Reinsurance Group of America Reports Fourth Quarter Results
- Earnings per diluted share:
$3.68 from net income,$3.43 from adjusted operating income* - Full-year earnings per diluted share:
$13.62 from net income,$13.35 from adjusted operating income* - ROE 8.4% and adjusted operating ROE* 10.5% for the full year
- Deployed capital of
$78 million into in-force and other transactions in the quarter,$465 million in the year
|
|
Quarterly Results |
|
Year-to-Date Results |
|||||||||||||
($ in millions, except per share data) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Net premiums |
|
$ |
2,986 |
|
|
$ |
2,805 |
|
|
$ |
11,297 |
|
|
$ |
10,544 |
|
|
Net income |
|
235 |
|
|
110 |
|
|
870 |
|
|
716 |
|
|||||
Net income per diluted share |
|
3.68 |
|
|
1.72 |
|
|
13.62 |
|
|
11.00 |
|
|||||
Adjusted operating income* |
|
219 |
|
|
222 |
|
|
853 |
|
|
789 |
|
|||||
Adjusted operating income per diluted share* |
|
3.43 |
|
|
3.46 |
|
|
13.35 |
|
|
12.12 |
|
|||||
Book value per share |
|
185.17 |
|
|
134.53 |
|
|
|
|
|
|||||||
Book value per share, excluding accumulated other comprehensive income (AOCI)* |
|
135.10 |
|
|
124.39 |
|
|
|
|
|
|||||||
Total assets |
|
76,731 |
|
|
64,535 |
|
|
|
|
|
|||||||
* See ‘Use of Non-GAAP Financial Measures’ below |
Full-year net income totaled
In the fourth quarter, consolidated net premiums totaled
The effective tax rate this quarter was 23.8% on pre-tax income. For the full year, the effective tax rate was 23.1% on pre-tax income. The effective tax rate was 23.1% on pre-tax adjusted operating income for the quarter. For the full year, the effective tax rate was 22.4% on pre-tax adjusted operating income, in line with the expected range of 21% to 24%.
“In the quarter, we produced strong overall results in EMEA, excellent results from Financial Solutions across all geographies, and the
“We had an active quarter as we deployed approximately
“The full year featured numerous highlights, including excellent Financial Solutions results across all geographies, strong overall results in EMEA and
“Looking forward, we remain optimistic about the future and our business prospects, as RGA is well positioned in its markets and we are executing on our proven strategy. We have a long track record of successful execution and strong financial results, and our intermediate-term financial outlook remains unchanged.”
SEGMENT RESULTS
In the fourth quarter of 2019, the Company changed the name of the Financial Reinsurance business within the
Traditional
The
Traditional net premiums were up 4% from last year’s fourth quarter to
Financial Solutions
The Asset-Intensive business reported pre-tax income of
The Capital Solutions business reported pre-tax income and pre-tax adjusted operating income of
Traditional
The Canada Traditional segment reported pre-tax income of
Reported net premiums totaled
Financial Solutions
The Canada Financial Solutions business segment, which consists of longevity and fee-based transactions, reported fourth quarter pre-tax income and pre-tax adjusted operating income of
Traditional
The EMEA Traditional segment reported pre-tax income and pre-tax adjusted operating income of
Reported net premiums increased 4% to
Financial Solutions
The EMEA Financial Solutions business segment, which consists of longevity, asset-intensive and fee-based transactions, reported fourth quarter pre-tax income of
Traditional
The Asia Pacific Traditional segment’s pre-tax income and pre-tax adjusted operating income totaled
Reported net premiums increased 7% to
Financial Solutions
The Asia Pacific Financial Solutions business segment, which consists of asset-intensive and fee-based transactions, reported fourth quarter pre-tax income of
Reported net premiums increased significantly to
Corporate and Other
The Corporate and Other segment’s pre-tax losses for the fourth quarter totaled
Company Guidance
On an annual basis, the Company provides financial guidance based upon the intermediate term rather than giving a range of annual adjusted operating earnings per share for an upcoming year. This better reflects the long-term nature of the business, as the Company accepts risks over very long periods of time, up to 30 years or longer in some cases. While more predictable over longer-term horizons, the Company's business is subject to inherent short-term volatility, primarily due to mortality and morbidity experience.
