Jun 30, 2021

RGA Q2 2021 Earnings Report

Reinsurance Group of America reported strong second-quarter performance with broad-based earnings contribution and reduced COVID-19 impacts.

Key Takeaways

Reinsurance Group of America reported a strong second quarter with net income of $344 million, or $5.02 per diluted share, and adjusted operating income of $274 million, or $4.00 per diluted share. The company saw growth in net premiums and investment income, with a favorable impact from foreign currency fluctuations. The board increased the quarterly dividend by 4% to $0.73.

Net income of $5.02 per diluted share.

Adjusted operating income of $4.00 per diluted share.

Quarterly shareholder dividend raised 4% to $0.73.

Global estimated COVID-19 impacts of approximately $130 million for the second quarter.

Total Revenue
$4.14B
Previous year: $3.61B
+14.7%
EPS
$4
Previous year: $1.36
+194.1%
Effective Tax Rate
28.5%
Previous year: 18.9%
+50.8%
Gross Profit
$3.9B
Previous year: $3.42B
+14.0%
Cash and Equivalents
$1.2B
Previous year: $4.31B
-72.2%
Free Cash Flow
-$42M
Previous year: $367M
-111.4%
Total Assets
$88.9B
Previous year: $80.7B
+10.2%

RGA

RGA

RGA Revenue by Segment

Forward Guidance

RGA expects results to continue to reflect some additional COVID-19 claims, but at manageable and decreasing levels. The company expects its underlying earnings power to be sustained and to continue to deliver attractive financial results over time.

Positive Outlook

  • Strong performance in the second quarter.
  • Earnings contribution was broad-based by geography and lines of business.
  • Impact of COVID-19 was significantly reduced.
  • Investment results were very favorable.
  • Balance sheet remains strong.

Challenges Ahead

  • Expects results to continue to reflect some additional COVID-19 claims.
  • Lower investment income affected pretax adjusted operating loss.
  • COVID-19 claim costs affected U.S. and Latin America results.
  • COVID-19 claim costs affected Canada results.
  • COVID-19 claims affected Asia Pacific results.