Reinsurance Group of America Releases Financial Results Report | Insurance business America
The company reports a strong fourth quarter
reinsurance
By Jonalyn Cueto
Reinsurance Group of America, Inc. (RGA) has released its fourth quarter and full year 2023 financial results.
The company reported fourth-quarter net income available to RGA shareholders of $158 million, or $2.37 per diluted share, down from the prior-year quarter, which was $291 million, or $4 .30 US dollars per diluted share.
Adjusted operating income for the fourth quarter was $316 million, or $4.73 per diluted share, slightly exceeding the $312 million, or $4.60 per diluted share, reported a year ago. In particular, net currency fluctuations negatively impacted net income available to RGA shareholders by $0.01 per diluted share. As a result, there is a positive impact of $0.04 per diluted share on adjusted operating income compared to the prior year.
Robust financial results
Net income available to RGA shareholders for the full year was $902 million, or $13.44 per diluted share, a significant increase from $517 million, or $7.64 per diluted share in 2022. Full-year adjusted operating income was $1.33 million, or $19.88 per diluted share, compared to $927 million, or $13.69 per diluted share, in 2022 year before. Specifically, net currency fluctuations adversely impacted net income available to RGA stockholders of $0.18 per diluted share and adjusted operating income of $0.21 per diluted share compared to 2022.
In the fourth quarter, consolidated net premiums increased to $4.1 billion, an increase of 19.2% compared to the fourth quarter of 2022. For the full year, net premiums reached $15.1 billion, an increase of 15.3% compared to 2022. Excluding the net foreign currency effect, consolidated net premiums increased by 16.3% for the full year. There were also positive trends in investments, with investment income increasing by 14.8% in the fourth quarter compared to the same period last year, reflecting higher returns.
The effective tax rate for the quarter was 2.2% of pre-tax profit and 21.5% for the full year. Both values were below the expected range due to various factors, including losses in certain jurisdictions with higher taxes and tax credits.
Tony Cheng, president and CEO, expressed optimism about the company’s future, citing positive trends and record results.
“Our financial solutions business continued to deliver very strong results across all regions and product lines. We continued to see good organic activity momentum in the traditional business, and our inventory transactions were particularly strong, with capital deployed of $346 million in the quarter. This increased our annual capital deployment for ongoing transactions to $933 million, a record for RGA,” said Cheng.
“In addition, we repurchased $50 million of common stock, bringing the full year total to $200 million. Our balance sheet remains strong and we ended the quarter with excess capital of approximately $1.0 billion. Given RGA’s favorable business conditions and global leadership position, we are optimistic about the future and expect to continue to deliver attractive financial results over time.”
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2024-02-02 14:10:24
www.insurancebusinessmag.com