Over the intermediate term, the Company continues to target growth in adjusted operating earnings per share in the 5% to 8% range, and adjusted operating return on equity of 10% to 12%. It is presumed that there are no significant changes in the investment environment from current levels, and the Company will deploy
Dividend Declaration
The board of directors declared a regular quarterly dividend of
Earnings Conference Call
A conference call to discuss fourth quarter results will begin at
The Company has posted to its website a Quarterly Financial Supplement that includes financial information for all segments as well as information on its investment portfolio. Additionally, the Company posts periodic reports, press releases and other useful information on its Investor Relations website.
Use of Non-GAAP Financial Measures
RGA uses a non-GAAP financial measure called adjusted operating income as a basis for analyzing financial results. This measure also serves as a basis for establishing target levels and awards under RGA’s management incentive programs. Management believes that adjusted operating income, on a pre-tax and after-tax basis, better measures the ongoing profitability and underlying trends of the Company’s continuing operations, primarily because that measure excludes substantially all of the effect of net investment related gains and losses, as well as changes in the fair value of certain embedded derivatives and related deferred acquisition costs. These items can be volatile, primarily due to the credit market and interest rate environment, and are not necessarily indicative of the performance of the Company’s underlying businesses. Additionally, adjusted operating income excludes any net gain or loss from discontinued operations, the cumulative effect of any accounting changes, tax reform and other items that management believes are not indicative of the Company’s ongoing operations. The definition of adjusted operating income can vary by company and is not considered a substitute for GAAP net income.
Book value per share excluding the impact of AOCI is a non-GAAP financial measure that management believes is important in evaluating the balance sheet in order to ignore the effects of unrealized amounts primarily associated with mark-to-market adjustments on investments and foreign currency translation.
Adjusted operating income per diluted share is a non-GAAP financial measure calculated as adjusted operating income divided by weighted average diluted shares outstanding. Adjusted operating return on equity is a non-GAAP financial measure calculated as adjusted operating income divided by average stockholders’ equity excluding AOCI. Similar to adjusted operating income, management believes these non-GAAP financial measures better reflect the ongoing profitability and underlying trends of the Company’s continuing operations, they also serve as a basis for establishing target levels and awards under RGA’s management incentive programs.
Reconciliations from GAAP net income, book value per share, net income per diluted share and average stockholders’ equity are provided in the following tables. Additional financial information can be found in the Quarterly Financial Supplement on RGA’s Investor Relations website at www.rgare.com in the “Financial Information” section.
About RGA
