Reinsurance Group of America Inc. (NYSE:RGA) Q3 2016 Earnings Conference Call - Final Transcript

Oct 27, 2016 • 11:00 am ET

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Reinsurance Group of America Inc. (NYSE:RGA) Q3 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Reinsurance Group of America Third Quarter 2016 Results Conference Call. Today's call is being recorded.

At this time, I would 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. Please go ahead, Mr. Larson.

Executive
Todd Larson

Thank you. Good morning, everyone, and welcome to RGA's third quarter 2016 conference call. Joining me in St. Louis this morning is Greig Woodring, RGA's Chief Executive Officer, and Anna Manning, our President. Greig, Anna, and I will discuss the third 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 take certain -- 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 pretax 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 the quarterly financial supplement for more information on this measure and reconciliations of operating income 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 will turn it over to Greig for his comments.

Executive
Greig Woodring

Thanks, Todd. As indicated in the earnings release last night, we reported operating EPS of $2.46, compared to $1.90 a year ago, a strong and fairly straightforward result. We continue to benefit from diversified sources of earnings, enabling us to achieve positive overall results even as various lines and various geographies exhibit normal volatility from quarter to quarter.

Our premium growth moderated from Q2's rate, as expected, but we still achieved a rate of 8% on a reported basis, 9% on a constant-currency basis. Further, we achieved these results in a challenging overall environment, highlighting the resilience of our operating model and ability to capitalize on opportunities and strong market positions.

This quarter's results included an $0.08 per share benefit from a tax provision adjustment related to the effective settlement of tax provisions, while the negative effect of foreign currency translation totaled $0.03 in the quarter.

Highlights of the quarter include particularly strong results in our traditional business in Asia, nontraditional in EMEA, and U.S. asset intensive. These areas more than offset seasonal weakness in Australia and somewhat elevated individual mortality claims in the