RGA posts strong results in Q1 2024

RGA posts strong results in Q1 2024

RGA Reports Strong First Quarter 2024 Results | Insurance business America

“Excellent results” herald a great start to the year, says the CEO


By Kenneth Araullo

Reinsurance Group of America (RGA) has announced its financial results for the first quarter of 2024, reporting net income of $210 million, or $3.16 per diluted share.

This is down from $252 million, or $3.72 per diluted share, recorded in the same period last year. However, the company’s adjusted operating income increased to $401 million, or $6.02 per diluted share, compared to $349 million, or $5.16 per diluted share, a year ago.

Net currency fluctuations positively impacted RGA stockholders’ net income by $0.07 per diluted share and adjusted operating income by $0.01 per diluted share compared to the prior year.

During the quarter, RGA’s consolidated net premiums reached $5.4 billion, up 58.8% from the first quarter of 2023, despite a negative net currency impact of $12 million.

Excluding this currency effect, consolidated net premiums increased by 59.2%. This quarter’s performance included a notable $1.9 billion from a one-time pension risk transfer transaction in the U.S. financial solutions business.

Investment income, excluding spread-based transactions, increased 7.0%, primarily due to new business. The average investment return remained constant at 4.70%, almost reaching the 4.71% in the first quarter of the previous year. This stability was due to higher new money interest rates, which offset a decline in variable capital gains.

The effective tax rate for the quarter was 22.0% of pre-tax profit, slightly below the expected range of 23% to 24%, primarily due to tax benefits in foreign jurisdictions. The tax rate on the adjusted operating profit before taxes was also 22.4%, which was also below the expected range.

Commenting on the quarter’s performance, RGA President and CEO Tony Cheng highlighted the group’s “excellent results”, signaling a great start to the year.

“Our traditional business performed very well and the financial solutions business also had a good quarter. In our ongoing transactions, we had a record quarter of revenue of $737 million and we continued to see strong momentum in organic new business activity. Our balance sheet remains strong and we ended the quarter with a capital surplus of approximately $0.6 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,” said Cheng.

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RGA posts strong results in Q1 2024

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2024-05-03 13:20:00