Dec 31, 2023

RGA Q4 2023 Earnings Report

RGA reported mixed results with strong premium growth offset by decreased net income, while adjusted operating income saw a slight increase.

Key Takeaways

Reinsurance Group of America reported a decrease in net income available to shareholders but an increase in adjusted operating income for the fourth quarter. Premium growth was strong, driven by a significant contribution from a pension risk transfer transaction. The company also deployed capital into in-force transactions and continued its share repurchase program.

Net income available to RGA shareholders decreased to $2.37 per diluted share from $4.30 in the prior-year quarter.

Adjusted operating income increased to $4.73 per diluted share from $4.60 in the prior-year quarter.

Premium growth was 19.2% year-over-year, or 18.7% on a constant currency basis, bolstered by a $500 million pension risk transfer transaction.

Capital deployment into in-force transactions reached $346 million for the quarter and $933 million for the year.

Total Revenue
$5.01B
Previous year: $4.38B
+14.4%
EPS
$4.73
Previous year: $2.99
+58.2%
Gross Profit
$4.72B
Previous year: $3.37B
+40.1%
Cash and Equivalents
$2.97B
Previous year: $84.7B
-96.5%
Total Assets
$97.6B
Previous year: $84.9B
+15.0%

RGA

RGA

Forward Guidance

RGA is optimistic about its future performance, expecting to continue delivering attractive financial results based on favorable business conditions and its global leadership position.

Positive Outlook

  • Strong results in the Financial Solutions business across regions and product lines.
  • Good momentum in organic business activity in the traditional business.
  • Strong in-force transactions with $346 million of capital deployed in the quarter.
  • Excess capital of approximately $1.0 billion.
  • Favorable business conditions and RGA's global leadership position.