Reinsurance Group of America Inc. (NYSE:RGA) Q2 2016 Earnings Conference Call - Final Transcript
Jul 29, 2016 • 11:00 am ET
Good day, everyone and welcome to the Reinsurance Group of America Second Quarter 2016 Results Conference Call. [Operator Instructions]
At this time, I'd like to introduce Mr. Greig Woodring, Chief Executive Officer; Mr. Todd Larson, Senior Executive Vice President and Chief Financial Officer and Ms. Anna Manning, President. Mr. Larson, please go ahead, sir.
Thank you. Good morning everyone and welcome to RGA's second quarter 2016 conference call. Joining me in St. Louis this morning is Greig Woodring, RGA's Chief Executive Officer, as well as Anna Manning, our President.
Greig, Ann and I will discuss the second quarter results after a quick reminder about forward-looking information and non-GAAP financial measures. Following our prepared remarks, we will be happy to take your questions. To help you better understand RGA's business we will make certain statements and discuss certain subjects during this call that will contain forward-looking information, including among other things, investment performance, statements relating to projections of revenue or earnings, and future financial performance and growth potential of RGA and its subsidiaries.
Keep in mind that actual results could differ materially from expected results. A list of important factors that could cause actual results to differ materially from expected results is included in the earnings release we issued yesterday.
In addition, during the course of this call, we will make comments on pre-tax and after-tax operating income, which is considered a non-GAAP financial measure under SEC regulations. We believe this measure better reflects the ongoing profitability and underlying trends of our business. Please refer to the tables in the Press Release and Quarterly Financial Supplement for more information on this measure and reconciliations of operating earnings to net income for our various business segments. These documents and additional information may be found on our Investor Relations website at rgare.com.
With that, I'll turn the call over to Greig for his comments.
Thanks, Todd. As indicated in the earnings release last night, we reported operating EPS of $2.80 compared to $1.94 a year ago, this result showed strength across most segments and geographies with strong top line growth and favorable investment results. Further we achieved these results in spite of a challenging overall environment, highlighting the resilience of our operating model, and our ability to capitalize on opportunities and a strong market position.
This quarter's results included $0.12 per share benefit for a tax related adjustment related to the expected settlement of several tax positions, while the negative effect of foreign currency translation was equal to $0.04 in the quarter. Highlights of the quarter include particularly strong results in our US and our Canadian traditional segments, the US non-traditional segment and the Asia Pacific traditional segment.
Our variable investment income was higher than an average run rate, we have several gains from longer-term alternative investments. Reported premium growth was 10%, 12% on a constant currency basis due to both solid organic growth as well as the additive effect of more recent in-force transactions. In the US traditional business the strong results reflected