Reinsurance Group of America (RGA) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We make assumptions when pricing our products relating to mortality, morbidity, lapsation, investment returns and expenses, and significant deviations in experience could negatively affect our financial condition and results of operations
2. 02Our business, results of operations and financial condition have been, and may continue to be, adversely affected by epidemics and pandemics, such as COVID-19, and responses thereto
3. 03Our reinsurance subsidiaries are highly regulated, and changes in these regulations could negatively affect our business
4. 04A downgrade in our ratings or in the ratings of our reinsurance subsidiaries could adversely affect our ability to compete
5. 05The availability and cost of collateral, including letters of credit, asset trusts and other credit facilities, as well as regulatory changes relating to the use of captive insurance companies, could adversely affect our business, financial condition or results of operations
6. 06Changes in equity markets, interest rates and volatility affect the profitability of variable annuities with guaranteed living benefits that we reinsure, which may have a material adverse effect on our business and profitability
7. 07RGA is an insurance holding company, and our ability to pay principal, interest and dividends on securities is limited
8. 08We are exposed to foreign currency risk
9. 09Our international operations involve inherent risks
10. 10We rely significantly on third parties for various services, and we may be held responsible for obligations that arise from the acts or omissions of third parties
11. 11Catastrophic events could adversely affect our business, financial condition and operations
12. 12We operate in a highly competitive and dynamic industry and competition, tax law changes, and other factors could adversely affect our business
13. 13Weak conditions in global capital markets and the economy, as well as inflation, may materially adversely affect our business and results of operations
14. 14markets and the economy generally and dispelling it may require governments to pursue a restrictive fiscal and monetary policy, which could constrain overall economic activity, inhibit revenue growth and reduce the number of attractive investment opportunities
15. 15We could be subject to additional income tax liabilities
16. 16Changes in accounting standards may adversely affect our reported results of operations and financial condition
17. 17Acquisitions and significant transactions involve varying degrees of risk that could affect our profitability
18. 18Our risk management policies and procedures could leave us exposed to unidentified or unanticipated risk, which could negatively affect our business, financial condition or results of operations
19. 19Restrictions on the use of personal data and “big data” techniques could adversely affect our reputation and have a material adverse effect on our business, financial condition and results of operations
20. 20Managing key employee attraction, retention and succession is critical to our success
21. 21Litigation and regulatory investigations and actions may result in financial losses or harm our reputation

Risks Related to Our Investments

1. 22Adverse capital and credit market conditions and access to credit facilities may significantly affect our ability to meet liquidity needs, access to capital and cost of capital
2. 23Difficult conditions in the global capital markets and the economy generally may materially adversely affect our business, financial condition and results of operations
3. 24If our investment strategy is unsuccessful, we could suffer losses
4. 25Interest rate fluctuations could negatively affect the income we derive from the difference between the interest rates we earn on our investments and interest we pay under our reinsurance contracts
5. 26The liquidity and value of some of our investments may become significantly diminished
6. 27We could be forced to sell investments at a loss to cover policyholder withdrawals, recaptures of reinsurance treaties or other events
7. 28Recapture rights permit these customers to reassume all or a portion of the risk formerly ceded to us after an agreed-upon time, usually ten years, subject to various conditions
8. 29Defaults, downgrades or other events impairing the value of our fixed maturity securities portfolio may reduce our earnings
9. 30The defaults or deteriorating credit of other financial institutions could adversely affect us
10. 31Defaults on our mortgage loans or the mortgage loans underlying our investments in mortgage-backed securities and volatility in performance of our investments in real estate related assets may adversely affect our profitability
11. 32Our valuation of fixed maturity and equity securities and derivatives include methodologies, estimations and assumptions that are subject to differing interpretations and could result in changes to investment valuations that may have a material adverse effect on our financial condition or results of operations
12. 33The determination of the amount of allowances and impairments taken on our investments is highly subjective and could materially affect our financial condition or results of operations
13. 34Our investments are reflected within the consolidated financial statements utilizing different accounting bases and accordingly we may not have recognized differences, which may be significant, between cost and fair value in our consolidated financial statements

Risks Related to Ownership of Our Common Stock

1. 35We may not pay dividends on our common stock
2. 36Certain provisions in our articles of incorporation and bylaws, in Missouri law and in applicable insurance laws, may delay or prevent a change in control, which could adversely affect the price of our common stock
3. 37Issuing additional shares may dilute the value or affect the price of our common stock
4. 38The occurrence of various events may adversely affect the ability of RGA and its subsidiaries to fully utilize any net operating losses (“NOLs”) and other tax attributes