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, ratios, financial performance and growth potential of the Company. Forward-looking statements often contain words and phrases such as “intend,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “should,” “believe” and other similar expressions. Forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements are not a guarantee of future performance and are subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance, and achievements could differ materially from those set forth in, contemplated by or underlying the forward-looking statements.
Numerous important factors could cause actual results and events to differ materially from those expressed or implied by forward-looking statements including, without limitation: (1) adverse changes in mortality, morbidity, lapsation or claims experience, (2) inadequate risk analysis and underwriting, (3) adverse capital and credit market conditions and their impact on the Company’s liquidity, access to capital and cost of capital, (4) changes in the Company’s financial strength and credit ratings and the effect of such changes on the Company’s future results of operations and financial condition, (5) the availability and cost of collateral necessary for regulatory reserves and capital, (6) requirements to post collateral or make payments due to declines in market value of assets subject to the Company’s collateral arrangements, (7) action by regulators who have authority over the Company’s reinsurance operations in the jurisdictions in which it operates, (8) the effect of the Company parent’s status as an insurance holding company and regulatory restrictions on its ability to pay principal of and interest on its debt obligations, (9) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in the Company’s current and planned markets, (10) the impairment of other financial institutions and its effect on the Company’s business, (11) fluctuations in
Forward-looking statements should be evaluated together with the many risks and uncertainties that affect the Company’s business, including those mentioned in this document and described in the periodic reports the Company files with the
|
|||||||||||||||
|
|||||||||||||||
(Unaudited) |
Three Months Ended |
||||||||||||||
|
2019 |
|
2018 |
||||||||||||
|
|
|
Diluted Earnings Per Share |
|
|
|
Diluted Earnings Per Share |
||||||||
Net income |
$ |
235 |
|
|
$ |
3.68 |
|
|
$ |
110 |
|
|
$ |
1.72 |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
25 |
|
|
0.40 |
|
|
25 |
|
|
0.38 |
|
||||
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
(37 |
) |
|
(0.58 |
) |
|
87 |
|
|
1.36 |
|
||||
Included in interest credited |
(8 |
) |
|
(0.13 |
) |
|
10 |
|
|
0.15 |
|
||||
DAC offset, net |
(3 |
) |
|
(0.05 |
) |
|
(10 |
) |
|
(0.15 |
) |
||||
Investment (income) loss on unit-linked variable annuities |
— |
|
|
— |
|
|
8 |
|
|
0.13 |
|
||||
Interest credited on unit-linked variable annuities |
— |
|
|
— |
|
|
(8 |
) |
|
(0.13 |
) |
||||
Interest expense on uncertain tax positions |
3 |
|
|
0.05 |
|
|
— |
|
|
— |
|
||||
Non-investment derivatives |
2 |
|
|
0.03 |
|
|
— |
|
|
— |
|
||||
Uncertain tax positions and other tax related items |
2 |
|
|
0.03 |
|
|
— |
|
|
— |
|
||||
Adjusted operating income |
$ |
219 |
|
|
$ |
3.43 |
|
|
$ |
222 |
|
|
$ |
3.46 |
|
(Unaudited) |
