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Dec 31, 2020
RGA Q4 2020 Earnings Report
Reported fourth quarter results with net income of $1.94 per diluted share and adjusted operating income of $1.19 per diluted share. Full-year net income was $6.31 per diluted share and adjusted operating income was $7.54 per diluted share.
Key Takeaways
Reinsurance Group of America reported a decrease in net income for the fourth quarter, with $132 million compared to $235 million in the prior year. Adjusted operating income also decreased to $81 million from $219 million in the same period last year. The results were negatively impacted by COVID-19 mortality claim costs.
Net income of $1.94 per diluted share.
Adjusted operating income of $1.19 per diluted share.
Consolidated net premiums totaled $3.3 billion, a 9% increase over last year’s fourth quarter.
Balance sheet remains strong, ending the quarter with excess capital of approximately $1.3 billion.
RGA
RGA
RGA Revenue by Geographic Location
Revenue by Geographic Location
Canada Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
RGA expects results to continue to be affected by COVID-19 in the short term. The company believes its strong financial condition and global business platform position it to manage through immediate challenges and create long-term value.
Positive Outlook
- Diversified global platform
- Solid premium growth of 9%
- Successful in closing a number of in-force transactions
- Strong balance sheet
- Ended the quarter with excess capital of approximately $1.3 billion
Challenges Ahead
- Significant level of COVID-19 mortality claim costs
- Earnings lower than would have been expected in a normal quarter
- Results negatively impacted by COVID-19
- Unfavorable underwriting experience
- Modestly unfavorable longevity experience
Revenue & Expenses
Visualization of income flow from segment revenue to net income