RGA Q4 2019 Earnings Report
Key Takeaways
Reinsurance Group of America reported Q4 net income of $235 million, or $3.68 per diluted share, compared to $110 million, or $1.72 per diluted share, in the prior-year quarter. Adjusted operating income totaled $219 million, or $3.43 per diluted share, compared to $222 million, or $3.46 per diluted share, the year before.
Net income was $235 million, or $3.68 per diluted share.
Adjusted operating income was $219 million, or $3.43 per diluted share.
Consolidated net premiums totaled $3.0 billion, up 6% from last year’s fourth quarter.
Deployed capital of $78 million into in-force and other transactions in the quarter.
RGA
RGA
RGA Revenue by Segment
Forward Guidance
RGA expects growth in adjusted operating earnings per share in the 5% to 8% range, and adjusted operating return on equity of 10% to 12%.
Positive Outlook
- Targeting growth in adjusted operating earnings per share in the 5% to 8% range.
- Targeting adjusted operating return on equity of 10% to 12%.
- Presuming no significant changes in the investment environment from current levels.
- Planning to deploy $300 to $400 million of excess capital, on average, annually.
- Estimating effective tax rate on adjusted operating income will be approximately 23% to 24%.
Challenges Ahead
- Subject to inherent short-term volatility due to mortality and morbidity experience.
- Guidance ranges are based upon “normalized” results.
- Assumes no significant changes in the investment environment.
- Business is subject to risks and uncertainties.
- Future events and actual results could differ materially from those contemplated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income