Reinsurance Group of America (RGA) increased its net premiums to $2.7 billion in the first-quarter of 2019 when compared with the prior year quarter, as net income jumped to $169.5 million.
The global life reinsurer saw its net premiums increase 6% in the quarter, with adverse net foreign currency effects of $78.8 million.
Net income improved meaningfully from the $100.2 million recorded in the first-quarter of 2018, while adjusted operating income increased from $105.7 million, to $167.2 million in Q1 2019.
RGA President and Chief Executive Officer (CEO), Anna Manning, commented: “This was a good quarter for us as income exceeded our expectations and we experienced strong momentum in terms of organic growth and in-force transactions. We continued to benefit from earnings diversity that comes with our global operating platform, as strong results in Asia and Canada more than offset some modest weakness elsewhere.
“We executed a number of in-force and other transactions across a range of product areas and geographies, putting to work $50 million of capital. We also repurchased $50 million of shares, and we ended the quarter with an excess capital position of approximately $0.9 billion.”
The majority of segments performed well in the quarter, including U.S. and Latin America Traditional, which recorded an improved pre-tax income of $11.7 million. The Canada Traditional segment recorded pre-tax income of $50.3 million, compared with $23.7 million a year earlier.
The Asset-Intensive business saw its net income jump from $47.3 million to $65 million in Q1 2019, while the Financial Reinsurance business posted pre-tax income and pre-tax adjusted operating income of $18.3 million, which is slightly down on the $20.2 million recorded last year.
The Canada Financial Solutions business also declined year-on-year in the quarter, with pre-tax income and pre-tax adjusted operating income of $1.3 million.
Both the EMEA and Asia Pacific Traditional segments also recorded an improved net income in the first-quarter of 2019.
“We are off to a good start in 2019, and we remain optimistic about our business overall. Our organic growth opportunities remain strong, the transaction pipeline remains very active, and we expect to continue to produce attractive financial returns,” said Manning.
