Reinsurance Group of America, Incorporated

Good day and welcome to the Reinsurance Group of America third quarter 2020 results conference call. Today's call is being recorded. At this time, I would like to introduce Mr. Todd Larson, Senior Executive Vice President and Chief Financial Officer, and Ms. Anna Manning, President and Chief Executive Officer. Please go ahead, Mr. Larson.

Thank you. Good morning and welcome to RGA's third quarter conference. 2020 conference call. With me this morning on the call is Anna Manning, RGA's President and Chief Executive Officer, Elaine Meany, Chief Operating Officer, Leslie Barbee, Chief Investment Officer, Jonathan Porter, Global Chief Risk Officer, and Jeff Hopson, Head of Investor Relations. We will discuss the third quarter results after a quick reminder about forward-looking information and non-GAAP financial measures. Following our prepared remarks, we'll be happy to take your questions. Some of our comments or answers to your questions may contain forward-looking statements. Actual results could differ materially from expected results. Please refer to the earnings release we issued yesterday to a list of important factors that could cause actual results to differ materially from expected results. Additionally, during the course of this call, information we provide may include non-GAAP financial measures. Please see our earnings release, earnings presentation, quarterly financial supplement, and website for discussion of these terms and reconciliation to GAAP measures. And now, I'll turn the call over to Anna for her comments.

Thank you, Todd. Good morning, everyone, and thank you for joining our call today. I hope you are all remaining safe and staying healthy. Let me begin by saying that I am extremely proud of the perseverance and commitment that our employees have demonstrated throughout this crisis. Their well-being remains our top priority. Because of their efforts, our global business operations have continued to run smoothly, and we have continued to provide the superior level of support and thought leadership that our clients have come to expect and rely upon. An important part of our purpose is to help support the needs of families throughout the world who are suffering due to an unexpected illness or death of a loved one. Everyone at RGA is extremely proud of the role we play in helping families when they need it most. Turning to the third quarter results, last night we reported adjusted operating EPS of $3.51, which is a very strong performance, especially in the context of this global pandemic. This quarter further demonstrated the resilience and strategic value of our global platform. We have an earnings engine that is well diversified by risk and geography that continues to deliver substantial value as we saw this quarter with favorable performance for many of our key segments and businesses, including EMEA, Asia, U.S. Asset Intensive, and a modest profit in Australia. Included in our consolidated results for the quarter were total global COVID-19-related claim costs estimated at $140 million, which is at the low end of our model's expected range and approximately 30 million of favorable longevity experience. Of the 140 million claim costs, 100 million were in the U.S. individual mortality business, with the remaining 40 million spread amongst our other global businesses. Mortality performance in our U.S. individual business, excluding COVID-19, was better than our expectations this quarter due to very favorable large claims experience. And outside the U.S., overall performance of our traditional business was better than expected, even after including the impact of the pandemic. we will provide additional information on the pandemic later in the call. We completed several capital-motivated transactions in the quarter, which, while not requiring a significant amount of capital, will contribute to our future fee-based earnings. The transaction pipelines are active overall and include opportunities in many of our regions, including North America, Europe, and Asia. we remain active and at work on transaction opportunities. Our approach to capital deployment during this crisis remains prudent, disciplined, and balanced. In summary, we are very pleased with the overall performance this quarter and with the continuing strength and resilience of our global business. As we look forward, COVID-19 remains both a global health and global economic crisis. And there may be more challenges to come as we move through the winter months. But there are also reasons for some optimism regarding improving treatments and eventually vaccines. At RGA, we remain focused on protecting our employees, serving our clients, and supporting the industry and society. A strong balance sheet and earnings engine give us confidence that we can manage through the next phase of the pandemic and Emerge well-positioned to take advantage of future opportunities. We are intent on doing what is necessary to continue to build on our strong track record of financial performance and in creating substantial long-term shareholder value. Thank you for your interest in RGA, and I hope you all continue to remain safe and well. Let me now turn it over to Todd to go over the detailed financial results.