Twelve Months Ended |
||||||||||||||
|
2019 |
|
2018 |
||||||||||||
|
|
|
Diluted Earnings Per Share |
|
|
|
Diluted Earnings Per Share |
||||||||
Net income |
$ |
870 |
|
|
$ |
13.62 |
|
|
$ |
716 |
|
|
$ |
11.00 |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
(43 |
) |
|
(0.68 |
) |
|
121 |
|
|
1.85 |
|
||||
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
4 |
|
|
0.06 |
|
|
(2 |
) |
|
(0.03 |
) |
||||
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
(13 |
) |
|
(0.20 |
) |
|
22 |
|
|
0.34 |
|
||||
Included in interest credited |
36 |
|
|
0.56 |
|
|
(14 |
) |
|
(0.21 |
) |
||||
DAC offset, net |
(25 |
) |
|
(0.39 |
) |
|
8 |
|
|
0.13 |
|
||||
Investment (income) loss on unit-linked variable annuities |
(21 |
) |
|
(0.33 |
) |
|
5 |
|
|
0.08 |
|
||||
Interest credited on unit-linked variable annuities |
21 |
|
|
0.33 |
|
|
(5 |
) |
|
(0.08 |
) |
||||
Interest expense on uncertain tax positions |
14 |
|
|
0.22 |
|
|
— |
|
|
— |
|
||||
Non-investment derivatives |
2 |
|
|
0.03 |
|
|
— |
|
|
— |
|
||||
Uncertain tax positions and other tax related items |
8 |
|
|
0.13 |
|
|
(62 |
) |
|
(0.96 |
) |
||||
Adjusted operating income |
$ |
853 |
|
|
$ |
13.35 |
|
|
$ |
789 |
|
|
$ |
12.12 |
|
Reconciliation of Consolidated Effective Income Tax Rates (Dollars in thousands) |
|||||||||||
(Unaudited) |
Three Months Ended |
||||||||||
|
Pre-tax Income |
|
Income Taxes |
|
Effective Tax Rate |
||||||
GAAP income |
$ |
308,131 |
|
|
$ |
73,263 |
|
|
23.8 |
% |
|
Reconciliation to adjusted operating income: |
|
|
|
|
|
||||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
29,710 |
|
|
5,660 |
|
|
|
||||
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
63 |
|
|
13 |
|
|
|
||||
Embedded derivatives: |
|
|
|
|
|
||||||
Included in investment related gains/losses, net |
(46,606 |
) |
|
(9,787 |
) |
|
|
||||
Included in interest credited |
(9,553 |
) |
|
(2,006 |
) |
|
|
||||
DAC offset, net |
(3,563 |
) |
|
(749 |
) |
|
|
||||
Investment (income) loss on unit-linked variable annuities |
291 |
|
|
61 |
|
|
|
||||
Interest credited on unit-linked variable annuities |
(291 |
) |
|
(61 |
) |
|
|
||||
Interest expense on uncertain tax positions |
3,916 |
|
|
822 |
|
|
|
||||
Non-investment derivatives |
2,241 |
|
|
471 |
|
|
|
||||
Uncertain tax positions and other tax related items |
— |
|
|
(1,932 |
) |
|
|
||||
Adjusted operating income |
$ |
284,339 |
|
|
$ |
65,755 |
|
|
23.1 |
% |
Reconciliation of Consolidated Income before Income Taxes to Pre-tax Adjusted Operating Income |
|||||||||||||||
(Unaudited) |
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Income before income taxes |
$ |
308 |
|
|
$ |
138 |
|
|
$ |
1,132 |
|
|
$ |
846 |
|
Reconciliation to pre-tax adjusted operating income: |
|
|
|
|
|
|
|
||||||||
Capital (gains) losses, derivatives and other, included in investment related gains/losses, net |
30 |
|
|
32 |
|
|
(56 |
) |
|
153 |
|
||||
Capital (gains) losses on funds withheld, included in investment income, net of related expenses |
— |
|
|
— |
|
|
5 |
|
|
(2 |
) |
||||
Embedded derivatives: |
|
|
|
|
|
|
|
||||||||
Included in investment related gains/losses, net |
(46 |
) |
|
110 |
|
|
(16 |
) |
|
28 |
|
||||
Included in interest credited |
(10 |
) |
|
13 |
|
|
46 |
|
|
(17 |
) |
||||
DAC offset, net |
(4 |
) |
|
(13 |
) |
|
(32 |
) |
|
10 |
|
||||
