Sep 30, 2023

RGA Q3 2023 Earnings Report

Reported strong third quarter results with significant premium growth and profitability.

Key Takeaways

Reinsurance Group of America reported a strong third quarter with net income available to RGA shareholders of $287 million, or $4.29 per diluted share, and adjusted operating income of $372 million, or $5.57 per diluted share. The company experienced significant premium growth of 31.0% over the prior-year quarter and deployed capital of $203 million into in-force and other transactions.

Net income available to RGA shareholders was $4.29 per diluted share.

Adjusted operating income was $5.57 per diluted share.

Premium growth was 31.0% over the prior-year quarter, or 30.6% on a constant currency basis.

Capital deployment totaled $203 million into in-force and other transactions.

Total Revenue
$5.15B
Previous year: $4.07B
+26.7%
EPS
$5.57
Previous year: $5.2
+7.1%
Effective Tax Rate
24.2%
Book Value Per Share
$122
Book Value Per Share excl AOCI
$143
Gross Profit
$4.88B
Previous year: $3.82B
+27.9%
Cash and Equivalents
$2.82B
Previous year: $3.51B
-19.7%
Free Cash Flow
-$1.01B
Previous year: $828M
-221.7%
Total Assets
$87.4B
Previous year: $82.7B
+5.7%

RGA

RGA

Forward Guidance

RGA is optimistic about its future and its ability to deliver attractive returns for its shareholders, citing strong momentum in new business activities and pipelines, and favorable industry dynamics.

Positive Outlook

  • Strong momentum in new business activities
  • Healthy new business pipelines
  • Favorable industry dynamics
  • Well-positioned to benefit from industry dynamics
  • Ability to deliver attractive returns for shareholders

Challenges Ahead

  • Adverse changes in mortality, morbidity, lapsation or claims experience
  • Inadequate risk analysis and underwriting
  • Adverse capital and credit market conditions
  • Changes in the company's financial strength and credit ratings
  • General economic conditions or a prolonged economic downturn