Dec 31, 2021

RGA Q4 2021 Earnings Report

Reported fourth quarter and full year results with net income of $2.30 per diluted share and adjusted operating loss of $0.56 per diluted share.

Key Takeaways

Reinsurance Group of America reported fourth quarter net income of $156 million, or $2.30 per diluted share, compared with net income of $132 million, or $1.94 per diluted share, in the prior-year quarter. Adjusted operating loss totaled $38 million, or $0.56 per diluted share, compared with adjusted operating income of $81 million, or $1.19 per diluted share, the year before.

Net income of $2.30 per diluted share

Adjusted operating loss of $0.56 per diluted share

Premium growth of 4.5% over the prior-year quarter

Deployed capital of $106 million into transactions

Total Revenue
$4.36B
Previous year: $4.14B
+5.2%
EPS
-$0.56
Previous year: $1.19
-147.1%
Gross Profit
$15.6B
Previous year: $13.8B
+13.1%
Cash and Equivalents
$92.2B
Previous year: $1.3B
+6992.3%
Free Cash Flow
$357M
Previous year: $532M
-32.9%
Total Assets
$92.2B
Previous year: $84.7B
+8.9%

RGA

RGA

Forward Guidance

Our fourth quarter was impacted by a meaningful level of COVID-19 mortality claims. Beyond the effect of COVID-19, our results were strong, as a number of our businesses performed well. We continue to see good new business activity both in our organic business and in the pipeline for in-force transactions.

Positive Outlook

  • See good new business activity both in our organic business
  • See good new business activity in the pipeline for in-force transactions
  • Deployed $106 million into in-force transactions
  • Repurchased $50 million of common shares
  • Balance sheet remains strong

Challenges Ahead

  • Fourth quarter was impacted by a meaningful level of COVID-19 mortality claims.
  • Quarterly results reflected total segment COVID-19 claim costs of approximately $276 million in US and Latin America
  • Quarterly results reflected unfavorable individual life mortality experience, including COVID-19 claim costs of $10 million in Canada
  • Quarterly results reflected approximately $61 million of COVID-19 claim costs in EMEA
  • Quarterly results reflected favorable underwriting experience, absorbing $4 million of COVID-19 claim costs in Asia Pacific