Investment (income) loss on unit-linked variable annuities |
— |
|
|
11 |
|
|
(26 |
) |
|
7 |
|
||||
Interest credited on unit-linked variable annuities |
— |
|
(11 |
) |
|
26 |
|
|
(7 |
) |
|||||
Interest expense on uncertain tax positions |
4 |
|
|
— |
|
|
18 |
|
|
— |
|
||||
Non-investment derivatives |
2 |
|
|
— |
|
|
2 |
|
|
— |
|
||||
Pre-tax adjusted operating income |
$ |
284 |
|
|
$ |
280 |
|
|
$ |
1,099 |
|
|
$ |
1,018 |
|
|
|||||||||||||||
(Unaudited) |
Three Months Ended |
||||||||||||||
|
Pre-tax income (loss) |
|
Capital (gains) losses, derivatives and other, net |
|
Change in value of embedded derivatives, net |
|
Pre-tax adjusted operating income (loss) |
||||||||
|
|
|
|
|
|
|
|
||||||||
Traditional |
$ |
85 |
|
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
83 |
|
Financial Solutions: |
|
|
|
|
|
|
|
||||||||
Asset-Intensive |
78 |
|
|
60 |
|
(1) |
(73 |
) |
(2) |
65 |
|
||||
Capital Solutions |
26 |
|
|
— |
|
|
— |
|
|
26 |
|
||||
Total |
189 |
|
|
60 |
|
|
(75 |
) |
|
174 |
|
||||
Canada Traditional |
28 |
|
|
(1 |
) |
|
— |
|
|
27 |
|
||||
Canada Financial Solutions |
7 |
|
|
— |
|
|
— |
|
|
7 |
|
||||
Total |
35 |
|
|
(1 |
) |
|
— |
|
|
34 |
|
||||
EMEA Traditional |
23 |
|
|
— |
|
|
— |
|
|
23 |
|
||||
EMEA Financial Solutions |
72 |
|
|
1 |
|
|
— |
|
|
73 |
|
||||
Total EMEA |
95 |
|
|
1 |
|
|
— |
|
|
96 |
|
||||
Asia Pacific Traditional |
12 |
|
|
— |
|
|
— |
|
|
12 |
|
||||
Asia Pacific Financial Solutions |
13 |
|
|
(5 |
) |
|
— |
|
|
8 |
|
||||
Total |
25 |
|
|
(5 |
) |
|
— |
|
|
20 |
|
||||
Corporate and Other |
(36 |
) |
|
(4 |
) |
|
— |
|
|
(40 |
) |
||||
Consolidated |
$ |
308 |
|
|
$ |
51 |
|
|
$ |
(75 |
) |
|
$ |
284 |
|
(1) Asset-Intensive is net of |
|||||||||||||||
(2) Asset-Intensive is net of |
|||||||||||||||
(Unaudited) |
Three Months Ended |
||||||||||||||
|
Pre-tax income (loss) |
|
Capital (gains) losses, derivatives and other, net |
|
Change in value of embedded derivatives, net |
|
Pre-tax adjusted operating income (loss) |
||||||||
|
|
|
|
|
|
|
|
||||||||
Traditional |
$ |
95 |
|
|
$ |
— |
|
|
$ |
(3 |
) |
|
$ |
92 |
|
Financial Solutions: |
|
|
|
|
|
|
|
||||||||
Asset-Intensive |
(6 |
) |
|
7 |
|
(1) |
52 |
|
(2) |
53 |
|
||||
Capital Solutions |
20 |
|
|
— |
|
|
— |
|
|
20 |
|
||||
Total |
109 |
|
|
7 |
|
|
49 |
|
|
165 |
|
||||
Canada Traditional |
45 |
|
|
5 |
|
|
— |
|
|
50 |
|
||||
Canada Financial Solutions |
2 |
|
|
— |
|
|
— |
|
|
2 |
|
||||
Total |
47 |
|
|
5 |
|
|
— |
|
|
52 |
|
||||
EMEA Traditional |
15 |
|
|
— |
|
|
— |
|
|
15 |
|
||||
EMEA Financial Solutions |
36 |
|
|
9 |
|
|
— |
|
|
45 |
|
||||
Total EMEA |
51 |
|
|
9 |
|
|
— |
|
|
60 |
|
||||
Asia Pacific Traditional |
34 |
|
|
— |
|
|
— |
|
|
34 |
|
||||
Asia Pacific Financial Solutions |
(14 |
) |
|
16 |
|
|
— |
|
|
2 |
|
||||
Total |
20 |
|
|
16 |
|
|
— |
|
|
36 |
|
||||
Corporate and Other |
(89 |
) |
|
56 |
|
|
— |
|
|
(33 |
) |
||||
Consolidated |
$ |
138 |
|
|
$ |
93 |
|
|
$ |
49 |
|
|
$ |
280 |
|
(1) Asset-Intensive is net of |
|||||||||||||||
(2) Asset-Intensive is net of |
|
|||||||||||||||
(Unaudited) |
Twelve Months Ended |
||||||||||||||
|
Pre-tax income (loss) |
|
Capital (gains) losses, derivatives and other, net |
|
Change in value of embedded derivatives, net |
|
Pre-tax adjusted operating income (loss) |
||||||||
|
|
|
|
|
|
|
|
||||||||
Traditional |
$ |
