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Sep 30, 2022
RGA Q3 2022 Earnings Report
RGA reported strong third quarter results with positive contributions from a range of segments and businesses.
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
RGA Revenue by Geographic Location
Revenue by Geographic Location
Canada Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income