force But overall that the impact claims the quarter, as our quite so good. a the

kind final. I to see. clarify will just my And of that that, be

smoothed had that offset unfavorable mortality you isn't in under underlying new the some the that accounting. but it, experience So, out

just I make of So on kind sure that was I clear wanted to that.

took that even of So away benefit actions, under the there was LDTI some actual it's the now? rate though mortality smoother from

in than that. the for large saw volatility quarter, we Yes, primarily that XXX%. was claim from Andrew, greater the premium the cohorts Yes, for have thanks net asking ratio that

premium less variance So goes have income. XXX% spread it currently ratio out. cohorts through have been XXX%, it would under in the a If less on that would LDTI, than than been of net

Thank you.

Sorry, of were just point frequency variance XXX%. is less more too. Jonathan Andrew, to add favorable premium the actually cohorts with was an than some is Maybe on net this X that had we that that ratio

in the positive some So of spread was out periods, benefit just Todd as mentioned. future that

for that. Thanks

comes question ahead. go Bergman from with next Jefferies. Please The Dan

Hi, given that on this was intensive in deal see the through discussed outsized estimate start, rate can further momentum and the that seemed move to just saw guess premium premium as on first the And core you give expect of the the strong you're any quarter? earlier, growth given quite some you you'd are we was where wanted just thanks. you all U.S. organic in business give the rest shook by the out to Thanks. there in year? seeing that can how growth all to trend thoughts what and morning. if quarter. quarter. in the Good driven I in activity of It like you an I growth

Hi, growth, very strong. again, Yes. with, No, overall Todd. premium Dan, happy it's very

business, what's the grow high mid- we maybe expect question your continue with to the But still growth around we to absent our is underlying expected normal or growth. ability the single globe. I premiums have the to contributions transaction, PRT digits overall that at think have we

Tony. is this Dan,

add that. just me Let to

whole both Anna about pretty the much look, and business. transactional we're the mentioned, As the across optimistic flow on globe,

incredibly we're but asset we do and side in mentioned, the sheet. liability on balance of geographically, what As the broad also both

whether reopening any in performing that behind experiencing. we're with travel, of exhibited dealing that Yes, we're favorably. not be them We we a the it's growth blocks of So, deal the the very could we've see lot – Asia, tailwinds that the with quickly. discipline

it And our amplify of traditional more incredibly two framework in essentially a see of all underwriting, I'll to our throughout And numerous tailwind then home the able U.S., that win our we've flow and that And to where than through our of fair in all our change one, Asia, is market, therefore, business directly the strength the number capital in ways huge strength – number that's win then you And incredibly brand. strong core improve – we behind growth. brand share just signature improves we that. so there. it strong, business just continues is call been just

to more, just really to in else but you. profitability and then equal. move could That's the moving directions year, LDTI, lower Got And a all the LDTI, one in it. Thank helpful. if America, clear seem maybe as before there bit then first maybe claims just quarter seasonality for earnings we your higher be little with North through I a particularly

that the typical magnitude same smoothing earnings? there's if is the see cadence Any to wanted to post-LDTI. expect seasonal any be seasonal we very just expect of color change I to give earlier? seasonality look guidance given can you you the there pattern there would on you'd that discussed any Should how the some helpful. of Or to So

Yes, hi Dan, it's Jonathan.

Let me take one. that

effects, think that about. we the under see LDTI given big So expect to seasonality the of dampening would picture, talked some I you mechanisms

this for mentioned or negative positive dependent already quarter, it is on in have the cohorts period. what Todd As though variances

So predictable. it's not fully

picture, that just that well. forward. going in seasonality mind be a little think expect So big I as would less bit we would But keep

thanks it, so Got much.

from The next question Please go with comes Barclays. ahead. Benguigui Tracy

note $XXX to issuance that. an Re million you. upon Apollo the was We'd deal. where morning. your Thank behind Good sole embedded surplus Chesterfield touch value This like investor is

of that the there the of were the opinion life embedded determines drivers to an block? subject and you key on actual unlock part that. So that structure means reserve redundancies What third-party were allows term your value

Todd. based mortality about we done on collateralized business. note appraisal, be the down I'm Hi like of talk company quarter, at of efficient the business. basis. appraisal regulatory executed a details, a but sure of portion on very normal transaction because in our first we bit block the actuarial Tracy, would surplus of the the provides not it'll – the it's by it embedded Yes, value capital operating can traditional We a a it's quite Actuarial level

Okay. Could you type see these yourself doing transactions? of more of

Yes. capital of alternative strategy. our It's part

years If embedded have did I that XXXX, I recall, think my an you think I we – value get recently. But security securitization wrong. fairly we ultimately paid off

one done have we past. in So the

help we that's it of finance as our a way well that's on business demonstrates the our it's growth value good to as in yes, think so books. book And our

reprice? and years in-force about share YRT. under talked what I'm was vintage in to you're your you repricing you action. And just products Can it assuming able

into level which the of blocks individual as I it's and down thing. go prepared errors Tracy, and Todd. detail far as that we're Hi of to think don't type

Okay. Thank you.

