Mar 31, 2020

RGA Q1 2020 Earnings Report

RGA reported a net loss and an adjusted operating income, impacted by COVID-19 and financial market volatility.

Key Takeaways

Reinsurance Group of America reported a first quarter net loss of $88 million, or $1.41 per diluted share, compared with net income of $170 million, or $2.65 per diluted share, in the prior-year quarter. Adjusted operating income totaled $89 million, or $1.41 per diluted share, compared with $167 million, or $2.61 per diluted share, the year before.

Net loss of $1.41 per diluted share

Adjusted operating income of $1.41 per diluted share

ROE 5.8% and adjusted operating ROE 9.5% for the trailing twelve months

Deployed capital of $55 million into in-force and other transactions in the quarter

Total Revenue
$3.2B
Previous year: $3.42B
-6.3%
EPS
$1.41
Previous year: $2.61
-46.0%
Gross Profit
$3.01B
Previous year: $3.22B
-6.5%
Cash and Equivalents
$2.82B
Previous year: $2.02B
+39.6%
Free Cash Flow
$2.2B
Previous year: $329M
+569.0%
Total Assets
$75.7B
Previous year: $66.7B
+13.4%

RGA

RGA

Forward Guidance

COVID-19 and its related effects will present challenges in terms of the potential for higher claims and increased investment credit losses. While it is premature to accurately predict the ultimate impact of this virus on RGA, we believe that we can manage through the environment, given our strong balance sheet, excess capital, ample liquidity, and an investment portfolio that is defensively positioned.