265 |
|
|
$ |
— |
|
|
$ |
18 |
|
|
$ |
283 |
|
Financial Solutions: |
|
|
|
|
|
|
|
||||||||
Asset-Intensive |
315 |
|
|
(81 |
) |
(1) |
25 |
|
(2) |
259 |
|
||||
Capital Solutions |
83 |
|
|
— |
|
|
— |
|
|
83 |
|
||||
Total |
663 |
|
|
(81 |
) |
|
43 |
|
|
625 |
|
||||
Canada Traditional |
168 |
|
|
(7 |
) |
|
— |
|
|
161 |
|
||||
Canada Financial Solutions |
15 |
|
|
— |
|
|
— |
|
|
15 |
|
||||
Total |
183 |
|
|
(7 |
) |
|
— |
|
|
176 |
|
||||
EMEA Traditional |
80 |
|
|
— |
|
|
— |
|
|
80 |
|
||||
EMEA Financial Solutions |
223 |
|
|
(7 |
) |
|
— |
|
|
216 |
|
||||
Total EMEA |
303 |
|
|
(7 |
) |
|
— |
|
|
296 |
|
||||
Asia Pacific Traditional |
105 |
|
|
— |
|
|
— |
|
|
105 |
|
||||
Asia Pacific Financial Solutions |
23 |
|
|
(3 |
) |
|
— |
|
|
20 |
|
||||
Total |
128 |
|
|
(3 |
) |
|
— |
|
|
125 |
|
||||
Corporate and Other |
(145 |
) |
|
22 |
|
|
— |
|
|
(123 |
) |
||||
Consolidated |
$ |
1,132 |
|
|
$ |
(76 |
) |
|
$ |
43 |
|
|
$ |
1,099 |
|
(1) Asset-Intensive is net of |
|||||||||||||||
(2) Asset-Intensive is net of |
|||||||||||||||
(Unaudited) |
Twelve Months Ended |
||||||||||||||
|
Pre-tax income (loss) |
|
Capital (gains) losses, derivatives and other, net |
|
Change in value of embedded derivatives, net |
|
Pre-tax adjusted operating income (loss) |
||||||||
|
|
|
|
|
|
|
|
||||||||
Traditional |
$ |
286 |
|
|
$ |
— |
|
|
$ |
(8 |
) |
|
$ |
278 |
|
Financial Solutions: |
|
|
|
|
|
|
|
||||||||
Asset-Intensive |
168 |
|
|
72 |
|
(1) |
(24 |
) |
(2) |
216 |
|
||||
Capital Solutions |
83 |
|
|
— |
|
|
— |
|
|
83 |
|
||||
Total |
537 |
|
|
72 |
|
|
(32 |
) |
|
577 |
|
||||
Canada Traditional |
112 |
|
|
6 |
|
|
— |
|
|
118 |
|
||||
Canada Financial Solutions |
10 |
|
|
— |
|
|
— |
|
|
10 |
|
||||
Total |
122 |
|
|
6 |
|
|
— |
|
|
128 |
|
||||
EMEA Traditional |
55 |
|
|
— |
|
|
— |
|
|
55 |
|
||||
EMEA Financial Solutions |
197 |
|
|
— |
|
|
— |
|
|
197 |
|
||||
Total EMEA |
252 |
|
|
— |
|
|
— |
|
|
252 |
|
||||
Asia Pacific Traditional |
178 |
|
|
— |
|
|
— |
|
|
178 |
|
||||
Asia Pacific Financial Solutions |
(6 |
) |
|
13 |
|
|
— |
|
|
7 |
|
||||
Total |
172 |
|
|
13 |
|
|
— |
|
|
185 |
|
||||
Corporate and Other |
(237 |
) |
|
113 |
|
|
— |
|
|
(124 |
) |
||||
Consolidated |
$ |
846 |
|
|
$ |
204 |
|
|
$ |
(32 |
) |
|
$ |
1,018 |
|
(1) Asset-Intensive is net of |
|||||||||||||||
(2) Asset-Intensive is net of |
|
|||||||||||||||
(Unaudited) |
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Earnings per share from net income: |
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
3.75 |
|
|
$ |
1.75 |
|
|
$ |
13.88 |
|
|
$ |
11.25 |
|
Diluted earnings per share |
$ |
3.68 |
|
|
$ |
1.72 |
|
|
$ |
13.62 |
|
|
$ |
11.00 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share from adjusted operating income |
$ |
3.43 |
|
|
$ |
3.46 |
|
|
$ |
13.35 |
|
|
$ |
12.12 |
|
Weighted average number of common and common equivalent shares outstanding |
63,774 |
|
|
64,156 |
|
|
63,882 |
|
|
65,094 |
|
(Unaudited) |
At |
||||||
|
2019 |
|
2018 |
||||
|
16,482 |
|
|
16,324 |
|
||
Common shares outstanding |
62,656 |
|
|
62,814 |
|
||
Book value per share outstanding |
$ |
185.17 |
|
|
$ |
134.53 |
|
Book value per share outstanding, before impact of AOCI |
$ |
135.10 |
|
|
$ |
124.39 |
|
Reconciliation of Book Value Per Share to Book Value Per Share Excluding AOCI |
|||||||
