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Dec 31, 2024
RGA Q4 2024 Earnings Report
RGA reported a decrease in net income available to shareholders but an increase in adjusted operating income for the fourth quarter of 2024.
Key Takeaways
Reinsurance Group of America reported fourth quarter net income available to RGA shareholders of $148 million, or $2.22 per diluted share, a decrease from the prior year. However, adjusted operating income increased to $334 million, or $4.99 per diluted share. The company also deployed a record $250 million into in-force block transactions for the quarter, contributing to a full-year record of $1,676 million.
Net income available to RGA shareholders for Q4 2024 was $148 million, or $2.22 per diluted share.
Adjusted operating income for Q4 2024 was $334 million, or $4.99 per diluted share.
The company deployed $250 million into in-force block transactions in Q4 2024, contributing to a record full-year deployment of $1,676 million.
The effective tax rate for the quarter was 33.6% on pre-tax income, above the expected range of 24% to 25%.
Revenue by Geographic Location
Forward Guidance
RGA has updated its intermediate term financial targets, raising its adjusted operating ROE target to 13% to 15%, reflecting expectations of continued strong fundamentals and business growth.
Positive Outlook
- Increased adjusted operating ROE target to 13% to 15%.
- Continued strong momentum in organic business activity in the traditional business.
- Solid in-force transactions with significant capital deployed.
- Record expected future value from new business written.
- Strong balance sheet with $1.7 billion of deployable capital.
Challenges Ahead
- Results in Financial Solutions were below the expected range due to the continued runoff of existing annuity business.
- Unfavorable Individual Life claims experience in Canada.
- Unfavorable claims experience in EMEA, partially offset by higher fee income.
- Unfavorable claims and other experience in Asia Pacific, though economic claims experience was favorable.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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