Reinsurance Group of America Inc (RGA, Financial) released its Q3 earnings report on November 2, 2023, showcasing a strong performance with a significant increase in net income and premium growth. The company reported a net income available to RGA shareholders of $287 million, or $4.29 per diluted share, compared with a net loss available to RGA shareholders of $76 million, or $1.13 per diluted share, in the prior-year quarter.
Financial Highlights
The company's adjusted operating income for the third quarter totaled $372 million, or $5.57 per diluted share, compared with $16 million, or $0.24 per diluted share, the year before. The adjusted operating income, excluding notable items for the third quarter, totaled $372 million, or $5.57 per diluted share, compared with $263 million, or $3.92 per diluted share, the year before.
Consolidated net premiums for the third quarter totaled $4.3 billion, marking an increase of 31.0% over the 2022 third quarter. The effective tax rate on pre-tax income was 24.2% for the quarter. The effective tax rate for the quarter was 22.6% on pre-tax adjusted operating income, lower than the expected range of 23% to 24% primarily due to tax benefits received in foreign geographies.
Segment Results
In the U.S. and Latin America, net premiums for the third quarter stood at $1.746 billion, compared to $1.640 billion in the same quarter of the previous year. Pre-tax income was $105 million, compared to a loss of $69 million in the prior-year quarter.
In Canada, net premiums for the third quarter were $302 million, compared to $293 million in the same quarter of the previous year. Pre-tax income was $6 million, compared to $12 million in the prior-year quarter.
CEO Commentary
Anna Manning, Chief Executive Officer, commented, “This was another strong quarter, with most regions and business lines performing very well. We continue to see very strong momentum in our new business activities and pipelines. Industry dynamics are favorable and we are well-positioned, with the capabilities and proven track record to benefit from all those dynamics. We are optimistic about our future and our ability to deliver attractive returns for our shareholders.”
Reinsurance Group of America Inc (RGA, Financial) is a leading global provider of life and health reinsurance, with approximately $3.5 trillion of life reinsurance in force and assets of $87.4 billion as of September 30, 2023.
Explore the complete 8-K earnings release (here) from Reinsurance Group of America Inc for further details.
