Global life and health reinsurer Reinsurance Group of America (RGA) has reported Q1 net income available to RGA shareholders of $252 million, compared with $197 million in the prior-year quarter.
RGA’s adjusted operating income for Q1 2023 totalled $349 million, significantly higher than the $283 million disclosed in the same quarter a year before.
According to the firm, net foreign currency fluctuations had an adverse effect of $0.14 per diluted share on net income available to RGA shareholders and $0.18 per diluted share on adjusted operating income as compared with Q1 of 2022.
RGA’s consolidated net premiums in Q1 2023 totalled $3.4 billion, which marked an increase of 7.3% over Q1 of 2022, with an adverse net foreign currency effect of $112 million.
RGA explains that excluding the net foreign currency effect, consolidated net premiums increased 10.8% in the quarter.
Meanwhile, excluding spread-based businesses, Q1 2023 investment income decreased 9.2% compared with Q1 2022, which RGA states reflects lower variable investment income.
The average investment yield decreased to 4.71% in Q1 2023 from 5.29% in the prior-year period due to lower variable investment income, partially offset by higher yields.
The effective tax rate on pre-tax income was 28.0% for Q1 of 2023. The effective tax rate for the quarter was 23.6% on pre-tax adjusted operating income, within the expected range of 23% to 24%.
Anna Manning, Chief Executive Officer, commented, “This was a strong quarter and a good start to the year.
“In the quarter, many regions and product lines performed very well, and we had another active quarter for in-force and other transactions, including our first U.S. PRT transaction.
“We are delivering on our strategy, our balance sheet remains strong, and we are well-positioned to add to this positive momentum going forward.”