Mar 31, 2023

RGA Q1 2023 Earnings Report

RGA reported a strong first quarter with significant premium growth and solid profitability.

Key Takeaways

Reinsurance Group of America reported a strong first quarter with net income available to RGA shareholders of $252 million, or $3.72 per diluted share, and adjusted operating income of $349 million, or $5.16 per diluted share. Premium growth was 7.3% over the prior-year quarter, and 10.8% on a constant currency basis.

Net income available to RGA shareholders was $3.72 per diluted share, including adverse foreign currency effects of $0.14 per diluted share.

Adjusted operating income was $5.16 per diluted share, including adverse foreign currency effects of $0.18 per diluted share.

Premium growth was 7.3% over the prior-year quarter, 10.8% on a constant currency basis.

ROE of 7.8%, adjusted operating ROE of 11.2%, and adjusted operating ROE excluding notable items of 13.1% for the trailing twelve months.

Total Revenue
$4.25B
Previous year: $3.93B
+8.2%
EPS
$5.16
Previous year: $0.47
+997.9%
Effective Tax Rate
28%
Previous year: 46.1%
-39.3%
Book Value Per Share
$115
Book Value Per Share excl AOCI
$137
Gross Profit
$4B
Previous year: $3.7B
+8.0%
Cash and Equivalents
$3.29B
Previous year: $2.71B
+21.6%
Free Cash Flow
-$1.58B
Previous year: -$169M
+834.3%
Total Assets
$89.1B
Previous year: $89.8B
-0.7%

RGA

RGA

Forward Guidance

RGA is delivering on its strategy, its balance sheet remains strong, and the company is well-positioned to add to this positive momentum going forward.

Positive Outlook

  • Many regions and product lines performed very well.
  • RGA had another active quarter for in-force and other transactions, including their first U.S. PRT transaction.
  • The company is delivering on its strategy.
  • The balance sheet remains strong.
  • RGA is well-positioned to add to this positive momentum going forward.