Investor to Day. your Looking forward

you. Thank

next go comes Tom Gallagher Our question ahead. with from Please Evercore.

Good morning.

Just want differences. some to these be clear on of accounting

And book in, I above or of had through $XX a experience periods. part – little quarter. claims. of flow And in was business loss XXX% would Trad guess, So experience the sounds so, the adverse see bit the to smoothed, that we the favorable in that will that benefit future gets tail in the like the it million of around of if that's continue on U.S. on large

quarter. through current the in came that So

pieces sure of percent a you of can of getting your make what And in recognition comment assumed to to book what book in your want position that's then loss correctly? part, a smoothed? versus those immediate just be if that's I I'm more is understanding is on also, the at percentage two profit

the than that Yes, premium mortality the favorable This we is the a in from contracts of get less on saw Todd. spread Yes, are net does ratio, that claims and is XXX% out. frequency that out. lower primarily I'll start experience, where

come the will in, back that So future. in

the higher greater claims premium clarify the have And cohorts then the ratio XXX%. primarily the to some did large quarter on is happened with we in than – in what again, quarter XXX% net above and in those were the

did but XXX%. in-force and actions the also as cohorts – on flow well we took in during through as actually than call were currently, remarks, the on that some those greater place that about had So rate

impact of that much through each the rate claims other. the So pretty currently. came And in-force offset the and actions

Todd, And much is ballpark, what coming just through be how XXX% premium you. book? your like the book level immediately, percentage of of above in would Got your that net

– again. exactly percentage would minority say book XX Probably with less the to I or part If I me points, don't figure is had of right in hard it, minority, the It's a I quantify overall to certainly in-force. this say it's XX but the have exact Todd in now. it. the quantify to

That’s… you. Got

And if can minute. add can for – just to a add that if I

Sure.

mortality large volatility. in claim the Yes, quarter adverse was the

have also we into down will claim smooth volatility and expect up cohorts, time. that over positive to And to those down go and to see when it we go have go you directly we so And earnings. quarters, if large but in

essentially you in those net down, similar that's it's premium if the cohorts XXX%, just is that go over directly where the old where accounting quarter experience in So helpful. ratio to the GAAP saw

we're that? is in experience Like accounting, that is favorable below was, Anna. the about then of greater That that the flow way $XX seeing quantifying on it know million? of I I the your And how XXX%, new any was through mean, based quarter the now for follow-up that? not than majority block is, what but my

wasn't $XX would say, range. It million the greater maybe it No, $XX measurable, was I in than million.

just you. one... then And That's Got helpful.

question Scott next The Alex go Goldman comes ahead. from Sachs. Please with

Hi. below down assume XXX% rate kind it My I had follow-up. Because immediate there's earnings XXX% just an take forward But first an going over one, you below be accounting have to get pricing also I there do case, actions kind probably of ratio, the that's premium on net actions? If that's from all that product run When potentially to improvement of enough NPR would in-force an still forward? the you'd I benefit. an those of XXX%. is looking

Alex, adjustments of is the occurring. cohort depends It Yes. how on Jonathan. subset where the is really the are this material

course the But a would could affect enough because below. this unlike I do move cohort, be say, if you large it period there's it's generally portion cohort So of XXX%. to wouldn't over you to time multiple would be a be adjustments that probably of in a to speaking, the as it whole changes compound under would bring enough

Got it.

forward, XXX% be going things think on? profitability the Okay. that? when stuff to have mean, improve in-force to still over there you what about And portion their NPR pipeline we are take then these of a management would I actions with care you is try of where I to of looking

blocks, these Tony. towards a always we're is This us. And question. risk is some the views new monitoring RGA Look, we've the and making key time. for and Thanks not something for obviously, management, blocks quite refining this judgments This and is part then been assessments. always these strategy is for doing our of

and situations. got will than a terms As Todd we've more across working dealing manner, these luxury of mentioned, with partnership the globe the probably of work levers in always we and others in

to in-force we and will implement given hard our quantify to our great the think But it’s rights So strategy I as our ability continues are in job and change. as the a the environment inning we’ve in done treaty. in where consistently well partnership balancing continually we this to

Thank you.

go Research. with Autonomous Erik The Bass next question comes ahead. from Please

you. I the investment to wanted Hi. Thank drivers. bit variable you about a income ask

versus peers this better I think being out than expected a little quarter. as stood you

you I real partnerships. it’s from said coming estate think

where driving So and it real forward? what’s is Is go from to up we And are potential a VII kind if a into pressure. of estate on detail start those? just going opening period valuations for that headwind more under