(Unaudited) |
At |
||||||
|
2019 |
|
2018 |
||||
Book value per share outstanding |
$ |
185.17 |
|
|
$ |
134.53 |
|
Less effect of AOCI: |
|
|
|
||||
Accumulated currency translation adjustments |
(1.46 |
) |
|
(2.69 |
) |
||
Unrealized appreciation of securities |
52.65 |
|
|
13.63 |
|
||
Pension and postretirement benefits |
(1.12 |
) |
|
(0.80 |
) |
||
Book value per share outstanding, before impact of AOCI |
$ |
135.10 |
|
|
$ |
124.39 |
|
Reconciliation of Stockholders' Average Equity to Stockholders' Average Equity Excluding AOCI |
|||
(Unaudited) |
|
||
Trailing Twelve Months Ended |
Average Equity |
||
Stockholders' average equity |
$ |
10,391 |
|
Less effect of AOCI: |
|
||
Accumulated currency translation adjustments |
(137 |
) |
|
Unrealized appreciation of securities |
2,481 |
|
|
Pension and postretirement benefits |
(56 |
) |
|
Stockholders' average equity, excluding AOCI |
$ |
8,103 |
|
Reconciliation of Trailing Twelve Months of Consolidated Net Income to Adjusted Operating Income and Related Return on Equity |
||||||
(Unaudited) |
|
|
Return on Equity |
|||
Trailing Twelve Months Ended |
Income |
|
||||
Net Income |
$ |
870 |
|
|
8.4 |
% |
Reconciliation to adjusted operating income: |
|
|
|
|||
Capital (gains) losses, derivatives and other, net |
(23 |
) |
|
|
||
Change in fair value of embedded derivatives |
23 |
|
|
|
||
Deferred acquisition cost offset, net |
(25 |
) |
|
|
||
Statutory tax rate changes and subsequent effects |
8 |
|
|
|
||
Adjusted operating income |
$ |
853 |
|
|
10.5 |
% |
|
|||||||||||||||
(Unaudited) |
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Net premiums |
$ |
2,986 |
|
|
$ |
2,805 |
|
|
$ |
11,297 |
|
|
$ |
10,544 |
|
Investment income, net of related expenses |
677 |
|
|
522 |
|
|
2,520 |
|
|
2,139 |
|
||||
Investment related gains (losses), net: |
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairments on fixed maturity securities |
(13 |
) |
|
(14 |
) |
|
(31 |
) |
|
(28 |
) |
||||
Other investment related gains (losses), net |
35 |
|
|
(125 |
) |
|
122 |
|
|
(142 |
) |
||||
Total investment related gains (losses), net |
22 |
|
|
(139 |
) |
|
91 |
|
|
(170 |
) |
||||
Other revenue |
100 |
|
|
91 |
|
|
392 |
|
|
363 |
|
||||
Total revenues |
3,785 |
|
|
3,279 |
|
|
14,300 |
|
|
12,876 |
|
||||
Benefits and expenses: |
|
|
|
|
|
|
|
||||||||
Claims and other policy benefits |
2,703 |
|
|
2,468 |
|
|
10,197 |
|
|
9,319 |
|
||||
Interest credited |
180 |
|
|
92 |
|
|
697 |
|
|
425 |
|
||||
Policy acquisition costs and other insurance expenses |
310 |
|
|
335 |
|
|
1,204 |
|
|
1,323 |
|
||||
Other operating expenses |
234 |
|
|
200 |
|
|
868 |
|
|
786 |
|
||||
Interest expense |
44 |
|
|
39 |
|
|
173 |
|
|
147 |
|
||||
Collateral finance and securitization expense |
6 |
|
|
7 |
|
|
29 |
|
|
30 |
|
||||
Total benefits and expenses |
3,477 |
|
|
3,141 |
|
|
13,168 |
|
|
12,030 |
|
||||
Income before income taxes |
308 |
|
|
138 |
|
|
1,132 |
|
|
846 |
|
||||
Provision for income taxes |
73 |
|
|
28 |
|
|
262 |
|
|
130 |
|
||||
Net income |
$ |
235 |
|
|
$ |
110 |
|
|
$ |
870 |
|
|
$ |
716 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200128005811/en/
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Source:
W. R. Berkley Corporation Reports Fourth Quarter and Full Year Results
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