RGA Q3 2022 Earnings Report
Key Takeaways
Reinsurance Group of America reported a net income available to RGA shareholders of $284 million, or $4.19 per diluted share, and adjusted operating income of $352 million, or $5.20 per diluted share. Premium growth was 4.9% over the prior-year quarter, or 10.1% on a constant currency basis. The company deployed $100 million of capital into transactions and returned $79 million to shareholders.
Net income available to RGA shareholders was $4.19 per diluted share.
Adjusted operating income was $5.20 per diluted share.
Premium growth was 4.9% over the prior-year quarter, 10.1% on a constant currency basis.
Capital of $100 million was deployed into transactions.
RGA
RGA
Forward Guidance
The underlying protection markets are active, organic new business activity is healthy, in-force transactions pipelines are very robust, and RGA is better positioned to deliver valuable solutions to its clients than ever before.
Positive Outlook
- Positive contributions from a range of segments and businesses.
- Premium growth on a constant currency basis was 10.1%.
- Another active and successful quarter for in-force transactions, deploying $100 million of capital.
- COVID-19 claim costs were comfortably absorbed.
- Underlying non-COVID-19 mortality was favorable in many markets.
Challenges Ahead
- Global estimated COVID-19 impacts of approximately $89 million on a pre-tax basis, or $1.00 per diluted share.
- Net foreign currency fluctuations had an adverse effect of $0.15 per diluted share on adjusted operating income as compared with the prior year.
- Excluding spread-based businesses, third quarter investment income decreased 7.7%, reflecting lower variable investment income in the quarter.
- Average investment yield decreased to 4.40% in the third quarter due to lower variable investment income compared with 4.95% in the prior year.
- Third quarter pre-tax adjusted operating loss was unfavorable as compared to the quarterly average run rate, primarily due to higher general expenses and interest expense.