Reinsurance Group of America releases monetary outcomes report

Reinsurance Group of America, Inc. (RGA), has revealed its financials for the fourth quarter and all through 2023.

The corporate reported fourth-quarter web revenue accessible to RGA shareholders at $158 million, or $2.37 per diluted share, marking a lower from the prior-year quarter which stood at $291 million, or $4.30 per diluted share.

Adjusted working revenue for the fourth quarter stood at $316 million, or $4.73 per diluted share, barely surpassing the $312 million, or $4.60 per diluted share, reported the yr earlier than. Notably, web overseas foreign money fluctuations had an adversarial impact of $0.01 per diluted share on web revenue accessible to RGA shareholders. Consequently, there’s a favorable impact of $0.04 per diluted share on adjusted working revenue in comparison with the earlier yr.

Sturdy monetary outcomes

Full yr web revenue accessible to RGA shareholders amounted to $902 million, or $13.44 per diluted share, a major enhance from $517 million, or $7.64 per diluted share, in 2022. Adjusted working revenue for the complete yr totaled $1.33 million, or $19.88 per diluted share, in contrast with $927 million, or $13.69 per diluted share the yr earlier than. Notably, web overseas foreign money fluctuations had an adversarial impact of $0.18 per diluted share on web revenue accessible to RGA shareholders and $0.21 per diluted share on adjusted working revenue in contrast with 2022.

Within the fourth quarter, consolidated web premiums surged to $4.1 billion, a 19.2% enhance over the 2022 fourth quarter. For the complete yr, web premiums reached $15.1 billion, marking a 15.3% enhance from 2022. Excluding the web overseas foreign money impact, consolidated web premiums elevated 16.3% for the complete yr. Investments additionally noticed optimistic traits with a 14.8% enhance in fourth-quarter funding revenue in comparison with the prior-year interval, reflecting increased yields.

The efficient tax fee for the quarter was 2.2% on pre-tax revenue and 21.5% for the complete yr, each under the anticipated vary because of varied elements together with losses in sure increased tax jurisdictions and tax credit.

Tony Cheng, president and CEO, expressed optimism relating to the corporate’s future, citing optimistic traits and file outcomes.

“Our monetary options enterprise continued to ship very robust outcomes throughout areas and product strains. We continued to see good momentum in natural enterprise exercise within the conventional enterprise, and our in-force transactions have been particularly robust, with $346 million of capital deployed within the quarter. This introduced our annual capital deployment into in-force transactions to $933 million, a file for RGA,” mentioned Cheng.

“Moreover, we repurchased $50 million of widespread shares, bringing the complete yr complete to $200 million. Our stability sheet stays robust, and we ended the quarter with extra capital of roughly $1.0 billion. Based mostly on favorable enterprise situations and RGA’s world management place, we’re optimistic concerning the future and count on to proceed to ship engaging monetary outcomes over time.”

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