ST. LOUIS, May 2, 2024 – Reinsurance Group of America, Inc. (NYSE: RGA), a leading global provider of life and health reinsurance, has kicked off 2024 with robust financial results. Here’s a snapshot of their standout performance.
Impressive Financial Highlights
Net Income & Earnings:
- Net Income: 210 million, or 3.16 per diluted share, down from 252 million (3.72 per share) in the same period last year.
- Adjusted Operating Income: 401 million, or 6.02 per diluted share, up from 349 million (5.16 per share) last year.
Premium Growth:
- Net Premiums: 5.376 billion—a stunning 58.8% increase from Q1 2023.
- This surge includes a 1.9 billion contribution from a single premium pension risk transfer transaction in the U.S. Financial Solutions business.
Strategic Moves
RGA strategically deployed 737 million into in-force transactions, marking a strong start for the year. CEO Tony Cheng praised the performance, noting robust traditional and financial solutions businesses and seeing strong momentum in new business activities.
Regional Performance
U.S. and Latin America:
- Net Premiums: 1.715 billion.
- Pre-tax Operating Income: 128 million.
Canada:
- Net Premiums: 318 million.
- Pre-tax Operating Income: 46 million.
EMEA (Europe, Middle East, Africa):
- Net Premiums: 496 million.
- Pre-tax Operating Income: 38 million.
Asia Pacific:
- Net Premiums: 716 million.
- Pre-tax Operating Income: 109 million.
Tax Benefits and Return on Equity
RGA benefited from an effective tax rate of 22% on pre-tax income, which was below the expected range of 23% to 24%, primarily due to tax benefits in foreign jurisdictions. The company also reported a return on equity (ROE) of 10.2%, with an adjusted operating ROE of 14.8%.
Positive Future Outlook
With excess capital of approximately 0.6 billion, RGA is well-positioned for continued success. Cheng remains optimistic about delivering attractive financial results moving forward.
Dividend Announcement
RGA’s board declared a quarterly dividend of 0.85 per share, payable on May 28, 2024, to shareholders of record as of May 14, 2024.
Conclusion
RGA’s strong first-quarter results highlight its financial health and strategic direction. Investors should keep an eye on RGA’s performance as the company continues to leverage its global capabilities and innovate.
For more details, RGA has posted an earnings presentation on its Investor Relations website.
While Hudson Atlas strives for accurate, quality reporting we do not guarantee that this article is error free.
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