Erik, this for question. is that Leslie. Thanks

but referred when that estate, not just the driving it’s estate real So real was I VII. to variance,

say, other a more ours market, so it’s yes, be focus real equity on little there, we So a think private I which estate would was different middle did in more I diversification. components couple different little stand activity, and types strategy, also we funds have have some, a I of of a may we there and our from but bit. guess out

given level forward, rates that of So in going there cumulative case, a we’re and dampening at evaluations impact and tighten base could but rising I think we’re the solid so thinking our obviously liquidity some forth. be

think but driver. that’s not whole expectations, not all if it’s as if activity just is were it’s estate. real they it don’t above as possible, the I It – be that So would dependent on diversified and the was

to you’re the organic talked your and on in primary growth is Thank that outlook rates for maybe post-COVID you And demand on going Anna, about very and it. your growth then markets comments session But inorganic. counterpart? changes bullish side, in insurance you. more from or back the the being about just Got seeing the

question, that for Erik. Thanks

to question turn I over Tony. that to going think I’m

pandemic. on we both. Erik. in just Look, excited short are I’ve mentioned which very about and a penetration, insurance, throughout saw of awareness question, the has come prospects Thanks, we regularly, the the at the Day, is answer I obviously numbers that answer then world. longer-term Investor the for seen the strong least is, in And insurance the to importance would but wonderful business importance the reinsurance these the past But been your our say, around – it’s obviously clearly Asia, strategically reinsurance over Great. organic underpinning of of out post industry.

help expect help clients underlying market, So in as modern I can creative to fashions. would which reinsurance find our RGA grow more reinsurers, continue in ways use the like we

really shows times the the you partner leading in of fact is as, world. well strong if and that life anything, health RGA it’s the of reinsurers As need very a in one obviously challenge. And pandemic the

long towards also. quality to So a run and would medium reinsurers flight over I think we hope the expect see high the

So everything that right organic direction in towards growth. pointing strong is the

you. Thank

comes question Mark Please The from next Dwelle ahead. with RBC. go

Yes, good morning.

couple ones. Intensive or within Traditional? a within of quick the was of recorded the USPRT really Asset any transaction Just segment, it all Was

– it Mark, Financial was No, Intensive Solutions it’s area. Asset in the U.S. Todd.

the mentioned then asset was discussion there class it was investment And in that it. that Got $XX what related million to? was impairment, of

is Leslie. this Mark,

– by of primarily in was that two U.S. in March driven two exposures banks failed So the the the that to

strategy, highlights So our that just news. – the portfolio a modest, question because was our exposure there in

banks really million at of portfolio. the global on focus to important exposure systemically credit. the all in rest the is two-thirds of look types strategy U.S. bank of average about in you our is per that’s the $XX And portfolio other there, So if of the

So of week total note those so. very $XX million we And And last across that I’ll value news book manageable of there’s the exposure. been a amounts. three have or names in handful

So manageable. very

Okay. my for That’s Thank that. all you questions.

The next ahead. from Please Ward go Mike question with comes Citi.

Thanks, a market has guys. been Good on morning. Trying post-crisis, say. about wondering for I think to was decent the industry I’d pretty PRT. because just strategically it this

of wondering or because market thought been what while. good changed you might economics the just brought – of pretty I guys kind structure there’s So in, that would’ve for that demand a have the

I again. Anna result it’s it of – an change, our Hi, a it expansion in say a there wasn’t would was strategy.

we attractive third structure natural successful very and leg opportunity our been and the reinsurers, partners. extension close XX as for for of stool, proposition RGA and said, It have this longevity think years. our a We that I reinsurers a to – very was both just is as

the for then Anna. tangential CRE, Leslie. maybe office And on question Thanks,

over if companies are cities. in that you on skyscrapers where could are. Just strategy they discuss that highlighting the got fact insurance major that’s offices favoring suburban the some wondering We’ve

Thanks. So it seems kind of debated, just curious your perspective.

an have I you a expertise. have Sure. mean, question. Thanks and to for that strategy

of just suburban is And tend that home, value be advantage types office think if to work to of get I right guess wouldn’t see we wanted locations. you I that remote. businesses another you that in Because of that now, nearby. more can’t at they if work I guess an a lot

and on these tend focus good making sure things that just and densities of and there’s it’s manageable types an always a strategy So to had near population very be this other we’ve suburban sizes. usable opportunity there location, there office to

So it’s something tenants if turn does hard not to replace over.

different So really guess, now firms lot around But can there’s I a uncertainty the I certainly – have different right think from of the work home. strategies. is different

it’s think us putting a strategy I our good now. in position is So right

Leslie. makes Totally Thanks sense.

conference closing I Anna our concludes remarks. session. like question-and-answer to over for would any Manning, the This Chief Officer Executive turn to

a in interest continued power business. your demonstrating and in This our is strong RGA. substantial [Indiscernible] the quarter earnings

We are global leader. a

deliver well shareholders. highlighted remain capitalize opportunities this We’re our continue RGA the call. of confident on markets positioned substantial And our will in the through to course that long-term to value that we’ve I growth for

And that our you. So concludes quarter first thank call.

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

disconnect. now may You